Crucial 2015 Annual Report Download - page 64

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62
Repurchases: During 2015, we repurchased portions of our convertible 2032C Notes, 2032D Notes, 2033E Notes, and
2033F Notes. The liability and equity components of the repurchased notes had previously been stated separately within debt
and additional capital in our consolidated balance sheet. As a result, our accounting for the repurchased notes affected debt and
equity.
Issuances: On April 30, 2015, we issued $550 million in principal amount of 2024 Notes due January 2024 and $450
million in principal amount of 2026 Notes due January 2026. On February 3, 2015, we issued $1.00 billion in principal amount
of 2023 Notes due August 2023. Issuance costs for these notes totaled $21 million. (See further discussion in "Senior Notes"
below.)
Early Repayment: On October 17, 2014, we repaid a note prior to its scheduled maturity.
2014 Debt Restructure
In 2014, we consummated a number of transactions to restructure our debt, including exchanges, conversions and
settlements, repurchases of convertible notes, issuances of non-convertible notes, and early repayments of notes. The following
table presents the net effect of each of the actions:
Increase
(Decrease) in
Principal
Increase
(Decrease) in
Carrying
Value
Increase
(Decrease) in
Cash (Decrease) in
Equity Loss(1)
Exchanges $ 585 $ 282 $ — $ (238) $ 49
Conversions and settlements (770) (434)(1,446)(886) 130
Repurchases (320) (264)(857)(567) 23
Issuances 2,212 2,157 2,157 — —
Early repayments (336) (332)(339) — 3
$ 1,371 $ 1,409 $ (485) $ (1,691) $ 205
(1) $184 million included in other non-operating expense and $21 million included in interest expense
• Exchanges: Exchanged $440 million in aggregate principal amount of our 2027 Notes, 2031A Notes, and 2031B
Notes into $1.03 billion principal amount at maturity of 2043G Notes.
• Conversions and Settlements: Holders of substantially all of our remaining 2014 Notes, 2027 Notes, and 2031A
Notes (with an aggregate principal amount of $770 million) converted their notes and we settled the conversions
in cash for $1.45 billion. Holders of substantially all of our remaining 2031B Notes converted their notes in
August 2014. As a result of our election to settle the conversion amounts entirely in cash, the settlement
obligations became derivative debt liabilities, increasing the carrying value of the 2031B Notes by $275 million in
2014 before being cash settled in 2015.
• Repurchases: Repurchased $320 million in aggregate principal amount of our convertible 2031B Notes, 2032C
Notes, and 2032D Notes for an aggregate of $857 million in cash.
• Issuances: Issued $600 million in principal amount of the 2022 Notes and $1.15 billion in principal amount of
the 2025 Notes, and issued $462 million in principal amount of the 1.258% senior notes due 2019.
• Early Repayments: Repaid $332 million of notes and capital leases prior to their scheduled maturities.
2013 Debt Restructure
During 2013, we repurchased $464 million in aggregate principal amount of our 2014 Notes for $477 million in cash. The
liability and equity components of the 2014 Notes had previously been stated separately within debt and additional capital in
our consolidated balance sheet. As a result, the repurchase resulted in the derecognition of $430 million in debt for the
principal amount (net of $34 million of debt discount) and $15 million in additional capital for the equity component. We
recognized a loss of $31 million in 2013, which was included in other non-operating expense.