Crucial 2015 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2015 Crucial annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

65
As of September 3, 2015, the trading price of our common stock was higher than the initial conversion prices of our 2032
Notes and our 2033 Notes. As a result, the conversion values were in excess of principal amounts for such notes. The
following table summarizes our convertible notes outstanding as of September 3, 2015:
Holder Put
Date(1) Outstanding
Principal Underlying
Shares
Conversion
Price Per
Share
Conversion
Price Per
Share
Threshold(2)
Conversion
Value in
Excess of
Principal(3)
2032C Notes May 2019 $ 224 23 $ 9.63 $ 12.52 $ 161
2032D Notes May 2021 177 18 9.98 12.97 117
2033E Notes February 2018 233 21 10.93 14.21 121
2033F Notes February 2020 297 27 10.93 14.21 154
2043G Notes(4) November 2028 1,025 35 29.16 37.91 —
$ 1,956 124 $ 553
(1) The terms of our convertible notes give holders the right to require us to repurchase all or a portion of their notes at a
date prior to the contractual maturities of the notes at a price equal to the principal amount thereof plus accrued
interest.
(2) Holders have the right to convert all or a portion of their notes at a date prior to the contractual maturity if, during any
calendar quarter, the closing price of our common stock for at least 20 trading days in the 30 consecutive trading days
ending on the last trading day of the preceding calendar quarter is more than 130% of the conversion price. The
closing price of our common stock exceeded the thresholds for the calendar quarter ended September 30, 2015 for our
2032 Notes and 2033 Notes; therefore, those notes are convertible by the holders through December 31, 2015.
(3) Based on our closing share price of $16.59 as of September 3, 2015.
(4) See "2043G Notes."
Carrying amounts of the equity components of our convertible notes, which are included in additional capital in the
accompanying consolidated balance sheets were as follows:
As of 2015 2014
2032C Notes $ 41 $ 67
2032D Notes 35 69
2033E Notes (excludes $16 and $27 million in mezzanine equity, respectively) 8 3
2033F Notes (excludes $33 and $41 million in mezzanine equity, respectively) 8 1
2043G Notes 173 173
$ 265 $ 313
Interest expense for our convertible notes, consisting of contractual interest and amortization of discount and issuance
costs, aggregated $101 million, $132 million, and $156 million for 2015, 2014, and 2013, respectively. Interest expense by
note was as follows:
Contractual Interest Amortization of Discount and Issuance Costs
For the year ended 2015 2014 2013 2015 2014 2013
2032C Notes $ 8 $ 11 $ 13 $ 9 $ 12 $ 14
2032D Notes 9 13 14 6 8 9
2033E Notes 5 5 3 7 7 4
2033F Notes 6 6 3 7 6 3
2043G Notes 31 24 — 13 9 —
Other notes(1) — 7 27 — 24 66
$ 59 $ 66 $ 60 $ 42 $ 66 $ 96
(1) Other notes include the 2014 Notes, 2027 Notes, 2031A Notes, and 2031B Notes.