v3.3.1.900

Debt | 3 Months Ended
--- | ---
Dec. 03, 2015
Debt Disclosure [Abstract] |
Debt | Debt
|  |  |  |  |  | December 3, 2015 |  | September 3, 2015
Instrument(1) |  | Stated Rate |  | Effective Rate |  | Current |  | Long-Term |  | Total |  | Current |  | Long-Term |  | Total
MMJ creditor installment payments |  | N/A |  |  | 6.25 | % |  | $ | 160 |  |  | $ | 695 |  |  | $ | 855 |  |  | $ | 161 |  |  | $ | 701 |  |  | $ | 862 |
Capital lease obligations(2) |  | N/A |  |  | N/A |  |  | 273 |  |  | 436 |  |  | 709 |  |  | 326 |  |  | 466 |  |  | 792 |
1.258% notes |  | 1.258 | % |  | 1.97 | % |  | 87 |  |  | 219 |  |  | 306 |  |  | 87 |  |  | 217 |  |  | 304 |
2022 senior notes |  | 5.875 | % |  | 6.14 | % |  | — |  |  | 589 |  |  | 589 |  |  | — |  |  | 589 |  |  | 589 |
2023 senior notes |  | 5.250 | % |  | 5.43 | % |  | — |  |  | 989 |  |  | 989 |  |  | — |  |  | 988 |  |  | 988 |
2024 senior notes |  | 5.250 | % |  | 5.38 | % |  | — |  |  | 545 |  |  | 545 |  |  | — |  |  | 545 |  |  | 545 |
2025 senior notes |  | 5.500 | % |  | 5.56 | % |  | — |  |  | 1,138 |  |  | 1,138 |  |  | — |  |  | 1,138 |  |  | 1,138 |
2026 senior notes |  | 5.625 | % |  | 5.73 | % |  | — |  |  | 446 |  |  | 446 |  |  | — |  |  | 446 |  |  | 446 |
2032C convertible senior notes(3) |  | 2.375 | % |  | 5.95 | % |  | — |  |  | 199 |  |  | 199 |  |  | — |  |  | 197 |  |  | 197 |
2032D convertible senior notes(3) |  | 3.125 | % |  | 6.33 | % |  | — |  |  | 151 |  |  | 151 |  |  | — |  |  | 150 |  |  | 150 |
2033E convertible senior notes(3) |  | 1.625 | % |  | 4.50 | % |  | 165 |  |  | — |  |  | 165 |  |  | 217 |  |  | — |  |  | 217 |
2033F convertible senior notes(3) |  | 2.125 | % |  | 4.93 | % |  | 266 |  |  | — |  |  | 266 |  |  | 264 |  |  | — |  |  | 264 |
2043G convertible senior notes |  | 3.000 | % |  | 6.76 | % |  | — |  |  | 647 |  |  | 647 |  |  | — |  |  | 644 |  |  | 644 |
Other notes payable |  | 2.462 | % |  | 2.65 | % |  | 100 |  |  | 272 |  |  | 372 |  |  | 34 |  |  | 171 |  |  | 205 |
|  |  |  |  |  | $ | 1,051 |  |  | $ | 6,326 |  |  | $ | 7,377 |  |  | $ | 1,089 |  |  | $ | 6,252 |  |  | $ | 7,341 |
(1) | We have either the obligation or the option to pay cash for the principal amount due upon conversion for all of our convertible notes. Since it is our current intent to settle in cash the principal amount of all of our convertible notes upon conversion, the dilutive effect of such notes on earnings per share is computed under the treasury stock method.
(2) | Weighted-average imputed rate of 3.8% and 3.7% as of December 3, 2015 and September 3, 2015, respectively.
(3) | Since the closing price of our common stock for at least 20 trading days in the 30 trading day period ending on September 30, 2015 exceeded 130% of the conversion price per share, holders had the right to convert their notes at any time during the calendar quarter ended December 31, 2015. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended December 31, 2015; therefore, these notes are convertible by the holders through March 31, 2016. The 2033 Notes are classified as current because the terms of these notes also require us to pay cash for the principal amount of any converted notes.
2016 Debt Restructure During the first quarter of 2016, we repurchased portions of our 2033E Notes. The liability and equity components of the repurchased notes had previously been stated separately within debt and equity in our consolidated balance sheet. As a result, our accounting for the repurchased notes affected debt and equity. The following table presents the effect of the repurchases:
|  | Decrease in Principal |  | Decrease in Carrying Value |  | Decrease in Cash |  | Decrease in Equity |  | Loss(1)
Repurchases of 2033E Notes |  | $ | (57 | ) |  | $ | (54 | ) |  | $ | (94 | ) |  | $ | (38 | ) |  | $ | (1 | )
(1) | Included in other non-operating expense.
2015 Debt Restructure Throughout 2015, we consummated a number of transactions to restructure our debt, including conversions and settlements, repurchases of convertible notes, and the early repayment of a note. The following table presents the effect of each of the actions in the first quarter of 2015:
|  | Decrease in Principal |  | Decrease in Carrying Value |  | Decrease in Cash |  | Decrease in Equity |  | Loss(1)
Conversions and settlements |  | $ | (120 | ) |  | $ | (367 | ) |  | $ | (407 | ) |  | $ | (14 | ) |  | $ | (22 | )
Repurchases |  | (36 | ) |  | (30 | ) |  | (125 | ) |  | (92 | ) |  | (3 | )
Early repayment |  | (121 | ) |  | (115 | ) |  | (122 | ) |  | — |  |  | (5 | )
|  | $ | (277 | ) |  | $ | (512 | ) |  | $ | (654 | ) |  | $ | (106 | ) |  | $ | (30 | )
(1) | Included in other non-operating expense.
• | Conversions and Settlements: Holders of substantially all of our remaining 2031B Notes with an aggregate principal amount of $114 million 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 settled in 2015 for an aggregate of $389 million in cash. Additionally, a holder converted $6 million principal amount of our 2033E Notes and we settled the conversion in cash for $18 million.
• | Repurchases: Repurchased $36 million in aggregate principal amount of our 2032C and 2032D Notes for an aggregate of $125 million.
• | Early Repayment: Repaid a note with a principal amount of $121 million prior to its scheduled maturity.
Capital Lease Obligations In the first quarter of 2016, we recorded capital lease obligations aggregating $20 million at a weighted-average effective interest rate of 5.0%, payable in periodic installments through August 2031. In December 2015, subsequent to our first quarter of 2016, we recorded capital lease obligations aggregating $424 million related to equipment sale-leaseback transactions at a weighted-average effective interest rate of 2.7%, payable in periodic installments through December 2020. Convertible Senior Notes As of December 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 December 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 |  |  | $ | 138 |
2032D Notes |  | May 2021 |  | 177 |  |  | 18 |  |  | 9.98 |  |  | 12.97 |  |  | 100 |
2033E Notes |  | February 2018 |  | 176 |  |  | 16 |  |  | 10.93 |  |  | 14.21 |  |  | 75 |
2033F Notes |  | February 2020 |  | 297 |  |  | 27 |  |  | 10.93 |  |  | 14.21 |  |  | 127 |
2043G Notes(4) |  | November 2028 |  | 1,025 |  |  | 35 |  |  | 29.16 |  |  | 37.91 |  |  | — |
|  |  |  | $ | 1,899 |  |  | 119 |  |  |  |  |  |  | $ | 440 |
(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 maturity 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 were convertible by the holders through December 31, 2015. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended December 31, 2015; therefore, these notes are convertible by the holders through March 31, 2016.
(3) | Based on our closing share price of $15.61 as of December 3, 2015.
(4) | The original principal amount of $820 million accretes up to $917 million in November 2028 and $1.03 billion at maturity in 2043.
Other Facilities On December 1, 2015, we drew the remaining $174 million under our term loan agreement entered into on May 28, 2015. Amounts drawn are collateralized by certain property, plant, and equipment and are subject to a three-year loan with equal quarterly principal payments beginning December 2015 and accrue interest at a variable rate equal to the three-month LIBOR plus a margin not to exceed 2.2%. As of December 3, 2015, the outstanding balance was $213 million. Maturities of Notes Payable and Future Minimum Lease Payments The following presents, as of December 3, 2015, maturities of notes payable (including the MMJ Creditor Installment Payments) and future minimum lease payments under capital lease obligations. Maturities for the 2033 Notes are presented in 2018 and 2020 based on the earliest date that the holders can put them to us even though they were classified in our accompanying balance sheets as current, which was based on their convertibility.
|  | Notes Payable |  | Capital Lease Obligations
Remainder of 2016 |  | $ | 329 |  |  | $ | 241 |
2017 |  | 348 |  |  | 176 |
2018 |  | 507 |  |  | 129 |
2019 |  | 502 |  |  | 91 |
2020 |  | 695 |  |  | 32 |
2021 and thereafter |  | 4,844 |  |  | 110 |
Unamortized amounts and interest, respectively |  | (557 | ) |  | (70 | )
|  | $ | 6,668 |  |  | $ | 709 |

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