XML 41 R13.htm IDEA: XBRL DOCUMENT v2.3.0.15
Debt
9 Months Ended
Oct. 01, 2011
Debt [Abstract] 
Debt

NOTE 8. Debt

During the third quarter of 2011, the Company repurchased $150 million in aggregate principal amount of its 6.00% Convertible Senior Notes due 2015 (the 6.00% Notes) in open market transactions for approximately $153 million, net of accrued interest of $2 million.

The Company's accounting for its 6.00% Notes reflects the guidance on accounting for convertible debt that may be fully or partially settled in cash upon conversion. The proceeds used for the repurchase of the 6.00% Notes were allocated between the liability and equity components in a manner that reflects interest expense at the market interest rate for similar nonconvertible debt as of the repurchase dates of the 6.00% Notes. The equity component is included in the paid-in-capital portion of stockholders' equity on the Company's condensed consolidated balance sheet.

For the repurchase of its 6.00% Notes in the third quarter of 2011, the Company allocated $8 million of the $153 million cash payment to the equity component and reduced the carrying amount of the debt by $141 million. The Company recognized a $5 million net loss on its repurchases. As of October 1, 2011, the remaining carrying amount of the 6.00% Notes was approximately $591 million, net of debt discount of $39 million.

As of October 1, 2011, the Company reclassified the 5.75% Notes with a carrying amount of $485 million to current liabilities because the 5.75% Notes mature in the next 12 months.