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Sale and Leaseback Transactions (Notes)
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9 Months Ended |
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Sep. 28, 2013
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| Leases [Abstract] | |
| Sale and Leaseback Transactions |
Sale and Leaseback Transactions
In September 2013, the Company sold a light industrial building in Singapore and leased back a portion of the original space. The Company received net proceeds of $46 million in connection with the sale. The difference between the net proceeds and the $15 million carrying value of property sold resulted in a $17 million gain recorded by the Company in the third quarter of 2013 and a $14 million gain deferred as of September 28, 2013 that will be amortized over the initial lease term. The initial lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial lease term, and for an additional 3.5 years thereafter. The Company accounted for the lease as an operating lease.
In September 2013, the Company also sold an office building in Austin, Texas. The Company received net proceeds of $10 million in connection with the sale and recorded a $5 million gain in the third quarter of 2013, primarily related to the difference between the sale proceeds and the $5 million carrying value of the property sold.
In March 2013, the Company sold and leased back land and office buildings in Austin. The Company received net proceeds of $164 million in connection with the sale and recorded a $52 million charge in the first quarter of 2013, primarily related to the difference between the sale proceeds and the $216 million carrying value of the property sold. The lease expires in March 2025 and provides for one 10-year optional renewal. The Company accounted for the lease as an operating lease.
In March 2013, the Company also sold an office building in Markham, Ontario, Canada and leased back a portion of the original space. The Company received net proceeds of $13 million in connection with the sale and recorded a $6 million gain in the first quarter of 2013, primarily related to the difference between the sale proceeds and the $7 million carrying value of the property sold. The lease was to expire in March 2014 but contained an early termination provision, which the Company exercised effective June 30, 2013. While occupied, the Company accounted for the lease as an operating lease.
The $22 million gain recognized in the third quarter of 2013 and the net charge of $24 million related to the real estate transactions described above for the first nine months of 2013 are recorded as "Restructuring and other special charges (gains), net" on the condensed consolidated statements of operations.
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