SEC Filings

20-F
TOWER SEMICONDUCTOR LTD filed this Form 20-F on 04/10/2017
Entire Document
 

F.      TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
 
The following table summarizes our contractual obligations and commercial commitments as of December 31, 2016:
 
   
Payment Due
 
   
Total
   
Less than
1 year
   
2 Years
   
3 Years
   
4 Years
   
5 Years
   
After 5
years
 
   
(in thousands of dollars)
 
Contractual Obligations
                                         
Short term liabilities (mainly trade accounts payable) (1)
   
163,423
     
163,423
     
--
     
--
     
--
     
--
     
--
 
Loans (2)          
   
187,105
     
45,948
     
51,225
     
44,984
     
33,230
     
11,718
     
--
 
Debentures (3)          
   
214,212
     
16,790
     
66,367
     
3,396
     
37,687
     
36,716
     
53,256
 
Operating leases          
   
45,353
     
17,106
     
16,654
     
6,256
     
2,430
     
2,430
     
477
 
Equipment purchase agreements (4)
   
19,424
     
19,424
     
--
     
--
     
--
     
--
     
--
 
Other long-term liabilities
   
13,406
     
743
     
845
     
925
     
1,009
     
1,066
     
8,818
 
Other Purchase obligations          
   
16,931
     
11,544
     
3,074
     
2,313
     
--
     
--
     
--
 
Total contractual obligations
   
659,854
     
274,978
     
138,165
     
57,874
     
74,356
     
51,930
     
62,551
 
 
(1)
Short-term liabilities include primarily our trade accounts payable for equipment, goods and services as well as payroll related commitments.
(2)
Loans include principal and interest payments in accordance with the terms of the loans agreements.
(3)
Debentures include total amount of principal and interest payments.
(4)
Equipment purchase agreements include amounts related to ordered equipment that has not yet been received.

In addition to these contractual obligations, we have committed approximately $1 million in standby letters of credit and guarantees.
 
The above table does not include other contractual obligations or commitments we have, such as undertakings pursuant to royalty agreements, commissions and service agreements.  We are unable to reasonably estimate the total amounts or the time table for such payments to be paid under the terms of these agreements, as the royalties, commissions and required services are a function of future revenues, the volume of business and hourly-based fees.  In addition, the above table does not include our liability with respect to our customers, which as of December 31, 2016, amounted to approximately $68.0 million that may be utilized by them against future purchases of products.  We are unable to reasonably estimate the total amounts that may be utilized by our customers since we cannot reasonably estimate their future orders in the periods set forth in the above chart. The table above reflects our commitments and contingencies which are known to us as of December 31, 2016. Any new developments in our business plans, our modification of engagements with supply and service providers as well as changes in our commitments and contingencies following the date hereof and actual payments may vary significantly from those presented above.
 
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