Intel 1995 Annual Report Download - page 22

At December 30, 1995, the Company had established foreign and domestic lines of credit of approximately $1.16 billion. The Company
generally renegotiates these lines annually. Compensating balance requirements are not material. The Company also borrows under commercial
paper programs. Maximum borrowings reached $700 million during both 1995 and 1994. This debt is rated A1+ by Standard and Poor's and P1
by Moody's. Proceeds are used to fund short-term working capital needs.
Long-term debt. Long-term debt at fiscal year-ends was as follows:
The Company has guaranteed repayment of principal and interest on the AFICA Bonds issued by the Puerto Rico Industrial, Medical and
Environmental Pollution Control Facilities Financing Authority (AFICA). The bonds are adjustable and redeemable at the option of either the
Company or the bondholder every five years through 2013 and are next adjustable and redeemable in 1998. The Zero Coupon Notes matured
during 1995. The Irish punt borrowings were made in connection with the financing of a factory in Ireland, and Intel has invested the proceeds
in Irish punt denominated instruments of similar maturity to hedge foreign currency and interest rate exposures. The Greek drachma
borrowings were made under a tax incentive program in Ireland, and the proceeds and cash flows have been swapped to U.S. dollars.
In 1994, the Company filed a shelf registration statement with the Securities and Exchange Commission (SEC) that became effective in 1995.
When combined with previous shelf registration statements, this filing gave Intel the authority to issue up to $3.3 billion in the aggregate of
Common Stock, Preferred Stock, depositary shares, debt securities and warrants to purchase the Company's or other issuers' Common Stock,
Preferred Stock and debt securities, and, subject to certain limits, stock index warrants and foreign currency exchange units. In 1993, Intel
completed an offering of Step-Up Warrants (see "1998 Step-Up Warrants"). The Company may issue up to $1.4 billion in additional securities
under effective registration statements.
As of December 30, 1995, aggregate debt maturities were as follows: 1996-none; 1997-none; 1998-$110 million; 1999-none; 2000-none; and
thereafter-$290 million.
Investments
The stated return on a majority of the Company's marketable investments in long-term fixed rate debt and equity securities are swapped to U.S.
dollar LIBOR-based returns. The currency risks of investments denominated in foreign currencies are hedged with foreign currency
borrowings, currency forward contracts or currency interest rate swaps (see "Derivative financial instruments" under "Accounting policies").
Investments with maturities of greater than six months consist primarily of A and A2 or better rated financial instruments and counterparties.
Investments with maturities of up to six months consist primarily of A1/P1 or better rated financial instruments and counterparties. Foreign
government regulations imposed upon investment alternatives of foreign subsidiaries, or the absence of A and A2 rated counterparties in
certain countries, result in some minor exceptions. Intel's practice is to obtain and secure available collateral from counterparties against
obligations whenever Intel deems appropriate. At December 30, 1995, investments were placed with approximately 100 different
counterparties.
Investments at December 30, 1995 were as follows:
(In millions) 1995 1994
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Payable in U.S. dollars:
AFICA Bonds due 2013 at 4% $ 110 $ 110
Zero Coupon Notes due 1995 at 11.8%,
net of unamortized discount of $8 in 1994 -- 179
Other U.S. dollar debt 4 4
Payable in other currencies:
Irish punt due 2008-2024 at 6%-12% 240 228
Greek drachma due 2001 46 46
Other foreign currency debt -- 4
(Less short-term portion) -- (179)
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Total $ 400 $ 392
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Gross Gross Estimated
unrealized unrealized fair
(In millions) Cost gains losses value
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Commercial paper $ 576 $ -- $ -- $ 576
Repurchase agreements 474 -- -- 474
Securities of foreign
governments 456 1 (1) 456
Corporate bonds 375 5 -- 380
Bank time deposits 360 -- -- 360
Loan participations 278 -- -- 278
Floating rate notes 224 -- -- 224
Fixed rate notes 159 1 (1) 159
Collateralized mortgage
obligations 129 -- (1) 128
Other debt securities 119 -- (1) 118
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Total debt securities 3,150 7 (4) 3,153
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Hedged equity 431 45 -- 476
Preferred stock and