Intel 1999 Annual Report Download - page 42

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Concentrations of credit risk
Financial instruments that potentially subject the company to concentrations of credit risk consist principally of investments and trade
receivables. Intel places its investments with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to any one
counterparty based on Intel's analysis of that counterparty's relative credit standing. A majority of the company's trade receivables are derived
from sales to manufacturers of computer systems, with the remainder spread across various other industries. The company's five largest
customers accounted for approximately 44% of net revenues for 1999. At December 25, 1999, these customers accounted for approximately
35% of net accounts receivable.
The company endeavors to keep pace with the evolving computer and Internet- related industries, and has adopted credit policies and standards
intended to accommodate industry growth and inherent risk. Management believes that credit risks are moderated by the diversity of its end
customers and geographic sales areas. Intel performs ongoing credit evaluations of its customers' financial condition and requires collateral or
other credit support as deemed necessary.
Page 22
instruments $1,177 $ 3,410 $ 571 $ 716
Options creating
synthetic money
market instruments $ -- $ -- $ 474 $ 474
Swaps hedging
investments in
debt securities $ (38) $ (38) $ (33) $ (33)
Swaps hedging
investments in
equity securities $ -- $ -- $ 2 $ 2
Short-term debt $ (230) $ (230) $ (159) $ (159)
Long-term debt $ (955) $(1,046) $ (702) $ (696)
Swaps hedging debt $ -- $ (5) $ -- $ 1
Currency forward
contracts $ 1 $ -- $ (1) $ (1)