Intel 2000 Annual Report Download - page 29

Reclassifications Certain amounts reported in previous years have been reclassified to conform to the 2000 presentation.
Recent accounting pronouncements
The company will adopt Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting
for Derivative Instruments and Hedging Activities," as amended, at the beginning of its fiscal year 2001. The standard will require the company
to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income. If
the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives will either be offset against the change
in fair value of the hedged assets, liabilities or firm commitments through earnings, or recognized in other comprehensive income until the
hedged item is recognized in earnings. The change in a derivative's fair value related to the ineffective portion of a hedge, if any, will be
immediately recognized in earnings. The initial adoption of SFAS No. 133 will not have a material effect on the company's results of
operations or financial condition.
Common stock
Stock repurchase program The company has an ongoing authorization, as amended, from the Board of Directors to repurchase up to
1.5 billion shares of Intel's common stock in open market or negotiated transactions. During 2000, the company repurchased 73.5 million
shares of common stock at a cost of $4.0 billion. As of December 30, 2000, the company had repurchased and retired approximately 1.4 billion
shares at a cost of $22.2 billion since the program began in 1990. As of December 30, 2000, 126.7 million shares remained available under the
repurchase authorization.
1998 step-up warrants During 1998, approximately 310 million of the 1998 step-up warrants were exercised and shares of common stock
were issued for proceeds of $1.6 billion. The expiration date of these warrants was March 14, 1998.
Put warrants
In a series of private placements from 1991 through 1999, the company sold put warrants that entitled the holder of each warrant to sell to
the company, by physical delivery, one share of common stock at a specified price. Activity during the past three years is summarized as
follows:
Borrowings
Short-term debt Short-term debt at fiscal year-ends was as follows:
The company also borrows under commercial paper programs. Maximum borrowings under commercial paper programs reached
Put warrants
outstanding
Cumulative
net premium
received
(In millions)
Number of
warrants
Potential
obligation
December 27, 1997
$
623
105.2
$
2,041
Sales
40
30.0
588
Exercises
—
(
60.0
)
(1,199
)
Expirations
—
(
65.2
)
(1,229
)
December 26, 1998
663
10.0
201
Sales
20
8.0
261
Expirations
—
(
14.0
)
(332
)
December 25, 1999
683
4.0
130
Expirations
—
(
4.0
)
(130
)
December 30, 2000 $
683
—
$
—
(In millions) 2000 1999
Drafts payable (non
-
interest
-
bearing)
$
368
$
230
Current portion of long
-
term debt
10
—
Total $
378
$
230