Intel 2001 Annual Report Download - page 49

Weighted average common shares outstanding, assuming dilution, includes the incremental shares that would be issued upon the assumed exercise of stock options, as well as the
assumed conversion of the convertible notes, for the period the notes were outstanding. Approximately 211 million of the company's stock options were excluded from the calculation of
diluted earnings per share for 2001 (34 million in 2000 and 8 million in 1999). These options were excluded because they were antidilutive, but they could be dilutive in the future.
Reclassifications >
Certain amounts reported in previous years have been reclassified to conform to the 2001 presentation.
Common stock
Stock repurchase program >
The company has an ongoing authorization, as amended, from the Board of Directors to repurchase up to 1.8 billion shares of Intel's common stock in open
market or negotiated transactions. During 2001, the company repurchased 133 million shares of common stock at a cost of $4 billion. As of December 29, 2001, the company had
repurchased and retired approximately 1.5 billion shares at a cost of $26 billion since the program began in 1990. As of December 29, 2001, 293 million shares remained available under the
repurchase authorization.
Prior to 2001, the company sold put warrants that allowed the holder to sell one share of stock to the company at a specified price. During 1999, the company received premiums of
$20 million. As of December 29, 2001 and December 30, 2000, no put warrants were outstanding.
Borrowings
Short
-term debt > Short-term debt at fiscal year-ends was as follows:
Obligations under securities lending agreements had an average rate of 1.75% as of December 29, 2001. The company also borrows under commercial paper programs. Maximum
borrowings under commercial paper programs reached $105 million during 2001 and $539 million during 2000. This debt is rated A-1+ by Standard & Poor's and P-1 by Moody's.
Long
-term debt > Long-term debt at fiscal year-ends was as follows:
The company has guaranteed repayment of principal and interest on bonds issued by the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities
Financing Authority. 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
2003.
In April 2001, the company issued zero coupon senior exchangeable notes for net proceeds of $208 million in a private placement. The note holders have the right to exchange their Intel
notes for Samsung Electronics Co., Ltd. convertible notes (Samsung notes) owned by Intel. The Intel note holders may exercise their exchange option any time prior to January 12, 2004. The
exchangeable notes were issued in order to partially mitigate the equity market risk of Intel's investment in the Samsung notes, and the exchange option is accounted for as an equity
derivative and marked-to-market. The carrying value of the debt instrument, excluding the portion allocated to the equity derivative, is being accreted to its principal amount of $200 million
through interest expense over the period to its maturity. The Intel notes are redeemable by Intel at any time.
In September 2000, all of the company's convertible subordinated notes, with a carrying value of $207 million, were exchanged for approximately 7.4 million shares of unregistered Intel
common stock.
Employee stock options
163
272
289
Convertible notes —
5
3
Weighted average common shares outstanding, assuming dilution
6,879
6,986
6,940
(In millions) 2001 2000
Drafts payable (non
-
interest
-
bearing)
$
224
$
368
Floating rate obligations under securities lending agreements
153
—
Other short-term debt
18
—
Current portion of long
-
term debt
14
10
Total $
409
$
378
(In millions) 2001 2000
Payable in U.S. dollars:
Puerto Rico bonds adjustable 2003, due 2013 at 3.9%—4.25% $
116
$
110
Zero coupon senior exchangeable notes due 2004
256
—
Other U.S. dollar debt
5
5
Payable in other currencies:
Euro debt due 2001—2027 at 3.5%—13%
687
602
1,064
717
Less current portion of long
-
term debt
(14
)
(10
)
Total $
1,050
$
707