Intel 2001 Annual Report Download - page 50

The Euro borrowings were made in connection with the financing of manufacturing facilities in Ireland, and Intel has invested the proceeds in Euro-denominated instruments of similar
maturity to hedge currency and interest rate exposures.
As of December 29, 2001, aggregate debt maturities were as follows: 2002—$14 million; 2003—$142 million; 2004—$285 million; 2005—$34 million; 2006—$36 million; and
thereafter—$553 million.
Investments
Trading assets > In addition to the debt and equity investments that are offset by related derivatives, a portion of the company's trading asset portfolio consists of equity securities that are
maintained to generate returns that partially offset changes in liabilities related to certain deferred compensation arrangements. The company also uses fixed income investments and
derivative instruments to offset the remaining portion of the changes in the compensation liabilities. The deferred compensation liabilities were $399 million in 2001 and $392 million in
2000, and are included in other accrued liabilities on the consolidated balance sheets. Net gains (losses) on all trading assets were $7 million in 2001, $(41) million in 2000 and $44 million in
1999, and these gains and losses were offset by gains and losses on the related derivatives and liabilities.
Trading assets outstanding at fiscal year-ends were as follows:
Upon initial adoption of SFAS No. 133 at the beginning of 2001, approximately $1.4 billion of available-for-sale investments in marketable debt securities that had related derivative
instruments were reclassified to trading assets. At the same time, the related derivatives were reclassified to other current assets, other assets or other accrued liabilities. These investments
and derivatives had total associated unrealized gains of $57 million and unrealized losses of $56 million.
Available
-for-sale investments > Available-for-sale investments at December 29, 2001 were as follows:
Available-for-sale investments at December 30, 2000 were as follows:
2001 2000
(In millions)
Net
unrealized
gains
(losses)
Estimated
fair
value
Net
unrealized
gains
(losses)
Estimated
fair
value
Debt instruments $
(15
) $
836
$ — $ —
Equity securities
72
74
— —
Equity securities offsetting deferred compensation
35
314
(39
)
350
Total trading assets $
92
$
1,224
$
(39
) $
350
(In millions)
Adjusted
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair
value
Commercial paper
$
6,329
$
2
$
—
$
6,331
Bank time deposits
2,047
1
(1
)
2,047
Corporate bonds
911
1
—
912
Loan participations
838
—
—
838
Floating rate notes
795
1
—
796
Other debt securities
371
— —
371
Marketable strategic equity securities
109
48
(2
)
155
Preferred stock and other equity
104
—
—
104
Total available-for-sale investments
11,504
53
(3
)
11,554
Less amounts classified as cash equivalents
(7,724
) — — (
7,724
)
$
3,780
$
53
$
(3
) $
3,830
(In millions)
Adjusted
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair
value
Commercial paper $
7,182
$
24
$
(5
) $
7,201
Bank time deposits
3,171
2
—
3,173
Floating rate notes
2,011
10
(7
)
2,014
Marketable strategic equity securities
1,623
756
(464
)
1,915
Corporate bonds
1,195
5
(16
)
1,184
Loan participations
903
—
—
903
Other debt securities
416
— —
416
Preferred stock and other equity
109
— —
109
Swaps hedging investments in debt securities
—
24
(12
)
12
Currency forward contracts hedging investments in debt securities —
4
(21
)
(17
)
Total available-for-sale investments
16,610
825
(525
)
16,910
Less amounts classified as cash equivalents
(2,701
)
—
—
(
2,701
)