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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Volume of Derivative Activity
Total gross notional amounts for outstanding derivatives (recorded at fair value) as of December 26, 2009 and December 27,
2008 were as follows:
The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency)
as of December 26, 2009 and December 27, 2008 were as follows:
We utilize a rolling hedge strategy for the majority of our currency forward contracts with cash flow hedge accounting
designation that hedges exposures to the variability in the U.S.-dollar equivalent of anticipated
non-U.S.-dollar-denominated cash flows. All of our currency forward contracts are single delivery that are settled at maturity
involving one cash-payment exchange.
We use interest rate swaps and currency interest rate swaps to hedge interest rate and currency exchange rate risk components
for our fixed-rate debt instruments with remaining maturities longer than six months and for debt instruments denominated in
currencies other than the U.S. dollar. These swaps have multiple deliveries that are settled at various interest payment times
involving cash payments at each interest and principal payment date, with the majority of the contracts having quarterly
payments.
Credit-Risk-Related Contingent Features
An insignificant amount of our derivative instruments contain credit-risk-related contingent features, such as provisions that
require our debt to maintain an investment-grade credit rating from each of the major credit-rating agencies. As of December
26, 2009 and December 27, 2008, we did not have any derivative instruments with credit-risk-related contingent features that
were in a significant net liability position.
72
(In Millions)
2009
2008
Currency forwards
$
5,732
$
4,331
Embedded debt derivative
3,600
1,600
Interest rate swaps
1,698
1,209
Currency interest rate swaps
1,577
612
Total return swaps
530
125
Currency options
375
—
Other
130
163
Total
$
13,642
$
8,040
(In Millions)
2009
2008
Euro
$
3,330
$
1,819
Japanese yen
1,764
909
Israeli shekel
707
680
British pound sterling
563
366
Chinese yuan
434
491
Malaysian ringgit
310
326
Other
576
352
Total
$
7,684
$
4,943