Intel 2013 Annual Report Download - page 50

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Contractual Obligations
The following table summarizes our significant contractual obligations as of December 28, 2013:
Payments Due by Period
(In Millions) Total Less Than 1 Year 1–3 Years 3–5 Years More Than 5 Years
Operating lease obligations $ 870 $ 208 $ 298 $ 166 $ 198
Capital purchase obligations1 5,503 5,375 125 — 3
Other purchase obligations and commitments2 1,859 772 744 307 36
Long-term debt obligations3 22,372 429 2,360 3,761 15,822
Other long-term liabilities4, 5 1,496 569 663 144 120
Total6 $32,100 $ 7,353 $ 4,190 $ 4,378 $ 16,179
1 Capital purchase obligations represent commitments for the construction or purchase of property, plant and
equipment. They were not recorded as liabilities on our consolidated balance sheets as of December 28,
2013, as we had not yet received the related goods or taken title to the property.
2 Other purchase obligations and commitments include payments due under various types of licenses and
agreements to purchase goods or services, as well as payments due under non-contingent funding
obligations. Funding obligations include agreements to fund various projects with other companies.
3 Amounts represent principal and interest cash payments over the life of the debt obligations, including
anticipated interest payments that are not recorded on our consolidated balance sheets. Any future settlement
of convertible debt would impact our cash payments.
4 We are unable to reliably estimate the timing of future payments related to uncertain tax positions; therefore,
$188 million of long-term income taxes payable has been excluded from the preceding table. However, long-
term income taxes payable, recorded on our consolidated balance sheets, included these uncertain tax
positions, reduced by the associated federal deduction for state taxes and U.S. tax credits arising from non-
U.S. income taxes.
5 Amounts represent future cash payments to satisfy other long-term liabilities recorded on our consolidated
balance sheets, including the short-term portion of these long-term liabilities. Expected required contributions
to our U.S. and non-U.S. pension plans and other postretirement benefit plans of $62 million to be made
during 2014 are also included; however, funding projections beyond 2014 are not practicable to estimate.
6 Total excludes contractual obligations already recorded on our consolidated balance sheets as current
liabilities except for the short-term portions of long-term debt obligations and other long-term liabilities.
Contractual obligations for purchases of goods or services, included in other purchase obligations and commitments
in the preceding table, include agreements that are enforceable and legally binding on Intel and that specify all
significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price
provisions; and the approximate timing of the transaction. For obligations with cancellation provisions, the amounts
included in the preceding table were limited to the non-cancelable portion of the agreement terms or the minimum
cancellation fee.
We have entered into certain agreements for the purchase of raw materials that specify minimum prices and
quantities based on a percentage of the total available market or based on a percentage of our future purchasing
requirements. Due to the uncertainty of the future market and our future purchasing requirements, as well as the
non-binding nature of these agreements, obligations under these agreements are not included in the preceding
table. Our purchase orders for other products are based on our current manufacturing needs and are fulfilled by our
vendors within short time horizons. In addition, some of our purchase orders represent authorizations to purchase
rather than binding agreements.
Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)