Intel 2013 Annual Report Download - page 88

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83
The conversion rate adjusts for certain events outlined in the indentures governing the 2009 and 2005 debentures,
such as quarterly dividend distributions in excess of $0.14 and $0.10 per share for the 2009 and 2005 debentures,
respectively, but it does not adjust for accrued interest. In addition, the conversion rate will increase for a holder of
either the 2009 or 2005 debentures who elects to convert the debentures in connection with certain share
exchanges, mergers, or consolidations involving Intel.
Arizona Bonds
In 2007, we guaranteed repayment of principal and interest on bonds issued by the Industrial Development
Authority of the City of Chandler, Arizona, which constituted an unsecured general obligation for Intel. The
aggregate principal amount of the bonds issued in December 2007 was $125 million. The 2007 Arizona bonds were
tendered and repaid in December 2012. These bonds bore interest at a fixed rate of 5.3%. In the future, we may re-
market the bonds as either fixed-rate bonds for a specified period or as variable-rate bonds until their final maturity
on December 1, 2037.
Debt Maturities
Our aggregate debt maturities based on outstanding principal as of December 28, 2013, by year payable, were as
follows:
(In Millions)
2014 $ —
2015 —
2016 1,500
2017 3,000
2018 —
2019 and thereafter 10,275
Total $ 14,775
Substantially all of the difference between the total aggregate debt maturities in the preceding table and the total
carrying amount of our debt is due to the unamortized discount of our convertible debentures.
Note 17: Retirement Benefit Plans
Retirement Contribution Plans
We provide tax-qualified retirement contribution plans for the benefit of eligible employees, former employees, and
retirees in the U.S. and certain other countries. The plans are designed to provide employees with an accumulation
of funds for retirement on a tax-deferred basis. Employees hired prior to January 1, 2011 are eligible for and receive
discretionary employer contributions in the U.S. Intel Retirement Contribution Plan, while employees hired on or
after January 1, 2011 receive discretionary employer contributions in the Intel 401(k) Savings Plan. Our Chief
Executive Officer (CEO) determines the annual discretionary employer contribution amounts for the U.S. Intel
Retirement Contribution Plan and the Intel 401(k) Savings Plan under delegation of authority from our Board of
Directors, pursuant to the terms of the plans. As of December 28, 2013, 83% of our U.S. Intel Retirement
Contribution Plan assets were invested in equities, and 17% were invested in fixed-income instruments. These
assets are managed by external investment managers. The discretionary employer contributions made to the Intel
401(k) Savings Plan are participant-directed.
For the benefit of eligible U.S. employees, we also provide a non-tax-qualified supplemental deferred compensation
plan for certain highly compensated employees. This plan is designed to permit certain discretionary employer
contributions and to permit employee deferral of a portion of compensation in addition to their Intel 401(k) Savings
Plan deferrals. This plan is unfunded.
We expensed $298 million for the qualified and non-qualified U.S. retirement contribution plans in 2013 ($357
million in 2012 and $340 million in 2011). In the first quarter of 2014, we funded $288 million for the 2013
contributions to the qualified U.S. retirement contribution plans.
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)