Intel 2012 Annual Report Download - page 46

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Of the $10.0 billion of marketable debt instruments measured and recorded at fair value on a recurring basis and
classified as Level 2, approximately 60% was classified as Level 2 due to the use of a discounted cash flow model, and
approximately 40% was classified as such due to the use of non-binding market consensus prices that were corroborated
with observable market data.
Our marketable debt instruments that are measured and recorded at fair value on a recurring basis and classified as Level
3 were classified as such due to the lack of observable market data to corroborate either the non-binding market
consensus prices or the non-binding broker quotes. When observable market data is not available, we corroborate our fair
value measurements using non-binding market consensus prices and non-binding broker quotes from a second source.
Loans Receivable and Reverse Repurchase Agreements
As of December 29, 2012, our assets measured and recorded at fair value on a recurring basis included $780 million of
loans receivable and $2.8 billion of reverse repurchase agreements. All of these investments were classified as Level 2,
as the fair value is determined using a discounted cash flow model, with all significant inputs derived from or corroborated
with observable market data.
Marketable Equity Securities
As of December 29, 2012, our assets measured and recorded at fair value on a recurring basis included $4.4 billion of
marketable equity securities. All of these securities were classified as Level 1 because the valuations were based on
quoted prices for identical securities in active markets. Our assessment of an active market for our marketable equity
securities generally takes into consideration the number of days that each individual equity security trades over a
specified period.
Contractual Obligations
The following table summarizes our significant contractual obligations as of December 29, 2012:
Payments Due by Period
(In Millions)
Total
Less Than
1 Year
1–3 Years
3–5 Years
More
Than 5
Years
Operating lease obligations ............................................................
$ 909
$ 206
$ 315
$ 178
$ 210
Capital purchase obligations1 .........................................................
4,618
4,554
64
—
—
Other purchase obligations and commitments2 ..............................
1,958
1,140
581
228
9
Long-term debt obligations3 ...........................................................
22,852
480
860
5,330
16,182
Other long-term liabilities4, 5 .............................................................
1,714
627
652
330
105
Total6 .............................................................................................
$ 32,051
$ 7,007
$ 2,472
$ 6,066
$ 16,506
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 29, 2012, 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, for example, 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, $177
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 $63 million to be made during 2013 are also included;
however, funding projections beyond 2013 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.