Intel 2012 Annual Report Download - page 81

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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
As of December 29, 2012, our aggregate debt maturities based on outstanding principal were as follows (in millions):
Year Payable
2013 ...........................................................................................................................................
$ —
2014 ...........................................................................................................................................
—
2015 ...........................................................................................................................................
—
2016 ...........................................................................................................................................
1,500
2017 ...........................................................................................................................................
3,000
2018 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 20: 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 29, 2012, 80% of our U.S. Intel Retirement Contribution Plan assets were invested in equities, and
20% 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 $357 million for the qualified and non-qualified U.S. retirement contribution plans in 2012 ($340 million in
2011 and $319 million in 2010). In the first quarter of 2013, we funded $336 million for the 2012 contributions to the
qualified U.S. retirement contribution plans.
Pension and Postretirement Benefit Plans
U.S. Pension Benefits. For employees hired prior to January 1, 2011, we provide a tax-qualified defined-benefit pension
plan, the U.S. Intel Minimum Pension Plan, for the benefit of eligible employees, former employees, and retirees in the
U.S. The U.S. Intel Minimum Pension Plan benefit is determined by a participant’s years of service and final average
compensation (taking into account the participant’s Social Security wage base). The plan generates a minimum pension
benefit if the participants’ U.S. Intel Minimum Pension Plan benefit exceeds the annuitized value of their U.S. Intel
Retirement Contribution Plan benefit. If participant balances in the U.S. Intel Retirement Contribution Plan do not grow
sufficiently, the projected benefit obligation of the U.S. Intel Minimum Pension Plan could increase significantly.