Intel 1994 Annual Report Download - page 22

The amount related to Intel's potential repurchase obligation has been reclassified from stockholders' equity to put warrants. The 12.5 million
put warrants outstanding at December 31, 1994 expire on various dates between February 1995 and December 1995 and have exercise prices
ranging from $55 to $63 per share. There was no effect on earnings per share for the periods presented. During 1994, in connection with the
exercise of 1.0 million put warrants, the Company repurchased and retired 1.0 million shares of Common Stock at a cost of $65 million (see
"Stock repurchase program").
BORROWINGS
SHORT-TERM DEBT. Short-term debt and weighted average interest rates at fiscal year-ends are as follows:
At December 31, 1994, the Company had established foreign and domestic lines of credit of approximately $1,040 million. The Company
generally renegotiates these lines annually. Compensating balance requirements are not material.
The Company also borrows under commercial paper programs. Maximum borrowings reached $700 million during both 1994 and 1993. This
debt is rated A1+ by Standard and Poor's and P1 by Moody's. Proceeds are used to fund short-term working capital needs.
LONG-TERM DEBT. Long-term debt at fiscal year-ends is as follows:
Put warrants outstanding
Cumulative -------------------------
premium Number Potential
(In millions) received (paid) of warrants obligation
- -------------------------------------------------------------------------------
December 28, 1991 $ 14 7.0 $ 140
Sales 43 14.0 373
Repurchases (1) (5.2) (104)
Expirations -- (1.8) (36)
------ ------ ------
December 26, 1992 56 14.0 373
Sales 62 10.8 561
Expirations -- (10.0) (246)
------ ------ ------
December 25, 1993 118 14.8 688
Sales 76 12.5 744
Exercises -- (1.0) (65)
Expirations -- (13.8) (623)
------ ------ ------
December 31, 1994 $ 194 12.5 $ 744
====== ====== ======
1994 1993
------------------------ -------------------------
Weighted Weighted
average average
(In millions) Balance interest rate Balance interest rate
- ------------------------------------------------------------------------------
Borrowed under
lines of credit $ 68 3.2% $ 85 5.8%
Reverse repurchase
agreements 99 8.0% 197 7.9%
Notes payable 5 4.7% 2 3.4%
Short-term portion
of long-term debt 179 11.8% -- --
Drafts payable 166 N/A 115 N/A
------ ------ ------ ------
Total $ 517 $ 399
====== ====== ====== ======
(In millions) 1994 1993
- -----------------------------------------------------------------------
Payable in U.S. dollars:
AFICA Bonds due 2013 at 4% $ 110 $ 110
Zero Coupon Notes due 1995 at 11.8%,
net of unamortized discount of $8
($27 in 1993) 179 160
8 1/8% Notes due 1997 -- 98
Other U.S. dollar debt 4 6
Payable in other currencies:
Irish punt due 2008-2024 at 6%-12% 228 146
Greek drachma due 2001 46 --
Other foreign currency debt 4 4
(Less short-term or redeemable portion) (179) (98)
------ ------
Total $ 392 $ 426
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