Intel 1998 Annual Report Download - page 41

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Page 20
Put warrants
In a series of private placements from 1991 through 1998, the Company sold put warrants that entitle the holder of each warrant to sell to the
Company, by physical delivery, one share of Common Stock at a specified price. Activity during the past three years is summarized as follows:
The amount related to Intel's potential repurchase obligation has been reclassified from stockholders' equity to put warrants. The 5 million put
warrants outstanding at December 26, 1998 expire on various dates in January and February 1999 and have exercise prices ranging from $40 to
$41 per share, with an average exercise price of $40 per share. There is no significant effect on diluted earnings per share for the periods
presented.
Borrowings
Short-term debt. Non-interest-bearing short-term debt at fiscal year-ends was as follows:
The Company also borrows under commercial paper programs. Maximum borrowings under commercial paper programs reached $325 million
during 1998 and $175 million during 1997. This debt is rated A-1+ by Standard and Poor's and P-1 by Moody's. Proceeds are used to fund
short-term working capital needs.
Long-term debt. Long-term debt at fiscal year-ends was as follows:
The Company has guaranteed repayment of principal and interest on the AFICA Bonds issued by the Puerto Rico Industrial, Tourist,
Educational, Medical and Environmental Control Facilities Financing Authority ("AFICA"). During 1998, the bonds were repriced and a
portion remarketed, with interest rates effective through 2003 of 4.25% on the $80 million of Series A bonds and 3.90% on the $30 million of
PUT WARRANTS
OUTSTANDING
-----------------------------
CUMULATIVE
NET
PREMIUM NUMBER OF POTENTIAL
(IN MILLIONS) RECEIVED WARRANTS OBLIGATION
-------------------------------------------------------------------------------------------------------------
DECEMBER 30, 1995 $ 279 48.0 $ 725
Sales 56 36.0 603
Exercises -- (7.2) (108)
Expirations -- (58.8) (945)
--------- --------- ---------
DECEMBER 28, 1996 335 18.0 275
Sales 288 92.6 3,525
Expirations -- (58.0) (1,759)
--------- --------- ---------
DECEMBER 27, 1997 623 52.6 2,041
Sales 40 15.0 588
Exercises - (30.0) (1,199)
Expirations - (32.6) (1,229)
--------- --------- ---------
DECEMBER 26, 1998 $ 663 5.0 $ 201
========= ========= =========
(IN MILLIONS) 1998 1997
--------------------------------------------------------------------------------
Borrowed under
lines of credit $ 10 $ 32
Drafts payable 149 180
------- -------
TOTAL $ 159 $ 212
====== =======
(IN MILLIONS) 1998 1997
----------------------------------------------------------------------------------
Payable in U.S. dollars:
AFICA Bonds due 2013 at 3.9%-4.25% $110 $110
Other U.S. dollar debt 5 6
Payable in other currencies:
Irish punt due 2000-2027 at 5%-12% 541 396
Greek drachma due 2001 46 46
------ ------
Subtotal 702 558
Less long-term debt redeemable within one year - (110)
------ ------
TOTAL $702 $448
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