Intel 1998 Annual Report Download - page 43

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Page 21
currencies are hedged with foreign currency borrowings, currency forward contracts or currency interest rate swaps (see "Derivative financial
instruments" under "Accounting policies").
Investments with maturities of greater than six months consist primarily of A and A2 or better rated financial instruments and counterparties.
Investments with maturities of up to six months consist primarily of A-1 and P-1 or better rated financial instruments and counterparties.
Foreign government regulations imposed upon investment alternatives of foreign subsidiaries, or the absence of A and A2 rated counterparties
in certain countries, result in some minor exceptions. Intel's practice is to obtain and secure available collateral from counterparties against
obligations whenever Intel deems appropriate. At December 26, 1998, investments were placed with approximately 185 different
counterparties.
Investments at December 26, 1998 were as follows:
Investments at December 27, 1997 were as follows:
GROSS GROSS
UNREALIZED UNREALIZED ESTIMATED FAIR
(IN MILLIONS) COST GAINS LOSSES VALUE
-----------------------------------------------------------------------------------------------------------------
U.S. government securities $2,824 $-- $(11) $2,813
Commercial paper 2,694 5 (2) 2,697
Floating rate notes 1,273 2 (2) 1,273
Corporate bonds 1,153 51 (17) 1,187
Bank time deposits 1,135 1 (1) 1,135
Loan participations 625 -- -- 625
Repurchase agreements 124 -- -- 124
Securities of foreign
governments 36 1 (1) 36
Other debt securities 160 -- -- 160
-------- -------- -------- --------
Total debt securities 10,024 60 (34) 10,050
-------- -------- -------- --------
Hedged equity 100 -- (2) 98
Marketable strategic equity securities 822 979 (44) 1,757
Preferred stock and other
equity 140 1 -- 141
-------- -------- -------- --------
Total equity securities 1,062 980 (46) 1,996
-------- -------- -------- --------
Options creating synthetic money market
instruments 474 -- -- 474
Swaps hedging investments
in debt securities -- 19 (52) (33)
Swaps hedging investments
in equity securities -- 2 -- 2
Currency forward contracts
hedging investments in
debt securities -- 2 (4) (2)
-------- -------- -------- --------
TOTAL AVAILABLE-FOR-SALE
SECURITIES 11,560 1,063 (136) 12,487
Less amounts classified
as cash equivalents (1,850) -- -- (1,850)
-------- -------- -------- --------
TOTAL INVESTMENTS $9,710 $1,063 $ (136) $10,637
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