Intel 2003 Annual Report Download - page 67

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Table of Contents
Index to Financial Statements
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3: Earnings Per Share
The shares used in the computation of the company’s basic and diluted earnings per common share were as follows:
Weighted average common shares outstanding, assuming dilution, include the incremental shares that would be issued upon the assumed
exercise of stock options. For 2003, approximately 418 million of the company’s stock options were excluded from the calculation of diluted
earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and
therefore their inclusion would have been anti-dilutive (387 million in 2002 and 211 million in 2001). These options could be dilutive in the
future if the average share price increases and is equal to or greater than the exercise price of these options.
Note 4: Common Stock Repurchase Program
The company has an ongoing authorization, as amended, from the Board of Directors to repurchase up to 2.3 billion shares of Intel’s
common stock in open market or negotiated transactions. During 2003, the company repurchased 176 million shares of common stock at a cost
of $4 billion. During 2002, the company repurchased 183 million shares of common stock at a cost of $4 billion (133 million shares at a cost of
$4 billion during 2001). Since the program began in 1990, the company has repurchased and retired approximately 1.9 billion shares at a cost
of $34 billion. As of December 27, 2003, approximately 414 million shares remained available for repurchase under the existing repurchase
authorization.
Note 5: Borrowings
Short
-Term Debt
Short-term debt at fiscal year-ends was as follows:
Obligations under securities lending agreements had an average rate of 1.25% as of December 28, 2002. The company also borrows
under a commercial paper program. Maximum borrowings under the company’s commercial paper program reached $30 million during 2003
and $240 million during 2002, and cannot exceed authorized borrowings of $3 billion. No commercial paper was outstanding as of December
27, 2003 or December 28, 2002. The company’s commercial paper is rated A-1+ by Standard & Poor’s and P-1 by Moody’s.
62
(In Millions)
2003
2002
2001
Weighted average common shares outstanding
6,527
6,651
6,716
Dilutive effect of employee stock options
94
108
163
Weighted average common shares outstanding, assuming dilution
6,621
6,759
6,879
(In Millions)
2003
2002
Drafts payable (non
-
interest
-
bearing)
$
143
$
211
Floating rate obligations under securities lending agreements
—
84
Current portion of long
-
term debt
81
141
Total short
-
term debt
$
224
$
436