Intel 2010 Annual Report Download - page 111
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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The conversion rate adjusts for certain events outlined in the indentures governing the 2009 and 2005 debentures, such as
quarterly dividend distributions in excess of $0.14 and $0.10 per share, for the 2009 and 2005 debentures, respectively, but
does not adjust for accrued interest. In addition, the conversion rate will increase for a holder of either the 2009 or 2005
debentures who elects to convert the debentures in connection with certain share exchanges, mergers, or consolidations
involving Intel.
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 constitute an unsecured general obligation for Intel. The aggregate principal amount of the
bonds issued in December 2007 is $125 million due in 2037, and the bonds bear interest at a fixed rate of 5.3%. The 2007
Arizona bonds are subject to mandatory tender, at our option, on any interest payment date beginning on or after December 1,
2012 until their final maturity on December 1, 2037. Upon such tender, we can re-market the bonds as either fixed-rate bonds
for a specified period or as variable-rate bonds until their final maturity. We also entered into a total return swap agreement
that effectively converts the fixed-rate obligation on the bonds to a floating U.S.-dollar LIBOR-based rate. We have elected to
account for the 2007 Arizona bonds at fair value. For further discussion, see “Note 5: Fair Value.”
In 2005, we guaranteed repayment of principal and interest on bonds issued by the Industrial Development Authority of the
City of Chandler, Arizona, which constitutes an unsecured general obligation for Intel. The principal amount, excluding the
premium, of the bonds issued in 2005 was $157 million. The 2005 Arizona bonds were mandatorily tendered and repaid on
November 30, 2010. The bonds bore interest at a fixed rate of 4.375%. 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, 2035.
As of December 25, 2010, our aggregate debt maturities based on outstanding principal were as follows (in millions):
Substantially all of the difference between the total aggregate debt maturities above and the total carrying amount of our debt
is due to the unamortized discount of our convertible debentures.
81
Year Payable
2011
$
—
2012
—
2013
—
2014
—
2015
—
2016 and thereafter
3,725
Total
$
3,725