Intel 2012 Annual Report Download - page 79
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for the estimated costs to repair and replace affected materials and systems associated with products sold subsequent to
December 25, 2010. In the second quarter of 2011, we recognized an additional $79 million charge as we finalized
agreements with customers for reimbursement to repair and replace affected materials and systems. We do not expect to
have any significant future adjustments to our estimate. The charges incurred in 2011 and 2010 are reflected in the results
of the PC Client Group operating segment. As of December 29, 2012, an insignificant product accrual remained for the
chipset design issue.
Note 19: Borrowings
Short-Term Debt
As of December 29, 2012, short-term debt consisted of drafts payable of $264 million and notes payable of $48 million
(commercial paper of $200 million and drafts payable of $47 million as of December 31, 2011). We have an ongoing
authorization from our Board of Directors to borrow up to $3.0 billion, including through the issuance of commercial paper.
Maximum borrowings under our commercial paper program during 2012 were $500 million ($1.4 billion during 2011). Our
commercial paper was rated A-1+ by Standard & Poor’s and P-1 by Moody’s as of December 29, 2012.
Long-Term Debt
Our long-term debt as of December 29, 2012 and December 31, 2011 was as follows:
(In Millions)
2012
2011
2012 Senior notes due 2017 at 1.35% ...........................................................................................
$ 2,997
$ —
2012 Senior notes due 2022 at 2.70% ...........................................................................................
1,494
—
2012 Senior notes due 2032 at 4.00% ...........................................................................................
743
—
2012 Senior notes due 2042 at 4.25% ...........................................................................................
924
—
2011 Senior notes due 2016 at 1.95% ...........................................................................................
1,498
1,498
2011 Senior notes due 2021 at 3.30% ...........................................................................................
1,996
1,995
2011 Senior notes due 2041 at 4.80% ...........................................................................................
1,489
1,489
2009 Junior subordinated convertible debentures due 2039 at 3.25% ..........................................
1,063
1,052
2005 Junior subordinated convertible debentures due 2035 at 2.95% ..........................................
932
919
2007 Arizona bonds due 2037 at 5.30% ........................................................................................
—
131
Total long-term debt.....................................................................................................................
$ 13,136
$ 7,084
Senior Notes
In the fourth quarter of 2012, we issued $6.2 billion aggregate principal amount of senior unsecured notes for general
corporate purposes and to repurchase shares of our common stock pursuant to our authorized common stock repurchase
program. In the third quarter of 2011, we issued $5.0 billion aggregate principal amount of senior unsecured notes,
primarily to repurchase shares of our common stock pursuant to our authorized common stock repurchase program, and
for general corporate purposes.
Our senior notes pay a fixed rate of interest semiannually. We may redeem our senior notes, in whole or in part, at any
time at our option at specified redemption prices. The senior notes rank equally in right of payment with all of our other
existing and future senior unsecured indebtedness and will effectively rank junior to all liabilities of our subsidiaries.