Intel Corp., balance sheet: debt

US$ in millions

	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
Short-term debt	1,261	1,776	4,634	2,634	1,604
Long-term debt	25,098	25,037	20,649	20,036	12,107
Total debt (carrying amount)	26,359	26,813	25,283	22,670	13,711

Item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Intel Corp.’s total debt increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

	Dec 29, 2018
Selected Financial Data (US$ in millions)
Commercial paper and drafts payable	500
Long-term debt, including current portion	27,100
Total debt (fair value)	27,600
Financial Ratio
Debt, fair value to carrying amount ratio	1.05

Weighted-average effective interest rate on debt: 3.28%

Interest Rate	Debt Amount¹	Interest Rate × Debt Amount
2.29%	700	16
2.56%	800	20
2.11%	177	4
1.89%	1,000	19
2.49%	1,750	44
1.79%	500	9
3.67%	2,000	73
2.67%	750	20
3.47%	1,000	35
2.89%	389	11
3.06%	1,500	46
3.22%	400	13
3.03%	1,250	38
2.79%	600	17
4.16%	2,250	94
2.62%	1,000	26
3.21%	1,000	32
3.70%	750	28
4.49%	802	36
3.87%	567	22
4.56%	772	35
3.45%	915	32
3.72%	1,250	47
3.59%	1,000	36
2.91%	640	19
3.90%	1,967	77
2.49%	423	11
3.42%	988	34
Total	27,140	891
3.28%

¹ US$ in millions

² Weighted-average interest rate = 100 × 891 ÷ 27,140 = 3.28%

Intel Corp., interest costs incurred

US$ in millions

12 months ended	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
Interest expense	468	646	733	337	192
Interest capitalized	496	313	135	258	276
Interest costs incurred	964	959	868	595	468

Item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Intel Corp.’s interest expense declined from 2016 to 2017 and from 2017 to 2018.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Intel Corp.’s interest capitalized increased from 2016 to 2017 and from 2017 to 2018.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Intel Corp.’s interest costs incurred increased from 2016 to 2017 and from 2017 to 2018.

	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
Selected Financial Data (US$ in millions)
Net income	21,053	9,601	10,316	11,420	11,704
Add: Income tax expense	2,264	10,751	2,620	2,792	4,097
Add: Interest expense	468	646	733	337	192
Earnings before interest and tax (EBIT)	23,785	20,998	13,669	14,549	15,993

Interest costs incurred	964	959	868	595	468
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	50.82	32.50	18.65	43.17	83.30
Adjusted interest coverage ratio (with capitalized interest)²	24.67	21.90	15.75	24.45	34.17

2018 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 23,785 ÷ 468 = 50.82

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 23,785 ÷ 964 = 24.67

Financial Ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Intel Corp.’s adjusted interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018.

Intel Corp. (INTC)

Analysis of Debt