Microsoft Excel LibreOffice Calc

Intel Corp. (INTC)


Analysis of Debt

Difficulty: Advanced


Total Debt (Carrying Amount)

Intel Corp., Statement of Financial Position, Debt

USD $ in millions

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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 

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

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.

Total Debt (Fair Value)

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

Based on: 10-K (filing date: 2019-02-01).


Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt: 3.28%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
2.29% 700  16 
2.56% 800  20 
2.11% 177 
1.89% 1,000  19 
2.49% 1,750  44 
1.79% 500 
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%

Based on: 10-K (filing date: 2019-02-01).

1 USD $ in millions

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


Interest Costs Incurred

Intel Corp.

USD $ in millions

Microsoft Excel LibreOffice Calc
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 

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

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.

Adjusted Interest Coverage Ratio

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Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ 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 
Ratio With and Without Capitalized Interest
Interest coverage ratio (excluding capitalized interest)1 50.82 32.50 18.65 43.17 83.30
Adjusted interest coverage ratio (including capitalized interest)2 24.67 21.90 15.75 24.45 34.17

Based on: 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest expense
= 23,785 ÷ 468 = 50.82

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


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.