Note 14: Borrowings

Short-Term Debt

Our short-term debt at the end of each period was as follows:



(In Millions)	Apr 2, 2016			Dec 26, 2015
Drafts payable	$	75		$	41
Commercial paper	921			—
Current portion of long-term debt	2,606			2,602
Less: debt issuance costs associated with the current portion of long-term debt	(8		)	(9		)
Total short-term debt	$	3,594		$	2,634

We have an ongoing authorization from our Board of Directors to borrow up to $5.0 billion under our commercial paper program. Maximum borrowings under our commercial paper program in the first three months of 2016 were $3.0 billion ($900 million in the first three months 2015). We had $921 million outstanding commercial paper as of April 2, 2016 (none outstanding as of December 26, 2015). Our commercial paper was rated A-1+ by Standard & Poor’s and P-1 by Moody’s as of April 2, 2016.

On December 21, 2015, we entered into a short-term credit facility to borrow up to $5.0 billion in order to facilitate the settlement of our acquisition of Altera. Under this credit facility, we borrowed $4.0 billion and the facility was closed in January 2016.

2009 Debentures

The 2009 debentures are convertible, subject to certain conditions. Holders can surrender the 2009 debentures for conversion if the closing price of Intel common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during the 30 consecutive trading-day period ending on the last trading day of the preceding fiscal quarter.

During the first quarter of 2016, the closing stock price conversion right condition of the 2009 debentures continued to be met and the debentures will be convertible at the option of the holders during the second quarter of 2016. As a result, the $1.1 billion carrying amount of the 2009 debentures was classified as short-term debt on our consolidated condensed balance sheet as of April 2, 2016 ($1.1 billion as of December 26, 2015). The excess of the amount of cash payable if converted over the carrying amount of the 2009 debentures of $894 million has been classified as temporary equity on our consolidated condensed balance sheet as of April 2, 2016 ($897 million as of December 26, 2015). In future periods, if the closing stock price conversion right condition is no longer met, all outstanding 2009 debentures would be reclassified to long-term debt and the temporary equity would be reclassified to stockholders’ equity on our consolidated condensed balance sheet.

Long-Term Debt

Our indebtedness is carried at amortized cost plus applicable hedge adjustments. Our long-term debt at the end of each period was as follows:



(In Millions)	Maturity Date	Stated Interest Rate	Apr 2, 2016			Dec 26, 2015
First quarter 2016 acquired Altera debt of $1.5 billion
Senior notes	May 2017	1.75%	$	501		$	—
Senior notes	November 2018	2.50%	606			—
Senior notes	November 2023	4.10%	426			—
Fourth quarter 2015 debt issuance of $915 million
Senior notes	December 2045	4.70%	939			908
Fourth quarter 2015 Australian dollar-denominated debt issuance of A$800 million
Senior notes¹	December 2019	3.25%	191			181
Senior notes¹	December 2022	4.00%	421			397
Third quarter 2015 debt issuance of $1.0 billion
Senior notes	August 2045	4.90%	1,028			1,009
Third quarter 2015 debt issuance of $7.0 billion
Senior notes	July 2020	2.45%	1,749			1,748
Senior notes	July 2022	3.10%	1,030			996
Senior notes	July 2025	3.70%	2,269			2,247
Senior notes	July 2045	4.90%	1,999			1,998
2012 debt issuance of $6.2 billion
Senior notes	December 2017	1.35%	2,999			2,999
Senior notes	December 2022	2.70%	1,548			1,492
Senior notes	December 2032	4.00%	744			744
Senior notes	December 2042	4.25%	925			924
2011 debt issuance of $5.0 billion
Senior notes	October 2016	1.95%	1,500			1,499
Senior notes	October 2021	3.30%	1,998			1,997
Senior notes	October 2041	4.80%	1,491			1,490
2009 debt issuance of $2.0 billion
Junior subordinated convertible debentures	August 2039	3.25%	1,106			1,103
2005 debt issuance of $1.6 billion
Junior subordinated convertible debentures	December 2035	2.95%	979			975
Long-term debt			24,449			22,707
Less: current portion of long-term debt			(2,606		)	(2,602		)
Less: debt issuance costs			(68		)	(69		)
Total long-term debt			$	21,775		$	20,036


¹	To manage foreign currency risk associated with the Australian-dollar-denominated notes issued in 2015, we entered into currency interest rate swaps with an aggregate notional amount of $577 million, which effectively converted these notes to U.S.-dollar-denominated notes. For further discussion on our currency interest rate swaps, see "Note 7: Derivative Financial Instruments."

During the first quarter of 2016, in connection with our completed acquisition of Altera, we acquired a total of $1.5 billion aggregate principal amount of senior unsecured notes. The senior notes pay a fixed rate of interest semiannually. We may redeem the notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under these 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.

For further information on our debt instruments, see the "Borrowings" note in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 26, 2015.