Convertible Debentures and Revolving Credit Facility

2.625% Senior Convertible Debentures

As of September 28, 2013, the Company had $600.0 million principal amount of 2.625% Debentures outstanding. The 2.625% Debentures are senior in right of payment to the Company’s existing and future unsecured indebtedness that is expressly subordinated in right of payment to the 2.625% Debentures, including the 3.125% Debentures described below.

The 2.625% Debentures are convertible, subject to certain conditions, into shares of Xilinx common stock at a conversion price of 33.3681 shares of common stock per $1 thousand principal amount of the 2.625% Debentures, representing an effective conversion price of approximately $29.97 per share of common stock. One of the conditions allowing holders of the 2.625% Debentures to convert during any fiscal quarter is if the last reported sale price of the Company's common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day. This condition was met as of September 28, 2013 and as a result, the 2.625% Debentures were convertible at the option of the holders. As of September 28, 2013 the 2.625% Debentures were classified as a current liability on the Company's condensed consolidated balance sheet. Additionally, a portion of the equity component attributable to the conversion feature of the 2.625% Debentures was classified in temporary stockholders' equity. The amount classified as temporary equity was equal to the difference between the principal amount and carrying value of the 2.625% Debentures.

The conversion rate is subject to adjustment for certain events as outlined in the indenture governing the 2.625% Debentures but will not be adjusted for accrued interest.

The carrying values of the liability and equity components of the 2.625% Debentures are reflected in the Company’s condensed consolidated balance sheets as follows:



(In thousands)	September 28, 2013			March 30, 2013
Liability component:
Principal amount of the 2.625% Debentures	$	600,000		$	600,000
Unamortized discount of liability component	(56,995		)	(64,767		)
Hedge accounting adjustment – sale of interest rate swap	16,470			18,716
Net carrying value of the 2.625% Debentures	$	559,475		$	553,949

Equity component (including temporary equity) – net carrying value	$	66,415		$	66,415

Interest expense related to the 2.625% Debentures was included in interest and other expense, net on the condensed consolidated statements of income as follows:



	Three Months Ended				Six Months Ended
(In thousands)	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Contractual coupon interest	$	3,938	$	3,938	$	7,875	$	7,875
Amortization of debt issuance costs	362		362		724		724
Amortization of debt discount, net	2,763		2,763		5,526		5,526
Total interest expense related to the 2.625% Debentures	$	7,063	$	7,063	$	14,125	$	14,125

3.125% Junior Subordinated Convertible Debentures

As of September 28, 2013, the Company had $689.6 million principal amount of 3.125% Debentures outstanding. The 3.125% Debentures are subordinated in right of payment to the Company’s existing and future senior debt, including the 2.625% Debentures, and to the other liabilities of the Company’s subsidiaries.

The 3.125% Debentures are convertible, subject to certain conditions, into shares of Xilinx common stock at a conversion price of 34.2957 shares of common stock per $1 thousand principal amount of 3.125% Debentures, representing an effective conversion price of approximately $29.16 per share of common stock. One of the conditions allowing holders of the 3.125% Debentures to convert during any fiscal quarter is if the last reported sale price of the Company's common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day. This condition was met as of September 28, 2013 and as a result, the 3.125% Debentures were convertible at the option of the holders. As of September 28, 2013 the 3.125% Debentures were classified as a current liability on the Company's condensed consolidated balance sheet. Additionally, a portion of the equity component attributable to the conversion feature of the 3.125% Debentures was classified in temporary stockholders' equity. The amount classified as temporary equity was equal to the difference between the principal amount and carrying value of the 3.125% Debentures.

The conversion rate is subject to adjustment for certain events as outlined in the indenture governing the 3.125% Debentures but will not be adjusted for accrued interest.

The carrying values of the liability and equity components of the 3.125% Debentures are reflected in the Company’s condensed consolidated balance sheets as follows:



(In thousands)	September 28, 2013			March 30, 2013
Liability component:
Principal amount of the 3.125% Debentures	$	689,635		$	689,635
Unamortized discount of liability component	(318,073		)	(320,620		)
Unamortized discount of embedded derivative from date of issuance	(1,359		)	(1,388		)
Carrying value of liability component – 3.125% Debentures	370,203			367,627
Carrying value of embedded derivative component	407			1,090
Net carrying value of the 3.125% Debentures	$	370,610		$	368,717

Equity component (including temporary equity) – net carrying value	$	229,513		$	229,513

Interest expense related to the 3.125% Debentures was included in interest and other expense, net on the condensed consolidated statements of income and was recognized as follows:



	Three Months Ended					Six Months Ended
(In thousands)	September 28, 2013			September 29, 2012		September 28, 2013			September 29, 2012
Contractual coupon interest	$	5,388		$	5,388	$	10,776		$	10,776
Amortization of debt issuance costs	55			55		112			112
Amortization of embedded derivative	14			14		29			29
Amortization of debt discount	1,285			1,196		2,547			2,371
Fair value adjustment of embedded derivative	(758		)	—		(683		)	614
Total interest expense related to the 3.125% Debentures	$	5,984		$	6,653	$	12,781		$	13,902

Revolving Credit Facility

On December 7, 2011, the Company entered into a $250.0 million senior unsecured revolving credit facility with a syndicate of banks (expiring in December 2016). Borrowings under the credit facility will bear interest at a benchmark rate plus an applicable margin based upon the Company’s credit rating. In connection with the credit facility, the Company is required to maintain certain financial and nonfinancial covenants. As of September 28, 2013, the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.