Convertible Debentures and Revolving Credit Facility

2.625% Senior Convertible Debentures

In June 2010, the Company issued $600.0 million principal amount of 2.625% Debentures to qualified institutional investors. 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 rate of 33.0164 shares of common stock per $1 thousand principal amount of the 2.625% Debentures, representing an effective conversion price of approximately $30.29 per share of common stock. 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)	June 30, 2012			March 31, 2012
Liability component:
Principal amount of the 2.625% Debentures	$	600,000		$	600,000
Unamortized discount of liability component	(76,425		)	(80,311		)
Hedge accounting adjustment – sale of interest rate swap	22,085			23,208
Net carrying value of the 2.625% Debentures	$	545,660		$	542,897

Equity component – net carrying value	$	105,620		$	105,620

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
(In thousands)	June 30, 2012		July 2, 2011
Contractual coupon interest	$	3,938	$	3,938
Amortization of debt issuance costs	362		362
Amortization of debt discount, net	2,763		2,763
Total interest expense related to the 2.625% Debentures	$	7,063	$	7,063

3.125% Junior Subordinated Convertible Debentures

In March 2007, the Company issued $1.00 billion principal amount of 3.125% Debentures to an initial purchaser in a private offering. 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. During fiscal 2009, the Company repurchased some of its 3.125% Debentures, resulting in approximately $689.6 million of debt outstanding in principal amount as of June 30, 2012. The 3.125% Debentures are convertible, subject to certain conditions, into shares of Xilinx common stock at a conversion rate of 33.5468 shares of common stock per $1 thousand principal amount of 3.125% Debentures, representing an effective conversion price of approximately $29.81 per share of common stock. 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)	June 30, 2012			March 31, 2012
Liability component:
Principal amount of the 3.125% Debentures	$	689,635		$	689,635
Unamortized discount of liability component	(324,273		)	(325,448		)
Unamortized discount of embedded derivative from date of issuance	(1,431		)	(1,446		)
Carrying value of liability component – 3.125% Debentures	363,931			362,741
Carrying value of embedded derivative component	1,545			931
Net carrying value of the 3.125% Debentures	$	365,476		$	363,672
Equity component – 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
(In thousands)	June 30, 2012		July 2, 2011
Contractual coupon interest	$	5,388	$	5,388
Amortization of debt issuance costs	56		56
Amortization of embedded derivative	15		15
Amortization of debt discount	1,175		1,093
Fair value adjustment of embedded derivative	614		(373		)
Total interest expense related to the 3.125% Debentures	$	7,248	$	6,179

Revolving Credit Facility

In December 2011, the Company entered into a five-year $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 June 30, 2012, the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.