Credit Facility and Long-Term Debt

Credit Facility

In 2012, we entered into a five-year $250 million unsecured revolving credit facility (the "Facility"). Under certain circumstances, upon our request and with the consent of the lenders, the commitments under the Facility may be increased up to an additional $250 million. Borrowings under the Facility will bear interest at a base rate determined in accordance with the Facility, plus an applicable margin based upon the debt rating of our non-credit enhanced, senior unsecured long-term debt. In addition, we are obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments. This Facility fee varies and is also determined based on our debt rating. The terms of the Facility require compliance with certain financial and non-financial covenants, which we had satisfied as of March 27, 2015. As of March 27, 2015, we had not borrowed any funds under the Facility.

Long-term Debt

The carrying values and associated effective interest rates for our Long-term debt were as follows:



(In thousands, except rates)	Effective Interest Rate	March 27, 2015		December 31, 2014

2013 Senior Notes due November 15, 2018 at 2.50%	2.71%	$	597,717	$	597,557
2013 Senior Notes due November 15, 2023 at 4.10%	4.29%	395,684		395,559
2012 Senior Notes due May 15, 2017 at 1.75%	1.94%	499,681		499,643
Total long-term debt		$	1,493,082	$	1,492,759

In 2013, we issued $600 million aggregate principal amount of 2.50% senior notes (the “2.50% Notes”) and $400 million aggregate principal amount of 4.10% senior notes (the “4.10% Notes”) for stock repurchase and general corporate purposes. We received net proceeds of $991.8 million, after deduction of a discount of $8.2 million, and we capitalized direct debt issuance costs of $5.5 million from issuance of the 2.50% Notes and the 4.10% Notes.

In 2012, we issued $500 million aggregate principal amount of 1.75% senior notes (the "1.75% Notes") to repay our outstanding credit facility. We received net proceeds of $499.2 million, after deduction of a discount of $0.8 million, and we capitalized direct debt issuance costs of $3.7 million from issuance of the 1.75% Notes.

All three of our senior notes (the “Notes”) pay a fixed rate of interest semiannually on May 15 and November 15 of each year. The Notes are governed by a base and supplemental indenture between Altera and U.S. Bank National Association, as trustee. The Notes are unsecured and unsubordinated obligations, ranking equally in right of payment to all of our existing and future unsecured and unsubordinated indebtedness and senior in right of payment to any of our future indebtedness that is expressly subordinated to the Notes. We may redeem the Notes, in whole or in part, at any time and from time to time for cash at the redemption prices described in the indentures.

The direct debt issuance costs associated with the Notes are recorded in Other assets, net in our consolidated balance sheets and are being amortized to Interest expense in our consolidated statements of comprehensive income over the contractual term using the effective interest method.

The carrying values of the Notes are reflected in our consolidated balance sheets as follows:



	2.50% Notes						4.10% Notes						1.75% Notes
(In thousands)	March 27, 2015			December 31, 2014			March 27, 2015			December 31, 2014			March 27, 2015			December 31, 2014

Principal amount	$	600,000		$	600,000		$	400,000		$	400,000		$	500,000		$	500,000
Unamortized discount	(2,283		)	(2,443		)	(4,316		)	(4,441		)	(319		)	(357		)
Net carrying value	$	597,717		$	597,557		$	395,684		$	395,559		$	499,681		$	499,643

Interest expense related to the Notes was included in Interest expense in the consolidated statements of comprehensive income as follows:



	Three Months Ended
(In thousands)	March 27, 2015		March 28, 2014

Contractual coupon interest	$	9,538	$	9,652
Amortization of debt issuance costs	456		456
Amortization of debt discount	323		323
Total interest expense related to the Notes	$	10,317	$	10,431

The other component of Interest expense in our consolidated statements of comprehensive income is interest expense incurred related to bank service fees incurred in connection with our credit facility.

As of March 27, 2015, future principal payments for the Notes were as follows:



Fiscal Year	Payable
	(In thousands)
2015 (remaining nine months)	$	—
2016	—
2017	500,000
2018	600,000
2019	—
2020 and after	400,000
Total	$	1,500,000

The Notes are measured at fair value on a quarterly basis for disclosure purposes. Our Notes are classified within Level 1 of the fair value hierarchy and the estimated fair value of the Notes is based on quoted market prices. The estimated fair value of the Notes is as follows:



	2.50% Notes				4.10% Notes				1.75% Notes
(In thousands)	March 27, 2015		December 31, 2014		March 27, 2015		December 31, 2014		March 27, 2015		December 31, 2014

Estimated fair value	$	613,746	$	606,564	$	427,112	$	417,480	$	503,655	$	501,460