Altera (FRA:ALR) Long-Term Debt & Capital Lease Obligation : €1,331 Mil (As of Sep. 2015)

View and export this data going back to . Start your Free Trial

What is Altera Long-Term Debt & Capital Lease Obligation?

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Altera's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was €1,331 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Altera's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2015 was €1,331 Mil. Altera's Total Assets for the quarter that ended in Sep. 2015 was €5,244 Mil. Altera's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2015 was 0.25.

Altera's LT-Debt-to-Total-Asset declined from Sep. 2014 (0.26) to Sep. 2015 (0.25). It may suggest that Altera is progressively becoming less dependent on debt to grow their business.

Altera Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Altera's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Altera Long-Term Debt & Capital Lease Obligation Chart

Altera Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Long-Term Debt & Capital Lease Obligation

Get a 7-Day Free Trial

378.00

381.00

1,088.77

1,210.63

Altera Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Long-Term Debt & Capital Lease Obligation	Get a 7-Day Free Trial															1,158.13	1,210.63	1,379.61	1,330.63	1,330.91

Altera Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.

Altera (FRA:ALR) Long-Term Debt & Capital Lease Obligation Explanation

Altera's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2015 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2015 )	=	Long-Term Debt & Capital Lease Obligation (Q: Sep. 2015 )	/	Total Assets (Q: Sep. 2015 )
	=	1330.913	/	5243.7
	=	0.25

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet

Altera Long-Term Debt & Capital Lease Obligation Related Terms

Thank you for viewing the detailed overview of Altera's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.

Altera (FRA:ALR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Altera Corp (FRA:ALR) » Definitions » Long-Term Debt & Capital Lease Obligation

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.altera.com

Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation