Module 1
1) What are the maturities on Intel’s Long-term debt?
2) What are Intel’s projected obligations on Long-Term Debt and Payments due by period?
3) What is the par or stated value of Intel’s preference shares? Par Value/Stated Value of Preferred Shares = $0.001
4) What is the par or stated value of Intel’s ordinary shares? Par Value/Stated Value of Common Shares = $0.001
5) What percentage of Intel’s authorized ordinary shares was issued at Dec 29, 2012? in millions
Authorized Share #
10,000
Issued/Outstanding Share #
4,944
% Authorized Outstanding
49.44%
6) How many ordinary shares were outstanding at Dec 29, 2012, and Dec 31, 2011? in millions
# Shares Outstanding 12/29/2012
4,944
# Shares Outstanding 12/31/2011
5,000
Module 2
Under Intel’s equity-based compensation plan, share options are granted annually to key managers and directors. 1) How many options were granted and exercisable in 2011 and 2012 under the plan? in millions
# Options Granted 2012
202.8
# Options Exercised 2012
139.8
in millions
# Options Granted 2011
298.3
# Options Exercised 2011
203.6
2) What number of diluted weighted-average shares outstanding was used by Intel in computing earnings per share for 2011 and 2012? What were Intel’s diluted earnings per share in 2011 and 2012? Wtd Avg Shares 2012
The Essay on Recommend For Optimal Sources For Intel To Raise 675 Million
Recommend for optimal sources for Intel to raise $675 million The Intel Corporation is considered to be one of the world leaders in silicon innovations, the largest chip maker and, most of all, it is a leading producer of computer, networking, and communications products. Thats why it has constantly to explore new ways to advance how people work and live. Intel believes in innovations. It is the ...
5,160
Diluted EPS 2012
$2.13
Wtd Avg Shares 2011
5,411
Diluted EPS 2011
$2.39
3) What other equity-based compensation plans does Intel have? Stock Repurchase Plan
Restricted Stock Units
4) What investments does Intel report in 2012?
Marketable Equity Securities
Other Long Term Investments
5) How does Intel determine fair value?
They determine the fair value of their non-marketable equity investments using the market and income approaches. 6) How does Intel use derivative financial instruments?
They hold derivative instruments that seek to offset changes in liabilities related to the equity market risks of certain deferred compensation arrangements.
Module 3
1) What amounts relative to income taxes does Intel report in its: a. 2012 income statement?
$3,868
b. 29 Dec 2012 balance sheet?
$0
c. 2012 statement of cash flows?
$229
2) Intel’s provision for income taxes in 2011 and 2012 was computed at what effective tax rates? Effective Tax Rate 2011: 27.2%
Effective Tax Rate 2012: 26.0%
3) How much of Intel’s 2012 total provision for income taxes was current tax expense, and how much was deferred tax expense? Current: $3726.00
Deferred: $142
4) What did Intel report as the significant components (the details) of its 29 December, 2012 deferred tax assets and liabilities?
Module 4
1) What kind of pension plan does Intel provide its employees? Tax Qualified Defined Benefit Plan
Non US Defined Pension Plan
2) What was Intel’s pension expense for 2011 and 2012?
Projected Benefit Obligation 2011 – $1,480
Projected Benefit Obligation 2012 – $1,742
3) What is the impact of Intel’s pension plans on its 2011 and 2012 consolidated balance sheets? Fair Value and Actual Return of plan assets has increased from 2011 to 2012. 4) What information does Intel provide on the target allocation of its pension assets? How does the allocation relate to the expected returns on these assets? In general, the investment strategy for U.S. Intel Minimum Pension Plan assets is to maximize risk-adjusted returns, taking into consideration the investment horizon and expected volatility, to ensure that there are sufficient assets available to pay pension benefits as they come due.
The Essay on Valuation Allowance for Deferred Tax Assets
This memo is to assess the establishment of valuation allowance for Deferred Tax Assets. I also explain the current sources of deferred tax for Packer, Inc. Applying GAAP, I will advise not using a valuation allowance of 60% of deferred tax assets. I. Sources of deferred taxes Deferred tax liabilities A deferred tax liability is recognized for temporary differences that will result in taxable ...
Module 5
1) What types of leases are used by Intel?
Operating Leases
2) What amount of operating leases was reported by Intel for various years? in millions
2013
206
2014
177
2015
138
2016
98
2017
80
2018 and thereafter
210
Total
909
Module 6
1) Were there changes in accounting policies reported by Intel during the two years covered by its income statements (2011–2012)? If so, describe the nature of the change and the year of change. n the first quarter of 2012, we adopted amended standards that increase the prominence of items reported in other comprehensive income. 2) What types of estimates did Intel discuss in 2012?
Our most critical accounting estimates include:
• the valuation of non-marketable equity investments and the determination of other-than-temporary impairments, which impact gains (losses) on equity investments, net when we record impairments;
• the assessment of recoverability of long-lived assets (property, plant and equipment; goodwill; and identified intangibles), which impacts gross margin or operating expenses when we record asset impairments or accelerate their depreciation or amortization;
• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions), which impact our provision for taxes;
• the valuation of inventory, which impacts gross margin;
• the recognition and measurement of loss contingencies, which impact gross margin or operating expenses when we recognize a loss contingency, revise the estimate for a loss contingency, or record an asset impairment.
Module 7
1) Which method of computing net cash provided by operating activities does Intel use? What were the amounts of net cash provided by operating activities for the years 2011 and 2012? Indirect Method Statement of Cash Flow
The Essay on Net Income is defined as the total income
Net Income is defined as the total income of the company after all the expenses and other costs from their total revenue. The level of Net Income is very important for the managers since it is the one that will be divided into the shareholders of the company. The higher the net income, the greater would be the capital gains that stockholder would receive. There are instances that even though the ...
Net Cash Operating 2011 = $20,963
Net Cash Operating 2012 = $18,884
2) What was the most significant item in the cash flows used for investing activities section in 2012? A purchase of available for sale trading securities.
3) What was the most significant item in the cash flows used for financing activities section in 2012? Repurchase of Common Stock
Issuance of Long Term Debt
4) Where is “deferred income taxes” reported in Intel’s statement of cash flows? Why does it appear in that section of the statement of cash flows? Operating Activities Section. Because it’s a current asset or liability. 5) Where is depreciation reported in Intel’s statement of cash flows? Why is depreciation added to net income in the statement of cash flows? Operating Activities Section. Because it’s a non-cash expense. We add to net income. Module 8
1) What specific items does Intel discuss in its Note 2—Summary of Significant Accounting Policies? (List the headings only.)
Use of Estimates
Fair Value
Fair Value Hierarchy
Trading Assets
Available for Sale Investments
Non-Marketable and Other Equity Investments
Other than Temporary Impairment
Derivative Financial instrument
Measurement of effectiveness
Security Lending
Loans Receivable
Inventories
Property Plant and Equipment
Goodwill
Identified Intangible Assets
Product Warranty
Revenue Recognition
Advertising
Employee Equity incentive Plans
Income Tax
2) For what segments did Intel report segmented information? Which segment is the largest? Who is Intel’s largest customer? PC Client Group
Data Center Group
Other Intel architecture operating segments
Intelligent Systems Group
Intel Mobile Communications
Netbook Group
Tablet Group
Phone Group
Service Provider Group
The Term Paper on Intel Pins Hopes On New Chips
Intel pins hopes on new chips The company is aiming at consumer electronic devices, set-top boxes and digital gadgets. By Clint Swett -- Bee Staff Writer Published 2:15 a.m. PDT Monday, September 22, 2003 The article focuses on the new economic plan developed by Intel Corporation aimed on broadening the range of products the company produces. The Intel top executives informed the attendees of ...
Software and services operating segments
McAfee
Wind River Software Group
Software and Services Group
All Other
Non-Volatile Memory Solutions Group
Intel’s largest operating segment is PC Client Group
Intel’s largest customer is Hewlett Packard at 18% of net revenue.
