Benefit Obligation Essay
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 #
Issued/Outstanding Share #
% Authorized Outstanding
6) How many ordinary shares were outstanding at Dec 29, 2012, and Dec 31, 2011? in millions
# Shares Outstanding 12/29/2012
# Shares Outstanding 12/31/2011
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
# Options Exercised 2012
# Options Granted 2011
# Options Exercised 2011
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
Diluted EPS 2012
Wtd Avg Shares 2011
Diluted EPS 2011
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.
1) What amounts relative to income taxes does Intel report in its: a. 2012 income statement?
b. 29 Dec 2012 balance sheet?
c. 2012 statement of cash flows?
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
4) What did Intel report as the significant components (the details) of its 29 December, 2012 deferred tax assets and liabilities?
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.
1) What types of leases are used by Intel?
2) What amount of operating leases was reported by Intel for various years? in millions
2018 and thereafter
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.
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
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 Hierarchy
Available for Sale Investments
Non-Marketable and Other Equity Investments
Other than Temporary Impairment
Derivative Financial instrument
Measurement of effectiveness
Property Plant and Equipment
Identified Intangible Assets
Employee Equity incentive Plans
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
Service Provider Group
Software and services operating segments
Wind River Software Group
Software and Services Group
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.