Intel Inc. - Week 4 Use the \"Intel Annual Report\" link included at the bottom
ID: 2777102 • Letter: I
Question
Intel Inc. - Week 4
Use the "Intel Annual Report" link included at the bottom of this page to download the Intel Inc. 2013 financial statements and the accompanying notes to answer the following questions. Part of your grade will be based on the structure and organization of your project, therefore clearly identify each section and numbered item to which you are responding. Indicate the page number of the annual report where you found the answer(s) to each question. Additionally, show all relevant calculations in a table(s) in your Word document.
Throughout the eight weeks of this course, Intermediate Accounting II, you should develop responses to the following questions to complete your Portfolio Project:
Week 4
1) What kind of pension plan does Intel provide its employees?
2) What was Intel’s pension expense for 2012 and 2013?
3) What is the impact of Intel’s pension plans on its 2012 and 2013 consolidated balance sheets?
4) What information does Intel provide on the target allocation of its pension assets? How do the
allocations relate to the expected returns on these assets?
http://files.shareholder.com/downloads/INTC/3501642278x0xS50863-14-20/50863/filing.pdf
Explanation / Answer
Answer:1) Under applicable law for the U.S. Intel provides, Minimum Pension Plan and the U.S. postretirement medical benefits plan .Intel provides share based compensation plan for its employees. For U.S., pension benefit tax- qualified defined benefit pension plan and U.S Intel minimum pension plan are offered to their employees. Non U.S. employees, pension benefits are given through defined benefit pension plans (Intel Corporation, 2014).
Answer:2) Intel expensed $298 million for the qualified and non-qualified U.S. retirement contribution plans in 2013 ( $357 million in 2012 and $340 million in 2011).
The above details were extracted from the Page No. 83 of the Form 10K under the sub-category
“ Note 17: Retirement Benefit Plans ”
Answer:3) On the consolidated balance sheets, Intel’s pension plans on its 2012 and 2013 had significant impact as the tune of “Accrued Compensation and Benefits” for the year 2013 and 2012 are $3,123 Million and $2,972 Million.
The above details were extracted from the Page No. 52 of the Form 10K under the sub-category “ Consolidated Balance Sheets ”
Answer:4) The target allocation of the non-U.S. plan assets that Intel has control over is 80% equity securities and 20% fixed-income instruments. The average expected long-term rate of return for the non-U.S. plan assets is 5.7%
The above details were extracted from the Page No. 87 of the Form 10K under the sub-category “ Non-U.S. Plan Assets ”.
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