Intel Inc. - Week 6 Use the \"Intel Annual Report\" link included at the bottom

Question

Intel Inc. - Week 6

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 6
1) Were there changes in accounting policies reported by Intel during the two years covered by its income statements (2012–2013)? If so, describe the nature of the change and the year of change.
2) What types of estimates did Intel discuss in 2013?

http://files.shareholder.com/downloads/INTC/3501642278x0xS50863-14-20/50863/filing.pdf

Explanation / Answer

1) The compnay has not reported any accounting policy changes in FY 2012 and FY 2013 10-K reports filed woth SEC. There are no changes in the accounting policies.

2) Intel discusses following things in its 8-K filed on 16-Jan-2014 about its outlook

Refer page number 2.

Business Outlook
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after January 16 .

Full-Year 2014
  
•   Revenue: approximately flat.  
•   Gross margin percentage: 60 percent, plus or minus a few percentage points.
•   R&D plus MG&A spending: approximately $18.6 billion.
•   Amortization of acquisition-related intangibles: approximately $300 million.
•   Depreciation: approximately $7.4 billion.
•   Tax rate: approximately 27 percent .
•   Full-year capital spending: $11.0 billion , plus or minus $500 million

Q1 2014
  
•   Revenue: $12.8 billion , plus or minus $500 million.
•   Gross margin percentage: 59 percent , plus or minus a couple of percentage points.
•   R&D plus MG&A spending: approximately $4.8 billion.
•   Restructuring and asset impairment charges: approximately $200 million
•   Amortization of acquisition-related intangibles: approximately $70 million.
•   Impact of equity investments and interest and other: approximately $25 million.
•   Depreciation: approximately $1.7 billion.

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