Portfolio Project

Intel Inc.

Refer to the Intel Inc. 2012 financial statements and the accompanying notes to answer the

following questions. The 2012 financial statements of Intel can be accessed at:


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?
4) What is the par or stated value of Intel’s ordinary shares?
5) What percentage of Intel’s authorized ordinary shares was issued at Dec 29, 2012?
6) How many ordinary shares were outstanding at Dec 29, 2012, and Dec 31, 2011?
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?
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
3) What other equity-based compensation plans does Intel have?
4) What investments does Intel report in 2012?
6) How does Intel determine fair value?
7) How does Intel use derivative financial instruments?
Module 3
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?
3) How much of Intel’s 2012 total provision for income taxes was current tax expense, and how much was deferred tax expense?
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?
2) What was Intel’s pension expense for 2011 and 2012?
3) What is the impact of Intel’s pension plans on its 2011 and 2012 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?
Module 5
1) What types of leases are used by Intel?
2) What amount of operating leases was reported by Intel for various years?
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.
2) What types of estimates did Intel discuss in 2012?
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?
2) What was the most significant item in the cash flows used for investing activities section in 2012?
3) What was the most significant item in the cash flows used for financing activities section in 2012?
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?
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?
Module 8
1) What specific items does Intel discuss in its Note 1—Summary of Significant Accounting Policies?
(List the headings only.)
2) For what segments did Intel report segmented information? Which segment is the largest? Who is Intel’s largest customer?