INTEL CORP — Interim / Quarterly Report 2010

Jan 14, 2010

8-K 1 a6143116.htm INTEL CORPORATION 8-K Copyright 2010 Business Wire, a Berkshire Hathaway company. All rights reserved www.businesswire.com

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report: January 14, 2010 (Date of earliest event reported) INTEL CORPORATION (Exact name of registrant as specified in its charter)

Delaware	000-06217	94-1672743
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

| 2200 Mission College Blvd.,
Santa Clara, California | 95054-1549 |
| --- | --- |
| (Address of principal executive
offices) | (Zip Code) |
| (408) 765-8080 | |
| (Registrant's telephone number,
including area code) | |

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))

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| Item 2.02 |
| --- |
| Attached hereto as Exhibit 99.1 and incorporated by reference herein
is financial information for Intel Corporation for the quarter ended
December 26, 2009 and forward-looking statements relating to 2010
and the first quarter of 2010 as presented in a press release of
January 14, 2010. The information in this report shall not be
treated as filed for purposes of the Securities Exchange Act of
1934, as amended. |
| In addition to disclosing financial results calculated in accordance
with United States (U.S.) generally accepted accounting principles
(GAAP), this earnings release contains non-GAAP financial measures
that exclude the charge incurred in the fourth quarter of 2009 as a
result of a settlement agreement with Advanced Micro Devices, Inc.
(AMD) in the amount of $1.25 billion, a charge incurred in the
second quarter of 2009 as a result of the European Commission (EC)
fine in the amount of €1.06 billion, or about $1.45 billion, and a
charge incurred in the fourth quarter of 2008 as a result of the
impairment of our investments in Clearwire Corp. in the amount of
$938 million. These non-GAAP measures also exclude the associated
impacts of the AMD settlement and the Clearwire impairments on our
tax provision. The EC fine did not impact the income tax provision
because it was not tax deductible. |
| The non-GAAP financial measures disclosed by the company should not
be considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP and reconciliations from these
results should be carefully evaluated. |
| Management uses operating income, net income, and earnings per share
excluding the EC fine, the AMD settlement, the impairment of our
investments in Clearwire and if applicable, related tax impacts of
these charges, to conduct and evaluate results of the business. We
believe that analyzing the trends of the underlying business is
aided by the removal of these charges due to the significant impact
they have on comparability. Specifically management excludes these
charges for purposes of period to period comparisons in our budget,
planning and evaluation processes. |
| The economic substance behind management's decision to use such
non-GAAP measures is that the charges substantially decrease
operating income, net income, and earnings per share for the
comparative periods presented and obfuscate comparative information
regarding typical operating expenses. The EC fine, AMD settlement
and impairment of our investments in Clearwire were unbudgeted
expenses. Management believes the non-GAAP financial measures are
appropriate for both its own assessment of, and to show the reader,
how our performance compares to other periods. The table below shows
the significant effect these charges have on comparability; |

(in millions)	Operating Income — Q4 2009	Q4 2008	2009	2008
GAAP	$ 2,497	$ 1,539	$ 5,711	$ 8,954
Non-GAAP	$ 3,747	$ 1,539	$ 8,408	$ 8,954

(in millions)	Net Income — Q4 2009	Q4 2008	2009	2008
GAAP	$ 2,282	$ 234	$ 4,369	$ 5,292
Non-GAAP	$ 3,094	$ 844	$ 6,628	$ 5,902

	Earnings Per Share — Q4 2009	Q4 2008	2009	2008
GAAP	$ 0.40	$ 0.04	$ 0.77	$ 0.92
Non-GAAP	$ 0.55	$ 0.15	$ 1.17	$ 1.03

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| A material limitation associated with the use of these measures as
compared to the related GAAP measures is that operating income, net
income and earnings per share excluding the EC fine, the AMD
settlement, and the impairment of our investments in Clearwire, and
tax impacts of these charges, do not include all of the costs which
are required to be recognized by GAAP, and thus if viewed in
isolation may provide less overall understanding of how the EC fine,
AMD settlement, and the impairment of our investments in Clearwire
affect the company’s financial results. In addition, these non-GAAP
measures do not exclude other income and expenses which may not be
part of our ongoing expectations of the business. Management
compensates for these limitations by continuing to provide operating
income, net income and earnings per share on a GAAP basis, as
prominently as the related non-GAAP measure, to ensure that readers
understand the amount of the charges and our GAAP results. |
| --- |
| The company discloses this non-GAAP information to enable investors
who wish to more easily assess the company’s performance on the same
basis applied by management and to ease comparison on both a GAAP
and non-GAAP basis to our current period results. |

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INTEL CORPORATION
		(Registrant)
Date: January 14, 2010	By:	/s/ Stacy J. Smith
		Stacy J. Smith
		Vice President and Chief Financial Officer

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