8-KEarnings & Results

INTEL CORP 8-K Report, Financial Results (Jan 13, 2011)

Filed January 13, 2011For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on January 13, 2011, reporting financial results for the quarter ended December 25, 2010, and providing forward-looking statements for 2011 and the first quarter of 2011. The filing includes both GAAP and non-GAAP financial measures. The non-GAAP measures are presented to exclude significant charges from prior periods, specifically a $1.25 billion settlement with Advanced Micro Devices (AMD) from Q4 2009 and a €1.06 billion (approximately $1.45 billion) fine from the European Commission (EC) in Q2 2009, along with related tax impacts. Management uses these non-GAAP figures to better assess underlying business trends and facilitate period-to-period comparisons, and Intel provides them to investors for easier comparability and assessment of performance on a basis consistent with management's evaluation.

Key Highlights

  • 1Intel reported financial results for the fourth quarter of 2010.
  • 2The filing includes forward-looking statements for the full year 2011 and the first quarter of 2011.
  • 3Intel is presenting both GAAP and non-GAAP financial measures.
  • 4Non-GAAP measures exclude a $1.25 billion AMD settlement charge from Q4 2009.
  • 5Non-GAAP measures also exclude a €1.06 billion (approx. $1.45 billion) European Commission fine from Q2 2009.
  • 6Associated tax impacts related to the AMD settlement are also excluded from non-GAAP measures.
  • 7Management uses these non-GAAP measures for assessing underlying business performance and comparability.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Intel Corporation's financial results for the quarter ended December 25, 2010, and to provide forward-looking financial guidance for 2011 and the first quarter of 2011. It also serves to disclose the use of non-GAAP financial measures.

Intel is providing non-GAAP financial measures to offer investors a clearer view of the company's underlying business performance by excluding significant, one-time charges from prior periods. These include a substantial settlement with AMD and a fine from the European Commission, which can distort period-over-period comparisons when included.

The non-GAAP financial measures presented by Intel exclude a $1.25 billion settlement charge incurred in the fourth quarter of 2009 with Advanced Micro Devices (AMD), and a €1.06 billion (approximately $1.45 billion) fine from the European Commission incurred in the second quarter of 2009. Related tax impacts from the AMD settlement are also excluded.

Investors should view the non-GAAP financial measures as a supplement to, not a replacement for, GAAP measures. They are intended to aid in assessing the company's performance on a basis consistent with how management evaluates the business, facilitating easier comparison of core operational trends. It is crucial for investors to review both GAAP and non-GAAP results and their reconciliations.