8-KEarnings & Results

INTEL CORP 8-K Report, Financial Results (Jan 14, 2011)

Filed January 14, 2011For Securities:INTC

Summary

Intel Corporation's (INTC) 8-K filing from January 14, 2011, reports on its financial results for the quarter ended December 25, 2010, and provides forward-looking statements for 2011 and Q1 2011. The company is highlighting its financial performance, including the use of non-GAAP measures. These non-GAAP figures exclude significant one-time charges from the prior year, specifically a $1.25 billion settlement with Advanced Micro Devices (AMD) and a €1.06 billion (approximately $1.45 billion) fine from the European Commission (EC), along with related tax impacts. Intel's management uses these adjusted figures to assess underlying business trends and for internal planning, believing it aids in period-to-period comparisons due to the substantial impact of these charges. The company provides this non-GAAP information to investors to facilitate a clearer understanding of its operational performance on a basis consistent with management's evaluation and for easier comparison with GAAP results.

Key Highlights

  • 1Intel released financial results for the quarter ended December 25, 2010, and provided forward-looking guidance for 2011 and Q1 2011.
  • 2The company utilized non-GAAP financial measures to present its results, excluding significant one-time charges.
  • 3Key exclusions from non-GAAP measures include a $1.25 billion settlement with AMD (4Q 2009) and a €1.06 billion (approx. $1.45 billion) European Commission fine (2Q 2009).
  • 4Associated tax impacts related to the AMD settlement were also excluded from non-GAAP calculations.
  • 5Management uses these non-GAAP measures to evaluate business performance, believing it enhances comparability and reflects underlying operational trends.
  • 6Intel provides non-GAAP information to investors for a more consistent assessment of performance alongside GAAP results.
  • 7The filing emphasizes that non-GAAP measures are supplementary and should not replace or be considered superior to GAAP measures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Intel's financial results for the fourth quarter of 2010 and to provide forward-looking statements for the upcoming quarters and the full year 2011. It also details the company's use of non-GAAP financial measures.

Intel is providing non-GAAP financial measures to offer investors a clearer view of its underlying business performance. These measures exclude significant, non-recurring charges from prior periods, such as the AMD settlement and the European Commission fine, which can distort period-to-period comparisons of operational results. Management uses these adjusted figures internally for planning and evaluation.

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

Investors should view the non-GAAP financial measures as supplementary information intended to aid in assessing the company's performance on a basis consistent with management's evaluation. However, these measures should not be considered a substitute for, or superior to, the financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). It is important to evaluate both GAAP and non-GAAP results and their reconciliations.