8-KRegulation FD

INTEL CORP 8-K Report, Regulation FD Disclosure (May 17, 2011)

Filed May 17, 2011For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on May 17, 2011, to disclose information presented at an investor meeting held on the same day. The presentation, delivered by the CFO, covered key financial performance metrics, segment performance, business opportunities, and capital return strategies including dividends and stock repurchases. This meeting provided an update to investors and analysts on the company's operational and financial health. The presentation included both GAAP and non-GAAP financial measures. Notably, the non-GAAP figures excluded significant charges related to the 2009 settlement with AMD ($1.25 billion) and the European Commission fine (€1.06 billion / approximately $1.45 billion). The company also presented non-GAAP measures that retroactively included share-based compensation charges. A specific non-GAAP metric, Return on Invested Capital (ROIC), was defined and highlighted as a key performance indicator for capital deployment effectiveness. Investors are advised to review both GAAP and non-GAAP measures, along with provided reconciliations.

Key Highlights

  • 1Intel held an investor meeting on May 17, 2011, presenting business and financial information.
  • 2The presentation covered financial performance, segment results, business opportunities, and capital return to stockholders.
  • 3Key financial metrics discussed included revenue, gross margin, spending, return on equity, and return on invested capital.
  • 4Non-GAAP financial measures were presented, excluding a $1.25 billion AMD settlement charge and a €1.06 billion EU fine.
  • 5Share-based compensation charges were also presented on a non-GAAP basis, reflecting historical fair value accounting.
  • 6Intel defined and emphasized Return on Invested Capital (ROIC) as a key metric for capital deployment efficiency.
  • 7Investors are encouraged to review both GAAP and non-GAAP financial measures and their reconciliations.

Frequently Asked Questions

The primary purpose of this 8-K filing was to provide information and disclosures made by Intel Corporation at a publicly webcast investor meeting held on May 17, 2011. This included details on financial performance, business operations, and capital return strategies.

Intel excluded a $1.25 billion charge from the fourth quarter of 2009 related to the settlement agreement with Advanced Micro Devices (AMD) and a charge of approximately $1.45 billion ( €1.06 billion) from the second quarter of 2009 resulting from a European Commission fine.

Intel defines ROIC as adjusted net operating profit after taxes divided by beginning invested capital. Management views ROIC as a crucial metric to provide greater visibility into how effectively the company deploys its capital and uses it as a high-level target to ensure overall performance is understood and acceptable.

No, the non-GAAP financial measures are not substitutes for, or superior to, financial measures calculated in accordance with GAAP. Investors are advised to carefully evaluate both GAAP and non-GAAP measures, along with the provided reconciliations, to gain a complete understanding of Intel's financial performance.