2014 Q4 Form 10-Q Financial Statement

#000005086314000069 Filed on October 29, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q3
Revenue $14.72B $14.55B $13.48B
YoY Change 6.41% 7.94% 0.19%
Cost Of Revenue $5.100B $5.096B $5.069B
YoY Change -3.1% 0.53% 2.57%
Gross Profit $9.621B $9.458B $8.414B
YoY Change 12.25% 12.41% -1.19%
Gross Profit Margin 65.36% 64.99% 62.4%
Selling, General & Admin $2.049B $1.979B $1.970B
YoY Change 2.14% 0.46% -1.25%
% of Gross Profit 21.3% 20.92% 23.41%
Research & Development $2.990B $2.842B $2.742B
YoY Change 5.8% 3.65% 5.26%
% of Gross Profit 31.08% 30.05% 32.59%
Depreciation & Amortization $2.174B $2.198B $2.021B
YoY Change 11.15% 8.76% 6.76%
% of Gross Profit 22.6% 23.24% 24.02%
Operating Expenses $5.111B $4.918B $4.910B
YoY Change 4.18% 0.16% 5.05%
Operating Profit $4.510B $4.540B $3.504B
YoY Change 23.06% 29.57% -8.77%
Interest Expense $213.0M $53.00M $56.00M
YoY Change 2030.0% -5.36% 300.0%
% of Operating Profit 4.72% 1.17% 1.6%
Other Income/Expense, Net -$7.000M -$7.000M $0.00
YoY Change -12.5% -100.0%
Pretax Income $4.659B $4.550B $3.924B
YoY Change 31.2% 15.95% 0.08%
Income Tax $998.0M $1.233B $974.0M
% Of Pretax Income 21.42% 27.1% 24.82%
Net Earnings $3.661B $3.317B $2.950B
YoY Change 39.47% 12.44% -0.74%
Net Earnings / Revenue 24.87% 22.79% 21.88%
Basic Earnings Per Share $0.68 $0.59
Diluted Earnings Per Share $741.2K $0.66 $0.58
COMMON SHARES
Basic Shares Outstanding 4.835B shares 4.880B shares 4.981B shares
Diluted Shares Outstanding 5.045B shares 5.100B shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.991B $6.594B $11.37B
YoY Change -57.14% -42.02% 89.46%
Cash & Equivalents $2.561B $3.143B $4.881B
Short-Term Investments $2.430B $3.451B $6.492B
Other Short-Term Assets $3.018B $2.479B $1.517B
YoY Change 83.02% 63.41% -8.56%
Inventory $4.273B $4.115B $4.533B
Prepaid Expenses
Receivables $4.427B $3.647B $3.719B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $27.73B $27.51B $31.35B
YoY Change -13.57% -12.25% 36.22%
LONG-TERM ASSETS
Property, Plant & Equipment $33.24B $33.14B $30.35B
YoY Change 5.76% 9.19% 11.74%
Goodwill $10.86B $10.56B $10.47B
YoY Change 3.31% 0.85% 8.77%
Intangibles $4.446B $4.379B $5.434B
YoY Change -13.67% -19.41% -12.65%
Long-Term Investments $1.446B $1.491B $985.0M
YoY Change 39.31% 51.37% -2.48%
Other Assets $6.505B $6.370B $4.857B
YoY Change 18.51% 31.15% 20.43%
Total Long-Term Assets $64.17B $63.11B $59.20B
YoY Change 6.46% 6.6% 15.12%
TOTAL ASSETS
Total Short-Term Assets $27.73B $27.51B $31.35B
Total Long-Term Assets $64.17B $63.11B $59.20B
Total Assets $91.90B $90.62B $90.55B
YoY Change -0.5% 0.07% 21.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.748B $2.597B $2.996B
YoY Change -7.44% -13.32% -6.02%
Accrued Expenses $8.899B $8.631B $8.031B
YoY Change 13.36% 7.47% 18.89%
Deferred Revenue
YoY Change
Short-Term Debt $508.0M $0.00 $0.00
YoY Change
Long-Term Debt Due $1.088B $1.085B $350.0M
YoY Change 210.0% 525.0%
Total Short-Term Liabilities $16.01B $14.90B $13.88B
YoY Change 18.01% 7.42% 16.08%
LONG-TERM LIABILITIES
Long-Term Debt $12.06B $12.10B $13.16B
YoY Change -8.4% -8.01% 85.31%
Other Long-Term Liabilities $3.278B $3.070B $3.683B
YoY Change 10.3% -16.64% 14.56%
Total Long-Term Liabilities $15.34B $15.17B $16.84B
YoY Change -4.96% -9.9% 63.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $16.01B $14.90B $13.88B
Total Long-Term Liabilities $15.34B $15.17B $16.84B
Total Liabilities $31.35B $30.08B $30.72B
YoY Change 5.53% -2.08% 37.93%
SHAREHOLDERS EQUITY
Retained Earnings $33.42B $33.23B $33.29B
YoY Change -5.8% -0.17% 9.18%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $55.87B $56.07B $55.45B
YoY Change
Total Liabilities & Shareholders Equity $91.90B $90.62B $90.55B
YoY Change -0.5% 0.07% 21.64%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income $3.661B $3.317B $2.950B
YoY Change 39.47% 12.44% -0.74%
Depreciation, Depletion And Amortization $2.174B $2.198B $2.021B
YoY Change 11.15% 8.76% 6.76%
Cash From Operating Activities $5.771B $5.693B $5.731B
YoY Change -4.42% -0.66% 11.35%
INVESTING ACTIVITIES
Capital Expenditures -$2.235B -$2.445B -$2.868B
YoY Change -24.19% -14.75% -14.74%
Acquisitions
YoY Change
Other Investing Activities $331.0M $1.459B -$455.0M
YoY Change -134.02% -420.66% -69.42%
Cash From Investing Activities -$1.904B -$986.0M -$3.323B
YoY Change -51.44% -70.33% -31.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.439B -4.607B -1.306B
YoY Change 235.78% 252.76% -34.83%
NET CHANGE
Cash From Operating Activities 5.771B 5.693B 5.731B
Cash From Investing Activities -1.904B -986.0M -3.323B
Cash From Financing Activities -4.439B -4.607B -1.306B
Net Change In Cash -572.0M 100.0M 1.102B
YoY Change -171.95% -90.93% -164.48%
FREE CASH FLOW
Cash From Operating Activities $5.771B $5.693B $5.731B
Capital Expenditures -$2.235B -$2.445B -$2.868B
Free Cash Flow $8.006B $8.138B $8.599B
YoY Change -10.91% -5.36% 1.03%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;color:#000000;font-weight:bold;text-decoration:none;">Note 22: Contingencies</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Legal Proceedings</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We are a party to various legal proceedings, including those noted in this section. Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings and related government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include substantial monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices, or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends. We might also conclude that settling one or more such matters is in the best interests of our stockholders, employees, and customers, and any such settlement could include substantial payments. Except as specifically described below, we have not concluded that settlement of any of the legal proceedings noted in this section is appropriate at this time.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">A number of proceedings generally have challenged and continue to challenge certain of our competitive practices. The allegations in these proceedings vary and are described in more detail in the following paragraphs. In general, they contend that we improperly conditioned price rebates and other discounts on our microprocessors on exclusive or near-exclusive dealing by some of our customers; and they allege that our software compiler business unfairly preferred Intel</font><font style="font-family:Arial;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:6pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">microprocessors over competing microprocessors and that, through the use of our compilers and other means, we have caused the dissemination of inaccurate and misleading benchmark results concerning our microprocessors. Based on the procedural posture of the various remaining competition matters, which we describe in subsequent paragraphs, our investment of resources to explain and defend our position has declined as compared to the period 2005-2011. Nonetheless, certain of the matters remain active, and these challenges could continue for a number of years, potentially requiring us to invest additional resources. We believe that we compete lawfully and that our marketing, business, intellectual property, and other challenged practices benefit our customers and our stockholders, and we will continue to conduct a vigorous defense in the remaining proceedings.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Government Competition Matters and Related Consumer Class&#160;Actions</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In 2001, the European Commission (EC) commenced an investigation regarding claims by Advanced Micro Devices, Inc. (AMD) that we used unfair business practices to persuade customers to buy our microprocessors. We received numerous requests for information and documents from the EC and we responded to each of those requests. The EC issued a Statement of Objections in July 2007 and held a hearing on that Statement in March 2008. The EC issued a Supplemental Statement of Objections in July 2008.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2009, the EC issued a decision finding that we had violated Article 82 of the EC Treaty and Article 54 of the European Economic Area Agreement. In general, the EC found that we violated Article 82 (later renumbered as Article 102 by a new treaty) by offering alleged </font><font style="font-family:inherit;font-size:10pt;">&#8220;</font><font style="font-family:Arial;font-size:10pt;">conditional rebates and payments</font><font style="font-family:inherit;font-size:10pt;">&#8221;</font><font style="font-family:Arial;font-size:10pt;"> that required our customers to purchase all or most of their x86 microprocessors from us. The EC also found that we violated Article 82 by making alleged </font><font style="font-family:inherit;font-size:10pt;">&#8220;</font><font style="font-family:Arial;font-size:10pt;">payments to prevent sales of specific rival products.</font><font style="font-family:inherit;font-size:10pt;">&#8221;</font><font style="font-family:Arial;font-size:10pt;"> The EC imposed a fine in the amount of</font><font style="font-family:inherit;font-size:10pt;">&#160;</font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">&#8364;1.06 billion</font><font style="font-family:Arial;font-size:10pt;"> (</font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">$1.447 billion</font><font style="font-family:Arial;font-size:10pt;"> as of May 2009), which we subsequently paid during the third quarter of 2009, and ordered us to </font><font style="font-family:inherit;font-size:10pt;">&#8220;</font><font style="font-family:Arial;font-size:10pt;">immediately bring to an end the infringement referred to in</font><font style="font-family:inherit;font-size:10pt;">&#8221;</font><font style="font-family:Arial;font-size:10pt;"> the EC decision. The EC decision contained no specific direction on whether or how we should modify our business practices. Instead, the decision stated that we should </font><font style="font-family:inherit;font-size:10pt;">&#8220;</font><font style="font-family:Arial;font-size:10pt;">cease and desist</font><font style="font-family:inherit;font-size:10pt;">&#8221;</font><font style="font-family:Arial;font-size:10pt;"> from further conduct that, in the EC</font><font style="font-family:inherit;font-size:10pt;">'</font><font style="font-family:Arial;font-size:10pt;">s opinion, would violate applicable law. We took steps, which are subject to the EC</font><font style="font-family:inherit;font-size:10pt;">'</font><font style="font-family:Arial;font-size:10pt;">s ongoing review, to comply with that decision pending appeal. We had discussions with the EC to better understand the decision and to explain changes to our business practices. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We appealed the EC decision to the Court of First Instance (which has been renamed the General Court) in July 2009. The hearing of our appeal took place in July 2012. In June 2014, the General Court rejected our appeal in its entirety. In August 2014, we filed an appeal with the European Court of Justice.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">At least 82 separate class-action lawsuits have been filed in the U.S. District Courts for the Northern District of California, Southern District of California, District of Idaho, District of Nebraska, District of New Mexico, District of Maine, and District of Delaware, as well as in various California, Kansas, and Tennessee state courts. These actions generally repeat the allegations made in a now-settled lawsuit filed against us by AMD in June 2005 in the U.S. District Court for the District of Delaware (AMD litigation). Like the AMD litigation, these class-action lawsuits allege that we engaged in various actions in violation of the Sherman Act and other laws by, among other things: providing discounts and rebates to our manufacturer and distributor customers conditioned on exclusive or near-exclusive dealing that allegedly unfairly interfered with AMD</font><font style="font-family:inherit;font-size:10pt;">'</font><font style="font-family:Arial;font-size:10pt;">s ability to sell its microprocessors; interfering with certain AMD product launches; and interfering with AMD</font><font style="font-family:inherit;font-size:10pt;">'</font><font style="font-family:Arial;font-size:10pt;">s participation in certain industry standards-setting groups. The class actions allege various consumer injuries, including that consumers in various states have been injured by paying higher prices for computers containing our microprocessors. We dispute these class-action claims and intend to defend the lawsuits vigorously.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">All of the federal and state class actions other than the California class actions were transferred by the Multidistrict Litigation Panel to the U.S. District Court in Delaware for all pre-trial proceedings and discovery (MDL proceedings). The Delaware district court appointed a Special Master to address issues in the MDL proceedings, as assigned by the court. In January 2010, the plaintiffs in the Delaware action filed a motion for sanctions for our alleged failure to preserve evidence. This motion largely copies a motion previously filed by AMD in the AMD litigation, which has settled. The plaintiffs in the MDL proceedings also moved for certification of a class of members who purchased certain personal computers containing products sold by us. In July 2010, the Special Master issued a Report and Recommendation (Report) denying the motion to certify a class. The MDL plaintiffs filed objections to the Special Master</font><font style="font-family:inherit;font-size:10pt;">'</font><font style="font-family:Arial;font-size:10pt;">s Report, and a hearing on those objections was held before the district court in July 2013. In July 2014, the district court affirmed the Special Master's ruling and issued an order denying the MDL plaintiffs' motion for class certification. In August 2014, plaintiffs filed a request for interlocutory appeal of the district court's decision with the U.S. Court of Appeals for the Third Circuit.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">All California class actions have been consolidated in the Superior Court of California in Santa Clara County. The plaintiffs in the California actions have moved for class certification, which we are in the process of opposing. At our request, the court in the California actions agreed to delay ruling on this motion until after the Delaware district court ruled on the similar motion in the MDL proceedings. Given the procedural posture and the nature of these cases, including the fact that the Delaware district court's decision has been appealed, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from these matters. </font></div><div style="line-height:120%;padding-top:18px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">In re High Tech Employee Antitrust Litigation </font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Between May and July 2011, former employees of Intel, Adobe Systems Incorporated, Apple Inc., Google Inc., Intuit Inc., Lucasfilm Ltd., and Pixar filed antitrust class action lawsuits in the California Superior Courts alleging that these companies had entered into a conspiracy to suppress the compensation of their employees. The lawsuits were removed to the United States District Court for the Northern District of California, and in September 2011 the plaintiffs filed a consolidated amended complaint, captioned </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">In re High Tech Employee Antitrust Litigation</font><font style="font-family:Arial;font-size:10pt;">. The plaintiffs&#8217; allegations reference the 2009 and 2010 investigation by the Department of Justice (DOJ) into employment practices in the technology industry, as well as the DOJ&#8217;s complaints and subsequent stipulated final judgments with the seven companies named as defendants in the lawsuits. The plaintiffs allege that the defendants entered into certain unlawful agreements not to cold call employees of particular other defendants and that there was an overarching conspiracy among the defendants. Plaintiffs assert one such agreement specific to Intel, namely that Intel and Google entered into an agreement starting in 2005, not to cold call each other's employees. Plaintiffs</font><font style="font-family:Arial;font-size:10pt;font-style:italic;"> </font><font style="font-family:Arial;font-size:10pt;">assert claims under Section 1 of the Sherman Antitrust Act and Section 4 of the Clayton Antitrust Act and seek a declaration that the defendants</font><font style="font-family:inherit;font-size:10pt;">&#8217;</font><font style="font-family:Arial;font-size:10pt;"> alleged actions violated the antitrust laws, damages trebled as provided for by law under the Sherman Act or Clayton Act, restitution and disgorgement, and attorneys</font><font style="font-family:inherit;font-size:10pt;">&#8217;</font><font style="font-family:Arial;font-size:10pt;"> fees and costs. </font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In October 2013, the district court certified a class consisting of approximately </font><font style="font-family:Arial;font-size:10pt;color:#000000;font-style:normal;font-weight:normal;text-decoration:none;">65,000</font><font style="font-family:Arial;font-size:10pt;"> current or former employees of the seven defendants and set the matter for trial in late May 2014. The so-called &#8220;technical class&#8221; consists of a group of current and former technical, creative, and research and development employees at each of the defendants. In January 2014, Intel filed a motion for summary judgment, which the court denied in March 2014.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In April 2014, Intel, Adobe, Apple, and Google reached an agreement with plaintiffs to settle this lawsuit, which is subject to court approval. In August 2014, the district court denied preliminary approval of the settlement. In September 2014, defendants filed a petition for writ of mandamus asking the U.S. Court of Appeals for the Ninth Circuit to reverse the district court&#8217;s decision. The Ninth Circuit has ordered briefing and will schedule a hearing date on the writ petition. We continue to dispute the plaintiffs&#8217; claims, but agreed to settle this lawsuit to avoid the uncertainties, expenses, and diversion of resources from continued litigation. Our operating expenses for the first quarter of 2014 reflect an accrual for this proceeding and we believe reasonably possible losses in excess of the accrual amount are not material to our financial statements.</font></div><div style="line-height:120%;padding-top:18px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">In re Intel Corporation Shareholder Derivative Litigation</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In March 2014, the Police Retirement System of St. Louis filed a stockholder derivative action in the Superior Court of California in Santa Clara County against the members of our Board of Directors, certain former Board members, and a current officer. The complaint alleges that the defendants breached their duties to the company by participating in, or allowing, alleged antitrust violations, as described in the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">In re High Tech Employee Antitrust</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Litigation</font><font style="font-family:Arial;font-size:10pt;">. In March 2014, a second plaintiff, Barbara Templeton, filed a substantially similar derivative suit in the same court. In May 2014, a third shareholder, Robert Achermann, filed a substantially similar derivative action in the same court. The court consolidated the three actions into one, which is captioned </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">In re Intel Corporation Shareholder Derivative Litigation.</font><font style="font-family:Arial;font-size:10pt;"> Plaintiffs filed a consolidated complaint in July 2014. In August 2014, we moved to dismiss the consolidated complaint. The court granted our motion in September 2014, but granted plaintiffs leave to amend their complaint.</font></div><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Lehman Brothers Holdings Inc. and Lehman Brothers OTC Derivatives Inc. v. Intel</font></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2013, Lehman Brothers OTC Derivatives Inc. (LOTC) and Lehman Brothers Holdings Inc. 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Under the terms of the contract, LOTC was obligated to deliver approximately </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">50 million</font><font style="font-family:Arial;font-size:10pt;"> shares of our common stock to us on September 29, 2008. LOTC failed to deliver any Intel common stock or cash, and we exercised our right of set-off against the&#160;</font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">$1.0 billion</font><font style="font-family:Arial;font-size:10pt;"> collateral. LOTC and LBHI acknowledge in their complaint that we were entitled to set off our losses against the collateral, but they assert that we withheld collateral in excess of our losses that should have been returned to LOTC. The complaint asserts a claim for breach of contract, a claim for &#8220;turnover&#8221; under section 542(a) of the Bankruptcy Code, and a claim for violation of the automatic stay under section 362(a)(3) of the Bankruptcy Code. The complaint does not expressly quantify the amount of damages claimed but does assert multiple theories of damages that impliedly seek up to </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">$312 million</font><font style="font-family:Arial;font-size:10pt;"> of alleged excess collateral, plus interest based on LOTC's claimed cost of borrowing. In June 2013, we filed a motion to dismiss plaintiffs' bankruptcy claims and for a determination that the breach of contract claim is &#8220;non-core&#8221; under the Bankruptcy Code. The bankruptcy court granted our motion in its entirety in December 2013. In May 2014, the United States District Court for the Southern District of New York denied our request that it withdraw its reference of plaintiff's adversary complaint to the bankruptcy court. Given the procedural posture and the nature of this case, including that discovery is still in process, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from this matter. We believe that we acted in a manner consistent with our contractual rights, and we intend to defend against any claim to the contrary.</font></div><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">McAfee, Inc. Shareholder Litigation</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">On August 19, 2010, we announced that we had agreed to acquire all of the common stock of McAfee, Inc. 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In June 2012, the plaintiffs&#8217; damages expert asserted that the value of a McAfee share for the purposes of assessing damages should be </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">$62.08</font><font style="font-family:Arial;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In January 2012, the court certified the action as a class action, appointed the Central Pension Laborers&#8217; Fund to act as the class representative, and scheduled trial to begin in January 2013. In March 2012, defendants filed a petition with the California Court of Appeal for a writ of mandate to reverse the class certification order; the petition was denied in June 2012. In March 2012, at defendants&#8217; request, the court held that plaintiffs were not entitled to a jury trial, and ordered a bench trial. In April 2012, plaintiffs filed a petition with the California Court of Appeal for a writ of mandate to reverse that order, which the court of appeal denied in July 2012. In August 2012, defendants filed a motion for summary judgment. The trial court granted that motion in November 2012, and entered final judgment in the case in February 2013. In April 2013, plaintiffs filed a notice of appeal. Because the resolution of the appeal may materially impact the scope and nature of the proceeding, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from this matter. We dispute the class-action claims and intend to continue to defend the lawsuit vigorously.</font></div><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">X2Y Attenuators, LLC v. Intel et al</font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In May 2011, X2Y Attenuators, LLC (X2Y) filed a patent infringement lawsuit in the U.S. District Court for the Western District of Pennsylvania and a complaint with the U.S. International Trade Commission (ITC) pursuant to Section 337 of the Tariff Act of 1930 against us and two of our customers, Apple and Hewlett-Packard Company, alleging infringement of five patents. X2Y subsequently added a sixth patent to both actions. The district court action was stayed pending resolution of the ITC proceeding. X2Y alleged that at least Intel</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">Core&#8482;</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">and Intel</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">Xeon</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">processor families infringe the asserted patents. X2Y also requested that the ITC issue permanent exclusion and cease-and-desist orders to, among other things, prohibit us from importing these microprocessors and Apple and Hewlett-Packard Company products that incorporate these microprocessors into the United States. In the stayed district court action, X2Y seeks unspecified damages, including enhanced damages for alleged willful infringement, and injunctive relief. </font></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In June 2012, the Administrative Law Judge issued an initial determination granting X2Y&#8217;s motion to partially terminate the ITC investigation with respect to three of the asserted patents. The Administrative Law Judge held a hearing on the remaining three patents in August 2012 and issued an initial determination in December 2012. In the initial determination, the Administrative Law Judge found that Intel, Apple, and Hewlett-Packard Company have not violated Section 337 of the Tariff Act of 1930 because they have not infringed any of the asserted claims of the three patents, and ruled that the asserted claims of two of the patents were invalid. In December 2012, the parties filed petitions for review of the initial determination by the ITC. In February 2013, the ITC determined to review in part the initial determination. On review, the ITC determined to terminate the investigation with a finding of no violation. In April 2013, X2Y filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit. In July 2014, the Federal Circuit affirmed the ITC's finding that Intel's microprocessors did not infringe the X2Y patents. In September 2014, X2Y filed a petition for en banc review, which was denied by the Federal Circuit. Given the procedural posture and nature of the cases, including the fact that discovery regarding X2Y&#8217;s claimed damages has not commenced in the stayed district court action, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from these matters. We dispute the claims and intend to defend against X2Y's claims vigorously.</font></div></div>
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CY2013Q4 intc Derivative Asset Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetCollateralObligationToReturnCashOrNonCash
3000000 USD
CY2014Q3 intc Derivative Asset Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetCollateralObligationToReturnCashOrNonCash
54000000 USD
CY2013Q4 intc Derivative Asset Securities Purchased Under Agreements To Resell Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellCollateralObligationToReturnCashOrNonCash
800000000 USD
CY2014Q3 intc Derivative Asset Securities Purchased Under Agreements To Resell Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellCollateralObligationToReturnCashOrNonCash
715000000 USD
CY2014Q3 intc Deferred Income From Software And Services Operating Segments
DeferredIncomeFromSoftwareAndServicesOperatingSegments
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CY2013Q4 intc Deferred Income From Software And Services Operating Segments
DeferredIncomeFromSoftwareAndServicesOperatingSegments
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CY2013Q4 intc Deferred Income On Shipments To Distributors
DeferredIncomeOnShipmentsToDistributors
852000000 USD
CY2014Q3 intc Deferred Income On Shipments To Distributors
DeferredIncomeOnShipmentsToDistributors
992000000 USD
CY2013Q4 intc Derivative Asset Collateral Collateral Obligation To Reclaim Cash Or Non Cash
DerivativeAssetCollateralCollateralObligationToReclaimCashOrNonCash
32000000 USD
CY2013Q4 intc Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Amount Not Offset Against Collateral
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellSecuritiesBorrowedAmountNotOffsetAgainstCollateral
1125000000 USD
CY2014Q3 intc Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Amount Not Offset Against Collateral
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellSecuritiesBorrowedAmountNotOffsetAgainstCollateral
1030000000 USD
CY2013Q4 intc Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellSecuritiesBorrowedCollateralObligationToReturnCashOrNonCash
803000000 USD
CY2014Q3 intc Derivative Asset Securities Purchased Under Agreements To Resell Securities Borrowed Collateral Obligation To Return Cash Or Non Cash
DerivativeAssetSecuritiesPurchasedUnderAgreementsToResellSecuritiesBorrowedCollateralObligationToReturnCashOrNonCash
769000000 USD
CY2013Q4 intc Derivative Liability Securities Sold Under Agreements To Resell Securities Loaned Amount Not Offset Against Collateral
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401000000 USD
CY2014Q3 intc Derivative Liability Securities Sold Under Agreements To Resell Securities Loaned Amount Not Offset Against Collateral
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328000000 USD
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32000000 USD
CY2014Q3 intc Derivative Liability Securities Sold Under Agreements To Resell Securities Loaned Collateral Right To Reclaim Cash Or Non Cash
DerivativeLiabilitySecuritiesSoldUnderAgreementsToResellSecuritiesLoanedCollateralRightToReclaimCashOrNonCash
88000000 USD
intc Equity Investment Other Than Temporary Impairment
EquityInvestmentOtherThanTemporaryImpairment
108000000 USD
CY2014Q3 intc Equity Investment Other Than Temporary Impairment
EquityInvestmentOtherThanTemporaryImpairment
33000000 USD
CY2013Q3 intc Equity Investment Other Than Temporary Impairment
EquityInvestmentOtherThanTemporaryImpairment
33000000 USD
CY2013Q3 intc Gains Losses On Equity Investments Net
GainsLossesOnEquityInvestmentsNet
452000000 USD
intc Gains Losses On Equity Investments Net
GainsLossesOnEquityInvestmentsNet
437000000 USD
intc Gains Losses On Equity Investments Net
GainsLossesOnEquityInvestmentsNet
178000000 USD
intc Goodwill Translation Adjustments And Other
GoodwillTranslationAdjustmentsAndOther
-126000000 USD
CY2014Q3 intc Intangible Assets Gross
IntangibleAssetsGross
932000000 USD
CY2013Q4 intc Intangible Assets Gross
IntangibleAssetsGross
847000000 USD
CY2013Q3 intc Interest And Other Net
InterestAndOtherNet
-32000000 USD
intc Interest And Other Net
InterestAndOtherNet
70000000 USD
intc Interest And Other Net
InterestAndOtherNet
-119000000 USD
CY2014Q3 intc Interest And Other Net
InterestAndOtherNet
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intc Investments In Non Marketable Equity Investments
InvestmentsInNonMarketableEquityInvestments
1330000000 USD
intc Investments In Non Marketable Equity Investments
InvestmentsInNonMarketableEquityInvestments
258000000 USD
intc Maximum Borrowings Commercial Paper Program
MaximumBorrowingsCommercialPaperProgram
300000000 USD
intc Maximum Borrowings Commercial Paper Program
MaximumBorrowingsCommercialPaperProgram
2100000000 USD
intc Net Income Available To Common Stockholders
NetIncomeAvailableToCommonStockholders
8043000000 USD
CY2013Q3 intc Net Income Available To Common Stockholders
NetIncomeAvailableToCommonStockholders
2950000000 USD
intc Net Income Available To Common Stockholders
NetIncomeAvailableToCommonStockholders
6995000000 USD
CY2014Q3 intc Net Income Available To Common Stockholders
NetIncomeAvailableToCommonStockholders
3317000000 USD
intc Non Cash Gains Losses On Equity Investments Net
NonCashGainsLossesOnEquityInvestmentsNet
124000000 USD
intc Non Cash Gains Losses On Equity Investments Net
NonCashGainsLossesOnEquityInvestmentsNet
391000000 USD
CY2013Q4 intc Non Current Deferred Income From Software And Services Operating Segments
NonCurrentDeferredIncomeFromSoftwareAndServicesOperatingSegments
506000000 USD
CY2014Q3 intc Non Current Deferred Income From Software And Services Operating Segments
NonCurrentDeferredIncomeFromSoftwareAndServicesOperatingSegments
452000000 USD
intc Origination Of Loans Receivable
OriginationOfLoansReceivable
0 USD
intc Origination Of Loans Receivable
OriginationOfLoansReceivable
100000000 USD
CY2013Q3 intc Other Comprehensive Income Change In Actuarial Valuation Net Of Tax
OtherComprehensiveIncomeChangeInActuarialValuationNetOfTax
31000000 USD
CY2014Q3 intc Other Comprehensive Income Change In Prior Service Cost Net Of Tax
OtherComprehensiveIncomeChangeInPriorServiceCostNetOfTax
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CY2013Q3 intc Other Comprehensive Income Loss Available For Sale Securities Adjustment Including Other Than Temporary Impairments Net Of Tax
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769000000 USD
intc Other Comprehensive Income Loss Available For Sale Securities Adjustment Including Other Than Temporary Impairments Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentIncludingOtherThanTemporaryImpairmentsNetOfTax
217000000 USD
intc Restructuring Reserve Additional Accruals
RestructuringReserveAdditionalAccruals
222000000 USD
CY2014Q3 intc Reverse Repurchase Agreements
ReverseRepurchaseAgreements
718000000 USD
CY2013Q4 intc Reverse Repurchase Agreements
ReverseRepurchaseAgreements
800000000 USD
intc Other Comprehensive Income Change In Prior Service Cost Net Of Tax
OtherComprehensiveIncomeChangeInPriorServiceCostNetOfTax
4000000 USD
CY2014Q3 intc Other Comprehensive Income Change In Actuarial Valuation Net Of Tax
OtherComprehensiveIncomeChangeInActuarialValuationNetOfTax
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intc Other Comprehensive Income Change In Actuarial Valuation Net Of Tax
OtherComprehensiveIncomeChangeInActuarialValuationNetOfTax
101000000 USD
intc Other Comprehensive Income Change In Actuarial Valuation Net Of Tax
OtherComprehensiveIncomeChangeInActuarialValuationNetOfTax
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intc Other Comprehensive Income Change In Deferred Tax Asset Valuation Allowance Net Of Tax Including Reclassification Adjustments
OtherComprehensiveIncomeChangeInDeferredTaxAssetValuationAllowanceNetOfTaxIncludingReclassificationAdjustments
-20000000 USD
CY2013Q3 intc Other Comprehensive Income Change In Deferred Tax Asset Valuation Allowance Net Of Tax Including Reclassification Adjustments
OtherComprehensiveIncomeChangeInDeferredTaxAssetValuationAllowanceNetOfTaxIncludingReclassificationAdjustments
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intc Other Comprehensive Income Change In Deferred Tax Asset Valuation Allowance Net Of Tax Including Reclassification Adjustments
OtherComprehensiveIncomeChangeInDeferredTaxAssetValuationAllowanceNetOfTaxIncludingReclassificationAdjustments
-30000000 USD
CY2014Q3 intc Other Comprehensive Income Change In Deferred Tax Asset Valuation Allowance Net Of Tax Including Reclassification Adjustments
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intc Other Comprehensive Income Change In Prior Service Cost Net Of Tax
OtherComprehensiveIncomeChangeInPriorServiceCostNetOfTax
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CY2013Q3 intc Other Comprehensive Income Change In Prior Service Cost Net Of Tax
OtherComprehensiveIncomeChangeInPriorServiceCostNetOfTax
2000000 USD
CY2014Q3 intc Other Comprehensive Income Loss Available For Sale Securities Adjustment Including Other Than Temporary Impairments Net Of Tax
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303000000 USD
intc Other Comprehensive Income Loss Available For Sale Securities Adjustment Including Other Than Temporary Impairments Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentIncludingOtherThanTemporaryImpairmentsNetOfTax
1376000000 USD
intc Other Net Equity Investments
OtherNetEquityInvestments
71000000 USD
intc Other Net Equity Investments
OtherNetEquityInvestments
127000000 USD
CY2013Q3 intc Other Net Equity Investments
OtherNetEquityInvestments
26000000 USD
CY2014Q3 intc Other Net Equity Investments
OtherNetEquityInvestments
84000000 USD
CY2014Q3 intc Other Net Interest And Other
OtherNetInterestAndOther
-7000000 USD
intc Other Net Interest And Other
OtherNetInterestAndOther
-3000000 USD
CY2013Q3 intc Other Net Interest And Other
OtherNetInterestAndOther
0 USD
intc Other Net Interest And Other
OtherNetInterestAndOther
101000000 USD
CY2013Q4 intc Prepayments For Property Plant And Equipment
PrepaymentsForPropertyPlantAndEquipment
521000000 USD
CY2014Q3 intc Prepayments For Property Plant And Equipment
PrepaymentsForPropertyPlantAndEquipment
519000000 USD
CY2013Q4 intc Securities Purchased Under Agreements To Resell Amount Not Offset Against Collateral
SecuritiesPurchasedUnderAgreementsToResellAmountNotOffsetAgainstCollateral
800000000 USD
CY2014Q3 intc Securities Purchased Under Agreements To Resell Amount Not Offset Against Collateral
SecuritiesPurchasedUnderAgreementsToResellAmountNotOffsetAgainstCollateral
718000000 USD
CY2013Q4 intc Total Cash And Investments
TotalCashAndInvestments
31561000000 USD
CY2014Q3 intc Total Cash And Investments
TotalCashAndInvestments
29081000000 USD
CY2014Q3 intc Total Debt
TotalDebt
13188000000 USD
CY2013Q4 intc Total Debt
TotalDebt
13165000000 USD
CY2014Q3 intc Total Deferred Income
TotalDeferredIncome
2641000000 USD
CY2013Q4 intc Total Deferred Income
TotalDeferredIncome
2602000000 USD
intc Transfers From Other Long Term Assetsto Property Plant And Equipment Related To Prepaid Equipment
TransfersFromOtherLongTermAssetstoPropertyPlantAndEquipmentRelatedToPrepaidEquipment
135000000 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-27
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
dei Document Period End Date
DocumentPeriodEndDate
2014-09-27
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000050863
CY2014Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
4835000000 shares
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
Intel Corp
CY2013Q3 invest Derivative Notional Amount
DerivativeNotionalAmount
21937000000 USD
CY2013Q4 invest Derivative Notional Amount
DerivativeNotionalAmount
23739000000 USD
CY2014Q3 invest Derivative Notional Amount
DerivativeNotionalAmount
24855000000 USD

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