Intel 1994 Annual Report Download

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INTEL CORP
FORM 10-K
(Annual Report)
Filed 03/28/95 for the Period Ending 12/31/94
Address 2200 MISSION COLLEGE BLVD
RNB-4-151
SANTA CLARA, CA 95054
Telephone 4087658080
CIK 0000050863
Symbol INTC
SIC Code 3674 - Semiconductors and Related Devices
Industry Semiconductors
Sector Technology
Fiscal Year 12/31
http://www.edgar-online.com
© Copyright 2008, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    ...12/31/94 Address 2200 MISSION COLLEGE BLVD RNB-4-151 SANTA CLARA, CA 95054 4087658080 0000050863 INTC 3674 - Semiconductors and Related Devices Semiconductors Technology 12/31 Telephone CIK Symbol SIC Code Industry Sector Fiscal Year http://www.edgar-online.com © Copyright 2008, EDGAR Online, Inc...

  • Page 2
    ... of incorporation or organization) 94-1672743 (I.R.S. Employer Identification No.) 2200 Mission College Boulevard, Santa Clara, California, 95052-8119 (Address of principal executive offices, Zip Code) Registrant's telephone number, including area code (408) 765-8080 Securities registered pursuant...

  • Page 3
    ... for fiscal year ended December 31, 1994-Items 5, 6, 7, 8 and 14. (2) Portions of Proxy Statement dated March 14, 1995 -Items 10, 11, 12, and 13. PAGE 2 PART I ITEM 1. BUSINESS INDUSTRY Intel Corporation and its subsidiaries (collectively called "Intel," the "Company" or the "Registrant") operate in...

  • Page 4
    ... installation and configuration; EtherExpress Pro/100, a 100 MB ethernet adapter that supports the new 100 MB standard 100-based T; StorageExpress(TM) back up servers; NETSatisFAXtion(R) software; NetportExpress(TM) print servers; and LANDeskManager Suite V. 2.0 software, which combines management...

  • Page 5
    ... at domestic Intel facilities in Chandler, Arizona; Aloha, Oregon; Santa Clara and Folsom, California; and Rio Rancho, New Mexico. A majority of Intel's production of microcomputers and memory boards and systems takes place at facilities in Hillsboro, Oregon and Las Piedras, Puerto Rico. Outside the...

  • Page 6
    ... products is performed at Intel's facilities in Santa Clara and Folsom, California; Aloha and Hillsboro, Oregon; Chandler, Arizona; and Haifa, Israel. In June 1994, Intel and Hewlett-Packard Company announced a joint research and development project covering a wide range of activities, including...

  • Page 7
    ...of Financial Condition and Results of Operations." Intel has filed and obtained a number of patents in the United States and abroad. Intel has entered into patent cross license agreements with many of its major competitors. Intel protects many of its computer programs by copyrighting them. Intel has...

  • Page 8
    ... assembly and testing and administrative offices. European marketing, German sales and administrative offices. French sales and administrative offices. 2 Ireland 745,000 6 Malaysia (B) 531,000 4 Israel 379,000 4 Puerto Rico 292,000 3 England 184,000 3 Japan 167,000 1 Philippines...

  • Page 9
    ... all claims, counterclaims and defenses raised in this action. Intel vs. Advanced Micro Devices, Inc. ("AMD") U.S. District Court for the Northern District of California (C93-20301) - Intel486 Copyright Infringement Suit On April 28, 1993, the Company filed a complaint in the U.S. District Court...

  • Page 10
    ...companies, the parties agreed to dismiss all claims, counterclaims and defenses raised in this action. Consumer Class Action Suits Machtinger vs. Intel, Cook Co. Circuit Court, IL (94-C-7300) Anthony Uzzo & Co. vs. Intel, Santa Clara Co. Superior Court (CV745729) Liberty Bell Equip. vs. Intel, Santa...

  • Page 11
    ... Condition and Results of Operations" on pages 29 through 31 of the Registrant's 1994 Annual Report to Stockholders, which information is hereby incorporated by reference. Subsequent to December 31, 1994, Intel repurchased 2.0 million shares of Common Stock under the Company's authorized stock...

  • Page 12
    ... an upon-request replacement policy on Pentium processors and a then-unspecified material charge against earnings to be taken in the fourth quarter of 1994. PAGE 18 INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES (Item 14 (a)) Reference Page 1994 Annual Report to Stockholders Form...

  • Page 13
    ... 10-K, the 1994 Annual Report to Stockholders is not to be deemed filed as part of this report. Page references to the 1994 Annual Report to Stockholders relate to the bound, printed version of the report. PAGE 19 INTEL CORPORATION SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS December 26, 1992...

  • Page 14
    ...to Intel Corporation Profit-Sharing Retirement Plan dated April 20, 1990 as amended and restated effective January 1, 1989 (incorporated by reference to Exhibit 10.4 of Registrant's Form 10-K [Commission File No. 0-6217] as filed on March 26, 1993). Intel Corporation Defined Benefit Pension Plan and...

  • Page 15
    ... S. Grove Principal Executive Officer President and Director March 24, 1995 /s/ D. James Guzy D. James Guzy Director March 24, 1995 /s/ Gordon E. Moore Gordon E. Moore Chairman of the Board March 24, 1995 Arthur Rock Director March 24, 1995 /s/ Jane E. Shaw Jane E. Shaw Director March 24, 1995...

  • Page 16
    ... 11.1 INTEL CORPORATION COMPUTATION OF EARNINGS PER SHARE (In millions, except per share amounts) Year Ended Dec. 26, Dec. 25, Dec. 31, 1992 1993 1994 PRIMARY SHARES CALCULATION Reconciliation of weighted average number of shares outstanding to amount used in primary earnings per share computation...

  • Page 17
    EXHIBIT 12.1 INTEL CORPORATION STATEMENT SETTING FORTH THE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES FOR INTEL CORPORATION (In millions, except ratios) Years Ended Dec. 29, 1990 -------$986 Dec. 28, 1991 -------$1,195 Dec. 26, 1992 -------$1,569 Dec. 25, 1993 -------$3,530 Dec. 31, 1994 ...

  • Page 18
    ... Other assets 155 130 Total assets $13,816 $11,344 Liabilities and stockholders' equity Current liabilities: Short-term debt $ 517 $ 399 Long-term debt redeemable within one year -98 Accounts payable 575 427 Deferred income on shipments to distributors 269 200 Accrued compensation and benefits 588...

  • Page 19
    ...(68) (61) Increase in accounts payable 148 146 112 Tax benefit from employee stock plans 61 68 55 Increase in income taxes payable 38 32 207 Increase in accrued compensation and benefits 44 109 66 Increase in other liabilities 337 119 70 Total adjustments 693 506 569 Net cash provided by operating...

  • Page 20
    ...STOCKHOLDERS' EQUITY Three years ended December 31, 1994 Common Stock and capital in excess of par value Number Retained (In millions) of shares Amount earnings Total Balance at December 28, 1991 408 $ 1,641 $ 2,777 $ 4,418 Proceeds from sales of shares through employee stock plans, tax benefit of...

  • Page 21
    ... No. 115, "Accounting for Certain Investments in Debt and Equity Securities," effective as of the beginning of fiscal 1994. This adoption had no material effect on the Company's financial statements. All of the Company's short- and long-term investments are classified as available-for-sale as of the...

  • Page 22
    ...The Company also borrows under commercial paper programs. Maximum borrowings reached $700 million during both 1994 and 1993. This debt is rated A1+ by Standard and Poor's and P1 by Moody's. Proceeds are used to fund short-term working capital needs. LONG-TERM DEBT. Long-term debt at fiscal year-ends...

  • Page 23
    ... were made under a tax incentive program in Ireland, and the proceeds and cash flows have been swapped to U.S. dollars. In 1993, the Company filed a shelf registration statement with the SEC. When combined with previous registration statements, this filing gave Intel the authority to issue up to...

  • Page 24
    ... and debt portfolios for a floating interest rate. The floating rates on swaps are based primarily on U.S. dollar LIBOR and reset on a monthly, quarterly or semiannual basis. PAGE 8 Weighted average pay and receive rates, average maturities, and range of maturities on swaps at December 31, 1994 are...

  • Page 25
    ... Other income (loss) 23 33 (7 Total $273 $188 $133 Other income for 1994 included non-recurring gains from the settlement of various insurance claims. Other income for 1993 included nonrecurring gains from the sale of certain foreign benefits related to the Company's Irish expansion and dividend...

  • Page 26
    ...proposed deficiencies from the IRS totaling $36 million, exclusive of penalties and interest, for the years 1978 through 1982. These proposed deficiencies relate primarily to operations in Puerto Rico. In 1989, the Company filed a petition in the U.S. Tax Court contesting these proposed deficiencies...

  • Page 27
    ...1978-1987 cases or the years now under examination. EMPLOYEE BENEFIT PLANS STOCK OPTION PLANS. Intel has stock option plans (hereafter referred to as the EOP Plans) under which officers, key employees and nonemployee directors may be granted options to purchase shares of the Company's authorized but...

  • Page 28
    ... Company provides profit-sharing retirement plans (the "Profit-Sharing Plans") for the benefit of qualified employees in the U.S. and Puerto Rico. The plans are designed to provide employees with an accumulation of funds at retirement and provide for annual discretionary contributions to trust funds...

  • Page 29
    ...11% 4.5%-11% 4.5%-18% Expected long-term return on assets 5.5%-14% 5.5%-14% 5.5%-24% Plan assets of the foreign plans consist primarily of listed stocks, bonds and cash surrender value life insurance policies. OTHER POSTEMPLOYMENT BENEFITS. As of December 31, 1994, Intel does not offer the types of...

  • Page 30
    ... United States include manufacturing facilities in Ireland, Israel, Malaysia, and the Philippines, and sales subsidiaries in Japan, Asia-Pacific, and throughout Europe and other parts of the world. Summary balance sheet information for operations outside the United States at fiscal year-ends is as...

  • Page 31
    ... 5,844 $ 1,490 $ 8,089 Supplemental information (unaudited) Quarterly information for the two years ended December 31, 1994 is presented on page 31. PAGE 14 REPORT OF ERNST & YOUNG LLP Independent auditors The Board of Directors and Stockholders, Intel Corporation We have audited the accompanying...

  • Page 32
    Ten years ended December 31, 1994 Net investment Long-term Stock property, in property, Total debt & put holders plant (In millions) plant & equip. assets warrants equity equipment 1994 $ 5,367 $13,816 $ 1,136 $ 9,267 $ 2,441 1993 $ 3,996 $11,344 $ 1,114 $ 7,500 $ 1,933 1992 $ 2,816 $ 8,089 $ 622 $...

  • Page 33
    ... on Intel's financial statements. FINANCIAL CONDITION The Company's financial condition remains very strong. As of December 31, 1994, total cash and short- and long-term investments totaled $4.54 billion, essentially unchanged from December 25, 1993. Cash generated from operating activities rose to...

  • Page 34
    ... product mix. PAGE 18 Gross margin percentage trended downward during 1993 and 1994, although gross margin dollar contribution has generally continued to increase on a quarterly basis. Except for the one-time charge for the Pentium processor divide problem, the factors impacting cost of sales growth...

  • Page 35
    ..., the following descriptions of graphs on pages 29 and 30 of the Company's 1994 Annual Report to Stockholders that are omitted from the EDGAR text are more specific with respect to the actual amounts and percentages than can be determined from the graphs themselves. The Company submits such more...

  • Page 36
    EXHIBIT 21 INTEL CORPORATION SUBSIDIARIES (All 100% Owned) Intel International (Incorporated in California) Intel Overseas Corp. (Incorporated in California) Synchroquartz (U.S.) Corp. (Incorporated in California) Intel FSC (Incorporated in Barbados)

  • Page 37
    ... AUDITORS We consent to the incorporation by reference in this Annual Report (Form 10-K) of Intel Corporation of our report dated January 16, 1995, included in the 1994 Annual Report to Stockholders of Intel Corporation. Our audits also include the financial statement schedule of Intel Corporation...

  • Page 38
    ... by reference to such financial statements. PERIOD TYPE FISCAL YEAR END PERIOD END CASH SECURITIES RECEIVABLES ALLOWANCES INVENTORY CURRENT ASSETS PP&E DEPRECIATION TOTAL ASSETS CURRENT LIABILITIES BONDS COMMON PREFERRED MANDATORY PREFERRED OTHER SE TOTAL LIABILITY AND EQUITY SALES TOTAL REVENUES...