Intel 1995 Annual Report Download

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INTEL CORP
FORM 10-K
(Annual Report)
Filed 03/29/96 for the Period Ending 12/30/95
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
    ... 10-K (Annual Report) Filed 03/29/96 for the Period Ending 12/30/95 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...

  • Page 2
    ...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 to Section 12(b) of the Act: Title of each class NONE Name of each exchange on...

  • Page 3
    ... high-end workstations. The Pentium Pro microprocessor uses Intel's Dynamic Execution architecture to increase the amount of work that can be done in parallel. In 1996, Pentium Pro microprocessors are expected to be used for enterprise server applications and business desktops utilizing full 32-bit...

  • Page 4
    .../RB/RC 8-bit microcontrollers. During 1995, Intel also started shipping in volume its new MCS 251 microcontroller, the 8xC251SB. Intel has begun to implement the Universal Serial Bus (USB) specification in microcontroller products. * Other brands and names are the property of their respective...

  • Page 5
    ... facilities in Chandler, Arizona; Aloha, Oregon; Santa Clara and Folsom, California; and Rio Rancho, New Mexico. A significant portion of Intel's production of microprocessor board-level products and systems takes place at facilities in Hillsboro, Oregon and Las Piedras, Puerto Rico. Outside the...

  • Page 6
    ... performed at Intel's facilities in Santa Clara and Folsom, California; Aloha and Hillsboro, Oregon; Chandler, Arizona; and Haifa, Israel. INTELLECTUAL PROPERTY AND LICENSING Intellectual property rights that apply to various Intel products include patents, copyrights, trade secrets, trademarks and...

  • Page 7
    .... Intel has obtained certain trademarks and trade names for its products to distinguish genuine Intel products from those of its competitors and is currently engaged in a cooperative program with OEMs to identify personal computers that incorporate genuine Intel microprocessors with the Intel Inside...

  • Page 8
    ... sales and administrative offices. 6 Ireland 959,000 6 Malaysia (B) 531,000 4 Israel 379,000 4 Puerto Rico 292,000 3 England 184,000 3 Japan 167,000 1 Philippines (C) 431,000 1 Germany 86,000 At December 30, 1995, Intel also leased 24 major facilities in the U.S. totaling...

  • Page 9
    ... courts in various states against the Company. Although the complaints differed, these actions generally alleged that Intel breached express and implied warranties, engaged in deceptive advertising and otherwise committed consumer fraud by shipping Pentium processors which contained a divide problem...

  • Page 10
    ..., market price range and dividend information appearing under "Financial Information by Quarter (Unaudited)" on page 31 of the Registrant's Annual Report to Stockholders which information is hereby incorporated by reference. (b) As of February 24, 1996, there were 85,273 holders of record of the...

  • Page 11
    ... Exhibits The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as part of this annual report. (b) Reports on Form 8-K None. PAGE 17 INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES (Item 14 (a)) Reference Page 1995 Annual Form Report to 10...

  • Page 12
    ... Stockholders is not to be deemed filed as part of this report. Page references to the 1995 Annual Report to Stockholders relate to the bound, printed version of the report. PAGE 18 INTEL CORPORATION SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS December 25, 1993, December 31, 1994 and December 30...

  • Page 13
    ... 10, 1995). 10.2 Intel Corporation 1988 Executive Long-Term Stock Option Plan as amended and restated (incorporated by reference to Exhibit 10.6 of Registrant's Form 10-Q for the quarter ended April 2, 1994 as filed on May 16, 1994). 10.3 Intel Corporation Executive Officer Bonus Plan as amended...

  • Page 14
    ... /s/ Andrew S. Grove Andrew S. Grove Principal Executive Officer President and Director March 27, 1996 /s/ D. James Guzy D. James Guzy Director March 27, 1996 /s/ Gordon E. Moore Gordon E. Moore Chairman of the Board March 27, 1996 /s/ Jane E. Shaw Jane E. Shaw Director March 27, 1996 /s/ Leslie...

  • Page 15
    ... 11.1 INTEL CORPORATION COMPUTATION OF EARNINGS PER SHARE (In millions, except per share amounts) Year Ended Dec. 25, Dec. 31, Dec. 30, 1993 1994 1995 PRIMARY SHARES CALCULATION Reconciliation of weighted average number of shares outstanding to amount used in primary earnings per share computation...

  • Page 16
    ...EARNINGS TO FIXED CHARGES FOR INTEL CORPORATION (In millions, except ratios) Years Ended Dec. 28, Dec. 26, Dec. 25, Dec. 31, Dec. 30, 1991 1992 1993 1994 1995 1,195 $1,569 $3,530 $3,603 $5,638 Income before taxes Add - Fixed charges net of capitalized interest 98 ------ 68 ------ 58 ------ 66...

  • Page 17
    ... depreciation Property, plant and equipment, net Long-term investments Other assets Total assets Liabilities and stockholders' equity Current liabilities: Short-term debt Accounts payable Deferred income on shipments to distributors Accrued compensation and benefits Accrued advertising Other...

  • Page 18
    ... of property, plant and equipment Amortization of debt discount Change in deferred tax assets and liabilities Changes in assets and liabilities: (Increase) in accounts receivable (Increase) in inventories (Increase) in other assets Increase in accounts payable Tax benefit from employee stock plans...

  • Page 19
    ...Stockholders' Equity Common Stock and capital in excess of par value Three years ended December 30, 1995 Number (In millions) of shares Amount Balance at December 26, 1992 837 $ 1,776 Proceeds from sales of shares through employee stock plans, tax benefit of $68 and other 14 Proceeds from sales of...

  • Page 20
    ...-out basis). Inventories at fiscal year-ends were as follows: (In millions) Materials and purchased parts Work in process Finished goods Total 1995 ------$ 674 707 623 ------$ 2,004 ======= 1994 ------$ 345 528 296 ------$ 1,169 ======= Property, plant and equipment. Property, plant and equipment...

  • Page 21
    ... have exercise prices ranging from $38 to $68 per share, with an average exercise price of $60 per share. There is no significant dilutive effect on earnings per share for the periods presented. Borrowings Short-term debt. Short-term debt and weighted average interest rates at fiscal year-ends were...

  • Page 22
    ...The Company also borrows under commercial paper programs. Maximum borrowings reached $700 million during both 1995 and 1994. 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
    ...1994 amounts have been restated to conform to the 1995 presentation. During the year ended December 30, 1995, debt and marketable securities with a fair value at the date of sale of $114 million were sold. The gross realized gains on such sales totaled $60 million. There were no material proceeds or...

  • Page 24
    ...the Company. The Company controls credit risk through credit approvals, limits and monitoring procedures. Credit rating criteria for off-balancesheet transactions are similar to those for investments. Swap agreements. The Company utilizes swap agreements to exchange the foreign currency, equity, and...

  • Page 25
    ... the remainder spread across various other industries. During 1995, the Company experienced an increase in its concentration of credit risk due to increasing trade receivables from sales to manufacturers of microcomputer systems. The Company's five largest customers accounted for approximately 33...

  • Page 26
    ... plans Stock option plans. Intel has a stock option plan (hereafter referred to as the EOP Plan) under which officers, key employees and non-employee directors may be granted options to purchase shares of the Company's authorized but unissued Common Stock. The Company also has an Executive Long-Term...

  • Page 27
    ...exercised at specific dates ranging from January 1996 to December 2005. Prices for options exercised during the three-year period ended December 30, 1995 ranged from $3.04 to $36.13. Activity for the ELTSOP Plan is summarized below: Outstanding options Shares available Number Aggregate (In millions...

  • Page 28
    ... Expected Long-Term return on assets 8.5% 8.5% 8.5% Plan assets of the U.S. and Puerto Rico plans consist primarily of listed stocks and bonds, repurchase agreements, money market securities, U.S. government securities and stock index derivatives. The Company provides defined-benefit pension plans...

  • Page 29
    ... Long-Term return on assets 5.5%-14% 5.5%-14% 5.5%-14% Plan assets of the foreign plans consist primarily of listed stocks, bonds and cash surrender value life insurance policies. Other postemployment benefits. The Company has adopted SFAS No. 106, "Employers' Accounting for Postretirement Benefits...

  • Page 30
    ... and its cash flows for each of the three years in the period ended December 30, 1995, in conformity with generally accepted accounting principles. San Jose, California January 15, 1996 Financial Summary Ten Years Ended December 30, 1995 Additions to property, Net investment Long-term Stock-

  • Page 31
    ...of microprocessor products and related manufacturing technology. Increased spending for marketing programs, including media merchandising and the Company's Intel Inside(R) cooperative advertising program, drove the 27% increase in marketing, general and administrative expenses from 1994 to 1995. The...

  • Page 32
    ... of non-domestic sales that have longer payment terms. During 1995, the Company experienced an increase in its concentration of credit risk due to increasing trade receivables from sales to manufacturers of microcomputer systems. The Company's five largest customers accounted for approximately 33...

  • Page 33
    ....63 Market price range Step-Up Warrants(B) High $ 7.50 $ 8.00 $ 9.22 $ 9.75 Low $ 6.16 $ 6.50 $ 6.50 $ 7.56 (A) Intel plans to continue its dividend program. However, dividends are dependent on future earnings, capital requirements and financial condition. (B) Intel's Common Stock (symbol INTC) and...

  • Page 34
    Interest expense 50 57 29 CASH AND INVESTMENTS (Dollars in billions) Cash and cash equivalents Short-term investments Long-term investments 1994 -----1.180 1.230 2.127 1995 -----1.463 .995 1.653

  • Page 35
    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)

  • Page 36
    ... to the incorporation by reference in this Annual Report (Form 10-K) of Intel Corporation of our report dated January 15, 1996, included in the 1995 Annual Report to Stockholders of Intel Corporation. Our audits also included the financial statement schedule of Intel Corporation listed in Item...

  • Page 37
    .... 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 CGS TOTAL COSTS OTHER EXPENSES LOSS...

  • Page 38
    ... 1, 1995, by and between Intel Corporation, a Delaware corporation (the "Company"), and Harris Trust and Savings Bank, an Illinois banking corporation ("Harris"), as Warrant Agent, for purposes of amending that certain Warrant Agreement -- 1998 Step-Up Warrants to Purchase Common Stock, dated March...

  • Page 39
    ...16, 1995) Subject to the terms and conditions set forth herein and in the Warrant Agreement referred to on the reverse hereof, this Warrant may be exercised upon surrender of this Warrant Certificate and payment of the aggregate Exercise Price at the office or agency of the Warrant Agent in New York...

  • Page 40
    ... payment of the aggregate Exercise Price, in lawful money of the United States of America, and any applicable transfer taxes, at the Warrant Agent Office. In the event that upon any exercise of the Warrant evidenced hereby the number of Shares actually purchased shall be less than the total number...

  • Page 41
    ..., and does irrevocably constitute and appoint _____ attorney, to transfer the within Warrant Certificate on the books of the Warrant Agent, with full power of substitution. _____ Dated _____ Signature Note: The above signature must correspond with the name as written upon the face of this Warrant...