Intel 2013 Annual Report Download - page 99

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Note 22: Interest and Other, Net
The components of interest and other, net for each period were as follows:
(In Millions) 2013 2012 2011
Interest income $ 104 $ 97 $ 98
Interest expense (244) (90) (41)
Other, net (11) 87 135
Total interest and other, net $ (151) $ 94 $ 192
Interest expense in the preceding table is net of $246 million of interest capitalized in 2013 ($240 million in 2012
and $150 million in 2011). In 2011, we recognized a gain upon forming the Intel and GE joint venture, Care
Innovations, of $164 million, which is included within “other, net,” in the preceding table. For further information, see
“Note 5: Cash and Investments.”
Note 23: Earnings Per Share
We computed our basic and diluted earnings per common share for each period as follows:
(In Millions, Except Per Share Amounts) 2013 2012 2011
Net income available to common stockholders $ 9,620 $ 11,005 $ 12,942
Weighted average common shares outstanding—basic 4,970 4,996 5,256
Dilutive effect of employee equity incentive plans 68 100 101
Dilutive effect of convertible debt 59 64 54
Weighted average common shares outstanding—diluted 5,097 5,160 5,411
Basic earnings per common share $ 1.94 $ 2.20 $ 2.46
Diluted earnings per common share $ 1.89 $ 2.13 $ 2.39
We computed basic earnings per common share using net income available to common stockholders and the
weighted average number of common shares outstanding during the period. We computed diluted earnings per
common share using net income available to common stockholders and the weighted average number of common
shares outstanding plus potentially dilutive common shares outstanding during the period. Net income available to
participating securities was insignificant for all periods presented.
Potentially dilutive common shares from employee incentive plans are determined by applying the treasury stock
method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock
units, and the assumed issuance of common stock under the stock purchase plan. Potentially dilutive common
shares are determined by applying the if-converted method for our 2005 debentures. However, as our 2009
debentures require settlement of the principal amount of the debt in cash upon conversion, with the conversion
premium paid in cash or stock at our option, potentially dilutive common shares are determined by applying the
treasury stock method. For further discussion on the specific conversion features of our 2005 and 2009 debentures,
see “Note 16: Borrowings.”
In 2013, we excluded on average 55 million outstanding stock options and restricted stock units (29 million in 2012
and 90 million in 2011) from the computation of diluted earnings per common share because these would have
been antidilutive. These options could potentially be included in the dilutive earnings per common share calculation
in the future if the average market value of the common shares increases and is greater than the exercise price of
these options.
In 2013, 2012, and 2011, we included our 2009 debentures in the calculation of diluted earnings per common share
because the average market price was above the conversion price. We could potentially exclude the 2009
debentures again in the future if the average market price is below the conversion price.
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)