Intel 2014 Annual Report Download - page 28

Changes in our effective tax rate may reduce our net income.
A number of factors may increase our effective tax rates, which could reduce our net income, including:
•the jurisdictions in which profits are determined to be earned and taxed;
•the resolution of issues arising from tax audits;
•changes in the valuation of our deferred tax assets and liabilities, and in deferred tax valuation allowances;
•adjustments to income taxes upon finalization of tax returns;
•increases in expenses not deductible for tax purposes, including impairments of goodwill;
•changes in available tax credits;
•changes in tax laws or their interpretation, including changes in the U.S. to the taxation of manufacturing enterprises and of
non-U.S. income and expenses;
•changes in U.S. generally accepted accounting principles; and
•our decision to repatriate non-U.S. earnings for which we have not previously provided for U.S. taxes.
We may have fluctuations in the amount and frequency of our stock repurchases.
The amount, timing, and other execution of our stock repurchase program may fluctuate based on our priorities for the use of
cash for other purposes, such as investing in our business, including operational spending, capital spending, and acquisitions,
and returning cash to our stockholders as dividend payments, and because of changes in cash flows and changes in tax laws.
Workforce restructuring actions may be disruptive to our operations and adversely affect our financial results.
In response to the business environment and to accomplish our strategic objectives, from time to time we may restructure our
operations or make other adjustments to our workforce. Such workforce changes can result in restructuring charges in addition to
those described in “Note 13: Restructuring and Asset Impairment Charges” in Part II, Item 8 of this Form 10-K. Such workforce
changes can also temporarily reduce workforce productivity, which could be disruptive to our business and adversely affect our
results of operations. In addition, we may not achieve or sustain the expected cost savings or other benefits of our restructuring
plans, or do so within the expected time frame.
There are inherent limitations on the effectiveness of our controls.
We do not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all errors and all
fraud. A control system, no matter how well-designed and operated, can provide only reasonable, not absolute, assurance that
the control system’s objectives will be met. The design of a control system must reflect the fact that resource constraints exist,
and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that
all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on
certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to
future periods are subject to risks. Over time, controls may become inadequate due to changes in conditions or deterioration in
the degree of compliance with policies or procedures. If our controls become inadequate, we could fail to meet our financial
reporting obligations, our reputation may be adversely affected, our business and operating results could be harmed, and the
market price of our stock could decline.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
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