Intel Income Statement Year Ended December 31,

2018 2017 2016

Revenues 70,848 62,761 59,387
Cost of Sales 27,111 23,663 23,154

Gross Margin 43,737 39,098 36,233

Expenses

Research and Development 13,543 13,035 12,685

Marketing, general and administrative 6,750 7,452 8,377
Restructuring and other charges (72) 384 1,744

Amortization of acquisition-related intangibles 200 177 294

Operating Expenses 20,421 21,048 23,100

Operating Income 23,316 18,050 13,133

Other income and expenses

Gains (losses) on equity investments (125) 2,651 506

Interest and other, net 126 (349) (703)

Income before taxes 23,317 20,352 12,936
Provision for taxes 2,264 10,751 2,620
Net income 21,053 9,601 10,316

Earnings per share - Basic 4.57 2.04 2.18

Earnings per share - Diluted 4.48 1.99 2.12

Weighted average shares of common stock outstanding

Basic 4,611 4,701 4,730

Diluted 4,701 4,835 4,875

Consolidated Balance Sheets As of December 31,
(in millions, except for par value) 2018 2017
Assets
Current Assets
Cash and cash equivalents 3,019 3,433
Short-term investments 2,788 1,814
Trading Assets 5,843 8,755
Accounts Receivable, net 6,722 5,607

Inventories 7,253 6,983

Other current assets 3,162 2,908
Total Current assets 28,787 29,500

Non-current Assets

Property, plant and equipment, net 48,976 41,109

Equity Investments 6,042 8,579

Other long-term investments 3,388 3,712

Goodwill 24,513 24,389

Identified intangible assets, net 11,836 12,745
Other long-term assets 4,421 3,215
Total Non-current assets 99,176 93,749

Total Assets 127,963 123,249

Liabilities, Temporary Equity, and Stockholders' Equity

Current Liabilities
Short-term debt 1,261 1,776
Accounts Payable 3,824 2,928

Accrued compensation and benefits 3,622 3,526

Deferred income - 1,656
Other accrued liabilities 7,919 7,535
Total Current Liabilities 16,626 17,421
 Long Term Liabilities

Debt 25,098 25,037

Contract liabilities 2,049 -
Income taxes payable 4,897 4,069
Deferred income taxes 1,665 3,046
Other long-term liabilities 2,646 3,791
Total Non-current equity 36,355 35,943

Temporary equity 419 866

Stockholders' Equity

Preferred stock ($0.001 par value, 50 shares authorized,

none issued) - -
Common Stock ($0.001 par value, 10,000 shares
authorized, 4,516 shares issued and outstanding (4,687
issued and outstanding in 2017) and capital in excess of par
value 25,365 26,074

Accumulated other comprehensive income (loss) (974) 862

Retained earnings 50,172 42,083

Total Stockholders' Equity 74,563 69,019

Total Liabilities, temporary equity, and stockholders' Equity 127,963 123,249

Statement of Cash Flows

Years Ended December 31,
2018 2017 2016
Cash and cash equivalents, beginning of period 3,433 5,560 15,308
Cash flows provided by (used for) operating activities:
Net income 21,053 9,601 10,316
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 7,520 6,752 6,266
Share-based compensation 1,546 1,358 1,444
Amortization of intangibles 1,565 1,377 1,524
(Gains) losses on equity investments, net 155 (2,583) (432)
Loss on debt conversion and extinguishment 260 476 -
(Gains) losses on divestitures (497) (387) -
Deferred taxes (1,749) 1,548 257
Changes in assets and liabilities:
Accounts receivable (1,714) 1,548 257
Inventories (214) (1,300) 119
Accounts payable 211 191 182
Accrued compensation and benefits (260) 311 291
Customer deposits and prepaid supply agreements 1,367 1,105 -
Income taxes payables and receivable 148 5,230 1,382
Other assets and liabilities 41 (788) 394

Total adjustments 8,379 12,509 11,492

Net cash provided by operating activities 29,432 22,110 21,808

Net cash provided by (used for) investing activities:

Additions to property, plant, and equipment (15,181) (11,778) (9,625)
Acquisitions, net of cash acquired (190) (14,499) (15,470)

Purchases of available for sale debt investments (3,843) (2,746) (9,269)

Sales of available for sale debt investments 195 1,833 2,847

Maturities of available for sale debt investments 2,968 3,687 5,654
Purchases of trading assets (9,503) (13,700) (12,237)
Maturities and sales of trading assets 12,111 13,970 10,898
Purchases of equity investments (874) (1,619) (963)
Sales of equity investments 2,802 5,236 1,080
Proceeds from divestitures 548 3,124 -
Other investing (272) 730 1,268
Net cash used for investing activities (11,239) (15,762) (25,817)

Cash flows provided by (used for) financing activities:

Increase (decrease) in short-term debt, 460 12 (15)
 net issuance of long-term debt, net of issuance costs 423 7,716 2,734

Repayment of debt and debt conversion (3,026) (8,080) (1,500)

Proceeds from sales of common stock through employee
equity incentive plans 555 770 1,108
Repurchase of common stock (10,730) (3,615) (2,587)
Payment of dividends to stockholders (5,541) (5,072) (4,925)
Other financing (748) (206) (554)
Net cash provided by (used for) financing activities (18,607) (8,475) (5,739)

Net increase (decrease) in cash and cash equivalents (414) (2,127) (9,748)

Cash and cash equivalents, end of period (414) (2,127) (9,748)

Consolidated Statements of Stockholders; Equity

Accumulated
Other
Common Stock and Capital Comprehensive Retained
(In Millions, Except Per Share Amounts) Paid in Excess of Par Value Income (Loss) Earnings

Balances as of December 26, 2015 4,725 23,411 60 37,614

Components of comprehensive income, net of tax
Net income - - - 10,316
Other comprehensive income (loss) - - 46 -
Total comprehensive income
Proceeds from sales of common stock through
employee equity incentive plans, net tax
benefit, and other 101 1,322 - -
Share-based compensation - 1,438 - -
Repurchase of common stock (81) (412) - (2,180)
Restricted stock unit withholdings (15) (386) - (78)
Cash dividends, declared ($1.04 per share of
common stock) - - - (4,925)
Balance as of December 31, 2016 4,730 25,373 106 40,747
Components of comprehensive income, net of tax
Net income - - - 9,601
Other comprehensive income (loss) - - 756 -
Total comprehensive income

Proceeds from sales of common stock through

employee equity incentive plans, net tax
benefit, and other 70 1,172 - (1)
Share-based compensation - 1,296 - -
Convertible debt - (894) - -
Repurchase of common stock (101) (552) - (3,057)
Restricted stock unit withholdings (12) (321) - (135)
Cash dividends, declared ($1.0775 per share of
common stock) - - - (5,072)
Balance as of December 31, 2017 4,687 26,074 862 42,083
Adjustment to opening balance for change in
accounting principle - - (1,790) 2,424
Opening balance as of December 31, 2017 4,687 26,074 (928) 44,507
Components of comprehensive income, net of tax
Net income - - - 21,053
Other comprehensive income (loss) - - (46) -
Total comprehensive income

Proceeds from sales of common stock through

employee equity incentive plans, net tax
benefit, and other 56 424 - -
Share-based compensation - 1,548 - -
Temporary equity reduction - 447 - -
Convertible debt - (1,591) - -
Repurchase of common stock (217) (1,208) - (9,650)
Restricted stock unit withholdings (10) (329) - (197)

Cash dividends, declared ($1.20 per share of

common stock) - - - (5,541)
Balance as of December 29, 2018 4,516 25,365 (974) 50,172

note A: Includes approximately $375 million of non-controlling interest activity due to our acquisition of Mobileye in 2017,
which was eliminated in 2018 due to purchase of remaining shares.
Intel Income Statement - Simplified (a bit)
Year Ended December 31,
x3 x2 x1
Revenues 70,848 62,761 59,387
Cost of Sales 27,111 23,663 23,154

Gross Margin 43,737 39,098 36,233

Expenses

Selling, general and administrative 6,750 7,452 8,377

Research and Development 13,543 13,035 12,685
Restructuring and other charges (72) 384 1,744

Amortization of acquisition-related intangibles 200 177 294

Operating Expenses 20,421 21,048 23,100

Operating Income 23,316 18,050 13,133

Other income (expenses)

Gains (losses) on equity investments (125) 2,651 506

Interest and other, net 126 (349) (703)

Income before taxes 23,317 20,352 12,936
Provision for income taxes 2,264 10,751 2,620
Net income 21,053 9,601 10,316

Earnings per share - Basic 4.57 2.04 2.18

Earnings per share - Diluted 4.48 1.99 2.12

Weighted average shares of common stock outstanding

Basic 4,611 4,701 4,730

Diluted 4,701 4,835 4,875

Consolidated Balance Sheets
As of December 31,
(in millions, except for par value) 2018 2017
Assets
Current Assets
Cash and cash equivalents 3,019 3,433
Marketable securities 8,631 10,569
Accounts Receivable, net 6,722 5,607
Inventories 7,253 6,983

Other current assets 3,162 2,908

Total Current assets 28,787 29,500

Non-current Assets

Property, plant and equipment, net 48,976 41,109

Equity Investments 6,042 8,579

Other long-term investments 3,388 3,712

Goodwill 24,513 24,389

Identified intangible assets, net 11,836 12,745

Other long-term assets 4,421 3,215
Total Non-current assets 99,176 93,749

Total Assets 127,963 123,249

Liabilities, Temporary Equity, and Stockholders' Equity

Current Liabilities
Short-term debt 1,261 1,776
Accounts Payable 3,824 2,928
Accrued compensation and benefits 3,622 3,526

Deferred income - 1,656

Other accrued liabilities 7,919 7,535
Total Current Liabilities 16,626 17,421
 Non-current liabilities
Debt 25,098 25,037

Contract liabilities 2,049 -

Income taxes payable 4,897 4,069
Deferred income taxes 1,665 3,046
Other long-term liabilities 2,646 3,791
Total Non-current liabilities 36,355 35,943

Non-controlling interests 419 866

Stockholders' Equity

Preferred stock ($0.001 par value, 50

shares authorized, none issued) - -

Common Stock ($0.001 par value, 10,000

shares authorized, 4,516 shares issued and
outstanding (4,687 issued and outstanding
in 2017) and capital in excess of par value 25,365 26,074

Accumulated other comprehensive income (l (974) 862

Retained earnings 50,172 42,083

Total Stockholders' Equity 74,563 69,019

Total Liabilities, temporary equity, and stock 127,963 123,249

Statement of Cash Flows

Years Ended December 31,
2018 2017 2016
Cash and cash equivalents, beginning of per 3,433 5,560 15,308
Cash flows provided by (used for) operating activities:
Net income 21,053 9,601 10,316
Adjustments to reconcile net income to
net cash provided by operating activities:

Depreciation 7,520 6,752 6,266

Share-based compensation 1,546 1,358 1,444
Amortization of intangibles 1,565 1,377 1,524
(Gains) losses on equity investments, net 155 (2,583) (432)
Loss on debt conversion and extinguishment 260 476 -
(Gains) losses on divestitures (497) (387) -
Deferred taxes (1,749) 1,548 257
Changes in assets and liabilities:
Accounts receivable (1,714) 1,548 257
Inventories (214) (1,300) 119
Accounts payable 211 191 182
Accrued compensation and benefits (260) 311 291
Customer deposits and prepaid supply agre 1,367 1,105 -
Income taxes payables and receivable 148 5,230 1,382
Other assets and liabilities 41 (788) 394
Total adjustments 8,379 12,509 11,492

Net cash provided by operating activitie 29,432 22,110 21,808

Net cash provided by (used for) investing activities:

Additions to property, plant, and equipment (15,181) (11,778) (9,625)
Acquisitions, net of cash acquired (190) (14,499) (15,470)
Purchases of available for sale debt investm (3,843) (2,746) (9,269)

Sales of available for sale debt investments 195 1,833 2,847

Maturities of available for sale debt investm 2,968 3,687 5,654

Purchases of trading assets (9,503) (13,700) (12,237)
Maturities and sales of trading assets 12,111 13,970 10,898
Purchases of equity investments (874) (1,619) (963)
Sales of equity investments 2,802 5,236 1,080
Proceeds from divestitures 548 3,124 -
Other investing (272) 730 1,268
Net cash used for investing activities (11,239) (15,762) (25,817)

Cash flows provided by (used for) financing activities:

Increase (decrease)
net issuance in short-term
of long-term debt,
debt, net of 460 12 (15)
issuance costs 423 7,716 2,734
 Repayment of debt and debt conversion (3,026) (8,080) (1,500)

Proceeds from sales of common stock

through employee equity incentive plans 555 770 1,108

Repurchase of common stock (10,730) (3,615) (2,587)

Payment of dividends to stockholders (5,541) (5,072) (4,925)
Other financing (748) (206) (554)
Net cash provided by (used for) financing (18,607) (8,475) (5,739)

Net increase (decrease) in cash and cash equ (414) (2,127) (9,748)

Cash and cash equivalents, end of period (414) (2,127) (9,748)

Consolidated Statements of Stockholders; Equity

Accumulate
d Other
Comprehens
Common Stock and Capital ive Income Retained
(In Millions, Except Per Share Amounts) Paid in Excess of Par Value (Loss) Earnings

Total
Balances as of December 26, 2015 4,725 23,411 60 37,614
61,085 Components of comprehensive income, net of tax
- Net income - - - 10,316
10,316 Other comprehensive income (loss) - - 46 -
46 Total comprehensive
incentive income
plans, net tax benefit,
10,362 and other 101 1,322 - -

1,322 Share-based compensation - 1,438 - -

1,438 Repurchase of common stock (81) (412) - (2,180)
(2,592) Restricted stock declared
Cash dividends, unit withholdings
($1.04 per (15) (386) - (78)
(464) share of common stock) - - - (4,925)

(4,925) Balance as of December 31, 2016 4,730 25,373 106 40,747

 66,226 Components of comprehensive income, net of tax
- Net income - - - 9,601
9,601 Other comprehensive income (loss) - - 756 -
756 Total comprehensive
incentive income
plans, net tax benefit,
10,357 and other 70 1,172 - (1)

1,171 Share-based compensation - 1,296 - -

1,296 Convertible debt - (894) - -
(894) Repurchase of common stock (101) (552) - (3,057)
(3,609) Restricted stock declared
Cash dividends, unit withholdings
($1.0775 (12) (321) - (135)
(456) per share of common stock) - - - (5,072)

(5,072) Balance as of December

Adjustment 31,balance
to opening 2017 for 4,687 26,074 862 42,083
69,019 change in accounting principle - - (1,790) 2,424

634 Opening balance as of December 31, 20 4,687 26,074 (928) 44,507

69,653 Components of comprehensive income, net of tax
Net income - - - 21,053
21,053 Other comprehensive income (loss) - - (46) -
(46) Total comprehensive
incentive income
plans, net tax benefit,
21,007 and other 56 424 - -

424 Share-based compensation - 1,548 - -

1,548 Temporary equity reduction - 447 - -
447 Convertible debt - (1,591) - -
(1,591) Repurchase of common stock (217) (1,208) - (9,650)
(10,858) Restricted stock declared
Cash dividends, unit withholdings
($1.20 per (10) (329) - (197)
(526) share of common stock) - - - (5,541)

(5,541) Balance as of December 29, 2018 4,516 25,365 (974) 50,172

74,563
note A: Includes approximately $375 million of non-controlling interest activity due to our acquisition of
of Mobileye in 2017, Mobileye in 2017, which was eliminated in 2018 due to purchase of remaining shares.
Comments - assume "we" are Intel
What customers pay for - products or services, a.k.a. Sales
Direct costs of the products, do not include overhead or general expenses

Profit made from the product sale e.g. microprocessor price of $500 minus cost of
materials, labor and factory of $100 means gross profit of $400. Exclude general
expenses and non-operating items. It is a "pure" number of money made on the
product itself.

Includes all operating expenses - selling, marketing, administrative, operating

expenses
Self-explanatory - expenses to discover and develop new products and services
Major organizational and strategic actions to improve our company's future

A bit technical at this stage - charges to this time period for amounts paid to buy
company's "intangible assets" such as patents which expire.
subtotal of the operating expenses above
Operating income = Gross Profit - Operating Expenses = profits made from running
the business itself

Profit from selling investments made in buying stocks and bonds of other
companies, which is not our main business

The net amount of interest we paid minus interest we received

a.k.a. "pre-tax profit" or "earnings before taxes"
income taxes that we will have to pay based on our pre-tax income
a.k.a. "the bottom line", it is the profit earned after paying all its expenses.

Each share made this amount of money (based on shares actually held by
investors)

A bit technical - earnings based on each share actually issued or COULD HAVE BEEN
issued based on outside parties' choices

used for the EPS calculations above - these are the "actual shares out there"

used for EPS calculations - these are "actually out there or could have been issued
if people chose to do so"
Generally: Assets = Liabilities + Equity, What we own is paid for by our borrowings
or our stockholders (equity). This is the Accounting Equation

Assets = list of assets owned, sorted by how "close to cash" they are
Current Assets = cash or can become cash or used in one year
Cash in bank plus easily sold investments that can become cash quickly
Investments in securities - stocks and bonds, which can be easily sold
Money owed to us by our customers
Products ready for sale - in warehouses or stores (if applicable)

Assets that will become cash or used within one year - e.g. prepaid insurance
policies
subtotal of above

Non-Current Assets = will be around longer than 1 year, a.k.a. "long term assets"

Land, buildings, equipment, and money spent to improve leased buildings, net of
depreciation

Investments in other companies intended for longer time frames, may be an

affiliated company
May include joint ventures or other non-real estate investments

a bit technical - is the excess of money paid to buy another company over the
market value of identifiable assets. E.g. when we buy a promising startup for a lot
of money. It is "goodwill" hopefully with a lot of long term potential value.
a bit technical - these are assets that are "intangible" - e.g. value of patents or
customer lists or trademarks (e.g. when Disney acquired Marvel Entertainment and
got Spiderman)
would include refundable deposits held by our landlord
subtotal or above

Total of the above

Liabilities are our borrowings and Equity is money from or belonging to our
stockholders (owners)
Current (as in the assets) - owed within the next year
borrowed from a bank or other lender
owe to our vendors (suppliers of our products, for example)
owed to our employees for bonuses, wages, commissions or insurance benefits
paid to us by our customers before we earned it - e.g. prepayment for future
shipments
could be for estimated costs for warranty repairs or deposits received from its tenants
subtotal of the above
Similar to assets - these are owed more than one year from now
owed to banks or other lenders
Obligations that we have under contracts that will be honored more than one year
from now
Income taxes we expect to pay more than a year from now
a bit technical - taxes that will become due later based on our accounting
could be for long term legal settlements paid over many years into the future
subtotal of the above

a bit technical - represents the financial interests held by outsiders (not Intel) in
subsidiaries of Intel that Intel does not entirely. E.g. If Intel buys 90% of the stock
of ABC Company, the non-controlling interests would be the other 10%, a.k.a.
Minority Interests

Preferred stock is not required of all companies. They are an additional type
("class") of stock with "preferences" that give them advantages over common
stock. One example would be payment of quarterly dividends.

Every corporation must have common shares issued to its owners. This represents
the amount paid into the company by the shareholders. It is NOT equal to the
market value of the stock. The other items are a bit technical - par, authorized and
in excess of par.

quite technical - these are income or losses from specific types of transactions or
conditions that ARE NOT recorded on the income statement.
This is the total of net income since the company started minus all the dividends
every paid to shareholders. "Retained" means profits that we kept in the company.

this is the book (or accounting) value of the stockholders. Again, it is not the
market value, which is determined by the stock markets.

total of the above, or how Intel get money to buy its assets

Note: this is a bit more technical, so only selected comments are made.

The first of three sections: Operating Activities

This is the cash generated or used from running the business.
Net income on an income statement is on an "accrual basis", which means we
count revenues when we earn it and NOT based on when the customer paid us.
This section adjusts net income to arrive at the amount of CASH the company
generated or used from running its business.

<<< This is one of the key numbers - the net amount generated or (used) by
operations. We like profit, but we also like cash generated by running the
business.

This is the second of three section: Investments.

This section covers what we invest for the future of the company. It includes
physical assets - like land, building, equipment

But it also includes investments in securities to keep as a "war chest" or "rainy day
money" for the future. Securities can be sold very quickly for use by the company,

It also includes funds used to buy all or parts of companies important for the
company - e.g. startups with great technology or people, competitors, or
companies in industries we want to enter.

<<< key number - how much did we invest in the future of the company?

This is the third of three sections: Financing Activities

One group are bankers

 Another group are bondholders

Another group are investors in Intel Stock - issue shares, pay dividends, repurchase
shares

<<< key number - are we raising money or paying money to our financing
sources?

Observation:
Intel makes a lot of money from its operations (large positive number)
Intel invests a lot in the future through investments (large negative number)
Intel has enough left over to pay out money to debt sources and stockholders -
financing

Note: This statement describes what happen to the shareholders'

Total money. We will cover this in general terms

This statement traces the changes in the shareholders' accounts over

the years presented. Notice that top row is the beginning of the years
61,085 presented. Then it goes through each year an each change for the three
- years presented.
10,316
46
10,362
1,322
The normal items we would see would be profits (net income goes to
Retained Earnings), dividends paid (reduces Retained Earnings).
1,438
(2,592)
(464)
(4,925)
Intel also has actively repurchased its shares on the open market since it
is generating more cash than is needed for its operations.
66,226
 -
9,601
756
10,357
1,171

1,296
(894)
(3,609)
(456)
(5,072)

69,019
634

69,653

21,053
(46)
21,007
424

1,548
447
(1,591)
(10,858)
(526)
(5,541)

74,563

o our acquisition of
s.
Income Statement - Simplified Intel
Year Ended December 31,
2018 2017 2016
Revenues 70,848 62,761 59,387
Cost of Sales 27,111 23,663 23,154
Gross Profit 43,737 39,098 36,233
Expenses

Selling, general and administrative 6,750 7,452 8,377

Research and Development 13,543 13,035 12,685
Restructuring and other charges (72) 384 1,744
Amortization of acquisition-related intangibles 200 177 294
Operating Expenses 20,421 21,048 23,100

Operating Income 23,316 18,050 13,133

Other income (expenses)

Gains (losses) on equity investments (125) 2,651 506

Interest and other, net 126 (349) (703)
Income before taxes 23,317 20,352 12,936
Provision for income taxes 2,264 10,751 2,620
Net income 21,053 9,601 10,316

Earnings per share - Basic 4.57 2.04 2.18

Earnings per share - Diluted 4.48 1.99 2.12

Weighted average shares of common stock outstanding

Basic 4,611 4,701 4,730

Diluted 4,701 4,835 4,875

Consolidated Balance Sheets

As of December 31,
(in millions, except for par value) 2018 2017
Assets
Current Assets
Cash and cash equivalents 3,019 3,433
Marketable securities 8,631 10,569
 Accounts Receivable, net 6,722 5,607
Inventories 7,253 6,983

Other current assets 3,162 2,908

Total Current assets 28,787 29,500

Non-current Assets

Property, plant and equipment, net 48,976 41,109

Equity Investments 6,042 8,579

Other long-term investments 3,388 3,712

Goodwill 24,513 24,389

Identified intangible assets, net 11,836 12,745

Other long-term assets 4,421 3,215
Total Non-current assets 99,176 93,749

Total Assets 127,963 123,249

Liabilities, Temporary Equity, and Stockholders' Equity

Current Liabilities
Short-term debt 1,261 1,776
Accounts Payable 3,824 2,928
Accrued compensation and benefits 3,622 3,526

Deferred income - 1,656

Other accrued liabilities 7,919 7,535

Total Current Liabilities 16,626 17,421

Non-current liabilities
Debt 25,098 25,037

Contract liabilities 2,049 -

Income taxes payable 4,897 4,069
Deferred income taxes 1,665 3,046
Other long-term liabilities 2,646 3,791
 Total Non-current equity 36,355 35,943

Non-controlling interests 419 866

Stockholders' Equity

Preferred stock ($0.001 par value, 50 shares authorized,

none issued) - -

Common Stock ($0.001 par value, 10,000 shares

authorized, 4,516 shares issued and outstanding (4,687
issued and outstanding in 2017) and capital in excess of
par value 25,365 26,074

Accumulated other comprehensive income (loss) (974) 862

Retained earnings 50,172 42,083

Total Stockholders' Equity 74,563 69,019

Total Liabilities, temporary equity, and stockholders' Equi 127,963 123,249

Comments
Profit made-from
assume
the"we" aresale
product Intele.g. microprocessor price of
$500 minus cost of materials, labor
What customers pay for - products or and factory a.k.a.
services, of $100 means
Sales Revenues
gross profit of $400. Exclude general expenses and non-
Direct costs
operating of theItproducts,
items. is a "pure"donumber
not include overhead
of money madeorongeneral
the expenses Cost of Sales
product itself.
Expenses
Includes all operating expenses - selling, marketing,
administrative, operating expenses Selling, general and administrative
Self-explanatory - expenses to discover and develop new products and services Research and Development
A bit technical at this stage - charges to this time period for
Major
amountsorganizational and strategic
paid to buy company's actions toassets"
"intangible improve ourascompany's future
such Restructuring and other charges
patents which expire. Amortization of acquisition-related intangibles
subtotal of the operating expenses above Safety net - unassigned expenses
Operating income = Gross Profit - Operating Expenses = profits
made from running the business itself

Profit from selling investments made in buying stocks and bonds

of other companies, which is not our main business Other expenses)
The net amount of interest we paid minus interest we received Gains (losses) on equity investments
a.k.a. "pre-tax profit" or "earnings before taxes" Interest and other, net
income taxes that we will have to pay based on our pre-tax income
a.k.a. "the bottom line", it is the profit earned after paying all its expenses.

Each share made this amount of money (based on shares

actually held by investors)
A bit technical - earnings based on each share actually issued or
COULD HAVE BEEN issued based on outside parties' choices

used for the EPS calculations above - these are the "actual shares out there"

used for EPS calculations - these are "actually out there or could
have been issued if people chose to do so"

Consolidated Balance Sheets

Generally: Assets = Liabilities + Equity, What we own is paid for
by our borrowings or our stockholders (equity). This is the
Accounting Equation
(in millions, except for par value)
Assets = list of assets owned, sorted by how "close to cash" they are Assets
Current Assets = cash or can become cash or used in one year Current Assets
Cash in bank plus easily sold investments that can become cash quickly
Investments in securities - stocks and bonds, which can be easily sold
Money owed to us by our customers
Products ready for sale - in warehouses or stores (if applicable)
Assets that will become cash or used within one year - e.g.
prepaid insurance policies
subtotal of above

Non-Current Assets = will be around longer than 1 year, a.k.a. "long term assetsNon-current Assets
Land, buildings, equipment, and money spent to improve leased
buildings, net of depreciation
Investments in other companies intended for longer time
frames, may be an affiliated company
May include joint ventures or other non-real estate investments

a bit technical - is the excess of money paid to buy another

company over the market value of identifiable assets. E.g. when
we buy a promising startup for a lot of money. It is "goodwill"
hopefully with a lot of long term potential value.
a bit technical - these are assets that are "intangible" - e.g. value
of patents or customer lists or trademarks (e.g. when Disney
acquired Marvel Entertainment and got Spiderman)
would include refundable deposits held by our landlord
subtotal or above

Total of the above

Liabilities are our borrowings and Equity is money from or

belonging to our stockholders (owners) Liabilities, Temporary Equity, and Stockholders' E
Current (as in the assets) - owed within the next year Current Liabilities
borrowed from a bank or other lender
owe to our vendors (suppliers of our products, for example)
owed to our employees for bonuses, wages, commissions or insurance benefits

paid to us by our customers before we earned it - e.g.

prepayment for future shipments
could be for estimated costs for warranty repairs or deposits
received from its tenants
subtotal of the above

Similar to assets - these are owed more than one year from now Non-current liabilities
owed to banks or other lenders
Obligations that we have under contracts that will be honored
more than one year from now
Income taxes we expect to pay more than a year from now
a bit technical - taxes that will become due later based on our accounting
could be for long term legal settlements paid over many years into the future
subtotal of the above

a bit technical - represents the financial interests held by

outsiders (not Intel) in subsidiaries of Intel that Intel does not
entirely. E.g. If Intel buys 90% of the stock of ABC Company, the
non-controlling interests would be the other 10%, a.k.a. Minority
Interests

Stockholders' Equity

Preferred stock is not required of all companies. They are an

additional type ("class") of stock with "preferences" that give
them advantages over common stock. One example would be
payment of quarterly dividends.

Every corporation must have common shares issued to its

owners. This represents the amount paid into the company by
the shareholders. It is NOT equal to the market value of the
stock. The other items are a bit technical - par, authorized and in
excess of par.

quite technical - these are income or losses from specific types

of transactions or conditions that ARE NOT recorded on the
income statement.

This is the total of net income since the company started minus
all the dividends every paid to shareholders. "Retained" means
profits that we kept in the company.
this is the book (or accounting) value of the stockholders. Again,
it is not the market value, which is determined by the stock
markets.

total of the above, or how Intel get money to buy its assets
 Your Company: -
Year Ended month, day
x3 x2 x1 notes and hints:
Revenues
Cost of Sales enter the cost of goods sol
Gross Profit - - -
Expenses

Selling, general and administrative enter the expenses as posi

Research and Development enter the expenses as posi
Restructuring and other charges enter the expenses as posi
Amortization of acquisition-related intangibles enter the expenses as posi
Safety net - unassigned expenses enter the expenses as posi

Operating Expenses - - -
Operating Income - - -

Other expenses)
Gains (losses) on equity investments hint: enter as negative num
Interest and other, net hint: enter as negative num
Income before taxes - - -
Provision for income taxes
Net income - - -

Earnings per share - Basic

Earnings per share - Diluted

Consolidated Balance Sheets

Year Ended month, day

(in millions, except for par value) x3 x2
Assets
Current Assets
Cash and cash equivalents
Marketable securities
 Accounts Receivable, net
Inventories

Other current assets

Total Current assets - - does this match your statement?

Non-current Assets

Property, plant and equipment, net

Equity Investments
Other long-term investments

Goodwill

Identified intangible assets, net

Other long-term assets
Total Non-current assets - -

Total Assets - - does this match your statement?

Liabilities, Temporary Equity, and Stockholders' Equity

Current Liabilities
Short-term debt
Accounts Payable
Accrued compensation and benefits

Deferred income

Other accrued liabilities

Total Current Liabilities - - does this match your statement?

Non-current liabilities
Debt

Contract liabilities
Income taxes payable
Deferred income taxes
Other long-term liabilities
 Total Non-current liabilities - -

Non-controlling interests

Stockholders' Equity

Preferred stock

Common Stock

Accumulated other comprehensive income (loss)

Retained earnings

Total Stockholders' Equity - - does this match your statement?

Total Liabilities and Stockholders' Equity - - does this match your statement?
`
 notes and hints:

enter the cost of goods sold as a positiv number'

enter the expenses as positive numbers

enter the expenses as positive numbers
enter the expenses as positive numbers
enter the expenses as positive numbers
enter the expenses as positive numbers

hint: enter as negative number if revenue or gain, positive if expense or loss

hint: enter as negative number if revenue or gain, positive if expense or loss
ch your statement?

ch your statement?

ch your statement?
ch your statement?

ch your statement?