Unit 5 Finacial Statement

For this activity you will examine the financial data of the Intel Corporation. Publicly traded companies such as Intel make their financial statements available online.

We know from our studies that financial statements are useful for internal purposes, as well as for external purposes, for potential investors. Intel’s financial statements tell a story, and we will study some aspects of the financials and see if you can retell that story.

Go to Intel’s “Annual reports, 10-Ks and proxy statements” page at and download the 2010 PDF file titled http://www.intc.com/annuals.cfmForm 10-K. This is located in the middle of the page.

The Form 10-K PDF comprises comparative financial statements for several years, and this discussion will concentrate on these financial statements.

Question 1

Study the income statement. Concentrate on the operating expenses. Please write in your own words a paragraph – about 50 words – explaining the trends in operating expenses. Explain what you think “restructuring and asset impairment charges are.”

|In Millions of $ |2010 |2009 |2008 | | | |

|Operating Expense |12903 |13850 |11890 | | | |

|Trend |93% |116% |100% | | | |

|Operating Expense/Sales |30% |39% |32% | | | |

The trend of operating expense for the three year is not constant; it went up in 2009 by 16% while in 2010 it went down to 93% as compared to previous year. The relationship between operating expense and sales is also not constant; it was highest in 2009 and was lowest in 2010.

Restructuring and assets impairment charges are nil in 2010. It is recorded when there is...