Go to www.intel.com to find Intel’s home page. Select Investor Relations from the bottom navigation menu. Then select Financials and Filings from the left navigation menu. You can access the 10-K filings by clicking on Annual Reports, 10-Ks, and Proxy Statements or SEC Filings. From there you can open the most recent 10-K.
Answer the following questions about Intel:
1. What is the nature of Intel’s operations? What type of property, plant, and equipment would you expect Intel to include in the account Property, Plant, and Equipment on its balance sheet?
2. In which section of its financial statements does Intel provide information on the method of depreciation used for property, plant, and equipment? What other disclosures concerning depreciable assets are available in this same location?
3. Does Intel have any intangible assets? Where in the footnotes does Intel provide information about the nature of any intangible assets? What type of intangibles does Intel hold? Does Intel amortize the intangibles? If so, what amortization method is used? How are intangible assets categorized on the balance sheet?
4. What does the amount listed on the balance sheet for Property, Plant, and Equipment represent—cost, market, or some other amount? If Intel purchases no additional property and equipment assets, what will happen to the net book value over time?
5. How much depreciation and amortization expense did Intel report, as shown in its most recent annual report? Why is this amount not obvious from looking at the income statement? Which financial statement provides the depreciation and amortization amount?