EVALUATION OF THE CORPORATION'S DISCLOSURES (using Intel Corp 2019 listed above answer questions below)

1. Segment reporting is a useful requirement that requires firms to disclose their major customers, markets and products. Study this part of the financial statement and explain how it helps you to understand the company?s financial situation better. Be specific.

2. As a user of the corporation's financial statements, is there information that you expected to see but which was not disclosed in the financial statements? Limit your comments to the information needed to complete this project.

3. Based on the corporation's presentation of the information, which disclosures did you find most difficult to understand? Explain.

4. What impressed you the most about the information that you had to examine? Be specific.

5. What surprised you the most about the corporation's disclosures? Be specific.

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CONSOLIDATED STATEMENTS OF INCOME Years Ended (In Millions, Except Per Share Amounts) Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Net revenue $ 71,965 $ 70,848 $ 62,761 Cost of sales 29,825 27,111 23,663 Gross margin 42,140 43,737 39,098 Research and development 13,362 13,543 13,035 Marketing, general and administrative 6,150 6,750 7,452 Restructuring and other charges 393 (72) 384 Amortization of acquisition-related intangibles 200 200 177 Operating expenses 20,105 20,421 21,048 Operating income 22,035 23,316 18,050 Gains (losses) on equity investments, net 1,539 (125) 2,651 Interest and other, net 484 126 (349) Income before taxes 24,058 23,317 20,352 Provision for taxes 3,010 2,264 10,751 Net income $ 21,048 $ 21,053 $ 9,601 Earnings per share-Basic 4.77 $ 4.57 $ 2.04 Earnings per share-Diluted $4 4.71 $ 4.48 $ 1.99 Weighted average shares of common stock outstanding: Basic 4,417 4,611 4,701 Diluted 4,473 4,701 4,835 See accompanying notes. CONSOLIDATED STATEMENTS OF INCOME Years Ended (In Millions, Except Per Share Amounts) Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Net revenue $ 71,965 $ 70,848 $ 62,761 Cost of sales 29,825 27,111 23,663 Gross margin 42,140 43,737 39,098 Research and development 13,362 13,543 13,035 Marketing, general and administrative 6,150 6,750 7,452 Restructuring and other charges 393 (72) 384 Amortization of acquisition-related intangibles 200 200 177 Operating expenses 20,105 20,421 21,048 Operating income 22,035 23,316 18,050 Gains (losses) on equity investments, net 1,539 (125) 2,651 Interest and other, net 484 126 (349) Income before taxes 24,058 23,317 20,352 Provision for taxes 3,010 2,264 10,751 Net income $ 21,048 $ 21,053 $ 9,601 Earnings per share-Basic 4.77 $ 4.57 $ 2.04 Earnings per share-Diluted $4 4.71 $ 4.48 $ 1.99 Weighted average shares of common stock outstanding: Basic 4,417 4,611 4,701 Diluted 4,473 4,701 4,835 See accompanying notes.

Answer rating: 100% (QA)

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