%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 683.5 m 426.5 683.5 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 683.5 m 561.5 683.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 738.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 728.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 718.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 708.17 Td (Intel Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 698.17 Td (2200 Mission College Blvd. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 688.17 Td (Santa Clara, CA 95054-1549) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET BT /F2 14.00 Tf ET q 0 0 0 rg BT 158.55 621.25 Td (CFO Commentary on First-Quarter) Tj ET Q q 0 0 0 rg BT 374.85 621.25 Td ( 2014 Results) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 587.5720703125 m 100.666015625 587.5720703125 l s q 0 0 0 rg BT 50.00 589.45 Td (Summary) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 560.65 Td (The first quarter came in consistent with expectations, demonstrating financial growth and a solid start to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (the year) Tj ET Q q 0 0 0 rg BT 87.65 546.25 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 519.85 Td (First-quarter revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 166.95 519.85 Td ($12.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 201.96 519.85 Td ( was consistent with our expectations and up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 419.25 519.85 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 435.24 519.85 Td ( from a year ago. Gross ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 505.45 Td (mar) Tj ET Q q 0 0 0 rg BT 68.44 505.45 Td (gin of 60% was down two points from the fourth quarter and one point above our guidance driven by ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 491.05 Td (lower factory startup on 14nm and other non-production cost of sales. Spending came in at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 488.56 491.05 Td ($4.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 517.56 491.05 Td (, $100M ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 476.65 Td (above the prior outlook driven primarily by a current-period char) Tj ET Q q 0 0 0 rg BT 362.01 476.65 Td (ge related to ongoing litigation. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (Operating income for the first quarter was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 254.93 462.25 Td ($2.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 283.93 462.25 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 304.93 462.25 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 320.93 462.25 Td ( from a year ago. Earnings per share was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 519.51 462.25 Td (38 ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 447.85 Td (cents) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 74.66 447.85 Td (. ) Tj ET Q q 0 0 0 rg BT 79.99 447.85 Td (As we look forward to the second quarter of 2014, we are forecasting the midpoint of the revenue ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 433.45 Td (range at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 91.31 433.45 Td ($13.0B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 126.31 433.45 Td (, up 2% from the first quarter) Tj ET Q q 0 0 0 rg BT 265.94 433.45 Td (. ) Tj ET Q q 0 0 0 rg BT 271.72 433.45 Td (This forecast is in line with the average seasonal increase ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 419.05 Td (for the second quarter) Tj ET Q q 0 0 0 rg BT 154.29 419.05 Td (. ) Tj ET Q q 0 0 0 rg BT 160.07 419.05 Td (W) Tj ET Q q 0 0 0 rg BT 170.44 419.05 Td (e are forecasting the midpoint of the gross mar) Tj ET Q q 0 0 0 rg BT 394.15 419.05 Td (gin range for the second quarter to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 404.65 Td (be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 64.33 404.65 Td (63 percent) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 114.63 404.65 Td (, a three point increase from the first quarter) Tj ET Q q 0 0 0 rg BT 325.55 404.65 Td (. ) Tj ET Q q 0 0 0 rg BT 331.33 404.65 Td (This is primarily driven by lower factory start-) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (up costs as we ramp 14nm, higher platform* volumes, and lower platform* write-of) Tj ET Q q 0 0 0 rg BT 453.02 390.25 Td (fs as we qualify the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 375.85 Td (first 14nm products. ) Tj ET Q q 0 0 0 rg BT 149.77 375.85 Td (This is partially of) Tj ET Q q 0 0 0 rg BT 237.88 375.85 Td (fset by the increase in tablet volume and the related contra revenue ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 361.45 Td (dollars. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 335.05 Td (The first quarter 2014 results when compared to the first quarter from a year ago were:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 320.65 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 320.65 Td (Revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 143.98 320.65 Td ($12.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 178.98 320.65 Td ( was up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 218.64 320.65 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 234.64 320.65 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 263.97 320.65 Td ($12.6B) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 306.25 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 306.25 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 135.44 306.25 Td (gin of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 166.77 306.25 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 197.77 306.25 Td ( was up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 237.43 306.25 Td (3.5) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 252.43 306.25 Td ( points from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 314.09 306.25 Td (56.2%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 345.09 306.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 291.85 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 291.85 Td (Operating income of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 188.30 291.85 Td ($2.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 217.30 291.85 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 241.96 291.85 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 253.96 291.85 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 256.96 291.85 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 272.96 291.85 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 302.29 291.85 Td ($2.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 331.29 291.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 277.45 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 277.45 Td (Net income of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 157.64 277.45 Td ($1.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 186.65 277.45 Td ( was down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 240.97 277.45 Td (5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 256.97 277.45 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 286.30 277.45 Td ($2.0B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.30 277.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 263.05 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 263.05 Td (Earnings per share of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 191.29 263.05 Td (38 cents) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 230.95 263.05 Td ( was down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 285.28 263.05 Td (5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 301.27 263.05 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 330.60 263.05 Td (40 cents) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 370.26 263.05 Td ( ) Tj ET Q /GS0 gs q 85.69 0 0 59.00 429.00 687.02 cm /I1 Do Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 739.0220703125 m 146.421875 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (First Quarter) Tj ET Q q 0 0 0 rg BT 119.42 740.90 Td ( 2014) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 714.50 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 700.10 Td (Revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 107.98 700.10 Td ($12.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 142.98 700.10 Td ( was down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 197.31 700.10 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 213.31 700.10 Td ( sequentially and up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 312.62 700.10 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 328.61 700.10 Td ( from a year ago. ) Tj ET Q q 0 0 0 rg BT 413.02 700.10 Td (T) Tj ET Q q 0 0 0 rg BT 419.52 700.10 Td (otal platform* volumes, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 685.70 Td (across PC and Data Center) Tj ET Q q 0 0 0 rg BT 178.15 685.70 Td (, were down 8% when compared to the fourth quarter) Tj ET Q q 0 0 0 rg BT 434.06 685.70 Td (. ) Tj ET Q q 0 0 0 rg BT 439.85 685.70 Td (T) Tj ET Q q 0 0 0 rg BT 446.34 685.70 Td (otal platform* average ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 671.30 Td (selling prices were flat when compared to the fourth quarter) Tj ET Q q 0 0 0 rg BT 336.89 671.30 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 644.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 644.90 Td (PC Client Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 243.97 644.90 Td ($7.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 272.97 644.90 Td (, down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 308.64 644.90 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 324.63 644.90 Td ( year over year) Tj ET Q q 0 0 0 rg BT 395.59 644.90 Td (. PC Client Group platform ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 630.50 Td (volumes were up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 170.98 630.50 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 186.97 630.50 Td ( and platform average selling prices were down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 417.55 630.50 Td (3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 433.55 630.50 Td ( from a year ago. Relative ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 616.10 Td (to the fourth quarter) Tj ET Q q 0 0 0 rg BT 181.82 616.10 Td (, PC Client Group revenue was down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 363.79 616.10 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 379.79 616.10 Td ( with platform volumes down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 524.77 616.10 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 540.77 616.10 Td ( and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 601.70 Td (platform average selling prices down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 266.94 601.70 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.93 601.70 Td (. On a year) Tj ET Q q 0 0 0 rg BT 335.33 601.70 Td (-on-year basis, desktop platform volumes were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 587.30 Td (flat and desktop platform average selling prices were up 4%. On a year) Tj ET Q q 0 0 0 rg BT 426.63 587.30 Td (-on-year basis, notebook ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 572.90 Td (platform volumes were up 2% and notebook platform average selling prices were down 8%. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 558.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 558.50 Td (Data Center Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 254.60 558.50 Td ($3.1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 283.60 558.50 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 304.60 558.50 Td (1) Tj ET Q q 0 0 0 rg BT 310.16 558.50 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.15 558.50 Td ( on a year) Tj ET Q q 0 0 0 rg BT 372.89 558.50 Td (-on-year basis. Platform volumes were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 544.10 Td (up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 101.00 544.10 Td (3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 117.00 544.10 Td ( and platform average selling prices were up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 332.91 544.10 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 348.90 544.10 Td ( over this same horizon. Data Center Group ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 529.70 Td (revenue was down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 178.30 529.70 Td (5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 194.30 529.70 Td ( from the fourth quarter with platform volumes down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 452.57 529.70 Td (7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 468.57 529.70 Td ( and platform ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 515.30 Td (average selling prices up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 207.95 515.30 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 223.95 515.30 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 500.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 500.90 Td (Internet of ) Tj ET Q q 0 0 0 rg BT 139.09 500.90 Td (Things Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 283.38 500.90 Td ($482M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 318.05 500.90 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 339.05 500.90 Td (32%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 361.05 500.90 Td ( on a year) Tj ET Q q 0 0 0 rg BT 407.79 500.90 Td (-over) Tj ET Q q 0 0 0 rg BT 432.86 500.90 Td (-year basis, and down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 486.50 Td (10%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 108.00 486.50 Td ( from the fourth quarter) Tj ET Q q 0 0 0 rg BT 220.63 486.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 472.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 472.10 Td (Mobile and Communications Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 336.95 472.10 Td ($156M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 371.62 472.10 Td (, down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 407.28 472.10 Td (61%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 429.28 472.10 Td ( on a year) Tj ET Q q 0 0 0 rg BT 476.01 472.10 Td (-over) Tj ET Q q 0 0 0 rg BT 501.09 472.10 Td (-year basis, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 457.70 Td (and down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 135.99 457.70 Td (52%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 157.99 457.70 Td ( from the fourth quarter) Tj ET Q q 0 0 0 rg BT 270.62 457.70 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 443.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 443.30 Td (The software and services operating segments had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 384.22 443.30 Td ($553M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 418.89 443.30 Td (, up 6% on a year) Tj ET Q q 0 0 0 rg BT 502.62 443.30 Td (-over) Tj ET Q q 0 0 0 rg BT 527.70 443.30 Td (-year ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 428.90 Td (basis, and down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 165.99 428.90 Td (6%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 181.99 428.90 Td ( from the fourth quarter) Tj ET Q q 0 0 0 rg BT 294.62 428.90 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 414.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 414.50 Td (All other operating segments had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 302.26 414.50 Td ($545M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 336.93 414.50 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 357.93 414.50 Td (18%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 379.93 414.50 Td ( on a year) Tj ET Q q 0 0 0 rg BT 426.66 414.50 Td (-over) Tj ET Q q 0 0 0 rg BT 451.74 414.50 Td (-year basis, and up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 544.71 414.50 Td (9%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 560.71 414.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 400.10 Td (from the fourth quarter) Tj ET Q q 0 0 0 rg BT 195.63 400.10 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 373.70 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 373.70 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 359.30 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 359.30 Td (gin dollars were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 179.75 359.30 Td ($7.6B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 208.75 359.30 Td (, down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 244.42 359.30 Td ($945M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 279.09 359.30 Td ( compared to the fourth quarter) Tj ET Q q 0 0 0 rg BT 428.04 359.30 Td (. Gross mar) Tj ET Q q 0 0 0 rg BT 483.48 359.30 Td (gin of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 514.81 359.30 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 545.80 359.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 344.90 Td (was 2.3 points lower than the fourth quarter and up approximately 1.0 point when compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 330.50 Td (midpoint of the Outlook provided on Jan. 16.) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 302.500390625 m 279.078125 302.500390625 l s q 0 0 0 rg BT 50.00 304.10 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 304.10 Td (gin Reconciliation: Q413 to Q114 \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 279.078125 302.500390625 m 310.07421875 302.500390625 l s q 0 0 0 rg BT 279.08 304.10 Td (62.0%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 310.07421875 302.500390625 m 325.408203125 302.500390625 l s q 0 0 0 rg BT 310.07 304.10 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 325.408203125 302.500390625 m 356.404296875 302.500390625 l s q 0 0 0 rg BT 325.41 304.10 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 356.404296875 302.500390625 m 392.0703125 302.500390625 l s q 0 0 0 rg BT 356.40 304.10 Td (, down ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 392.0703125 302.500390625 m 407.0703125 302.500390625 l s q 0 0 0 rg BT 392.07 304.10 Td (2.3) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 407.0703125 302.500390625 m 443.404296875 302.500390625 l s q 0 0 0 rg BT 407.07 304.10 Td ( points\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 289.70 Td ([note: point attributions are approximate] ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 275.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 275.30 Td (- 1.5 points:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.67 275.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 275.30 Td (Higher platform* write-of) Tj ET Q q 0 0 0 rg BT 283.07 275.30 Td (fs \(primarily higher pre-qualification product costs on ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 260.90 Td (Broadwell and lower sell-through of previously non-qualified units\)) Tj ET Q BT /F1 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 484.26 260.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 68.00 246.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 246.50 Td (- 1.0 point:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.00 246.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 246.50 Td (Lower platform* volumes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 232.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 232.10 Td (+ 0.5 point:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.77 232.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 232.10 Td (Lower factory start-up costs ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 204.10039062500005 m 321.412109375 204.10039062500005 l s q 0 0 0 rg BT 50.00 205.70 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 205.70 Td (gin Reconciliation: Q114 Outlook to Q114 \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 321.412109375 204.10039062500005 m 343.408203125 204.10039062500005 l s q 0 0 0 rg BT 321.41 205.70 Td (59%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 343.408203125 204.10039062500005 m 443.1640625 204.10039062500005 l s q 0 0 0 rg BT 343.41 205.70 Td ( +/- couple points to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 443.1640625 204.10039062500005 m 474.16015625 204.10039062500005 l s q 0 0 0 rg BT 443.16 205.70 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 474.16015625 204.10039062500005 m 548.31640625 204.10039062500005 l s q 0 0 0 rg BT 474.16 205.70 Td (, up ~1.0 point\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 191.30 Td ([note: point attributions are approximate]) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 176.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 176.90 Td (+ 1.0 point:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 176.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 176.90 Td (Lower factory start-up and other non-production cost of sales) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 148.900390625 m 279.078125 148.900390625 l s q 0 0 0 rg BT 50.00 150.50 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 150.50 Td (gin Reconciliation: Q113 to Q114 \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 279.078125 148.900390625 m 310.07421875 148.900390625 l s q 0 0 0 rg BT 279.08 150.50 Td (56.2%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 310.07421875 148.900390625 m 325.408203125 148.900390625 l s q 0 0 0 rg BT 310.07 150.50 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 325.408203125 148.900390625 m 356.404296875 148.900390625 l s q 0 0 0 rg BT 325.41 150.50 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 356.404296875 148.900390625 m 377.404296875 148.900390625 l s q 0 0 0 rg BT 356.40 150.50 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 377.404296875 148.900390625 m 392.404296875 148.900390625 l s q 0 0 0 rg BT 377.40 150.50 Td (3.5) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 392.404296875 148.900390625 m 428.73828125 148.900390625 l s q 0 0 0 rg BT 392.40 150.50 Td ( points\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (When compared to the first quarter from a year ago, gross mar) Tj ET Q q 0 0 0 rg BT 349.67 136.10 Td (gin was up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 404.66 136.10 Td (3.5) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 419.66 136.10 Td ( points primarily due to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 121.70 Td (lower platform* unit costs on 22nm and lower excess capacity char) Tj ET Q q 0 0 0 rg BT 373.02 121.70 Td (ges partially of) Tj ET Q q 0 0 0 rg BT 444.78 121.70 Td (fset by the ramp of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 107.30 Td (tablet volume.) Tj ET Q BT /F1 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 92.90 Td ( ) Tj ET Q endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 535.05 772.60 Td (Page 3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (^^ Cash and cash equivalents, short-term investments, andtrading assets) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 726.50 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 225.99 726.50 Td ($4.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 255.00 726.50 Td (, up $100M from the Outlook provided in January) Tj ET Q q 0 0 0 rg BT 494.52 726.50 Td (. ) Tj ET Q q 0 0 0 rg BT 500.30 726.50 Td (This ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (overage was primarily driven by a current-period char) Tj ET Q q 0 0 0 rg BT 309.34 712.10 Td (ge related to ongoing litigation. R&D and MG&A) Tj ET Q q 0 0 0 rg BT 549.31 712.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (as a percentage of revenue was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 201.92 697.70 Td (38.3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 232.91 697.70 Td (, up from the fourth quarter) Tj ET Q q 0 0 0 rg BT 363.54 697.70 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 671.30 Td (Depreciation was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 136.63 671.30 Td ($1.7B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 165.63 671.30 Td (, in line with expectations. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 644.90 Td (Amortization of acquisition-related intangibles was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 299.60 644.90 Td ($73M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 328.27 644.90 Td (, in line with expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 618.50 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 618.50 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 604.10 Td (Gains and losses on equity investments and interest and other income was a net gain of $160M, higher ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 589.70 Td (than the $2M gain in the fourth quarter and higher than our Outlook of a $25M net gain. ) Tj ET Q q 0 0 0 rg BT 476.02 589.70 Td (The increase ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 575.30 Td (relative to the fourth quarter was driven primarily by the gain on the sale of Intel Media.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 548.90 Td (The provision for taxes in the first quarter was at a ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 295.59 548.90 Td (27.7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.59 548.90 Td ( tax rate, in line with expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 522.50 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (On the balance sheet, total cash investments^^ ended the quarter at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 373.81 508.10 Td ($19.0B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 408.82 508.10 Td (, down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 444.48 508.10 Td ($1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 464.49 508.10 Td ( from the fourth ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 493.70 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 493.70 Td (. $8.0B of the total ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 176.30 493.70 Td ($19B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 202.31 493.70 Td ( in total cash investments^^ is held in U.S. subsidiaries. Cash flow from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 479.30 Td (operations in the first quarter was approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 286.26 479.30 Td ($3.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.27 479.30 Td (. During the first quarter) Tj ET Q q 0 0 0 rg BT 431.75 479.30 Td (, we paid approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 464.90 Td ($1.1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 79.00 464.90 Td ( in dividends, purchased ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 198.65 464.90 Td ($2.7B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 227.65 464.90 Td ( in capital assets and repurchased ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 390.25 464.90 Td ($0.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 419.26 464.90 Td ( in stock. ) Tj ET Q q 0 0 0 rg BT 465.71 464.90 Td (T) Tj ET Q q 0 0 0 rg BT 472.20 464.90 Td (otal inventories ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 450.50 Td (were down ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 105.98 450.50 Td ($409M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 140.65 450.50 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 424.10 Td ( Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (The total number of employees was down approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.59 409.70 Td (1K) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 341.26 409.70 Td ( from the fourth quarter at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 469.21 409.70 Td (106K) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 495.88 409.70 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 383.30 Td (Diluted shares outstanding increased by 14M shares from the fourth quarter and increased by 37M shares ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 368.90 Td (from the first quarter a year ago.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 318.8220703125 m 137.345703125 318.8220703125 l s q 0 0 0 rg BT 50.00 320.70 Td (Q2 2014 Outlook) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 301.30 Td (Intel) Tj ET Q q 0 0 0 rg BT 75.32 301.30 Td (s Business Outlook for the second quarter does not include the potential impact of any business ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 286.90 Td (combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 272.50 Td (may be completed after ) Tj ET Q q 0 0 0 rg BT 165.28 272.50 Td (April 15th. ) Tj ET Q q 0 0 0 rg BT 220.73 272.50 Td (The mid-point of the forecast ranges will be referred to when making ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (comparisons to specific periods.) Tj ET Q BT /F1 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 204.63 258.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 224.30 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 209.90 Td (Revenue is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 178.29 209.90 Td ($13.0B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 213.29 209.90 Td (, plus or minus ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 287.63 209.90 Td ($500M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 322.30 209.90 Td ( in the second quarter) Tj ET Q q 0 0 0 rg BT 424.93 209.90 Td (. ) Tj ET Q q 0 0 0 rg BT 430.71 209.90 Td (The midpoint of this range ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 195.50 Td (is up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 76.00 195.50 Td (2%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 92.00 195.50 Td ( from the first quarter) Tj ET Q q 0 0 0 rg BT 194.63 195.50 Td (. ) Tj ET Q q 0 0 0 rg BT 200.42 195.50 Td (This forecast is in line with the average seasonal increase for the second ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 181.10 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 181.10 Td (.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 740.90 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 726.50 Td (gin in the second quarter is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 304.37 726.50 Td (63%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.37 726.50 Td (, plus or minus a couple points, up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 494.36 726.50 Td (3.3) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 509.36 726.50 Td ( points ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (from the first quarter) Tj ET Q q 0 0 0 rg BT 149.63 712.10 Td (.) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 684.100390625 m 321.412109375 684.100390625 l s q 0 0 0 rg BT 50.00 685.70 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 685.70 Td (gin Reconciliation: Q114 to Q214 Outlook \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 321.412109375 684.100390625 m 352.408203125 684.100390625 l s q 0 0 0 rg BT 321.41 685.70 Td (59.7%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 352.408203125 684.100390625 m 367.7421875 684.100390625 l s q 0 0 0 rg BT 352.41 685.70 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 367.7421875 684.100390625 m 389.73828125 684.100390625 l s q 0 0 0 rg BT 367.74 685.70 Td (63%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 389.73828125 684.100390625 m 486.482421875 684.100390625 l s q 0 0 0 rg BT 389.74 685.70 Td ( +/- a couple points\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 671.30 Td ([note: point attributions are approximate] ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 656.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 656.90 Td (+ 2.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 656.90 Td (Lower factory start-up costs primarily on 14nm) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 642.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 642.50 Td (+ 0.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 642.50 Td (Higher platform* volume ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 628.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 628.10 Td (+ 0.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 628.10 Td (Lower platform* write-of) Tj ET Q q 0 0 0 rg BT 281.07 628.10 Td (fs on the qualification of the first 14nm products) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 613.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 613.70 Td (- 0.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 613.70 Td (T) Tj ET Q q 0 0 0 rg BT 164.49 613.70 Td (ablet impact) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 587.30 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 572.90 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 572.90 Td ( is expected to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 359.94 572.90 Td ($4.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 388.95 572.90 Td (, down $100M from the prior ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 558.50 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 558.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (Depreciation is forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 265.92 532.10 Td ($1.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 294.92 532.10 Td (, up $200M from the first quarter as we ramp 14nm ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 517.70 Td (capacity) Tj ET Q q 0 0 0 rg BT 89.19 517.70 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 491.30 Td (Restructuring char) Tj ET Q q 0 0 0 rg BT 138.75 491.30 Td (ges are forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.34 491.30 Td ($100M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 350.01 491.30 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 464.90 Td (Amortization of acquisition-related intangibles is forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 428.88 464.90 Td ($75M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 457.55 464.90 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 438.50 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (Gains and losses from equity investments and interest and other income are expected to be a net impact of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 122.31 409.70 Td ($75M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 150.98 409.70 Td (, compared to a net gain of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.27 409.70 Td ($160M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 316.94 409.70 Td ( in the first quarter) Tj ET Q q 0 0 0 rg BT 405.58 409.70 Td (. ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 364.6220703125 m 119.01171875 364.6220703125 l s q 0 0 0 rg BT 50.00 366.50 Td (2014 Outlook) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td (The Outlook for full year 2014 does not include the potential impact of any business combinations, asset ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 332.70 Td (acquisitions, divestitures, strategic investments and other significant transactions that may be completed ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 318.30 Td (after ) Tj ET Q q 0 0 0 rg BT 74.32 318.30 Td (April 15th. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 291.90 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 277.50 Td (Revenue for the year is expected to be flat to 2013, unchanged from prior forecast. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 251.10 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 236.70 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 236.70 Td (gin for the year is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 259.38 236.70 Td (61 percent) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 309.69 236.70 Td (, plus or minus a few points. ) Tj ET Q q 0 0 0 rg BT 448.46 236.70 Td (The mid-point is up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 222.30 Td (one point from the prior outlook driven by lower unit costs across both our platform* and tablet products ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 207.90 Td (and lower non-production manufacturing costs. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 181.50 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 167.10 Td ( for the year is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 345.93 167.10 Td ($18.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 380.94 167.10 Td (, plus or minus ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 455.28 167.10 Td ($200M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 489.95 167.10 Td (, higher than ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 152.70 Td (our prior expectation of $18.6B.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 126.30 Td (Amortization of acquisition-related intangibles is forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 428.88 126.30 Td ($300M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 463.55 126.30 Td ( for 2014, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 111.90 Td (unchanged from prior expectations.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 85.50 Td (Depreciation for the year is still forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 345.22 85.50 Td ($7.4B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 374.23 85.50 Td (.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 5) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 740.90 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (The tax rate for each of the remaining quarters of 2014 is still expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 420.53 726.50 Td (27%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 442.53 726.50 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (Capital spending is forecast to be $1) Tj ET Q q 0 0 0 rg BT 224.18 683.30 Td (1.0B plus or minus $500M, approximately flat to 2013, unchanged ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (from prior forecast. ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 623.8220703125 m 114.9921875 623.8220703125 l s q 0 0 0 rg BT 50.00 625.70 Td (Risk Factors) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 611.30 Td (The above statements and any others in this document that refer to plans and expectations for the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td (second quarter) Tj ET Q q 0 0 0 rg BT 119.82 596.90 Td (, the year and the future are forward-looking statements that involve a number of risks and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (uncertainties. ) Tj ET Q q 0 0 0 rg BT 117.09 582.50 Td (W) Tj ET Q q 0 0 0 rg BT 127.46 582.50 Td (ords such as anticipates, expects, intends, plans, believes, seeks, estimates, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (may) Tj ET Q q 0 0 0 rg BT 75.21 568.10 Td (, will, should and their variations identify forward-looking statements. Statements that refer to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 553.70 Td (or are based on projections, uncertain events or assumptions also identify forward-looking statements. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td (Many factors could af) Tj ET Q q 0 0 0 rg BT 155.41 539.30 Td (fect Intel) Tj ET Q q 0 0 0 rg BT 201.72 539.30 Td (s actual results, and variances from Intel) Tj ET Q q 0 0 0 rg BT 398.64 539.30 Td (s current expectations regarding ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 524.90 Td (such factors could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 261.38 524.90 Td (fer materially from those expressed in these forward-looking ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 510.50 Td (statements. Intel presently considers the following to be important factors that could cause actual results to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (dif) Tj ET Q q 0 0 0 rg BT 63.11 496.10 Td (fer materially from the company) Tj ET Q q 0 0 0 rg BT 222.38 496.10 Td (s expectations.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 293.03 496.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 481.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 481.70 Td (Demand for Intel's products is highly variable and, in recent years, Intel has experienced declining ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (orders in the traditional PC market segment. Demand could be dif) Tj ET Q q 0 0 0 rg BT 402.04 467.30 Td (ferent from Intel's expectations ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 452.90 Td (due to factors including changes in business and economic conditions; consumer confidence or ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 438.50 Td (income levels; customer acceptance of Intel) Tj ET Q q 0 0 0 rg BT 299.57 438.50 Td (s and competitors) Tj ET Q q 0 0 0 rg BT 387.32 438.50 Td ( products; competitive and pricing ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 424.10 Td (pressures, including actions taken by competitors; supply constraints and other disruptions ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 409.70 Td (af) Tj ET Q q 0 0 0 rg BT 95.11 409.70 Td (fecting customers; changes in customer order patterns including order cancellations; and changes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 395.30 Td (in the level of inventory at customers.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 267.62 395.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 380.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 380.90 Td (Intel operates in highly competitive industries and its operations have high costs that are either ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 366.50 Td (fixed or dif) Tj ET Q q 0 0 0 rg BT 139.77 366.50 Td (ficult to reduce in the short term.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 297.38 366.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 352.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 352.10 Td (Intel's gross mar) Tj ET Q q 0 0 0 rg BT 164.60 352.10 Td (gin percentage could vary significantly from expectations based on capacity ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 337.70 Td (utilization; variations in inventory valuation, including variations related to the timing of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 323.30 Td (qualifying products for sale; changes in revenue levels; segment product mix; the timing and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 308.90 Td (execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 294.50 Td (in unit costs; defects or disruptions in the supply of materials or resources; and product ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td (manufacturing quality/yields. ) Tj ET Q q 0 0 0 rg BT 230.08 280.10 Td (V) Tj ET Q q 0 0 0 rg BT 237.42 280.10 Td (ariations in gross mar) Tj ET Q q 0 0 0 rg BT 340.85 280.10 Td (gin may also be caused by the timing of Intel ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 265.70 Td (product introductions and related expenses, including marketing expenses, and Intel's ability to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 251.30 Td (respond quickly to technological developments and to introduce new products or incorporate new ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 236.90 Td (features into existing products, which may result in restructuring and asset impairment char) Tj ET Q q 0 0 0 rg BT 524.66 236.90 Td (ges.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 543.66 236.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 222.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 222.50 Td (The tax rate expectation is based on current tax law and current expected income. ) Tj ET Q q 0 0 0 rg BT 479.94 222.50 Td (The tax rate may ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (be af) Tj ET Q q 0 0 0 rg BT 109.43 208.10 Td (fected by the jurisdictions in which profits are determined to be earned and taxed; changes in ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 193.70 Td (the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 179.30 Td (with various tax authorities, including payment of interest and penalties; and the ability to realize ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 164.90 Td (deferred tax assets.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 177.62 164.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 150.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 150.50 Td (Gains or losses from equity securities and interest and other could vary from expectations ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 136.10 Td (depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 121.70 Td (and equity investments; interest rates; cash balances; and changes in fair value of derivative ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 107.30 Td (instruments.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 145.00 107.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 92.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 92.90 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 92.90 Td (fected by adverse economic, social, political and physical/infrastructure ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 78.50 Td (conditions in countries where Intel, its customers or its suppliers operate, including military ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 64.10 Td (conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 49.70 Td (fluctuations in currency exchange rates.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 276.92 49.70 Td ( ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 6) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 740.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 740.70 Td (Intel) Tj ET Q q 0 0 0 rg BT 111.32 740.70 Td (s results could be af) Tj ET Q q 0 0 0 rg BT 206.42 740.70 Td (fected by the timing of closing of acquisitions, divestitures and other ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 726.30 Td (significant transactions.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 199.97 726.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 711.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 711.90 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 711.90 Td (fected by adverse ef) Tj ET Q q 0 0 0 rg BT 301.30 711.90 Td (fects associated with product defects and errata ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 697.50 Td (\(deviations from published specifications\), and by litigation or regulatory matters involving ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 683.10 Td (intellectual property) Tj ET Q q 0 0 0 rg BT 182.18 683.10 Td (, stockholder) Tj ET Q q 0 0 0 rg BT 243.69 683.10 Td (, consumer) Tj ET Q q 0 0 0 rg BT 295.86 683.10 Td (, antitrust, disclosure and other issues, such as the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 668.70 Td (litigation and regulatory matters described in Intel's SEC filings. ) Tj ET Q q 0 0 0 rg BT 397.44 668.70 Td (An unfavorable ruling could ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 654.30 Td (include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 639.90 Td (more products, precluding particular business practices, impacting Intel) Tj ET Q q 0 0 0 rg BT 432.89 639.90 Td (s ability to design its ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 625.50 Td (products, or requiring other remedies such as compulsory licensing of intellectual property) Tj ET Q q 0 0 0 rg BT 520.43 625.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 523.43 625.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 596.70 Td (A) Tj ET Q q 0 0 0 rg BT 58.00 596.70 Td ( detailed discussion of these and other factors that could af) Tj ET Q q 0 0 0 rg BT 339.03 596.70 Td (fect Intel) Tj ET Q q 0 0 0 rg BT 385.34 596.70 Td (s results is included in Intel) Tj ET Q q 0 0 0 rg BT 520.32 596.70 Td (s SEC ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 582.30 Td (filings, including the company) Tj ET Q q 0 0 0 rg BT 199.98 582.30 Td (s most recent report on Form 10-K.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 369.61 582.30 Td ( ) Tj ET Q endstream endobj 15 0 obj <> /View <>>>>> endobj 16 0 obj <> /View <>>>>> endobj 17 0 obj <> endobj 18 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;