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476.65 Td (which ) Tj ET Q q 0 0 0 rg BT 170.78 476.65 Td (was ) Tj ET Q q 0 0 0 rg BT 191.89 476.65 Td (up ) Tj ET Q q 0 0 0 rg BT 206.35 476.65 Td (12% ) Tj ET Q q 0 0 0 rg BT 230.79 476.65 Td (from ) Tj ET Q q 0 0 0 rg BT 256.57 476.65 Td (a ) Tj ET Q q 0 0 0 rg BT 264.35 476.65 Td (year ) Tj ET Q q 0 0 0 rg BT 287.45 476.65 Td (ago. ) Tj ET Q q 0 0 0 rg BT 310.23 476.65 Td (Earnings ) Tj ET Q q 0 0 0 rg BT 355.34 476.65 Td (per ) Tj ET Q q 0 0 0 rg BT 373.11 476.65 Td (share ) Tj ET Q q 0 0 0 rg BT 400.88 476.65 Td (was ) Tj ET Q q 0 0 0 rg BT 422.00 476.65 Td (51 ) Tj ET Q q 0 0 0 rg BT 436.45 476.65 Td (cents ) Tj ET Q q 0 0 0 rg BT 463.56 476.65 Td (which ) Tj ET Q q 0 0 0 rg BT 495.34 476.65 Td (is ) Tj ET Q q 0 0 0 rg BT 505.79 476.65 Td (up ) Tj ET Q q 0 0 0 rg BT 520.24 476.65 Td (6% ) Tj ET Q q 0 0 0 rg BT 538.69 476.65 Td (from ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (a ) Tj ET Q q 0 0 0 rg BT 58.33 462.25 Td (year ) Tj ET Q q 0 0 0 rg BT 81.97 462.25 Td (ago. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 435.85 Td (For ) Tj ET Q q 0 0 0 rg BT 69.75 435.85 Td (full ) Tj ET Q q 0 0 0 rg BT 89.50 435.85 Td (year ) Tj ET Q q 0 0 0 rg BT 113.23 435.85 Td (2013 ) Tj ET Q q 0 0 0 rg BT 140.32 435.85 Td (revenue ) Tj ET Q q 0 0 0 rg BT 181.37 435.85 Td (was ) Tj ET Q q 0 0 0 rg BT 203.12 435.85 Td ($52.7B, ) Tj ET Q q 0 0 0 rg BT 244.21 435.85 Td (gross ) Tj ET Q q 0 0 0 rg BT 272.63 435.85 Td (mar) Tj ET Q q 0 0 0 rg BT 291.07 435.85 Td (gin ) Tj ET Q q 0 0 0 rg BT 309.48 435.85 Td (was ) Tj ET Q q 0 0 0 rg BT 331.23 435.85 Td (60%, ) Tj ET Q q 0 0 0 rg BT 359.31 435.85 Td (operating ) Tj ET Q q 0 0 0 rg BT 407.71 435.85 Td (income ) Tj ET Q q 0 0 0 rg BT 446.11 435.85 Td (was ) Tj ET Q q 0 0 0 rg BT 467.86 435.85 Td ($12.3B, ) Tj ET Q q 0 0 0 rg BT 508.95 435.85 Td (net ) Tj ET Q q 0 0 0 rg BT 526.69 435.85 Td (income ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 421.45 Td (was ) Tj ET Q q 0 0 0 rg BT 70.99 421.45 Td ($9.6B, ) Tj ET Q q 0 0 0 rg BT 105.31 421.45 Td (and ) Tj ET Q q 0 0 0 rg BT 124.96 421.45 Td (earnings ) Tj ET Q q 0 0 0 rg BT 167.94 421.45 Td (per ) Tj ET Q q 0 0 0 rg BT 185.58 421.45 Td (share ) Tj ET Q q 0 0 0 rg BT 213.22 421.45 Td (was ) Tj ET Q q 0 0 0 rg BT 234.21 421.45 Td ($1.89. ) Tj ET Q q 0 0 0 rg BT 266.37 421.45 Td (While ) Tj ET Q q 0 0 0 rg BT 298.01 421.45 Td (the ) Tj ET Q q 0 0 0 rg BT 314.99 421.45 Td (PC ) Tj ET Q q 0 0 0 rg BT 331.99 421.45 Td (market ) Tj ET Q q 0 0 0 rg BT 367.63 421.45 Td (was ) Tj ET Q q 0 0 0 rg BT 388.62 421.45 Td (down ) Tj ET Q q 0 0 0 rg BT 417.61 421.45 Td (on ) Tj ET Q q 0 0 0 rg BT 431.93 421.45 Td (the ) Tj ET Q q 0 0 0 rg BT 448.91 421.45 Td (year) Tj ET Q q 0 0 0 rg BT 469.08 421.45 Td (, ) Tj ET Q q 0 0 0 rg BT 474.41 421.45 Td (we ) Tj ET Q q 0 0 0 rg BT 490.72 421.45 Td (saw ) Tj ET Q q 0 0 0 rg BT 511.71 421.45 Td (the ) Tj ET Q q 0 0 0 rg BT 528.69 421.45 Td (market ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 407.05 Td (stabilize ) Tj ET Q q 0 0 0 rg BT 93.21 407.05 Td (in ) Tj ET Q q 0 0 0 rg BT 105.77 407.05 Td (the ) Tj ET Q q 0 0 0 rg BT 123.66 407.05 Td (back ) Tj ET Q q 0 0 0 rg BT 149.54 407.05 Td (half ) Tj ET Q q 0 0 0 rg BT 171.42 407.05 Td (of ) Tj ET Q q 0 0 0 rg BT 184.65 407.05 Td (the ) Tj ET Q q 0 0 0 rg BT 202.53 407.05 Td (year ) Tj ET Q q 0 0 0 rg BT 226.41 407.05 Td (with ) Tj ET Q q 0 0 0 rg BT 250.97 407.05 Td (fourth ) Tj ET Q q 0 0 0 rg BT 283.52 407.05 Td (quarter ) Tj ET Q q 0 0 0 rg BT 320.73 407.05 Td (PC ) Tj ET Q q 0 0 0 rg BT 338.63 407.05 Td (units ) Tj ET Q q 0 0 0 rg BT 365.20 407.05 Td (up ) Tj ET Q q 0 0 0 rg BT 380.42 407.05 Td (from ) Tj ET Q q 0 0 0 rg BT 406.98 407.05 Td (a ) Tj ET Q q 0 0 0 rg BT 415.53 407.05 Td (year ) Tj ET Q q 0 0 0 rg BT 439.41 407.05 Td (ago. ) Tj ET Q q 0 0 0 rg BT 462.25 407.05 Td (Additionally ) Tj ET Q q 0 0 0 rg BT 526.14 407.05 Td (we ) Tj ET Q q 0 0 0 rg BT 543.36 407.05 Td (saw ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 392.65 Td (strong ) Tj ET Q q 0 0 0 rg BT 82.35 392.65 Td (tablet ) Tj ET Q q 0 0 0 rg BT 111.35 392.65 Td (growth ) Tj ET Q q 0 0 0 rg BT 147.69 392.65 Td (in ) Tj ET Q q 0 0 0 rg BT 159.37 392.65 Td (the ) Tj ET Q q 0 0 0 rg BT 176.38 392.65 Td (back ) Tj ET Q q 0 0 0 rg BT 201.38 392.65 Td (half ) Tj ET Q q 0 0 0 rg BT 222.38 392.65 Td (of ) Tj ET Q q 0 0 0 rg BT 234.72 392.65 Td (the ) Tj ET Q q 0 0 0 rg BT 251.73 392.65 Td (year) Tj ET Q q 0 0 0 rg BT 271.90 392.65 Td (, ) Tj ET Q q 0 0 0 rg BT 277.24 392.65 Td (and ) Tj ET Q q 0 0 0 rg BT 296.92 392.65 Td (inclusive ) Tj ET Q q 0 0 0 rg BT 342.59 392.65 Td (of ) Tj ET Q q 0 0 0 rg BT 354.93 392.65 Td (PC ) Tj ET Q q 0 0 0 rg BT 371.96 392.65 Td (and ) Tj ET Q q 0 0 0 rg BT 391.63 392.65 Td (tablets, ) Tj ET Q q 0 0 0 rg BT 428.30 392.65 Td (our ) Tj ET Q q 0 0 0 rg BT 446.64 392.65 Td (unit ) Tj ET Q q 0 0 0 rg BT 467.66 392.65 Td (growth ) Tj ET Q q 0 0 0 rg BT 504.00 392.65 Td (in ) Tj ET Q q 0 0 0 rg BT 515.68 392.65 Td (the ) Tj ET Q q 0 0 0 rg BT 532.69 392.65 Td (fourth ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (quarter ) Tj ET Q q 0 0 0 rg BT 86.71 378.25 Td (was ) Tj ET Q q 0 0 0 rg BT 108.10 378.25 Td (up ) Tj ET Q q 0 0 0 rg BT 122.82 378.25 Td (almost ) Tj ET Q q 0 0 0 rg BT 157.55 378.25 Td (10% ) Tj ET Q q 0 0 0 rg BT 182.27 378.25 Td (from ) Tj ET Q q 0 0 0 rg BT 208.33 378.25 Td (a ) Tj ET Q q 0 0 0 rg BT 216.38 378.25 Td (year ) Tj ET Q q 0 0 0 rg BT 239.76 378.25 Td (ago. ) Tj ET Q q 0 0 0 rg BT 262.81 378.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 284.20 378.25 Td (Data ) Tj ET Q q 0 0 0 rg BT 309.58 378.25 Td (Center ) Tj ET Q q 0 0 0 rg BT 344.29 378.25 Td (Group ) Tj ET Q q 0 0 0 rg BT 377.68 378.25 Td (continued ) Tj ET Q q 0 0 0 rg BT 427.73 378.25 Td (to ) Tj ET Q q 0 0 0 rg BT 439.79 378.25 Td (benefit ) Tj ET Q q 0 0 0 rg BT 475.84 378.25 Td (from ) Tj ET Q q 0 0 0 rg BT 501.89 378.25 Td (the ) Tj ET Q q 0 0 0 rg BT 519.28 378.25 Td (build ) Tj ET Q q 0 0 0 rg BT 546.67 378.25 Td (out ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 363.85 Td (of ) Tj ET Q q 0 0 0 rg BT 63.00 363.85 Td (the ) Tj ET Q q 0 0 0 rg BT 80.66 363.85 Td (cloud ) Tj ET Q q 0 0 0 rg BT 110.32 363.85 Td (and ) Tj ET Q q 0 0 0 rg BT 130.64 363.85 Td (our ) Tj ET Q q 0 0 0 rg BT 149.64 363.85 Td (strong ) Tj ET Q q 0 0 0 rg BT 182.64 363.85 Td (product ) Tj ET Q q 0 0 0 rg BT 222.29 363.85 Td (portfolio ) Tj ET Q q 0 0 0 rg BT 267.29 363.85 Td (and ) Tj ET Q q 0 0 0 rg BT 287.62 363.85 Td (posted ) Tj ET Q q 0 0 0 rg BT 321.95 363.85 Td (another ) Tj ET Q q 0 0 0 rg BT 360.93 363.85 Td (year ) Tj ET Q q 0 0 0 rg BT 384.58 363.85 Td (of ) Tj ET Q q 0 0 0 rg BT 397.57 363.85 Td (growth. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 337.45 Td (The full year 2013 results when compared to the full year 2012 results were the following:) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 323.05 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 323.05 Td (Revenue of $52.7B was down 1%, from $53.3B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 308.65 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 308.65 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 135.44 308.65 Td (gin of 59.8% was down 2.3 points from 62.1%) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 294.25 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 294.25 Td (Operating income of $12.3B was down 16% from $14.6B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 279.85 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 279.85 Td (Net income of $9.6B was down 13% from $1) Tj ET Q q 0 0 0 rg BT 303.85 279.85 Td (1.0B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 265.45 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 265.45 Td (Earnings per share of $1.89 was down 1) Tj ET Q q 0 0 0 rg BT 278.18 265.45 Td (1% from $2.13) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 236.65 Td (The fourth quarter 2013 results when compared to the fourth quarter from a year ago were the following:) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 222.25 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 222.25 Td (Revenue of $13.8B was up 3%, from $13.5B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 207.85 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 207.85 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 135.44 207.85 Td (gin of 62.0% was up 4.0 points from 58.0%) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 193.45 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 193.45 Td (Operating income of $3.5B was up 12% from $3.2B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 179.05 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 179.05 Td (Net income of $2.6B was up 6% from $2.5B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 164.65 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 164.65 Td (Earnings per share of $0.51 was up 6% from $0.48) 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 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 2) Tj ET Q BT /F2 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 /F3 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 157.765625 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Fourth Quarter) Tj ET Q q 0 0 0 rg BT 130.77 740.90 Td ( 2013) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 714.50 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 700.10 Td (Revenue of $13.8B was up 3% quarter over quarter and also 3% from a year ago. Combined PC Client ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 685.70 Td (Group and Data Center Group platform* volumes are up 3% when compared to the third quarter) Tj ET Q q 0 0 0 rg BT 512.19 685.70 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 671.30 Td (Platform* average selling prices were approximately flat when compared to the third quarter) Tj ET Q q 0 0 0 rg BT 493.84 671.30 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 644.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 644.90 Td (PC Client Group fourth quarter revenue of $8.6B was up 2% from the third quarter with platform ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 630.50 Td (volumes up 3% and flat platform average selling prices. ) Tj ET Q q 0 0 0 rg BT 356.80 630.50 Td (Y) Tj ET Q q 0 0 0 rg BT 364.27 630.50 Td (ear over year) Tj ET Q q 0 0 0 rg BT 426.41 630.50 Td (, PC Client Group revenue ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 616.10 Td (is flat with platform volume up 3% and platform average selling prices down 2%. On a year over ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 601.70 Td (year basis, desktop platform volume was up 7% and desktop platform average selling prices were ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 587.30 Td (up 5%. On a year on year basis, notebook platform volume is flat and notebook platform average ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 572.90 Td (selling prices were down 7%. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 558.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 558.50 Td (The Data Center Group had revenue of $3.0B, up 3% from the third quarter with platform volumes ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 544.10 Td (down 3% and platform average selling prices up 7%. ) Tj ET Q q 0 0 0 rg BT 342.81 544.10 Td (Y) Tj ET Q q 0 0 0 rg BT 350.28 544.10 Td (ear over year) Tj ET Q q 0 0 0 rg BT 412.41 544.10 Td (, Data Center Group revenue ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 529.70 Td (was up 8% with platform volume up 1% and platform average selling prices up 7%.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 515.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 515.30 Td (The other Intel architecture operating segments had revenue of $1.1B, up 4% from the third ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 500.90 Td (quarter) Tj ET Q q 0 0 0 rg BT 119.32 500.90 Td (. ) Tj ET Q q 0 0 0 rg BT 124.87 500.90 Td (Y) Tj ET Q q 0 0 0 rg BT 132.34 500.90 Td (ear over year) Tj ET Q q 0 0 0 rg BT 194.47 500.90 Td (, the other Intel architecture operating segments revenue is up 9%.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 486.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 486.50 Td (The software and services operating segments had revenue of $683M, up 10% from the third ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 472.10 Td (quarter) Tj ET Q q 0 0 0 rg BT 119.32 472.10 Td (. ) Tj ET Q q 0 0 0 rg BT 124.87 472.10 Td (Y) Tj ET Q q 0 0 0 rg BT 132.34 472.10 Td (ear over year) Tj ET Q q 0 0 0 rg BT 194.47 472.10 Td (, the software and services operating segments revenue was up 7%.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 445.70 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 445.70 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 431.30 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 431.30 Td (gin dollars were $8.6B, up approximately $200M compared to the third quarter) Tj ET Q q 0 0 0 rg BT 479.02 431.30 Td (. Gross mar) Tj ET Q q 0 0 0 rg BT 534.46 431.30 Td (gin ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 416.90 Td (of 62.0% was flat to the third quarter and up 1 point when compared to the midpoint of the Outlook ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 402.50 Td (provided on October 15th.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 374.500390625 m 438.734375 374.500390625 l s q 0 0 0 rg BT 50.00 376.10 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 376.10 Td (gin Reconciliation: Q313 to Q413 \(62.4% to 62.0%, down 0.4 point\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 361.70 Td ([note: point attributions are approximate] ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 347.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 347.30 Td (+ 1.0 point:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.77 347.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 347.30 Td (Lower platform* unit costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 332.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 332.90 Td (- 0.5 point:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 332.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 332.90 Td (Higher 14nm factory start-up ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 318.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 318.50 Td (- 0.5 point:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 318.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 318.50 Td (T) Tj ET Q q 0 0 0 rg BT 164.49 318.50 Td (ablet impact ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 290.500390625 m 532.82421875 290.500390625 l s q 0 0 0 rg BT 50.00 292.10 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 292.10 Td (gin Reconciliation: Q413 Outlook to Q413 \(61% +/- couple points to 62.0%, up 1 point\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 277.70 Td ([note: point attributions are approximate]) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 263.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 263.30 Td (+ 0.5 point:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.77 263.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 263.30 Td (Lower platform* unit costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 248.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 248.90 Td (+ 0.5 point:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.77 248.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 248.90 Td (Higher platform* volume) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 220.900390625 m 419.73828125 220.900390625 l s q 0 0 0 rg BT 50.00 222.50 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 222.50 Td (gin Reconciliation: Q412 to Q413 \(58% to 62.0%, up 4.0 points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 208.10 Td (When comparing to the fourth quarter from a year ago gross mar) Tj ET Q q 0 0 0 rg BT 360.67 208.10 Td (gin was up 4 points due to lower excess ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 193.70 Td (capacity char) Tj ET Q q 0 0 0 rg BT 113.40 193.70 Td (ges, lower platform* write-of) Tj ET Q q 0 0 0 rg BT 254.47 193.70 Td (fs \(lower pre-qualification product costs and higher sell-) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 179.30 Td (through of previously non-qualified units\), and lower platform* unit costs, partially of) Tj ET Q q 0 0 0 rg BT 463.37 179.30 Td (fset by higher 14nm ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 164.90 Td (factory start-up costs.) Tj ET Q endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 3) Tj ET Q BT /F2 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 10.00 Tf ET q 0 0 0 rg BT 50.00 19.60 Td (^^ Cash and cash equivalents, short-term investments, and marketable debt instruments included intrading assets) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Spending) Tj ET Q BT /F2 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 $4.8B, up approximately $100M to the third quarter and up ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (approximately $100M from the Outlook provided in October) Tj ET Q q 0 0 0 rg BT 342.28 712.10 Td (. ) Tj ET Q q 0 0 0 rg BT 348.06 712.10 Td (The increase relative to the third quarter is ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (due to an increase in R&D spending and an increase in marketing on 2-in-1 devices. R&D and MG&A) Tj ET Q q 0 0 0 rg BT 543.21 697.70 Td ( as ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (a percentage of revenue was 35%, flat to the third quarter) Tj ET Q q 0 0 0 rg BT 324.88 683.30 Td (. Depreciation was $1.7B, in line with ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (Restructuring and asset impairment char) Tj ET Q q 0 0 0 rg BT 243.72 640.10 Td (ges in the fourth quarter were $1) Tj ET Q q 0 0 0 rg BT 399.89 640.10 Td (16M. ) Tj ET Q q 0 0 0 rg BT 428.34 640.10 Td (These char) Tj ET Q q 0 0 0 rg BT 480.42 640.10 Td (ges were a result ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 625.70 Td (of management actions to reduce workforce in response to the current business environment and to better ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (align resources.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (Amortization of acquisition related intangibles was $74M, in line with expectations.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 556.10 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 541.70 Td (Gains and losses on equity investments and interest and other income was a net gain of $2M, lower than ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 527.30 Td (the $420M gain in the third quarter and flat with our Outlook of approximately zero. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 500.90 Td (The provision for taxes in the fourth quarter was at a 26.1% tax rate, up from our forecast of 25%.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 474.50 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (Cash flow from operations in the fourth quarter was approximately $6.2B. On the balance sheet, total cash ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 445.70 Td (investments^^ ended the quarter at $20.1B, up approximately $1.0B from the third quarter) Tj ET Q q 0 0 0 rg BT 482.83 445.70 Td (. $8.8B of the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 431.30 Td (total $20.1B total cash investments^^ is held by U.S. subsidiaries. During the fourth quarter we paid ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 416.90 Td ($1.1B in dividends, purchased $2.9B in capital assets, and repurchased $528M in stock. ) Tj ET Q q 0 0 0 rg BT 474.37 416.90 Td (T) Tj ET Q q 0 0 0 rg BT 480.86 416.90 Td (otal inventories ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 402.50 Td (were down $361M compared to the third quarter) Tj ET Q q 0 0 0 rg BT 282.93 402.50 Td (.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 376.10 Td ( Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 361.70 Td (The total number of employees was approximately flat from the third quarter at 108K. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 335.30 Td (Diluted shares outstanding increased by 3M shares from the third quarter and increased by 8M shares ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 320.90 Td (from the fourth quarter a year ago. ) Tj ET Q BT /F3 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 290.2220703125 m 126.998046875 290.2220703125 l s q 0 0 0 rg BT 50.00 292.10 Td (Full ) Tj ET Q q 0 0 0 rg BT 73.23 292.10 Td (Y) Tj ET Q q 0 0 0 rg BT 80.56 292.10 Td (ear) Tj ET Q q 0 0 0 rg BT 97.00 292.10 Td ( 2013 ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 265.70 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 251.30 Td (Revenue of $52.7B was down 1% from a year ago. Combined PC Client Group and Data Center Group ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 236.90 Td (platform* volume was down 3% from a year ago. Platform* average selling prices were up 2% from ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 222.50 Td (2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.20 196.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 196.10 Td (The PC Client Group had revenue of $33.0B, down 4% year over year) Tj ET Q q 0 0 0 rg BT 405.25 196.10 Td (. PC Client Group platform ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 181.70 Td (volume was down 3% year on year) Tj ET Q q 0 0 0 rg BT 235.95 181.70 Td (. PC Client Group platform average selling prices were flat to 2012. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 167.30 Td (Notebook platform volume was down 4% year on year and notebook platform average selling prices ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 152.90 Td (down 4% from 2012. Desktop platform volume was down 2% year on year with desktop platform ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 138.50 Td (average selling prices up 6% from 2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.20 124.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 124.10 Td (The Data Center Group had revenue of $1) Tj ET Q q 0 0 0 rg BT 269.81 124.10 Td (1.2B, up 7% from 2012. Data Center Group platform ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 109.70 Td (volume was up 3% year on year) Tj ET Q q 0 0 0 rg BT 221.29 109.70 Td (. Data Center Group platform average selling prices were up 4% from ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 95.30 Td (2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 80.90 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.20 80.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 80.90 Td (The other Intel architecture operating segments had revenue of $4.1B, down 7% year over year) Tj ET Q q 0 0 0 rg BT 523.82 80.90 Td (. ) Tj ET Q q 0 0 0 rg BT 529.61 80.90 Td (The ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 66.50 Td (year on year decline is driven by lower netbook sales.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.20 52.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 52.10 Td (The software and services operating segments had revenue of $2.5B in 2013, up 5% year over year) Tj ET Q q 0 0 0 rg BT 542.51 52.10 Td (.) Tj ET Q BT /F2 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 545.51 52.10 Td ( ) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (^^ Cash and cash equivalents, short-term investments, and marketable debt instruments included intrading assets) Tj ET Q BT /F3 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 /F2 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 dollars were $31.5B, down $1.6B from 2012. Gross mar) Tj ET Q q 0 0 0 rg BT 388.19 726.50 Td (gin of 59.8% was down 2.3 points ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (from 2012, driven by higher factory start-up costs. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 685.70 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 671.30 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 671.30 Td ( was $18.7B, up 3% from 2012 primarily as a result of increased ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 656.90 Td (investment in research and development. R&D and MG&A) Tj ET Q q 0 0 0 rg BT 335.27 656.90 Td ( as a percentage of revenue was 35%, up ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 642.50 Td (approximately 1 point from 2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (R&D spending was $10.6B, up 5% from 2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 587.30 Td (MG&A) Tj ET Q q 0 0 0 rg BT 86.67 587.30 Td ( spending was $8.1B, flat from 2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 558.50 Td (Depreciation was $6.8B, up from $6.4B in 2012.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 529.70 Td (Restructuring and asset impairment char) Tj ET Q q 0 0 0 rg BT 243.72 529.70 Td (ges for 2013 were $240M. ) Tj ET Q q 0 0 0 rg BT 373.48 529.70 Td (These char) Tj ET Q q 0 0 0 rg BT 425.56 529.70 Td (ges were a result of several ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 515.30 Td (management actions to reduce workforce, exit certain businesses and close facilities in response to the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 500.90 Td (current business environment and to better align resources.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (Amortization of acquisition related intangibles was $291M, down from $308M in 2012.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 443.30 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 443.30 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 428.90 Td (Gains and losses on equity investments and interest and other income was a net gain of $320M, higher ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 414.50 Td (than the $235M gain in 2012. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 80.76 388.10 Td (fective tax rate for 2013 was 23.7%, down from 26.0% in 2012 driven by higher R&D tax credits.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 361.70 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 347.30 Td (Cash flow from operations in 2013 was approximately $20.9B. On the balance sheet, total cash ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 332.90 Td (investments^^ ended the year at $20.1B, up $1.9B from 2012. During 2013, we paid approximately $4.5B ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 318.50 Td (in dividends, purchased $10.7B in capital assets, repurchased $2.1B in stock. ) Tj ET Q q 0 0 0 rg BT 422.38 318.50 Td (T) Tj ET Q q 0 0 0 rg BT 428.87 318.50 Td (otal inventories were down ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (approximately $562M from a year ago.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 277.70 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 277.70 Td ( Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 263.30 Td (W) Tj ET Q q 0 0 0 rg BT 60.37 263.30 Td (e added approximately 2.5K employees in 2013, bringing the total number of employees to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 248.90 Td (approximately 108K. ) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 5) Tj ET Q BT /F2 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 /F3 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 137.345703125 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Q1 2014 Outlook) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 721.50 Td (Intel) Tj ET Q q 0 0 0 rg BT 75.32 721.50 Td (s Business Outlook for the first quarter does not include the ef) Tj ET Q q 0 0 0 rg BT 373.38 721.50 Td (fect of any business combinations, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 707.10 Td (asset acquisitions, divestitures, or other investments that may be completed after January 16th. ) Tj ET Q q 0 0 0 rg BT 506.33 707.10 Td (The mid-) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 692.70 Td (point of the forecast ranges will be referred to when making comparisons to specific periods. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 663.90 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 649.50 Td (Revenue is expected to be $12.8B, plus or minus $500M in the first quarter) Tj ET Q q 0 0 0 rg BT 410.94 649.50 Td (. ) Tj ET Q q 0 0 0 rg BT 416.72 649.50 Td (The midpoint of this range is ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 635.10 Td (down 7% from the fourth quarter) Tj ET Q q 0 0 0 rg BT 208.29 635.10 Td (. ) Tj ET Q q 0 0 0 rg BT 214.07 635.10 Td (This decline is in line with the average seasonal decline for the first ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 620.70 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 620.70 Td (.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 594.30 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 594.30 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 579.90 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 579.90 Td (gin in the first quarter is expected to be 59%, plus or minus a couple points, down 3.0 points ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 565.50 Td (from the fourth quarter) Tj ET Q q 0 0 0 rg BT 159.63 565.50 Td (.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 537.500390625 m 486.482421875 537.500390625 l s q 0 0 0 rg BT 50.00 539.10 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 539.10 Td (gin Reconciliation: Q413 to Q114 Outlook \(62.0% to 59% +/- a couple points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 524.70 Td ([note: point attributions are approximate]) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 510.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 510.30 Td (- 1.5 points:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.67 510.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.00 510.30 Td (Higher platform* write-of) Tj ET Q q 0 0 0 rg BT 283.07 510.30 Td (fs \(primarily higher pre-qualification) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 495.90 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 495.90 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 495.90 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 495.90 Td (product costs for Broadwell\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 481.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 481.50 Td (- 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 481.50 Td (Lower platform* volumes ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 467.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 467.10 Td (- 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 467.10 Td (Miscellaneous ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 440.70 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 426.30 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 426.30 Td ( in the first quarter is expected to be approximately $4.8B, flat from the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 411.90 Td (fourth quarter) Tj ET Q q 0 0 0 rg BT 115.64 411.90 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 385.50 Td (Depreciation is forecast to be approximately $1.7B, flat from the fourth quarter) Tj ET Q q 0 0 0 rg BT 429.54 385.50 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 359.10 Td (Restructuring and asset impairment char) Tj ET Q q 0 0 0 rg BT 243.72 359.10 Td (ges are forecast to be approximately $200M.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 330.30 Td (Amortization of acquisition-related intangibles is forecast to be approximately $70M.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 303.90 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 303.90 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 289.50 Td (Gains and losses from equity investments and interest and other income are expected to be a net gain of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (approximately $25M, compared to a net gain of $2M in the fourth quarter) Tj ET Q q 0 0 0 rg BT 403.57 275.10 Td (. ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 6) Tj ET Q BT /F2 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 /F3 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 119.01171875 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (2014 Outlook) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 721.50 Td (Intel) Tj ET Q q 0 0 0 rg BT 75.32 721.50 Td (s Business Outlook for full year 2014 does not include the ef) Tj ET Q q 0 0 0 rg BT 366.72 721.50 Td (fect of any business combinations, asset ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 707.10 Td (acquisitions, divestitures or other investments that may be completed after January 16th. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 678.30 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 663.90 Td (Revenue for the year is expected to be approximately flat. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 637.50 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 637.50 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 623.10 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 623.10 Td (gin for the year is expected to be 60%, plus or minus a few points, flat to 2013.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 595.100390625 m 459.16015625 595.100390625 l s q 0 0 0 rg BT 50.00 596.70 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 596.70 Td (gin Reconciliation: 2013 to 2014 Outlook \(59.8% to 60% +/- a few points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 582.30 Td ([note: point attributions are approximate]) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 567.90 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.20 567.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 567.90 Td (+ 2.0 points: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.44 567.90 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 567.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 194.00 567.90 Td (Lower factory start-up costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 553.50 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.20 553.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 553.50 Td (+ 1.0 point: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 147.77 553.50 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 553.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 194.00 553.50 Td (Lower platform* unit costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 539.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.20 539.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 539.10 Td (- 1.5 points: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.67 539.10 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 539.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 194.00 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 200.49 539.10 Td (ablet impact) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 524.70 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.20 524.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 524.70 Td (- 0.5 point: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 145.00 524.70 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 524.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 194.00 524.70 Td (NAND impact) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 510.30 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.20 510.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 510.30 Td (- 0.5 point: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 145.00 510.30 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 510.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 194.00 510.30 Td (Higher platform* write-of) Tj ET Q q 0 0 0 rg BT 319.07 510.30 Td (fs \(primarily pre-qualification product costs\)) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 481.50 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 467.10 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 467.10 Td ( for the year is expected to be $18.6B, plus or minus $200M, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 452.70 Td (approximately flat to 2013.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 426.30 Td (R&D spending is expected to be approximately $10.5B, approximately flat 2013.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 399.90 Td (MG&A) Tj ET Q q 0 0 0 rg BT 86.67 399.90 Td ( is expected to be approximately $8.1B, approximately flat to 2013.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 373.50 Td (Amortization of acquisition-related intangibles is forecast to be approximately $300M.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td (Depreciation is forecast to be approximately $7.4B +/- $100M.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 320.70 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 320.70 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 306.30 Td (The tax rate for 2014 is expected to be 27%, which is up 3.3 points from 2013 driven by lack of R&D tax ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 291.90 Td (credit.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 265.50 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (Capital spending for 2014 is forecast to be $1) Tj ET Q q 0 0 0 rg BT 268.17 251.10 Td (1.0B plus or minus $500M, approximately flat to 2013.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 7) Tj ET Q BT /F3 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 114.9921875 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Risk Factors) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 726.50 Td (The above statements and any others in this document that refer to plans and expectations for the first ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.50 712.10 Td (, the year and the future are forward-looking statements that involve a number of risks and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (uncertainties. ) Tj ET Q q 0 0 0 rg BT 117.09 697.70 Td (W) Tj ET Q q 0 0 0 rg BT 127.46 697.70 Td (ords such as anticipates, expects, intends, plans, believes, seeks, estimates, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (may) Tj ET Q q 0 0 0 rg BT 75.21 683.30 Td (, will, should and their variations identify forward-looking statements.Statements that refer to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (or are based on projections, uncertain events or assumptions also identify forward-looking ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 654.50 Td (statements.Many factors could af) Tj ET Q q 0 0 0 rg BT 212.06 654.50 Td (fect Intel) Tj ET Q q 0 0 0 rg BT 258.37 654.50 Td (s actual results, and variances from Intel) Tj ET Q q 0 0 0 rg BT 455.30 654.50 Td (s current expectations ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (regarding such factors could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 310.36 640.10 Td (fer materially from those expressed in these ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 625.70 Td (forward-looking statements. Intel presently considers the following to be the important factors that could ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (cause actual results to dif) Tj ET Q q 0 0 0 rg BT 171.07 611.30 Td (fer materially from the company) Tj ET Q q 0 0 0 rg BT 330.34 611.30 Td (s expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 596.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 596.90 Td (Demand could be dif) Tj ET Q q 0 0 0 rg BT 186.75 596.90 Td (ferent from Intel's expectations due to factors including changes in business ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 582.50 Td (and economic conditions; customer acceptance of Intel) Tj ET Q q 0 0 0 rg BT 353.23 582.50 Td (s and competitors) Tj ET Q q 0 0 0 rg BT 440.98 582.50 Td ( products; supply ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 568.10 Td (constraints and other disruptions af) Tj ET Q q 0 0 0 rg BT 254.42 568.10 Td (fecting customers; changes in customer order patterns including ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 553.70 Td (order cancellations; and changes in the level of inventory at customers. Uncertainty in global ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 539.30 Td (economic and financial conditions poses a risk that consumers and businesses may defer purchases ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 524.90 Td (in response to negative financial events, which could negatively af) Tj ET Q q 0 0 0 rg BT 405.01 524.90 Td (fect product demand and other ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 510.50 Td (related matters.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 496.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 496.10 Td (Intel operates in intensely competitive industries that are characterized by a high percentage of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 481.70 Td (costs that are fixed or dif) Tj ET Q q 0 0 0 rg BT 205.41 481.70 Td (ficult to reduce in the short term and product demand that is highly ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (variable and dif) Tj ET Q q 0 0 0 rg BT 161.08 467.30 Td (ficult to forecast. Revenue and the gross mar) Tj ET Q q 0 0 0 rg BT 375.46 467.30 Td (gin percentage are af) Tj ET Q q 0 0 0 rg BT 475.51 467.30 Td (fected by the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 452.90 Td (timing of Intel product introductions and the demand for and market acceptance of Intel's ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 438.50 Td (products; actions taken by Intel's competitors, including product of) Tj ET Q q 0 0 0 rg BT 406.88 438.50 Td (ferings and introductions, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 424.10 Td (marketing programs and pricing pressures and Intel) Tj ET Q q 0 0 0 rg BT 336.59 424.10 Td (s response to such actions; and Intel) Tj ET Q q 0 0 0 rg BT 512.56 424.10 Td (s ability ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 409.70 Td (to respond quickly to technological developments and to incorporate new features into its ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 395.30 Td (products. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 380.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 380.90 Td (The gross mar) Tj ET Q q 0 0 0 rg BT 154.43 380.90 Td (gin percentage could vary significantly from expectations based on capacity ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 366.50 Td (utilization; variations in inventory valuation, including variations related to the timing of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 352.10 Td (qualifying products for sale; changes in revenue levels; segment product mix; the timing and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 337.70 Td (execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 323.30 Td (inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 308.90 Td (product manufacturing quality/yields; and impairments of long-lived assets, including ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 294.50 Td (manufacturing, assembly/test and intangible assets.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 280.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td (The tax rate expectation is based on current tax law and current expected income. ) Tj ET Q q 0 0 0 rg BT 479.94 280.10 Td (The tax rate may ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 265.70 Td (be af) Tj ET Q q 0 0 0 rg BT 109.43 265.70 Td (fected by the jurisdictions in which profits are determined to be earned and taxed; changes in ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 251.30 Td (the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 236.90 Td (with various tax authorities, including payment of interest and penalties; and the ability to realize ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 222.50 Td (deferred tax assets.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (Gains or losses from equity securities and interest and other could vary from expectations ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 193.70 Td (depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 179.30 Td (and equity investments; interest rates; cash balances; and changes in fair value of derivative ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 164.90 Td (instruments. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 150.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 150.50 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 150.50 Td (fected by adverse economic, social, political and physical/infrastructure ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 136.10 Td (conditions in countries where Intel, its customers or its suppliers operate, including military ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 121.70 Td (conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 107.30 Td (fluctuations in currency exchange rates.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 92.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 92.90 Td (Expenses, particularly certain marketing and compensation expenses, as well as restructuring and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 78.50 Td (asset impairment char) Tj ET Q q 0 0 0 rg BT 191.08 78.50 Td (ges, vary depending on the level of demand for Intel's products and the level ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 64.10 Td (of revenue and profits.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 49.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 49.70 Td (Intel) Tj ET Q q 0 0 0 rg BT 111.32 49.70 Td (s results could be af) Tj ET Q q 0 0 0 rg BT 206.42 49.70 Td (fected by the timing of closing of acquisitions and divestitures.) 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