2012 Intel Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
Financial Results “ We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data ® center. Our strong product pipeline has us well-positioned to bring a new wave of Intel innovations across the spectrum of computing.” Paul S. Otellini, President and Chief Executive Officer Net Revenue Diluted Earnings Per Share Dividends Per Share Paid Dollars in billions Dollars Dollars 60 2.50 1.00 2.39 54.0 53.3 0.87 50 2.13 2.00 2.01 0.80 0.78 43.6 40 38.8 38.3 37.6 0.63 35.4 35.1 1.50 0.60 34.2 0.55 0.56 30 30.1 1.00 0.92 0.40 20 0.77 10 0.50 0.20 ™ 03 04 05 06 07 08 09 10 11 12 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 www.intel.com News and information about Intel® products and technologies, customer Capital Additions to Property, Cash from Operations Plant and Equipment Research and Development support, careers, worldwide locations, Dollars in billions Dollars in billions Dollars in billions and more. 25 12.0 12.0 10.8 11.0 21.0 10.1 20 18.9 9.0 9.0 8.4 16.7 15 6.6 6.0 6.0 5.7 5.7 10.9 11.2 5.2 5.2 10 4.5 3.0 3.0 5 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 www.intc.com Stock information, earnings and conference webcasts, annual reports, and corporate governance and Past performance does not guarantee future results. This Annual Report to Stockholders contains forward-looking statements, and actual results could differ materially. historical financial information. 2012 Annual Report Risk factors that could cause actual results to differ are set forth in the “Risk Factors” section and throughout our 2012 Form 10-K, which is included in this Annual Report. Financial Results “ We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data ® center. Our strong product pipeline has us well-positioned to bring a new wave of Intel innovations across the spectrum of computing.” Paul S. Otellini, President and Chief Executive Officer Net Revenue Diluted Earnings Per Share Dividends Per Share Paid Dollars in billions Dollars Dollars 60 2.50 1.00 2.39 54.0 53.3 0.87 50 2.13 2.00 2.01 0.80 0.78 43.6 40 38.8 38.3 37.6 0.63 35.4 35.1 1.50 0.60 34.2 0.55 0.56 30 30.1 1.00 0.92 0.40 20 0.77 10 0.50 0.20 ™ 03 04 05 06 07 08 09 10 11 12 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 www.intel.com News and information about Intel® products and technologies, customer Capital Additions to Property, Cash from Operations Plant and Equipment Research and Development support, careers, worldwide locations, Dollars in billions Dollars in billions Dollars in billions and more. 25 12.0 12.0 10.8 11.0 21.0 10.1 20 18.9 9.0 9.0 8.4 16.7 15 6.6 6.0 6.0 5.7 5.7 10.9 11.2 5.2 5.2 10 4.5 3.0 3.0 5 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 www.intc.com Stock information, earnings and conference webcasts, annual reports, and corporate governance and Past performance does not guarantee future results. This Annual Report to Stockholders contains forward-looking statements, and actual results could differ materially. historical financial information. 2012 Annual Report Risk factors that could cause actual results to differ are set forth in the “Risk Factors” section and throughout our 2012 Form 10-K, which is included in this Annual Report. Letter From Your CEO 2012 Highlights Letter From Your Chairman Investor Information In 2012, Intel delivered revenue of $53.3 billion, power consumption—great attributes for any market, but particularly After 30 years at Intel, I am honored to write my Investor materials. Intel’s Investor Relations web site contains the strategic importance of investing in our people. We support this net income of $11.0 billion, and earnings per for mobile computing. first letter as your Chairman. Intel is one of the background on our company and our products, financial information, value by cultivating a safe, respectful, and ethical work environment share of $2.13. We generated approximately Six major mobile providers launched Intel Atom processor-based world’s most innovative companies, known not only frequently asked questions, and our online annual report, as well as that enables employees to thrive both on the job and in their $18.9 billion in cash from operations, and our smartphones in 2012. Intel Atom processor-based tablets and tablet Two-for-one for its products and profits but also for its ethics other useful information. For investor information, including additional communities. We measure our progress each year by soliciting gross margin of 62.1% was at the top end of convertibles running Windows 8 are also shipping worldwide, offering computing and governance. I look forward to working with copies of our annual report/10-K, 10-Qs, or other financial literature, employee feedback through our annual Organizational Health Survey. our historical gross margin range for the third thin and light designs, up to 10 hours of battery life in typical active the Board of Directors to extend that record of visit our web site at www.intc.com or call Intel at (408) 765-1480 In 2012, Intel was again named to Fortune magazine’s Best Companies year in a row. We increased R&D spending as we made investments usages, and compatibility with more than 4 million Intel® architec- innovation while ensuring that the company continues to do the right (U.S.); (44) 1793 403 000 (Europe); (852) 2844 4555 (Hong Kong); to Work For list. More information is available at www.intel.com/jobs. across smartphones, tablets, Ultrabook™ systems, the data center, ture applications. thing for stockholders, customers, employees, and communities. (81) 298 47 8511 (Japan). Caring for the planet. We believe that technology plays a fundamental and manufacturing. Worldwide economic growth in 2012 was Data storage and high-performance computing As part of our commitment to increase stockholder value, the Board Intel on NASDAQ. Intel’s common stock trades on The NASDAQ Global role in finding solutions to the world’s environmental challenges. significantly lower than we had anticipated entering the year, and Demand for transistors in servers, storage, and networking continues began authorizing the return of cash to stockholders through the Select Market* under the symbol INTC. Intel is a recognized leader in sustainability for the ways we work to the PC market segment was impacted by the growth of tablets. to grow. Between 2009 and 2012, the total available market for cloud repurchase of Intel stock in the open market in 1990, and payments of Direct stock purchase plan. Intel’s Direct Stock Purchase Plan allows minimize the environmental impacts of our operations and design Although our financial results were below our initial expectations, computing processors tripled, and by 2015 we expect that more than dividends in 1992. Through year-end 2012, the repurchase and dividend stockholders to reinvest dividends and purchase Intel common stock products that are increasingly energy efficient. In2012 , for the fifth Unprecedented innovation in Ultrabook™ systems we launched cutting-edge products in every major business 3 billion connected users and 15 billion connected devices will be programs had returned $118.4 billion to stockholders. Intel used $4.8 on a weekly basis. For more information, contact Intel’s transfer agent, year in a row, Intel was the largest voluntary purchaser of green power segment and extended our manufacturing leadership. Touch-enabled convertible and detachable Ultrabook™ systems combine billion to repurchase 191 million shares of stock in 2012, and completed Computershare Investor Services, LLC, by phone at (800) 298-0146 according to the U.S. Environmental Protection Agency. To underscore driving more than 1,500 exabytes of cloud traffic per year. Working the productivity of a notebook with the convenience of a laptop. Intel a senior notes offering of $6.2 billion, in part to fund the additional re- (U.S. and Canada) or (312) 360-5123 (worldwide), or by e-mail through the importance of sustainability to our business, we again included an Fulfilling our vision with our McAfee subsidiary, we are helping to build confidence in expects another wave of Ultrabook device innovation in 2013, with Intel has an ambitious vision: Create and extend computing private and public clouds through security solutions for the data center, the arrival of the company’s next-generation “Haswell” processor. purchase of Intel stock. Intel’s dividend payout for 2012 was $4.4 billion, Computershare’s web site at www.computershare.com/contactus. environmental component in the formula used to determine the technology to connect and enrich the life of every person on Earth. network connections, and devices that connect to the cloud. including a 7% increase in the dividend starting in the third quarter. Transfer agent and registrar. Computershare Investor Services, LLC, payout for employee and executive variable compensation.