1970 Intel Financial Statement
We have examined the accompanying balance sheet of Intel Corporation at December 31, 1970 and the related statements of operations and stakeholders’ equity for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the statements mentioned above present fairly the financial position of Intel Corporation at December 31, 1970 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding period.
The Company has agreed to share with a Canadian manufacturer certain of its manufacturing process know-how and to provide related technical assistance and information through December 31, 1972.
The agreement provides for the Company to receive $500,000 upon delivery of specified technical information (payment was received and recorded as income in 1970), $1,000,000 subject to adjustment for a time incentive/penalty on attachment of specified product yields over a defined yield period, and royalties on future net sales, at the rate of 5% through December 31, 1971 and 2 ½% through December 31, 1972.
Plant and equipment
Substantially all capital equipment is being leased (see Note 4). Leasehold improvements are being amortized using the straight-line method over the life of the lease. Equipment is being depreciated over its estimated useful life of four years on a straight-line method.
Approximately 75% of the land purchased during the year is pledged under a first deed of trust to secure a 8 ½% purchase money note. The note balance of $566,516 is payable in annual installments of $188,838.
Sales to distributors
Certain of the Company’s sales are made to distributors under agreements allowing right of return of merchandise of merchandise unsold by the distributors.
Read the full 1970 Intel Financial Statement.