Global Economic Impact & Supplier Diversity Report · FEBRUARY 2018 Intel Global Economic Impact & Supplier Diversity Report No matter how seemingly small or fleeting, everything

FEBRUARY 2018

IntelGlobal Economic Impact & Supplier Diversity Report

No matter how seemingly small or fleeting, everything we do affects more people and businesses than we could ever imagine. But now we’re starting to see the profound impact that a diverse and inclusive business can have—and how to concretely quantify it.

Contents

It calls to mind the words of President Richard M. Nixon, who in 1969 signed an Executive Order creating the precursor to NMSDC, the Office of Minority Business Enterprise:

“”

Full participation in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic justice for such persons and improve the functioning of our national economy.

Executive summary

Putting it all together

Output by volume

Employment by volume

Global impact overview

Whose lives do we impact?

State-by-state employment

United States Impact Overview

Tax Impacts

Additional results

Glossary

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Executive Summary

Table 1: Results

Employment Emp. Comp. Value Added Output

Direct 5,513 $222,049,599 $317,523,388 $533,599,862

Indirect 2,182 $64,051,195 $125,592,320 $218,574,061

Induced 2,915 $88,489,933 $184,883,543 $311,528,150

Total 10,609 $374,590,725 $627,999,251 $1,063,702,073

Meeting diversity standards isn’t only important to us on a corporate or internal level alone. Intel is dedicated to helping our supply chain, business partners, and even our industry find the value in a measureably diverse business network. We rely on razor-sharp research and incisive data insights to deliver a solid perspective on how diversity benefits us and everyone with whom we work.

Our journey to ensure a diverse supply chain network began in 1981 and is built on a strong foundation of commitment, perseverance and integrity. Our goal is to source at least 22 percent of our U.S. purchasing budget, with diverse production and indirect suppliers annually. This is something we are

extremely proud of. In 2017, our $553 million spend with U.S. Tier 1 diverse suppliers supported over 7,000 US jobs and is changing communities in disadvantaged areas. We have a concentrated impact in New York, California and Illinois supporting over 5,000 jobs in those three states last year alone.

For a basic analysis, you only need the industry or institution in which the change is occurring, the year of the change, and one of the following: industry sales, employment, employee compensation, or proprietor income. With this information, and the power of the local economic data provided by IMPLAN, we can estimate the rest of the information needed for your impact. IMPLAN’s data offers a look at the workforce using a combination of data from the Bureau of Labor Statistics and a host of other sources to provide the most complete set of establishment, employment, and wage data available anywhere. IMPLAN provides disclosed information, but is also able to estimate non-disclosed information, making our data more inclusive than any other.

5GLOBAL ECONOMIC IMPACT & SUPPLIER DIVERSITY REPORT

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Intel spend $533M with certified & classifeid (self-id) diverse supplier

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10K jobs supported

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$374,590,725 TOTAL COMPENSATION

This includes wages and salaries, all benefits (e.g., health, retirement) and payroll taxes (both sides of social security, unemployment insurance taxes, etc.).

10,609TOTAL JOBS SUPPORTED

Includes full-time, part-time, and seasonal workers, IMPLAN employment includes wage and salary employees as well as proprietors.

$627,999,251 TOTAL VALUE ADDED

The sum of Employee Compensation, Proprietor Income, Other Property Income, and Taxes on Production and Imports. Value Added is analagous to Gross Domestic Product (GDP).

$1,063,702,073 TOTAL OUTPUT

In the Supplier Diversity Analysis and Report, Direct Output represents the direct spend with diverse suppliers.

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Putting it all together

Intel is focused on supporting diverse and local suppliers throughout our supply chain and bolstering the growth of their Supplier Diversity programs. The vast amount of data available makes the ability to quantify our diverse spend

a reality. Here’s what we discovered about our economic impact through our Supplier Diversity Program. All totals include the direct, indirect, and induced effects including jobs supported, employee compensation, value added, and output.

6 GLOBAL ECONOMIC IMPACT & SUPPLIER DIVERSITY REPORT

Global impact overviewALL GLOBAL REGIONSSupplier spend is expected to generate an annual output of $1,063,702,073 in these regions. These impacts are sustained during the operation period.

IMPLAN Data Year: 2016Spend Data Year: 2017Areas in Model: Australia,

Belgium, Brazil, Bulgaria, Canada, China, Columbia, Germany, Hong Kong, India, Ireland, Israel, Korea, Malaysia, Mexico, Phillippines, South Africa, Taiwan, UK, USA, VIet Nam

Table 3: Total Global Result

Impact Type Employment Labor Income Value Added Output

Direct 5,513 $222,049,599 $317,523,388 $533,599,862

Indirect 2,182 $64,051,195 $125,592,320 $218,574,061

Induced 2,915 $88,489,933 $184,883,543 $311,528,150

Total 10,609 $374,590,725 $627,999,251 $1,063,702,073

Table 4: Greater America Region Result


Direct 2,834 $164,708,848 $235,034,257 $405,218,354

Indirect 954 $48,405,576 $91,892,899 $157,023,092

Induced 1,467 $63,174,417 $129,879,264 $217,381,322

Total 5,255 $276,288,840 $456,806,420 $779,622,768

Table 6: Greater Latin America Region Result


Direct 40 $308,932 $889,067 $1,512,751

Indirect 19 $193,765 $597,322 $1,019,799

Induced 13 $125,358 $304,731 $538,003

Total 72 $628,054 $1,791,119 $3,070,553

Table 5: Greater European Region Result


Direct 764 $52,119,604 $71,495,835 $106,195,322

Indirect 245 $13,045,778 $26,037,000 $42,740,741

Induced 550 $22,783,546 $49,404,721 $83,147,442

Total 1,559 $87,948,928 $146,937,556 $232,083,505

Table 7: Greater Asia Region Result


Direct 1,875 $4,912,215 $10,104,229 $20,673,435

Indirect 964 $2,406,075 $7,065,100 $17,790,428

Induced 884 $2,406,612 $5,294,826 $10,461,384

Total 3,723 $9,724,902 $22,464,155 $48,925,248

USA

$770mMEXICO

$83k

COLUMBIA

$1.6m BRAZIL

$1.3m

CANADA

$9.5mKOREA

$7m

IRELAND

$4.9m

BELGIUM

$616k

BULGARIA

$3.3m

ISRAEL

$197m

GERMANY

$14m

SOUTH AFRICA

$3.5m

CHINA

$18mINDIA

$13m

AUSTRALIA

$15k

HONG KONG

$378k

UNITED KINGDOM

$7.4m VIET NAM

$1.7mMALAYSIA

$2.8mPHILLIPPINES

$3.8mTAIWAN

$1.6m

98 GLOBAL ECONOMIC IMPACT & SUPPLIER DIVERSITY REPORT GLOBAL ECONOMIC IMPACT & SUPPLIER DIVERSITY REPORT

Impact overview

UNITED STATES REGIONSupplier spend is expected to generate an annual output of $770,067,579 in the U.S. These impacts are sustained during the operation period.

IMPLAN Data Year: 2016Spend Data Year: 2017Areas in Model: United States

The purchasing power of a dollar changes over time (typically decreasing) due to inflation, a cyclical phenomenon by which prices of goods and services increase, which spurs workers to demand higher wages, which in turn increases demand for goods and services, thereby spurring additional price increases, and so on. Not all goods and services are inflationary. For example, consumer electronics often decrease in price over time. As another example, the prices of agricultural commodities rise and fall in response to many factors, including weather.

Table 2: Total National Result


Direct 2,807 $162,847,699 $232,787,915 $401,047,925

Indirect 941 $47,637,211 $90,694,960 $154,731,002

Induced 1,452 $62,353,654 $128,223,951 $214,288,652

Total 5,200 $272,838,563 $451,706,826 $770,067,579

11GLOBAL ECONOMIC IMPACT & SUPPLIER DIVERSITY REPORT

Total of all classifications will be greater than total.

Suppliers may be added to more than one classification.

Classification Total Employment Total Output

Total Diverse 5,200 $770,067,579

Classified Minority businesses must be at least 51% minority-owned, operated, and controlled and affiliated with a regional council in the NMSDC network.

4,091 $587,834,919

Women’s Business Enterprise National Council (WBENC) Certified WBEs or MWBEs which meet the WBENC certification standards.

1,110 $182,232,661

Women Owned or Women Business Enterprise (WBE)A business concern that is at least 51% owned by one or more women, or, in the case of any publicly owned business, at least 51% of the stock is owned by one or more women, and whose management and daily business operations are controlled by one or more women.

118 $16,597,628

Veteran Business Entity (VBE) A person who served in the active military, naval, or air service, and who was honorably discharged or released there from.

118 $16,597,628

Whose lives do we impact?

Classification Total Employment Total Output

Minority Owned or Minority Business Enterprise (MBE)A business concern that is at least 51% owned by one or more minorities; or at least 51% of the stock is owned by one or more minorities; and whose management and daily business operations are controlled by one or more minorities.

3,662 $534,380,296

MBE (Men-owned) 2,378 $390,110,505

MBE (Women-owned) 1,284 $143,760,079

Self-Certified Small Disadvantaged Business Concern (SDB) A business concern that qualifies as “small” per the SBA Table of Small Business Size Standards Matched to North American Industry Classification System Codes and that is at least 51% unconditionally owned by one or more U.S. citizens who are socially and economically disadvantaged individuals.

68 $8,648,636

SDB (Men-owned) 65 $8,253,544

SDB (Women-owned) 3 $395,092

Asian American & Asian Subcontinent AmericanA business concern that is at least 51% owned and whose management and daily business operations are controlled by Asian and Asian Subcontinent Americans.

1,607 $215,824,519

Native AmericanA business concern that is at least 51% owned and whose management and daily business operations are controlled by Native Americans.

542 $91,169,464

African AmericanA business concern that is at least 51% owned and whose management and daily business operations are controlled by African Americans.

415 $69,117,310

HispanicA business concern that is at least 51% owned and whose management and daily business operations are controlled by African Americans.

484 $56,602,090


Output by volumeBars represent relative volume of output and employment for each diversity category tabulated on pages 10-11.

TOTAL DIVERSE

CLASSIFIED CLASSIFIED

MBE (MEN 73%) MBE (MEN 65%)

WBE WBE

CERTIFIED CERTIFIED

ASIAN & ASIAN SUBCONTINENT AMERICAN ASIAN & ASIAN SUBCONTINENT AMERICAN

NATIVE AMERICAN NATIVE AMERICAN

AFRICAN AMERICAN HISPANIC

VBE VBE

HISPANIC AFRICAN AMERICAN

SDB (MEN 95%, WOMEN 5%) SDB (MEN 96%, WOMEN 4%)

$770m

$587m

$534m

$362m

$182m

$215m

$91m

$69m

$16m

$56m

$8m

Employment by volume

TOTAL DIVERSE 5,2004,091

3,6622,701

1,6071,110542

415484

11868

(WOMEN 27%) (WOMEN 35%)


Employmentstate-by-state

Employment Employee Compensation Total Value Added Output

CA 1,376 $84,770,973.00 $132,238,689.00 $224,224,679.00 WA 647 $32,300,599.00 $61,829,368.00 $108,411,487.00 OR 645 $23,801,850.00 $39,793,638.00 $70,813,538.00 NJ 634 $37,493,158.00 $41,161,811.00 $64,672,976.00 CO 379 $17,696,725.00 $31,259,024.00 $57,590,836.00 MO 275 $14,973,216.00 $30,467,095.00 $49,469,163.00 VA 237 $9,332,820.00 $23,040,508.00 $37,734,580.00 TX 197 $11,466,444.00 $19,621,545.00 $30,984,342.00 AZ 172 $7,507,596.00 $15,170,558.00 $26,918,840.00 WI 158 $7,111,393.00 $12,409,003.00 $24,876,251.00 IN 79 $4,775,191.00 $6,794,194.00 $10,651,148.00 OH 66 $3,090,005.00 $5,042,103.00 $8,814,609.00 NY 56 $3,453,866.00 $6,161,975.00 $8,877,739.00 MD 42 $2,259,766.00 $4,606,705.00 $6,869,322.00 MI 40 $1,884,174.00 $2,733,341.00 $4,218,192.00 MA 35 $2,014,581.00 $2,673,741.00 $4,055,158.00 NH 35 $1,938,302.00 $3,582,786.00 $5,583,309.00 GA 20 $1,212,143.00 $3,215,819.00 $8,159,267.00 FL 17 $909,337.00 $1,516,111.00 $3,052,560.00 NM 15 $718,662.00 $1,099,765.00 $2,263,225.00 IL 13 $698,458.00 $1,231,448.00 $1,803,006.00 NV 10 $326,257.00 $986,631.00 $1,691,819.00 DC 8 $916,494.00 $1,491,868.00 $1,891,070.00 CT 7 $435,719.00 $905,819.00 $1,489,799.00 LA 7 $279,050.00 $478,764.00 $843,202.00 MN 6 $391,148.00 $546,595.00 $893,818.00 PA 6 $330,808.00 $539,113.00 $866,071.00 VT 5 $277,829.00 $411,954.00 $956,618.00 DE 4 $178,047.00 $242,842.00 $369,041.00 ID 3 $132,570.00 $189,140.00 $542,423.00 NE 2 $70,377.00 $98,659.00 $172,257.00 KS 1 $37,881.00 $55,542.00 $92,697.00 TN 1 $30,045.00 $62,168.00 $114,354.00 AL 0 $2,122.00 $4,257.00 $13,063.00 AR 0 $2,138.00 $3,423.00 $5,815.00 HI 0 $53.00 $67.00 $104.00 NC 0 $12,312.00 $26,822.00 $52,366.00 OK 0 $4,828.00 $10,144.00 $20,435.00 SC 0 $1,625.00 $3,794.00 $8,400.00

Table 8: Impacted States by Employment

Refer to the map on page 11 to see how states’ total employment compares to their neighbors.

Table 9: Impacted States by Total Taxes

National tax impact

Federal State Total

CA $21,585,194 $13,338,299 $34,923,493 WA $9,618,949 $4,811,629 $14,430,578 NJ $8,826,805 $5,819,704 $14,646,510 OR $6,272,558 $2,699,601 $8,972,159 CO $4,736,377 $1,934,285 $6,670,662 MO $4,062,815 $3,372,555 $7,435,370 VA $3,050,479 $1,483,739 $4,534,217 TX $2,935,593 $1,673,217 $4,608,810 AZ $2,031,365 $1,121,446 $3,152,810 WI $1,774,446 $795,315 $2,569,761 IN $1,064,784 $397,453 $1,462,237 NY $921,162 $660,642 $1,581,803 OH $732,453 $336,949 $1,069,402 MD $646,939 $620,939 $1,267,879 NH $526,706 $335,244 $861,950 MA $497,543 $178,657 $676,199 MI $436,537 $167,794 $604,331 GA $373,084 $222,613 $595,697 FL $242,456 $97,850 $340,306 DC $189,145 $77,159 $266,304 IL $183,527 $87,065 $270,592 NM $163,692 $93,182 $256,874 CT $135,919 $80,057 $215,976 NV $128,499 $115,805 $244,304 MN $91,729 $41,473 $133,202 PA $85,404 $35,862 $121,266 LA $67,392 $26,648 $94,040 VT $65,300 $30,333 $95,634 DE $38,483 $13,270 $51,753 ID $30,587 $13,255 $43,842 NE $16,140 $6,006 $22,146 KS $9,001 $6,771 $15,772 TN $8,715 $3,585 $12,301 NC $3,410 $1,419 $4,829 OK $1,433 $900 $2,333 AL $544 $233 $777 AR $501 $256 $757 SC $465 $249 $714 HI $11 $7 $18


IMPLAN Data Year: 2016Spend Data Year: 2017Areas in Model: United States

Tax impacts

Table 10: Taxes by institution receiving

Description Employee Compensation

Production & Imports Tax Households Corporations Proprietor

Income Total

Federal $32,234,338 $3,675,902 $27,164,074 $6,191,323 $4,581,011 $73,846,649

State $1,074,519 $29,837,716 $9,104,917 $684,312 $0 $40,701,464

Total $33,308,857 $33,513,619 $36,268,990 $6,875,636 $4,581,011 $114,548,113

Table 11: Federal tax



Income Total

Direct $19,240,615 $1,751,064 $16,472,854 $1,373,883 $2,952,843 $41,791,259

Indirect $5,625,648 $655,251 $4,668,133 $1,866,970 $777,722 $13,593,724

Induced $7,368,076 $1,269,587 $6,023,087 $2,950,471 $850,446 $18,461,666

Total $32,234,338 $3,675,902 $27,164,074 $6,191,323 $4,581,011 $73,846,649

Table 12: State and local tax



Income Total

Direct $639,507 $14,149,666 $5,495,712 ($4,769) $0 $20,280,117

Indirect $189,419 $5,363,056 $1,582,222 $263,378 $0 $7,398,075

Induced $245,593 $10,324,994 $2,026,982 $425,703 $0 $13,023,272

Total $1,074,519 $29,837,716 $9,104,917 $684,312 $0 $40,701,464

The tax impact report estimates total taxes paid, by government type and by tax type, by the sectors and institutions affected in an impact scenario. The tax impact report values are based on the existing relationships of the data found in the IMPLAN database. Here’s how this report came together:

Details of these impacts are displayed in Table 10.

Details of these impacts are displayed in Table 11.

Tax impacts on this level are reflected in the heat map on page 11.

Tax impacts on this level are reflected in the heat map on page 11.

$73m $41m $40m $20m

TOTAL FEDERAL TAX IMPACTSAnnual operations are estimated to generate $73,846,649 Federal tax revenue.

DIRECT FEDERAL TAX IMPACTSAnnual operations are estimated to generate $41,791,259 State tax revenue.

TOTAL STATE AND LOCAL TAX IMPACTSAnnual operations are estimated to generate $40,701,464 County tax revenue.

DIRECT STATE AND LOCAL TAX IMPACTSAnnual operations are estimated to generate $20,280,117 City tax revenue.

Tax impacts


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Include under US heat map the US federal/state impact

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Additional ResultsYour impact goes further than you realize

Table 13: Top 10 Impacted Industries by Employment

Description Total Emp. Total Labor Income

Total Value Added Total Output

Retail - Electronics and appliance stores 639 $37,674,658 $26,731,771 $41,690,999

Maintenance and repair construction of nonresidential structures 485 $22,435,468 $42,219,898 $78,730,412

Management consulting services 318 $19,287,522 $23,650,071 $38,351,385

Wholesale trade 315 $23,811,005 $50,155,559 $75,525,727

Marketing research and all other miscellaneous professional, scientific, and technical services

226 $3,296,083 $9,653,054 $15,737,953

Computer systems design services 160 $19,149,961 $17,772,420 $23,274,283

Real estate 139 $1,765,348 $22,832,767 $30,823,513

Employment services 131 $5,735,214 $8,549,906 $11,071,367

Motion picture and video industries 105 $3,393,984 $13,654,844 $22,421,687

Full-service restaurants 100 $2,438,649 $2,840,598 $5,185,140

Table 14: Top 10 Impacted Industries by Labor Income




Wholesale trade 315 $23,811,005 $50,155,559 $75,525,727




Architectural, engineering, and related services 90 $7,908,999 $8,572,618 $15,466,074

Employment services 131 $5,735,214 $8,549,906 $11,071,367

Other computer related services, including facilities management 59 $5,459,857 $6,510,621 $9,205,773

Management of companies and enterprises 40 $5,159,783 $6,262,781 $9,994,301

Hospitals 63 $5,154,917 $6,073,237 $10,266,241

Additional ResultsTable 15: Top 10 Impacted Industries by Total Value Added



Wholesale trade 315 $23,811,005 $50,155,559 $75,525,727




Real estate 139 $1,765,348 $22,832,767 $30,823,513


Owner-occupied dwellings 0 $0 $16,764,831 $25,833,164



226 $3,296,083 $9,653,054 $15,737,953


Table 16: Top 10 Impacted Industries by Total Output




Wholesale trade 315 $23,811,005 $50,155,559 $75,525,727



Real estate 139 $1,765,348 $22,832,767 $30,823,513

Owner-occupied dwellings 0 $0 $16,764,831 $25,833,164




226 $3,296,083 $9,653,054 $15,737,953



GlossaryDirect Effects: Direct effects are the immediate result of the direct spend. Applying these initial changes/dollars spent to the multipliers in an IMPLAN model will then display how the region will respond, economically to these purchases.

Employee Compensation: Employee Compensation in IMPLAN is the total payroll cost of employees. This includes wages and salaries, all benefits (e.g., health, retirement) and payroll taxes (both sides of social security, unemployment insurance taxes, etc.). Also referred to as fully-loaded payroll.

Employment: Employment in IMPLAN includes full-time, part-time, and seasonal workers and therefore does not represent full-time-equivalents (FTEs). IMPLAN employment includes wage and salary employees as well as proprietors (self-employed individuals and unincorporated business owners).

Event Year: Model Year reflects the year of the IMPLAN data. If this year differs from the year of your IMPLAN model data, IMPLAN will adjust your dollar values accordingly via its built-in deflators.

Indirect Effects: Indirect impacts stem from local industries’ purchases of inputs (goods and services) from other local

industries. These purchases are also known as intermediate expenditures. For example, if the direct impact is the construction of a building, the first round of indirect effects will include a purchase of ready-mix concrete. This purchase of ready-mix concrete spurs the ready-mix concrete manufacturing industry to in turn purchase more sand and gravel. This purchase of sand and gravel is part of the second round of indirect effects. This cycle of spending continues to work its way backward through the supply chain, with each round of impacts getting smaller and smaller until all money leaks from the local economy by way of imports, taxes, and profits, which do not generate additional impacts locally. IMPLAN does not assume that all input purchases are made from local businesses; the proportion of local vs. non-local purchases varies by commodity and is built into the IMPLAN system.

Induced Effects: Note that IMPLAN models account for commuting patterns; thus, induced impacts will only reflect the spending of wages from residents. IMPLAN removes payroll taxes, personal taxes, and savings before allowing the remainder to be spent on goods and services. IMPLAN also accounts for imports and does not assume that all purchases of goods and services are made within the study area.

Labor Income: The sum of Employee Compensation and Proprietor Income.

Other Property Income: OPI represents corporate profits and depreciation.

Output: In the Supplier Diversity Analysis and Report, Direct Output represents the direct spend with diverse suppliers.

Proprietor Income: Proprietor income consists of payments received by self-employed individuals and unincorporated business owners.

Taxes on Production and Imports less Subsidies: TOPI is one of the four components of Value Added. It includes sales and excise taxes, customs duties, property taxes, motor vehicle licenses, severance taxes, other taxes, and special assessments.

Value Added: Value-added is the sum of Employee Compensation, Proprietor Income, Other Property Income, and TOPI. Value-Added + Intermediate Expenditures = Output. Value-Added is analogous to GDP.


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Global Economic Impact & Supplier Diversity Report · FEBRUARY 2018 Intel Global Economic Impact & Supplier Diversity Report No matter how seemingly small or fleeting, everything