‘April 10,2017 (i Mr. Phil Ros, Manager ‘Sandoval County 1500 Idalia Road, Bullding D Bernalilo, M8704 Dear Mr Rios: ‘As per Inte’s 2004 Industrial Revenue Bond (IRB) lease agreement with Sandoval County, please accept the following as intel's 2016 Annual Report. Intel n the Community 2016 marked Intel's 36* year in New Mexico. Employees continue to give back tothe ‘community thet has supported us and contributed to our success for nearly four decades. + In2016, employees set new site records for volunteerism. 57% of our employees volunteered over 31,000 hours in the community. As. result the state's Commission for Community Volunteerism recently recognized Intel as a*New Mexico Champion of Volunteerism.” + During the holiday season, Intel employees provided 450 Thanksgiving meals and adopted more than 55 families in Sandoval County. + Overal Inte, the Intel Foundation, and intel employees contributed over ‘$1 millon in support of K-12 classrooms, secondary and post-secondary education, ‘non-profit and other charitable organizations across the state. These investments continue to support a more skiled and competitive workforce for the future, and {enable many solutions to social and educational challenges in our communities. Intel Achievement Awards ‘Two of Intel's New Menico-based teams received an intel Achievement Award (VA) for their significant contributions inthe past year. The AAs Inte’ highest honor that an individual or small team canreceive. It recognizes and celebrates the innovation and results that have had the greatest relevance to and impact on Intel's top business priorities ani ‘Our New Mexico site is one of Intel's high-volume manufacturing facilities that we continue to invest in and s.pport. + 1n20%6 Intel invested approximately $43 milion in capital forthe fallty ~ an increase ‘of nearly $13 milion over 2015. ‘+ Perour RB agreement, Intel pald $9.15 million to the County. ‘+ Property tax paid to Sandoval County for 2016 was $708,946.49, hilt‘Economic Immact Intel has a strong positive economic impact on the state ‘+ Inte’s preference isto source locally when possible and, as result, we spent just ‘under $200 milion with New Mexico-based organizations in 2016. + Intel employs nearly 1,200 highly-skilled individuals. In 2076, approximately 7,000 contract workers worked with Intel, of which approximately 500 provided on-site services dally + Intel announced last spring that we would be restructuring the company and that,as part ofthat restructuring, we would be reducing our global headcount through Involuntary and voluntary separations and relocations. ‘+The New Mexico site was impacted as all sites were. Nearly half of the employees that {eft the Rio Rancho site were retirements. Most ofthe remainder were relocated or chose a voluntary separation package. The smallest group received involuntary separaton packages, including extended medical coverage for them and their families as wells transition and outplacement services. + Intel New Mexico employees’ average total compensation, as ofthe end of 2076, was. ‘more than $140,000 per year (includes salary, benefits and bonuses Hiring ‘+ Intel hired 12 new employees in New Mexico in 2076, AS stated in Inte’s 2004 IR ‘agreement, Intel needs to meet a yearly goal of 6056 New Mexico resident hiring. That {goal was reached in 2016. New Mexico hites accounted for 100% of the total new hires. ‘+ Since Intet's 1995 IRB agreement, 63% of nte’s new hires in at the Rlo Rancho plant hhave been among New Mexico residents. Below isa table summarizing Inte’ (ocal hiring since 1998. Total NM ry Tot NM, NM ce em ee oe es er Creer (Creer 7951102 0 GL 7% 1998 1073, 668 62.2% 199716281093 671% 1998 50 34 680% 1999138. 126 913% 2000 1368 932 6B 2001485 245 505% 200265 40 615% 20236 27 750% 2008105 65 619% 2008341 239 701%By accepting this report into the record, the cornmission officially notes Intel Carparation to have met the intent outlined in Section 5.12, subparagraph A, of the 2004 IRB lease agreement. Regards, Lbiwres Director, New Mexico Public Affairs Intel Corporation