Intel Reports Third-Quarter 2020 Financial Results

News Sum­ma­ry:

  • Third-quar­ter reve­nue of $18.3 bil­li­on was abo­ve July expec­ta­ti­ons, down 4 per­cent year-over-year (YoY). Data-centric reve­nue* decli­ned 10 per­cent while PC-centric reve­nue was bet­ter than expec­ted, up 1 per­cent YoY.
  • Third-quar­ter GAAP ear­nings-per-share (EPS) was $1.02, down 25 per­cent YoY; non-GAAP EPS of $1.11 was down 22 per­cent YoY, abo­ve July expectations.
  • Year-to-date, gene­ra­ted $25.5 bil­li­on cash from ope­ra­ti­ons and $15.1 bil­li­on of free cash flow and paid divi­dends of $4.2 billion.
  • Announ­ced agree­ment to sell Intel NAND memo­ry and sto­rage busi­ness to SK hynix for $9.0 billion.1
  • Rai­sing full-year reve­nue and ear­nings expec­ta­ti­ons from July gui­d­ance. Expec­ting 5 per­cent top-line growth YoY in 2020 with full-year reve­nue of $75.3 bil­li­on; GAAP EPS of $4.55 and non-GAAP EPS of $4.90.

SANTA CLARA, Calif., Octo­ber 22, 2020 — Intel Cor­po­ra­ti­on today repor­ted third-quar­ter 2020 finan­cial results.

Our teams deli­ve­r­ed solid third-quar­ter results that excee­ded our expec­ta­ti­ons des­pi­te pan­de­mic-rela­ted impacts in signi­fi­cant por­ti­ons of the busi­ness,” said Bob Swan, Intel CEO. “Nine mon­ths into 2020, we’re fore­cas­ting growth and ano­t­her record year, even as we mana­ge through mas­si­ve demand shifts and eco­no­mic uncer­tain­ty. We remain con­fi­dent in our stra­te­gy and the long-term value we’ll crea­te as we deli­ver lea­ders­hip pro­ducts and aim to win share in a diver­si­fied mar­ket fue­led by data and the rise of AI, 5G net­works and edge computing.”

Q3 2020 Finan­cial Highlights

  GAAP   Non-GAAP
  Q3 2020 Q3 2019 vs. Q3 2019   Q3 2020 Q3 2019 vs. Q3 2019
Reve­nue ($B) $18.3 $19.2 down 4%   $18.3^ $19.2^ down 4%
Gross Mar­gin 53.1% 58.9% down 5.7 ppt   54.8% 60.4% down 5.5 ppt
R&D and MG&A ($B) $4.7 $4.7 down 1%   $4.7 $4.7 down 1%
Ope­ra­ting Inco­me ($B) $5.1 $6.4 down 22%   $5.4 $6.9 down 22%
Tax Rate 15.2% 10.8% up 4.3 ppt   15.3% 10.8% up 4.5 ppt
Net Inco­me ($B) $4.3 $6.0 down 29%   $4.7 $6.3 down 26%
Ear­nings Per Share $1.02 $1.35 down 25%   $1.11 $1.42 down 22%

In the third quar­ter, the com­pa­ny gene­ra­ted $8.2 bil­li­on in cash from ope­ra­ti­ons and paid divi­dends of $1.4 bil­li­on. In August, Intel initia­ted acce­le­ra­ted share repurcha­se (ASR) agree­ments for an aggre­ga­te of $10.0 bil­li­on of our com­mon stock. Fol­lowing sett­le­ment of the­se agree­ments, Intel will have repurcha­sed a total of appro­xi­mate­ly $17.6 bil­li­on in shares as part of the plan­ned $20.0 bil­li­on share repurcha­ses announ­ced in Octo­ber 2019. Intel intends to com­ple­te the $2.4 bil­li­on balan­ce and return to his­to­ri­cal capi­tal return prac­ti­ces when mar­kets stabilize.

Busi­ness Unit Summary

  Key Busi­ness Unit Reve­nue and Trends
    Q3 2020 vs. Q3 2019
Data-centric DCG $5.9 bil­li­on down 7%
Inter­net of Things      
IOTG $677 mil­li­on down 33%
Mobi­leye $234 mil­li­on up 2%
NSG $1.2 bil­li­on down 11%
PSG $411 mil­li­on down 19%
    down 10%
PC-centric CCG $9.8 bil­li­on up 1%

Third-quar­ter reve­nue was ahead of pri­or expec­ta­ti­ons dri­ven by con­ti­nued strength in note­book sales, which hel­ped off­set COVID-dri­ven head­winds affec­ting signi­fi­cant por­ti­ons of our business.

In the Data Cen­ter Group (DCG), Cloud reve­nue grew 15 per­cent YoY on con­ti­nued demand to sup­port vital ser­vices in a work and learn-at-home envi­ron­ment. At the same time, a wea­ker eco­no­my due to COVID-19 impac­ted DCG’s Enter­pri­se & Government mar­ket seg­ment, which was down 47 per­cent YoY fol­lowing two quar­ters of more than 30 per­cent growth. The pan­de­mic also weig­hed on third-quar­ter data-centric results in the Inter­net of Things Group and the memo­ry busi­ness (NSG). In the third quar­ter, Intel con­ti­nued to intro­du­ce com­pel­ling new pro­ducts addres­sing key growth oppor­tu­nities inclu­ding arti­fi­cial intel­li­gence, 5G net­work trans­for­ma­ti­on and the intel­li­gent, auto­no­mous edge. Mobi­leye reve­nue retur­ned to growth in the third quar­ter as glo­bal vehi­cle pro­duc­tion impro­ved. The busi­ness also laun­ched its new Mobi­leye Super­Vi­si­on™ sur­round-view ADAS solution.

The PC-centric busi­ness (CCG) was up 1 per­cent YoY in the third quar­ter on con­ti­nued note­book strength to sup­port the work- and learn-at-home dyna­mics of COVID-19. In the third quar­ter, Intel laun­ched the world’s best pro­ces­sor for thin and light lap­tops, 11th Gen Intel® Core™ pro­ces­sors with Intel® Iris® Xe gra­phics (form­er­ly known as “Tiger Lake”).** More than 150 designs from major PC makers are in deve­lo­p­ment, inclu­ding 100 designs expec­ted to be in mar­ket by the end of this year with more than 40 veri­fied under the new Intel® Evo™ plat­form brand. The­se new 11th Gen Intel Core pro­ces­sors are manu­fac­tu­red using Intel’s 10nm Super­Fin pro­cess tech­no­lo­gy, which deli­vers per­for­mance impro­ve­ment com­pa­ra­ble to a full-node tran­si­ti­on. The com­pa­ny detail­ed 10nm Super­Fin and other tech­no­lo­gy advan­ce­ments at its Intel Archi­tec­tu­re Day, held in the third quarter.

Intel’s third 10nm manu­fac­tu­ring faci­li­ty, which is loca­ted in Ari­zo­na, is now ful­ly ope­ra­tio­nal and the com­pa­ny now expects to ship 30% hig­her 10nm pro­duct volu­mes in 2020 com­pa­red to Janu­a­ry expectations.

Addi­tio­nal infor­ma­ti­on regar­ding Intel’s results can be found in the Q3’20 Ear­nings Pre­sen­ta­ti­on avail­ab­le at: www.intc.com/results.cfm.

Busi­ness Outlook

Intel’s gui­d­ance for the fourth quar­ter and full-year 2020 inclu­des both GAAP and non-GAAP esti­ma­tes. Recon­ci­lia­ti­ons bet­ween the­se GAAP and non-GAAP finan­cial mea­su­res are inclu­ded below.

 

Q4 2020 GAAP   Non-GAAP
  Appro­xi­mate­ly   Appro­xi­mate­ly
Reve­nue $17.4 bil­li­on   $17.4 bil­li­on^
Ope­ra­ting margin 24.5%   26.5%
Tax rate 14.5%   14.5%^
Ear­nings per share $1.02   $1.10

 

Full-Year 2020 GAAP   Non-GAAP
  Appro­xi­mate­ly   Appro­xi­mate­ly
Reve­nue $75.3 bil­li­on   $75.3 bil­li­on^
Ope­ra­ting margin 29.5%   31.5%
Tax rate 14.5%   14.5%^
Ear­nings per share $4.55   $4.90
Cash from Operations $32.2–33.0 bil­li­on   N/A
Full-year capi­tal spending $14.2–14.5 bil­li­on   $14.2–14.5 bil­li­on^
Free cash flow N/A   $18.0–18.5 bil­li­on

 

Actu­al results may dif­fer mate­ri­al­ly from Intel’s Busi­ness Out­look as a result of, among other things, the fac­tors descri­bed under “For­ward-Loo­king State­ments” below.

Ear­nings Webcast

Intel will hold a public web­cast at 2:00 p.m. PDT today to dis­cuss the results for its third quar­ter of 2020. The live public web­cast can be acces­sed on Intel’s Inves­tor Rela­ti­ons web­site at www.intc.com/results.cfm. The Q3’20 Ear­nings Pre­sen­ta­ti­on, web­cast replay, and audio down­load will also be avail­ab­le on the site. 

Intel plans to report its ear­nings for the fourth quar­ter of 2020 on Janu­a­ry 21, 2021 prompt­ly after clo­se of mar­ket, and rela­ted mate­ri­als will be avail­ab­le at www.intc.com/results.cfm. A public web­cast of Intel’s ear­nings con­fe­rence call will fol­low at 2:00 p.m. PDT at www.intc.com. 

For­ward-Loo­king Statements

Intel’s Busi­ness Out­look and other state­ments in this release that refer to future plans and expec­ta­ti­ons are for­ward-loo­king state­ments that invol­ve a num­ber of risks and uncer­tain­ties. Words such as “anti­ci­pa­tes,” “expects,” “intends,” “goals,” “plans,” “fore­cas­ting,” “gui­d­ance,” “belie­ves,” “seeks,” “esti­ma­tes,” “con­ti­nues,” “laun­ching,” “aim,” “may,” “will,” “would,” “should,” “could,” and varia­ti­ons of such words and simi­lar expres­si­ons are inten­ded to iden­ti­fy such for­ward-loo­king state­ments. State­ments that refer to or are based on esti­ma­tes, fore­casts, pro­jec­tions, uncer­tain events or assump­ti­ons, inclu­ding state­ments rela­ting to the pen­ding sale of our NAND memo­ry and sto­rage busi­ness to SK hynix, total address­able mar­ket (TAM) or mar­ket oppor­tu­ni­ty, busi­ness plans, future impacts of the COVID-19 pan­de­mic, future macroeco­no­mic con­di­ti­ons, the sett­le­ment of our ASR agree­ments, expec­ta­ti­ons regar­ding capi­tal return prac­ti­ces and share repurcha­ses, future pro­ducts and tech­no­lo­gy and the expec­ted avai­la­bi­li­ty and bene­fits of such pro­ducts and tech­no­lo­gy, inclu­ding with respect to our 10nm pro­cess tech­no­lo­gy, pro­ducts, and pro­duct volu­mes, and anti­ci­pa­ted trends in our busi­nes­ses or the mar­kets rele­vant to them, also iden­ti­fy for­ward-loo­king state­ments. All for­ward-loo­king state­ments inclu­ded in this release are based on management’s expec­ta­ti­ons as of the date of this release and, except as requi­red by law, Intel dis­c­laims any obli­ga­ti­on to update the­se for­ward-loo­king state­ments to reflect future events or cir­cum­s­tan­ces. For­ward-loo­king state­ments invol­ve many risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se expres­sed or implied in such state­ments. Intel pre­sent­ly con­si­ders the fol­lowing to be among the important fac­tors that can cau­se actu­al results to dif­fer mate­ri­al­ly from the company’s expectations.

  • The COVID-19 pan­de­mic has adver­se­ly affec­ted signi­fi­cant por­ti­ons of Intel’s busi­ness and could mate­ri­al­ly adver­se­ly affect Intel’s finan­cial con­di­ti­on and results of ope­ra­ti­ons. The pan­de­mic has resul­ted in aut­ho­ri­ties impo­sing nume­rous unpre­ce­den­ted mea­su­res to try to con­tain the virus. The­se mea­su­res have impac­ted and may fur­ther impact our work­for­ce and ope­ra­ti­ons, the ope­ra­ti­ons of our cus­to­mers, and tho­se of our respec­ti­ve ven­dors, sup­pliers, and part­ners. The­re is con­si­derable uncer­tain­ty regar­ding the busi­ness impacts from such mea­su­res and poten­ti­al future mea­su­res. Restric­tions on our access to or ope­ra­ti­on of our manu­fac­tu­ring faci­li­ties or on our sup­port ope­ra­ti­ons or work­for­ce, or simi­lar limi­ta­ti­ons for our ven­dors and sup­pliers, can impact our abi­li­ty to meet cus­to­mer demand and could have a mate­ri­al adver­se effect on us. Simi­lar­ly, cur­rent and future restric­tions or dis­rup­ti­ons of trans­por­ta­ti­on, or dis­rup­ti­ons in our cus­to­mers’ ope­ra­ti­ons and sup­ply chains, may adver­se­ly affect our results of ope­ra­ti­ons. The pan­de­mic has signi­fi­cant­ly incre­a­sed eco­no­mic and demand uncer­tain­ty, and could cau­se a glo­bal reces­si­on. Demand for our pro­ducts has been har­med in signi­fi­cant por­ti­ons of our busi­ness and could be mate­ri­al­ly har­med in the future. Given the signi­fi­cant eco­no­mic uncer­tain­ty and vola­ti­li­ty crea­ted by the pan­de­mic, it is dif­fi­cult to pre­dict the natu­re and extent of impacts on demand. The pan­de­mic has led to incre­a­sed dis­rup­ti­on and vola­ti­li­ty in capi­tal mar­kets and credit mar­kets, which could adver­se­ly affect our liqui­di­ty and capi­tal resour­ces. An eco­no­mic slow­down or reces­si­on can also result in adver­se impacts such as incre­a­sed credit and collec­ti­bi­li­ty risks, adver­se impacts on our sup­pliers, fail­u­res of coun­ter­par­ties, asset impairments, and decli­nes in the value of our finan­cial instru­ments. The spread of COVID-19 has cau­sed us to modi­fy our busi­ness prac­ti­ces. The­re is no cer­tain­ty that such mea­su­res will be suf­fi­ci­ent to miti­ga­te the risks posed by the virus, and ill­ness and work­for­ce dis­rup­ti­ons could lead to unavai­la­bi­li­ty of our key per­son­nel and harm our abi­li­ty to per­form cri­ti­cal func­tions. The degree to which COVID-19 impacts our results will depend on future deve­lo­p­ments, which are high­ly uncer­tain and can­not be pre­dic­ted, and our Busi­ness Out­look is sub­ject to con­si­derable uncer­tain­ty. Our expec­ta­ti­ons are sub­ject to chan­ge without warning and inves­tors are cau­tio­ned not to place undue reli­an­ce on our Busi­ness Out­look. The impact of COVID-19 can also exa­cer­ba­te other risks dis­cus­sed in this sec­tion. See Intel’s SEC filings, inclu­ding its most recent reports on Form 10‑Q, for a detail­ed descrip­ti­on of the risks rela­ted to the pan­de­mic. Deve­lo­p­ments rela­ted to COVID-19 have been rapidly chan­ging, and addi­tio­nal impacts and risks may ari­se that we are not awa­re of or able to appro­pria­te­ly respond to currently.
  • Demand for Intel’s pro­ducts is high­ly varia­ble and can dif­fer from expec­ta­ti­ons due to fac­tors inclu­ding chan­ges in busi­ness and eco­no­mic con­di­ti­ons; cus­to­mer con­fi­dence or inco­me levels, and the levels of cus­to­mer capi­tal spen­ding; the intro­duc­tion, avai­la­bi­li­ty and mar­ket accep­t­ance of Intel’s pro­ducts, pro­ducts used tog­e­ther with Intel pro­ducts, and com­pe­ti­tors’ pro­ducts; com­pe­ti­ti­ve and pri­cing pres­su­res, inclu­ding actions taken by com­pe­ti­tors; sup­ply cons­traints and other dis­rup­ti­ons affec­ting cus­to­mers; chan­ges in cus­to­mer order pat­terns inclu­ding order can­cel­la­ti­ons; chan­ges in cus­to­mer needs and emer­ging tech­no­lo­gy trends; and chan­ges in the level of inven­to­ry and com­pu­ting capa­ci­ty at customers.
  • Intel’s results can vary signi­fi­cant­ly from expec­ta­ti­ons based on capa­ci­ty uti­liz­a­ti­on; varia­ti­ons in inven­to­ry valua­ti­on, inclu­ding varia­ti­ons rela­ted to the timing of qua­li­fy­ing pro­ducts for sale; chan­ges in reve­nue levels; seg­ment pro­duct mix; the timing and exe­cu­ti­on of the manu­fac­tu­ring ramp and asso­cia­ted cos­ts; excess or obso­le­te inven­to­ry; chan­ges in unit cos­ts; defects or dis­rup­ti­ons in the sup­ply of mate­ri­als or resour­ces; and pro­duct manu­fac­tu­ring quality/yields. Varia­ti­ons in results can also be cau­sed by the timing of Intel pro­duct intro­duc­tions and rela­ted expen­ses, inclu­ding mar­ke­ting pro­grams, and Intel’s abi­li­ty to respond quick­ly to tech­no­lo­gi­cal deve­lo­p­ments and to intro­du­ce new pro­ducts or incor­po­ra­te new fea­tures into exis­ting pro­ducts, as well as decisi­ons to exit pro­duct lines or busi­nes­ses, which can result in rest­ruc­tu­ring and asset impairment charges.
  • Intel’s results can be affec­ted by adver­se eco­no­mic, social, poli­ti­cal and physical/infrastructure con­di­ti­ons in coun­tries whe­re Intel, its cus­to­mers or its sup­pliers ope­ra­te, inclu­ding reces­si­on or slowing growth, mili­ta­ry con­flict and other secu­ri­ty risks, natu­ral dis­as­ters, infra­st­ruc­tu­re dis­rup­ti­ons, health con­cerns (inclu­ding the COVID-19 pan­de­mic), fluc­tua­tions in cur­ren­cy exchan­ge rates, sanc­tions and tariffs, poli­ti­cal dis­pu­tes, chan­ges in government grants and incen­ti­ves, and con­ti­nuing uncer­tain­ty regar­ding social, poli­ti­cal, immi­gra­ti­on, and tax and tra­de poli­ci­es in the U.S. and abroad, inclu­ding the United Kingdom’s with­dra­wal from the Euro­pean Uni­on. Results can also be affec­ted by the for­mal or infor­mal impo­si­ti­on by coun­tries of new or revi­sed export and/or import and doing-busi­ness regu­la­ti­ons, which can be chan­ged without pri­or notice.
  • Intel ope­ra­tes in high­ly com­pe­ti­ti­ve indus­tries and its ope­ra­ti­ons have high cos­ts that are eit­her fixed or dif­fi­cult to redu­ce in the short term. In addi­ti­on, in con­nec­tion with our stra­te­gic trans­for­ma­ti­on to a data-centric com­pa­ny, we have ent­e­red new are­as and intro­du­ced adja­cent pro­ducts, whe­re we face new sources of com­pe­ti­ti­on and uncer­tain mar­ket demand or accep­t­ance of our pro­ducts, and the­se new are­as and pro­ducts do not always grow as projected.
  • The amount, timing and exe­cu­ti­on of Intel’s stock repurcha­se pro­gram fluc­tua­te based on Intel’s prio­ri­ties for the use of cash for other purposes—such as inves­ting in our busi­ness, inclu­ding ope­ra­tio­nal and capi­tal spen­ding, acqui­si­ti­ons, and retur­ning cash to our stock­hol­ders as divi­dend payments—and becau­se of chan­ges in cash flows, tax laws and other laws, or the mar­ket pri­ce of our com­mon stock.
  • Intel’s expec­ted tax rate is based on cur­rent tax law, inclu­ding cur­rent inter­pre­ta­ti­ons of the Tax Cuts and Jobs Act of 2017 (”TCJA”), and cur­rent expec­ted inco­me and can be affec­ted by evol­ving inter­pre­ta­ti­ons of TCJA; chan­ges in the volu­me and mix of pro­fits ear­ned across juris­dic­tions with vary­ing tax rates; chan­ges in the esti­ma­tes of credits, bene­fits and deduc­tions; the reso­lu­ti­on of issu­es ari­sing from tax audits with various tax aut­ho­ri­ties, inclu­ding pay­ment of inte­rest and pen­al­ties; and the abi­li­ty to rea­li­ze defer­red tax assets.
  • Intel’s results can be affec­ted by gains or los­ses from equi­ty secu­ri­ties and inte­rest and other, which can vary depen­ding on gains or los­ses on the chan­ge in fair value, sale, exchan­ge, or impairments of equi­ty and debt invest­ments, inte­rest rates, cash balan­ces, and chan­ges in fair value of deri­va­ti­ve instruments. 
  • Pro­duct defects or erra­ta (devia­ti­ons from publis­hed spe­ci­fi­ca­ti­ons) can adver­se­ly impact our expen­ses, reve­nues and reputation.
  • We or third par­ties regu­lar­ly iden­ti­fy secu­ri­ty vul­nera­bi­li­ties with respect to our pro­ces­sors and other pro­ducts as well as the ope­ra­ting sys­tems and workloads run­ning on them. Secu­ri­ty vul­nera­bi­li­ties and any limi­ta­ti­ons of, or adver­se effects resul­ting from, miti­ga­ti­on tech­ni­ques can adver­se­ly affect our results of ope­ra­ti­ons, finan­cial con­di­ti­on, cus­to­mer rela­ti­ons­hips, pro­spects, and repu­ta­ti­on in a num­ber of ways, any of which may be mate­ri­al, inclu­ding incur­ring signi­fi­cant cos­ts rela­ted to deve­lo­ping and deploy­ing updates and miti­ga­ti­ons, wri­ting down inven­to­ry value, a reduc­tion in the com­pe­ti­ti­ve­ness of our pro­ducts, defen­ding against pro­duct claims and liti­ga­ti­on, respon­ding to regu­la­to­ry inqui­ries or actions, paying dama­ges, addres­sing cus­to­mer satis­fac­tion con­si­de­ra­ti­ons, or taking other reme­di­al steps with respect to third par­ties. Adver­se publi­ci­ty about secu­ri­ty vul­nera­bi­li­ties or miti­ga­ti­ons could dama­ge our repu­ta­ti­on with cus­to­mers or users and redu­ce demand for our pro­ducts and services.
  • Intel’s results can be affec­ted by liti­ga­ti­on or regu­la­to­ry mat­ters invol­ving intel­lec­tu­al pro­per­ty, stock­hol­der, con­su­mer, anti­trust, com­mer­cial, dis­clo­sure and other issu­es. An unfa­vor­able ruling can inclu­de mone­ta­ry dama­ges or an injunc­tion pro­hi­bi­t­ing Intel from manu­fac­tu­ring or sel­ling one or more pro­ducts, pre­clu­ding par­ti­cu­lar busi­ness prac­ti­ces, impac­ting Intel’s abi­li­ty to design its pro­ducts, or requi­ring other reme­di­es such as com­pul­so­ry licen­sing of intel­lec­tu­al property.
  • Intel’s results can be affec­ted by the impact and timing of clo­sing of acqui­si­ti­ons, dive­s­ti­tures and other signi­fi­cant tran­sac­tions. In addi­ti­on, the­se tran­sac­tions do not always achie­ve our finan­cial or stra­te­gic objec­ti­ves and can dis­rupt our ongo­ing busi­ness and adver­se­ly impact our results of ope­ra­ti­ons. We may not rea­li­ze the expec­ted bene­fits of port­fo­lio decisi­ons due to nume­rous risks, inclu­ding unfa­vor­able pri­ces and terms; chan­ges in mar­ket con­di­ti­ons; limi­ta­ti­ons due to regu­la­to­ry or govern­men­tal appro­vals, con­trac­tu­al terms, or other con­di­ti­ons; and poten­ti­al con­ti­nued finan­cial obli­ga­ti­ons asso­cia­ted with such tran­sac­tions. Risks and uncer­tain­ties rela­ting to the pen­ding sale of our NAND memo­ry and sto­rage busi­ness to SK hynix are descri­bed in our Form 8‑K filed with the SEC on Octo­ber 20, 2020.

Detail­ed infor­ma­ti­on regar­ding the­se and other fac­tors that could affect Intel’s busi­ness and results is inclu­ded in Intel’s SEC filings, inclu­ding the company’s most recent reports on Forms 10‑K and 10‑Q, par­ti­cu­lar­ly the “Risk Fac­tors” sec­tions of tho­se reports. Copies of the­se filings may be obtai­ned by visi­t­ing our Inves­tor Rela­ti­ons web­site at www.intc.com or the SEC’s web­site at www.sec.gov.

About Intel

© Intel Cor­po­ra­ti­on. Intel, the Intel logo, and other Intel marks are trade­marks of Intel Cor­po­ra­ti­on or its sub­si­dia­ries. Other names and brands may be clai­med as the pro­per­ty of others.

CONTACTS: Broo­ke Wells Cara Wal­ker
  Inves­tor Relations Media Rela­ti­ons
  503–613-8230 503–696-0831
  brooke.wells@intel.com cara.walker@intel.com

 

 

INTEL CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND OTHER INFORMATION

    Three Mon­ths Ended   Nine Mon­ths Ended
(In Mil­li­ons, Except Per Share Amounts; Unaudited)   Sep 26, 2020   Sep 28, 2019   Sep 26, 2020   Sep 28, 2019
NET REVENUE   $ 18,333      $ 19,190      $ 57,889      $ 51,756   
Cost of sales   8,592      7,895      25,625      21,494   
GROSS MARGIN   9,741      11,295      32,264      30,262   
Rese­arch and deve­lo­p­ment (R&D)   3,272      3,208      9,901      9,978   
Mar­ke­ting, gene­ral and admi­nis­tra­ti­ve (MG&A)   1,435      1,536      4,423      4,758   
R&D AND MG&A   4,707      4,744      14,324      14,736   
Rest­ruc­tu­ring and other charges   (25)     104      146      288   
OPERATING EXPENSES   4,682      4,848      14,470      15,024   
OPERATING INCOME   5,059      6,447      17,794      15,238   
Gains (los­ses) on equi­ty invest­ments, net   56      318      212      922   
Inte­rest and other, net   (74)     (46)     (416)     (170)  
INCOME BEFORE TAXES   5,041      6,719      17,590      15,990   
Pro­vi­si­on for taxes   765      729      2,548      1,847   
NET INCOME   $ 4,276      $ 5,990      $ 15,042      $ 14,143   
                 
EARNINGS PER SHAREBASIC   $ 1.02      $ 1.36      $ 3.55      $ 3.18   
EARNINGS PER SHAREDILUTED   $ 1.02      $ 1.35      $ 3.52      $ 3.14   
                 
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:                
BASIC   4,188      4,391      4,233      4,450   
DILUTED   4,211      4,433      4,269      4,507   

 

    Three Mon­ths Ended
(In Mil­li­ons)   2020   2019
         
EARNINGS PER SHARE OF COMMON STOCK INFORMATION:        
Weigh­ted average shares of com­mon stock outstanding—basic   4,188      4,391   
Dilu­ti­ve effect of employee equi­ty incen­ti­ve plans   23      30   
Dilu­ti­ve effect of con­ver­ti­ble debt   —      12   
Weigh­ted average shares of com­mon stock outstanding—diluted   4,211      4,433   
         
STOCK BUYBACK1:        
Shares repurcha­sed   166      92   
Cumu­la­ti­ve shares repurcha­sed (in billions)   5.7      5.4   
Remai­ning dol­lars aut­ho­ri­zed for buy­back (in billions)   $ 9.7      $ 7.2   
         
OTHER INFORMATION:        
Employees (in thousands)   111.3      111.9   
                 

 

 

INTEL CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In Mil­li­ons)   2020   2019
CURRENT ASSETS   (unau­di­ted)    
Cash and cash equivalents   $ 3,356      $ 4,194   
Short-term invest­ments   2,987      1,082   
Tra­ding assets   11,910      7,847   
Total cash investments   18,253      13,123   
Accounts receiva­ble   7,140      7,659   
Invent­ories        
Raw mate­ri­als   975      840   
Work in process   6,313      6,225   
Finis­hed goods   1,985      1,679   
    9,273      8,744   
Other cur­rent assets   2,119      1,713   
TOTAL CURRENT ASSETS   36,785      31,239   
         
Pro­per­ty, plant and equip­ment, net   59,205      55,386   
Equi­ty investments   3,679      3,967   
Other long-term investments   2,720      3,276   
Good­will   26,955      26,276   
Iden­ti­fied intan­gi­ble assets, net   9,881      10,827   
Other long-term assets   6,036      5,553   
TOTAL ASSETS   $ 145,261      $ 136,524   
         
CURRENT LIABILITIES        
Short-term debt   $ 504      $ 3,693   
Accounts paya­ble   5,159      4,128   
Accrued com­pen­sa­ti­on and benefits   3,197      3,853   
Other accrued liabilities   13,252      10,636   
TOTAL CURRENT LIABILITIES   22,112      22,310   
         
Debt   36,059      25,308   
Con­tract liabilities   1,381      1,368   
Inco­me taxes paya­ble, non-current   4,811      4,919   
Defer­red inco­me taxes   2,995      2,044   
Other long-term liabilities   3,349      2,916   
         
TEMPORARY EQUITY   —      155   
         
Stock­hol­ders’ equity        
Pre­fer­red stock   —      —   
Com­mon stock and capi­tal in excess of par value   23,335      25,261   
Accu­mu­la­ted other com­pre­hen­si­ve inco­me (loss)   (940)     (1,280)  
Retai­ned earnings   52,159      53,523   
TOTAL STOCKHOLDERSEQUITY   74,554      77,504   
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERSEQUITY   $ 145,261      $ 136,524   

 

 

INTEL CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Nine Mon­ths Ended
(In Mil­li­ons; Unaudited)   2020   2019
         
Cash and cash equi­va­lents, begin­ning of period   $ 4,194      $ 3,019   
Cash flows pro­vi­ded by (used for) ope­ra­ting activities:        
Net inco­me   15,042      14,143   
Adjus­t­ments to recon­ci­le net inco­me to net cash pro­vi­ded by ope­ra­ting activities:        
Depre­cia­ti­on   7,925      6,647   
Share-based com­pen­sa­ti­on   1,393      1,290   
Amor­tiz­a­ti­on of intangibles   1,311      1,211   
(Gains) los­ses on equi­ty invest­ments, net   (105)     (395)  
Chan­ges in assets and liabilities:        
Accounts receiva­ble   525      (156)  
Invent­ories   (570)     (1,376)  
Accounts paya­ble   355      728   
Accrued com­pen­sa­ti­on and benefits   (488)     (365)  
Pre­paid sup­ply agreements   (91)     (674)  
Inco­me taxes   493      435   
Other assets and liabilities   (296)     1,769   
Total adjus­t­ments   10,452      9,114   
Net cash pro­vi­ded by ope­ra­ting activities   25,494      23,257   
Cash flows pro­vi­ded by (used for) inves­ting activities:        
Addi­ti­ons to pro­per­ty, plant and equipment   (10,392)     (11,547)  
Purcha­ses of avail­ab­le-for-sale debt investments   (6,323)     (2,028)  
Matu­ri­ties and sales of avail­ab­le-for-sale debt investments   5,037      3,118   
Purcha­ses of tra­ding assets   (14,744)     (5,769)  
Matu­ri­ties and sales of tra­ding assets   11,227      5,467   
Sales of equi­ty investments   339      1,414   
Other inves­ting   (256)     (575)  
Net cash used for inves­ting activities   (15,112)     (9,920)  
Cash flows pro­vi­ded by (used for) finan­cing activities:        
Incre­a­se (decre­a­se) in short-term debt, net   —      835   
Issu­an­ce of long-term debt, net of issu­an­ce costs   10,247      650   
Repay­ment of debt and debt conversion   (4,525)     (1,478)  
Pro­ceeds from sales of com­mon stock through employee equi­ty incen­ti­ve plans   897      797   
Repurcha­se of com­mon stock   (12,229)     (10,100)  
Acce­le­ra­ted share repurcha­se for­ward agreements   (2,000)     —   
Pay­ment of divi­dends to stockholders   (4,215)     (4,214)  
Other finan­cing   605      1,089   
Net cash pro­vi­ded by (used for) finan­cing activities   (11,220)     (12,421)  
Net incre­a­se (decre­a­se) in cash and cash equivalents   (838)     916   
Cash and cash equi­va­lents, end of period   $ 3,356      $ 3,935   

 

 

INTEL CORPORATION

SUPPLEMENTAL OPERATING SEGMENT RESULTS

    Three Mon­ths Ended   Nine Mon­ths Ended
(In Mil­li­ons)   2020   2019   2020   2019
Net reve­nue                
Data Cen­ter Group                
Plat­form   $ 5,151      $ 5,819      $ 17,759      $ 14,854   
Adja­cen­cy   754      564      2,256      1,414   
    5,905      6,383      20,015      16,268   
Inter­net of Things                
IOTG   677      1,005      2,230      2,901   
Mobi­leye   234      229      634      639   
    911      1,234      2,864      3,540   
                 
Non-Vola­ti­le Memo­ry Solu­ti­ons Group   1,153      1,290      4,150      3,145   
Pro­gramm­a­ble Solu­ti­ons Group   411      507      1,431      1,482   
Cli­ent Com­pu­ting Group                
Plat­form   8,762      8,379      25,703      24,128   
Adja­cen­cy   1,085      1,330      3,415      3,008   
    9,847      9,709      29,118      27,136   
All other   106      67      311      185   
TOTAL NET REVENUE   $ 18,333      $ 19,190      $ 57,889      $ 51,756   
                 
Ope­ra­ting inco­me (loss)                
Data Cen­ter Group   $ 1,903      $ 3,115      $ 8,494      $ 6,756   
Inter­net of Things                
IOTG   61      309      374      854   
Mobi­leye   47      67      131      188   
    108      376      505      1,042   
                 
Non-Vola­ti­le Memo­ry Solu­ti­ons Group   29      (499)     285      (1,080)  
Pro­gramm­a­ble Solu­ti­ons Group   40      92      217      233   
Cli­ent Com­pu­ting Group   3,554      4,305      10,621      11,114   
All other   (575)     (942)     (2,328)     (2,827)  
TOTAL OPERATING INCOME   $ 5,059      $ 6,447      $ 17,794      $ 15,238   

We deri­ve a sub­stan­ti­al majo­ri­ty of our reve­nue from plat­form pro­ducts, which are our princi­pal pro­ducts and con­si­de­red as one class of pro­duct. We offer plat­form pro­ducts that incor­po­ra­te various com­pon­ents and tech­no­lo­gies, inclu­ding a micro­pro­ces­sor and chip­set, a stand-alo­ne SoC, or a mul­ti­chip packa­ge. Plat­form pro­ducts are used in various form fac­tors across our DCG, IOTG, and CCG ope­ra­ting seg­ments. Our non-plat­form, or adja­cent pro­ducts, can be com­bi­ned with plat­form pro­ducts to form com­pre­hen­si­ve plat­form solu­ti­ons to meet cus­to­mer needs.

Reve­nue for our repor­ta­ble and non-repor­ta­ble ope­ra­ting seg­ments is pri­ma­ri­ly rela­ted to the fol­lowing pro­duct lines:

  • inclu­des workload-opti­mi­zed plat­forms and rela­ted pro­ducts desi­gned for cloud ser­vice pro­vi­ders, enter­pri­se and government, and com­mu­ni­ca­ti­on ser­vice pro­vi­ders mar­ket segments.
  • IOTG inclu­des high-per­for­mance com­pu­te solu­ti­ons for tar­ge­ted ver­ti­cals and embed­ded app­li­ca­ti­ons in mar­ket seg­ments such as retail, indus­tri­al, smart infra­st­ruc­tu­re, and vision. 
  • Mobi­leye inclu­des deve­lo­p­ment of com­pu­ter visi­on and machi­ne lear­ning-based sen­sing, data ana­ly­sis, loca­liz­a­ti­on, map­ping, and dri­ving poli­cy tech­no­lo­gy for advan­ced dri­ver assi­s­tance sys­tems (ADAS) and auto­no­mous driving.
  • NSG inclu­des memo­ry and sto­rage pro­ducts like Intel® Opta­ne™ tech­no­lo­gy and Intel® 3D NAND tech­no­lo­gy, pri­ma­ri­ly used in SSDs.
  • PSG inclu­des pro­gramm­a­ble semi­con­duc­tors, pri­ma­ri­ly FPGAs and struc­tu­red ASICs, and rela­ted pro­ducts for com­mu­ni­ca­ti­ons, cloud and enter­pri­se, and embed­ded mar­ket segments.
  • plat­forms desi­gned for end-user form fac­tors, focu­sing on hig­her growth seg­ments of 2‑in‑1, thin-and-light, com­mer­cial and gaming, and gro­wing adja­cen­ci­es such as con­nec­ti­vi­ty, gra­phics, and memory.

We have sales and mar­ke­ting, manu­fac­tu­ring, engi­nee­ring, finan­ce, and admi­nis­tra­ti­on groups. Expen­ses for the­se groups are gene­ral­ly allo­ca­ted to the ope­ra­ting segments.

All other cate­go­ry inclu­des reve­nue, expen­ses, and char­ges such as:

  • results of ope­ra­ti­ons from non-repor­ta­ble seg­ments not other­wi­se presented;
  • his­to­ri­cal results of ope­ra­ti­ons from dive­s­ted businesses;
  • results of ope­ra­ti­ons of start-up busi­nes­ses that sup­port our initia­ti­ves, inclu­ding our found­ry business; 
  • amounts inclu­ded wit­hin rest­ruc­tu­ring and other charges;
  • a por­ti­on of employee bene­fits, com­pen­sa­ti­on, and other expen­ses not allo­ca­ted to the ope­ra­ting seg­ments; and
  • acqui­si­ti­on-rela­ted cos­ts, inclu­ding amor­tiz­a­ti­on and any impairment of acqui­si­ti­on-rela­ted intan­gi­bles and goodwill. 

INTEL CORPORATION

SUPPLEMENTAL PLATFORM REVENUE INFORMATION

    Q3 2020   Q3 2020   YTD 2020
    Q2 2020   Q3 2019   YTD 2019
Data Cen­ter Group            
Plat­form volumes   (3)%   4%   19%
Plat­form average sel­ling prices   (14)%   (15)%   —%
             
Cli­ent Com­pu­ting Group            
Desk­top plat­form volumes   10%   (18)%   (12)%
Desk­top plat­form average sel­ling prices   (5)%   —%   2%
Note­book plat­form volumes   19%   25%   19%
Note­book plat­form average sel­ling prices   (10)%   (7)%   (2)% 

INTEL CORPORATION

EXPLANATION OF NON-GAAP MEASURES

In addi­ti­on to dis­clo­sing finan­cial results in accordance with U.S. GAAP, this docu­ment con­tains refe­ren­ces to the non-GAAP finan­cial mea­su­res below. We belie­ve the­se non-GAAP finan­cial mea­su­res pro­vi­de inves­tors with use­ful sup­ple­men­tal infor­ma­ti­on about our ope­ra­ting per­for­mance, enab­le com­pa­ri­son of finan­cial trends and results bet­ween peri­ods whe­re cer­tain items may vary inde­pen­dent of busi­ness per­for­mance, and allow for grea­ter trans­pa­ren­cy with respect to key metrics used by manage­ment in ope­ra­ting our busi­ness and mea­su­ring our performance.

Our non-GAAP finan­cial mea­su­res reflect adjus­t­ments based on one or more of the fol­lowing items, as well as the rela­ted inco­me tax effects whe­re app­li­ca­ble. Inco­me tax effects have been cal­cu­la­ted using an appro­pria­te tax rate for each adjus­t­ment. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the finan­cial results cal­cu­la­ted in accordance with U.S. GAAP and recon­ci­lia­ti­ons from the­se results should be care­ful­ly evaluated.

Non-GAAP adjus­t­ment or measure Defi­ni­ti­on Use­ful­ness to manage­ment and investors
Acqui­si­ti­on-rela­ted adjustments Amor­tiz­a­ti­on of acqui­si­ti­on-rela­ted intan­gi­ble assets con­sists of amor­tiz­a­ti­on of intan­gi­ble assets such as deve­lo­ped tech­no­lo­gy, brands, and cus­to­mer rela­ti­ons­hips acqui­red in con­nec­tion with busi­ness com­bi­na­ti­ons. Char­ges rela­ted to the amor­tiz­a­ti­on of the­se intan­gi­bles are recor­ded wit­hin both cost of sales and MG&A in our U.S. GAAP finan­cial state­ments. Amor­tiz­a­ti­on char­ges are recor­ded over the esti­ma­ted use­ful life of the rela­ted acqui­red intan­gi­ble asset, and thus are gene­ral­ly recor­ded over mul­ti­ple years. We exclu­de amor­tiz­a­ti­on char­ges for our acqui­si­ti­on-rela­ted intan­gi­ble assets for pur­po­ses of cal­cu­la­ting cer­tain non-GAAP mea­su­res becau­se the­se char­ges are incon­sis­tent in size and are signi­fi­cant­ly impac­ted by the timing and valua­ti­on of our acqui­si­ti­ons. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­son to our past ope­ra­ting per­for­mance and pro­vi­de inves­tors with addi­tio­nal means to eva­lua­te cost and expen­se trends.
Rest­ruc­tu­ring and other charges Rest­ruc­tu­ring char­ges are cos­ts asso­cia­ted with a for­mal rest­ruc­tu­ring plan and are pri­ma­ri­ly rela­ted to employee sever­an­ce and bene­fit arran­ge­ments. Other char­ges inclu­de asset impairments, pen­si­on char­ges, and cos­ts asso­cia­ted with rest­ruc­tu­ring activity. We exclu­de rest­ruc­tu­ring and other char­ges, inclu­ding any adjus­t­ments to char­ges recor­ded in pri­or peri­ods, for pur­po­ses of cal­cu­la­ting cer­tain non-GAAP mea­su­res becau­se the­se cos­ts do not reflect our cur­rent ope­ra­ting per­for­mance and are impac­ted by the timing of rest­ruc­tu­ring acti­vi­ty. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­sons to past ope­ra­ting results and pro­vi­de inves­tors with addi­tio­nal means to eva­lua­te expen­se trends.
Gains (los­ses) from divestiture Gains or los­ses are reco­gni­zed at the clo­se of a divestiture. We exclu­de gains or los­ses resul­ting from dive­s­ti­tures for pur­po­ses of cal­cu­la­ting cer­tain non-GAAP mea­su­res becau­se they do not reflect our cur­rent ope­ra­ting per­for­mance and are impac­ted by the timing of our dive­s­ti­tures. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­sons to past ope­ra­ting results.
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities After the initi­al mark-to-mar­ket adjus­t­ment is recor­ded upon a secu­ri­ty beco­m­ing mar­ket­a­ble, gains and los­ses are reco­gni­zed from ongo­ing mark-to-mar­ket adjus­t­ments of our mar­ket­a­ble equi­ty securities. We exclu­de the­se ongo­ing gains and los­ses for pur­po­ses of cal­cu­la­ting cer­tain non-GAAP mea­su­res becau­se we do not belie­ve this vola­ti­li­ty cor­re­la­tes to our core ope­ra­tio­nal per­for­mance. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­sons to past ope­ra­ting results.
Free cash flow We refe­rence a non-GAAP finan­cial mea­su­re of free cash flow, which is used by manage­ment when asses­sing our sources of liqui­di­ty, capi­tal resour­ces, and qua­li­ty of ear­nings. Free cash flow is ope­ra­ting cash flow adjus­ted to exclu­de addi­ti­ons to pro­per­ty, plant, and equipment. This non-GAAP finan­cial mea­su­re is hel­pful in under­stan­ding our capi­tal requi­re­ments and pro­vi­des an addi­tio­nal means to eva­lua­te the cash flow trends of our business.

 

INTEL CORPORATION

SUPPLEMENTAL RECONCILIATIONS OF GAAP OUTLOOK TO NON-GAAP OUTLOOK

Set forth below are recon­ci­lia­ti­ons of the non-GAAP finan­cial mea­su­re to the most direct­ly com­pa­ra­ble U.S. GAAP finan­cial mea­su­re. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the finan­cial out­look pre­pa­red in accordance with U.S. GAAP and the recon­ci­lia­ti­ons from this Busi­ness Out­look should be care­ful­ly evaluated.

Plea­se refer to “Explana­ti­on of Non-GAAP Mea­su­res” in this docu­ment for a detail­ed explana­ti­on of the adjus­t­ments made to the com­pa­ra­ble U.S. GAAP mea­su­res, the ways manage­ment uses the non-GAAP mea­su­res, and the rea­sons why manage­ment belie­ves the non-GAAP mea­su­res pro­vi­de use­ful infor­ma­ti­on for investors.

    Q4 2020 Outlook   Full-Year 2020
         
    Appro­xi­mate­ly   Appro­xi­mate­ly
GAAP OPERATING MARGIN   24.5  %   29.5  %
Acqui­si­ti­on-rela­ted adjustments   2.0  %   2.0  %
NON-GAAP OPERATING MARGIN   26.5  %   31.5  %
         
GAAP DILUTED EARNINGS PER COMMON SHARE   $ 1.02      $ 4.55   
Acqui­si­ti­on-rela­ted adjustments   0.09      0.33   
Rest­ruc­tu­ring and other charges   —      0.04   
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities   —      0.02   
Inco­me tax effect   (0.01)     (0.04)  
NON-GAAP DILUTED EARNINGS PER COMMON SHARE   $ 1.10      $ 4.90   

 

(In Bil­li­ons)   Full-Year 2020
     
GAAP CASH FROM OPERATIONS   $                    32.2–33.0
Addi­ti­ons to pro­per­ty, plant and equipment   (14.2–14.5)
FREE CASH FLOW   $                    18.0–18.5

 

 

INTEL CORPORATION

SUPPLEMENTAL RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS

Set forth below are recon­ci­lia­ti­ons of the non-GAAP finan­cial mea­su­re to the most direct­ly com­pa­ra­ble U.S. GAAP finan­cial mea­su­re. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the recon­ci­lia­ti­ons from U.S. GAAP to Non-GAAP actu­als should be care­ful­ly eva­lua­ted. Plea­se refer to “Explana­ti­on of Non-GAAP Mea­su­res” in this docu­ment for a detail­ed explana­ti­on of the adjus­t­ments made to the com­pa­ra­ble U.S. GAAP mea­su­res, the ways manage­ment uses the non-GAAP mea­su­res, and the rea­sons why manage­ment belie­ves the non-GAAP mea­su­res pro­vi­de use­ful infor­ma­ti­on for investors.

  Three Mon­ths Ended
(In Mil­li­ons, Except Per Share Amounts) 2020   2019
GAAP GROSS MARGIN $ 9,741      $ 11,295   
Acqui­si­ti­on-rela­ted adjustments 310      288   
NON-GAAP GROSS MARGIN $ 10,051      $ 11,583   
       
GAAP GROSS MARGIN PERCENTAGE 53.1  %   58.9  %
Acqui­si­ti­on-rela­ted adjustments 1.7  %   1.5  %
NON-GAAP GROSS MARGIN PERCENTAGE 54.8  %   60.4  %
       
GAAP R&D and MG&A $ 4,707      $ 4,744   
Acqui­si­ti­on-rela­ted adjustments (52)     (50)  
NON-GAAP R&D and MG&A $ 4,655      $ 4,694   
       
GAAP OPERATING INCOME $ 5,059      $ 6,447   
Acqui­si­ti­on-rela­ted adjustments 362      338   
Rest­ruc­tu­ring and other charges (25)     104   
NON-GAAP OPERATING INCOME $ 5,396      $ 6,889   
       
GAAP TAX RATE 15.2  %   10.8  %
Other 0.1  %   (0.1) %
NON-GAAP TAX RATE 15.3  %   10.8  %
       
GAAP NET INCOME $ 4,276      $ 5,990   
Acqui­si­ti­on-rela­ted adjustments 362      338   
Rest­ruc­tu­ring and other charges (25)     104   
(Gains) los­ses from divestiture (6)     —   
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities 146      (114)  
Inco­me tax effect (78)     (29)  
NON-GAAP NET INCOME $ 4,675      $ 6,289   
       
GAAP DILUTED EARNINGS PER COMMON SHARE $ 1.02      $ 1.35   
Acqui­si­ti­on-rela­ted adjustments 0.09      0.08   
Rest­ruc­tu­ring and other charges (0.01)     0.02   
(Gains) los­ses from divestiture —      —   
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities 0.03      (0.02)  
Inco­me tax effect (0.02)     (0.01)  
NON-GAAP DILUTED EARNINGS PER COMMON SHARE $ 1.11      $ 1.42   

 

  Nine Mon­ths Ended
(In Mil­li­ons) 2020
   
GAAP CASH FROM OPERATIONS $ 25,494   
Addi­ti­ons to pro­per­ty, plant and equipment (10,392)  
FREE CASH FLOW $ 15,102   
   
GAAP CASH USED FOR INVESTING ACTIVITIES $ (15,112)  
GAAP CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES $ (11,220)  

 

Released Octo­ber 22, 2020

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