Intel Reports Fourth-Quarter and Full-Year 2021 Financial Results

Deli짯vers Record Quar짯ter짯ly and Full-Year Revenue

News Sum짯ma짯ry

뼧       Fourth-quar짯ter GAAP reve짯nue was $20.5 bil짯li짯on, excee짯ding Octo짯ber gui짯dance by $1.3 bil짯li짯on and up 3 per짯cent year-over-year (YoY). Fourth-quar짯ter non-GAAP reve짯nue was $19.5 bil짯li짯on, excee짯ding Octo짯ber gui짯dance by $1.2 bil짯li짯on. Full-year GAAP reve짯nue set an all-time Intel record of $79.0 bil짯li짯on, up 1 per짯cent YoY.

뼧       Deli짯ver짯ed GAAP fourth-quar짯ter ear짯nings per share (EPS) of $1.13, excee짯ding Octo짯ber gui짯dance by 35 cents. Fourth-quar짯ter non-GAAP EPS was $1.09, excee짯ding Octo짯ber gui짯dance by 19 cents.

뼧       In 2021, Intel gene짯ra짯ted $30.0 bil짯li짯on of cash from ope짯ra짯ti짯ons and $11.3 bil짯li짯on of free cash flow (FCF).

뼧       Fore짯cas짯ting first-quar짯ter 2022 reve짯nue of appro짯xi짯m짯ate짯ly $18.3 bil짯li짯on; expec짯ting first-quar짯ter EPS of $0.70 (non-GAAP EPS of $0.80).

뼧       Announ짯ces five per짯cent increase to quar짯ter짯ly cash dividend.

SANTA CLARA, Calif., Janu짯ary 26, 2022 Intel Cor짯po짯ra짯ti짯on today repor짯ted fourth-quar짯ter and full-year 2021 finan짯cial results. The com짯pa짯ny also announ짯ced that its board of direc짯tors appro짯ved a cash divi짯dend increase of five per짯cent to $1.46 per share on an annu짯al basis. The board declared a quar짯ter짯ly divi짯dend of $0.365 per share on the company셲 com짯mon stock, which will be paya짯ble on March 1 to share짯hol짯ders of record as of Febru짯ary 7.

Q4 repre짯sen짯ted a gre짯at finish to a gre짯at year. We excee짯ded top-line quar짯ter짯ly gui짯dance by over $1 bil짯li짯on and deli짯ver짯ed the best quar짯ter짯ly and full-year reve짯nue in the company셲 histo짯ry, said Pat Gel짯sin짯ger, Intel CEO. 쏰ur disci짯pli짯ned focus on exe짯cu짯ti짯on across tech짯no짯lo짯gy deve짯lo짯p짯ment, manu짯fac짯tu짯ring, and our tra짯di짯tio짯nal and emer짯ging busi짯nesses is reflec짯ted in our results. We remain com짯mit짯ted to dri짯ving long-term, sus짯tainable growth as we relent짯less짯ly exe짯cu짯te our IDM 2.0 strategy.

Q4 2021 Finan짯cial Highlights

  GAAP   Non-GAAP
  Q4 2021 Q4 2020 vs. Q4 2020   Q4 2021 Q4 2020 vs. Q4 2020
Reve짯nue ($B) $20.5 $20.0 up 3%   $19.5 $18.9 up 4%
Gross mar짯gin 53.6% 56.8% down 3.2 ppt   55.4% 60.0% down 4.6 ppt
R&D and MG&A ($B) $6.0 $5.4 up 11%   $5.8 $5.2 up 11%
Ope짯ra짯ting margin 24.3% 29.5% down 5.1 ppt   25.9% 32.4% down 6.6 ppt
Tax rate 11.0% 21.8% down 10.8 ppt   11.7% 21.7% down 10 ppt
Net inco짯me ($B) $4.6 $5.9 down 21%   $4.5 $6.1 down 27%
Ear짯nings per share $1.13 $1.42 down 21%   $1.09 $1.48 down 26%

In the fourth quar짯ter, the com짯pa짯ny gene짯ra짯ted $5.8 bil짯li짯on in cash from ope짯ra짯ti짯ons and paid divi짯dends of $1.4 billion.

Full-Year 2021 Finan짯cial Highlights

  GAAP   Non-GAAP
  2021 2020 vs. 2020   2021 2020 vs. 2020
Reve짯nue ($B) $79.0 $77.9 up 1%   $74.7 $72.9 up 2%
Gross mar짯gin 55.4% 56.0% down 0.5 ppt   57.7% 59.4% down 1.7 ppt
R&D and MG&A ($B) $21.7 $19.7 up 10%   $20.9 $18.9 up 10%
Ope짯ra짯ting margin 24.6% 30.4% down 5.8 ppt   29.7% 33.4% down 3.7 ppt
Tax rate 8.5% 16.7% down 8.2 ppt   9.1% 16.6% down 7.5 ppt
Net inco짯me ($B) $19.9 $20.9 down 5%   $22.4 $21.6 up 4%
Ear짯nings per share $4.86 $4.94 down 2%   $5.47 $5.10 up 7%

For the full year, the com짯pa짯ny gene짯ra짯ted $30.0 bil짯li짯on of cash from ope짯ra짯ti짯ons, paid divi짯dends of $5.6 bil짯li짯on, and used $2.4 bil짯li짯on to repurcha짯se 39.5 mil짯li짯on shares of stock.

 

Busi짯ness Unit Summary

Key Busi짯ness Unit Reve짯nue and Trends   Q4 2021   vs. Q4 2020   2021   vs. 2020
CCG   $10.1 bil짯li짯on   down 7%   $40.5 bil짯li짯on   up 1%
DCG   $7.3 bil짯li짯on   up 20%   $25.8 bil짯li짯on   down 1%
Inter짯net of Things                    
IOTG   $1.1 bil짯li짯on   up 36%   $4.0 bil짯li짯on   up 33%
Mobi짯leye   $356 mil짯li짯on   up 7%   $1.4 bil짯li짯on   up 43%
NSG   $1.0 bil짯li짯on   down 18%   $4.3 bil짯li짯on   down 20%
PSG   $484 mil짯li짯on   up 15%   $1.9 bil짯li짯on   up 4%

Fourth-quar짯ter reve짯nue was led by an all-time record quar짯ter for our Data Cen짯ter Group (DCG), with strong ser짯ver reco짯very in enter짯pri짯se and govern짯ment. The Inter짯net of Things Group (IoTG) had a record quar짯ter, reflec짯ting strong demand on reco짯very from COVID-19 impacts. The Cli짯ent Com짯pu짯ting Group (CCG) deli짯ver짯ed ano짯ther $10 bil짯li짯on quar짯ter, pro짯ving that PCs are more essen짯ti짯al than ever.

Busi짯ness Highlights

뼧       Appoin짯ted David Zins짯ner as Exe짯cu짯ti짯ve Vice Pre짯si짯dent and Chief Finan짯cial Offi짯cer, and announ짯ced that Exe짯cu짯ti짯ve Vice Pre짯si짯dent Michel짯le John짯s짯ton Holt짯haus will lead Intel셲 Cli짯ent Com짯pu짯ting Group.

뼧       Announ짯ced plans to take Mobi짯leye public in the United Sta짯tes in mid-2022 via an initi짯al public offe짯ring of new짯ly issued Mobi짯leye stock. 

뼧       Com짯ple짯ted the first clo짯sing of the sale of our NAND memo짯ry busi짯ness to SK hynix, Inc.

뼧       Announ짯ced initi짯al invest짯ment of more than $20 bil짯li짯on to build two new lea짯ding-edge chip fac짯to짯ries in Ohio, whe짯re we are estab짯li짯shing the first advan짯ced semi짯con짯duc짯tor cam짯pus in the 쏶ili짯con Heart짯land of the Mid짯west. This will be Intel셲 first new manu짯fac짯tu짯ring site loca짯ti짯on in 40 years.

뼧       Laun짯ched the 12th Gen Intel짰 Core꽓 pro짯ces짯sor fami짯ly, inclu짯ding the all-new 12th Gen Intel Core H몊eries mobi짯le pro짯ces짯sors led by the Intel Core i9-12900HK, the fas짯test mobi짯le pro짯ces짯sor ever crea짯ted.1 The 12th Gen Intel Core fami짯ly will include 60 pro짯ces짯sors and more than 500 designs.

뼧       Announ짯ced that Haba짯na Labs Gau짯di AI Acce짯le짯ra짯tors power Ama짯zon EC2 DL1 Instances.

뼧       Unvei짯led key pack짯a짯ging, tran짯sis짯tor and quan짯tum phy짯sics breakth짯roughs fun짯da짯men짯tal to advan짯cing and acce짯le짯ra짯ting com짯pu짯ting well into the next deca짯de and out짯lined its path toward more than 10x inter짯con짯nect den짯si짯ty impro짯ve짯ment in pack짯a짯ging with hybrid bon짯ding and 30% to 50% area impro짯ve짯ment in tran짯sis짯tor scaling.

뼧       Began ship짯ping Intel짰 Arc꽓 dis짯crete gra짯phics pro짯ducts (code-named 쏛lche짯mist) to OEM/ODM cus짯to짯mers, with more than 50 design wins.

뼧       Released the oneA짯PI 2022 tool짯kits to expand fea짯tures to pro짯vi짯de deve짯lo짯pers grea짯ter uti짯li짯ty and archi짯tec짯tu짯ral choice to acce짯le짯ra짯te computing.

뼧       Intro짯du짯ced Mobi짯leye updates, inclu짯ding the new EyeQ Ultra pur짯po짯se-built SoC for auto짯no짯mous vehic짯les, plans to deli짯ver what is expec짯ted to be the world셲 first level 4 auto짯no짯mous vehic짯le for con짯su짯mers with Geely셲 Zeekr brand in 2024, and col짯la짯bo짯ra짯ti짯on with Volks짯wa짯gen Group and Ford to app짯ly Mobileye셲 map짯ping tech짯no짯lo짯gy in dri짯ver assis짯tance systems.

뼧       Ran짯ked #2 on JUST Capital셲 2022 쏪ust 100 list, which reflects the per짯for짯mance of America셲 lar짯gest publicly traded com짯pa짯nies on the issues that mat짯ter most in defi짯ning just busi짯ness beha짯vi짯or today.

Addi짯tio짯nal infor짯ma짯ti짯on regar짯ding Intel셲 results can be found in the Q421 Ear짯nings Pre짯sen짯ta짯ti짯on available at:

www.intc.com.

 

 

 

Busi짯ness Outlook

Intel셲 gui짯dance for the first quar짯ter includes both GAAP and non-GAAP esti짯ma짯tes. Recon짯ci짯lia짯ti짯ons bet짯ween GAAP and non-GAAP finan짯cial mea짯su짯res are included below. Our first-quar짯ter busi짯ness out짯look includes an addi짯tio짯nal week in the first quar짯ter due to 2022 being a 53-week year.

Q1 2022   GAAP   Non-GAAP
    Appro짯xi짯m짯ate짯ly   Appro짯xi짯m짯ate짯ly
Reve짯nue   $18.3 bil짯li짯on   $18.3 bil짯li짯on^
Gross Mar짯gin   49%   52%
Tax rate   25%   15%
Ear짯nings per share   $0.70   $0.80

 

 

Actu짯al results may dif짯fer mate짯ri짯al짯ly from Intel셲 Busi짯ness Out짯look as a result of, among other things, the fac짯tors descri짯bed under 쏤or짯ward-Loo짯king State짯ments below.

Ear짯nings Webcast

Intel will hold a public web짯cast at 2 p.m. PST today to dis짯cuss the results for its fourth quar짯ter of 2021. The live public web짯cast can be acces짯sed on Intel셲 Inves짯tor Rela짯ti짯ons web짯site at www.intc.com. The Q421 Ear짯nings Pre짯sen짯ta짯ti짯on, web짯cast replay, and audio down짯load will also be available on the site. 

Intel plans to report its ear짯nings for the first quar짯ter of 2022 on April 28, 2022 prompt짯ly after clo짯se of mar짯ket; rela짯ted mate짯ri짯als will be available at www.intc.com. A public web짯cast of Intel셲 ear짯nings con짯fe짯rence call will fol짯low at 2 p.m. PDT at www.intc.com.

Inves짯tor Meeting 

Intel셲 Inves짯tor Mee짯ting will take place on Febru짯ary 17, 2022, whe짯re the com짯pa짯ny will pro짯vi짯de addi짯tio짯nal infor짯ma짯ti짯on regar짯ding its full-year and long-term out짯look and plans. More infor짯ma짯ti짯on about Intel셲 Inves짯tor Mee짯ting can be found at www.intc.com.

 

For짯ward-Loo짯king Statements

Intel셲 Busi짯ness Out짯look and other state짯ments in this release that refer to future plans and expec짯ta짯ti짯ons are for짯ward-loo짯king state짯ments that invol짯ve a num짯ber of risks and uncer짯tain짯ties. Words such as 쏿nti짯ci짯pa짯tes, 쐃xpects, 쐇ntends, 쐅oals, 쐏lans, 쐅ui짯dance, 쐀elie짯ves, 쐓eeks, 쐃sti짯ma짯tes, 쐁on짯ti짯nues, 쐁om짯mit짯ted, 쐌ay, 쐗ill, 쐗ould, 쐓hould, 쐁ould, 쏿cce짯le짯ra짯te, 쐂eli짯ver, 쐏ath, 쐏ro짯gress, 쐄ore짯cast, 쐄uture, and 쐏osi짯tio짯ned, and varia짯ti짯ons of such words and simi짯lar expres짯si짯ons are inten짯ded to iden짯ti짯fy such for짯ward-loo짯king state짯ments. State짯ments that refer to or are based on esti짯ma짯tes, fore짯casts, pro짯jec짯tions, uncer짯tain events or assump짯ti짯ons, inclu짯ding state짯ments rela짯ting to Intel셲 stra짯tegy; manu짯fac짯tu짯ring expan짯si짯on and invest짯ment plans, inclu짯ding Intel셲 plan짯ned Ohio invest짯ments; sup짯p짯ly expec짯ta짯ti짯ons, inclu짯ding regar짯ding indus짯try shorta짯ges; pen짯ding tran짯sac짯tions; the pro짯po짯sed Mobi짯leye initi짯al public offe짯ring (IPO); total addressa짯ble mar짯ket (TAM) and mar짯ket oppor짯tu짯ni짯ty; busi짯ness plans and finan짯cial expec짯ta짯ti짯ons; future macroe짯co짯no짯mic con짯di짯ti짯ons; future legis짯la짯ti짯on; future impacts of the COVID-19 pan짯de짯mic; future pro짯ducts, tech짯no짯lo짯gy, and ser짯vices, and the expec짯ted avai짯la짯bi짯li짯ty and bene짯fits of such pro짯ducts, tech짯no짯lo짯gy, and ser짯vices; expec짯ta짯ti짯ons regar짯ding cus짯to짯mers; pro짯jec짯tions regar짯ding com짯pe짯ti짯tors; and anti짯ci짯pa짯ted trends in our busi짯nesses or the mar짯kets rele짯vant to them, inclu짯ding with respect to future demand and indus짯try growth, also iden짯ti짯fy for짯ward-loo짯king state짯ments. All for짯ward-loo짯king state짯ments included in this release are based on management셲 expec짯ta짯ti짯ons as of the date of this release and, except as requi짯red by law, Intel dis짯claims any obli짯ga짯ti짯on to update the짯se for짯ward-loo짯king state짯ments to reflect future events or cir짯cum짯s짯tances. For짯ward-loo짯king state짯ments invol짯ve many risks and uncer짯tain짯ties that could cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly from tho짯se expres짯sed or impli짯ed in such state짯ments. Intel pre짯sent짯ly con짯siders the fol짯lo짯wing to be among the important fac짯tors that can cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly from the company셲 expectations.

뼧       Demand for Intel셲 pro짯ducts is high짯ly varia짯ble and can dif짯fer from expec짯ta짯ti짯ons due to fac짯tors inclu짯ding chan짯ges in busi짯ness and eco짯no짯mic con짯di짯ti짯ons; cus짯to짯mer con짯fi짯dence or inco짯me levels, and the levels of cus짯to짯mer capi짯tal spen짯ding; the intro짯duc짯tion, avai짯la짯bi짯li짯ty, and mar짯ket accep짯tance of Intel셲 pro짯ducts, pro짯ducts used tog짯e짯ther with Intel pro짯ducts, and com짯pe짯ti짯tors pro짯ducts; com짯pe짯ti짯ti짯ve and pri짯cing pres짯su짯res, inclu짯ding actions taken by com짯pe짯ti짯tors; sup짯p짯ly cons짯traints and other dis짯rup짯ti짯ons affec짯ting cus짯to짯mers; chan짯ges in cus짯to짯mer order pat짯terns and order can짯cel짯la짯ti짯ons; chan짯ges in cus짯to짯mer needs and emer짯ging tech짯no짯lo짯gy trends; and chan짯ges in the level of inven짯to짯ry and com짯pu짯ting capa짯ci짯ty at customers.

뼧       Intel셲 results can vary signi짯fi짯cant짯ly from expec짯ta짯ti짯ons based on capa짯ci짯ty uti짯liza짯ti짯on; varia짯ti짯ons in inven짯to짯ry valua짯ti짯on, inclu짯ding varia짯ti짯ons rela짯ted to the timing of qua짯li짯fy짯ing pro짯ducts for sale; chan짯ges in reve짯nue levels; seg짯ment pro짯duct mix; the timing and exe짯cu짯ti짯on of the manu짯fac짯tu짯ring ramp and asso짯cia짯ted cos짯ts; excess or obso짯le짯te inven짯to짯ry; chan짯ges in unit cos짯ts; defects or dis짯rup짯ti짯ons in the sup짯p짯ly of mate짯ri짯als or resour짯ces, inclu짯ding as a result of ongo짯ing indus짯try shorta짯ges of com짯pon짯ents and sub짯stra짯tes; pro짯duct manu짯fac짯tu짯ring quality/yields; and chan짯ges in capi짯tal requi짯re짯ments and invest짯ment plans. Varia짯ti짯ons in results can also be cau짯sed by the timing of Intel pro짯duct intro짯duc짯tions and rela짯ted expen짯ses, inclu짯ding mar짯ke짯ting pro짯grams, and Intel셲 abili짯ty to respond quick짯ly to tech짯no짯lo짯gi짯cal deve짯lo짯p짯ments and to intro짯du짯ce new pro짯ducts or incor짯po짯ra짯te new fea짯tures into exis짯ting pro짯ducts, as well as decis짯i짯ons to exit pro짯duct lines or busi짯nesses, which can result in res짯truc짯tu짯ring and asset impair짯ment charges.

뼧       Intel셲 results can be affec짯ted by adver짯se eco짯no짯mic, social, poli짯ti짯cal, regu짯la짯to짯ry, and physical/infrastructure con짯di짯ti짯ons in count짯ries whe짯re Intel, its cus짯to짯mers or its sup짯pli짯ers ope짯ra짯te, inclu짯ding reces짯si짯on or slo짯wing growth, mili짯ta짯ry con짯flict and other secu짯ri짯ty risks, natu짯ral dis짯as짯ters, infra짯struc짯tu짯re dis짯rup짯ti짯ons, health con짯cerns (inclu짯ding the COVID-19 pan짯de짯mic), infla짯ti짯on, fluc짯tua짯tions in cur짯ren짯cy exch짯an짯ge rates, sanc짯tions and tariffs, poli짯ti짯cal dis짯pu짯tes, chan짯ges in govern짯ment grants and incen짯ti짯ves, and con짯ti짯nuing uncer짯tain짯ty regar짯ding social, poli짯ti짯cal, immi짯gra짯ti짯on, and tax and trade poli짯ci짯es in the U.S. and abroad. Results can also be affec짯ted by the for짯mal or infor짯mal impo짯si짯ti짯on by count짯ries of new or revi짯sed export and/or import and doing-busi짯ness regu짯la짯ti짯ons, inclu짯ding chan짯ges or uncer짯tain짯ty rela짯ted to the U.S. govern짯ment enti짯ty list and chan짯ges in the abili짯ty to obtain export licen짯ses, which can be chan짯ged wit짯hout pri짯or notice.

뼧       The COVID-19 pan짯de짯mic has pre짯vious짯ly adver짯se짯ly affec짯ted signi짯fi짯cant por짯ti짯ons of Intel셲 busi짯ness and could have a mate짯ri짯al adver짯se effect on Intel셲 finan짯cial con짯di짯ti짯on and results of ope짯ra짯ti짯ons. The pan짯de짯mic has resul짯ted in aut짯ho짯ri짯ties impo짯sing num짯e짯rous mea짯su짯res to try to con짯tain the virus, inclu짯ding vac짯ci짯ne requi짯re짯ments. The짯se mea짯su짯res have impac짯ted and may fur짯ther impact our work짯force and ope짯ra짯ti짯ons, the ope짯ra짯ti짯ons of our cus짯to짯mers, and tho짯se of our respec짯ti짯ve sup짯pli짯ers and part짯ners. Rest짯ric짯tions on our manu짯fac짯tu짯ring or sup짯port ope짯ra짯ti짯ons or work짯force, simi짯lar limi짯ta짯ti짯ons for our sup짯pli짯ers, and trans짯por짯ta짯ti짯on rest짯ric짯tions or dis짯rup짯ti짯ons can impact our abili짯ty to meet cus짯to짯mer demand and could have a mate짯ri짯al adver짯se effect on us. Dis짯rup짯ti짯ons in our cus짯to짯mers ope짯ra짯ti짯ons and sup짯p짯ly chains, may adver짯se짯ly affect our results of ope짯ra짯ti짯ons. The pan짯de짯mic has cau짯sed us to modi짯fy our busi짯ness prac짯ti짯ces. The짯re is no cer짯tain짯ty that such mea짯su짯res will be suf짯fi짯ci짯ent to miti짯ga짯te the risks posed by the virus, and ill짯ness and work짯force dis짯rup짯ti짯ons could lead to unavai짯la짯bi짯li짯ty of our key per짯son짯nel and harm our abili짯ty to per짯form cri짯ti짯cal func짯tions. The pan짯de짯mic has signi짯fi짯cant짯ly increased eco짯no짯mic and demand uncer짯tain짯ty. Demand for our pro짯ducts could be mate짯ri짯al짯ly har짯med in the future. The pan짯de짯mic could lead to increased dis짯rup짯ti짯on and vola짯ti짯li짯ty in capi짯tal mar짯kets and cre짯dit mar짯kets, which could adver짯se짯ly affect our liqui짯di짯ty and capi짯tal resour짯ces. The degree to which COVID-19 impacts our results will depend on future deve짯lo짯p짯ments, which are high짯ly uncer짯tain. The impact of the pan짯de짯mic can also exa짯cer짯ba짯te other risks dis짯cus짯sed in this section.

뼧       Intel ope짯ra짯tes in high짯ly com짯pe짯ti짯ti짯ve indus짯tries and its ope짯ra짯ti짯ons have high cos짯ts that are eit짯her fixed or dif짯fi짯cult to redu짯ce in the short term. In addi짯ti짯on, we have ente짯red new are짯as and intro짯du짯ced adja짯cent pro짯ducts, such as our inten짯ti짯on to beco짯me a major pro짯vi짯der of foundry ser짯vices, and we face new sources of com짯pe짯ti짯ti짯on and uncer짯tain mar짯ket demand or accep짯tance of our offe짯rings with respect to the짯se new are짯as and pro짯ducts, and they do not always grow as projected.

뼧       Intel셲 expec짯ted tax rate is based on cur짯rent tax law, inclu짯ding cur짯rent inter짯pre짯ta짯ti짯ons of the Tax Cuts and Jobs Act of 2017 (TCJA), and cur짯rent expec짯ted inco짯me and can be affec짯ted by chan짯ges in inter짯pre짯ta짯ti짯ons of TCJA and other laws; chan짯ges in the volu짯me and mix of pro짯fits ear짯ned and loca짯ti짯on of assets across juris짯dic짯tions with vary짯ing tax rates; chan짯ges in the esti짯ma짯tes of cre짯dits, bene짯fits, and deduc짯tions; the reso짯lu짯ti짯on of issues ari짯sing from tax audits with various tax aut짯ho짯ri짯ties, inclu짯ding pay짯ment of inte짯rest and pen짯al짯ties; and the abili짯ty to rea짯li짯ze defer짯red tax assets.

뼧       Intel셲 results can be affec짯ted by gains or los짯ses from equi짯ty secu짯ri짯ties and inte짯rest and other, which can vary depen짯ding on gains or los짯ses on the chan짯ge in fair value, sale, exch짯an짯ge, or impairm짯ents of equi짯ty and debt invest짯ments, inte짯rest rates, cash balan짯ces, and chan짯ges in fair value of deri짯va짯ti짯ve instruments. 

뼧       Pro짯duct defects or erra짯ta (devia짯ti짯ons from published spe짯ci짯fi짯ca짯ti짯ons) can adver짯se짯ly impact our expen짯ses, reve짯nues, and reputation.

뼧       We or third par짯ties regu짯lar짯ly iden짯ti짯fy secu짯ri짯ty vul짯nerabi짯li짯ties with respect to our pro짯ces짯sors and other pro짯ducts as well as the ope짯ra짯ting sys짯tems and workloads run짯ning on them. Secu짯ri짯ty vul짯nerabi짯li짯ties and any limi짯ta짯ti짯ons of, or adver짯se effects resul짯ting from, miti짯ga짯ti짯on tech짯ni짯ques can adver짯se짯ly affect our results of ope짯ra짯ti짯ons, finan짯cial con짯di짯ti짯on, cus짯to짯mer rela짯ti짯onships, pro짯s짯pects, and repu짯ta짯ti짯on in a num짯ber of ways, any of which may be mate짯ri짯al, inclu짯ding incur짯ring signi짯fi짯cant cos짯ts rela짯ted to deve짯lo짯ping and deploy짯ing updates and miti짯ga짯ti짯ons, wri짯ting down inven짯to짯ry value, a reduc짯tion in the com짯pe짯ti짯ti짯ve짯ness of our pro짯ducts, defen짯ding against pro짯duct claims and liti짯ga짯ti짯on, respon짯ding to regu짯la짯to짯ry inqui짯ries or actions, pay짯ing dama짯ges, addres짯sing cus짯to짯mer satis짯fac짯tion con짯side짯ra짯ti짯ons, or taking other reme짯di짯al steps with respect to third par짯ties. Adver짯se publi짯ci짯ty about secu짯ri짯ty vul짯nerabi짯li짯ties or miti짯ga짯ti짯ons could dama짯ge our repu짯ta짯ti짯on with cus짯to짯mers or users and redu짯ce demand for our pro짯ducts and services.

뼧       Cyber짯se짯cu짯ri짯ty inci짯dents, whe짯ther or not suc짯cessful, can affect Intel셲 results by caus짯ing us to incur signi짯fi짯cant cos짯ts or dis짯rupt짯ing our ope짯ra짯ti짯ons or tho짯se of our cus짯to짯mers and sup짯pli짯ers, and can result in repu짯ta짯tio짯nal harm.

뼧       Intel셲 results can be affec짯ted by liti짯ga짯ti짯on or regu짯la짯to짯ry mat짯ters invol짯ving intellec짯tu짯al pro짯per짯ty, stock짯hol짯der, con짯su짯mer, anti짯trust, com짯mer짯cial, dis짯clo짯sure, and other issues, as well as by the impact and timing of sett짯le짯ments and dis짯pu짯te reso짯lu짯ti짯ons. For exam짯p짯le, in the first quar짯ter of 2021, Intel accrued a $2.2 bil짯li짯on char짯ge rela짯ted to liti짯ga짯ti짯on invol짯ving VLSI Tech짯no짯lo짯gy LLC (VLSI). An unfa짯vorable ruling can include mone짯ta짯ry dama짯ges or an injunc짯tion pro짯hi짯bi짯ting us from manu짯fac짯tu짯ring or sel짯ling one or more pro짯ducts, pre짯clu짯ding par짯ti짯cu짯lar busi짯ness prac짯ti짯ces, impac짯ting our abili짯ty to design pro짯ducts, or requi짯ring other reme짯dies such as com짯pul짯so짯ry licen짯sing of intellec짯tu짯al property.

뼧       Intel셲 results can be affec짯ted by the impact and timing of clo짯sing of acqui짯si짯ti짯ons, dives짯ti짯tures, and other signi짯fi짯cant tran짯sac짯tions. In addi짯ti짯on, the짯se tran짯sac짯tions do not always achie짯ve our finan짯cial or stra짯te짯gic objec짯ti짯ves and can dis짯rupt our ongo짯ing busi짯ness and adver짯se짯ly impact our results of ope짯ra짯ti짯ons. The pro짯po짯sed Mobi짯leye IPO may not be com짯ple짯ted in our expec짯ted time짯frame, or at all, due to fac짯tors that include adver짯se chan짯ges in eco짯no짯mic or mar짯ket con짯di짯ti짯ons or in our busi짯ness; delays in regu짯la짯to짯ry, stock exch짯an짯ge, or other appr짯ovals; loss of Mobi짯leye key employees, and chan짯ges in our busi짯ness strategy.

뼧       The amount, timing, and exe짯cu짯ti짯on of Intel셲 stock repurcha짯se pro짯gram fluc짯tua짯te based on Intel셲 prio짯ri짯ties for the use of cash for other purposes봲uch as inves짯t짯ing in our busi짯ness, inclu짯ding ope짯ra짯tio짯nal and capi짯tal spen짯ding, acqui짯si짯ti짯ons, and retur짯ning cash to our stock짯hol짯ders as divi짯dend payments.

Detail짯ed infor짯ma짯ti짯on regar짯ding the짯se and other fac짯tors that could affect Intel셲 busi짯ness and results is included in Intel셲 SEC filings, inclu짯ding the company셲 most recent reports on Forms 10멚 and 10멡, par짯ti짯cu짯lar짯ly the 쏳isk Fac짯tors sec짯tions of tho짯se reports. Copies of the짯se filings may be obtai짯ned by visi짯ting our Inves짯tor Rela짯ti짯ons web짯site at www.intc.com or the SEC셲 web짯site at www.sec.gov.

 

About Intel

Intel (Nasdaq: INTC) is an indus짯try lea짯der, crea짯ting world-chan짯ging tech짯no짯lo짯gy that enables glo짯bal pro짯gress and enri짯ches lives. Inspi짯red by Moore셲 Law, we con짯ti짯nuous짯ly work to advan짯ce the design and manu짯fac짯tu짯ring of semi짯con짯duc짯tors to help address our cus짯to짯mers grea짯test chal짯lenges. By embed짯ding intel짯li짯gence in the cloud, net짯work, edge and every kind of com짯pu짯ting device, we unleash the poten짯ti짯al of data to trans짯form busi짯ness and socie짯ty for the bet짯ter. To learn more about Intel셲 inno짯va짯tions, go to newsroom.intel.com and intel.com.

짤 Intel Cor짯po짯ra짯ti짯on. Intel, the Intel logo, and other Intel marks are trade짯marks of Intel Cor짯po짯ra짯ti짯on or its sub짯si짯dia짯ries. Other names and brands may be clai짯med as the pro짯per짯ty of others.

Cont짯acts: Tim Blan짯ken짯ship Pen짯ny Bruce
  Inves짯tor Relations Media Rela짯ti짯ons
  480554-9007 408893-0601
  timothy.blankenship@intel.com penelope.bruce@intel.com

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed State짯ments of Inco짯me and Other Information

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons, Except Per Share Amounts; unaudited)   Dec 25, 2021   Dec 26, 2020   Dec 25, 2021   Dec 26, 2020
Net reve짯nue   $        20,528   $        19,978   $        79,024   $        77,867
Cost of sales              9,519              8,630            35,209            34,255
Gross mar짯gin            11,009            11,348            43,815            43,612
Rese짯arch and development              4,049              3,655            15,190            13,556
Mar짯ke짯ting, gene짯ral and administrative              1,942              1,757              6,543              6,180
Res짯truc짯tu짯ring and other charges                  29                  52              2,626                 198
Ope짯ra짯ting expenses              6,020              5,464            24,359            19,934
Ope짯ra짯ting income              4,989              5,884            19,456            23,678
Gains (los짯ses) on equi짯ty invest짯ments, net                 359              1,692              2,729              1,904
Inte짯rest and other, net                (154)                 (88)                (482)                (504)
Inco짯me befo짯re taxes              5,194              7,488            21,703            25,078
Pro짯vi짯si짯on for taxes                 571              1,631              1,835              4,179
Net inco짯me   $         4,623   $         5,857   $        19,868   $        20,899
                 
Ear짯nings per share봟asic   $           1.14   $           1.43   $           4.89   $           4.98
Ear짯nings per share봡iluted   $           1.13   $           1.42   $           4.86   $           4.94
                 
Weigh짯ted avera짯ge shares of com짯mon stock outstanding:                
Basic              4,069              4,094              4,059              4,199
Diluted              4,095              4,119              4,090              4,232

 

    Three Months Ended
(In Mil짯li짯ons)   Dec 25, 2021   Dec 26, 2020
Ear짯nings per share of com짯mon stock information:         
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봟asic              4,069              4,094
Dilu짯ti짯ve effect of employee equi짯ty incen짯ti짯ve plans                  26                  25
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봡iluted              4,095              4,119
         
Stock buy짯back:        
Shares repurcha짯sed                                   38
Cumu짯la짯ti짯ve shares repurcha짯sed (in billions)                 5.8                 5.7
Remai짯ning dol짯lars aut짯ho짯ri짯zed for buy짯back (in billions)   $             7.2   $             9.7
         
Other infor짯ma짯ti짯on:        
Employees (in thousands)              121.1              110.6

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed Balan짯ce Sheets

(In Mil짯li짯ons)   Dec 25, 2021   Dec 26, 2020
Assets   (unau짯di짯ted)    
Cur짯rent assets:        
Cash and cash equivalents   $          4,827   $          5,865
Short-term invest짯ments               2,103               2,292
Tra짯ding assets             21,483             15,738
Accounts receiva짯ble, net of allo짯wan짯ce for doubtful accounts               9,457               6,782
Invent짯ories        
Raw mate짯ri짯als               1,441                  908
Work in process               6,656               5,693
Finis짯hed goods               2,679               1,826
              10,776               8,427
Assets held for sale               6,942               5,400
Other cur짯rent assets               2,130               2,745
Total cur짯rent assets             57,718             47,249
         
Pro짯per짯ty, plant and equip짯ment, net             63,245             56,584
Equi짯ty investments               6,298               5,152
Other long-term investments                  840                2,192
Good짯will             26,963             26,971
Iden짯ti짯fied intan짯gi짯ble assets, net               7,270               9,026
Other long-term assets               6,072               5,917
Total assets   $       168,406   $       153,091
         
Lia짯bi짯li짯ties        
Cur짯rent liabilities        
Short-term debt   $          4,591   $          2,504
Accounts paya짯ble               5,747               5,581
Accrued com짯pen짯sa짯ti짯on and benefits               4,535               3,999
Other accrued liabilities             12,589             12,670
Total cur짯rent liabilities             27,462             24,754
Debt             33,510             33,897
Con짯tract liabilities                   185                1,367
Inco짯me taxes payable               4,305               4,578
Defer짯red inco짯me taxes               2,667               3,843
Other long-term liabilities               4,886               3,614
Stock짯hol짯ders equity        
Com짯mon stock, $0.001 par value, 10,000 shares aut짯ho짯ri짯zed; 4,070 shares issued and out짯stan짯ding (4,062 issued and out짯stan짯ding in 2020) and capi짯tal in excess of par value             28,006             25,556
Accu짯mu짯la짯ted other com짯pre짯hen짯si짯ve inco짯me (loss)                 (880)                 (751)
Retai짯ned earnings             68,265             56,233
Total stock짯hol짯ders equity             95,391             81,038
Total lia짯bi짯li짯ties and stock짯hol짯ders equity   $       168,406   $       153,091

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed State짯ments of Cash Flows

    Twel짯ve Months Ended
(In Mil짯li짯ons; unaudited)   Dec 25, 2021   Dec 26, 2020
         
Cash and cash equi짯va짯lents, begin짯ning of period   $          5,865   $          4,194
Cash flows pro짯vi짯ded by (used for) ope짯ra짯ting activities:        
Net inco짯me             19,868             20,899
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash pro짯vi짯ded by ope짯ra짯ting activities:        
Depre짯cia짯ti짯on               9,953             10,482
Share-based com짯pen짯sa짯ti짯on               2,036               1,854
Res짯truc짯tu짯ring and other charges               2,626                  198
Amor짯tiza짯ti짯on of intangibles               1,839               1,757
(Gains) los짯ses on equi짯ty invest짯ments, net              (1,458)              (1,757)
Chan짯ges in assets and liabilities:        
Accounts receiva짯ble              (2,674)                  883
Invent짯ories              (2,339)                 (687)
Accounts paya짯ble               1,190                  405
Accrued com짯pen짯sa짯ti짯on and benefits                  515                  348
Pre짯paid sup짯p짯ly agreements              (1,583)                 (181)
Inco짯me taxes                 (441)               1,620
Other assets and liabilities                  459                 (437)
Total adjus짯t짯ments             10,123             14,485
Net cash pro짯vi짯ded by ope짯ra짯ting activities             29,991             35,384
Cash flows pro짯vi짯ded by (used for) inves짯t짯ing activities:        
Addi짯ti짯ons to pro짯per짯ty, plant and equipment            (18,733)            (14,259)
Addi짯ti짯ons to held for sale NAND pro짯per짯ty, plant and equipment              (1,596)                 (194)
Acqui짯si짯ti짯ons, net of cash acquired                 (209)                 (837)
Purcha짯ses of available-for-sale debt investments              (5,051)              (6,862)
Matu짯ri짯ties and sales of available-for-sale debt investments               6,467               6,781
Purcha짯ses of tra짯ding assets            (35,503)            (22,377)
Matu짯ri짯ties and sales of tra짯ding assets             28,832             15,377
Purcha짯ses of equi짯ty investments                 (613)                 (720)
Sales of equi짯ty investments                  581                  910
Other inves짯t짯ing                  658               1,385
Net cash used for inves짯t짯ing activities            (25,167)            (20,796)
Cash flows pro짯vi짯ded by (used for) finan짯cing activities:        
Issu짯an짯ce of long-term debt, net of issu짯an짯ce costs               4,974             10,247
Repay짯ment of debt and debt conversion              (2,500)              (4,525)
Pro짯ceeds from sales of com짯mon stock through employee equi짯ty incen짯ti짯ve plans               1,020                  897
Repurcha짯se of com짯mon stock              (2,415)            (14,229)
Pay짯ment of divi짯dends to stockholders              (5,644)              (5,568)
Other finan짯cing              (1,297)                  261
Net cash pro짯vi짯ded by (used for) finan짯cing activities              (5,862)            (12,917)
Net increase (decrease) in cash and cash equivalents              (1,038)               1,671
Cash and cash equi짯va짯lents, end of period   $          4,827   $          5,865

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Ope짯ra짯ting Seg짯ment Results

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons)   Dec 25, 2021   Dec 26, 2020   Dec 25, 2021   Dec 26, 2020
Net reve짯nue                
Cli짯ent Com짯pu짯ting Group                
Plat짯form   $         9,408   $         9,939   $        37,376   $        35,642
Adja짯cent                 725              1,000              3,135              4,415
             10,133            10,939            40,511            40,057
Data Cen짯ter Group                
Plat짯form              6,442              5,297   $        22,703   $        23,056
Adja짯cent                 864                 791              3,118              3,047
               7,306              6,088            25,821            26,103
Inter짯net of Things                
IOTG              1,058                 777              3,998              3,007
Mobi짯leye                 356                 333              1,386                 967
               1,414              1,110              5,384              3,974
Non-Vola짯ti짯le Memo짯ry Solu짯ti짯ons Group                 996               1,208              4,306              5,358
Pro짯gramma짯ble Solu짯ti짯ons Group                 484                  422               1,934              1,853
All other                 195                  211               1,068                 522 
Total net revenue   $        20,528   $        19,978   $        79,024   $        77,867
                 
Ope짯ra짯ting inco짯me (loss)                
Cli짯ent Com짯pu짯ting Group   $         3,475   $         4,508   $        14,672   $        15,129
Data Cen짯ter Group              1,726              2,077   $         6,997   $        10,571
Inter짯net of Things                
IOTG                 270                 123              1,045                 497
Mobi짯leye                  99                 110                 460                 241
                  369                  233               1,505                 738 
Non-Vola짯ti짯le Memo짯ry Solu짯ti짯ons Group                 354                   76               1,369                 361 
Pro짯gramma짯ble Solu짯ti짯ons Group                  51                   43                  297                  260 
All other                (986)             (1,053)             (5,384)             (3,381)
Total ope짯ra짯ting income   $         4,989   $         5,884   $        19,456   $        23,678

 

We deri짯ve a sub짯stan짯ti짯al majo짯ri짯ty of our reve짯nue from plat짯form pro짯ducts, which are our prin짯ci짯pal pro짯ducts and con짯side짯red as one pro짯duct class. We offer plat짯form pro짯ducts that incor짯po짯ra짯te various com짯pon짯ents and tech짯no짯lo짯gies, inclu짯ding a micro짯pro짯ces짯sor and chip짯set, a stand-alo짯ne SoC, or a mul짯ti짯chip packa짯ge based on Intel archi짯tec짯tu짯re. Plat짯form pro짯ducts are used in various form fac짯tors across our CCG, DCG, and IOTG ope짯ra짯ting seg짯ments. Our non-plat짯form, or adja짯cent pro짯ducts, can be com짯bi짯ned with plat짯form pro짯ducts to form com짯pre짯hen짯si짯ve plat짯form solu짯ti짯ons to meet cus짯to짯mer needs.

Reve짯nue for our repor짯ta짯ble and non-repor짯ta짯ble ope짯ra짯ting seg짯ments is pri짯ma짯ri짯ly rela짯ted to the fol짯lo짯wing pro짯duct lines:

뼧       CCG includes plat짯forms desi짯gned for end-user form fac짯tors, focu짯sing on hig짯her growth seg짯ments of 2멼n1, thin-and-light, com짯mer짯cial and gam짯ing, and gro짯wing adja짯cen짯ci짯es such as con짯nec짯ti짯vi짯ty and graphics.

뼧       DCG includes workload-opti짯mi짯zed plat짯forms and rela짯ted pro짯ducts desi짯gned for cloud ser짯vice pro짯vi짯ders, enter짯pri짯se and govern짯ment, and com짯mu짯ni짯ca짯ti짯ons ser짯vice pro짯vi짯ders mar짯ket seg짯ments. In 2021, the DCG ope짯ra짯ting seg짯ment includes the results of our Intel짰 Opta짯ne꽓 memo짯ry business.

뼧       IOTG includes high-per짯for짯mance com짯pu짯te solu짯ti짯ons for tar짯ge짯ted ver짯ti짯cals and embedded appli짯ca짯ti짯ons in mar짯ket seg짯ments such as retail, indus짯tri짯al, health짯ca짯re, and vision. 

뼧       Mobi짯leye includes com짯pre짯hen짯si짯ve solu짯ti짯ons requi짯red for auto짯no짯mous dri짯ving, inclu짯ding com짯pu짯te plat짯forms, com짯pu짯ter visi짯on, and machi짯ne lear짯ning-based sens짯ing, map짯ping and loca짯liza짯ti짯on, dri짯ving poli짯cy, and acti짯ve sen짯sors in deve짯lo짯p짯ment, uti짯li짯zed for both Robo짯ta짯xi and con짯su짯mer level autonomy.

뼧       NSG includes memo짯ry and sto짯rage pro짯ducts like Intel 3D NAND tech짯no짯lo짯gy, pri짯ma짯ri짯ly used in SSDs. In 2021, the NSG ope짯ra짯ting seg짯ment no lon짯ger includes the results of our Intel Opta짯ne memo짯ry business.

뼧       PSG includes pro짯gramma짯ble semi짯con짯duc짯tors, pri짯ma짯ri짯ly FPGAs and struc짯tu짯red ASICs, and rela짯ted pro짯ducts for com짯mu짯ni짯ca짯ti짯ons, cloud and enter짯pri짯se, and embedded mar짯ket segments.

We have sales and mar짯ke짯ting, manu짯fac짯tu짯ring, engi짯nee짯ring, finan짯ce, and admi짯nis짯tra짯ti짯on groups. Expen짯ses for the짯se groups are gene짯ral짯ly allo짯ca짯ted to the ope짯ra짯ting segments.

We have an 쏿ll other cate짯go짯ry that includes reve짯nue, expen짯ses, and char짯ges such as:

뼧       results of ope짯ra짯ti짯ons from non-repor짯ta짯ble seg짯ments not other짯wi짯se presented;

뼧       his짯to짯ri짯cal results of ope짯ra짯ti짯ons from dive짯s짯ted businesses;

뼧       results of ope짯ra짯ti짯ons of start-up busi짯nesses that sup짯port our initia짯ti짯ves, inclu짯ding our foundry business;

뼧       amounts included within res짯truc짯tu짯ring and other charges;

뼧       a por짯ti짯on of employee bene짯fits, com짯pen짯sa짯ti짯on, and other expen짯ses not allo짯ca짯ted to the ope짯ra짯ting seg짯ments; and

뼧       acqui짯si짯ti짯on-rela짯ted cos짯ts, inclu짯ding amor짯tiza짯ti짯on and any impair짯ment of acqui짯si짯ti짯on-rela짯ted intan짯gi짯bles and goodwill.

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Plat짯form Reve짯nue Information

    Q4 2021   Q4 2021   YTD 2021
    com짯pared to 

Q3 2021

  com짯pared to 

Q4 2020

  com짯pared to 

YTD 2020

Cli짯ent Com짯pu짯ting Group            
Desk짯top plat짯form volumes   15%   7%   8%
Desk짯top plat짯form avera짯ge sel짯ling prices   4%   11%   3%
Note짯book plat짯form volumes   4%   (26)%   8%
Note짯book plat짯form avera짯ge sel짯ling prices   (6)%   14%   (6)%
Adja짯cent revenue   2%   (28)%   (29)%
             
Data Cen짯ter Group            
Plat짯form volumes   8%   17%   2%
Plat짯form avera짯ge sel짯ling prices   3%   4%   (4)%
Adja짯cent revenue   15%   9%   2%

 

 

 

 

Intel Cor짯po짯ra짯ti짯on

Expl짯ana짯ti짯on of Non-GAAP Measures

In addi짯ti짯on to dis짯clo짯sing finan짯cial results in accordance with US GAAP, this docu짯ment con짯ta짯ins refe짯ren짯ces to the non-GAAP finan짯cial mea짯su짯res below. We belie짯ve the짯se non-GAAP finan짯cial mea짯su짯res pro짯vi짯de inves짯tors with useful sup짯ple짯men짯tal infor짯ma짯ti짯on about our ope짯ra짯ting per짯for짯mance, enable com짯pa짯ri짯son of finan짯cial trends and results bet짯ween peri짯ods whe짯re cer짯tain items may vary inde짯pen짯dent of busi짯ness per짯for짯mance, and allow for grea짯ter trans짯pa짯ren짯cy with respect to key metrics used by manage짯ment in ope짯ra짯ting our busi짯ness and mea짯su짯ring our per짯for짯mance. Cer짯tain of the짯se non-GAAP finan짯cial mea짯su짯res are used in our per짯for짯mance-based RSUs and our annu짯al cash bonus plan.

Our non-GAAP finan짯cial mea짯su짯res reflect adjus짯t짯ments based on one or more of the fol짯lo짯wing items, as well as the rela짯ted inco짯me tax effects whe짯re appli짯ca짯ble. Inco짯me tax effects have been cal짯cu짯la짯ted using an appro짯pria짯te tax rate for each adjus짯t짯ment. The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with US GAAP, and the finan짯cial results cal짯cu짯la짯ted in accordance with US GAAP and recon짯ci짯lia짯ti짯ons from the짯se results should be careful짯ly evaluated.

Non-GAAP adjus짯t짯ment or measure Defi짯ni짯ti짯on Useful짯ness to manage짯ment and investors
Acqui짯si짯ti짯on-rela짯ted adjustments Amor짯tiza짯ti짯on of acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets con짯sists of amor짯tiza짯ti짯on of intan짯gi짯ble assets such as deve짯lo짯ped tech짯no짯lo짯gy, brands, and cus짯to짯mer rela짯ti짯onships acqui짯red in con짯nec짯tion with busi짯ness com짯bi짯na짯ti짯ons. Char짯ges rela짯ted to the amor짯tiza짯ti짯on of the짯se intan짯gi짯bles are recor짯ded within both cost of sales and MG&A in our US GAAP finan짯cial state짯ments. Amor짯tiza짯ti짯on char짯ges are recor짯ded over the esti짯ma짯ted useful life of the rela짯ted acqui짯red intan짯gi짯ble asset, and thus are gene짯ral짯ly recor짯ded over mul짯ti짯ple years. We exclude amor짯tiza짯ti짯on char짯ges for our acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se the짯se char짯ges are incon짯sis짯tent in size and are signi짯fi짯cant짯ly impac짯ted by the timing and valua짯ti짯on of our acqui짯si짯ti짯ons. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯son to our past ope짯ra짯ting per짯for짯mance and pro짯vi짯de inves짯tors with addi짯tio짯nal means to eva짯lua짯te cost and expen짯se trends.
Res짯truc짯tu짯ring and other charges Res짯truc짯tu짯ring char짯ges are cos짯ts asso짯cia짯ted with a for짯mal res짯truc짯tu짯ring plan and are pri짯ma짯ri짯ly rela짯ted to employee sever짯ance and bene짯fit arran짯ge짯ments. Other char짯ges include a char짯ge rela짯ted to the VLSI liti짯ga짯ti짯on, good짯will and asset impairm짯ents, pen짯si짯on char짯ges, and cos짯ts asso짯cia짯ted with res짯truc짯tu짯ring activity. We exclude res짯truc짯tu짯ring and other char짯ges, inclu짯ding any adjus짯t짯ments to char짯ges recor짯ded in pri짯or peri짯ods, for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se the짯se cos짯ts do not reflect our core ope짯ra짯ting per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our core ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results and pro짯vi짯de inves짯tors with addi짯tio짯nal means to eva짯lua짯te expen짯se trends.
(Gains) los짯ses from divestiture Gains or los짯ses are reco짯gni짯zed in con짯nec짯tion with a divestiture. We exclude gains or los짯ses resul짯ting from dives짯ti짯tures for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se they do not reflect our cur짯rent ope짯ra짯ting per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results.
Ongo짯ing mark-to-mar짯ket on mar짯ke짯ta짯ble equi짯ty securities After the initi짯al mark-to-mar짯ket adjus짯t짯ment is recor짯ded upon a secu짯ri짯ty beco짯ming mar짯ke짯ta짯ble, gains and los짯ses are reco짯gni짯zed from ongo짯ing mark-to-mar짯ket adjus짯t짯ments of our mar짯ke짯ta짯ble equi짯ty securities. We exclude the짯se ongo짯ing gains and los짯ses for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se we do not belie짯ve this vola짯ti짯li짯ty cor짯re짯la짯tes to our core ope짯ra짯tio짯nal per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results.
NAND memo짯ry business Our NAND memo짯ry busi짯ness is sub짯ject to a pen짯ding sale to SK hynix, as announ짯ced in Octo짯ber 2020. While the second clo짯sing of the sale is still pen짯ding, we com짯ple짯ted the first clo짯sing on Decem짯ber 29, 2021, sub짯se짯quent to our fis짯cal 2021 year-end. We will ful짯ly decon짯so짯li짯da짯te our ongo짯ing inte짯rests in the NAND OpCo Busi짯ness in the first quar짯ter of 2022. We exclude the impact of our NAND memo짯ry busi짯ness in cer짯tain non-GAAP mea짯su짯res. While the second clo짯sing of the sale is still pen짯ding and sub짯ject to clo짯sing con짯di짯ti짯ons, manage짯ment does not curr짯ent짯ly view the busi짯ness as part of the company셲 core ope짯ra짯ti짯ons or its long-term stra짯te짯gic direc짯tion. We belie짯ve the짯se adjus짯t짯ments pro짯vi짯de inves짯tors with a useful view, through the eyes of manage짯ment, of the company셲 core busi짯ness model and how manage짯ment curr짯ent짯ly eva짯lua짯tes core ope짯ra짯tio짯nal per짯for짯mance. We belie짯ve they also pro짯vi짯de inves짯tors with an addi짯tio짯nal means to under짯stand the poten짯ti짯al impact of the dives짯ti짯tu짯re over time. In making the짯se adjus짯t짯ments, we have not made any chan짯ges to our methods for mea짯su짯ring and cal짯cu짯la짯ting reve짯nue or other finan짯cial state짯ment amounts.
Free cash flow We refe짯rence a non-GAAP finan짯cial mea짯su짯re of free cash flow, which is used by manage짯ment when asses짯sing our sources of liqui짯di짯ty, capi짯tal resour짯ces, and qua짯li짯ty of ear짯nings. Free cash flow is ope짯ra짯ting cash flow adjus짯ted to exclude addi짯ti짯ons to pro짯per짯ty, plant and equipment. This non-GAAP finan짯cial mea짯su짯re is hel짯pful in under짯stan짯ding our capi짯tal requi짯re짯ments and pro짯vi짯des an addi짯tio짯nal means to eva짯lua짯te the cash flow trends of our busi짯ness. We exclude addi짯ti짯ons to held for sale NAND pro짯per짯ty, plant and equip짯ment becau짯se the addi짯ti짯ons are not repre짯sen짯ta짯ti짯ve of our long-term capi짯tal requi짯re짯ments and the짯se assets were sold upon the first clo짯sing of the tran짯sac짯tion that occur짯red on Decem짯ber 29, 2021, sub짯se짯quent to our fis짯cal 2021 year-end.

The GAAP Out짯look to Non-GAAP Out짯look recon짯ci짯lia짯ti짯ons incre짯men짯tal짯ly include the below adjus짯t짯ments. As announ짯ced in our Q3 ear짯nings call, start짯ing in 2022, we will be exclu짯ding from our non-GAAP results, share-based com짯pen짯sa짯ti짯on and all gains and los짯ses on equi짯ty invest짯ments. The adjus짯t짯ment for all gains and los짯ses on equi짯ty invest짯ments includes the ongo짯ing mark-to-mar짯ket adjus짯t짯ments pre짯vious짯ly excluded from our non-GAAP results.

Non-GAAP adjus짯t짯ment or measure Defi짯ni짯ti짯on Useful짯ness to manage짯ment and investors
Share-based com짯pen짯sa짯ti짯on Share-based com짯pen짯sa짯ti짯on con짯sists of char짯ges rela짯ted to our employee equi짯ty incen짯ti짯ve plans. We exclude char짯ges rela짯ted to share-based com짯pen짯sa짯ti짯on for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se we belie짯ve the짯se adjus짯t짯ments pro짯vi짯de bet짯ter com짯pa짯ra짯bi짯li짯ty to peer com짯pa짯ny results and becau짯se the짯se char짯ges are not view짯ed by manage짯ment as part of our core ope짯ra짯ting per짯for짯mance. We belie짯ve the짯se adjus짯t짯ments pro짯vi짯de inves짯tors with a useful view, through the eyes of manage짯ment, of the company셲 core busi짯ness model, how manage짯ment curr짯ent짯ly eva짯lua짯tes core ope짯ra짯tio짯nal per짯for짯mance, and addi짯tio짯nal means to eva짯lua짯te expen짯se trends, inclu짯ding in com짯pa짯ri짯son to other peer companies.
(Gains) los짯ses on equi짯ty invest짯ments, net (Gains) los짯ses on equi짯ty invest짯ments, net con짯sists of ongo짯ing mark-to-mar짯ket adjus짯t짯ments on mar짯ke짯ta짯ble equi짯ty secu짯ri짯ties, obser짯va짯ble pri짯ce adjus짯t짯ments on non-mar짯ke짯ta짯ble equi짯ty secu짯ri짯ties, impair짯ment char짯ges, and sale of equi짯ty invest짯ments and other. We exclude the짯se non-ope짯ra짯ting ear짯nings for bet짯ter com짯pa짯ra짯bi짯li짯ty bet짯ween peri짯ods. The exclu짯si짯on reflects how manage짯ment eva짯lua짯tes the core ope짯ra짯ti짯ons of the business.
(Gains) los짯ses from divestiture Gains or los짯ses are reco짯gni짯zed at the clo짯se of a dives짯ti짯tu짯re, or over a spe짯ci짯fied defer짯ral peri짯od when defer짯red con짯side짯ra짯ti짯on is recei짯ved at the time of clo짯sing. Based on our ongo짯ing obli짯ga짯ti짯on under the NAND wafer manu짯fac짯tu짯ring and sale agree짯ment ente짯red into in con짯nec짯tion with the first clo짯sing of the sale of our NAND memo짯ry busi짯ness on Decem짯ber 29, 2021, a por짯ti짯on of the initi짯al clo짯sing con짯side짯ra짯ti짯on will be defer짯red and reco짯gni짯zed bet짯ween first and second closing.  We exclude gains or los짯ses resul짯ting from dives짯ti짯tures for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se they do not reflect our cur짯rent ope짯ra짯ting per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results.

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Recon짯ci짯lia짯ti짯ons of GAAP Actu짯als to Non-GAAP Actuals

Set forth below are recon짯ci짯lia짯ti짯ons of the non-GAAP finan짯cial mea짯su짯re to the most direct짯ly com짯pa짯ra짯ble U.S. GAAP finan짯cial mea짯su짯re. The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with U.S. GAAP, and the recon짯ci짯lia짯ti짯ons from U.S. GAAP to Non-GAAP actu짯als should be careful짯ly eva짯lua짯ted. Plea짯se refer to 쏣xpl짯ana짯ti짯on of Non-GAAP Mea짯su짯res in this docu짯ment for a detail짯ed expl짯ana짯ti짯on of the adjus짯t짯ments made to the com짯pa짯ra짯ble U.S. GAAP mea짯su짯res, the ways manage짯ment uses the non-GAAP mea짯su짯res, and the reasons why manage짯ment belie짯ves the non-GAAP mea짯su짯res pro짯vi짯de useful infor짯ma짯ti짯on for investors.

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons, Except Per Share Amounts)   Dec 25, 2021   Dec 26, 2020   Dec 25, 2021   Dec 26, 2020
GAAP net revenue   $     20,528      $     19,978      $     79,024     $     77,867  
NAND memo짯ry business             (996)             (1,115)            (4,306)           (4,967) 
Non-GAAP net revenue   $     19,532      $     18,863      $     74,718     $     72,900  
                 
GAAP gross margin   $     11,009      $     11,348      $     43,815     $     43,612  
Acqui짯si짯ti짯on-rela짯ted adjustments              335               310            1,283             1,211   
NAND memo짯ry business             (518)               (338)            (1,995)           (1,524) 
Non-GAAP gross margin   $     10,826      $     11,320      $     43,103     $     43,299  
                 
GAAP gross mar짯gin percentage   53.6 %   56.8 %   55.4 %   56.0 %
Acqui짯si짯ti짯on-rela짯ted adjustments   1.6 %   1.6 %   1.6 %   1.6 %
NAND memo짯ry business   0.2 %   1.7 %   0.6 %   1.8 %
Non-GAAP gross mar짯gin per짯cen짯ta짯ge1   55.4 %   60.0 %   57.7 %   59.4 %
                 
GAAP R&D and MG&A   $       5,991      $       5,412      $     21,733     $     19,736  
Acqui짯si짯ti짯on-rela짯ted adjustments               (52)                 (53)               (209)              (205) 
NAND memo짯ry business             (164)               (159)               (626)              (587) 
Non-GAAP R&D and MG&A   $       5,775      $       5,200      $     20,898     $     18,944  
                 
GAAP ope짯ra짯ting income   $       4,989      $       5,884      $     19,456     $     23,678  
Acqui짯si짯ti짯on-rela짯ted adjustments              387               363            1,492             1,416  
Res짯truc짯tu짯ring and other charges                29                 52            2,626                198 
NAND memo짯ry business             (354)               (179)            (1,369)              (937) 
Non-GAAP ope짯ra짯ting income   $       5,051      $       6,120      $     22,205     $     24,355  
                 
GAAP ope짯ra짯ting margin   24.3 %   29.5 %   24.6 %   30.4 %
Acqui짯si짯ti짯on-rela짯ted adjustments   1.9 %   1.8 %   1.9 %   1.8 %
Res짯truc짯tu짯ring and other charges   0.1 %   0.3 %   3.3 %   0.3 %
NAND memo짯ry business   (0.5) %   0.9 %   (0.1) %   0.9 %
Non-GAAP ope짯ra짯ting mar짯gin1   25.9 %   32.4 %   29.7 %   33.4 %
                 
GAAP tax rate   11.0 %   21.8 %   8.5 %   16.7 %
Inco짯me tax effects   0.7 %   (0.1) %   0.6 %   (0.1) %
Non-GAAP tax rate   11.7 %   21.7 %   9.1 %   16.6 %
         
GAAP net income   $       4,623      $       5,857      $     19,868     $     20,899  
Acqui짯si짯ti짯on-rela짯ted adjustments              387               363            1,492             1,416  
Res짯truc짯tu짯ring and other charges                29                 52            2,626                198 
(Gains) los짯ses from divestiture                                                                        (6) 
Ongo짯ing mark-to-mar짯ket on mar짯ke짯ta짯ble equi짯ty securities             (216)                  48               130               133 
NAND memo짯ry business             (354)               (179)            (1,369)              (937) 
Inco짯me tax effects               (18)                 (56)               (391)              (107) 
Non-GAAP net income   $       4,451      $       6,085      $     22,356     $     21,596  
1  Our recon짯ci짯lia짯ti짯ons of GAAP to non-GAAP gross mar짯gin and ope짯ra짯ting mar짯gin per짯cen짯ta짯ge reflect the exclu짯si짯on of our NAND memo짯ry              busi짯ness from net revenue.
(In Mil짯li짯ons, Except Per Share Amounts)   Dec 25, 2021   Dec 26, 2020   Dec 25, 2021   Dec 26, 2020
GAAP ear짯nings per share봡iluted   $         1.13      $         1.42      $        4.86     $        4.94  
Acqui짯si짯ti짯on-rela짯ted adjustments             0.09                0.09                0.36               0.33  
Res짯truc짯tu짯ring and other charges             0.01                0.02                0.65               0.05  
(Gains) los짯ses from divestiture                                                                          
Ongo짯ing mark-to-mar짯ket on mar짯ke짯ta짯ble equi짯ty securities            (0.05)               0.01                0.03               0.03  
NAND memo짯ry business            (0.08)              (0.04)              (0.33)             (0.22) 
Inco짯me tax effects            (0.01)              (0.02)              (0.10)             (0.03) 
Non-GAAP ear짯nings per share봡iluted   $         1.09      $         1.48      $        5.47     $        5.10  

 

    Twel짯ve Months Ended
(In Mil짯li짯ons)   Dec 25, 2021
GAAP cash from operations   $                      29,991
Addi짯ti짯ons to pro짯per짯ty, plant and equipment                          (18,733)
Free cash flow   $                      11,258
GAAP cash used for inves짯t짯ing activities   $                     (25,167)
GAAP cash pro짯vi짯ded by (used for) finan짯cing activities   $                       (5,862)

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Recon짯ci짯lia짯ti짯ons of GAAP Out짯look to Non-GAAP Outlook

Set forth below are recon짯ci짯lia짯ti짯ons of the non-GAAP finan짯cial mea짯su짯re to the most direct짯ly com짯pa짯ra짯ble U.S. GAAP finan짯cial mea짯su짯re. The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with U.S. GAAP, and the finan짯cial out짯look pre짯pared in accordance with U.S. GAAP and the recon짯ci짯lia짯ti짯ons from this Busi짯ness Out짯look should be careful짯ly evaluated.

Plea짯se refer to 쏣xpl짯ana짯ti짯on of Non-GAAP Mea짯su짯res in this docu짯ment for a detail짯ed expl짯ana짯ti짯on of the adjus짯t짯ments made to the com짯pa짯ra짯ble U.S. GAAP mea짯su짯res, the ways manage짯ment uses the non-GAAP mea짯su짯res, and the reasons why manage짯ment belie짯ves the non-GAAP mea짯su짯res pro짯vi짯de useful infor짯ma짯ti짯on for investors.

(In Bil짯li짯ons, Except Per Share Amounts)   Q1 2022 Outlook
    Appro짯xi짯m짯ate짯ly
GAAP gross margin   49.4 %
Amor짯tiza짯ti짯on of acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets   1.9 %
Share-based com짯pen짯sa짯ti짯on   0.6 %
Non-GAAP gross margin   52.0 %
     
GAAP tax rate   25 %
Inco짯me tax effects   (10) %
Non-GAAP tax rate   15 %
     
GAAP ear짯nings per share봡iluted   $                   0.70   
Acqui짯si짯ti짯on-rela짯ted adjustments                        0.10   
Share-based com짯pen짯sa짯ti짯on                        0.18   
(Gains) los짯ses from divestiture                       (0.25)  
(Gains) los짯ses on equi짯ty invest짯ments, net                       (0.02)  
Inco짯me tax effects                        0.09   
Non-GAAP ear짯nings per share봡iluted   $                   0.80   

Released Jan 26, 2022 4:00 PM EST