Intel Reports Fourth-Quarter and Full-Year 2022 Financial Results

뼧Fourth-quar짯ter reve짯nue was $14.0 bil짯li짯on, down 32 per짯cent year-over-year (YoY) and down 28 per짯cent YoY on a non-GAAP basis. Full-year reve짯nue was $63.1 bil짯li짯on, down 20 per짯cent YoY and down 16 per짯cent YoY on a non-GAAP basis.

뼧Fourth-quar짯ter ear짯nings (loss) per share (EPS) was $(0.16); non-GAAP EPS was $0.10. Full-year EPS was $1.94; non-GAAP EPS was $1.84.

뼧Fore짯cas짯ting first-quar짯ter 2023 reve짯nue of $10.5 bil짯li짯on to $11.5 bil짯li짯on; expec짯ting first-quar짯ter EPS of $(0.80) (non-GAAP EPS of $(0.15)).

뼧Decla짯res quar짯ter짯ly cash divi짯dend of $0.365 per share.

SANTA CLARA, Calif., Jan. 26, 2023 Intel Cor짯po짯ra짯ti짯on today repor짯ted fourth-quar짯ter and full-year 2022 finan짯cial results. The com짯pa짯ny also announ짯ced that its board of direc짯tors has declared a quar짯ter짯ly divi짯dend of $0.365 per share on the company셲 com짯mon stock, which will be paya짯ble on March 1, 2023, to share짯hol짯ders of record as of Febru짯ary 7, 2023.

Despi짯te the eco짯no짯mic and mar짯ket head짯winds, we con짯tin짯ued to make good pro짯gress on our stra짯te짯gic trans짯for짯ma짯ti짯on in Q4, inclu짯ding advan짯cing our pro짯duct road짯map and impro짯ving our ope짯ra짯tio짯nal struc짯tu짯re and pro짯ces짯ses to dri짯ve effi짯ci짯en짯ci짯es while deli짯ve짯ring at the low-end of our gui짯ded ran짯ge, said Pat Gel짯sin짯ger, Intel CEO. 쏧n 2023, we will con짯ti짯nue to navi짯ga짯te the short-term chal짯lenges while stri짯ving to meet our long-term com짯mit짯ments, inclu짯ding deli짯ve짯ring lea짯der짯ship pro짯ducts ancho짯red on open and secu짯re plat짯forms, powered by at-sca짯le manu짯fac짯tu짯ring and super짯char짯ged by our incre짯di짯ble team. 

In the fourth quar짯ter, we took steps to right-size the orga짯niza짯ti짯on and ratio짯na짯li짯ze our invest짯ments, prio짯ri짯tiz짯ing the are짯as whe짯re we can deli짯ver the hig짯hest value for the long term, said David Zins짯ner, Intel CFO. 쏷he짯se actions under짯pin our cost-reduc짯tion tar짯gets of $3 bil짯li짯on in 2023, and set the stage to achie짯ve $8 bil짯li짯on to $10 bil짯li짯on by the end of 2025.

Q4 2022 Finan짯cial Results

  GAAP   Non-GAAP
  Q4 2022 Q4 2021 vs. Q4 2021   Q4 2022 Q4 2021 vs. Q4 2021
Reve짯nue ($B) $14.0 $20.5 down 32%   $14.0^ $19.5 down 28%
Gross mar짯gin 39.2% 53.6% down 14.5 ppts   43.8% 55.8% down 12.1 ppts
R&D and MG&A ($B) $6.2 $6.0 up 3%   $5.5 $5.4 up 3%
Ope짯ra짯ting mar짯gin (loss) (8.1)% 24.3% down 32.4 ppts   4.3% 28.2% down 23.9 ppts
Tax rate 17.0% 11.0% up 6 ppts   45.7% 11.7% up 34.1 ppts
Net inco짯me (loss) ($B) $(0.7) $4.6 down 114%   $0.4 $4.7 down 92%
Ear짯nings (loss) per share $(0.16) $1.13 down 114%   $0.10 $1.15 down 92%

In the fourth quar짯ter, the com짯pa짯ny gene짯ra짯ted $7.7 bil짯li짯on in cash from ope짯ra짯ti짯ons and paid divi짯dends of $1.5 billion.

Full-Year 2022 Finan짯cial Results

  GAAP   Non-GAAP
  2022 2021 vs. 2021   2022 2021 vs. 2021
Reve짯nue ($B) $63.1 $79.0 down 20%   $63.1^ $74.7 down 16%
Gross mar짯gin 42.6% 55.4% down 12.8 ppts   47.3% 58.1% down 10.8 ppts
R&D and MG&A ($B) $24.5 $21.7 up 13%   $21.9 $19.2 up 14%
Ope짯ra짯ting margin 3.7% 24.6% down 20.9 ppts   12.6% 32.4% down 19.9 ppts
Tax rate (3.2)% 8.5% down 11.7 ppts   4.1% 8.7% down 4.6 ppts
Net inco짯me ($B) $8.0 $19.9 down 60%   $7.6 $21.7 down 65%
Ear짯nings per share $1.94 $4.86 down 60%   $1.84 $5.30 down 65%

For the full year, the com짯pa짯ny gene짯ra짯ted $15.4 bil짯li짯on in cash from ope짯ra짯ti짯ons and paid divi짯dends of $6.0 billion.

 

Busi짯ness Unit Summary

Intel pre짯vious짯ly announ짯ced seve짯ral orga짯niza짯tio짯nal chan짯ges to acce짯le짯ra짯te its exe짯cu짯ti짯on and inno짯va짯ti짯on by allo짯wing it to cap짯tu짯re growth in both lar짯ge tra짯di짯tio짯nal mar짯kets and high-growth emer짯ging mar짯kets. This includes the reor짯ga짯niza짯ti짯on of Intel셲 busi짯ness units to cap짯tu짯re this growth and pro짯vi짯de increased trans짯pa짯ren짯cy, focus and accoun짯ta짯bi짯li짯ty. As a result, the com짯pa짯ny modi짯fied its seg짯ment report짯ing in the first quar짯ter of 2022 to ali짯gn to the pre짯vious짯ly announ짯ced busi짯ness reor짯ga짯niza짯ti짯on. All pri짯or-peri짯od seg짯ment data has been retro짯s짯pec짯tively adjus짯ted to reflect the way the com짯pa짯ny intern짯al짯ly mana짯ges and moni짯tors ope짯ra짯ting seg짯ment per짯for짯mance start짯ing in fis짯cal year 2022.

Busi짯ness Unit Reve짯nue and Trends   Q4 2022   vs. Q4 2021   2022   vs. 2021
Cli짯ent Com짯pu짯ting Group (CCG)   $6.6 bil짯li짯on   down 36%   $31.7 bil짯li짯on   down 23%
Data Cen짯ter and AI (DCAI)   $4.3 bil짯li짯on   down 33%   $19.2 bil짯li짯on   down 15%
Net짯work and Edge (NEX)   $2.1 bil짯li짯on   down 1%   $8.9 bil짯li짯on   up 11%
Mobi짯leye   $565 mil짯li짯on   up 59%   $1.9 bil짯li짯on   up 35%
Acce짯le짯ra짯ted Com짯pu짯ting Sys짯tems and Gra짯phics (AXG)   $247 mil짯li짯on   up 1%   $837 mil짯li짯on   up 8%
Intel Foundry Ser짯vices (IFS)   $319 mil짯li짯on   up 30%   $895 mil짯li짯on   up 14%

Busi짯ness Highlights

 

뼧       Intel con짯ti짯nues to make pro짯gress with its goal of achie짯ving five nodes in four years and is on track to regain tran짯sis짯tor per짯for짯mance and power per짯for짯mance lea짯der짯ship by 2025. Intel 7 is now in high-volu짯me manu짯fac짯tu짯ring for both cli짯ent and ser짯ver. Intel 4 is manu짯fac짯tu짯ring-rea짯dy, with the Mete짯or Lake ramp expec짯ted in the second half of 2023. Intel 3 con짯ti짯nues to pro짯gress and is on track. On Intel 20A and Intel 18A, Intel셲 first inter짯nal test chips, and tho짯se of a major poten짯ti짯al foundry cus짯to짯mer, have taped out with pro짯ducts under짯go짯ing fabrication.

뼧       In the fourth quar짯ter of 2022, CCG셲 13th Gen Intel Core꽓 desk짯top pro짯ces짯sor fami짯ly beca짯me available, start짯ing with desk짯top 쏫 pro짯ces짯sors and the Intel Z790 chip짯set. Addi짯tio짯nal짯ly, in Decem짯ber 2022, in part짯ner짯ship with ASUS, Intel offi짯ci짯al짯ly set a new world record for over짯clo짯cking, pushing the 13th Gen Intel Core i9-13900K past the 9 giga짯hertz bar짯ri짯er for the first time ever.

뼧       In Janu짯ary 2023, DCAI laun짯ched its 4th Gen Intel Xeon Sca짯lable pro짯ces짯sors (form짯er짯ly code-named Sap짯phi짯re Rapids) with the sup짯port of cus짯to짯mers and part짯ners such as Dell Tech짯no짯lo짯gies, Goog짯le Cloud, Hew짯lett Packard Enter짯pri짯se, Leno짯vo, Micro짯soft Azu짯re, NVIDIA and many others, and is ram짯ping pro짯duc짯tion to meet a strong back짯log of demand.

뼧       NEX achie짯ved a second con짯se짯cu짯ti짯ve year of dou짯ble-digit reve짯nue growth, hit짯ting key pro짯duct mile짯sto짯nes with Intel IPU E2000 (Mount Evans), Rap짯tor Lake P&S, Alder Lake N and Sap짯phi짯re Rapids.

뼧       AXG deli짯ver짯ed record reve짯nue for both the fourth quar짯ter and full year. In Janu짯ary 2023, AXG laun짯ched the Intel Xeon CPU Max Series (form짯er짯ly code-named Sap짯phi짯re Rapids HBM) and the Intel Data Cen짯ter GPU Max Series (form짯er짯ly code-named Pon짯te Vec짯chio). Intel also announ짯ced that with AXG셲 flag짯ship pro짯ducts now in pro짯duc짯tion, the com짯pa짯ny is evol짯ving AXG셲 struc짯tu짯re to acce짯le짯ra짯te and sca짯le its impact and dri짯ve go-to-mar짯ket stra짯te짯gies with a uni짯fied voice to cus짯to짯mers. Accor짯din짯gly, the con짯su짯mer gra짯phics teams will join CCG, and the acce짯le짯ra짯ted com짯pu짯ting teams will join DCAI

뼧       IFS achie짯ved record reve짯nue for both the fourth quar짯ter and full year, with acti짯ve design enga짯ge짯ments with seven of the 10 lar짯gest foundry cus짯to짯mers. It also added a lea짯ding cloud, edge and data cen짯ter solu짯ti짯ons pro짯vi짯der as a cus짯to짯mer to Intel 3.

뼧       Intel com짯ple짯ted the IPO of Mobi짯leye, which achie짯ved record reve짯nue for both the fourth quar짯ter and full year of 2022. Mobi짯leye con짯tin짯ued to exe짯cu짯te well in its core advan짯ced dri짯ver-assis짯tance sys짯tems (ADAS) busi짯ness, as it laun짯ched sys짯tems into 233 distinct vehic짯le models in 2022.

 

Busi짯ness Outlook

Intel셲 gui짯dance for the first quar짯ter of 2023 includes both GAAP and non-GAAP esti짯ma짯tes. Recon짯ci짯lia짯ti짯ons bet짯ween GAAP and non-GAAP finan짯cial mea짯su짯res are included below.*

Q1 2023   GAAP*   Non-GAAP*
    Appro짯xi짯m짯ate짯ly   Appro짯xi짯m짯ate짯ly
Reve짯nue   $10.511.5 bil짯li짯on   $10.511.5 bil짯li짯on^
Gross mar짯gin   34.1%   39.0%
Tax rate   (84)%   13%
Ear짯nings (loss) per share   $(0.80)   $(0.15)

 

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

*Effec짯ti짯ve Janu짯ary 2023, Intel increased the esti짯ma짯ted useful life of cer짯tain pro짯duc짯tion machi짯nery and equip짯ment from five years to eight years. When com짯pared to the esti짯ma짯ted useful life in place as of the end of 2022, Intel expects total depre짯cia짯ti짯on expen짯se in 2023 to redu짯ce by rough짯ly $4.2 bil짯li짯on, inclu짯ding an appro짯xi짯ma짯te $2.6 bil짯li짯on increase to gross pro짯fit, a $400 mil짯li짯on decrease in R&D expen짯ses and a $1.2 bil짯li짯on decrease in 2023 ending inven짯to짯ry values. Intel셲 Q1 2023 out짯look includes an esti짯ma짯ted $350 mil짯li짯on to $500 mil짯li짯on bene짯fit to ope짯ra짯ting mar짯gin or $0.07 to $0.10 bene짯fit to EPS from this chan짯ge, split appro짯xi짯m짯ate짯ly 75% to cost of sales and 25% to ope짯ra짯ting expen짯ses. The chan짯ge in depre짯cia짯ble life will not be coun짯ted toward the $3 bil짯li짯on in cost savings in 2023 or the $8 bil짯li짯on to $10 bil짯li짯on exi짯ting 2025 com짯mu짯ni짯ca짯ted at Q3 2022 earnings. 

 

Ear짯nings Webcast

Intel will hold a public web짯cast at 2 p.m. PST today to dis짯cuss the results for its fourth-quar짯ter and full-year 2022. The live public web짯cast can be acces짯sed on Intel셲 Inves짯tor Rela짯ti짯ons web짯site at www.intc.com. The cor짯re짯spon짯ding ear짯nings pre짯sen짯ta짯ti짯on and web짯cast replay will also be available on the site. 

 

 

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 쏿cce짯le짯ra짯te, 쏿chie짯ve, 쏿djust, 쏿llow, 쏿nti짯ci짯pa짯tes, 쐀elie짯ves, 쐁om짯mit짯ted, 쐁on짯ti짯nues, 쐁ould, 쐂eli짯ver, 쐂ri짯ve, 쐃sti짯ma짯tes, 쐃xpand, 쐃xpects, 쐄ocus, 쐄ore짯cast, 쐄uture, 쐅oals, 쐅row, 쐅ui짯dance, 쐇mpro짯ve, 쐇ncre짯asing, 쐌ana짯ge, 쐌ay, 쐎n-track, 쐎ppor짯tu짯ni짯ty, 쐎ut짯look, 쐏lan, 쐏osi짯tio짯ned, 쐏oten짯ti짯al, 쐏ro짯gress, 쐒amp, 쐒efo짯cus, 쐒egain, 쐓har짯pen, 쐓hould, 쐓up짯port, 쐗ill, 쐗ould, 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 and its anti짯ci짯pa짯ted bene짯fits, inclu짯ding our IDM 2.0 stra짯tegy, Febru짯ary 2022 Inves짯tor Mee짯ting finan짯cial model, Smart Capi짯tal stra짯tegy, the Semi짯con짯duc짯tor Co-Invest짯ment Pro짯gram, the tran짯si짯ti짯on to an inter짯nal foundry model, and updates to our report짯ing struc짯tu짯re; manu짯fac짯tu짯ring expan짯si짯on, finan짯cing, and invest짯ment plans, inclu짯ding the impacts of plans such as our announ짯ced invest짯ments in the US and abroad; plans, cus짯to짯mers, and goals rela짯ted to Intel셲 foundry busi짯ness; pro짯jec짯ted cos짯ts and yield trends; sup짯p짯ly expec짯ta짯ti짯ons, inclu짯ding regar짯ding indus짯try shorta짯ges, cons짯traints, limi짯ta짯ti짯ons, pri짯cing and suf짯fi짯ci짯en짯cy of future sup짯p짯ly; pen짯ding tran짯sac짯tions, inclu짯ding the pen짯ding acqui짯si짯ti짯on of Tower Semi짯con짯duc짯tor Ltd., the sale of our NAND memo짯ry busi짯ness, and the wind-down of our Intel짰 Opta짯ne꽓 memo짯ry busi짯ness; expec짯ted com짯ple짯ti짯on and impacts of res짯truc짯tu짯ring acti짯vi짯ties and cost-saving or effi짯ci짯en짯cy initia짯ti짯ves; total addressa짯ble mar짯ket (TAM) and mar짯ket oppor짯tu짯ni짯ty; busi짯ness plans and finan짯cial expec짯ta짯ti짯ons; future macroe짯co짯no짯mic and geo짯po짯li짯ti짯cal con짯di짯ti짯ons, inclu짯ding regio짯nal or glo짯bal down짯turns or reces짯si짯ons; future legis짯la짯ti짯on, inclu짯ding any expec짯ta짯ti짯ons regar짯ding anti짯ci짯pa짯ted finan짯cial and other bene짯fits or incen짯ti짯ves the짯reun짯der; tax- and accoun짯ting-rela짯ted expec짯ta짯ti짯ons; future respon짯ses to and effects of the COVID-19 pan짯de짯mic, inclu짯ding manu짯fac짯tu짯ring, trans짯por짯ta짯ti짯on, and ope짯ra짯tio짯nal rest짯ric짯tions or dis짯rup짯ti짯ons; future pro짯ducts, tech짯no짯lo짯gy, and ser짯vices, and the expec짯ted regu짯la짯ti짯on, avai짯la짯bi짯li짯ty, pro짯duc짯tion, and bene짯fits of such pro짯ducts, tech짯no짯lo짯gy, and ser짯vices, inclu짯ding pro짯duct ramps, manu짯fac짯tu짯ring goals, plans, time짯lines, and future pro짯gress, future pro짯cess nodes and tech짯no짯lo짯gies inclu짯ding Intel 20A, Rib짯bon짯FET, and Power짯Via, pro짯cess per짯for짯mance pari짯ty and lea짯der짯ship expec짯ta짯ti짯ons, future pro짯duct archi짯tec짯tures, Alder Lake, Lunar Lake, Mete짯or Lake, Rap짯tor Lake, Sap짯phi짯re Rapids, Emer짯ald Rapids, Gra짯ni짯te Rapids, Sier짯ra Forest, Mt. Evans, and future GPU and IPU pro짯ducts; future busi짯ness, social, and envi짯ron짯men짯tal per짯for짯mance, goals, mea짯su짯res, and stra짯te짯gies; avai짯la짯bi짯li짯ty, uses, suf짯fi짯ci짯en짯cy, and cost of capi짯tal resour짯ces and sources of fun짯ding, inclu짯ding future capi짯tal and R&D invest짯ments, cre짯dit rating expec짯ta짯ti짯ons, and expec짯ted returns to stock짯hol짯ders such as stock repurcha짯ses and divi짯dends; our debt obli짯ga짯ti짯ons; stock vola짯ti짯li짯ty; expec짯ta짯ti짯ons regar짯ding cus짯to짯mers, inclu짯ding with respect to designs, wins, orders, and part짯ner짯ships; 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. Unless spe짯ci짯fi짯cal짯ly indi짯ca짯ted other짯wi짯se, the for짯ward-loo짯king state짯ments in this release do not reflect the poten짯ti짯al impact of any dives짯ti짯tures, mer짯gers, acqui짯si짯ti짯ons, or other busi짯ness com짯bi짯na짯ti짯ons that have not been com짯ple짯ted as of the date of this release. 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 or fore짯casts inclu짯ding 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; sup짯pli짯ers exten짯ding lead times, expe짯ri짯en짯cing capa짯ci짯ty cons짯traints, limi짯ting or can짯ce짯ling sup짯p짯ly, allo짯ca짯ting sup짯p짯ly to other cus짯to짯mers inclu짯ding com짯pe짯ti짯tors, delay짯ing or can짯ce짯ling deli짯veries or incre짯asing pri짯ces, or other sup짯p짯ly chain issues; 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 have resul짯ted and can result in res짯truc짯tu짯ring and asset impair짯ment charges.

뼧       Intel셲 results may be affec짯ted by fac짯tors that could cau짯se the imple짯men짯ta짯ti짯on of, and expec짯ted results from, our res짯truc짯tu짯ring or cost-savings initia짯ti짯ves to dif짯fer from Intel셲 expec짯ta짯ti짯ons. The expec짯ted cost savings resul짯ting from the짯se initia짯ti짯ves may not be rea짯li짯zed and are sub짯ject to risks rela짯ted to the timing and amount of rela짯ted char짯ges, local labor law requi짯re짯ments, and assump짯ti짯ons rela짯ted to sever짯ance, post-reti짯re짯ment, and other cos짯ts. In addi짯ti짯on, signi짯fi짯cant or pro짯lon짯ged tur짯no짯ver may nega짯tively impact our ope짯ra짯ti짯ons and cul짯tu짯re, as well as our abili짯ty to suc짯cessful짯ly main짯tain our pro짯ces짯ses and pro짯ce짯du짯res, inclu짯ding due to the loss of his짯to짯ri짯cal, tech짯ni짯cal, and other expertise.

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), fluc짯tua짯tions in cur짯ren짯cy exch짯an짯ge rates, infla짯ti짯on, inte짯rest rate risks, 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 US 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 US govern짯ment enti짯ty list and chan짯ges in the abili짯ty to obtain export licen짯ses, which can be chan짯ged wit짯hout pri짯or noti짯ce. For exam짯p짯le, in respon짯se to Russia셲 war with Ukrai짯ne, num짯e짯rous count짯ries and orga짯niza짯ti짯ons have impo짯sed finan짯cial and other sanc짯tions and export con짯trols against Rus짯sia and Bela짯rus, while busi짯nesses, inclu짯ding the com짯pa짯ny, have limi짯t짯ed or sus짯pen짯ded Rus짯si짯an ope짯ra짯ti짯ons. Rus짯sia has like짯wi짯se impo짯sed cur짯ren짯cy rest짯ric짯tions and regu짯la짯ti짯ons and may fur짯ther take reta짯li짯a짯to짯ry trade or other actions, inclu짯ding the natio짯na짯liza짯ti짯on of for짯eign businesses.

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 manu짯fac짯tu짯ring, trans짯por짯ta짯ti짯on, and ope짯ra짯tio짯nal rest짯ric짯tions or dis짯rup짯ti짯ons, such as the Shang짯hai port shut짯downs. The짯se mea짯su짯res have impac짯ted and may fur짯ther impact our work짯force and ope짯ra짯ti짯ons, the ope짯ra짯ti짯ons of our cus짯to짯mers, and tho짯se of our respec짯ti짯ve ven짯dors, sup짯pli짯ers, and part짯ners. Rest짯ric짯tions on our manu짯fac짯tu짯ring or sup짯port ope짯ra짯ti짯ons or work짯force, or simi짯lar limi짯ta짯ti짯ons for our ven짯dors and sup짯pli짯ers, can impact our abili짯ty to meet cus짯to짯mer demand and could have a mate짯ri짯al adver짯se effect on us. Rest짯ric짯tions or dis짯rup짯ti짯ons of trans짯por짯ta짯ti짯on, or 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 also pre짯vious짯ly resul짯ted in sub짯stan짯ti짯al eco짯no짯mic uncer짯tain짯ty and vola짯ti짯li짯ty and dis짯rupt짯ed his짯to짯ri짯cal pat짯terns rela짯ted to demand for our pro짯ducts and ser짯vices. Demand for our pro짯ducts has been and could again be mate짯ri짯al짯ly har짯med in the future, and our abili짯ty to accu짯ra짯te짯ly pre짯dict future demand, trends, or other mat짯ters may be impac짯ted. 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, such as the Infla짯ti짯on Reduc짯tion Act of 2022; 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, che짯mi짯cals, 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 2022, the Gene짯ral Court in the Euro짯pean Com짯mis짯si짯on (EC) com짯pe짯ti짯ti짯on mat짯ter annul짯led the EC셲 fin짯dings against Intel regar짯ding reba짯tes, as well as the fine pre짯vious짯ly impo짯sed on and paid by Intel. $1.2 bil짯li짯on was retur짯ned to Intel in Febru짯ary 2022, and the EC has appea짯led this decis짯i짯on to the Court of Justice.

뼧       Intel셲 results can be affec짯ted by the impact and timing of clo짯sing of acqui짯si짯ti짯ons, dives짯ti짯tures, and other signi짯fi짯cant tran짯sac짯tions, such as the pen짯ding acqui짯si짯ti짯on of Tower Semi짯con짯duc짯tor Inc. 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. We may not rea짯li짯ze the expec짯ted bene짯fits of port짯fo짯lio decis짯i짯ons due to num짯e짯rous risks, inclu짯ding unfa짯vorable pri짯ces and terms; chan짯ges in mar짯ket con짯di짯ti짯ons; chan짯ges in appli짯ca짯ble laws; limi짯ta짯ti짯ons due to regu짯la짯to짯ry or govern짯men짯tal appr짯ovals, con짯trac짯tu짯al terms, or other con짯di짯ti짯ons; and poten짯ti짯al con짯tin짯ued finan짯cial obli짯ga짯ti짯ons asso짯cia짯ted with such transactions.

 

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.

 

 

 

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted State짯ments of Inco짯me and Other Information

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons, Except Per Share Amounts; unaudited)   Dec 31, 2022   Dec 25, 2021   Dec 31, 2022   Dec 25, 2021
Net reve짯nue   $        14,042   $        20,528   $        63,054   $        79,024
Cost of sales              8,542              9,519            36,188            35,209
Gross mar짯gin              5,500            11,009            26,866            43,815
Rese짯arch and development              4,464              4,049            17,528            15,190
Mar짯ke짯ting, gene짯ral and administrative              1,706              1,942              7,002              6,543
Res짯truc짯tu짯ring and other charges                 462                  29                    2              2,626
Ope짯ra짯ting expenses              6,632              6,020            24,532            24,359
Ope짯ra짯ting inco짯me (loss)             (1,132)              4,989              2,334            19,456
Gains (los짯ses) on equi짯ty invest짯ments, net                 186                 359              4,268              2,729
Inte짯rest and other, net                 150               (154)              1,166               (482)
Inco짯me (loss) befo짯re taxes               (796)              5,194              7,768            21,703
Pro짯vi짯si짯on for (bene짯fit from) taxes               (135)                 571               (249)              1,835
Net inco짯me (loss)               (661)              4,623              8,017            19,868
Less: Net inco짯me attri짯bu짯ta짯ble to non-con짯trol짯ling interests                    3                                      3                  
Net inco짯me (loss) attri짯bu짯ta짯ble to Intel   $           (664)   $         4,623   $         8,014   $        19,868
                 
Ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봟asic   $          (0.16)   $           1.14   $           1.95   $           4.89
Ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $          (0.16)   $           1.13   $           1.94   $           4.86
                 
Weigh짯ted avera짯ge shares of com짯mon stock outstanding:                
Basic              4,133              4,069              4,108              4,059
Diluted              4,133              4,095              4,123              4,090

 

    Three Months Ended
(In Mil짯li짯ons)   Dec 31, 2022   Dec 25, 2021
Ear짯nings per share of com짯mon stock information:        
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봟asic              4,133              4,069
Dilu짯ti짯ve effect of employee equi짯ty incen짯ti짯ve plans                                    26
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봡iluted              4,133              4,095
         
Other infor짯ma짯ti짯on:        
Employees (in thousands)              131.9              121.1

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Balan짯ce Sheets

(In Mil짯li짯ons, Except Par Value; Unaudited)   Dec 31, 2022   Dec 25, 2021
Assets        
Cur짯rent assets:        
Cash and cash equivalents   $         11,144   $          4,827
Short-term invest짯ments             17,194             24,426
Accounts receiva짯ble               4,133               9,457
Invent짯ories        
Raw mate짯ri짯als               1,517               1,441
Work in process               7,565               6,656
Finis짯hed goods               4,142               2,679
              13,224             10,776
Assets held for sale                   45               6,942
Other cur짯rent assets               4,667               2,130
Total cur짯rent assets             50,407             58,558
         
Pro짯per짯ty, plant and equip짯ment, net             80,860             63,245
Equi짯ty investments               5,912               6,298
Good짯will             27,591             26,963
Iden짯ti짯fied intan짯gi짯ble assets, net               6,018               7,270
Other long-term assets             11,315               6,072
Total assets   $       182,103   $       168,406
         
Lia짯bi짯li짯ties and stock짯hol짯ders equity        
Cur짯rent liabilities:        
Short-term debt   $          4,367   $          4,591
Accounts paya짯ble               9,595               5,747
Accrued com짯pen짯sa짯ti짯on and benefits               4,084               4,535
Inco짯me taxes payable               2,251               1,076
Other accrued liabilities             11,858             11,513
Total cur짯rent liabilities             32,155             27,462
         
Debt             37,684             33,510
Long-term inco짯me taxes payable               3,796               4,305
Defer짯red inco짯me taxes                  202               2,667
Other long-term liabilities               4,980               5,071
Stock짯hol짯ders equity:        
Pre짯fer짯red stock, $0.001 par value, 50 shares aut짯ho짯ri짯zed; none issued                                      
Com짯mon stock, $0.001 par value, 10,000 shares aut짯ho짯ri짯zed; 4,137 shares issued and out짯stan짯ding (4,070 issued and out짯stan짯ding in 2021) and capi짯tal in excess of par value             31,580             28,006
Accu짯mu짯la짯ted other com짯pre짯hen짯si짯ve inco짯me (loss)                (562)                (880)
Retai짯ned earnings             70,405             68,265
Total Intel stock짯hol짯ders equity            101,423             95,391
Non-con짯trol짯ling interests               1,863                   
Total stock짯hol짯ders equity            103,286             95,391
Total lia짯bi짯li짯ties and stock짯hol짯ders equity   $       182,103   $       168,406

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted State짯ments of Cash Flows

    Twel짯ve Months Ended
(In Mil짯li짯ons; unaudited)   Dec 31, 2022   Dec 25, 2021
         
Cash and cash equi짯va짯lents, begin짯ning of period   $          4,827   $          5,865
Cash flows pro짯vi짯ded by (used for) ope짯ra짯ting activities:        
Net inco짯me               8,017             19,868
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash pro짯vi짯ded by ope짯ra짯ting activities:        
Depre짯cia짯ti짯on             11,128               9,953
Share-based com짯pen짯sa짯ti짯on               3,128               2,036
Res짯truc짯tu짯ring and other charges               1,074               2,626
Amor짯tiza짯ti짯on of intangibles               1,907               1,839
(Gains) los짯ses on equi짯ty invest짯ments, net              (4,254)              (1,458)
(Gains) los짯ses on divestitures              (1,059)                   
Chan짯ges in assets and liabilities:        
Accounts receiva짯ble               5,327              (2,674)
Invent짯ories              (2,436)              (2,339)
Accounts paya짯ble                  (29)               1,190
Accrued com짯pen짯sa짯ti짯on and benefits              (1,533)                  515
Pre짯paid cus짯to짯mer sup짯p짯ly agreements                  (24)              (1,583)
Inco짯me taxes              (4,535)                (441)
Other assets and liabilities              (1,278)                  (76)
Total adjus짯t짯ments               7,416               9,588
Net cash pro짯vi짯ded by ope짯ra짯ting activities             15,433             29,456
Cash flows pro짯vi짯ded by (used for) inves짯t짯ing activities:        
Addi짯ti짯ons to pro짯per짯ty, plant and equipment            (24,844)            (18,733)
Addi짯ti짯ons to held for sale NAND pro짯per짯ty, plant and equipment                (206)              (1,596)
Purcha짯ses of short-term investments            (43,647)            (40,554)
Matu짯ri짯ties and sales of short-term investments             48,730             35,299
Purcha짯ses of equi짯ty investments                (510)                (613)
Sales of equi짯ty investments               4,961                  581
Pro짯ceeds from divestitures               6,579                   
Other inves짯t짯ing              (1,540)               1,167
Net cash used for inves짯t짯ing activities            (10,477)            (24,449)
Cash flows pro짯vi짯ded by (used for) finan짯cing activities:        
Issu짯an짯ce of com짯mer짯cial paper, net of issu짯an짯ce costs               3,945                   
Pay짯ments on finan짯ce leases                (345)                   
Part짯ner contributions                  874                   
Pro짯ceeds from Mobi짯leye IPO               1,032                   
Issu짯an짯ce of term debt, net of issu짯an짯ce costs               6,548               4,974
Repay짯ment of term debt and debt conversions              (4,984)              (2,500)
Pro짯ceeds from sales of com짯mon stock through employee equi짯ty incen짯ti짯ve plans                  977               1,020
Repurcha짯se of com짯mon stock                                 (2,415)
Pay짯ment of divi짯dends to stockholders              (5,997)              (5,644)
Other finan짯cing                (689)              (1,480)
Net cash pro짯vi짯ded by (used for) finan짯cing activities               1,361              (6,045)
Net increase (decrease) in cash and cash equivalents               6,317              (1,038)
Cash and cash equi짯va짯lents, end of period   $         11,144   $          4,827

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Ope짯ra짯ting Seg짯ment Results

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons)   Dec 31, 2022   Dec 25, 2021   Dec 31, 2022   Dec 25, 2021
Ope짯ra짯ting seg짯ment revenue:                
Cli짯ent Computing                
Desk짯top   $         2,509   $         3,756   $        10,661   $        12,437
Note짯book              3,663              5,809            18,783            25,443
Other                 453                 738              2,264              3,187
               6,625            10,303            31,708            41,067
                 
Data Cen짯ter and AI              4,304              6,426            19,196            22,691
Net짯work and Edge              2,061              2,086              8,873              7,976
Mobi짯leye                 565                 356              1,869              1,386
Acce짯le짯ra짯ted Com짯pu짯ting Sys짯tems and Graphics                 247                 245                 837                 774
Intel Foundry Services                 319                 245                 895                 786
All other                  30              1,033                 196              5,019
Total ope짯ra짯ting seg짯ment revenue   $        14,151   $        20,694   $        63,574   $        79,699
                 
Ope짯ra짯ting inco짯me (loss):                
Cli짯ent Computing   $            699   $         3,795   $         6,266   $        15,704
Data Cen짯ter and AI                 371              2,350              2,288              8,439
Net짯work and Edge                  58                 352                 740              1,711
Mobi짯leye                 210                 123                 690                 554
Acce짯le짯ra짯ted Com짯pu짯ting Sys짯tems and Graphics               (441)               (641)             (1,716)             (1,207)
Intel Foundry Services                 (31)                    3               (320)                 (23)
All other             (1,998)               (993)             (5,614)             (5,722)
Total ope짯ra짯ting inco짯me (loss)   $        (1,132)   $         4,989   $         2,334   $        19,456

The fol짯lo짯wing table pres짯ents inter짯seg짯ment reve짯nue befo짯re eliminations:

Total ope짯ra짯ting seg짯ment revenue   $        14,151   $        20,694   $        63,574   $        79,699
Less: Acce짯le짯ra짯ted Com짯pu짯ting Sys짯tems and Gra짯phics inter짯seg짯ment revenue               (109)               (166)               (520)               (675)
Total net revenue   $        14,042   $        20,528   $        63,054   $        79,024

We deri짯ve a sub짯stan짯ti짯al majo짯ri짯ty of our reve짯nue from our prin짯ci짯pal pro짯ducts that incor짯po짯ra짯te various com짯pon짯ents and tech짯no짯lo짯gies, inclu짯ding a micro짯pro짯ces짯sor and chip짯set, a stand-alo짯ne sys짯tem-on-chip or a mul짯ti짯chip packa짯ge, which are based on Intel architecture.

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

뼧       CCG includes pro짯ducts desi짯gned for end-user form fac짯tors, focu짯sing on hig짯her growth seg짯ments of 2 in 1, thin-and-light, com짯mer짯cial and gam짯ing, and gro짯wing other pro짯ducts such as con짯nec짯ti짯vi짯ty and graphics.

뼧       DCAI includes a broad port짯fo짯lio of cen짯tral pro짯ces짯sing units (CPUs), domain-spe짯ci짯fic acce짯le짯ra짯tors and field pro짯gramma짯ble gate arrays (FPGAs), desi짯gned to empower data cen짯ter and hypers짯ca짯le solu짯ti짯ons for diver짯se com짯pu짯ting needs.

뼧       NEX includes pro짯gramma짯ble plat짯forms and high-per짯for짯mance con짯nec짯ti짯vi짯ty and com짯pu짯te solu짯ti짯ons desi짯gned for mar짯ket seg짯ments such as cloud net짯wor짯king, tele짯com짯mu짯ni짯ca짯ti짯ons net짯works, on-pre짯mi짯ses edge, soft짯ware and platforms. 

뼧       Mobi짯leye includes the deve짯lo짯p짯ment and deploy짯ment of advan짯ced dri짯ver-assis짯tance sys짯tems (ADAS) and auto짯no짯mous dri짯ving tech짯no짯lo짯gies and solutions.

뼧       AXG includes CPUs for high per짯for짯mance com짯pu짯ting (HPC) and gra짯phic pro짯cess units (GPUs) tar짯ge짯ted for a ran짯ge of workloads and plat짯forms from gam짯ing and con짯tent crea짯ti짯on to HPC and arti짯fi짯ci짯al intel짯li짯gence (AI) in the data center.

뼧       IFS pro짯vi짯des dif짯fe짯ren짯tia짯ted full stack solu짯ti짯ons inclu짯ding wafer fabri짯ca짯ti짯on, pack짯a짯ging, chip짯let stan짯dard and software.

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       his짯to짯ri짯cal results of ope짯ra짯ti짯ons from dive짯s짯ted businesses;

뼧       results of ope짯ra짯ti짯ons of start-up busi짯nesses that sup짯port our initiatives;

뼧       amounts included within res짯truc짯tu짯ring and other charges;

뼧       employee bene짯fits, com짯pen짯sa짯ti짯on, impair짯ment char짯ges and other expen짯ses not allo짯ca짯ted to the ope짯ra짯ting seg짯ments (begin짯ning the first quar짯ter of 2022, this includes all of our stock-based com짯pen짯sa짯ti짯on); and

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

 

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. The짯se non-GAAP finan짯cial mea짯su짯res are used in our per짯for짯mance-based RSUs and our cash bonus plans.

Start짯ing in the first quar짯ter of 2022, we incre짯men짯tal짯ly exclude 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.

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, as appli짯ca짯ble. 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
NAND memo짯ry business We com짯ple짯ted the first clo짯sing of the dives짯ti짯tu짯re of our NAND memo짯ry busi짯ness to SK hynix on Decem짯ber 29, 2021 and ful짯ly decon짯so짯li짯da짯ted 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, we decon짯so짯li짯da짯ted this busi짯ness in Q1 2022 and manage짯ment does not view the his짯to짯ri짯cal results of the busi짯ness as a part of our core ope짯ra짯ti짯ons. We belie짯ve the짯se adjus짯t짯ments pro짯vi짯de inves짯tors with a useful view, through the eyes of manage짯ment, of our core busi짯ness model and how manage짯ment curr짯ent짯ly eva짯lua짯tes core ope짯ra짯tio짯nal per짯for짯mance. In making the짯se adjus짯t짯ments, we have not made any chan짯ges to our methods for mea짯su짯ring and cal짯cu짯la짯ting reve짯nue or other finan짯cial state짯ment amounts.
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.
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 our core busi짯ness model, how manage짯ment curr짯ent짯ly eva짯lua짯tes core ope짯ra짯tio짯nal per짯for짯mance, and addi짯tio짯nal means to eva짯lua짯te expen짯se trends, inclu짯ding in com짯pa짯ri짯son to other peer companies.
Patent sett짯le짯ment A por짯ti짯on of the char짯ge from our IP sett짯le짯ments repres짯ents a catch-up of cumu짯la짯ti짯ve amor짯tiza짯ti짯on that would have been incur짯red for the right to use the rela짯ted patents in pri짯or peri짯ods. This char짯ge rela짯ted to pri짯or peri짯ods is excluded from our non-GAAP results; amor짯tiza짯ti짯on rela짯ted to the right to use the patents in the cur짯rent and ongo짯ing peri짯ods is included.  We exclude the catch-up char짯ge rela짯ted to pri짯or peri짯ods for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se this adjus짯t짯ment faci짯li짯ta짯tes com짯pa짯ri짯son to past ope짯ra짯ting results and pro짯vi짯des a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting performance.
Opta짯ne inven짯to짯ry impairment Begin짯ning in 2022, we initia짯ted the wind-down of our Intel Opta짯ne memo짯ry business. We exclude the짯se impairm짯ents for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se the짯se char짯ges do not reflect our cur짯rent ope짯ra짯ting per짯for짯mance. This adjus짯t짯ment faci짯li짯ta짯tes a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results.
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 bene짯fit in Q1 2022 rela짯ted to the annul짯led EC fine, a char짯ge in Q1 2021 rela짯ted to the VLSI liti짯ga짯ti짯on, peri짯odic good짯will and asset impairm짯ents, cer짯tain 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 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, rela짯ted impair짯ment char짯ges, and the sale of equi짯ty invest짯ments and other. We exclude the짯se non-ope짯ra짯ting gains and los짯ses for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se it pro짯vi짯des bet짯ter com짯pa짯ra짯bi짯li짯ty bet짯ween peri짯ods. The exclu짯si짯on reflects how manage짯ment eva짯lua짯tes the core ope짯ra짯ti짯ons of the business.
Gains (los짯ses) from divestiture Gains (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 was defer짯red and will be 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.
Tax Reform Adjus짯t짯ments for Tax Reform reflect the impact of a chan짯ge in tax law from 2017 Tax Reform rela짯ted to the capi짯ta짯liza짯ti짯on of R&D costs. We exclude the impacts of this 2022 chan짯ge in US tax tre짯at짯ment of R&D cos짯ts for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res as we belie짯ve the짯se adjus짯t짯ments faci짯li짯ta짯te a bet짯ter eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯son to past ope짯ra짯ting results.
Adjus짯ted free cash flow We refe짯rence a non-GAAP finan짯cial mea짯su짯re of adjus짯ted free cash flow, which is used by manage짯ment when asses짯sing our sources of liqui짯di짯ty, capi짯tal resour짯ces, and qua짯li짯ty of ear짯nings. Adjus짯ted free cash flow is ope짯ra짯ting cash flow adjus짯ted for 1) addi짯ti짯ons to pro짯per짯ty, plant and equip짯ment, net of pro짯ceeds from capi짯tal grants and part짯ner con짯tri짯bu짯ti짯ons, 2) pay짯ments on finan짯ce lea짯ses, and 3) pro짯ceeds from the McA짯fee equi짯ty sale. This non-GAAP finan짯cial mea짯su짯re is hel짯pful in under짯stan짯ding our capi짯tal requi짯re짯ments and sources of liqui짯di짯ty by pro짯vi짯ding an addi짯tio짯nal means to eva짯lua짯te the cash flow trends of our busi짯ness. Sin짯ce the 2017 dives짯ti짯tu짯re, McA짯fee equi짯ty dis짯tri짯bu짯ti짯ons and sales have con짯tri짯bu짯ted to ope짯ra짯ting and free cash flow, and while the McA짯fee equi짯ty sale in Q1 2022 would typi짯cal짯ly be excluded from adjus짯ted free cash flow as an equi짯ty sale, we belie짯ve inclu짯ding the sale pro짯ceeds in adjus짯ted free cash flow faci짯li짯ta짯te a bet짯ter, more con짯sis짯tent com짯pa짯ri짯son to past pre짯sen짯ta짯ti짯ons of liquidity.

 

 

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 US GAAP finan짯cial mea짯su짯re. 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 recon짯ci짯lia짯ti짯ons from US 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 US 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 31, 2022   Dec 25, 2021   Dec 31, 2022   Dec 25, 2021
GAAP net revenue   $     14,042      $     20,528      $     63,054      $     79,024   
NAND memo짯ry business                                (996)                               (4,306)  
Non-GAAP net revenue   $     14,042      $     19,532      $     63,054      $     74,718   
GAAP gross margin   $       5,500      $     11,009      $     26,866      $     43,815   
Acqui짯si짯ti짯on-rela짯ted adjustments              329               335            1,341              1,283   
Share-based com짯pen짯sa짯ti짯on              152                 77               660               347 
Patent sett짯le짯ment                                                    204                    
Opta짯ne inven짯to짯ry impairment              164                                  723                    
NAND memo짯ry business                                (518)                               (1,995)  
Non-GAAP gross margin   $       6,145      $     10,903      $     29,794      $     43,450   
GAAP gross mar짯gin percentage   39.2 %   53.6 %   42.6 %   55.4 %
Acqui짯si짯ti짯on-rela짯ted adjustments   2.3 %   1.6 %   2.1 %   1.6 %
Share-based com짯pen짯sa짯ti짯on   1.1 %   0.4 %   1.0 %   0.4 %
Patent sett짯le짯ment   %   %   0.3 %   %
Opta짯ne inven짯to짯ry impairment   1.2 %   %   1.1 %   %
NAND memo짯ry business   %   0.2 %   %   0.6 %
Non-GAAP gross mar짯gin per짯cen짯ta짯ge1   43.8 %   55.8 %   47.3 %   58.1 %
GAAP R&D and MG&A   $       6,170      $       5,991      $     24,530      $     21,733   
Acqui짯si짯ti짯on-rela짯ted adjustments              (43)                (52)              (185)              (209)  
Share-based com짯pen짯sa짯ti짯on             (584)               (372)            (2,468)            (1,689)  
NAND memo짯ry business                                (164)                                 (626)  
Non-GAAP R&D and MG&A   $       5,543      $       5,403      $     21,877      $     19,209   
GAAP ope짯ra짯ting inco짯me (loss)   $      (1,132)     $       4,989      $       2,334      $     19,456   
Acqui짯si짯ti짯on-rela짯ted adjustments              372               387            1,526              1,492   
Share-based com짯pen짯sa짯ti짯on              736               449            3,128              2,036   
Patent sett짯le짯ment                                                    204                    
Opta짯ne inven짯to짯ry impairment              164                                  723                    
Res짯truc짯tu짯ring and other charges              462                 29                  2            2,626   
NAND memo짯ry business                                (354)                               (1,369)  
Non-GAAP ope짯ra짯ting income   $         602      $       5,500      $       7,917      $     24,241   
GAAP ope짯ra짯ting mar짯gin (loss)   (8.1) %   24.3 %   3.7 %   24.6 %
Acqui짯si짯ti짯on-rela짯ted adjustments   2.6 %   1.9 %   2.4 %   1.9 %
Share-based com짯pen짯sa짯ti짯on   5.2 %   2.2 %   5.0 %   2.6 %
Patent sett짯le짯ment   %   %   0.3 %   %
Opta짯ne inven짯to짯ry impairment   1.2 %   %   1.1 %   %
Res짯truc짯tu짯ring and other charges   3.3 %   0.1 %   %   3.3 %
NAND memo짯ry business   %   (0.5) %   %   (0.1) %
Non-GAAP ope짯ra짯ting mar짯gin1   4.3 %   28.2 %   12.6 %   32.4 %
1  Our recon짯ci짯lia짯ti짯ons of GAAP to non-GAAP pri짯or year gross mar짯gin and ope짯ra짯ting mar짯gin (loss) per짯cen짯ta짯ge reflect the exclu짯si짯on of our NAND memo짯ry busi짯ness from net revenue.
(In Mil짯li짯ons, Except Per Share Amounts)   Dec 31, 2022   Dec 25, 2021   Dec 31, 2022   Dec 25, 2021
GAAP tax rate   17.0 %   11.0 %   (3.2) %   8.5 %
Tax Reform   16.5 %   %   10.6 %   %
Inco짯me tax effects   12.2 %   0.7 %   (3.3) %   0.2 %
Non-GAAP tax rate   45.7 %   11.7 %   4.1 %   8.7 %
GAAP net inco짯me (loss)1   $        (661)     $       4,623      $       8,017      $     19,868   
Acqui짯si짯ti짯on-rela짯ted adjustments              372               387            1,526              1,492   
Share-based com짯pen짯sa짯ti짯on              736               449            3,128              2,035   
Patent sett짯le짯ment                                                    204                    
Opta짯ne inven짯to짯ry impairment              164                                  723                    
Res짯truc짯tu짯ring and other charges              462                 29                  2            2,626   
(Gains) los짯ses on equi짯ty invest짯ments, net             (186)               (359)            (4,268)            (2,729)  
(Gains) los짯ses from divestiture              (26)                               (1,166)                     
NAND memo짯ry business                                (354)                               (1,369)  
Tax Reform             (267)                                 (834)                     
Inco짯me tax effects             (200)                (52)                262             (232)  
Non-GAAP net income   $         394      $       4,723      $       7,594      $     21,691   
         
GAAP ear짯nings (loss) per share봡iluted1   $       (0.16)     $         1.13      $        1.94      $        4.86   
Acqui짯si짯ti짯on-rela짯ted adjustments             0.09                0.09                0.37                0.36   
Share-based com짯pen짯sa짯ti짯on             0.18                0.11                0.76                0.50   
Patent sett짯le짯ment                                                   0.05                      
Opta짯ne inven짯to짯ry impairment             0.04                                   0.18                      
Res짯truc짯tu짯ring and other charges             0.11                0.01                                   0.64   
(Gains) los짯ses on equi짯ty invest짯ments, net            (0.04)              (0.09)              (1.04)              (0.67)  
(Gains) los짯ses from divestiture            (0.01)                                 (0.28)                     
NAND memo짯ry business                               (0.08)                                 (0.33)  
Tax Reform            (0.06)                                 (0.20)                     
Inco짯me tax effects            (0.05)              (0.02)               0.06               (0.06)  
Non-GAAP ear짯nings per share봡iluted   $         0.10      $         1.15      $        1.84      $        5.30   
For the three months and year ended Decem짯ber 31, 2022, the impact of non-con짯trol짯ling inte짯rest to our non-GAAP adjus짯t짯ments is insi짯gni짯fi짯cant and thus is not included in our recon짯ci짯lia짯ti짯on of non-GAAP measures.

 

    Three Months Ended   Twel짯ve Months Ended
(In Mil짯li짯ons)   Dec 31, 2022   Dec 31, 2022
GAAP cash from operations   $                             7,703   $                           15,433
Net addi짯ti짯ons to pro짯per짯ty, plant and equipment                                (4,635)                              (23,724)
Pay짯ments on finan짯ce leases                                      (4)                                  (345)
Sale of equi짯ty investment                                                                      4,561
Adjus짯ted free cash flow   $                             3,064   $                           (4,075)
GAAP cash pro짯vi짯ded by inves짯t짯ing activities   $                           (3,431)   $                          (10,477)
GAAP cash used for finan짯cing activities   $                             2,343   $                             1,361

 

 

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 US GAAP finan짯cial mea짯su짯re. 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 out짯look pre짯pared in accordance with US 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 US 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.

Our non-GAAP finan짯cial mea짯su짯res reflect adjus짯t짯ments based on one or more of the items descri짯bed abo짯ve, as well as the rela짯ted inco짯me tax effects. Begin짯ning in 2023, inco짯me tax effects are cal짯cu짯la짯ted using the same fixed long-term pro짯jec짯ted tax rate across all adjus짯t짯ments. We pro짯ject this long-term non-GAAP tax rate on an annu짯al basis using a five-year non-GAAP finan짯cial pro짯jec짯tion that excludes the inco짯me tax effects of each adjus짯t짯ment. The pro짯jec짯ted non-GAAP tax rate also con짯siders fac짯tors such as our expec짯ted tax struc짯tu짯re, our tax posi짯ti짯ons in various juris짯dic짯tions, and key legis짯la짯ti짯on in signi짯fi짯cant juris짯dic짯tions whe짯re we ope짯ra짯te. This long-term non-GAAP tax rate may be sub짯ject to chan짯ge for a varie짯ty of reasons, inclu짯ding the rapidly evol짯ving glo짯bal tax envi짯ron짯ment, signi짯fi짯cant chan짯ges in our geo짯gra짯phic ear짯nings mix, or chan짯ges to our stra짯tegy or busi짯ness ope짯ra짯ti짯ons. Pro짯s짯pec짯tively, we belie짯ve this approach will faci짯li짯ta짯te com짯pa짯ri짯son of our ope짯ra짯ting results and pro짯vi짯de useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance. As descri짯bed in our expl짯ana짯ti짯on of non-GAAP mea짯su짯res abo짯ve, and con짯sis짯tent with the use of our other non-GAAP adjus짯t짯ments, begin짯ning in 2023 manage짯ment uses this non-GAAP tax rate in mana짯ging inter짯nal short- and long-term ope짯ra짯ting plans and in eva짯lua짯ting our performance.

    Q1 2023 Outlook  
    Appro짯xi짯m짯ate짯ly  
GAAP gross margin   34.1 %  
Acqui짯si짯ti짯on-rela짯ted adjustments   3.3 %  
Share-based com짯pen짯sa짯ti짯on   1.6 %  
Non-GAAP gross margin   39.0 %  
       
GAAP tax rate   (84) %  
Inco짯me tax effects   97 %  
Non-GAAP tax rate   13 %  
       
GAAP ear짯nings (loss) per share봡iluted1   $                  (0.80)    
Acqui짯si짯ti짯on-rela짯ted adjustments                        0.11     
Share-based com짯pen짯sa짯ti짯on                        0.20     
Res짯truc짯tu짯ring and other charges                       (0.03)    
(Gains) los짯ses on equi짯ty invest짯ments, net                       (0.01)    
(Gains) los짯ses from divestiture                       (0.01)    
Inco짯me tax effects                        0.39     
Non-GAAP ear짯nings (loss) per share봡iluted   $                  (0.15)    
The impact of non-con짯trol짯ling inte짯rest to our non-GAAP adjus짯t짯ments in Q1 2023 is expec짯ted to be insi짯gni짯fi짯cant and thus is not included in our recon짯ci짯lia짯ti짯on of non-GAAP mea짯su짯res. Out짯look con짯tem짯pla짯tes the chan짯ge in depre짯cia짯ble life from 5 to 8 years and a fixed long-term pro짯jec짯ted non-GAAP tax rate.

Released Jan 26, 2023 4:01 PM EST