Intel Reports Fourth-Quarter and Full-Year 2023 Financial Results

Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with:

  • the high level of competition and rapid technological change in our industry;
  • the significant long-term and inherently risky investments we are making in R&D and manufacturing facilities that may not realize a favorable return;
  • the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies;
  • our ability to time and scale our capital investments appropriately and successfully secure favorable alternative financing arrangements and government grants;
  • implementing new business strategies and investing in new businesses and technologies;
  • changes in demand for our products;
  • macroeconomic conditions and geopolitical tensions and conflicts, including geopolitical and trade tensions between the US and China, the impacts of Russia's war on Ukraine, tensions and conflict affecting Israel, and rising tensions between the US and Taiwan;
  • the evolving market for products with AI capabilities;
  • our complex global supply chain, including from disruptions, delays, trade tensions and conflicts, or shortages;
  • product defects, errata and other product issues, particularly as we develop next-generation products and implement next-generation manufacturing process technologies;
  • potential security vulnerabilities in our products;
  • increasing and evolving cybersecurity threats and privacy risks;
  • IP risks including related litigation and regulatory proceedings;
  • the need to attract, retain, and motivate key talent;
  • strategic transactions and investments;
  • sales-related risks, including customer concentration and the use of distributors and other third parties;
  • our significantly reduced return of capital in recent years;
  • our debt obligations and our ability to access sources of capital;
  • complex and evolving laws and regulations across many jurisdictions;
  • fluctuations in currency exchange rates;
  • changes in our effective tax rate;
  • catastrophic events;
  • environmental, health, safety, and product regulations;
  • our initiatives and new legal requirements with respect to corporate responsibility matters; and
  • other risks and uncertainties described in this release, our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission (SEC).

Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.

Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this filing. In addition, the forward-looking statements in this release are based on management's expectations as of the date of this release, unless an earlier date is specified, including expectations based on third-party information and projections that management believes to be reputable. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

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

Intel Corporation

Consolidated Statements of Income and Other Information

 

 

 

Three Months Ended

 

Twelve Months Ended

(In Millions, Except Per Share Amounts)

 

Dec 30, 2023

 

Dec 31, 2022

 

Dec 30, 2023

 

Dec 31, 2022

Net revenue

 

$

15,406

 

 

$

14,042

 

 

$

54,228

 

 

$

63,054

 

Cost of sales

 

 

8,359

 

 

 

8,542

 

 

 

32,517

 

 

 

36,188

 

Gross margin

 

 

7,047

 

 

 

5,500

 

 

 

21,711

 

 

 

26,866

 

Research and development

 

 

3,987

 

 

 

4,464

 

 

 

16,046

 

 

 

17,528

 

Marketing, general, and administrative

 

 

1,617

 

 

 

1,706

 

 

 

5,634

 

 

 

7,002

 

Restructuring and other charges

 

 

(1,142

)

 

 

462

 

 

 

(62

)

 

 

2

 

Operating expenses

 

 

4,462

 

 

 

6,632

 

 

 

21,618

 

 

 

24,532

 

Operating income (loss)

 

 

2,585

 

 

 

(1,132

)

 

 

93

 

 

 

2,334

 

Gains (losses) on equity investments, net

 

 

86

 

 

 

186

 

 

 

40

 

 

 

4,268

 

Interest and other, net

 

 

117

 

 

 

150

 

 

 

629

 

 

 

1,166

 

Income (loss) before taxes

 

 

2,788

 

 

 

(796

)

 

 

762

 

 

 

7,768

 

Provision for (benefit from) taxes

 

 

128

 

 

 

(135

)

 

 

(913

)

 

 

(249

)

Net income (loss)

 

 

2,660

 

 

 

(661

)

 

 

1,675

 

 

 

8,017

 

Less: Net income (loss) attributable to non-controlling interests

 

 

(9

)

 

 

3

 

 

 

(14

)

 

 

3

 

Net income (loss) attributable to Intel

 

$

2,669

 

 

$

(664

)

 

$

1,689

 

 

$

8,014

 

Earnings (loss) per share attributable to Intel—basic

 

$

0.63

 

 

$

(0.16

)

 

$

0.40

 

 

$

1.95

 

Earnings (loss) per share attributable to Intel—diluted

 

$

0.63

 

 

$

(0.16

)

 

$

0.40

 

 

$

1.94

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

4,222

 

 

 

4,133

 

 

 

4,190

 

 

 

4,108

 

Diluted

 

 

4,260

 

 

 

4,133

 

 

 

4,212

 

 

 

4,123

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

(In Millions)

 

Dec 30, 2023

 

Dec 31, 2022

 

 

 

 

Earnings per share of common stock information:

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding—basic

 

 

4,222

 

 

 

4,133

 

 

 

 

 

Dilutive effect of employee equity incentive plans

 

 

38

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding—diluted

 

 

4,260

 

 

 

4,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

 

 

 

Employees (in thousands)

 

 

124.8

 

 

 

131.9

 

 

 

 

 

 

Effective January 2023, Intel increased the estimated useful life of certain production machinery and equipment from five years to eight years. When compared to the estimated useful life in place as of the end of 2022, Intel estimates total depreciation expense in 2023 was reduced by $4.2 billion. Intel estimates this change resulted in an approximately $2.5 billion increase to gross margin, a $400 million decrease in R&D expenses and a $1.3 billion decrease in ending inventory values.

 

Intel Corporation

Consolidated Balance Sheets

 

(In Millions, Except Par Value)

 

Dec 30, 2023

 

Dec 31, 2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

7,079

 

 

$

11,144

 

Short-term investments

 

 

17,955

 

 

 

17,194

 

Accounts receivable, net

 

 

3,402

 

 

 

4,133

 

Inventories

 

 

 

 

Raw materials

 

 

1,166

 

 

 

1,517

 

Work in process

 

 

6,203

 

 

 

7,565

 

Finished goods

 

 

3,758

 

 

 

4,142

 

 

 

 

11,127

 

 

 

13,224

 

Other current assets

 

 

3,706

 

 

 

4,712

 

Total current assets

 

 

43,269

 

 

 

50,407

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

96,647

 

 

 

80,860

 

Equity investments

 

 

5,829

 

 

 

5,912

 

Goodwill

 

 

27,591

 

 

 

27,591

 

Identified intangible assets, net

 

 

4,589

 

 

 

6,018

 

Other long-term assets

 

 

13,647

 

 

 

11,315

 

Total assets

 

$

191,572

 

 

$

182,103

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

2,288

 

 

$

4,367

 

Accounts payable

 

 

8,578

 

 

 

9,595

 

Accrued compensation and benefits

 

 

3,655

 

 

 

4,084

 

Income taxes payable

 

 

1,107

 

 

 

2,251

 

Other accrued liabilities

 

 

12,425

 

 

 

11,858

 

Total current liabilities

 

 

28,053

 

 

 

32,155

 

 

 

 

 

 

Debt

 

 

46,978

 

 

 

37,684

 

Other long-term liabilities

 

 

6,576

 

 

 

8,978

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.001 par value, 50 shares authorized; none issued

 

 

 

 

 

 

Common stock, $0.001 par value, 10,000 shares authorized; 4,228 shares issued and outstanding (4,137 issued and outstanding in 2022) and capital in excess of par value

 

 

36,649

 

 

 

31,580

 

Accumulated other comprehensive income (loss)

 

 

(215

)

 

 

(562

)

Retained earnings

 

 

69,156

 

 

 

70,405

 

Total Intel stockholders' equity

 

 

105,590

 

 

 

101,423

 

Non-controlling interests

 

 

4,375

 

 

 

1,863

 

Total stockholders' equity

 

 

109,965

 

 

 

103,286

 

Total liabilities and stockholders’ equity

 

$

191,572

 

 

$

182,103

 

 

Intel Corporation

Consolidated Statements of Cash Flows

 

 

 

Twelve Months Ended

(In Millions)

 

Dec 30, 2023

 

Dec 31, 2022

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

11,144

 

 

$

4,827

 

Cash flows provided by (used for) operating activities:

 

 

 

 

Net income (loss)

 

 

1,675

 

 

 

8,017

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation

 

 

7,847

 

 

 

11,128

 

Share-based compensation

 

 

3,229

 

 

 

3,128

 

Restructuring and other charges

 

 

(424

)

 

 

1,074

 

Amortization of intangibles

 

 

1,755

 

 

 

1,907

 

(Gains) losses on equity investments, net

 

 

(42

)

 

 

(4,254

)

(Gains) losses on divestitures

 

 

 

 

 

(1,059

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

731

 

 

 

5,327

 

Inventories

 

 

2,097

 

 

 

(2,436

)

Accounts payable

 

 

(801

)

 

 

(29

)

Accrued compensation and benefits

 

 

(614

)

 

 

(1,533

)

Prepaid customer supply agreements

 

 

 

 

 

(24

)

Income taxes

 

 

(3,531

)

 

 

(4,535

)

Other assets and liabilities

 

 

(451

)

 

 

(1,278

)

Total adjustments

 

 

9,796

 

 

 

7,416

 

Net cash provided by (used for) operating activities

 

 

11,471

 

 

 

15,433

 

Cash flows provided by (used for) investing activities:

 

 

 

 

Additions to property, plant, and equipment

 

 

(25,750

)

 

 

(24,844

)

Additions to held for sale NAND property, plant, and equipment

 

 

 

 

 

(206

)

Proceeds from capital-related government incentives

 

 

1,011

 

 

 

246

 

Purchases of short-term investments

 

 

(44,414

)

 

 

(43,647

)

Maturities and sales of short-term investments

 

 

44,077

 

 

 

48,730

 

Purchases of equity investments

 

 

(399

)

 

 

(510

)

Sales of equity investments

 

 

472

 

 

 

4,961

 

Proceeds from divestitures

 

 

 

 

 

6,579

 

Other investing

 

 

962

 

 

 

(1,540

)

Net cash used for investing activities

 

 

(24,041

)

 

 

(10,231

)

Cash flows provided by (used for) financing activities:

 

 

 

 

Issuance of commercial paper, net of issuance costs

 

 

 

 

 

3,945

 

Repayment of commercial paper

 

 

(3,944

)

 

 

 

Payments on finance leases

 

 

(96

)

 

 

(345

)

Partner contributions

 

 

1,511

 

 

 

874

 

Proceeds from sales of subsidiary shares

 

 

2,959

 

 

 

1,032

 

Issuance of long-term debt, net of issuance costs

 

 

11,391

 

 

 

6,548

 

Repayment of debt

 

 

(423

)

 

 

(4,984

)

Proceeds from sales of common stock through employee equity incentive plans

 

 

1,042

 

 

 

977

 

Payment of dividends to stockholders

 

 

(3,088

)

 

 

(5,997

)

Other financing

 

 

(847

)

 

 

(935

)

Net cash provided by (used for) financing activities

 

 

8,505

 

 

 

1,115

 

Net increase (decrease) in cash and cash equivalents

 

 

(4,065

)

 

 

6,317

 

Cash and cash equivalents, end of period

 

$

7,079

 

 

$

11,144

 

 

Intel Corporation

Supplemental Operating Segment Results

 

 

 

Three Months Ended

 

Twelve Months Ended

(In Millions)

 

Dec 30, 2023

 

Dec 31, 2022

 

Dec 30, 2023

 

Dec 31, 2022

Net revenue:

 

 

 

 

 

 

 

 

Client Computing

 

 

 

 

 

 

 

 

Desktop

 

$

3,164

 

 

$

2,509

 

 

$

10,166

 

 

$

10,661

 

Notebook

 

 

5,185

 

 

 

3,663

 

 

 

16,990

 

 

 

18,781

 

Other

 

 

495

 

 

 

473

 

 

 

2,102

 

 

 

2,331

 

 

 

 

8,844

 

 

 

6,645

 

 

 

29,258

 

 

 

31,773

 

 

 

 

 

 

 

 

 

 

Data Center and AI

 

 

3,985

 

 

 

4,421

 

 

 

15,521

 

 

 

19,445

 

Network and Edge

 

 

1,471

 

 

 

1,926

 

 

 

5,774

 

 

 

8,409

 

Mobileye

 

 

637

 

 

 

565

 

 

 

2,079

 

 

 

1,869

 

Intel Foundry Services

 

 

291

 

 

 

178

 

 

 

952

 

 

 

469

 

All other

 

 

178

 

 

 

307

 

 

 

644

 

 

 

1,089

 

Total net revenue

 

$

15,406

 

 

$

14,042

 

 

$

54,228

 

 

$

63,054

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

Client Computing

 

$

2,888

 

 

$

524

 

 

$

6,520

 

 

$

5,569

 

Data Center and AI

 

 

78

 

 

 

126

 

 

 

(530

)

 

 

1,300

 

Network and Edge

 

 

(12

)

 

 

126

 

 

 

(482

)

 

 

1,033

 

Mobileye

 

 

242

 

 

 

210

 

 

 

664

 

 

 

690

 

Intel Foundry Services

 

 

(113

)

 

 

(34

)

 

 

(482

)

 

 

(281

)

All other

 

 

(498

)

 

 

(2,084

)

 

 

(5,597

)

 

 

(5,977

)

Total operating income (loss)

 

$

2,585

 

 

$

(1,132

)

 

$

93

 

 

$

2,334

 

 

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