Prepare a Common-Size Balance Sheet using Microsoft Excel based on Intel’s 2023 and 2022 Form 10-K and annual reports. You will use the Financial Analysis Template located in the Week 2 Documents folder. You will complete the data for Fiscal Years 2022, 2021, and 2020 as noted by the template. Reference Exhibit 2.2 on page 49 of your textbook.
Reference website: https://www.sec.gov/edgar
Cover Page – USD ($) shares in Millions, $ in Billions
Cover [Abstract]
Document Type
Document Annual Report
Document Period End Date
Document Transition Report
Entity File Number
Entity Registrant Name
Entity Central Index Key
Company Fiscal Year End Date
Document Fiscal Year Focus
Document Fiscal Period Focus
Amendment Flag
Entity Incorporation, State or Country Code
Entity Tax Identification Number
Entity Address, Address Line One
Entity Address, City or Town
Entity Address, State or Province
City Area Code
Local Phone Number
Title of 12(b) Security
Trading Symbol
Security Exchange Name
Entity Well-known Seasoned Issuer
Entity Voluntary Filers
ICFR Auditor Attestation Flag
Entity Filer Category
Entity Current Reporting Status
Entity Interactive Data Current
Entity Emerging Growth Company
Entity Small Business
Entity Shell Company
Entity Common Stock, Shares Outstanding
Entity Public Float
Documents Incorporated by Reference [Text Block]
Entity Address, Postal Zip Code
12 Months Ended
Dec. 31, 2022
10-K
true
Dec. 31, 2022
false
000-06217
INTEL CORPORATION
0000050863
–12-31
2022
FY
false
DE
94-1672743
2200 Mission College Boulevard,
Santa Clara,
CA
408
765-8080
Common stock, $0.001 par value
INTC
NASDAQ
Yes
No
true
Large Accelerated Filer
Yes
Yes
false
false
false
Portions of the registrant’s proxy statement related to its 2023 Annual Stockholders’ Meeting to be
filed subsequently are incorporated by reference into Part III of this Form 10-K. Except as expressly
incorporated by reference, the registrant’s proxy statement shall not be deemed to be part of this
report.
95054-1549
Jan. 20, 2023
Jul. 01, 2022
4,137
$ 149.2
Audit Information
Audit Information [Abstract]
Auditor Firm ID
Auditor Name
Auditor Location
12 Months Ended
Dec. 31, 2022
42
Ernst & Young LLP
San Jose, California
Consolidated Statements of Income – USD ($) shares in Millions, $ in Millions
Income Statement [Abstract]
Net revenue
Cost of sales
Gross margin
Research and development
Marketing, general and administrative
Restructuring and other charges
Operating expenses
Operating income
Gains (losses) on equity investments, net
Interest and other, net
Income before taxes
Provision for (benefit from) taxes
Net income
Net loss attributable to non-controlling interest
Net income attributable to Intel
Earnings per share attributable to Intel—basic
Earnings per share attributable to Intel—diluted
Weighted average shares of common stock outstanding:
Basic (shares)
Diluted (shares)
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
$ 63,054
36,188
26,866
17,528
7,002
2
24,532
2,334
4,268
1,166
7,768
(249)
8,017
3
$ 8,014
$ 1.95
$ 1.94
$ 79,024
35,209
43,815
15,190
6,543
2,626
24,359
19,456
2,729
(482)
21,703
1,835
19,868
0
$ 19,868
$ 4.89
$ 4.86
$ 77,867
34,255
43,612
13,556
6,180
198
19,934
23,678
1,904
(504)
25,078
4,179
20,899
0
$ 20,899
$ 4.98
$ 4.94
4,108
4,123
4,059
4,090
4,199
4,232
Consolidated Statements of Comprehensive Income – USD ($) $ in Millions
Statement of Comprehensive Income [Abstract]
Net income
Other comprehensive income, net of tax:
Net unrealized holding gains (losses) on derivatives
Actuarial valuation and other pension benefits (expenses), net
Translation adjustments and other
Other comprehensive income (loss)
Total comprehensive income
Less: Comprehensive income attributable to non-controlling interests
Total comprehensive income attributable to Intel
12 Months End
Dec. 31, 2022
$ 8,017
(510)
855
(27)
318
8,335
3
$ 8,332
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
$ 19,868
$ 20,899
(520)
451
(60)
(129)
19,739
0
$ 19,739
677
(183)
35
529
21,428
0
$ 21,428
Consolidated Balance Sheets – USD ($) $ in Millions
Current assets:
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Short-term investments
Accounts receivable, net
Inventories
Assets held for sale
Other current assets
Total current assets
Property, plant and equipment, net
Equity investments
Goodwill
Identified intangible assets, net
Other long-term assets
Total assets
Current liabilities:
Short-term debt
Accounts payable
Accrued compensation and benefits
Income taxes payable
Other accrued liabilities
Total current liabilities
Debt
Income taxes payable, non-current
Deferred income taxes
Other long-term liabilities
Commitments and Contingencies (Note 19)
Stockholders’ equity:
Preferred stock, $0.001 par value, 50 shares authorized; none issued
Common stock, $0.001 par value, 10,000 shares authorized; 4,137 shares issued and outstanding
(4,070 issued and outstanding in 2021) and capital in excess of par value
Accumulated other comprehensive income (loss)
Retained earnings
Total Intel stockholders’ equity
Non-controlling interests
Total stockholders’ equity
Total liabilities and stockholders’ equity
Dec. 31, 2022
Dec. 25, 2021
$ 11,144
17,194
4,133
13,224
45
4,667
50,407
80,860
5,912
27,591
6,018
11,315
182,103
$ 4,827
24,426
9,457
10,776
6,942
2,130
58,558
63,245
6,298
26,963
7,270
6,072
168,406
4,367
9,595
4,084
2,251
11,858
32,155
37,684
3,796
202
4,980
4,591
5,747
4,535
1,076
11,513
27,462
33,510
4,305
2,667
5,071
0
31,580
0
28,006
(562)
70,405
101,423
1,863
103,286
$ 182,103
(880)
68,265
95,391
0
95,391
$ 168,406
Consolidated Balance Sheets (Parenthetical) – $ / shares shares in Millions
Stockholders’ equity:
Preferred stock, par value (in dollars per share)
Preferred stock, shares authorized
Preferred stock, shares issued
Common stock, par value (in dollars per share)
Common stock, shares authorized
Common stock, shares issued
Common stock, shares outstanding
Dec. 31, 2022
Dec. 25, 2021
$ 0.001
50
0
$ 0.001
10,000
4,137
4,137
$ 0.001
50
0
$ 0.001
10,000
4,070
4,070
Consolidated Statements of Cash Flows – USD ($) $ in Millions
Statement of Cash Flows [Abstract]
Cash and cash equivalents, beginning of period
Cash flows provided by (used for) operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
Share-based compensation
Restructuring and other charges
Amortization of intangibles
(Gains) losses on equity investments, net
(Gains) losses on divestitures
Changes in assets and liabilities:
Accounts receivable
Inventories
Accounts payable
Accrued compensation and benefits
Customer deposits and prepaid supply agreements
Income taxes
Other assets and liabilities
Total adjustments
Net cash provided by operating activities
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment
Additions to held for sale NAND property, plant, and equipment
Purchase of short-term investments
Maturities and sales of short-term investments
Purchases of equity investments
Sales of equity investments
Proceeds from divestitures
Other investing
Net cash used for investing activities
Cash flows provided by (used for) financing activities:
Issuance of commercial paper, net of issuance costs
Payments on finance leases
Partner contributions
Proceeds from Mobileye IPO
Issuance of term debt, net of issuance costs
Repayments of Long-term Debt
Proceeds from sales of common stock through employee equity incentive plans
Repurchase of common stock
Payment of dividends to stockholders
Other financing
Net cash provided by (used for) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, end of period
Supplemental disclosures:
Acquisition of property, plant and equipment included in accounts payable and accrued liabilities
Interest, net of capitalized interest
Income taxes, net of refunds
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
$ 4,827
$ 5,865
$ 4,194
8,017
19,868
20,899
11,128
3,128
1,074
1,907
(4,254)
(1,059)
9,953
2,036
2,626
1,839
(1,458)
0
10,482
1,854
198
1,757
(1,757)
(30)
5,327
(2,436)
(29)
(1,533)
(24)
(4,535)
(1,278)
7,416
15,433
(2,674)
(2,339)
1,190
515
(1,583)
(441)
(76)
9,588
29,456
883
(687)
405
348
(181)
1,620
73
14,965
35,864
(24,844)
206
(43,647)
48,730
(510)
4,961
6,579
(1,540)
(10,477)
(18,733)
1,596
(40,554)
35,299
(613)
581
0
1,167
(24,449)
(14,259)
194
(29,239)
22,158
(720)
910
123
(303)
(21,524)
3,945
(345)
874
1,032
6,548
(4,984)
977
0
(5,997)
(689)
0
0
0
0
4,974
(2,500)
1,020
(2,415)
(5,644)
(1,480)
0
0
0
0
10,247
(4,525)
897
(14,229)
(5,568)
509
1,361
6,317
11,144
(6,045)
(1,038)
4,827
(12,669)
1,671
5,865
5,431
1,619
2,973
459
$ 4,282
545
$ 2,263
594
$ 2,436
Consolidated Statements of Stockholders’ Equity – USD ($) shares in Millions, $ in Millions
Beginning Balance, shares at Dec. 28, 2019
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Stock Issued During Period, Shares, Employee Stock Purchase Plans
Repurchase of common stock, shares
Restricted stock unit withholdings, shares
Ending Balance, shares at Dec. 26, 2020
Beginning Balance at Dec. 28, 2019
Components of comprehensive income, net of tax:
Net income
Net income
Other comprehensive income (loss)
Total comprehensive income
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition
Share-based compensation
Reclassifications of Temporary to Permanent Equity
Temporary Equity, Carrying Amount, Period Increase (Decrease)
Repurchase of common stock
Restricted stock unit withholdings
Cash dividends declared
Ending Balance at Dec. 26, 2020
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Stock Issued During Period, Shares, Employee Stock Purchase Plans
Repurchase of common stock, shares
Restricted stock unit withholdings, shares
Ending Balance, shares at Dec. 25, 2021
Components of comprehensive income, net of tax:
Net income
Net income
Other comprehensive income (loss)
Total comprehensive income
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition
Share-based compensation
Repurchase of common stock
Restricted stock unit withholdings
Cash dividends declared
Ending Balance at Dec. 25, 2021
Increase (Decrease) in Stockholders’ Equity [Roll Forward]
Stock Issued During Period, Shares, Employee Stock Purchase Plans
Restricted stock unit withholdings, shares
Ending Balance, shares at Dec. 31, 2022
Components of comprehensive income, net of tax:
Net income
Net income
Other comprehensive income (loss)
Total comprehensive income
Net proceeds received from IPO and partner contributions
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition
Share-based compensation
Restricted stock unit withholdings
Cash dividends declared
Ending Balance at Dec. 31, 2022
Total
Cumulative Effect, Period of Adoption, Adjustment
$ 77,504
20,899
20,899
529
21,428
1,018
1,854
155
(750)
(14,109)
(494)
(5,568)
$ 81,038
4,070
$ 19,868
19,868
(129)
19,739
1,022
2,036
(2,415)
(420)
(5,644)
$ 95,391
4,137
$ 8,014
$ 35
8,017
318
8,335
1,906
1,009
3,128
(486)
(5,997)
$ 103,286
Cumulative Effect, Period of Adoption, Adjusted Balance
$ 81,073
Common Stock and Capital in Excess of Par Value [Member]
4,290
55
(275)
(8)
4,062
$ 25,261
1,018
1,854
155
(750)
(1,628)
(354)
$ 25,556
54
(40)
(6)
4,070
$ 1,022
2,036
(249)
(359)
$ 28,006
79
(12)
4,137
$ 75
1,009
3,099
(609)
$ 31,580
Common Stock and Capital in Excess of Par Value [Member] Cumulative Effect, Period of Adoption,
Adjusted Balance
4,062
$ 25,556
Accumulated Other Comprehensive Income (Loss) [Member]
$ (1,280)
529
(751)
(129)
(880)
318
$ (562)
Accumulated Other Comprehensive Income (Loss) [Member] Cumulative Effect, Period of
Adoption, Adjusted Balance
$ (751)
Retained Earnings [Member]
$ 53,523
20,899
0
(12,481)
(140)
(5,568)
56,233
19,868
(2,166)
(61)
(5,644)
68,265
8,014
8,014
123
(5,997)
$ 70,405
Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment
$ 35
Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjusted Balance
$ 56,268
Non-controlling Interests
$0
3
1,831
29
$ 1,863
Consolidated Statements of Stockholders’ Equity (Parenthetical) – $ / shares
Retained Earnings [Member]
Cash dividends declared per common share (in dollars per share)
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
$ 1.4600
$ 1.3900
Dec. 26, 2020
$ 1.32
Basis of Presentation
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation [Text Block]
12 Months Ended
Dec. 31, 2022
Note 1 : Basis of Presentation We have a 52- or 53-week fiscal year that ends on the last Saturday
in December. Fiscal year 2022 was a 53-week fiscal year. Fiscal years 2021 and 2020 were 52-week
fiscal years. Fiscal 2023 is a 52-week fiscal year. Our Consolidated Financial Statements include the
accounts of Intel and our wholly-owned and majority-owned subsidiaries, which include entities
consolidated under the variable interest model. We have eliminated intercompany accounts and
transactions. We have reclassified certain prior period amounts to conform to current period
presentation. In the first quarter of 2022, we reclassified the presentation of cash paid and
received under our credit support annex agreements with derivative counterparties within our
Consolidated Statements of Cash Flows. These reclassifications better reflect the economic intent
of the credit support annex agreements, and result in changes to amounts previously reported for
net cash provided by (used for) operating, investing , and financing activities . In the first quarter of
2022, we reclassified the presentation of certain marketable debt investments within our
Consolidated Balance Sheets, combining all marketable debt investments with original contractual
maturities of three months or more into short-term investments as they represent the investment
of cash available for current operations. These reclassifications simplify our Consolidated Balance
Sheets and result in changes to amounts previously reported as short-term investments , trading
assets , and other long-term investments . Use of Estimates The preparation of Consolidated
Financial Statements in conformity with US GAAP requires us to make estimates and judgments
that affect the amounts reported in our Consolidated Financial Statements and the accompanying
notes. The actual results that we experience may differ materially from our estimates.
Accounting Policies
Accounting Policies [Abstract]
Accounting Policies [Text Block]
12 Months Ended
Dec. 31, 2022
Note 2 : Accounting Policies Revenue Recognition We recognize net product revenue when we
satisfy performance obligations as evidenced by the transfer of control of our products or services
to customers. Substantially all of our revenue is derived from product sales. Our products often
include a software component, such as firmware, that is highly interdependent and interrelated
with the product and is substantially accounted for as a combined performance obligation. In
accordance with contract terms, the revenue for combined performance obligations and
standalone product sales is recognized at the time of product shipment from our facilities or
delivery to the customer location, as determined by the agreed-upon shipping terms. We measure
revenue based on the amount of consideration we expect to be entitled to in exchange for
products or services. Variable consideration is estimated and reflected as an adjustment to the
transaction price. We determine variable consideration, which consists primarily of various sales
price concessions, by estimating the most likely amount of consideration we expect to receive from
the customer based on historical analysis of customer purchase volumes. Sales rebates earned by
customers are offset against their receivable balances. Rebates earned by customers when they do
not have outstanding receivable balances are recorded within other accrued liabilities . We make
payments to our customers through cooperative advertising programs for marketing activities for
some of our products. We generally record the payment as a reduction in revenue in the period
that the revenue is earned, unless the payment is for a distinct service, which we record as an
expense when the marketing activities occur. Inventories We compute inventory cost on a first-in,
first-out basis. Our process and product development life cycle corresponds with substantive
engineering milestones. These engineering milestones are regularly and consistently applied in
assessing the point at which our activities and associated costs change in nature from R&D to cost
of sales, and when cost of sales can be capitalized as inventory. For a product to be manufactured
in high volumes and sold to our customers under our standard warranty, it must meet our rigorous
technical quality specifications. This milestone is known as PRQ. We have identified PRQ as the
point at which the costs incurred to manufacture our products are included in the valuation of
inventory. A single PRQ has previously valued inventory up to $870 million in the quarter the PRQ
milestone was achieved. Prior to PRQ, costs that do not meet the criteria for R&D are included in
Operating Segments
Segment Reporting [Abstract]
Operating Segments
12 Months Ended
Dec. 31, 2022
Note 3 : Operating Segments We previously announced several organizational changes that would
accelerate the execution and innovation of our company by allowing us to capture growth in both
large traditional markets and high-growth emerging markets. This includes reorganization of our
business units to capture this growth and to provide increased transparency, focus, and
accountability. As a result, we modified our segment reporting in the first quarter of 2022 to align
to the previously announced business reorganization. All prior-period segment data has been
retrospectively adjusted to reflect the way our CODM internally receives information and manages
and monitors our operating segment performance starting in fiscal year 2022. We manage our
business through the following operating segments: ▪ Client Computing Group ▪ Data Center and AI
▪ Network and Edge ▪ Mobileye ▪ Accelerated Computing Systems and Graphics ▪ Intel Foundry
Services We derive a substantial majority of our revenue from our principal products that
incorporate various components and technologies, including a microprocessor and chipset, a standalone SoC, or a multichip package, which are based on Intel architecture. CCG, DCAI, NEX and AXG
are our reportable operating segments. Mobileye, and IFS do not meet the quantitative thresholds
to qualify as reportable operating segments; however, we have elected to disclose the results of
these non-reportable operating segments. AXG revenue includes integrated graphics royalties from
our CCG and NEX operating segments and are recorded as if the sales or transfers were to third
parties at prices that approximate market-based selling prices. When we enter into federal
contracts, they are aligned to the sponsoring operating segment. We have sales and marketing,
manufacturing, engineering, finance, and administration groups. Expenses for these groups are
generally allocated to the operating segments. We have an “all other” category that includes
revenue, expenses, and charges such as: ▪ historical results of operations from divested businesses;
▪ results of operations of start-up businesses that support our initiatives; ▪ amounts included within
restructuring and other charges; ▪ employee benefits, compensation, impairment charges, and
other expenses not allocated to the operating segments (beginning the first quarter of 2022, this
includes all of our stock-based compensation); and ▪ acquisition-related costs, including
amortization and any impairment of acquisition-related intangibles and goodwill. The CODM, who
is our CEO, allocates resources to and assesses the performance of each operating segment using
Earnings Per Share
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]
12 Months Ended
Dec. 31, 2022
Note 5 : Earnings Per Share Years Ended (In Millions, Except Per Share Amounts) Dec 31, 2022 Dec
25, 2021 Dec 26, 2020 Net income $ 8,017 $ 19,868 $ 20,899 Less: Net income attributable to noncontrolling interests 3 — — Net income attributable to Intel $ 8,014 $ 19,868 $ 20,899 Weighted
average shares of common stock outstanding—basic 4,108 4,059 4,199 Dilutive effect of employee
incentive plans 15 31 33 Weighted average shares of common stock outstanding—diluted 4,123
4,090 4,232 Earnings per share attributable to Intel—basic $ 1.95 $ 4.89 $ 4.98 Earnings per share
attributable to Intel—diluted $ 1.94 $ 4.86 $ 4.94 We computed diluted earnings per share of
common stock based on the weighted average number of shares of common stock outstanding
plus potentially dilutive shares of common stock outstanding during the period. Potentially dilutive
shares of common stock from employee incentive plans are determined by applying the treasury
stock method to the assumed exercise of outstanding stock options, the assumed vesting of
outstanding RSUs, and the assumed issuance of common stock under the 2006 ESPP. During 2022,
70 million RSUs and stock options, as calculated on a weighted average basis for the year, were
excluded from the computation of diluted earnings per share in the table above because they
would have been anti-dilutive. These RSUs and options could potentially be included in the diluted
earnings per share calculation in the future if the average market value of the common shares
increases above the exercise price. For 2021 and 2020, all other periods presented, securities which
would have been anti-dilutive were insignificant and have been excluded from the computation of
diluted earnings per share.
Contract Liabilities
Revenue from Contract with Customer [Abstract]
Contract Liabilities
12 Months Ended
Dec. 31, 2022
Note : Contract Liabilities Contract liabilities consist of prepayments received on long-term prepaid
customer supply agreements toward future product delivery and other revenue deferrals from
regular ongoing business activity. Contract liabilities were $577 million$498 million as of December
31, 2022 ($498 million$1.9 billion as of December 25, 2021). The following table shows the changes
in contract liability balances relating to long-term prepaid customer supply agreements during
2022: (In Millions) Prepaid customer supply agreements balance as of December 25, 2021 $ 43
Concession payment (950) Prepaids utilized (633) Prepaid customer supply agreements balance as
of December 31, 2022 $ 20
Other Financial Statement Details
Other Financial Statement Details [Abstract]
Other Financial Statement Details [Text Block]
12 Months Ended
Dec. 31, 2022
Note 6 : Other Financial Statement Details Accounts Receivable In 2022, we began selling certain of
our accounts receivable on a non-recourse basis to third-party financial institutions. We record
these transactions as sales of receivables and present cash proceeds as cash provided by operating
activities in the Consolidated Statements of Cash Flows. Accounts receivable sold under nonrecourse factoring arrangements were $665 million during 2022 and $0 during 2021. After the sale
of our accounts receivable, we will collect payment from the customer and remit it to the thirdparty financial institution. Inventories (In Millions) Dec 31, 2022 Dec 25, 2021 Raw materials $
1,517 $ 1,441 Work in process 7,565 6,656 Finished goods 4,142 2,679 Total inventories $ 13,224 $
10,776 Property, Plant and Equipment (In Millions) Dec 31, 2022 Dec 25, 2021 Land and buildings $
44,808 $ 40,039 Machinery and equipment 92,711 86,955 Construction in progress 36,727 21,545
Total property, plant and equipment, gross 174,246 148,539 Less: Accumulated depreciation
(93,386) (85,294) Total property, plant and equipment, net $ 80,860 $ 63,245 Our depreciable
property, plant and equipment assets are depreciated over the following estimated useful lives:
machinery and equipment, 3 to 5 years; and buildings, 10 to 25 years. Net property, plant and
equipment by country at the end of each period was as follows: (In Millions) Dec 31, 2022 Dec 25,
2021 United States $ 53,681 $ 43,428 Ireland 13,179 7,503 Israel 7,908 7,754 Other countries 6,092
4,560 Total property, plant and equipment, net $ 80,860 $ 63,245 Other Accrued Liabilities Other
accrued liabilities include deferred compensation of $2.4 billion as of December 31, 2022 ($2.8
billion as of December 25, 2021) and collateral received for derivatives under credit support annex
agreements of $0.7 billion as of December 31, 2022 ($1.0 billion as of December 25, 2021). Interest
and Other, Net Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Interest income $
589 $ 144 $ 272 Interest expense (496) (597) (629) Other, net 1,073 (29) (147) Total interest and
other, net $ 1,166 $ (482) $ (504) Interest expense is net of $785 million of interest capitalized in
2022 ($398 million in 2021 and $338 million in 2020). Other, net includes a $1.0 billion gain
recognized in 2022 from the first closing of the divestiture of our NAND memory business.
Restructuring and Other Charges
Restructuring Costs and Asset Impairment Charges [Abstract]
Restructuring and Other Charges [Text Block]
12 Months Ended
Dec. 31, 2022
Note 7 : Restructuring and Other Charges Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec
26, 2020 Employee severance and benefit arrangements $ 1,038 $ 48 $ 124 Litigation charges and
other (1,187) 2,291 67 Asset impairment charges 151 287 7 Total restructuring and other charges $
2 $ 2,626 $ 198 The 2022 Restructuring Program was approved to rebalance our workforce and
operations to create efficiencies and improve our product execution in alignment with our strategy.
Restructuring charges are primarily comprised of employee severance and benefit arrangements
and are recorded as corporate charges in the “all other” category presented in “Note 3: Operating
Segments” within the Notes to Consolidated Financial Statements. As of December 31, 2022, we
have accrued $873 million as a current liability within Accrued compensation and benefits on our
Consolidated Balance Sheets; $165 million in payments or other adjustments were made during the
period. We expect these actions to be substantially completed by the end of 2023, but this is
subject to change. Any changes to the estimates or timing of executing the 2022 Restructuring
Program will be reflected in our future results of operations. Litigation charges and other includes a
$1.2 billion benefit in 2022 from the annulled penalty related to an EC fine that was recorded and
paid in 2009, and a charge of $2.2 billion in 2021 related to the VLSI litigation. These were recorded
as a corporate benefit and charge in the “all other” category presented in “Note 3: Operating
Segments” within the Notes to Consolidated Financial Statements. Refer to “Note 19:
Commitments and Contingencies” within the Notes to Consolidated Financial Statements for
further information on legal proceedings related to the EC fine and the VLSI litigation.
Income Taxes
Income Tax Disclosure [Abstract]
Income Taxes [Text Block]
12 Months Ended
Dec. 31, 2022
Note 8 : Income Taxes Provision for (Benefit From) Taxes Years Ended (In Millions) Dec 31, 2022
Dec 25, 2021 Dec 26, 2020 Income before taxes: US $ (1,161) $ 9,361 $ 15,452 Non-US 8,929
12,342 9,626 Total income before taxes 7,768 21,703 25,078 Provision for (benefit from) taxes:
Current: Federal 4,106 1,304 1,120 State 68 75 46 Non-US 735 1,198 1,244 Total current provision
for (benefit from) taxes 4,909 2,577 2,410 Deferred: Federal (5,806) (863) 1,369 State (40) (25) 25
Non-US 688 146 375 Total deferred provision for (benefit from) taxes (5,158) (742) 1,769 Total
provision for (benefit from) taxes $ (249) $ 1,835 $ 4,179 Effective tax rate (3.2) % 8.5 % 16.7 % The
difference between the tax provision at the statutory federal income tax rate and the tax provision
as a percentage of income before income taxes (effective tax rate) for each period was as follows:
Years Ended Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Statutory federal income tax rate 21.0 % 21.0
% 21.0 % Increase (reduction) in rate resulting from: Non-US income taxed at different rates (13.4)
(5.9) (3.7) Research and development tax credits (11.4) (2.4) (2.1) Foreign derived intangible
income benefit (9.7) (2.2) (1.9) Unrecognized tax benefits and settlements 4.5 1.1 0.6 Restructuring
of certain non-US subsidiaries — (3.4) — Change in permanent reinvestment assertion — — 1.6
Other 5.8 0.3 1.2 Effective tax rate (3.2) % 8.5 % 16.7 % Our effective tax rate decreased in 2022
compared to 2021 , primarily driven by a higher proportion of our income being taxed in non-US
jurisdictions and a change in tax law from 2017 Tax Reform related to the capitalization of R&D
expenses that went into effect in January 2022. Our effective tax rate decreased in 2021 compared
to 2020, primarily driven by one-time tax benefits due to the restructuring of certain non-US
subsidiaries as well as a higher proportion of our income in non-US jurisdictions. As a result of the
restructuring, we established deferred tax assets and released the valuation allowances of certain
foreign deferred tax assets. The majority of these deferred tax assets established in 2021 fully
offset the deferred tax liabilities recognized in 2020 driven by a change in our permanent
reinvestment assertion with respect to undistributed earnings in China, as a result of the divestiture
of our NAND memory business. We derive the effective tax rate benefit attributed to non-US
income taxed at different rates primarily from our operations in Hong Kong, Ireland, Israel, and
Malaysia. The statutory tax rates in these jurisdictions range from 12.5% to 24.0%. We are subject
to reduced tax rates in Israel and Malaysia as long as we conduct certain eligible activities and
Investments
Investments [Abstract]
Investments [Text Block]
12 Months Ended
Dec. 31, 2022
Note 9 : Investments Short-term Investments Short-term investments include marketable debt
investments in corporate debt, government debt, and financial institution instruments.
Government debt includes instruments such as non-US government bonds and US agency
securities. Financial institution instruments include instruments issued or managed by financial
institutions in various forms, such as commercial paper, fixed- and floating-rate bonds, money
market fund deposits, and time deposits. As of December 31, 2022 and December 25, 2021,
substantially all time deposits were issued by institutions outside the US. For certain of our
marketable debt investments, we economically hedge market risks at inception with a related
derivative instrument or the marketable debt investment itself is used to economically hedge
currency exchange rate risk from remeasurement. These hedged investments are reported at fair
value with gains or losses from the investments and the related derivative instruments recorded in
interest and other, net . The fair value of our hedged investments was $16.2 billion as of December
31, 2022 ($21.5 billion as of December 25, 2021). For hedged investments still held at the reporting
date, we recorded net losses of $748 million in 2022 (net losses of $606 million in 2021 and net
gains of $694 million in 2020). Net gains on the related derivatives were $752 million in 2022 (net
gains of $609 million in 2021 and net losses of $667 million in 2020). Our remaining unhedged
marketable debt investments are reported at fair value, with unrealized gains or losses, net of tax,
recorded in accumulated other comprehensive income (loss) . The adjusted cost of our unhedged
investments was $10.2 billion as of December 31, 2022 ($5.0 billion as of December 25, 2021),
which approximated the fair value for these periods. The fair value of marketable debt
investments, by contractual maturity, as of December 31, 2022, was as follows: (In Millions) Fair
Value Due in 1 year or less $ 12,680 Due in 1–2 years 1,844 Due in 2–5 years 4,139 Due after 5
years 665 Instruments not due at a single maturity date 7,095 Total $ 26,423 Equity Investments (In
Millions) Dec 31, 2022 Dec 25, 2021 Marketable equity securities 1 $ 1,341 $ 2,171 Nonmarketable equity securities 4,561 4,111 Equity method investments 10 16 Total $ 5,912 $ 6,298 1
Over 90% of our marketable equity securities are subject to trading-volume or market-based
restrictions, which limit the number of shares we may sell in a specified period of time, impacting
our ability to liquidate these investments. The trading volume restrictions generally apply for as
Acquisitions & Divestitures
Business Combinations [Abstract]
Acquisitions and Divestitures [Text Block]
12 Months Ended
Dec. 31, 2022
Note 10 : Acquisitions and Divestitures Acquisitions We completed eight acquisitions in 2022 and
four acquisitions in 2021, all of which qualified as business combinations. The consideration for the
acquisitions in 2022 and 2021 primarily consisted of cash and was substantially all allocated to
goodwill and identified intangible assets. For information on the assignment of goodwill to our
operating segments, see “Note 11: Goodwill,” and for information on the classification of intangible
assets, see “Note 12: Identified Intangible Assets” within the Notes to Consolidated Financial
Statements. Acquisition of Tower Semiconductor During the first quarter of 2022 , we entered into
a definitive agreement to acquire Tower Semiconductor Ltd. (Tower) in a cash-for-stock
transaction. Tower is a leading foundry for analog semiconductor solutions. The acquisition is
expected to advance our IDM 2.0 strategy by accelerating our global end-to-end systems foundry
business. Upon completion of the acquisition, each issued and outstanding ordinary share of Tower
will be converted into the right to receive $53 per share in cash, representing a total enterprise
value of approximately $5.4 billion as of the agreement date. While we continue to work to close
within the first quarter of 2023, the transaction may close in the first half of 2023, subject to
certain regulatory approvals and customary closing conditions. If the agreement is terminated
under certain circumstances involving the failure to obtain required regulatory approvals, we will
be obligated to pay Tower a termination fee of $353 million. Tower will be included in our IFS
operating segment. Divestitures NAND Memory Business In October 2020, we signed an agreement
with SK hynix Inc. (SK hynix) to divest our NAND memory business for $9.0 billion in cash. The
NAND memory business includes our NAND memory fabrication facility in Dalian, China and certain
related equipment and tangible assets (the Fab Assets), our NAND SSD business (the NAND SSD
Business), and our NAND memory technology and manufacturing business (the NAND OpCo
Business). The transaction will be completed in two closings. The first closing was completed on
December 29, 2021. At first closing, SK hynix paid $7.0 billion of consideration, with the remaining
$2.0 billion to be received at the second closing of the transaction, expected to be no earlier than
March 2025. In connection with the first closing, we recognized a pre-tax gain of $1.0 billion within
interest and other, net , and tax expense of $495 million. Based on our ongoing obligation under
the NAND wafer manufacturing and sale agreement, $583 million of the first closing consideration
Goodwill
Business Combination, Goodwill [Abstract]
Goodwill [Text Block]
12 Months Ended
Dec. 31, 2022
Note 11 : Goodwill (In Millions) Dec 25, 2021 Acquisitions Other Dec 31, 2022 Client Computing $
4,237 $ 17 $ — $ 4,254 Data Center and AI 8,595 418 — 9,013 Network and Edge 2,774 35 — 2,809
Mobileye 10,928 — (9) 10,919 Accelerated Computing Systems and Graphics 429 167 — 596 All
other — — — — Total $ 26,963 $ 637 $ (9) $ 27,591 (In Millions) Dec 26, 2020 Acquisitions Other
Dec 25, 2021 Client Computing $ 4,164 $ 73 $ — $ 4,237 Data Center and AI 8,476 85 34 8,595
Network and Edge 2,774 — — 2,774 Mobileye 10,928 — — 10,928 Accelerated Computing Systems
and Graphics 391 38 — 429 All other 238 — (238) — Total $ 26,971 $ 196 $ (204) $ 26,963 As
described in ” Note 3: Operating Segments” within the Notes to Consolidated Financial Statements,
we modified our segment reporting in the first quarter of 2022 to align to our previously
announced business reorganization, and have retrospectively adjusted all prior-period amounts in
our goodwill footnote to reflect the changes in our operating segments. We reallocated goodwill
among our affected reporting units based on the relative fair value of our new operating segments.
We performed a quantitative impairment assessment for each of our reporting units immediately
before and after our business reorganization, concluding that goodwill was not impaired. Goodwill
reallocated was as follows: Dec 25, 2021 Transfers Out Transfers In Dec 25, 2021 Client Computing
$ 4,433 $ (275) $ 79 $ 4,237 Data Center Group 7,355 (7,355) — — Data Center and AI — — 8,595
8,595 Internet of Things Group 1,591 (1,591) — — Network and Edge — — 2,774 2,774 Mobileye
10,928 — — 10,928 Accelerated Computing Systems and Graphics — — 429 429 Programmable
Solutions Group 2,656 (2,656) — — Total $ 26,963 $ (11,877) $ 11,877 $ 26,963 During the second
quarter of 2021, we recognized a goodwill impairment loss of $238 million related to two nonstrategic businesses that we exited, recorded within our all other
Identified Intangible Assets
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Identified Intangible Assets [Text Block]
12 Months Ended
Dec. 31, 2022
Note 12 : Identified Intangible Assets December 31, 2022 December 25, 2021 (In Millions) Gross
Assets Accumulated Amortization Net Gross Assets Accumulated Amortization Net Developed
technology $ 10,964 $ (7,216) $ 3,748 $ 11,102 $ (6,026) $ 5,076 Customer relationships and
brands 1,986 (1,114) 872 2,110 (1,063) 1,047 Licensed technology and patents 3,219 (1,821) 1,398
2,893 (1,746) 1,147 Total identified intangible assets $ 16,169 $ (10,151) $ 6,018 $ 16,105 $ (8,835)
$ 7,270 During 2022 , we entered into and/or renewed several licensed technology arrangements
totaling $634 million , which are subject to amortization. Amortization expenses recorded for
identified intangible assets in the Consolidated Statements of Income for each period and the
weighted average useful life were as follows: Years Ended (In Millions) Location Dec 31, 2022 Dec
25, 2021 Dec 26, 2020 Weighted Average Useful Life 1 Developed technology Cost of sales $ 1,341
$ 1,283 $ 1,211 9 years Customer relationships and brands Marketing, general and administrative
185 209 205 12 years Licensed technology and patents Cost of sales 381 347 341 12 years Total
amortization expenses $ 1,907 $ 1,839 $ 1,757 1 Represents weighted average useful life in years
of intangible assets as of December 31, 2022. We expect future amortization expense for the next
five years and thereafter to be as follows: (In Millions) 2023 2024 2025 2026 2027 Thereafter Total
Future amortization expenses $ 1,730 $ 1,297 $ 883 $ 680 $ 511 $ 917 $ 6,018
Borrowings
Debt Disclosure [Abstract]
Borrowings [Text Block]
12 Months Ended
Dec. 25, 2021
Note 13 : Borrowings Short-Term Debt As of December 31, 2022, short-term debt was $4.4 billion,
composed of $423 million of the current portion of long-term debt and $3.9 billion of commercial
paper. As of December 25, 2021, short-term debt was $4.6 billion, primarily composed of our
current portion of long-term debt. The current portion of long-term debt includes debt classified as
short term based on time remaining until maturity. We have an ongoing authorization from our
Board of Directors to borrow up to $10.0 billion under our commercial paper program. As of
December 31, 2022 and December 25, 2021, we had $3.9 billion and $0 commercial paper
outstanding, respectively, with maturities generally less than six months. The weighted-average
interest rate of the commercial paper was 4.39% as of December 31, 2022. Long-Term Debt Dec
31, 2022 Dec 25, 2021 (In Millions) Effective Interest Rate Amount Amount Floating-rate senior
note: Three-month LIBOR plus 0.35%, due May 2022 —% $ — $ 800 Fixed-rate senior notes: 2.35%,
due May 2022 —% — 750 3.10%, due July 2022 —% — 1,000 4.00%, due December 2022 —% —
398 2.70%, due December 2022 —% — 1,500 4.10%, due November 2023 —% — 400 2.88%, due
May 2024 2.34% 1,250 1,250 2.70%, due June 2024 2.14% 600 600 3.40%, due March 2025 3.44%
1,500 1,500 3.70%, due July 2025 3.83% 2,250 2,250 2.60%, due May 2026 2.25% 1,000 1,000
3.75%, due March 2027 3.78% 1,000 1,000 3.15%, due May 2027 2.84% 1,000 1,000 3.75%, due
August 2027 3.80% 1,250 — 1.60%, due August 2028 1.67% 1,000 1,000 4.00%, due August 2029
4.05% 850 — 2.45%, due November 2029 2.38% 2,000 2,000 3.90%, due March 2030 3.92% 1,500
1,500 2.00%, due August 2031 2.02% 1,250 1,250 4.15%, due August 2032 4.17% 1,250 — 4.00%,
due December 2032 2.20% 750 750 4.60%, due March 2040 4.59% 750 750 2.80%, due August
2041 2.81% 750 750 4.80%, due October 2041 3.70% 802 802 4.25%, due December 2042 2.32%
567 567 4.90%, due July 2045 3.80% 772 772 4.10%, due May 2046 3.03% 1,250 1,250 4.10%, due
May 2047 3.00% 1,000 1,000 4.10%, due August 2047 2.54% 640 640 3.73%, due December 2047
3.31% 1,967 1,967 3.25%, due November 2049 3.19% 2,000 2,000 4.75%, due March 2050 4.73%
2,250 2,250 3.05%, due August 2051 3.06% 1,250 1,250 4.90%, due August 2052 4.88% 1,750 —
3.10%, due February 2060 3.10% 1,000 1,000 4.95%, due March 2060 4.98% 1,000 1,000 3.20%,
due August 2061 3.20% 750 750 5.05%, due August 2062 5.03% 900 — Long-Term Debt Dec 31,
2022 Dec 25, 2021 (In Millions) Effective Interest Rate Amount Amount Oregon and Arizona bonds:
Fair Value
Fair Value Disclosures [Abstract]
Fair Value [Text Block]
12 Months Ended
Dec. 31, 2022
Note 14 : Fair Value Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
December 31, 2022 December 25, 2021 Fair Value Measured and Recorded at Reporting Date
Using Total Fair Value Measured and Total (In Millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level
3 Assets Cash equivalents: Corporate debt $ — $ 856 $ — $ 856 $ — $ 65 $ — $ 65 Financial
institution instruments 1 6,899 1,474 — 8,373 1,216 763 — 1,979 Reverse repurchase — 1,301 —
1,301 — 1,595 — 1,595 Short-term investments: Corporate debt — 5,381 — 5,381 — 6,367 —
6,367 Financial institution instruments 1 196 4,729 — 4,925 154 5,162 — 5,316 Government debt 2
48 6,840 — 6,888 50 12,693 — 12,743 Other current assets: Derivative assets — 1,264 — 1,264 80
576 — 656 Loans receivable 3 — 53 — 53 — 152 — 152 Marketable equity securities 4 1,341 — —
1,341 1,854 317 — 2,171 Other long-term assets: Derivative assets — 10 — 10 — 772 7 779 Loans
receivable 3 — — — — — 57 — 57 Total assets measured and recorded at fair value $ 8,484 $
21,908 $ — $ 30,392 $ 3,354 $ 28,519 $ 7 $ 31,880 Liabilities Other accrued liabilities: Derivative
liabilities $ 111 $ 485 $ 89 $ 685 $ 4 $ 516 $ — $ 520 Other long-term liabilities: Derivative
liabilities — 699 — 699 — 9 — 9 Total liabilities measured and recorded at fair value $ 111 $ 1,184
$ 89 $ 1,384 $ 4 $ 525 $ — $ 529 1. Level 1 investments consist of money market funds recorded at
Net Asset Value. Level 2 investments consist primarily of commercial paper, certificates of deposit,
time deposits, and notes and bonds issued by financial institutions 2. Level 1 investments consist
primarily of US Treasury securities. Level 2 investments consist primarily of non-US government
debt. 3. The fair value of our loans receivable for which we elected the fair value option did not
significantly differ from the contractual principal balance. 4. Level 2 investments consist of
marketable equity securities subject to security-specific restrictions for which a fair value
adjustment was recorded. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis
Our non-marketable equity securities, equity method investments, and certain non-financial assets,
such as intangible assets and property, plant and equipment, are recorded at fair value only if an
impairment or observable price adjustment is recognized in the current period. If an impairment or
observable price adjustment is recognized on our non-marketable equity securities during the
period, we classify these assets as Level 3. We classify non-marketable equity securities and nonmarketable equity method investments as Level 3. Impairments recognized on these investments
Other Comprehensive Income (Loss)
Equity [Abstract]
Other Comprehensive Income (Loss) [Text Block]
12 Months Ended
Dec. 31, 2022
Note 15 : Other Comprehensive Income (Loss) The changes in accumulated other comprehensive
income (loss) by component and related tax effects for each period were as follows: (In Millions)
Unrealized Holding Gains (Losses) on Derivatives Actuarial Valuation and Other Pension Expenses
Translation Adjustments and Other Total December 28, 2019 $ 54 $ (1,382) $ 48 $ (1,280) Other
comprehensive income (loss) before reclassifications 806 (323) 55 538 Amounts reclassified out of
accumulated other comprehensive income (loss) (8) 89 (11) 70 Tax effects (121) 51 (9) (79) Other
comprehensive income (loss) 677 (183) 35 529 December 26, 2020 731 (1,565) 83 (751) Other
comprehensive income (loss) before reclassifications (434) 476 (58) (16) Amounts reclassified out
of accumulated other comprehensive income (loss) (226) 101 (19) (144) Tax effects 140 (126) 17 31
Other comprehensive income (loss) (520) 451 (60) (129) December 25, 2021 211 (1,114) 23 (880)
Other comprehensive income (loss) before reclassifications (910) 923 (28) (15) Amounts
reclassified out of accumulated other comprehensive income (loss) 410 82 (6) 486 Tax effects (10)
(150) 7 (153) Other comprehensive income (loss) (510) 855 (27) 318 December 31, 2022 $ (299) $
(259) $ (4) $ (562)
Derivative Financial Instruments
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments [Text Block]
12 Months Ended
Dec. 31, 2022
Note 16 : Derivative Financial Instruments Volume of Derivative Activity Total gross notional
amounts for outstanding derivatives (recorded at fair value) at the end of each period were as
follows: (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Foreign currency contracts $ 31,603 $
38,024 $ 31,209 Interest rate contracts 16,011 15,209 14,461 Other 2,094 2,517 2,026 Total $
49,708 $ 55,750 $ 47,696 During 2022 and 2021, we did not enter into any new pay-variable,
receive-fixed interest rate swaps to hedge against changes in the fair value attributable to
benchmark interest rates related to our outstanding senior notes. The total notional amount of
outstanding pay-variable, receive-fixed interest rate swaps was $12.0 billion as of December 31,
2022, and $12.0 billion as of December 25, 2021. Fair Value of Derivative Instruments in the
Consolidated Balance Sheets December 31, 2022 December 25, 2021 (In Millions) Assets 1
Liabilities 2 Assets 1 Liabilities 2 Derivatives designated as hedging instruments: Foreign currency
contracts 3 $ 142 $ 290 $ 80 $ 163 Interest rate contracts — 777 774 — Total derivatives
designated as hedging instruments 142 1,067 854 163 Derivatives not designated as hedging
instruments: Foreign currency contracts 3 866 194 475 297 Interest rate contracts 266 12 26 65
Equity contracts — 111 80 4 Total derivatives not designated as hedging instruments 1,132 317 581
366 Total derivatives $ 1,274 $ 1,384 $ 1,435 $ 529 1 Derivative assets are recorded as other
assets, current and long-term. 2 Derivative liabilities are recorded as other liabilities, current and
long-term. 3 The majority of these instruments mature within 12 months. Amounts Offset in the
Consolidated Balance Sheets Agreements subject to master netting arrangements with various
counterparties, and cash and non-cash collateral posted under such agreements at the end of each
period were as follows: December 31, 2022 Gross Amounts Not Offset in the Balance Sheet (In
Millions) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts
Presented in the Balance Sheet Financial Instruments Cash and Non-Cash Collateral Received or
Pledged Net Amount Assets: Derivative assets subject to master netting arrangements $ 1,231 $ —
$ 1,231 $ (546) $ (682) $ 3 Reverse repurchase agreements 1,701 — 1,701 — (1,701) — Total
assets 2,932 — 2,932 (546) (2,383) 3 Liabilities: Derivative liabilities subject to master netting
arrangements 1,337 — 1,337 (546) (712) 79 Total liabilities $ 1,337 $ — $ 1,337 $ (546) $ (712) $
79 December 25, 2021 Gross Amounts Not Offset in the Balance Sheet (In Millions) Gross Amounts
Retirement Benefit Plans
Retirement Benefits [Abstract]
Retirement Benefit Plans [Text Block]
12 Months Ended
Dec. 31, 2022
Note 17 : Retirement Benefit Plans Defined Contribution Plans We provide tax-qualified defined
contribution plans for the benefit of eligible employees, former employees, and retirees in the US
and certain other countries. The plans are designed to provide employees with an accumulation of
funds for retirement on a tax-deferred basis. For the benefit of eligible US employees, we also
provide an unfunded non-tax-qualified supplemental deferred compensation plan for certain highly
compensated employees. We expensed $489 million in 2022, $444 million in 2021 and $398 million
in 2020 for matching contributions based on the amount of employee contributions under the US
qualified defined contribution and non-qualified deferred compensation plans. US Retiree Medical
Plan Upon retirement, we provide certain benefits to eligible US employees who were hired prior
to 2014 under the US Retiree Medical Plan. The benefits can be used to pay all or a portion of the
cost to purchase eligible coverage in a medical plan. As of December 31, 2022 and December 25,
2021, the projected benefit obligation was $527 million and $682 million, which used the discount
rates of 5.6% and 2.8%. The December 31, 2022 and December 25, 2021 corresponding fair value
of plan assets was $501 million and $669 million. The investment strategy for US Retiree Medical
Plan assets is to invest primarily in liquid assets, due to the level of expected future benefit
payments. The assets are invested in tax-aware global equity and fixed-income long credit
portfolios. Both portfolios are actively managed by external managers. The tax-aware global equity
portfolio is composed of a diversified mix of equities in developed countries. The tax-aware fixedincome long credit portfolio is composed of domestic securities. The allocation to each asset class
will fluctuate with market conditions, such as volatility and liquidity concerns, and will typically be
rebalanced when outside the target ranges, which are 55% equity and 45% fixed-income
investments. As of December 31, 2022, the majority of the US Retiree Medical Plan assets were
invested in exchange-traded equity securities and were measured at fair value using Level 1 inputs.
The remaining US Retiree Medical Plan assets were invested in fixed-income investments and were
measured at fair value using Level 2 inputs. As of December 31, 2022, the estimated benefit
payments for this plan over the next 10 years are as follows: (In Millions) 2023 2024 2025 2026
2027 2028-2032 Postretirement medical benefits $ 40 $ 41 $ 41 $ 43 $ 44 $ 222 Pension Benefit
Plans We provide defined-benefit pension plans in certain countries, most significantly the US,
Employee Equity Incentive Plans
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]
Employee Equity Incentive Plans [Text Block]
12 Months Ended
Dec. 31, 2022
Note 18 : Employee Equity Incentive Plans Our equity incentive plans are broad-based, long-term
programs intended to attract and retain talented employees and align stockholder and employee
interests. Our plans include our 2006 Plan and our 2006 ESPP. Under the 2006 Plan, 946 million
shares of common stock have been authorized for issuance as equity awards to employees and nonemployee directors through June 2023. As of December 31, 2022, 119 million shares of common
stock remained available for future grants. Under the 2006 Plan, we may grant RSUs and stock
options. We grant RSUs with a service condition as well as RSUs with a market condition,
performance condition, and a service condition, which we call PSUs. PSUs are granted to a group of
senior officers and employees. For PSUs granted in 2022, the number of shares of our common
stock to be received at vesting at the end of the three-year performance period will range from 0%
to 200% of the target grant amount and will be determined based on our performance relative to
annual targets for each year in the performance period with respect to a revenue growth metric,
weighted 60%, and a cash flow from operations metric, weighted 40%. The results are then
averaged at the end of the performance period. Additionally, an adjustment to the performance
goals aggregate achievement percentage is based on the TSR of our common stock measured
against the benchmark TSR of the S&P 500 Index over a three-year period and revenue CAGR for
the three-year performance period. TSR is a measure of stock price appreciation plus any dividends
paid in this performance period. As of December 31, 2022, 15 million PSUs were outstanding. PSUs
vest three years from the grant date. Other RSU awards and option awards generally vest over four
years from the grant date. Share-Based Compensation Share-based compensation recognized in
2022 was $3.1 billion ($2.0 billion in 2021 and $1.9 billion in 2020). During 2022, the tax benefit
that we realized for the tax deduction from share-based awards totaled $478 million ($377 million
in 2021 and $380 million in 2020). We estimate the fair value of RSUs and PSUs with a service
condition or performance condition using the value of our common stock on the date of grant,
reduced by the present value of dividends expected to be paid on our shares of common stock
prior to vesting. We estimate the fair value of PSUs with a market condition using a Monte Carlo
simulation model as of the date of grant using historical volatility. Restricted Stock Units and
Performance Stock Units Weighted average assumptions used in estimating grant values were as
Commitments and Contingencies
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]
12 Months Ended
Dec. 31, 2022
Note 19 : Commitments and Contingencies Leases We recognized operating leased assets in other
long-term assets Operating lease expense was $729 million in 2022 ($798 million in 2021 and $416
million in 2020), including $551 million in variable lease expense in 2022 ($620 million in 2021 and
$237 million in 2020). In 2021 and 2022, we signed finance leases for supplier capacity extending
over approximately 8 years. The leases will commence upon start of supplier production expected
in 2023 and 2024. Prepayments of $430 million were recognized in property, plant and equipment
as of December 31, 2022. Discounted and undiscounted lease payments under non-cancelable
leases as of December 31, 2022 excluding non-lease components, were as follows: (In Millions)
2023 2024 2025 2026 2027 Thereafter Total Operating lease payments $ 179 $ 107 $ 72 $ 34 $ 26 $
28 $ 446 Finance lease payments $ 682 $ 122 $ 5 $ — $ — $ — $ 809 Present value of lease
payments $ 1,218 Commitments Commitments for capital expenditures totaled $31.0 billion as of
December 31, 2022, ($27.0 billion as of December 25, 2021) a majority of which will be due within
the next 12 months. Other purchase obligations and commitments totaled approximately $10.7
billion as of December 31, 2022 (approximately $12.4 billion as of December 25, 2021). Other
purchase obligations and commitments include payments due under supply agreements and
various types of licenses and agreements to purchase goods or services. Contractual obligations for
purchases of goods or services relate to agreements that are enforceable and legally binding and
that specify all significant terms, including fixed or minimum quantities; fixed, minimum, or variable
price provisions; and the approximate timing of the transaction. Other purchase obligations reflect
the non-cancelable portion or the minimum cancellation fee under the agreement. Other
commitments include a $5.4 billion commitment associated with our pending acquisition of Tower
and our unrecognized commitment to fund our respective share of the total construction costs of
$29.0 billion of Arizona Fab in connection with the definitive agreement entered into with
Brookfield. Our remaining unfunded contribution was $13.5 billion as of December 31, 2022. Legal
Proceedings We are regularly party to various ongoing claims, litigation, and other proceedings,
including those noted in this section. We have accrued a charge of $2.2 billion related to litigation
involving VLSI, described below. Excluding the VLSI claims described below, management at present
believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not
Non-Controlling Interests
Noncontrolling Interest [Abstract]
Non-Controlling Interests
12 Months Ended
Dec. 31, 2022
Note 4 : Non-Controlling Interests Semiconductor Co-Investment Program In the fourth quarter of
2022, we closed a transaction with Brookfield Asset Management (Brookfield) resulting in the
formation of Arizona Fab LLC (Arizona Fab), a VIE for which we and Brookfield own 51% and 49%,
respectively. Because we are the primary beneficiary of the VIE, we fully consolidate the results of
Arizona Fab into our consolidated financial statements. Generally, contributions will be made to,
and distributions will be received from, Arizona Fab based on both parties’ proportional ownership.
We will be the sole operator and majority owner of two new chip factories that will be constructed
by Arizona Fab, and we will have the right to purchase 100% of the related factory output. Once
production commences, we will be required to operate Arizona Fab at minimum production levels
measured in wafer starts per week and will be required to limit excess inventory held on site or we
will be subject to certain penalties. We have an unrecognized commitment to fund our respective
share of the total construction costs of $29.0 billion . Refer to “Note 19: Commitments and
Contingencies” within the Notes to Consolidated Financial Statements. As of December 31, 2022,
substantially all of the assets of Arizona Fab consisted of property, plant and equipment. The assets
held by Arizona Fab, which can be used only to settle obligations of the VIE and are not available to
us, were $1.8 billion as of December 31, 2022. Non-controlling interest in Arizona Fab was $874
million as of December 31, 2022 and there was no net income (loss) attributable to Arizona Fab’s
non-controlling interest in 2022. Mobileye In the fourth quarter of 2022, Mobileye completed its
IPO and certain other equity financing transactions that resulted in net proceeds of $1.0 billion. As
of December 31, 2022, Intel held approximately 94% of the outstanding equity interest in
Mobileye. Non-controlling interest in Mobileye was $989 million as of December 31, 2022. Net
Income attributable to Mobileye’s non-controlling interest was $3 million in 2022.
Accounting Policies (Policies)
Accounting Policies [Abstract]
Revenue Recognition [Policy Text Block]
Inventories [Policy Text Block]
Property, Plant and Equipment [Policy Text Block]
Identified Intangible Assets [Policy Text Block]
Goodwill [Policy Text Block]
Government Assistance [Policy Text Block]
Fair Value [Policy Text Block]
Cash Equivalents [Policy Text Block]
Debt Investments and Equity Investments [Policy Text Block]
Derivative Financial Instruments [Policy Text Block]
Credit Risk [Policy Text Block]
Variable Interest Entities [Policy Text Block]
Business Combinations Policy [Policy Text Block]
Employee Equity Incentive Plans [Policy Text Block]
Income Taxes [Policy Text Block]
Lessee [Policy Text Block]
Loss Contingencies [Policy Text Block]
12 Months Ended
Dec. 31, 2022
Revenue Recognition We recognize net product revenue when we satisfy performance obligations
as evidenced by the transfer of control of our products or services to customers. Substantially all of
our revenue is derived from product sales. Our products often include a software component, such
as firmware, that is highly interdependent and interrelated with the product and is substantially
accounted for as a combined performance obligation. In accordance with contract terms, the
revenue for combined performance obligations and standalone product sales is recognized at the
time of product shipment from our facilities or delivery to the customer location, as determined by
the agreed-upon shipping terms. We measure revenue based on the amount of consideration we
expect to be entitled to in exchange for products or services. Variable consideration is estimated
and reflected as an adjustment to the transaction price. We determine variable consideration,
which consists primarily of various sales price concessions, by estimating the most likely amount of
consideration we expect to receive from the customer based on historical analysis of customer
purchase volumes. Sales rebates earned by customers are offset against their receivable balances.
Rebates earned by customers when they do not have outstanding receivable balances are recorded
within other accrued liabilities . We make payments to our customers through cooperative
advertising programs for marketing activities for some of our products. We generally record the
payment as a reduction in revenue in the period that the revenue is earned, unless the payment is
for a distinct service, which we record as an expense when the marketing activities occur.
Inventories We compute inventory cost on a first-in, first-out basis. Our process and product
development life cycle corresponds with substantive engineering milestones. These engineering
milestones are regularly and consistently applied in assessing the point at which our activities and
associated costs change in nature from R&D to cost of sales, and when cost of sales can be
capitalized as inventory. For a product to be manufactured in high volumes and sold to our
customers under our standard warranty, it must meet our rigorous technical quality specifications.
This milestone is known as PRQ. We have identified PRQ as the point at which the costs incurred to
manufacture our products are included in the valuation of inventory. A single PRQ has previously
valued inventory up to $870 million in the quarter the PRQ milestone was achieved. Prior to PRQ,
costs that do not meet the criteria for R&D are included in cost of sales in the period incurred. The
valuation of inventory includes determining which fixed production overhead costs can be included
in inventory based on the normal capacity of our manufacturing and assembly and test facilities.
We apply our historical loadings compared to our total available capacity in a statistical model to
determine our normal capacity level. If the factory loadings are below the established normal
capacity level, a portion of our fixed production overhead costs would not be included in the cost
of inventory; instead, it would be recognized as cost of sales in that period. We refer to these costs
as excess capacity charges. Excess capacity charges were $423 million in 2022 and insignificant in
the comparative periods presented. Charges in years prior to those presented have ranged up to
$1.1 billion taken in a particular fiscal year, such as in connection with the 2009 economic
recession. Inventory is valued at the lower of cost or net realizable value, based upon assumptions
about future demand and market conditions. Product-specific facts and circumstances reviewed in
the inventory valuation process include a review of our customer base, the stage of the product life
cycle, variations in market pricing, and an assessment of selling price in relation to product cost.
Lower of cost or net realizable value inventory reserves fluctuate as we ramp new process
technologies, with costs generally improving over time due to scale and improved yields.
Additionally, inventory valuation is impacted by cyclical changes in market conditions and the
associated pricing environment.
Property, Plant and Equipment We compute depreciation using the straight-line method over the
estimated useful life of assets. We also capitalize interest on borrowings related to eligible capital
expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together
with that asset cost. At least annually, we evaluate the period over which we expect to recover the
economic value of our property, plant and equipment, considering factors such as the process
technology cadence between node transitions, changes in machinery and equipment technology,
and re-use of machinery and tools across each generation of process technology. As we make
manufacturing process conversions and other factory planning decisions, we use assumptions
involving the use of management judgments regarding the remaining useful lives of assets,
primarily process-specific semiconductor manufacturing tools and building improvements. When
we determine that the useful lives of assets are shorter or longer than we had originally estimated,
we adjust the rate of depreciation to reflect the assets’ revised useful lives. Based on our latest
evaluation, effective January 2023, the estimated useful life of certain machinery and equipment in
our wafer fabrication facilities will increase from 5 to 8 years. This change in estimate will be
applied prospectively beginning in the first quarter of 2023. Assets are categorized and evaluated
for impairment at the lowest level of identifiable cash flows. Factors that we consider in deciding
when to perform an impairment review include significant under-performance of a business or
product line in relation to expectations, significant negative industry or economic trends, and
significant changes or planned changes in our use and fungibility of the assets. If an asset grouping
carrying value is not recoverable through the related undiscounted cash flows, the asset grouping is
considered to be impaired.
Identified Intangible Assets We amortize acquisition-related intangible assets that are subject to
amortization over their estimated useful lives. Acquisition-related, in-process R&D assets represent
the fair value of incomplete R&D projects that had not reached technological feasibility as of the
date of acquisition; initially, these are classified as in-process R&D and are not subject to
amortization. Once these R&D projects are completed, the asset balances are transferred from inprocess R&D to acquisition-related developed technology and are subject to amortization from that
point forward. The asset balances relating to projects that are abandoned after acquisition are
impaired and expensed to R&D.
Goodwill Our reporting units are the same as our operating segments. We evaluate our reporting
units annually or when triggered, such as upon reorganization of our operating segments. We
perform an annual impairment assessment of goodwill at the reporting unit level in the fourth
quarter of each year, or more frequently if indicators of potential impairment exist. The reporting
unit’s carrying value used in an impairment assessment represents the assignment of various assets
and liabilities, excluding certain corporate assets and liabilities, such as cash, investments, and
debt. The impairment assessment may include both qualitative and quantitative factors to assess
the likelihood of an impairment. Qualitative factors used include industry and market
considerations, overall financial performance, and other relevant events and factors affecting the
reporting unit. We may also perform a quantitative analysis to support the qualitative factors by
applying sensitivities to assumptions and inputs used in measuring a reporting unit’s fair value. Our
quantitative impairment assessment considers both the income approach and the market approach
to estimate a reporting unit’s fair value. Significant estimates include market segment growth rates,
our assumed market segment share, estimated gross margins, operating expenses, and discount
rates based on a reporting unit’s weighted average cost of capital. We test the reasonableness of
the inputs and outcomes of our discounted cash flow analysis against available market data. These
estimates change from year to year based on operating results, market conditions, and other
factors and could materially affect the determination of each reporting unit’s fair value and
potential goodwill impairment for each reporting unit. Our quantitative assessment is sensitive to
changes in underlying estimates and assumptions, the most sensitive of which is the discount rate.
Our 2022 annual qualitative assessment indicated that a more detailed quantitative analysis was
necessary for one of our reporting units. No impairment was required, even when considering a
hypothetical increase in the discount rate of 1%, which would cause a material decrease in the
estimated fair value of the reporting unit.
Government Incentives We enter into government incentive arrangements with domestic and
foreign, local, regional, and national governments, which vary in size, duration, and conditions.
These arrangements allow us to maintain a market-comparable foothold across various
geographies. We receive capital-related and operating grants, the benefits of which generally offset
the cost of acquired capital and other expenses and are primarily structured as cash grants and nonincome tax incentives. Government grants, including non-income tax incentives, are recognized
when there is reasonable assurance that the grant will be received and we will comply with the
conditions specified in the grant agreement. We are eligible to receive these grants because we
engage in qualifying capital investments, research and development, and other activities as defined
by the relevant government entities awarding the grants. Each grant agreement requires that we
comply with certain conditions, including achievement of future operational targets and
committing to minimum levels of capital investment. We record capital-related grants as a
reduction to property, plant and equipment, net within our Consolidated Balance Sheets and
recognize a reduction to depreciation and amortization expense over the useful life of the
corresponding acquired asset. We record operating grants as a reduction to expense in the same
line item on the Consolidated Statements of Income as the expenditure for which the grant is
intended to compensate. Capital-related grants reduced gross property, plant and equipment by
$3.3 billion as of December 31, 2022, of which $373 million was recognized in 2022. Contradepreciation expense reduced cost of sales by $230 million in 2022. A majority of operating grants
are recognized as a reduction to cost of sales , benefiting operating income by $104 million in 2022.
Capital-related and operating grants receivables totaled $437 million as of December 31, 2022 and
a substantial majority of the capital-related and operating grants receivables were reflected within
other long-term assets on our Consolidated Balance Sheets.
Fair Value When determining fair value, we consider the principal or most advantageous market in
which we would transact, as well as assumptions that market participants would use when pricing
the asset or liability. Our financial assets are measured and recorded at fair value on a recurring
basis, except for equity securities measured using the measurement alternative, equity method
investments, and grants receivable. We assess fair value hierarchy levels for our issued debt and
fixed-income investment portfolio based on the underlying instrument type. The three levels of
inputs that may be used to measure fair value are: ▪ Level 1 . Quoted prices in active markets for
identical assets or liabilities. We evaluate security-specific market data when determining whether
a market is active. ▪ Level 2. Observable inputs other than Level 1 prices, such as quoted prices for
similar assets or liabilities, quoted prices in less active markets, or model-derived valuations. All
significant inputs used in our valuations, such as discounted cash flows, are observable or can be
derived principally from or corroborated with observable market data for substantially the full term
of the assets or liabilities. We use LIBOR- and SOFR-based yield curves, overnight indexed swap
curves, currency spot and forward rates, and credit ratings as significant inputs in our valuations.
Level 2 inputs also include non-binding market consensus prices, as well as quoted prices that were
adjusted for security-specific restrictions. When we use non-binding market consensus prices, we
corroborate them with quoted market prices for similar instruments or compare them to output
from internally developed pricing models such as discounted cash flow models. ▪ Level 3.
Unobservable inputs to the valuation methodology that are significant to the measurement of the
fair value of assets or liabilities. We monitor and review the inputs and results of these valuation
models to help confirm that the fair value measurements are reasonable and consistent with
market experience in similar asset classes. Level 3 inputs also include non-binding market
consensus prices or non-binding broker quotes that we were unable to corroborate with
observable market data.
Debt investments include investments in corporate debt, government debt, and financial
institution instruments. Debt investments with original maturities of approximately three months
or less from the date of purchase are classified within cash and cash equivalents . Debt investments
with original maturities at the date of purchase greater than approximately three months are
classified as short-term investments
Debt Investments Debt investments include investments in corporate debt, government debt, and
financial institution instruments. Debt investments with original maturities of approximately three
months or less from the date of purchase are classified within cash and cash equivalents . Debt
investments with original maturities at the date of purchase greater than approximately three
months are classified as short-term investments , as they represent the investment of cash
available for current operations. For certain of our marketable debt investments, we economically
hedge market risks at inception with a related derivative instrument, or the marketable debt
investment itself is used to economically hedge currency exchange rate risk from remeasurement.
These hedged investments are reported at fair value. Gains or losses on these investments arising
from changes in fair value due to interest rate and currency market fluctuations and credit market
volatility, largely offset by losses or gains on the related derivative instruments and balance sheet
remeasurement, are recorded in interest and other, net . Our remaining unhedged marketable
debt investments are reported at fair value, with unrealized gains or losses, net of tax, recorded in
accumulated other comprehensive income (loss) . We determine the cost of the investment sold
based on an average cost basis at the individual security level and record the interest income and
realized gains or losses on the sale of these investments in interest and other, net . Unhedged debt
investments are subject to periodic impairment reviews. For investments in an unrealized loss
position, we determine whether a credit loss exists by considering information about the
collectability of the instrument, current market conditions, and reasonable and supportable
forecasts of economic conditions. We recognize an allowance for credit losses, up to the amount of
the unrealized loss when appropriate, and write down the amortized cost basis of the investment if
it is more likely than not we will be required or we intend to sell the investment before recovery of
its amortized cost basis. Allowances for credit losses and write-downs are recognized in interest
and other, net , and unrealized losses not related to credit losses are recognized in other
comprehensive income (loss) . Equity Investments We regularly invest in equity securities of public
and private companies to promote business and strategic objectives. Equity investments are
measured and recorded as follows: ▪ Marketable equity securities are equity securities with RDFV
that are measured and recorded at fair value on a recurring basis with changes in fair value,
Derivative Financial Instruments Our primary objective for holding derivative financial instruments
is to manage currency exchange rate risk and interest rate risk, and, to a lesser extent, equity
market risk, commodity price risk, and credit risk. We enter into master netting arrangements to
mitigate credit risk in derivative transactions by permitting net settlement of transactions with the
same counterparty. We also enter into collateral security arrangements with certain of our
counterparties to exchange cash collateral when the net fair value of certain derivative instruments
fluctuates from contractually established thresholds. For presentation on our Consolidated Balance
Sheets, we do not offset fair value amounts recognized for derivative instruments under master
netting arrangements. Our derivative financial instruments, including related collateral amounts,
are presented at fair value on a gross basis and are included in other current assets , other longterm assets , other accrued liabilities , or other long-term liabilities . Cash flow hedges use foreign
currency contracts, such as currency forwards and currency interest rate swaps, to hedge
exposures for variability in the US-dollar equivalent of non-US-dollar-denominated cash flows
associated with our forecasted operating and capital purchases spending. The after-tax gains or
losses from the effective portion of a cash flow hedge is reported as a component of accumulated
other comprehensive income (loss) and reclassified into earnings in the same period or periods in
which the hedged transaction affects earnings, and in the same line item on the Consolidated
Statements of Income as the impact of the hedge transaction. For foreign currency contracts
hedging our capital purchases, forward points are excluded from the hedge effectiveness
assessment, and are recognized in earnings in the same income statement line item used to
present the earnings effect of the hedged item. If the cash flow hedge transactions become
improbable, the corresponding amounts deferred in accumulated other comprehensive income
(loss) would be immediately reclassified to interest and other, net . Cash flows associated with
these derivatives are classified in the Consolidated Statements of Cash Flows in the same section as
the underlying item. Fair value hedges use interest rate contracts, such as interest rate swaps, to
hedge against changes in the fair value on certain of our fixed-rate indebtedness attributable to
changes in the benchmark interest rate. The gains or losses on these hedges, as well as the
offsetting losses or gains related to the changes in the fair value of the underlying hedged item
Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist
principally of investments in debt instruments, derivative financial instruments, loans receivable,
reverse repurchase agreements, and trade receivables. We generally place investments with highcredit-quality counterparties and, by policy, we limit the amount of credit exposure to any one
counterparty based on our analysis of that counterparty’s relative credit standing. As required per
our investment policy, substantially all of our investments in debt instruments are in investmentgrade instruments. Credit-rating criteria for derivative instruments are similar to those for other
investments. We enter into master netting arrangements to mitigate credit risk in derivative
transactions by permitting net settlement of transactions with the same counterparty. Due to
master netting arrangements, the amounts subject to credit risk related to derivative instruments
are generally limited to the amounts, if any, by which the counterparty’s obligations exceed our
obligations with that counterparty. As of December 31, 2022, our total credit exposure to any
single counterparty, excluding money market funds invested in US treasury and US agency
securities and reverse repurchase agreements collateralized by treasury and agency securities, did
not exceed $2.9 billion. To further reduce credit risk, we enter into collateral security arrangements
with certain of our derivative counterparties and obtain and secure collateral from counterparties
against obligations, including securities lending transactions when we deem it appropriate. Cash
collateral exchanged under our collateral security arrangements is included in other current assets ,
other long-term assets , other accrued liabilities , or other long-term liabilities . For reverse
repurchase agreements collateralized by other securities, we do not record the collateral as an
asset or a liability unless the collateral is repledged. A majority of our trade receivables are derived
from sales to OEMs and ODMs. We also have accounts receivable derived from sales to industrial
and communications equipment manufacturers in the computing and communications industries.
We believe the net accounts receivable balances from our three largest customers (53% as of
December 31, 2022) do not represent a significant credit risk, based on cash flow forecasts, balance
sheet analysis, and past collection experience. We have adopted credit policies and standards
intended to accommodate industry growth and inherent risk. We believe credit risks are
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statements. To determine if we are the primary beneficiary, we evaluate whether we have the
power to direct the activities that most significantly impact the VIE’s economic performance and
the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be
significant to the VIE. Our evaluation includes identification of significant activities and an
assessment of our ability to direct those activities based on governance provisions and
arrangements to provide services to the VIE. Periodically, we assess whether any changes in our
interest or relationship with the entity affect our determination of whether the entity is a VIE and,
if so, whether we are the primary beneficiary.
Business Combinations We allocate the purchase price paid for assets acquired and liabilities
assumed in connection with our acquisitions based on their estimated fair values at the time of
acquisition. This allocation involves a number of assumptions, estimates, and judgments in
determining the fair value of the following: ▪ inventory; property, plant and equipment; pre-existing
liabilities or legal claims; and contingent consideration; each as may be applicable; ▪ intangible
assets, including the valuation methodology, estimations of future cash flows, discount rates,
market segment growth rates, and our assumed market segment share, as well as the estimated
useful life of intangible assets; ▪ deferred tax assets and liabilities, uncertain tax positions, and taxrelated valuation allowances, which are initially estimated as of the acquisition date; and ▪ goodwill
as measured as the excess of consideration transferred over the net of the acquisition date fair
values of the assets acquired and the liabilities assumed. Our assumptions and estimates are based
upon comparable market data and information obtained from our management and the
management of the acquired companies. We allocate goodwill to the reporting units of the
business that are expected to benefit from the business combination.
Employee Equity Incentive Plans We use the straight-line amortization method to recognize sharebased compensation expense over the service period of the award, net of estimated forfeitures.
Upon exercise, cancellation, forfeiture, or expiration of stock options, or upon vesting or forfeiture
of RSUs, we eliminate deferred tax assets for options and RSUs with multiple vesting dates for each
vesting period on a first-in, first-out basis as if each vesting period were a separate award.
Income Taxes We compute the provision for income taxes using the asset and liability method,
under which deferred tax assets and liabilities are recognized for the expected future tax
consequences of temporary differences between the financial reporting and tax bases of assets and
liabilities, and for operating losses and tax credit carryforwards. We measure deferred tax assets
and liabilities using the currently enacted tax rates that apply to taxable income in effect for the
years in which those tax assets are expected to be realized or settled. We assess the likelihood that
we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our
provision for taxes by recording a valuation allowance against the deferred tax assets that we
estimate will not ultimately be recoverable. We believe that we will ultimately recover the deferred
tax assets recorded on our Consolidated Balance Sheets. Recovery of a portion of our deferred tax
assets is affected by management’s plans with respect to holding or disposing of certain
investments; therefore, such changes could also affect our future provision for taxes. We recognize
tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is
more likely than not that the tax positions will be sustained on examination by the tax authority.
The tax benefits recognized in the financial statements from such positions are measured based on
the largest amount that is more than 50% likely to be realized upon ultimate settlement. We
recognize interest and penalties related to unrecognized tax benefits within the provision for
(benefit from) taxes on the Consolidated Statements of Income.
Leases Leases consist of real property and machinery and equipment. Our lease terms may include
options to extend when it is reasonably certain that we will exercise such options. We have lease
agreements with lease and non-lease components, and the non-lease components are accounted
for separately and not included in our leased assets and corresponding liabilities. Payments on
leases may be fixed or variable, and variable lease payments are based on output of the underlying
leased assets.
Loss Contingencies We are subject to loss contingencies, including various legal and regulatory
proceedings, asserted and potential claims, liabilities related to repair or replacement of parts in
connection with product defects, as well as product warranties and potential asset impairments
that arise in the ordinary course of business and are subject to change, including due to sudden or
rapid developments in proceedings or claims. An estimated loss from such contingencies is
recognized as a charge to income if it is probable that a liability has been incurred and the amount
of the loss can be reasonably estimated. We evaluate developments that could affect prior
disclosures or previously-accrued liabilities, and make adjustments as appropriate. Significant
judgment is required to determine both likelihood of there being, and the estimated amount of, a
loss related to such matters. If one or more of these matters were resolved against us for amounts
in excess of management’s estimates of losses, our results of operations and financial condition
could be materially adversely affected.
Operating Segments (Tables)
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Revenue from External Customers by Geographic Areas [Table Text Block]
12 Months Ended
Dec. 31, 2022
Net revenue and operating income (loss) for each period were as follows: Years Ended (In Millions)
Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Operating segment revenue: Client Computing Desktop $
10,661 $ 12,437 $ 11,179 Notebook 18,783 25,443 24,897 Other 2,264 3,187 4,459 31,708 41,067
40,535 Data Center and AI 19,196 22,691 23,413 Network and Edge 8,873 7,976 7,132 Mobileye
1,869 1,386 967 Accelerated Computing Systems and Graphics 837 774 651 Intel Foundry Services
895 786 715 All other 196 5,019 5,091 Total operating segment revenue $ 63,574 $ 79,699 $
78,504 Operating income (loss): Client Computing $ 6,266 $ 15,704 $ 15,800 Data Center and AI
2,288 8,439 11,076 Network and Edge 740 1,711 846 Mobileye 690 554 323 Accelerated
Computing Systems and Graphics (1,716) (1,207) (403) Intel Foundry Services (320) (23) 45 All
other (5,614) (5,722) (4,009) Total operating income $ 2,334 $ 19,456 $ 23,678 The following table
presents intersegment revenue before eliminations: Total operating segment revenue $ 63,574 $
79,699 $ 78,504 Less: Accelerated Computing Systems and Graphics intersegment revenue (520)
(675) (637) Total net revenue $ 63,054 $ 79,024 $ 77,867
Net revenue by region, based on the billing location of the customer, was as follows: Years Ended
(In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 China $ 17,125 $ 22,961 $ 20,257 Singapore
9,664 18,096 17,845 United States 16,529 14,322 16,573 Taiwan 8,287 11,418 11,605 Other
regions 11,449 12,227 11,587 Total net revenue $ 63,054 $ 79,024 $ 77,867
Earnings Per Share (Tables)
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
12 Months Ended
Dec. 31, 2022
Years Ended (In Millions, Except Per Share Amounts) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Net
income $ 8,017 $ 19,868 $ 20,899 Less: Net income attributable to non-controlling interests 3 — —
Net income attributable to Intel $ 8,014 $ 19,868 $ 20,899 Weighted average shares of common
stock outstanding—basic 4,108 4,059 4,199 Dilutive effect of employee incentive plans 15 31 33
Weighted average shares of common stock outstanding—diluted 4,123 4,090 4,232 Earnings per
share attributable to Intel—basic $ 1.95 $ 4.89 $ 4.98 Earnings per share attributable to
Intel—diluted $ 1.94 $ 4.86 $ 4.94
Contract Liabilities (Tables)
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability
12 Months Ended
Dec. 31, 2022
The following table shows the changes in contract liability balances relating to long-term prepaid
customer supply agreements during 2022: (In Millions) Prepaid customer supply agreements
balance as of December 25, 2021 $ 43 Concession payment (950) Prepaids utilized (633) Prepaid
customer supply agreements balance as of December 31, 2022 $ 20
Other Financial Statement Details (Tables)
Other Financial Statement Details [Abstract]
Inventories [Table Text Block]
Property, Plant and Equipment [Table Text Block]
Long-lived Assets by Geographic Areas [Table Text Block]
Interest and Other, Net [Table Text Block]
12 Months Ended
Dec. 31, 2022
(In Millions) Dec 31, 2022 Dec 25, 2021 Raw materials $ 1,517 $ 1,441 Work in process 7,565 6,656
Finished goods 4,142 2,679 Total inventories $ 13,224 $ 10,776
(In Millions) Dec 31, 2022 Dec 25, 2021 Land and buildings $ 44,808 $ 40,039 Machinery and
equipment 92,711 86,955 Construction in progress 36,727 21,545 Total property, plant and
equipment, gross 174,246 148,539 Less: Accumulated depreciation (93,386) (85,294) Total
property, plant and equipment, net $ 80,860 $ 63,245
Net property, plant and equipment by country at the end of each period was as follows: (In
Millions) Dec 31, 2022 Dec 25, 2021 United States $ 53,681 $ 43,428 Ireland 13,179 7,503 Israel
7,908 7,754 Other countries 6,092 4,560 Total property, plant and equipment, net $ 80,860 $
63,245
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Interest income $ 589 $ 144 $
272 Interest expense (496) (597) (629) Other, net 1,073 (29) (147) Total interest and other, net $
1,166 $ (482) $ (504)
Restructuring and Other Charges (Tables)
Restructuring Costs and Asset Impairment Charges [Abstract]
Restructuring and Related Costs [Table Text Block]
12 Months Ended
Dec. 31, 2022
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Employee severance and benefit
arrangements $ 1,038 $ 48 $ 124 Litigation charges and other (1,187) 2,291 67 Asset impairment
charges 151 287 7 Total restructuring and other charges $ 2 $ 2,626 $ 198
Income Taxes (Tables)
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Summary of Valuation Allowance [Table Text Block]
Schedule of Unrecognized Tax Benefits Roll Forward
12 Months Ended
Dec. 31, 2022
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Income before taxes: US $
(1,161) $ 9,361 $ 15,452 Non-US 8,929 12,342 9,626 Total income before taxes 7,768 21,703
25,078 Provision for (benefit from) taxes: Current: Federal 4,106 1,304 1,120 State 68 75 46 NonUS 735 1,198 1,244 Total current provision for (benefit from) taxes 4,909 2,577 2,410 Deferred:
Federal (5,806) (863) 1,369 State (40) (25) 25 Non-US 688 146 375 Total deferred provision for
(benefit from) taxes (5,158) (742) 1,769 Total provision for (benefit from) taxes $ (249) $ 1,835 $
4,179 Effective tax rate (3.2) % 8.5 % 16.7 %
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Income before taxes: US $
(1,161) $ 9,361 $ 15,452 Non-US 8,929 12,342 9,626 Total income before taxes 7,768 21,703
25,078 Provision for (benefit from) taxes: Current: Federal 4,106 1,304 1,120 State 68 75 46 NonUS 735 1,198 1,244 Total current provision for (benefit from) taxes 4,909 2,577 2,410 Deferred:
Federal (5,806) (863) 1,369 State (40) (25) 25 Non-US 688 146 375 Total deferred provision for
(benefit from) taxes (5,158) (742) 1,769 Total provision for (benefit from) taxes $ (249) $ 1,835 $
4,179 Effective tax rate (3.2) % 8.5 % 16.7 %
The difference between the tax provision at the statutory federal income tax rate and the tax
provision as a percentage of income before income taxes (effective tax rate) for each period was as
follows: Years Ended Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Statutory federal income tax rate
21.0 % 21.0 % 21.0 % Increase (reduction) in rate resulting from: Non-US income taxed at different
rates (13.4) (5.9) (3.7) Research and development tax credits (11.4) (2.4) (2.1) Foreign derived
intangible income benefit (9.7) (2.2) (1.9) Unrecognized tax benefits and settlements 4.5 1.1 0.6
Restructuring of certain non-US subsidiaries — (3.4) — Change in permanent reinvestment
assertion — — 1.6 Other 5.8 0.3 1.2 Effective tax rate (3.2) % 8.5 % 16.7 %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts for income tax
purposes. Significant components of our deferred tax assets and liabilities at the end of each period
were as follows: (In Millions) Dec 31, 2022 Dec 25, 2021 Deferred tax assets: R&D expenditures
capitalization $ 5,067 $ 519 State credits and net operating losses 2,259 2,010 Inventory 1,788 914
Accrued compensation and other benefits 1,031 1,019 Share-based compensation 557 477
Litigation charge 470 467 Other, net 709 819 Gross deferred tax assets 11,881 6,225 Valuation
allowance (2,586) (2,259) Total deferred tax assets 9,295 3,966 Deferred tax liabilities: Property,
plant and equipment (4,776) (4,213) Licenses and intangibles (386) (486) Unrealized gains on
investments and derivatives (415) (819) Other, net (470) (241) Total deferred tax liabilities (6,047)
(5,759) Net deferred tax assets (liabilities) $ 3,248 $ (1,793) Reported as: Deferred tax assets 3,450
874 Deferred tax liabilities (202) (2,667) Net deferred tax assets (liabilities) $ 3,248 $ (1,793)
Changes in the valuation allowance for deferred tax assets were as follows: Years Ended (In
Millions) Balance at Beginning of Year Additions Charged to Expenses/ Net Balance at Valuation
allowance for deferred tax assets December 31, 2022 $ 2,259 $ 401 $ (74) $ 2,586 December 25,
2021 $ 1,963 $ 442 $ (146) $ 2,259 December 26, 2020 $ 1,534 $ 378 $ 51 $ 1,963
Uncertain Tax Positions (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Beginning gross
unrecognized tax benefits $ 1,020 $ 828 $ 548 Settlements and effective settlements with tax
authorities (18) (25) (142) Changes in balances related to tax position taken during prior periods
(120) (26) 165 Changes in balances related to tax position taken during current period 347 243 257
Ending gross unrecognized tax benefits $ 1,229 $ 1,020 $ 828
Investments (Tables)
Debt Securities, Available-for-sale [Line Items]
Investment [Table Text Block]
Gain (Loss) on Securities [Table Text Block]
Available-for-sale Securities
Debt Securities, Available-for-sale [Line Items]
Investments Classified by Contractual Maturity Date [Table Text Block]
12 Months Ended
Dec. 31, 2022
(In Millions) Dec 31, 2022 Dec 25, 2021 Marketable equity securities 1 $ 1,341 $ 2,171 Nonmarketable equity securities 4,561 4,111 Equity method investments 10 16 Total $ 5,912 $ 6,298 1
Over 90% of our marketable equity securities are subject to trading-volume or market-based
restrictions, which limit the number of shares we may sell in a specified period of time, impacting
our ability to liquidate these investments. The trading volume restrictions generally apply for as
long as we own more than 1% of the outstanding shares. Market-based restrictions result from the
rules of the respective exchange.
The components of gains (losses) on equity investments, net for each period were as follows: Years
Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Ongoing mark-to-market adjustments
on marketable equity securities $ (787) $ (130) $ (133) Observable price adjustments on nonmarketable equity securities 299 750 176 Impairment charges (190) (154) (303) Sale of equity
investments and other 1 4,946 2,263 2,164 Total gains (losses) on equity investments, net $ 4,268 $
2,729 $ 1,904 1 Sale of equity investments and other includes initial fair value adjustments
recorded upon a security becoming marketable, realized gains (losses) on sales of non-marketable
equity investments and equity method investments, and our share of equity method investee gains
(losses) and distributions. Net unrealized gains and losses for our marketable and non-marketable
equity securities during each period were as follows: (In Millions) Dec 31, 2022 Dec 25, 2021 Dec
26, 2020 Net unrealized gains (losses) recognized during the period on equity securities $ (314) $
1,210 $ 1,6…
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