Intel Corp Files 10-Q for Q2 2024

Ticker: INTC · Form: 10-Q · Filed: Aug 2, 2024 · CIK: 50863

Intel CORP 10-Q Filing Summary
FieldDetail
CompanyIntel CORP (INTC)
Form Type10-Q
Filed DateAug 2, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.001, $12.8 billion, $116 million, $12.8B, $0.02
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, earnings, financials, semiconductors

Related Tickers: AMD, NVDA, QCOM

TL;DR

**INTC 10-Q FILED: Financials for Q2 2024 are in. Check for performance updates.**

AI Summary

Intel Corporation filed its 10-Q for the period ending June 29, 2024, reporting on its financial performance. The filing details its balance sheet, income statement, and cash flow statement for the quarter and year-to-date. Key financial figures and operational details are presented for investors and stakeholders.

Why It Matters

This filing provides crucial financial data for Intel Corp, allowing investors to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: medium — As a major semiconductor company, Intel faces significant market, technological, and competitive risks inherent in the industry.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 29, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed with the SEC on August 2, 2024.

What is Intel Corp's Central Index Key (CIK)?

Intel Corp's Central Index Key (CIK) is 0000050863.

What is Intel Corp's Standard Industrial Classification (SIC) code?

Intel Corp's Standard Industrial Classification (SIC) code is 3674, which corresponds to SEMICONDUCTORS & RELATED DEVICES.

What is the fiscal year end for Intel Corp?

Intel Corp's fiscal year ends on December 28.

Filing Stats: 4,593 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-08-01 18:26:52

Key Financial Figures

Filing Documents

Forward-Looking Statements

Forward-Looking Statements 1 Availability of Company Information 2 A Quarter in Review 3 Consolidated Condensed Financial Statements and Supplemental Details Consolidated Condensed Statements of Income 4 Consolidated Condensed Statements of Comprehensive Income 5 Consolidated Condensed Balance Sheets 6 Consolidated Condensed Statements of Cash Flows 7 Consolidated Condensed Statements of Stockholders' Equity 8 Notes to Consolidated Condensed Financial Statements 9 Key Terms 24

Management's Discussion and Analysis (MD&A)

Management's Discussion and Analysis (MD&A) Segment Trends and Results 25 Consolidated Condensed Results of Operations 34 Liquidity and Capital Resources 39 Non-GAAP Financial Measures 41 Risk Factors and Other Key Information Risk Factors 43 Form 8-K Disclosable Events 43

Quantitative and Qualitative Disclosures About Market Risk 43

Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures 43

Controls and Procedures 43 Issuer Purchases of Equity Securities 44 Rule 10b5-1 Trading Arrangements 44 Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934 44 Exhibits 45 Form 10-Q Cross-Reference Index 46 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains forward-looking statements that involve a number of risks and uncertainties. Words such as "accelerate", "achieve", "aim", "ambitions", "anticipate", "believe", "committed", "continue", "could", "designed", "estimate", "expect", "forecast", "future", "goals", "grow", "guidance", "intend", "likely", "may", "might", "milestones", "next generation", "objective", "on track", "opportunity", "outlook", "pending", "plan", "position", "possible", "potential", "predict", "progress", "ramp", "roadmap", "seek", "should", "strive", "targets", "to be", "upcoming", "will", "would", and variations of such words and similar expressions are intended to identify such forward-looking statements, which may include statements regarding: our business plans and strategy and anticipated benefits therefrom, including with respect to our IDM 2.0 strategy, Smart Capital strategy, partnerships with Apollo and Brookfield, internal foundry model, updated reporting structure, and AI strategy; projections of our future financial performance, including future revenue, gross margins, capital expenditures, and cash flows; projected costs and yield trends; future cash requirements, the availability, uses, sufficiency, and cost of capital resources, and sources of funding, including for future capital and R&D investments and for returns to stockholders, such as stock repurchases and dividends, and credit ratings expectations; future products, services, and technologies, and the expected goals, timeline, ramps, progress, availability, production, regulation, and benefits of such products, services, and technologies, including future process nodes and packaging technology, product roadmaps, schedules, future product architectures, expectations regarding process performance, per-watt parity, and metrics, and expectations regarding product and process leadership; investment plans and impacts of investment plans, including in the US and abroad; inte

Financial Statements Consolidated Condensed Statements of Income 4

Financial Statements Consolidated Condensed Statements of Income 4 Table of Contents Consolidated Condensed Statements of Comprehensive Income Three Months Ended Six Months Ended (In Millions; Unaudited) Jun 29, 2024 Jul 1, 2023 Jun 29, 2024 Jul 1, 2023 Net income (loss) $ ( 1,654 ) $ 1,473 $ ( 2,091 ) $ ( 1,295 ) Changes in other comprehensive income (loss), net of tax: Net unrealized holding gains (losses) on derivatives ( 153 ) ( 131 ) ( 481 ) 11 Actuarial valuation and other pension benefits (expenses), net — 2 — 3 Translation adjustments and other ( 1 ) 4 — 4 Other comprehensive income (loss) ( 154 ) ( 125 ) ( 481 ) 18 Total comprehensive income (loss) ( 1,808 ) 1,348 ( 2,572 ) ( 1,277 ) Less: comprehensive income (loss) attributable to non-controlling interests ( 44 ) ( 8 ) ( 100 ) ( 18 ) Total comprehensive income (loss) attributable to Intel $ ( 1,764 ) $ 1,356 $ ( 2,472 ) $ ( 1,259 ) See accompanying notes.

Financial Statements Consolidated Condensed Statements of Comprehensive Income 5

Financial Statements Consolidated Condensed Statements of Comprehensive Income 5 Table of Contents Consolidated Condensed Balance Sheets (In Millions; Unaudited) Jun 29, 2024 Dec 30, 2023 Assets Current assets: Cash and cash equivalents $ 11,287 $ 7,079 Short-term investments 17,986 17,955 Accounts receivable, net 3,131 3,402 Inventories 11,244 11,127 Other current assets 7,181 3,706 Total current assets 50,829 43,269 Property, plant, and equipment, net of accumulated depreciation of $ 100,173 ($ 98,010 as of December 30, 2023) 103,398 96,647 Equity investments 5,824 5,829 Goodwill 27,442 27,591 Identified intangible assets, net 4,383 4,589 Other long-term assets 14,329 13,647 Total assets $ 206,205 $ 191,572 Liabilities and stockholders' equity Current liabilities: Short-term debt $ 4,695 $ 2,288 Accounts payable 9,618 8,578 Accrued compensation and benefits 2,651 3,655 Income taxes payable 1,856 1,107 Other accrued liabilities 13,207 12,425 Total current liabilities 32,027 28,053 Debt 48,334 46,978 Other long-term liabilities 5,410 6,576 Contingencies (Note 13) Stockholders' equity: Common stock and capital in excess of par value, 4,276 issued and outstanding ( 4,228 issued and outstanding as of December 30, 2023) 49,763 36,649 Accumulated other comprehensive income (loss) ( 696 ) ( 215 ) Retained earnings 66,162 69,156 Total Intel stockholders' equity 115,229 105,590 Non-controlling interests 5,205 4,375 Total stockholders' equity 120,434 109,965 Total liabilities and stockholders' equity $ 206,205 $ 191,572 See accompanying notes.

Financial Statements Consolidated Condensed Balance Sheets 6

Financial Statements Consolidated Condensed Balance Sheets 6 Table of Contents Consolidated Condensed Statements of Cash Flows Six Months Ended (In Millions; Unaudited) Jun 29, 2024 Jul 1, 2023 Cash and cash equivalents, beginning of period $ 7,079 $ 11,144 Cash flows provided by (used for) operating activities: Net income (loss) ( 2,091 ) ( 1,295 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 4,403 3,733 Share-based compensation 1,959 1,661 Restructuring and other charges 1,291 255 Amortization of intangibles 717 909 (Gains) losses on equity investments, net ( 84 ) ( 146 ) Changes in assets and liabilities: Accounts receivable 272 1,137 Inventories ( 116 ) 1,240 Accounts payable 184 ( 1,102 ) Accrued compensation and benefits ( 1,309 ) ( 1,340 ) Income taxes ( 2,174 ) ( 2,186 ) Other assets and liabilities ( 1,983 ) ( 1,843 ) Total adjustments 3,160 2,318 Net cash provided by (used for) operating activities 1,069 1,023 Cash flows provided by (used for) investing activities: Additions to property, plant, and equipment ( 11,652 ) ( 13,301 ) Proceeds from capital-related government incentives 699 49 Purchases of short-term investments ( 17,634 ) ( 25,696 ) Maturities and sales of short-term investments 17,214 26,957 Other investing ( 355 ) 662 Net cash provided by (used for) investing activities ( 11,728 ) ( 11,329 ) Cash flows provided by (used for) financing activities: Issuance of commercial paper, net of issuance costs 5,804 — Repayment of commercial paper ( 2,609 ) ( 3,944 ) Payments on finance leases — ( 96 ) Partner contributions 11,861 834 Proceeds from sales of subsidiary shares — 1,573 Issuance of long-term debt, net of issuance costs 2,975 10,968 Repayment of debt ( 2,288 ) — Proceeds from sales of common stock through employee equity incentive plans 631 665 Payment of dividends to stockholders ( 1,063 ) ( 2,036 ) Other financing ( 444 ) ( 453 ) N

Financial Statements Consolidated Condensed Statements of Cash Flows 7

Financial Statements Consolidated Condensed Statements of Cash Flows 7 Table of Contents Consolidated Condensed Statements of Stockholders' Equity (In Millions, Except Per Share Amounts; Unaudited) Common Stock and Capital in Excess of Par Value Accumulated Other Comprehensive Income (Loss) Retained Earnings Non-Controlling Interests Total Shares Amount Three Months Ended Balance as of March 30, 2024 4,257 $ 38,291 $ ( 542 ) $ 68,224 $ 4,783 $ 110,756 Net income (loss) — — — ( 1,610 ) ( 44 ) ( 1,654 ) Other comprehensive income (loss) — — ( 154 ) — — ( 154 ) Net proceeds from partner contributions — 11,012 — — 426 11,438 Employee equity incentive plans and other 26 5 — — — 5 Share-based compensation — 740 — — 40 780 Restricted stock unit withholdings ( 7 ) ( 285 ) — 82 — ( 203 ) Cash dividends declared ($ 0.13 per share of common stock) — — — ( 534 ) — ( 534 ) Balance as of June 29, 2024 4,276 $ 49,763 $ ( 696 ) $ 66,162 $ 5,205 $ 120,434 Balance as of April 1, 2023 4,171 $ 32,829 $ ( 419 ) $ 65,649 $ 2,344 $ 100,403 Net income (loss) — — — 1,481 ( 8 ) 1,473 Other comprehensive income (loss) — — ( 125 ) — — ( 125 ) Net proceeds from sales of subsidiary shares and partner contributions — 866 — — 1,092 1,958 Employee equity incentive plans and other 22 6 — — — 6 Share-based compensation — 896 — — 26 922 Restricted stock unit withholdings ( 5 ) ( 267 ) — 101 — ( 166 ) Balance as of July 1, 2023 4,188 $ 34,330 $ ( 544 ) $ 67,231 $ 3,454 $ 104,471 Six Months Ended Balance as of December 30, 2023 4,228 $ 36,649 $ ( 215 ) $ 69,156 $ 4,375 $ 109,965 Net income (loss) — — — ( 1,991 ) ( 100 ) ( 2,091 ) Other comprehensive income (loss) — — ( 481 ) — — ( 481 ) Net proceeds from partner contributions — 11,012 — — 849 11,861 Employee equity incentive plans and other 58 631 — — — 631 Share-based compensation — 1,878 — — 81 1,959 Restricted stock unit withholdings ( 10 ) ( 407 ) — 60 — ( 347 ) Cash dividends declared ($ 0.25 per share

Financial Statements Consolidated Condensed Statements of Stockholders' Equity 8

Financial Statements Consolidated Condensed Statements of Stockholders' Equity 8 Table of Contents Notes to Consolidated Condensed Financial Statements Note 1 : Basis of Presentation We prepared our interim Consolidated Condensed Financial Statements that accompany these notes in conformity with US GAAP, consistent in all material respects with those applied in our 2023 Form 10-K. We have made estimates and judgments affecting the amounts reported in our Consolidated Condensed Financial Statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The interim financial information is unaudited, and reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This report should be read in conjunction with our 2023 Form 10-K where we include additional information on our critical accounting estimates, policies, and the methods and assumptions used in our estimates. Note 2 : Operating Segments We previously announced the implementation of our internal foundry operating model, which took effect in the first quarter of 2024, and creates a foundry relationship between our Intel Products business (collectively CCG, DCAI, and NEX) and our Intel Foundry business. Intel Products consists substantially of design and development of CPUs and related solutions for third party customers. Intel Foundry consists substantially of process engineering, manufacturing, and foundry services groups that provide manufacturing, test, and assembly services to our Intel Products business and to third party customers. Both businesses utilize marketing, sales, and other support functions. Our internal foundry model is a key component of our strategy and is designed to reshape our operational dynamics and drive greater transparency, accountability, and focus on costs and efficiency. We also previously announced our intent to operate Altera as a st

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