Intel Corp Files Q3 2024 10-Q

Ticker: INTC · Form: 10-Q · Filed: Nov 1, 2024 · CIK: 50863

Intel CORP 10-Q Filing Summary
FieldDetail
CompanyIntel CORP (INTC)
Form Type10-Q
Filed DateNov 1, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.001, $13.3 billion, $874 million, $13.3B, $5.1B
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, earnings, financials

Related Tickers: INTC

TL;DR

**INTC Q3 10-Q FILED** - Official financials out, check for key performance indicators.

AI Summary

Intel Corporation filed its 10-Q for the period ending September 28, 2024. The filing covers financial performance and operational details for the third quarter of 2024. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the official financial results and disclosures for Intel's third quarter of 2024, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and disclosures within can reveal significant risks or opportunities.

Key Players & Entities

FAQ

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

The 10-Q filing is for the period ending September 28, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on November 1, 2024.

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

Intel Corp's Central Index Key is 0000050863.

What is the Standard Industrial Classification (SIC) code for Intel Corp?

Intel Corp's SIC code is 3674, for Semiconductors & Related Devices.

What is the fiscal year end for Intel Corp?

Intel Corp's fiscal year ends on December 28.

Filing Stats: 4,562 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-10-31 18:13:27

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 26

Management's Discussion and Analysis (MD&A)

Management's Discussion and Analysis (MD&A) Operating Segments Trends and Results 28 Consolidated Condensed Results of Operations 37 Liquidity and Capital Resources 43 Non-GAAP Financial Measures 45 Risk Factors and Other Key Information Risk Factors 48

Quantitative and Qualitative Disclosures About Market Risk 48

Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures 48

Controls and Procedures 48 Issuer Purchases of Equity Securities 48 Rule 10b5-1 Trading Arrangements 48 Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934 49 Exhibits 50 Form 10-Q Cross-Reference Index 51 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 Nine Months Ended (In Millions; Unaudited) Sep 28, 2024 Sep 30, 2023 Sep 28, 2024 Sep 30, 2023 Net income (loss) $ ( 16,989 ) $ 310 $ ( 19,080 ) $ ( 985 ) Changes in other comprehensive income (loss), net of tax: Net unrealized holding gains (losses) on derivatives 512 ( 320 ) 32 ( 310 ) Actuarial valuation and other pension benefits (expenses), net — 2 — 5 Translation adjustments and other ( 1 ) 1 ( 2 ) 6 Other comprehensive income (loss) 511 ( 317 ) 30 ( 299 ) Total comprehensive income (loss) ( 16,478 ) ( 7 ) ( 19,050 ) ( 1,284 ) Less: comprehensive income (loss) attributable to non-controlling interests ( 350 ) 13 ( 450 ) ( 5 ) Total comprehensive income (loss) attributable to Intel $ ( 16,128 ) $ ( 20 ) $ ( 18,600 ) $ ( 1,279 ) 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) Sep 28, 2024 Dec 30, 2023 Assets Current assets: Cash and cash equivalents $ 8,785 $ 7,079 Short-term investments 15,301 17,955 Accounts receivable, net 3,121 3,402 Inventories 12,062 11,127 Other current assets 6,868 3,706 Total current assets 46,137 43,269 Property, plant, and equipment, net of accumulated depreciation of $ 101,124 ($ 98,010 as of December 30, 2023) 104,248 96,647 Equity investments 5,496 5,829 Goodwill 24,680 27,591 Identified intangible assets, net 3,975 4,589 Other long-term assets 9,006 13,647 Total assets $ 193,542 $ 191,572 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 11,074 $ 8,578 Accrued compensation and benefits 5,015 3,655 Short-term debt 3,765 2,288 Income taxes payable 2,440 1,107 Other accrued liabilities 12,865 12,425 Total current liabilities 35,159 28,053 Debt 46,471 46,978 Other long-term liabilities 7,048 6,576 Contingencies (Note 14) Stockholders' equity: Common stock and capital in excess of par value, 4,309 issued and outstanding ( 4,228 issued and outstanding as of December 30, 2023) 50,665 36,649 Accumulated other comprehensive income (loss) ( 185 ) ( 215 ) Retained earnings 49,052 69,156 Total Intel stockholders' equity 99,532 105,590 Non-controlling interests 5,332 4,375 Total stockholders' equity 104,864 109,965 Total liabilities and stockholders' equity $ 193,542 $ 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 Nine Months Ended (In Millions; Unaudited) Sep 28, 2024 Sep 30, 2023 Cash and cash equivalents, beginning of period $ 7,079 $ 11,144 Cash flows provided by (used for) operating activities: Net income (loss) ( 19,080 ) ( 985 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 7,651 5,753 Share-based compensation 2,759 2,433 Restructuring and other charges 3,626 718 Amortization of intangibles 1,081 1,336 (Gains) losses on equity investments, net 75 47 Deferred taxes 6,368 ( 1,376 ) Impairments and net (gain) loss on retirement of property, plant, and equipment 2,290 ( 87 ) Changes in assets and liabilities: Accounts receivable 282 1,290 Inventories ( 969 ) 1,758 Accounts payable 566 ( 1,082 ) Accrued compensation and benefits 1,384 ( 1,171 ) Income taxes ( 930 ) ( 1,300 ) Other assets and liabilities 20 ( 487 ) Total adjustments 24,203 7,832 Net cash provided by (used for) operating activities 5,123 6,847 Cash flows provided by (used for) investing activities: Additions to property, plant, and equipment ( 18,110 ) ( 19,054 ) Proceeds from capital-related government incentives 725 649 Purchases of short-term investments ( 31,519 ) ( 37,287 ) Maturities and sales of short-term investments 34,268 36,725 Other investing 144 244 Net cash provided by (used for) investing activities ( 14,492 ) ( 18,723 ) Cash flows provided by (used for) financing activities: Issuance of commercial paper, net of issuance costs 7,349 — Repayment of commercial paper ( 7,349 ) ( 3,944 ) Payments on finance leases — ( 96 ) Partner contributions 12,278 1,106 Proceeds from sales of subsidiary shares — 2,423 Issuance of long-term debt, net of issuance costs 2,975 11,391 Repayment of debt ( 2,288 ) ( 423 ) Proceeds from sales of common stock through employee equity incen

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 June 29, 2024 4,276 $ 49,763 $ ( 696 ) $ 66,162 $ 5,205 $ 120,434 Net income (loss) — — — ( 16,639 ) ( 350 ) ( 16,989 ) Other comprehensive income (loss) — — 511 — — 511 Net proceeds from partner contributions — — — — 417 417 Employee equity incentive plans and other 38 355 — — — 355 Share-based compensation — 740 — — 60 800 Restricted stock unit withholdings ( 5 ) ( 193 ) — 65 — ( 128 ) Cash dividends declared ($ 0.13 per share of common stock) — — — ( 536 ) — ( 536 ) Balance as of September 28, 2024 4,309 $ 50,665 $ ( 185 ) $ 49,052 $ 5,332 $ 104,864 Balance as of July 1, 2023 4,188 $ 34,330 $ ( 544 ) $ 67,231 $ 3,454 $ 104,471 Net income (loss) — — — 297 13 310 Other comprehensive income (loss) — — ( 317 ) — — ( 317 ) Net proceeds from sales of subsidiary shares and partner contributions — 388 — — 371 759 Employee equity incentive plans and other 33 372 — — — 372 Share-based compensation — 737 — — 35 772 Restricted stock unit withholdings ( 5 ) ( 174 ) — 18 — ( 156 ) Cash dividends declared ($ 0.13 per share of common stock) — — — ( 525 ) — ( 525 ) Balance as of September 30, 2023 4,216 $ 35,653 $ ( 861 ) $ 67,021 $ 3,873 $ 105,686 Nine Months Ended Balance as of December 30, 2023 4,228 $ 36,649 $ ( 215 ) $ 69,156 $ 4,375 $ 109,965 Net income (loss) — — — ( 18,630 ) ( 450 ) ( 19,080 ) Other comprehensive income (loss) — — 30 — — 30 Net proceeds from partner contributions — 11,012 — — 1,266 12,278 Employee equity incentive plans and other 96 986 — — — 986 Share-based compensation — 2,618 — — 141 2,759 Restricted stock unit withholdings (

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. We made certain reclassifications within our Consolidated Condensed Financial Statements during 2024, and, in certain cases, adjusted prior periods to conform to the current period presentation. These reclassifications had no impact on previously reported net income (loss), cash flows, or stockholders' equity. 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 utili

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