Intel Books $2.8B Goodwill Impairment, Mobileye Hit

Ticker: INTC · Form: 10-Q · Filed: 2025-04-25T00:00:00.000Z

Sentiment: bearish

Topics: impairment, goodwill, Mobileye, earnings

Related Tickers: INTC, MBLY

TL;DR

Intel took a $2.8B goodwill hit in Q3 2025, mostly from Mobileye. Ouch.

AI Summary

Intel Corp. reported a non-cash goodwill impairment charge of $2.8 billion in the third quarter of 2025. This charge was primarily related to the Mobileye reporting unit, driven by a decline in market capitalization below net asset carrying values. The impairment assessment involved quantitative analysis using income and market approaches.

Why It Matters

This significant impairment charge reflects challenges in valuing certain Intel assets, particularly Mobileye, and could impact future financial reporting and investor perception.

Risk Assessment

Risk Level: medium — A large goodwill impairment charge can signal underlying business challenges or overvaluation of past acquisitions, warranting closer scrutiny.

Key Numbers

Key Players & Entities

FAQ

What was the total goodwill impairment charge recognized by Intel in the third quarter of 2025?

Intel recognized a non-cash goodwill impairment charge of $2.8 billion in the third quarter of 2025.

Which reporting unit was most affected by the goodwill impairment charge?

The Mobileye reporting unit was most affected by the goodwill impairment charge.

What factors led to the need for a quantitative goodwill impairment assessment?

A decline in Intel's market capitalization below the carrying value of its net assets, and a decline in Mobileye's market capitalization below its net asset carrying value, necessitated a quantitative assessment.

What methods were used to measure the fair value of reporting units during the impairment test?

The fair value was measured using either the income approach, the market approach, or a combination of both.

Where was the goodwill impairment charge recorded in Intel's financial statements?

The charge was recorded within 'restructuring and other'.

From the Filing

0000050863-25-000074.txt : 20250425 0000050863-25-000074.hdr.sgml : 20250425 20250424183904 ACCESSION NUMBER: 0000050863-25-000074 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 92 CONFORMED PERIOD OF REPORT: 20250329 FILED AS OF DATE: 20250425 DATE AS OF CHANGE: 20250424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTEL CORP CENTRAL INDEX KEY: 0000050863 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] ORGANIZATION NAME: 04 Manufacturing EIN: 941672743 STATE OF INCORPORATION: DE FISCAL YEAR END: 1227 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06217 FILM NUMBER: 25869271 BUSINESS ADDRESS: STREET 1: 2200 MISSION COLLEGE BLVD STREET 2: RNB-4-151 CITY: SANTA CLARA STATE: CA ZIP: 95054 BUSINESS PHONE: 4087658080 MAIL ADDRESS: STREET 1: 2200 MISSION COLLEGE BLVD STREET 2: RNB-4-151 CITY: SANTA CLARA STATE: CA ZIP: 95054 10-Q 1 intc-20250329.htm 10-Q intc-20250329 0000050863 December 28 2025 Q1 FALSE Note : Goodwill Our quarterly qualitative impairment assessment for the third quarter of 2025 indicated that a more detailed quantitative analysis was necessary for certain of our reporting units, primarily due to the decline in our market capitalization below the carrying value of our net assets, as well as the decline in our Mobileye reporting unit's market capitalization below the carrying value of Mobileye's net assets. Our quantitative assessment was performed by measuring each reporting unit's fair value using either the income approach, the market approach, or a combination of both. When using the income approach, we tested the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. As a result of our impairment tests, we recognized a non-cash goodwill impairment charge of $2.8 billion in the third quarter of 2025 within restructuring and other, most of which related to our Mobileye reporting unit, as the estimated fair value of the reporting unit was lower than the assigned carrying value. The process of valuing each reporting unit is inherently subjective as valuation models require the application of significant estimates and the use of unobservable inputs, including market segment share, projected financial information, and discount rates. No impairment was required for our other reporting units, 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 respective non-impaired reporting units. Finally, to corroborate our estimated fair value, we performed a market capitalization reconciliation as of March 29, 2025, concluding that the implied control premium was reasonable. In the first quarter of 2025, as a result of modifying our segment reporting, we reallocated goodwill among our affected reporting units on a relative fair value basis. We performed a quantitative goodwill impairment assessment for each of our reporting units immediately before and after our business reorganization. We concluded based on our pre-reorganization impairment test that goodwill was not impaired. As a result of our post-reorganization impairment test, we recognized a non-cash goodwill impairment loss of $222 million in the first quarter of 2025 related to our Intel Foundry reporting unit as the estimated fair value of the new reporting unit was lower than the assigned carrying value, which now includes substantially all of our allocated property, plant, and equipment. The Intel Foundry reporting unit has no remaining goodwill. At the conclusion of our impairment assessment performed during the first quarter of 2025, the fair value substantially exceeded the carrying value for all remaining reporting units. 2.8 1 222 no xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure 0000050863 2024-12-29 2025-03-29 0000050863 2025-04-18 0000050863 2023-12-31 2024-03-30 0000050863 2025-03-29 0000050863 2024-12-28 0000050863 2023-12-30 000

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