NEWS SUMMARY
3rd-quarter earnings of $13.3 billion.
3rd-quarter GAAP profits (loss) according to percentage (EPS) due to Intel was once $(3.88); non-GAAP EPS due to Intel was once $(0.46).
$(3.89) have an effect on to GAAP EPS due to Intel from $15.9 billion of impairment fees and $2.8 billion of restructuring fees; $(0.63) have an effect on to non-GAAP EPS due to Intel from $3.1 billion of impairment fees.
Making important growth on plan to ship $10 billion in charge discounts in 2025.
Forecasting fourth-quarter 2024 earnings of $13.3 billion to $14.3 billion; anticipating fourth-quarter GAAP EPS due to Intel of $(0.24); non-GAAP EPS due to Intel of $0.12.
SANTA CLARA, Calif.–(BUSINESS WIRE)–
Intel Company as of late reported third-quarter 2024 monetary effects.
“Our Q3 effects underscore the cast growth we’re making towards the plan we defined closing quarter to scale back prices, simplify our portfolio and enhance organizational potency. We delivered earnings above the midpoint of our steerage, and are appearing with urgency to put the trade for sustainable price advent shifting ahead,” stated Pat Gelsinger, Intel CEO. “The momentum we’re development throughout our product portfolio to maximise the worth of our x86 franchise, blended with the robust hobby Intel 18A is attracting from foundry consumers, displays the have an effect on of our movements and the alternatives forward.”
“Restructuring fees meaningfully impacted Q3 profitability as we took essential steps towards our charge aid function,” stated David Zinsner, Intel CFO. “The movements we took this quarter place us for stepped forward profitability and enhanced liquidity as we proceed to execute our technique. We’re inspired through stepped forward underlying tendencies, mirrored in our This autumn steerage.”
Q3 2024 Monetary Highlights
GAAP
Non-GAAP
Q3 2024
Q3 2023
vs. Q3 2023
Q3 2024
Q3 2023
vs. Q3 2023
Earnings ($B)
$13.3
$14.2
down 6%
Gross Margin
15.0%
42.5%
down 27.5 ppts
18.0%
45.8%
down 27.8 ppts
R&D and MG&A ($B)
$5.4
$5.2
up 4%
$4.8
$4.6
up 4%
Running Margin
(68.2)%
(0.1)%
down 68.1 ppts
(17.8)%
13.6%
down 31.4 ppts
Tax Price
(87.0)%
696.2%
n/m*
13.0%
13.0%
—
Web Source of revenue (loss) Due to Intel ($B)
$(16.6)
$0.3
n/m*
$(2.0)
$1.7
n/m*
Income (loss) Consistent with Percentage Due to Intel
$(3.88)
$0.07
n/m*
$(0.46)
$0.41
n/m*
Within the 0.33 quarter, the corporate generated $4.1 billion in coins from operations and paid dividends of $0.5 billion.
*No longer significant
Q3 2024 Restructuring and Impairment Fees
Within the 0.33 quarter, the corporate made important growth on its $10 billion charge aid plan. The plan targets to force operational potency and agility, boost up successful expansion and create capability for ongoing strategic funding in generation and production management. Those projects come with structural and working realignment around the corporate, along discounts in headcount, working bills and capital expenditures. Because of those movements, the corporate known $2.8 billion in restructuring fees in Q3 2024, $528 million of that are non-cash fees and $2.2 billion of which might be coins settled sooner or later.
Intel’s 0.33 quarter effects have been additionally materially impacted through the next fees:
$3.1 billion of fees, considerably all of that have been known in charge of gross sales, associated with non-cash impairments and the acceleration of depreciation for positive production belongings, a considerable majority of which associated with the Intel 7 procedure node, founded upon an analysis of present procedure generation node capacities relative to projected marketplace call for for Intel services and products;
$2.9 billion of non-cash fees related to the impairment of goodwill for positive reporting devices – basically the Mobileye reporting unit – in addition to positive received intangible belongings; and
$9.9 billion of non-cash fees associated with the established order of a valuation allowance towards U.S. deferred tax belongings.
The restructuring fees of $2.8 billion and the asset impairment fees, together with the allowance towards our deferred tax belongings, and sped up depreciation of $15.9 billion larger GAAP loss according to percentage due to Intel through $3.89. The restructuring fees, impairments of goodwill and intangible belongings, and deferred tax asset valuation allowance had no have an effect on on non-GAAP loss according to percentage due to Intel. The impairment fees and sped up depreciation for positive production belongings of $3.1 billion larger GAAP and non-GAAP loss according to percentage due to Intel through $0.57 and $0.63 according to percentage, respectively. Those fees weren’t included into the steerage Intel equipped for the 0.33 quarter of 2024.
Trade Unit Abstract
In October 2022, Intel introduced an inside foundry working type, which took impact within the first quarter of 2024 and created a foundry courting between its Intel Merchandise trade (jointly CCG, DCAI and NEX) and its Intel Foundry trade (together with Foundry Era Building, Foundry Production and Provide Chain and Foundry Services and products, previously IFS). The foundry working type is designed to reshape operational dynamics and force higher transparency, duty, and concentrate on prices and potency. In furtherance of Intel’s inside foundry working type, Intel introduced within the 0.33 quarter of 2024 its intent to ascertain Intel Foundry as an impartial subsidiary. The corporate additionally prior to now introduced its intent to perform Altera® as a standalone trade starting within the first quarter of 2024. Altera was once prior to now incorporated in DCAI’s phase effects. Because of those adjustments, the corporate changed its phase reporting within the first quarter of 2024 to align to this new working type. All prior-period phase knowledge has been retrospectively adjusted to replicate the way in which the corporate internally receives knowledge and manages and screens its working phase functionality beginning in fiscal yr 2024. There are not any adjustments to Intel’s consolidated monetary statements for any prior classes.
Trade Unit Earnings and Developments
Q3 2024
vs. Q3 2023
Intel Merchandise:
Shopper Computing Team (CCG)
$7.3 billion
down
7%
Knowledge Heart and AI (DCAI)
$3.3 billion
up
9%
Community and Edge (NEX)
$1.5 billion
up
4%
General Intel Merchandise earnings
$12.2 billion
down
2%
Intel Foundry
$4.4 billion
down
8%
All different:
Altera
$412 million
down
44%
Mobileye
$485 million
down
8%
Different
$142 million
down
24%
General all different earnings
$1,039 million
down
28%
Intersegment eliminations
$(4.3) billion
General web earnings
$13.3 billion
down
6%
Intel Merchandise Highlights
Intel introduced plans with AMD to create the x86 Ecosystem Advisory Team, bringing in combination leaders from around the trade to assist form the way forward for x86. The Ecosystem Advisory Team is desirous about simplifying tool construction, making sure interoperability and interface consistency throughout distributors and offering builders with usual architectural gear and directions. Broadcom, Dell, Google, HPE, HP Inc., Lenovo, Meta, Microsoft, Oracle, Purple Hat have signed on as founding contributors.
CCG: Intel continues to steer the AI PC class and is on course to send greater than 100 million AI PCs through the top of 2025. In September, Intel introduced its Intel® Core™ Extremely 200V collection processors, code-named Lunar Lake, turning in a number of extra hours of battery lifestyles and positive aspects in functionality, graphics and AI. This month, Intel introduced the brand new Intel® Core™ Extremely 200S processors, code-named Arrow Lake, that can scale AI PC functions to desktop platforms and usher within the first fanatic desktop AI PCs.
DCAI: Intel introduced Intel® Xeon®, doubling the functionality of the prior era with larger core counts, reminiscence bandwidth, and embedded AI acceleration. Intel additionally introduced its Intel® Gaudi® 3 AI accelerators, turning in two times the networking bandwidth and 1.5x the reminiscence bandwidth of its predecessor for massive language type potency. IBM and Intel introduced a world collaboration to deploy Intel Gaudi 3 AI accelerators as a provider on IBM Cloud, aiming to assist extra cost-effectively scale endeavor AI and force innovation underpinned with safety and resiliency.
NEX: Intel accomplished a vital design win previous this month with KDDI, a big world telecom, pronouncing its choice of Samsung’s vRAN 3.0 resolution powered through 4th Gen Intel® Xeon® Scalable processors with Intel vRAN Spice up.
Intel Foundry Highlights
Intel’s 5th node in 4 years, Intel 18A, will entire a historical tempo of design and procedure innovation, returning Intel to procedure management. Intel 18A is wholesome and continues to growth smartly, and the corporate’s two lead merchandise, Panther Lake for shopper and Clearwater Woodland for servers, have met early Intel 18A milestones forward of subsequent yr’s launches.
Intel and Amazon Internet Services and products (AWS) are finalizing a multi-year, multi-billion-dollar dedication to make bigger the corporations’ present partnership to incorporate a brand new customized Xeon 6 chip for AWS on Intel 3 and a brand new AI cloth chip for AWS on Intel 18A.
The Biden-Harris Management introduced that Intel was once awarded as much as $3 billion in direct investment underneath the CHIPS and Science Act for the Safe Enclave program. This system is designed to make bigger the depended on production of modern semiconductors for the U.S. executive and give a boost to the home semiconductor provide chain.
Intel introduced its goal to ascertain Intel Foundry as an impartial subsidiary. This construction supplies clearer separation for exterior foundry consumers and providers between Intel Foundry and Intel Merchandise. It additionally offers Intel long run flexibility to judge impartial resources of investment and optimize the capital construction of Intel Foundry and Intel Merchandise.
Trade Outlook
Intel’s steerage for the fourth quarter of 2024 comprises each GAAP and non-GAAP estimates as follows:
This autumn 2024
GAAP
Non-GAAP
Earnings
$13.3-14.3 billion
Gross Margin
36.5%
39.5%
Tax Price
(50)%
13%
Income (Loss) Consistent with Percentage Due to Intel—Diluted
$(0.24)
$0.12
Reconciliations between GAAP and non-GAAP monetary measures are incorporated underneath. Exact effects would possibly range materially from Intel’s trade outlook because of, amongst different issues, the criteria described underneath “Ahead-Taking a look Statements” underneath. The gross margin and EPS outlook are in line with the mid-point of the earnings vary.
Income Webcast
Intel will hang a public webcast at 2 p.m. PDT as of late to talk about the consequences for its 0.33 quarter of 2024. The reside public webcast will also be accessed on Intel’s Investor Members of the family web page at www.intc.com. The corresponding profits presentation and webcast replay can be to be had at the website.
Ahead-Taking a look Statements
This free up accommodates forward-looking statements that contain various dangers and uncertainties. Phrases similar to “boost up”, “reach”, “intention”, “ambitions”, “wait for”, “consider”, “dedicated”, “proceed”, “may just”, “designed”, “estimate”, “be expecting”, “forecast”, “long run”, “targets”, “develop”, “steerage”, “intend”, “most likely”, “would possibly”, “would possibly”, “milestones”, “subsequent era”, “goal”, “on course”, “alternative”, “outlook”, “pending”, “plan”, “place”, “imaginable”, “attainable”, “expect”, “growth”, “ramp”, “roadmap”, “search”, “will have to”, “try”, “objectives”, “to be”, “upcoming”, “will”, “would”, and diversifications of such phrases and equivalent expressions are meant to spot such forward-looking statements, which would possibly come with statements referring to:
our trade plans and technique and expected advantages therefrom, together with with appreciate to our IDM 2.0 technique, Sensible Capital technique, partnerships with Apollo and Brookfield, inside foundry type, up to date reporting construction, and AI technique;
projections of our long run monetary functionality, together with long run earnings, gross margins, capital expenditures, and coins flows;
projected prices and yield tendencies;
long run coins necessities, the supply, makes use of, sufficiency, and price of capital assets, and resources of investment, together with for long run capital and R&D investments and for returns to stockholders, similar to inventory repurchases and dividends, and credit score rankings expectancies;
long run merchandise, services and products, and applied sciences, and the anticipated targets, timeline, ramps, growth, availability, manufacturing, legislation, and advantages of such merchandise, services and products, and applied sciences, together with long run procedure nodes and packaging generation, product roadmaps, schedules, long run product architectures, expectancies referring to procedure functionality, per-watt parity, and metrics, and expectancies referring to product and procedure management;
funding plans and affects of funding plans, together with in the United States and in a foreign country;
inside and exterior production plans, together with long run inside production volumes, production enlargement plans and the financing therefor, and exterior foundry utilization;
long run manufacturing capability and product provide;
provide expectancies, together with referring to constraints, boundaries, pricing, and trade shortages;
plans and targets associated with Intel’s foundry trade, together with with appreciate to expected consumers, long run production capability and repair, generation, and IP choices;
anticipated timing and have an effect on of acquisitions, divestitures, and different important transactions, together with the sale of our NAND reminiscence trade;
anticipated of entirety and affects of restructuring actions and cost-saving or potency projects;
long run social and environmental functionality targets, measures, methods, and effects;
our expected expansion, long run marketplace percentage, and tendencies in our companies and operations;
projected expansion and tendencies in markets related to our companies;
expected tendencies and affects associated with trade part, substrate, and foundry capability usage, shortages, and constraints;
expectancies referring to executive incentives;
long run generation tendencies and traits, similar to AI;
long run macro environmental and financial stipulations;
geopolitical tensions and conflicts and their attainable have an effect on on our trade;
tax- and accounting-related expectancies;
expectancies referring to {our relationships} with positive sanctioned events; and
different characterizations of long run occasions or instances.
Such statements contain many dangers and uncertainties that would reason our exact effects to range materially from the ones expressed or implied, together with the ones related to:
the prime degree of pageant and speedy technological trade in our trade;
the numerous long-term and inherently dangerous investments we’re making in R&D and production amenities that would possibly not understand a positive go back;
the complexities and uncertainties in creating and imposing new semiconductor merchandise and production procedure applied sciences;
our talent to time and scale our capital investments correctly and effectively protected favorable choice financing preparations and executive grants;
imposing new trade methods and making an investment in new companies and applied sciences;
adjustments in call for for our merchandise;
macroeconomic stipulations and geopolitical tensions and conflicts, together with geopolitical and industry tensions between the United States and China, the affects of Russia’s battle on Ukraine, tensions and struggle affecting Israel and the Center East, and emerging tensions between mainland China and Taiwan;
the evolving marketplace for merchandise with AI functions;
our complicated world provide chain, together with from disruptions, delays, industry tensions and conflicts, or shortages;
product defects, errata and different product problems, specifically as we expand next-generation merchandise and put in force next-generation production procedure applied sciences;
attainable safety vulnerabilities in our merchandise;
expanding and evolving cybersecurity threats and privateness dangers;
IP dangers together with linked litigation and regulatory lawsuits;
the want to draw in, retain, and inspire key skill;
strategic transactions and investments;
sales-related dangers, together with buyer focus and using vendors and different 0.33 events;
our considerably decreased go back of capital in recent times;
our debt duties and our talent to get admission to resources of capital;
complicated and evolving regulations and rules throughout many jurisdictions;
fluctuations in forex trade charges;
adjustments in our efficient tax price;
catastrophic occasions;
environmental, well being, protection, and product rules;
our projects and new felony necessities with appreciate to company accountability issues; and
different dangers and uncertainties described on this free up, our 2023 Shape 10-Okay, and our different filings with the SEC.
Given those dangers and uncertainties, readers are cautioned to not position undue reliance on such forward-looking statements. Readers are prompt to rigorously overview and believe the quite a lot of disclosures made on this free up and in different paperwork we document every so often with the SEC that expose dangers and uncertainties that can have an effect on our trade.
Until particularly indicated in a different way, the forward-looking statements on this free up don’t replicate the prospective have an effect on of any divestitures, mergers, acquisitions, or different trade combos that experience no longer been finished as of the date of this submitting. As well as, the forward-looking statements on this free up are in line with control’s expectancies as of the date of this free up, until an previous date is specified, together with expectancies in line with third-party knowledge and projections that control believes to be respected. We don’t adopt, and expressly disclaim any responsibility, to replace such statements, whether or not because of new knowledge, new traits, or in a different way, except for to the level that disclosure is also required through legislation.
About Intel
Intel (Nasdaq: INTC) is an trade chief, growing world-changing generation that allows world growth and enriches lives. Impressed through Moore’s Legislation, we regularly paintings to advance the design and production of semiconductors to assist deal with our consumers’ largest demanding situations. By way of embedding intelligence within the cloud, community, edge and each and every roughly computing tool, we unharness the opportunity of knowledge to turn into trade and society for the easier. To be informed extra about Intel’s inventions, move to newsroom.intel.com and intel.com.
© Intel Company. Intel, the Intel emblem, and different Intel marks are logos of Intel Company or its subsidiaries. Different names and types is also claimed as the valuables of others.
Intel Company
Consolidated Condensed Statements of Source of revenue and Different Data
3 Months Ended
(In Tens of millions, Apart from Consistent with Percentage Quantities; Unaudited)
Sep 28, 2024
Sep 30, 2023
Web earnings
$
13,284
$
14,158
Value of gross sales
11,287
8,140
Gross margin
1,997
6,018
Analysis and construction
4,049
3,870
Advertising, basic, and administrative
1,383
1,340
Restructuring and different fees
5,622
816
Running bills
11,054
6,026
Running source of revenue (loss)
(9,057
)
(8
)
Features (losses) on fairness investments, web
(159
)
(191
)
Pastime and different, web
130
147
Source of revenue (loss) prior to taxes
(9,086
)
(52
)
Provision for (have the benefit of) taxes
7,903
(362
)
Web source of revenue (loss)
(16,989
)
310
Much less: web source of revenue (loss) due to non-controlling pursuits
(350
)
13
Web source of revenue (loss) due to Intel
$
(16,639
)
$
297
Income (loss) according to percentage due to Intel—elementary
$
(3.88
)
$
0.07
Income (loss) according to percentage due to Intel—diluted
$
(3.88
)
$
0.07
Weighted moderate stocks of not unusual inventory remarkable:
Elementary
4,292
4,202
Diluted
4,292
4,229
3 Months Ended
(In Tens of millions; Unaudited)
Sep 28, 2024
Sep 30, 2023
Income according to percentage of not unusual inventory knowledge:
Weighted moderate stocks of not unusual inventory remarkable—elementary
4,292
4,202
Dilutive impact of worker fairness incentive plans
—
27
Weighted moderate stocks of not unusual inventory remarkable—diluted
4,292
4,229
Different knowledge:
(In 1000’s; Unaudited)
Sep 28, 2024
Jun 29, 2024
Sep 30, 2023
Staff
Intel
115.0
116.5
116.6
Mobileye and different subsidiaries
5.4
5.3
4.8
NAND1
3.7
3.5
3.8
General Intel
124.1
125.3
125.2
1 Staff of the NAND reminiscence trade, which we divested to SK hynix on of entirety of the primary remaining on December 29, 2021 and entirely deconsolidated in Q1 2022. Upon of entirety of the second one remaining of the divestiture, which stays pending and topic to remaining stipulations, the NAND staff might be excluded from the full Intel worker quantity.
Intel Company
Consolidated Condensed Steadiness Sheets
(In Tens of millions; Unaudited)
Sep 28, 2024
Dec 30, 2023
Belongings
Present belongings:
Money and coins equivalents
$
8,785
$
7,079
Brief-term investments
15,301
17,955
Accounts receivable, web
3,121
3,402
Inventories
Uncooked fabrics
1,434
1,166
Paintings in procedure
6,971
6,203
Completed items
3,657
3,758
12,062
11,127
Different present belongings
6,868
3,706
General present belongings
46,137
43,269
Assets, plant, and gear, web
104,248
96,647
Fairness investments
5,496
5,829
Goodwill
24,680
27,591
Recognized intangible belongings, web
3,975
4,589
Different long-term belongings
9,006
13,647
General belongings
$
193,542
$
191,572
Liabilities and stockholders’ fairness
Present liabilities:
Accounts payable
11,074
8,578
Accumulated repayment and advantages
5,015
3,655
Brief-term debt
3,765
2,288
Source of revenue taxes payable
2,440
1,107
Different gathered liabilities
12,865
12,425
General present liabilities
35,159
28,053
Debt
46,471
46,978
Different long-term liabilities
7,048
6,576
Stockholders’ fairness:
Not unusual inventory and capital in way over par price, 4,309 issued and remarkable (4,228 issued and remarkable as of December 30, 2023)
50,665
36,649
Amassed different complete source of revenue (loss)
(185
)
(215
)
Retained profits
49,052
69,156
General Intel stockholders’ fairness
99,532
105,590
Non-controlling pursuits
5,332
4,375
General stockholders’ fairness
104,864
109,965
General liabilities and stockholders’ fairness
$
193,542
$
191,572
Intel Company
Consolidated Condensed Statements of Money Flows
9 Months Ended
(In Tens of millions; Unaudited)
Sep 28, 2024
Sep 30, 2023
Money and coins equivalents, starting of era
$
7,079
$
11,144
Money flows equipped through (used for) working actions:
Web source of revenue (loss)
(19,080
)
(985
)
Changes to reconcile web source of revenue (loss) to web coins equipped through working actions:
Depreciation
7,651
5,753
Percentage-based repayment
2,759
2,433
Restructuring and different fees
3,626
718
Amortization of intangibles
1,081
1,336
(Features) losses on fairness investments, web
75
47
Deferred taxes
6,368
(1,376
)
Impairments and web (acquire) loss on retirement of assets, plant, and gear
2,290
(87
)
Adjustments in belongings and liabilities:
Accounts receivable
282
1,290
Inventories
(969
)
1,758
Accounts payable
566
(1,082
)
Accumulated repayment and advantages
1,384
(1,171
)
Source of revenue taxes
(930
)
(1,300
)
Different belongings and liabilities
20
(487
)
General changes
24,203
7,832
Web coins equipped through (used for) working actions
5,123
6,847
Money flows equipped through (used for) making an investment actions:
Additions to assets, plant, and gear
(18,110
)
(19,054
)
Proceeds from capital-related executive incentives
725
649
Purchases of momentary investments
(31,519
)
(37,287
)
Maturities and gross sales of momentary investments
34,268
36,725
Different making an investment
144
244
Web coins equipped through (used for) making an investment actions
(14,492
)
(18,723
)
Money flows equipped through (used for) financing actions:
Issuance of industrial paper, web of issuance prices
7,349
—
Reimbursement of industrial paper
(7,349
)
(3,944
)
Bills on finance rentals
—
(96
)
Spouse contributions
12,278
1,106
Proceeds from gross sales of subsidiary stocks
—
2,423
Issuance of long-term debt, web of issuance prices
2,975
11,391
Reimbursement of debt
(2,288
)
(423
)
Proceeds from gross sales of not unusual inventory via worker fairness incentive plans
986
1,037
Fee of dividends to stockholders
(1,599
)
(2,561
)
Different financing
(1,277
)
(580
)
Web coins equipped through (used for) financing actions
11,075
8,353
Web building up (lower) in coins and coins equivalents
1,706
(3,523
)
Money and coins equivalents, finish of era
$
8,785
$
7,621
Intel Company
Supplemental Running Section Effects
3 Months Ended
(In Tens of millions)
Sep 28, 2024
Sep 30, 2023
Running phase earnings:
Intel Merchandise:
Shopper Computing Team
Desktop
$
2,070
$
2,753
Pocket book
4,888
4,503
Different
372
611
7,330
7,867
Knowledge Heart and AI
3,349
3,076
Community and Edge
1,511
1,450
General Intel Merchandise earnings
$
12,190
$
12,393
Intel Foundry
$
4,352
$
4,732
All different
Altera
412
735
Mobileye
485
530
Different
142
187
General all different earnings
1,039
1,452
General working phase earnings
$
17,581
$
18,577
Intersegment eliminations
(4,297
)
(4,419
)
General web earnings
$
13,284
$
14,158
Section working source of revenue (loss):
Intel Merchandise:
Shopper Computing Team
$
2,722
$
2,780
Knowledge Heart and AI
347
391
Community and Edge
268
100
General Intel Merchandise working source of revenue (loss)
$
3,337
$
3,271
Intel Foundry
$
(5,844
)
$
(1,407
)
All Different
Altera
9
263
Mobileye
78
170
Different
(42
)
(198
)
General all different working source of revenue (loss)
$
45
$
235
General phase working source of revenue (loss)
$
(2,462
)
$
2,099
Intersegment eliminations
(79
)
5
Company unallocated bills
(6,516
)
(2,112
)
General working source of revenue (loss)
$
(9,057
)
$
(8
)
For details about our working segments, together with the character of phase revenues and bills, and a reconciliation of our working phase earnings and working source of revenue (loss) to our consolidated effects, discuss with our Shape 10-Okay filed on January 26, 2024, Shape 8-Okay furnished on April 2, 2024 and 10-Q filed on October 31, 2024.
Intel Company
Clarification of Non-GAAP Measures
Along with disclosing monetary ends up in accordance with US GAAP, this record accommodates references to the non-GAAP monetary measures underneath. We consider those non-GAAP monetary measures supply buyers with helpful supplemental details about our working functionality, allow comparability of monetary tendencies and effects between classes the place positive pieces would possibly range impartial of industrial functionality, and make allowance for higher transparency with appreciate to key metrics utilized by control in working our trade and measuring our functionality. Those non-GAAP monetary measures are utilized in our performance-based RSUs and our coins bonus plans.
Our non-GAAP monetary measures replicate changes in line with a number of of the next pieces, in addition to the linked results to source of revenue taxes and web source of revenue (loss) due to non-controlling pursuits results. Source of revenue tax results are calculated the use of a set long-term projected tax price of 13% throughout all changes. We mission this long-term non-GAAP tax price on a minimum of an annual foundation the use of a five-year non-GAAP monetary projection that excludes the source of revenue tax results of each and every adjustment. The projected non-GAAP tax price additionally considers elements similar to our tax construction, our tax positions in quite a lot of jurisdictions, and key regulation in important jurisdictions the place we perform. This long-term non-GAAP tax price is also topic to modify for plenty of causes, together with the abruptly evolving world tax surroundings, important adjustments in our geographic profits combine, or adjustments to our technique or trade operations. Control makes use of this non-GAAP tax price in managing inside short- and long-term working plans and in comparing our functionality; we consider this method facilitates comparability of our working effects and offers helpful analysis of our present working functionality. Non-GAAP changes due to non-controlling pursuits are calculated through adjusting for the minority stockholder portion of non-GAAP changes we make for related acquisition-related prices, share-based repayment, restructuring and different fees, and source of revenue tax results, as appropriate to each and every majority-owned subsidiary.
Our non-GAAP monetary measures will have to no longer be thought to be an alternative to, or awesome to, monetary measures calculated in keeping with US GAAP, and the monetary effects calculated in keeping with US GAAP and reconciliations from those effects will have to be moderately evaluated.
Non-GAAP adjustment or measure
Definition
Usefulness to control and buyers
Acquisition-related changes
Amortization of acquisition-related intangible belongings is composed of amortization of intangible belongings similar to advanced generation, manufacturers, and buyer relationships received in reference to trade combos. Fees associated with the amortization of those intangibles are recorded inside of each charge of gross sales and MG&A in our US GAAP monetary statements. Amortization fees are recorded over the estimated helpful lifetime of the linked received intangible asset, and thus are in most cases recorded over a couple of years.
We exclude amortization fees for our acquisition-related intangible belongings for functions of calculating positive non-GAAP measures as a result of those fees are inconsistent in measurement and are considerably impacted through the timing and valuation of our acquisitions. Those changes facilitate an invaluable analysis of our present working functionality and comparability to our previous working functionality and supply buyers with further way to judge charge and expense tendencies.
Percentage-based repayment
Percentage-based repayment is composed of fees associated with our worker fairness incentive plans.
We exclude fees associated with share-based repayment for functions of calculating positive non-GAAP measures as a result of we consider those changes supply comparison to look corporate effects and since those fees aren’t considered through control as a part of our core working functionality. We consider those changes supply buyers with an invaluable view, throughout the eyes of control, of our core trade type, how control lately evaluates core operational functionality, and extra way to judge expense tendencies, together with compared to different peer firms.
Restructuring and different fees
Restructuring fees are prices related to a restructuring plan and are basically associated with worker severance and get advantages preparations. Q3 2024 comprises fees related to the 2024 Restructuring Plan basically constituted of cash-based worker severance and get advantages preparations, and coins and non-cash fees associated with actual property exits and consolidations, in addition to non-cash building in growth asset impairments as a consequence of trade go out actions. Different fees come with periodic goodwill and asset impairments, and different prices related to positive non-core actions. Q3 2024 comprises non-cash fees as a consequence of the impairment of goodwill and likely received intangible belongings. Q3 2023 comprises two felony linked charges, which we don’t be expecting to recur, in relation to an EC-imposed advantageous and a termination price in relation to Tower.
We exclude restructuring and different fees, together with any changes to fees recorded in prior classes, for functions of calculating positive non-GAAP measures as a result of those prices don’t replicate our core working functionality. Those changes facilitate an invaluable analysis of our core working functionality and comparisons to previous working effects and supply buyers with further way to judge expense tendencies.
(Features) losses on fairness investments, web
(Features) losses on fairness investments, web is composed of ongoing mark-to-market changes on marketable fairness securities, observable worth changes on non-marketable fairness securities, linked impairment fees, and the positive aspects (losses) from the sale of fairness investments and different.
We exclude those non-operating positive aspects and losses for functions of calculating positive non-GAAP measures as it supplies comparison between classes. The exclusion displays how control evaluates the core operations of the trade.
(Features) losses from divestiture
(Features) losses are known on the shut of a divestiture, or over a specified deferral era when deferred attention is gained on the time of remaining. In keeping with our ongoing legal responsibility underneath the NAND wafer production and sale settlement entered into in reference to the primary remaining of the sale of our NAND reminiscence trade on December 29, 2021, a portion of the preliminary remaining attention was once deferred and might be known between first and 2d remaining.
We exclude positive aspects or losses as a consequence of divestitures for functions of calculating positive non-GAAP measures as a result of they don’t replicate our present working functionality. Those changes facilitate an invaluable analysis of our present working functionality and comparisons to previous working effects.
Deferred tax belongings valuation allowances
A non-cash fee recorded to provision for (have the benefit of) source of revenue taxes associated with a discreet valuation allowance recorded towards our US deferred tax belongings.
We excluded a discrete non-cash fee in Q3 2024 associated with a valuation allowance established towards our US deferred tax belongings because of a historic cumulative loss for GAAP functions. We excluded the discreet valuation allowance when calculating positive non-GAAP measures as there’s no such historic cumulative loss on a non-GAAP foundation; and on account of the scale of the fee, the adjustment facilitates an invaluable analysis of our core working functionality and comparisons to our previous working effects.
Adjusted unfastened coins waft
We reference a non-GAAP monetary measure of adjusted unfastened coins waft, which is utilized by control when assessing our resources of liquidity, capital assets, and high quality of profits. Adjusted unfastened coins waft is working coins waft adjusted for (1) purchases of assets, plant, and gear, together with purchases the place the seller has prolonged cost phrases to us, web of proceeds from capital-related executive incentives and spouse contributions, and (2) bills on finance rentals.
This non-GAAP monetary measure is useful in figuring out our capital necessities and resources of liquidity through offering an extra way to judge the money waft tendencies of our trade.
Web capital spending
We reference a non-GAAP monetary measure of web capital spending, which is additions to assets, plant, and gear, web of proceeds from capital-related executive incentives and spouse contributions.
We consider this measure supplies buyers with helpful supplemental details about our capital funding actions and capital offsets, and permits for higher transparency with appreciate to a key metric utilized by control in working our trade and measuring our functionality.
Intel Company
Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals
Set forth underneath are reconciliations of the non-GAAP monetary measure to probably the most at once similar US GAAP monetary measure. Those non-GAAP monetary measures will have to no longer be thought to be an alternative to, or awesome to, monetary measures calculated in keeping with US GAAP, and the reconciliations from US GAAP to Non-GAAP actuals will have to be moderately evaluated. Please discuss with “Clarification of Non-GAAP Measures” on this record for an in depth rationalization of the changes made to the similar US GAAP measures, the techniques control makes use of the non-GAAP measures, and the the explanation why control believes the non-GAAP measures supply helpful knowledge for buyers.
3 Months Ended
(In Tens of millions, Apart from Consistent with Percentage Quantities)
Sep 28, 2024
Sep 30, 2023
GAAP gross margin
$
1,997
$
6,018
Acquisition-related changes
224
301
Percentage-based repayment
172
164
Non-GAAP gross margin
$
2,393
$
6,483
GAAP gross margin proportion
15.0
%
42.5
%
Acquisition-related changes
1.7
%
2.1
%
Percentage-based repayment
1.3
%
1.2
%
Non-GAAP gross margin proportion
18.0
%
45.8
%
GAAP R&D and MG&A
$
5,432
$
5,210
Acquisition-related changes
(42
)
(43
)
Percentage-based repayment
(628
)
(608
)
Non-GAAP R&D and MG&A
$
4,762
$
4,559
GAAP working source of revenue (loss)
$
(9,057
)
$
(8
)
Acquisition-related changes
266
344
Percentage-based repayment
800
772
Restructuring and different fees
5,622
816
Non-GAAP working source of revenue (loss)
$
(2,369
)
$
1,924
GAAP working margin
(68.2
)%
(0.1
)%
Acquisition-related changes
2.0
%
2.4
%
Percentage-based repayment
6.0
%
5.5
%
Restructuring and different fees
42.3
%
5.8
%
Non-GAAP working margin
(17.8
)%
13.6
%
GAAP tax price
(87.0
)%
696.2
%
Deferred tax belongings valuation allowance
121.0
%
—
%
Source of revenue tax results
(21.0
)%
(683.2
)%
Non-GAAP tax price
13.0
%
13.0
%
GAAP web source of revenue (loss) due to Intel
$
(16,639
)
$
297
Acquisition-related changes
266
344
Percentage-based repayment
800
772
Restructuring and different fees
5,622
816
(Features) losses on fairness investments, web
159
191
(Features) losses from divestiture
(39
)
(36
)
Changes due to non-controlling hobby
(344
)
(18
)
Deferred tax belongings valuation allowances
9,925
—
Source of revenue tax results
(1,726
)
(627
)
Non-GAAP web source of revenue (loss) due to Intel
$
(1,976
)
$
1,739
(In Tens of millions, Apart from Consistent with Percentage Quantities)
Sep 28, 2024
Sep 30, 2023
GAAP profits (loss) according to percentage due to Intel—diluted
$
(3.88
)
$
0.07
Acquisition-related changes
0.06
0.08
Percentage-based repayment
0.19
0.18
Restructuring and different fees
1.31
0.19
(Features) losses on fairness investments, web
0.04
0.05
(Features) losses from divestiture
(0.01
)
(0.01
)
Changes due to non-controlling hobby
(0.08
)
—
Deferred tax belongings valuation allowance
2.31
—
Source of revenue tax results
(0.40
)
(0.15
)
Non-GAAP profits (loss) according to percentage due to Intel—diluted
$
(0.46
)
$
0.41
GAAP web coins equipped through (used for) working actions
$
4,054
$
5,824
Web acquire of assets, plant, and gear
(6,756
)
(4,881
)
Bills on finance rentals
—
—
Adjusted unfastened coins waft
$
(2,702
)
$
943
GAAP web coins equipped through (used for) making an investment actions
$
(2,764
)
$
(7,394
)
GAAP web coins equipped through (used for) financing actions
$
(3,792
)
$
842
Intel Company
Supplemental Reconciliations of GAAP Outlook to Non-GAAP Outlook
Set forth underneath are reconciliations of the non-GAAP monetary measure to probably the most at once similar US GAAP monetary measure. Those non-GAAP monetary measures will have to no longer be thought to be an alternative to, or awesome to, monetary measures calculated in keeping with US GAAP, and the monetary outlook ready in keeping with US GAAP and the reconciliations from this Trade Outlook will have to be moderately evaluated. Please discuss with “Clarification of Non-GAAP Measures” on this record for an in depth rationalization of the changes made to the similar US GAAP measures, the techniques control makes use of the non-GAAP measures, and the the explanation why control believes the non-GAAP measures supply helpful knowledge for buyers.
This autumn 2024 Outlook1
Roughly
GAAP gross margin proportion
36.5
%
Acquisition-related changes
1.6
%
Percentage-based repayment
1.4
%
Non-GAAP gross margin proportion
39.5
%
GAAP tax price
(50
)%
Source of revenue tax results
63
%
Non-GAAP tax price
13
%
GAAP profits (loss) according to percentage due to Intel—diluted
$
(0.24
)
Acquisition-related changes
0.06
Percentage-based repayment
0.17
Restructuring and different fees
0.08
(Features) losses from divestiture
(0.01
)
Changes due to non-controlling hobby
—
Source of revenue tax results
0.06
Non-GAAP profits (loss) according to percentage due to Intel—diluted
$
0.12
1 Non-GAAP gross margin proportion and non-GAAP EPS outlook in line with the mid-point of the earnings vary.
Intel Company
Supplemental Reconciliations of Different GAAP to Non-GAAP Ahead-Taking a look Estimates
Set forth underneath are reconciliations of the non-GAAP monetary measure to probably the most at once similar US GAAP monetary measure. Those non-GAAP monetary measures will have to no longer be thought to be an alternative to, or awesome to, monetary measures calculated in keeping with US GAAP, and the reconciliations will have to be moderately evaluated. Please discuss with “Clarification of Non-GAAP Measures” on this record for an in depth rationalization of the changes made to the similar US GAAP measures, the techniques control makes use of the non-GAAP measures, and the the explanation why control believes the non-GAAP measures supply helpful knowledge for buyers.
(In Billions)
Complete-Yr 2024
Complete-Yr 2025
Roughly
Roughly
GAAP additions to assets, plant and gear (gross capital expenditures)
$
25.0
$20.0 – $23.0
Proceeds from capital-related executive incentives
(1.0
)
(4.0 – 6.0)
Spouse contributions, web
(13.0
)
(4.0 – 5.0)
Non-GAAP web capital spending
$
11.0
$12.0 – $14.0
GAAP R&D and MG&A
$
20.0
Acquisition-related changes
(0.1
)
Percentage-based repayment
(2.4
)
Non-GAAP R&D and MG&A
$
17.5
View supply model on businesswire.com:
Kylie Altman
Investor Members of the family
1-916-356-0320
kylie.altman@intel.com
Sophie Gained
Media Members of the family
1-408-653-0475
sophie.gained@intel.com
Supply: Intel Company
Launched Oct 31, 2024 • 4:01 PM EDT
