Document
false--12-28Q120192019-03-300000050863YesfalseLarge Accelerated Filerfalse65342000000674380000000.600.634516000000447700000045160000004477000000290000000P40YP1Y
0000050863
2018-12-30
2019-03-30
0000050863
us-gaap:FairValueHedgingMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2018-12-30
2019-03-30
0000050863
us-gaap:NondesignatedMember
2018-12-30
2019-03-30
0000050863
2019-03-30
0000050863
2017-12-31
2018-03-31
0000050863
2018-12-29
0000050863
2017-12-30
0000050863
2018-03-31
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2019-03-30
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2018-12-30
2019-03-30
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2018-12-29
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-03-30
0000050863
us-gaap:RetainedEarningsMember
2017-12-31
2018-03-31
0000050863
us-gaap:RetainedEarningsMember
2018-12-30
2019-03-30
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2017-12-31
2018-03-31
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-30
0000050863
us-gaap:RetainedEarningsMember
2018-12-29
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-31
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2017-12-31
0000050863
2017-12-31
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-29
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-03-31
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-31
2018-03-31
0000050863
us-gaap:RetainedEarningsMember
2017-12-30
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2018-03-31
0000050863
us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember
2017-12-30
0000050863
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-30
2019-03-30
0000050863
us-gaap:RetainedEarningsMember
2018-03-31
0000050863
us-gaap:RetainedEarningsMember
2019-03-30
0000050863
us-gaap:RetainedEarningsMember
2017-12-31
0000050863
us-gaap:OtherNoncurrentAssetsMember
2019-03-30
0000050863
us-gaap:AccountingStandardsUpdate201602Member
2018-12-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
2019-03-30
0000050863
us-gaap:AccruedLiabilitiesMember
2019-03-30
0000050863
2017-01-01
2017-12-30
0000050863
2017-12-31
2018-12-29
0000050863
srt:MaximumMember
2019-03-30
0000050863
us-gaap:AccountingStandardsUpdate201602Member
us-gaap:OtherNoncurrentAssetsMember
2018-12-30
0000050863
srt:MinimumMember
2019-03-30
0000050863
intc:MobileyeMember
2017-12-31
2018-03-31
0000050863
intc:ProgrammableSolutionsGroupMember
2018-12-30
2019-03-30
0000050863
intc:DataCenterGroupMember
2018-12-30
2019-03-30
0000050863
intc:InternetOfThingsGroupMember
2018-12-30
2019-03-30
0000050863
us-gaap:AllOtherSegmentsMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
intc:InternetOfThingsGroupMember
2017-12-31
2018-03-31
0000050863
intc:DCGPlatformMember
2018-12-30
2019-03-30
0000050863
intc:ClientComputingGroupMember
2017-12-31
2018-03-31
0000050863
intc:DataCenterGroupMember
2017-12-31
2018-03-31
0000050863
intc:ClientComputingGroupMember
2018-12-30
2019-03-30
0000050863
intc:MobileyeMember
2018-12-30
2019-03-30
0000050863
intc:InternetOfThingsGroupMember
2017-12-31
2018-03-31
0000050863
intc:NonVolatileMemorySolutionsGroupMember
2017-12-31
2018-03-31
0000050863
intc:ProgrammableSolutionsGroupMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
intc:DataCenterGroupMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
intc:ClientComputingGroupMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
intc:InternetOfThingsGroupMember
2018-12-30
2019-03-30
0000050863
intc:PlatformMember
intc:ClientComputingGroupMember
2017-12-31
2018-03-31
0000050863
intc:PlatformMember
intc:InternetOfThingsGroupMember
2018-12-30
2019-03-30
0000050863
us-gaap:AllOtherSegmentsMember
2018-12-30
2019-03-30
0000050863
intc:OtherProductOrServiceMember
intc:ClientComputingGroupMember
2018-12-30
2019-03-30
0000050863
intc:OtherProductOrServiceMember
intc:DataCenterGroupMember
2018-12-30
2019-03-30
0000050863
intc:DCGPlatformMember
2017-12-31
2018-03-31
0000050863
intc:PlatformMember
intc:ClientComputingGroupMember
2018-12-30
2019-03-30
0000050863
intc:NonVolatileMemorySolutionsGroupMember
2018-12-30
2019-03-30
0000050863
intc:PlatformMember
intc:InternetOfThingsGroupMember
2017-12-31
2018-03-31
0000050863
intc:PlatformMember
2018-12-30
2019-03-30
0000050863
intc:NotebookPlatformMember
2018-12-30
2019-03-30
0000050863
intc:OtherPlatformMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
2017-12-31
2018-03-31
0000050863
intc:NotebookPlatformMember
2017-12-31
2018-03-31
0000050863
intc:OtherProductOrServiceMember
2018-12-30
2019-03-30
0000050863
intc:PlatformMember
2017-12-31
2018-03-31
0000050863
intc:DesktopPlatformMember
2017-12-31
2018-03-31
0000050863
intc:DesktopPlatformMember
2018-12-30
2019-03-30
0000050863
intc:OtherPlatformMember
2018-12-30
2019-03-30
0000050863
intc:PrepaidSupplyAgreementsMember
2018-12-30
2019-03-30
0000050863
intc:PrepaidSupplyAgreementsMember
2018-12-29
0000050863
intc:PrepaidSupplyAgreementsMember
2019-03-30
0000050863
intc:SoftwareServicesandOtherMember
2019-03-30
0000050863
intc:SoftwareServicesandOtherMember
2018-12-29
0000050863
us-gaap:DebtSecuritiesMember
2018-12-30
2019-03-30
0000050863
intc:ImFlashTechnologiesLlcMember
2018-12-30
2019-03-30
0000050863
us-gaap:DebtSecuritiesMember
2017-12-31
2018-03-31
0000050863
intc:ASMLHoldingN.V.Member
2018-12-29
0000050863
intc:ImFlashTechnologiesLlcMember
2017-12-31
2018-03-31
0000050863
intc:ImFlashTechnologiesLlcMember
2019-03-30
0000050863
us-gaap:CorporateDebtSecuritiesMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
2018-12-29
0000050863
intc:GovernmentDebtSecuritiesMember
2019-03-30
0000050863
us-gaap:CorporateDebtSecuritiesMember
2018-12-29
0000050863
intc:GovernmentDebtSecuritiesMember
2018-12-29
0000050863
us-gaap:FixedIncomeSecuritiesMember
2019-03-30
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentAssetsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentAssetsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2019-03-30
0000050863
us-gaap:EquitySecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:ShortTermInvestmentsMember
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherNoncurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:CashEquivalentsMember
us-gaap:FixedIncomeSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:OtherLongTermInvestmentsMember
intc:GovernmentDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-29
0000050863
us-gaap:FairValueMeasurementsNonrecurringMember
2019-03-30
0000050863
us-gaap:FairValueMeasurementsNonrecurringMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:NondesignatedMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
2018-12-29
0000050863
us-gaap:OtherAssetsMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:ForeignExchangeContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-29
0000050863
us-gaap:OtherLiabilitiesMember
2019-03-30
0000050863
us-gaap:OtherLiabilitiesMember
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
2019-03-30
0000050863
us-gaap:OtherAssetsMember
us-gaap:InterestRateContractMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-03-30
0000050863
us-gaap:InterestRateContractMember
2018-12-30
2019-03-30
0000050863
us-gaap:InterestRateContractMember
2017-12-31
2018-03-31
0000050863
us-gaap:LongTermDebtMember
us-gaap:InterestRateSwapMember
us-gaap:FairValueHedgingMember
2018-12-30
2019-03-30
0000050863
us-gaap:LongTermDebtMember
us-gaap:InterestRateSwapMember
us-gaap:FairValueHedgingMember
2018-12-29
0000050863
us-gaap:LongTermDebtMember
us-gaap:InterestRateSwapMember
us-gaap:FairValueHedgingMember
2019-03-30
0000050863
us-gaap:LongTermDebtMember
us-gaap:InterestRateSwapMember
us-gaap:FairValueHedgingMember
2017-12-31
2018-12-29
0000050863
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2018-12-30
2019-03-30
0000050863
us-gaap:OtherContractMember
us-gaap:NondesignatedMember
intc:VariousMember
2017-12-31
2018-03-31
0000050863
us-gaap:NondesignatedMember
2017-12-31
2018-03-31
0000050863
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2017-12-31
2018-03-31
0000050863
us-gaap:ForeignExchangeContractMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2018-12-30
2019-03-30
0000050863
us-gaap:InterestRateContractMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2017-12-31
2018-03-31
0000050863
us-gaap:OtherContractMember
us-gaap:NondesignatedMember
intc:VariousMember
2018-12-30
2019-03-30
0000050863
us-gaap:InterestRateContractMember
2018-12-29
0000050863
us-gaap:InterestRateContractMember
2019-03-30
0000050863
us-gaap:ForeignExchangeContractMember
2018-12-29
0000050863
us-gaap:ForeignExchangeContractMember
2019-03-30
0000050863
us-gaap:OtherContractMember
2019-03-30
0000050863
us-gaap:OtherContractMember
2018-12-29
0000050863
us-gaap:ForeignExchangeContractMember
2018-12-30
2019-03-30
0000050863
us-gaap:ForeignExchangeContractMember
2017-12-31
2018-03-31
0000050863
intc:McAfeeShareholderLitigationMember
intc:McAfeeIncMember
2010-08-19
0000050863
intc:EcFineMember
2009-05-01
2009-05-31
0000050863
intc:ClassActionDomain
us-gaap:PendingLitigationMember
2018-12-30
2019-03-30
0000050863
intc:ShareholderDerivativeActionMember
us-gaap:PendingLitigationMember
2018-12-30
2019-03-30
0000050863
intc:SecuritiesClassActionDomain
us-gaap:PendingLitigationMember
2018-12-30
2019-03-30
0000050863
intc:McAfeeShareholderLitigationMember
intc:McAfeeIncMember
us-gaap:PendingLitigationMember
2012-06-01
2012-06-30
iso4217:USD
xbrli:pure
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:EUR
intc:lawsuit
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
| | |
| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| | For the quarterly period ended March 30, 2019. |
Or
|
| | |
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| | For the transition period from to |
Commission File Number 000-06217
INTEL CORPORATION
(Exact name of registrant as specified in its charter)
|
| | |
Delaware | | 94-1672743 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
2200 Mission College Boulevard, Santa Clara, California | | 95054-1549 |
(Address of principal executive offices) | | (Zip Code) |
(408) 765-8080
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
|
| | | | |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | Emerging growth company ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ
Shares outstanding of the Registrant’s common stock: |
| | |
Class | | Outstanding as of March 30, 2019 |
Common stock, $0.001 par value | | 4,477 million |
TABLE OF CONTENTS
THE ORGANIZATION OF OUR QUARTERLY REPORT ON FORM 10-Q
The order and presentation of content in our Quarterly Report on Form 10-Q (Form 10-Q) differs from the traditional U.S. Securities and Exchange Commission (SEC) Form 10-Q format. We believe that our format improves readability and better presents how we organize and manage our business. See "Form 10-Q Cross-Reference Index" within Other Key Information for a cross-reference index to the traditional SEC Form 10-Q format.
The preparation of consolidated financial statements is in conformity with U.S. generally accepted accounting principles (GAAP). We have included key metrics that we use to measure our business, some of which are non-GAAP measures. See these "Non-GAAP Financial Measures" within Other Key Information. |
| | | |
| | | Page |
FORWARD-LOOKING STATEMENTS | |
A QUARTER IN REVIEW | |
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS AND SUPPLEMENTAL DETAILS | |
| Consolidated Condensed Statements of Income | |
| Consolidated Condensed Statements of Comprehensive Income | |
| Consolidated Condensed Balance Sheets | |
| Consolidated Condensed Statements of Cash Flows | |
| Consolidated Condensed Statements of Stockholders' Equity | |
| Notes to Consolidated Condensed Financial Statements | |
| | | |
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) | |
| Overview | |
| Revenue, Gross Margin, and Operating Expenses | |
| Business Unit Trends and Results | |
| Other Consolidated Results of Operations | |
| Liquidity and Capital Resources | |
| Quantitative and Qualitative Disclosures about Market Risk | |
| | | |
OTHER KEY INFORMATION | |
| Risk Factors | |
| Controls and Procedures | |
| Non-GAAP Financial Measures | |
| Issuer Purchases of Equity Securities | |
| Exhibits | |
| Form 10-Q Cross-Reference Index | |
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "goals," "plans," "believes," "seeks," "estimates," "continues," "may," "will," "would," "should," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, projected growth of markets relevant to our businesses, future products and the expected availability and benefits of such products, uncertain events or assumptions, and other characterizations of future events or circumstances are forward-looking statements. Such statements are based on management's expectations as of the date of this filing and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include those described throughout this report and our Annual Report on Form 10-K for the year ended December 29, 2018, particularly the "Risk Factors" sections of such reports. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Form 10-Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The forward-looking statements in this Form 10-Q do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that had not been completed as of the date of this filing. In addition, the forward-looking statements in this Form 10-Q are made as of the date of this filing, including expectations based on third-party information and projections that management believes to be reputable, and Intel does not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.
INTEL UNIQUE TERMS
We use specific terms throughout this document to describe our business and results. Below are key terms and how we define them:
|
| | |
PLATFORM PRODUCTS | | A microprocessor (processor or central processing unit (CPU)) and chipset, a stand-alone System-on-Chip (SoC), or a multichip package, based on Intel® architecture. Platform products, or platforms, are primarily used in solutions sold through the Client Computing Group (CCG), Data Center Group (DCG), and Internet of Things Group (IOTG) segments. |
| | |
ADJACENT PRODUCTS | | All of our non-platform products, for CCG, DCG, and IOTG, such as modem, Ethernet and silicon photonics, as well as Mobileye, Non-Volatile Memory Solutions Group (NSG), and Programmable Solutions Group (PSG) products. Combined with our platform products, adjacent products form comprehensive platform solutions to meet customer needs. |
| | |
PC-CENTRIC BUSINESS | | Our CCG business, including both platform and adjacent products. |
| | |
DATA-CENTRIC BUSINESSES | | Our DCG, IOTG, Mobileye, NSG, PSG, and all other businesses. |
Intel, the Intel logo, Intel Agilex, Intel Optane, Thunderbolt, Xeon and 3D XPoint are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries.
Total revenue of $16.1 billion was flat year over year as our PC-centric business grew 4% and our data-centric businesses were down 5%. Compared to a year ago, data-centric revenue was down as data center market growth slowed and NAND pricing remains under pressure. Our PC-centric business was up due to an increase in platform average selling price (ASP) driven by a richer mix of higher performance products. Our continued ramp of the 10 nanometer (nm) process node and further margin compression on memory products resulted in lower gross margins and operating income, which was partially offset by executing the quarter with continued operating margin leverage. In the first three months we generated $5.0 billion of cash flow from operations and returned $3.9 billion to stockholders, including $1.4 billion in dividends and $2.5 billion in buybacks.
|
| | | | |
REVENUE | | OPERATING INCOME | | DILUTED EPS |
■ PC-CENTRIC $B ■ DATA-CENTRIC $B | | ■ GAAP $B ■ NON-GAAP $B | | ■ GAAP ■ NON-GAAP |
|
| | | | | | | | | | |
| | | | |
$16.1B | | | | $4.2B | | $4.5B | | $0.87 | | $0.89 |
GAAP | | | | GAAP | | non-GAAP1 | | GAAP | | non-GAAP1 |
flat in comparison to Q1 2018 | | down $296M or 7% from Q1 2018 | | down $290M or 6% from Q1 2018 | | down $0.06 or 6% from Q1 2018 | | up $0.02 or 2% from Q1 2018 |
| | | | | | | | |
Growth in PC-centric, Internet of Things, and Mobileye, offset by declines in other data-centric businesses | | Lower gross margin from ramp of 10nm and sustained ASP pressure on NAND, partially offset by increased spending leverage | | Impact from lower gross margin driven by 10nm ramp, offset by positive spending leverage and the receipt of McAfee, Inc. dividend, as well as lower shares outstanding |
BUSINESS SUMMARY
| |
• | We have maintained an intense, company-wide focus on improving execution while accelerating innovation. We are on track with 10nm process technology and continue to expect product on shelves for the 2019 holiday season. We are increasing the velocity of our product development while also announcing new 10nm products like the 10nm-based Snow Ridge network SoC for use in 5G base stations and Intel® Agilex™, our next generation field-programmable gate array (FPGA) product family. |
| |
• | At our Data-Centric Innovation Day event, we unveiled a broad portfolio of tools and technologies that underscore our unmatched depth, scale, and ability to move, store, and process data across the most demanding workloads from the data center to the edge, including our newly-released 2nd generation Intel® Xeon® Scalable processors which connect directly to another breakthrough innovation—Intel® Optane™ DC persistent memory. |
| |
• | DCG experienced challenges as cloud customers absorb capacity purchased in 2018, inventory consumption in enterprise and government and communication service providers market segments led to a deceleration in spending, and China demand weakened. NSG declined as industry-wide pricing pressure for NAND intensified. However, demand for edge compute drove double digit revenue growth for Mobileye and IOTG (excluding the effects of the Wind River Systems, Inc. (Wind River) divestiture). |
| |
• | PC-centric growth was driven by strength in our gaming and large commercial market segments. Platform volumes declined and pricing increased as we prioritized production to server and high-performance PC market segments. We continue to invest in capacity expansion for 14nm production, improving our supply in the second half of 2019, although product mix will continue to be a challenge in the third quarter. |
| |
• | We will be exiting the 5G smartphone modem business but will continue to meet current customer commitments for our existing 4G smartphone modem product lines. 5G continues to be a strategic priority and we will continue to invest in our 5G network infrastructure business. We are assessing opportunities for 4G and 5G modems in PCs, Internet of Things and other data-centric devices. |
1 See "Non-GAAP Financial Measures" within Other Key Information.
|
| | |
A QUARTER IN REVIEW | | 2 |
|
|
CONSOLIDATED CONDENSED STATEMENTS OF INCOME |
|
| | | | | | | | |
| | Three Months Ended |
(In Millions, Except Per Share Amounts; Unaudited) | | Mar 30, 2019 | | Mar 31, 2018 |
Net revenue | | $ | 16,061 |
| | $ | 16,066 |
|
Cost of sales | | 6,972 |
| | 6,335 |
|
Gross margin | | 9,089 |
| | 9,731 |
|
Research and development | | 3,332 |
| | 3,311 |
|
Marketing, general and administrative | | 1,533 |
| | 1,900 |
|
Amortization of acquisition-related intangibles | | 50 |
| | 50 |
|
Operating expenses | | 4,915 |
| | 5,261 |
|
Operating income | | 4,174 |
| | 4,470 |
|
Gains (losses) on equity investments, net | | 434 |
| | 643 |
|
Interest and other, net | | (61 | ) | | (102 | ) |
Income before taxes | | 4,547 |
| | 5,011 |
|
Provision for taxes | | 573 |
| | 557 |
|
Net income | | $ | 3,974 |
| | $ | 4,454 |
|
Earnings per share – basic | | $ | 0.88 |
| | $ | 0.95 |
|
Earnings per share – diluted | | $ | 0.87 |
| | $ | 0.93 |
|
Weighted average shares of common stock outstanding: | | | | |
Basic | | 4,492 |
| | 4,674 |
|
Diluted | | 4,564 |
| | 4,790 |
|
See accompanying notes.
|
| | |
FINANCIAL STATEMENTS | Consolidated Condensed Statements of Income | 3 |
|
|
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME |
|
| | | | | | | | |
| | Three Months Ended |
(In Millions; Unaudited) | | Mar 30, 2019 | | Mar 31, 2018 |
Net income | | $ | 3,974 |
| | $ | 4,454 |
|
Changes in other comprehensive income, net of tax: | | | | |
Net unrealized holding gains (losses) on derivatives | | 102 |
| | 119 |
|
Actuarial valuation and other pension benefits (expenses), net | | 9 |
| | 148 |
|
Translation adjustments and other | | 50 |
| | (22 | ) |
Other comprehensive income (loss) | | 161 |
| | 245 |
|
Total comprehensive income | | $ | 4,135 |
| | $ | 4,699 |
|
See accompanying notes.
|
| | |
FINANCIAL STATEMENTS | Consolidated Condensed Statements of Comprehensive Income | 4 |
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
| | | | | | | | |
(In Millions) | | Mar 30, 2019 | | Dec 29, 2018 |
| | (unaudited) | | |
Assets | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 3,154 |
| | $ | 3,019 |
|
Short-term investments | | 2,698 |
| | 2,788 |
|
Trading assets | | 6,181 |
| | 5,843 |
|
Accounts receivable | | 6,957 |
| | 6,722 |
|
Inventories | | 7,765 |
| | 7,253 |
|
Other current assets | | 2,305 |
| | 3,162 |
|
Total current assets | | 29,060 |
| | 28,787 |
|
Property, plant and equipment, net of accumulated depreciation of $67,438 ($65,342 as of December 29, 2018) | | 50,040 |
| | 48,976 |
|
Equity investments | | 5,254 |
| | 6,042 |
|
Other long-term investments | | 3,465 |
| | 3,388 |
|
Goodwill | | 24,521 |
| | 24,513 |
|
Identified intangible assets, net | | 11,457 |
| | 11,836 |
|
Other long-term assets | | 5,661 |
| | 4,421 |
|
Total assets | | $ | 129,458 |
| | $ | 127,963 |
|
| | | | |
Liabilities, temporary equity, and stockholders’ equity | | | | |
Current liabilities: | | | | |
Short-term debt | | $ | 2,750 |
| | $ | 1,261 |
|
Accounts payable | | 4,059 |
| | 3,824 |
|
Accrued compensation and benefits | | 1,984 |
| | 3,622 |
|
Other accrued liabilities | | 10,118 |
| | 7,919 |
|
Total current liabilities |
| 18,911 |
| | 16,626 |
|
Debt | | 25,737 |
| | 25,098 |
|
Contract liabilities | | 1,775 |
| | 2,049 |
|
Income taxes payable, non-current | | 4,781 |
| | 4,897 |
|
Deferred income taxes | | 1,521 |
| | 1,665 |
|
Other long-term liabilities | | 2,797 |
| | 2,646 |
|
Contingencies (Note 10) | |
| |
|
Temporary equity | | 275 |
| | 419 |
|
Stockholders’ equity: | | | | |
Preferred stock | | — |
| | — |
|
Common stock and capital in excess of par value, 4,477 issued and outstanding (4,516 issued and outstanding as of December 29, 2018) | | 25,346 |
| | 25,365 |
|
Accumulated other comprehensive income (loss) | | (813 | ) | | (974 | ) |
Retained earnings | | 49,128 |
| | 50,172 |
|
Total stockholders’ equity | | 73,661 |
| | 74,563 |
|
Total liabilities, temporary equity, and stockholders’ equity | | $ | 129,458 |
| | $ | 127,963 |
|
See accompanying notes.
|
| | |
FINANCIAL STATEMENTS | Consolidated Condensed Balance Sheets | 5 |
|
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
| | | | | | | | |
| | Three Months Ended |
(In Millions; Unaudited) | | Mar 30, 2019 | | Mar 31, 2018 |
Cash and cash equivalents, beginning of period | | $ | 3,019 |
| | $ | 3,433 |
|
Cash flows provided by (used for) operating activities: | | | | |
Net income | | 3,974 |
| | 4,454 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Depreciation | | 2,229 |
| | 1,806 |
|
Share-based compensation | | 389 |
| | 433 |
|
Amortization of intangibles | | 396 |
| | 390 |
|
(Gains) losses on equity investments, net | | (274 | ) | | (643 | ) |
Changes in assets and liabilities: | | | | |
Accounts receivable | | (235 | ) | | 102 |
|
Inventories | | (512 | ) | | (96 | ) |
Accounts payable | | 196 |
| | 73 |
|
Accrued compensation and benefits | | (1,620 | ) | | (1,307 | ) |
Customer deposits and prepaid supply agreements | | (228 | ) | | 1,599 |
|
Income taxes | | 440 |
| | 295 |
|
Other assets and liabilities | | 204 |
| | (822 | ) |
Total adjustments | | 985 |
| | 1,830 |
|
Net cash provided by operating activities | | 4,959 |
| | 6,284 |
|
Cash flows provided by (used for) investing activities: | | | | |
Additions to property, plant and equipment | | (3,321 | ) | | (2,910 | ) |
Purchases of available-for-sale debt investments | | (872 | ) | | (859 | ) |
Maturities of available-for-sale debt investments | | 940 |
| | 893 |
|
Purchases of trading assets | | (1,869 | ) | | (5,398 | ) |
Maturities and sales of trading assets | | 1,554 |
| | 3,760 |
|
Sales of equity investments | | 1,077 |
| | 163 |
|
Other investing | | (231 | ) | | (440 | ) |
Net cash used for investing activities | | (2,722 | ) | | (4,791 | ) |
Cash flows provided by (used for) financing activities: | | | | |
Increase (decrease) in short-term debt, net | | 1,682 |
| | 2,142 |
|
Repayment of debt and debt conversion | | (861 | ) | | (327 | ) |
Proceeds from sales of common stock through employee equity incentive plans | | 290 |
| | 289 |
|
Repurchase of common stock | | (2,530 | ) | | (1,914 | ) |
Payment of dividends to stockholders | | (1,414 | ) | | (1,400 | ) |
Other financing | | 731 |
| | (162 | ) |
Net cash provided by (used for) financing activities | | (2,102 | ) | | (1,372 | ) |
Net increase (decrease) in cash and cash equivalents | | 135 |
| | 121 |
|
Cash and cash equivalents, end of period | | $ | 3,154 |
| | $ | 3,554 |
|
| | | | |
Supplemental disclosures of noncash investing activities and cash flow information: | | | | |
Acquisition of property, plant, and equipment included in accounts payable and accrued liabilities | | $ | 2,259 |
| | $ | 2,904 |
|
Cash paid during the period for: | | | | |
Interest, net of capitalized interest | | $ | 109 |
| | $ | 60 |
|
Income taxes, net of refunds | | $ | 125 |
| | $ | 228 |
|
See accompanying notes.
|
| | |
FINANCIAL STATEMENTS | Consolidated Condensed Statements of Cash Flows | 6 |
|
|
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY |
|
| | | | | | | | | | | | | | | | | | | |
| | Common Stock and Capital in Excess of Par Value | | Accumulated Other Comprehensive Income (Loss) | | Retained Earnings | | Total |
(In Millions, Except Per Share Amounts) | | Shares | | Amount | | | |
Three Months Ended | | | | | | | | | | |
| | | | | | | | | | |
Balance as of December 29, 2018 | | 4,516 |
| | $ | 25,365 |
| | $ | (974 | ) | | $ | 50,172 |
| | $ | 74,563 |
|
Net income | | — |
| | — |
| | — |
| | 3,974 |
| | 3,974 |
|
Other comprehensive income (loss) | | — |
| | — |
| | 161 |
| | — |
| | 161 |
|
Employee equity incentive plans and other | | 11 |
| | 372 |
| | — |
| | — |
| | 372 |
|
Share-based compensation | | — |
| | 389 |
| | — |
| | — |
| | 389 |
|
Temporary equity reduction | | — |
| | 145 |
| | — |
| | — |
| | 145 |
|
Convertible debt | | — |
| | (592 | ) | | — |
| | — |
| | (592 | ) |
Repurchase of common stock | | (49 | ) | | (278 | ) | | — |
| | (2,172 | ) | | (2,450 | ) |
Restricted stock unit withholdings | | (1 | ) | | (55 | ) | | — |
| | (17 | ) | | (72 | ) |
Cash dividends declared ($0.63 per share) | | — |
| | — |
| | — |
| | (2,829 | ) | | (2,829 | ) |
Balance as of March 30, 2019 | | 4,477 |
| | $ | 25,346 |
| | $ | (813 | ) | | $ | 49,128 |
| | $ | 73,661 |
|
| | | | | | | | | | |
Balance as of December 30, 2017 | | 4,687 |
| | $ | 26,074 |
| | $ | 862 |
| | $ | 42,083 |
| | $ | 69,019 |
|
Adjustment for change in accounting principle | | — |
| | — |
| | (1,790 | ) | | 2,424 |
| | 634 |
|
Opening balance as of December 31, 2017 | | 4,687 |
|
| 26,074 |
|
| (928 | ) |
| 44,507 |
|
| 69,653 |
|
Net income | | — |
| | — |
| | — |
| | 4,454 |
| | 4,454 |
|
Other comprehensive income (loss) | | — |
| | — |
| | 245 |
| | — |
| | 245 |
|
Employee equity incentive plans and other | | 15 |
| | 323 |
| | — |
| | — |
| | 323 |
|
Share-based compensation | | — |
| | 453 |
| | — |
| | — |
| | 453 |
|
Temporary equity reduction | | — |
| | 65 |
| | — |
| | — |
| | 65 |
|
Convertible debt | | — |
| | (207 | ) | | — |
| | — |
| | (207 | ) |
Repurchase of common stock | | (41 | ) | | (225 | ) | | — |
| | (1,730 | ) | | (1,955 | ) |
Restricted stock unit withholdings | | (1 | ) | | (53 | ) | | — |
| | (12 | ) | | (65 | ) |
Cash dividends declared ($0.60 per share) | | — |
| | — |
| | — |
| | (2,801 | ) | | (2,801 | ) |
Balance as of March 31, 2018 | | 4,660 |
| | $ | 26,430 |
| | $ | (683 | ) | | $ | 44,418 |
| | $ | 70,165 |
|
|
| | |
FINANCIAL STATEMENTS | Consolidated Condensed Statements of Stockholders' Equity | 7 |
|
|
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 GAAP, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 (2018 Form 10-K), except for changes associated with leases as detailed in "Note 2: Recent Accounting Standards and Accounting Policies." We have reclassified certain prior period amounts to conform to current period presentation.
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 the consolidated financial statements in our 2018 Form 10-K.
|
| |
NOTE 2 : | RECENT ACCOUNTING STANDARDS AND ACCOUNTING POLICIES |
We assess the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on our financial statements and below describe impacts from newly adopted standards, as well as material updates to our previous assessments, if any, from our 2018 Form 10-K.
ACCOUNTING STANDARDS ADOPTED
Leases
Standard/Description: This new lease accounting standard requires that we recognize leased assets and corresponding liabilities on the balance sheet and provide enhanced disclosure of lease activity.
Effective Date and Adoption Considerations: Effective in the first quarter of 2019. The standard was adopted applying the modified retrospective approach at the beginning of the period of adoption. Our leased assets and corresponding liabilities exclude non-lease components.
Effect on Financial Statements or Other Significant Matters: Within the opening balances for the fiscal year beginning December 30, 2018, we recognized leased assets and corresponding liabilities in other long-term assets of $706 million, which includes $81 million of previously recognized prepaid land use rights, as well as corresponding accrued liabilities of $180 million and other long-term liabilities of $445 million.
Accounting Policy Updates and Disclosures: We determine if an arrangement is a lease at inception, and classify it as finance or operating. Leased assets and corresponding liabilities are recognized based on the present value of the lease payments over the lease term. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. 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. Leases primarily consist of real property, and, to a lesser extent, certain machinery and equipment.
We recognized leased assets in other long-term assets of $696 million and corresponding accrued liabilities of $177 million, and other long-term liabilities of $438 million as of March 30, 2019. Our leases have remaining lease terms of 1 to 10 years, some of which may include options to extend the leases for up to 40 years. The weighted average remaining lease term was 5.2 years, and the weighted average discount rate was 3.7% as of March 30, 2019.
For the three months ended March 30, 2019, lease expense was $47 million. In accordance with the new leases standard, discounted and undiscounted lease payments under non-cancelable leases as of March 30, 2019, excluding non-lease components, are as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(In Millions) | | Remainder of 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 and Thereafter | | Total |
Lease payments | | $ | 138 |
| | $ | 160 |
| | $ | 116 |
| | $ | 91 |
| | $ | 65 |
| | $ | 106 |
| | $ | 676 |
|
Present value of lease payments | | | | | | | | | | | | | | $ | 615 |
|
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 8 |
Lease expense was $231 million in 2018 ($264 million in 2017). Prior to our adoption of the new leases standard, future minimum lease payments as of December 29, 2018, which were undiscounted and included lease and non-lease components, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(In Millions) | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 and Thereafter | | Total |
Minimum rental commitments under all non-cancelable leases | | $ | 229 |
| | $ | 181 |
| | $ | 133 |
| | $ | 101 |
| | $ | 70 |
| | $ | 121 |
| | $ | 835 |
|
|
| |
NOTE 3 : | OPERATING SEGMENTS |
We manage our business through the following operating segments:
| |
• | Client Computing Group (CCG) |
| |
• | Internet of Things Group (IOTG) |
| |
• | Non-Volatile Memory Solutions Group (NSG) |
| |
• | Programmable Solutions Group (PSG) |
We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package. A platform product may be enhanced by additional hardware, software, and services offered by Intel. Platform products are used in various form factors across our CCG, DCG, and IOTG operating segments. We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of product.
CCG and DCG are our reportable operating segments. IOTG, Mobileye, NSG, and PSG 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.
The “all other” category includes revenue, expenses, and charges such as:
| |
• | results of operations from non-reportable segments not otherwise presented; |
| |
• | historical results of operations from divested businesses; |
| |
• | results of operations of start-up businesses that support our initiatives, including our foundry business; |
| |
• | amounts included within restructuring and other charges; |
| |
• | a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; and |
| |
• | acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill. |
The Chief Operating Decision Maker (CODM), which is our Chief Executive Officer, does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. Except for these differences, the accounting policies for segment reporting are the same as for Intel as a whole.
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 9 |
Net revenue and operating income (loss) for each period were as follows:
|
| | | | | | | | |
| | Three Months Ended |
(In Millions) | | Mar 30, 2019 | | Mar 31, 2018 |
Net revenue: | | | | |
Client Computing Group | | | | |
Platform | | $ | 7,824 |
| | $ | 7,615 |
|
Adjacent | | 762 |
| | 605 |
|
| | 8,586 |
| | 8,220 |
|
Data Center Group | | | | |
Platform | | 4,482 |
| | 4,824 |
|
Adjacent | | 420 |
| | 410 |
|
| | 4,902 |
| | 5,234 |
|
Internet of Things Group | | | | |
Platform | | 825 |
| | 719 |
|
Adjacent | | 85 |
| | 121 |
|
| | 910 |
| | 840 |
|
| | | | |
Mobileye | | 209 |
| | 151 |
|
Non-Volatile Memory Solutions Group | | 915 |
| | 1,040 |
|
Programmable Solutions Group | | 486 |
| | 498 |
|
All other | | 53 |
| | 83 |
|
Total net revenue | | $ | 16,061 |
| | $ | 16,066 |
|
| | | | |
Operating income (loss): | | | | |
Client Computing Group | | $ | 3,072 |
| | $ | 2,791 |
|
Data Center Group | | 1,841 |
| | 2,602 |
|
Internet of Things Group | | 251 |
| | 227 |
|
Mobileye | | 68 |
| | 10 |
|
Non-Volatile Memory Solutions Group | | (297 | ) | | (81 | ) |
Programmable Solutions Group | | 89 |
| | 97 |
|
All other | | (850 | ) | | (1,176 | ) |
Total operating income | | $ | 4,174 |
| | $ | 4,470 |
|
Disaggregated net revenue for each period was as follows:
|
| | | | | | | | |
| | Three Months Ended |
(In Millions) | | Mar 30, 2019 | | Mar 31, 2018 |
Platform revenue | | | | |
Desktop platform | | $ | 2,886 |
| | $ | 2,907 |
|
Notebook platform | | 4,926 |
| | 4,689 |
|
DCG platform | | 4,482 |
| | 4,824 |
|
Other platform1 | | 837 |
| | 738 |
|
| | 13,131 |
| | 13,158 |
|
| | | | |
Adjacent revenue2 | | 2,930 |
| | 2,908 |
|
Total revenue | | $ | 16,061 |
| | $ | 16,066 |
|
| |
1 | Includes our tablet, service provider, and IOTG platform revenue. |
| |
2 | Includes all of our non-platform products for CCG, DCG, and IOTG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products. |
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 10 |
|
| |
NOTE 4 : | EARNINGS PER SHARE |
We computed basic earnings per share of common stock based on the weighted average number of shares of common stock outstanding during the period. 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. |
| | | | | | | | |
| | Three Months Ended |
(In Millions, Except Per Share Amounts) | | Mar 30, 2019 | | Mar 31, 2018 |
Net income available to common stockholders | | $ | 3,974 |
| | $ | 4,454 |
|
Weighted average shares of common stock outstanding – basic | | 4,492 |
| | 4,674 |
|
Dilutive effect of employee equity incentive plans | | 53 |
| | 65 |
|
Dilutive effect of convertible debt | | 19 |
| | 51 |
|
Weighted average shares of common stock outstanding – diluted | | 4,564 |
| | 4,790 |
|
Earnings per share – basic | | $ | 0.88 |
| | $ | 0.95 |
|
Earnings per share – diluted | | $ | 0.87 |
| | $ | 0.93 |
|
Potentially dilutive shares of common stock from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units (RSUs), and the assumed issuance of common stock under the stock purchase plan. Our convertible debentures due 2039 (2009 debentures) require settlement of the principal amount of the debt in cash upon conversion. Since the conversion premium is paid in cash or stock at our option, we determined the potentially dilutive shares of common stock by applying the treasury stock method.
In all periods presented, securities which would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share. In all periods presented, we included our 2009 debentures in the calculation of diluted earnings per share of common stock because the average market price was above the conversion price. We could potentially exclude the 2009 debentures in the future if the average market price is below the conversion price.
|
| |
NOTE 5 : | CONTRACT LIABILITIES |
|
| | | | | | | | |
(In Millions) | | Mar 30, 2019 | | Dec 29, 2018 |
Prepaid supply agreements
| | $ | 2,359 |
| | $ | 2,587 |
|
Other | | 129 |
| | 122 |
|
Total contract liabilities | | $ | 2,488 |
| | $ | 2,709 |
|
Contract liabilities are primarily related to partial prepayments received from customers on long-term supply agreements towards future NSG product delivery. As new prepaid supply agreements are entered into and performance obligations are negotiated, this component of the contract liability balance will increase, and as customers purchase product and utilize their prepaid balances, the balance will decrease. The short-term portion of prepayments from supply agreements is reported on the consolidated condensed balance sheets within other accrued liabilities.
The following table shows the changes in contract liability balances relating to prepaid supply agreements during the first three months of 2019: |
| | | | |
(In Millions) | | |
Prepaid supply agreements balance as of December 29, 2018 | | $ | 2,587 |
|
Prepaids utilized | | (228 | ) |
Prepaid supply agreements balance as of March 30, 2019 | | $ | 2,359 |
|
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 11 |
|
| |
NOTE 6 : | OTHER FINANCIAL STATEMENT DETAILS |
INVENTORIES
|
| | | | | | | | |
(In Millions) | | Mar 30, 2019 | | Dec 29, 2018 |
Raw materials | | $ | 789 |
| | $ | 813 |
|
Work in process | | 4,758 |
| | 4,511 |
|
Finished goods | | 2,218 |
| | 1,929 |
|
Total inventories | | $ | 7,765 |
| | $ | 7,253 |
|
INTEREST AND OTHER, NET
The components of interest and other, net for each period were as follows: |
| | | | | | | | |
| | Three Months Ended |
(In Millions) | | Mar 30, 2019 | | Mar 31, 2018 |
Interest income | | $ | 135 |
| | $ | 91 |
|
Interest expense | | (138 | ) | | (112 | ) |
Other, net | | (58 | ) | | (81 | ) |
Total interest and other, net | | $ | (61 | ) | | $ | (102 | ) |
Interest expense in the preceding table is net of $125 million of interest capitalized in the first quarter of 2019 ($113 million in the first quarter of 2018).
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 12 |
DEBT INVESTMENTS
Trading Assets
Net gains related to trading assets still held at the reporting date were $16 million in the first three months of 2019 ($175 million of net gains in the first three months of 2018). Net gains on the related derivatives were $2 million in the first three months of 2019 (net losses of $149 million in the first three months of 2018).
Available-for-Sale Debt Investments |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | March 30, 2019 | | December 29, 2018 |
(In Millions) | | Adjusted Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | Adjusted Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value |
Corporate debt | | $ | 3,033 |
| | $ | 26 |
| | $ | (11 | ) | | $ | 3,048 |
| | $ | 3,068 |
| | $ | 2 |
| | $ | (28 | ) | | $ | 3,042 |
|
Financial institution instruments | | 3,172 |
| | 11 |
| | (5 | ) | | 3,178 |
| | 3,076 |
| | 3 |
| | (11 | ) | | 3,068 |
|
Government debt | | 930 |
| | 2 |
| | (3 | ) | | 929 |
| | 1,069 |
| | 1 |
| | (9 | ) | | 1,061 |
|
Total available-for-sale debt investments | | $ | 7,135 |
| | $ | 39 |
| | $ | (19 | ) | | $ | 7,155 |
| | $ | 7,213 |
| | $ | 6 |
| | $ | (48 | ) | | $ | 7,171 |
|
Government debt includes instruments such as non-U.S. government bonds and U.S. 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. Substantially all time deposits were issued by institutions outside the U.S. as of March 30, 2019 and December 29, 2018.
The fair value of available-for-sale debt investments, by contractual maturity, as of March 30, 2019, was as follows: |
| | | | |
(In Millions) | | Fair Value |
Due in 1 year or less | | $ | 3,210 |
|
Due in 1–2 years | | 427 |
|
Due in 2–5 years | | 2,934 |
|
Due after 5 years | | 102 |
|
Instruments not due at a single maturity date | | 482 |
|
Total | | $ | 7,155 |
|
EQUITY INVESTMENTS
|
| | | | | | | | |
(In Millions) | | Mar 30, 2019 | | Dec 29, 2018 |
Marketable equity securities | | $ | 568 |
| | $ | 1,440 |
|
Non-marketable equity securities | | 3,117 |
| | 2,978 |
|
Equity method investments | | 1,569 |
| | 1,624 |
|
Total | | $ | 5,254 |
|
| $ | 6,042 |
|
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 13 |
The components of gains (losses) on equity investments, net for each period were as follows: |
| | | | | | | | |
| | Three Months Ended |
(In Millions) | | Mar 30, 2019 | | Mar 31, 2018 |
Ongoing mark-to-market adjustments on marketable equity securities | | $ | 253 |
| | $ | 606 |
|
Observable price adjustments on non-marketable equity securities | | 8 |
| | 124 |
|
Impairments | | (23 | ) | | (17 | ) |
Sale of equity investments and other¹ | | 196 |
| | (70 | ) |
Total gains (losses) on equity investments, net | | $ | 434 |
| | $ | 643 |
|
1 Sale of equity investments and other includes realized gains (losses) on sales of non-marketable equity investments, our share of equity method investee gains (losses), and initial fair value adjustments recorded upon a security becoming marketable.
Gains and losses for our marketable and non-marketable equity securities during the period were as follows: |
| | | | | | | | |
| | Three Months Ended |
(In Millions) | | Mar 30, 2019 | | Mar 31, 2018 |
Net gains (losses) recognized during the period on equity securities | | $ | 263 |
| | $ | 724 |
|
Less: Net (gains) losses recognized during the period on equity securities sold during the period | | (190 | ) | | (11 | ) |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | | $ | 73 |
| | $ | 713 |
|
IM Flash Technologies, LLC
IM Flash Technologies, LLC (IMFT) was formed in 2006 by Micron Technology, Inc. (Micron) and Intel to jointly develop NAND flash memory and 3D XPoint™ technology products. IMFT is an unconsolidated variable interest entity and all costs of IMFT are passed on to Micron and Intel through sale of products or services in proportional share of ownership. As of March 30, 2019, we own a 49% interest in IMFT. Our portion of IMFT costs was approximately $132 million in the first three months of 2019 (approximately $83 million in the first three months of 2018).
IMFT depends on Micron and Intel for any additional cash needs to be provided in the form of cash calls or member debt financing (MDF). Extensions of MDF may be converted to a capital contribution at the lender's request, or may be repaid upon availability of funds.
In January 2019, Micron exercised its right to call our interest in IMFT. The call transaction will close between six and twelve months from the date Micron exercised the call option. We will continue to purchase product manufactured at the IMFT facility for a period of up to one year following the close date. The carrying balance of our equity method investment in IMFT as of March 30, 2019 was $1.5 billion.
ASML Holding N.V.
As of December 29, 2018, Intel owned $1.1 billion in ASML Holding N.V. (ASML). We have fully sold our equity investment in ASML.
|
| | |
FINANCIAL STATEMENTS | Notes to Financial Statements | 14 |
For information about our fair value policies, and methods and assumptions used in estimating the fair value of our financial assets and liabilities, see "Note 2: Accounting Policies" and "Note 16: Fair Value" in our 2018 Form 10-K.
ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | March 30, 2019 | | December 29, 2018 |
| | Fair Value Measured and Recorded at Reporting Date Using | |
|