Intel

Annual Report

Letter from your ceo

To our stockholders, customers, partners, and employees:

As I reflect on one year as CEO of this iconic company, I 
am more inspired than ever to lead more than 121,000 of 
the best and brightest minds here at Intel. 

We have been laser-focused on rebuilding our execution 
engine–moving at a torrid pace and rekindling our 
renowned Groveian culture. Throughout 2021, we hired 
more than 17,000 technical employees, including new 
leaders to accelerate our growth and competitive position in 
key areas. And as of 2022, every Intel employee has 
specific goals linked to our corporate strategy and tied 
directly to compensation.

We re-architected the company into six distinct businesses 
that uniquely position us to provide more value to our 
customers and partners and capitalize on unprecedented 
industry demand for semiconductors. Beginning in 2022, we 
will report results under this new structure to drive even 
greater transparency for our many stakeholders. Our 
strategy will allow us to grow our traditional markets – client, 
data center, network, and edge – with increasingly 
competitive roadmaps that let us win share. And we will be 
able to thrive in exciting, emerging markets with focused 
investments in graphics, foundry, and Mobileye. 

As I laid out at our recent Investor Meeting, four 
fundamental beliefs underpin the core of Intel’s strategy, as 
well the future of the semiconductor industry. 

We are in an era of sustained long-term demand. 
Technology is increasingly central to every aspect of human 
existence. Driven by the digitization of industry 
transformation, the market for semiconductor technology 
reached $500 billion for the first time in 2021 and is 
forecasted to reach $1 trillion by the end of this decade. We 
believe that revenue at the leading edge, for the most 
advanced silicon process nodes, will grow twice as fast as 
the rest of the market over that time. We are determined to 
deliver leadership products and services that satisfy this 
demand.

Insatiable requirements for compute continue to drive 
the value of Moore’s Law. Since its founding, Intel has 
thrived on the relentless pursuit of semiconductor invention 
and innovation as described by Moore’s Law. 
Semiconductors provided the technological backbone 
behind the greatest period of human innovation and wealth 
creation in history—and we remain right in the thick of it. As 
stewards of Moore’s Law, we continue investing to solve the 
problems of tomorrow. 

"We are currently executing the largest capacity 
expansion in our history, with more than 20 
concurrent construction projects worldwide..."

As I highlighted in our Investor Meeting, we continue to be 
on or ahead of schedule to deliver five nodes in four years – 
per the roadmap we laid out last July, which also recognizes 
the need for lower latency, higher density, and more power-
efficient solutions. This will require significant R&D 
investment in new transistor designs, extreme ultraviolet 
(EUV) lithography tools, advanced packaging, and precision 
manufacturing for the Angstrom Era of semiconductors. In 
2021, we outlined some of our long-term research – items 
such as a greater than 10x density improvement in 
packaging, and a 30% to 50% area improvement in 
transistor scaling. Combined with other advances like 
RibbonFet, PowerVia, High NA Lithography and 
developments with 2.5D and 3D packaging), we see a path 
to move from 100B transistors on a package today to 1 
trillion by 2030.

Pat Gelsinger, Chief Executive Officer

Open ecosystems unleash innovation and democratize 
compute. In the tech industry, open ecosystems unleash 
innovation and democratize compute, and Intel is doubling 
down on a deep legacy of open platforms. We are 
prioritizing our developer-first approach to deliver open and 
secure software and hardware platforms that drive industry-
shaping standards and innovation in key workloads. We are 
supporting and empowering developer choice through 
collaboration with the broad ecosystem. As open, 
standards-based, software toolkits like oneAPI unleash the 
capability of thousands of developers, we expect to see a 
proliferation of solutions across CPUs, GPUs, and other 
accelerators.

Cloud computing will continue to grow, but edge computing 
will grow faster as workload and processing requirements 
are increasingly satisfied by general purpose compute 
supported by open software frameworks. In AI, we already 
see inferencing workloads on primarily open platforms. 

We are also revitalizing our PC and x86 ecosystem, which 

has always been a tremendous force for growth–and 

proven to be even more essential to everyday life, driven by 

the “new normal” of hybrid work and education models. 

Along with key partners, we are leaning in to make the PC 

the best experience of the digital world and the clear 

platform for next-generation immersive experiences.

And we opened our fabs to the world with Intel Foundry 

Services, a fully vertical, stand-alone foundry business built 

to help meet the growing global demand for 

semiconductors. We will open our intellectual properties 

(IP), standards, and our x86 architectures to external 

foundry customers. We recently drove the creation of UCIe 

(check) for chiplet standard across multi-tile packages. Our 

foundry ambitions are bolstered by our acquisition of Tower 

Semiconductor, which will accelerate our entry into the 

business and allow us to engage with some of the fastest 

growing areas of the market.

The world needs more balanced and resilient supply 

chains. As the past few years have shown, the world needs 

more semiconductor manufacturing capacity and a more 

diversified, secure, and geographically balanced supply 

chain. Intel is uniquely positioned to help address this need 

and deliver leading-edge process technology at scale. 

Our investments in leading-edge capacity in the U.S. and 

Europe are aimed squarely at the next wave of innovations 

enabled by the technology superpowers and we continue to 

expand our manufacturing footprint around the world. We 

are currently executing the largest capacity expansion in 

our history, with more than 20 concurrent construction 

projects worldwide all of which are on, or ahead of, 

schedule. 

This expansion includes the January 2022 announcement 

of the first new U.S. Intel manufacturing site in 40 years, a 

mega-site in Ohio. The creation of a “Silicon Heartland” 

opens an entire region to help boost production to meet the 

surging demand for advanced semiconductors, powering a 

new generation of innovative products from Intel. In March 

2022, we announced landmark investments spanning 

Germany, France, Ireland, Italy, Poland and Spain – a 

holistic investment strategy to drive innovation and create a 

world-class chip ecosystem across all of Europe. 

Furthermore, through sustainable manufacturing practices 

and aggressive environmental targets, we are deeply 

committed to being good neighbors in the communities 

where we operate. We have set aggressive environmental 

targets in areas such as renewable energy use, water 

reclamation and waste to landfill. We also collaborate with 

our ecosystem to reduce climate impact in semiconductor 

manufacturing and advancing sustainable chemistry use to 

minimize the use and creation of hazardous materials. 

This Annual Report contains forward-looking statements, and actuals results could differ materially. Risk factors that could cause results 

to differ are set forth in the "Risk Factors" section and throughout our 2021 Form 10-K, which is included in this Annual Report. These 

risk factors are subject to update by our future filings and submissions with the U.S. SEC. Forward-looking statements included in our 

2021 Form 10-K are based on management's expectations as of January 26, 2022, and forward-looking statements in the CEO letter 

are based on expectations as of February 17, 2022 with the exception of the March 15, 2022 Europe investment announcement. Intel 

disclaims any obligation to update these statements, except as required by law

As I highlighted in our Investor Meeting, we continue to be 

on or ahead of schedule to deliver five nodes in four years – 

per the roadmap we laid out last July, which also recognizes 

the need for lower latency, higher density, and more power-

efficient solutions. This will require significant R&D 

investment in new transistor designs, extreme ultraviolet 

(EUV) lithography tools, advanced packaging, and precision 

manufacturing for the Angstrom Era of semiconductors. In 

2021, we outlined some of our long-term research – items 

such as a greater than 10x density improvement in 

packaging, and a 30% to 50% area improvement in 

transistor scaling. Combined with other advances like 

developments with 2.5D and 3D packaging), we see a path 

to move from 100B transistors on a package today to 1 

Open ecosystems unleash innovation and democratize 

In the tech industry, open ecosystems unleash 

innovation and democratize compute, and Intel is doubling 

down on a deep legacy of open platforms. We are 

prioritizing our developer-first approach to deliver open and 

secure software and hardware platforms that drive industry-

shaping standards and innovation in key workloads. We are 

supporting and empowering developer choice through 

standards-based, software toolkits like oneAPI unleash the 

capability of thousands of developers, we expect to see a 

proliferation of solutions across CPUs, GPUs, and other 

open, 

Cloud computing will continue to grow, but edge computing 

will grow faster as workload and processing requirements 

are increasingly satisfied by general purpose compute 

supported by open software frameworks. In AI, we already 

see inferencing workloads on primarily open platforms. 

We are also revitalizing our PC and x86 ecosystem, which 
has always been a tremendous force for growth–and 
proven to be even more essential to everyday life, driven by 
the “new normal” of hybrid work and education models. 
Along with key partners, we are leaning in to make the PC 
the best experience of the digital world and the clear 
platform for next-generation immersive experiences.

And we opened our fabs to the world with Intel Foundry 
Services, a fully vertical, stand-alone foundry business built 
to help meet the growing global demand for 
semiconductors. We will open our intellectual properties 
(IP), standards, and our x86 architectures to external 
foundry customers. We recently drove the creation of UCIe 
(check) for chiplet standard across multi-tile packages. Our 
foundry ambitions are bolstered by our acquisition of Tower 
Semiconductor, which will accelerate our entry into the 
business and allow us to engage with some of the fastest 
growing areas of the market.

The world needs more balanced and resilient supply 
chains. As the past few years have shown, the world needs 
more semiconductor manufacturing capacity and a more 
diversified, secure, and geographically balanced supply 
chain. Intel is uniquely positioned to help address this need 
and deliver leading-edge process technology at scale. 

Our investments in leading-edge capacity in the U.S. and 
Europe are aimed squarely at the next wave of innovations 
enabled by the technology superpowers and we continue to 
expand our manufacturing footprint around the world. We 
are currently executing the largest capacity expansion in 
our history, with more than 20 concurrent construction 
projects worldwide all of which are on, or ahead of, 
schedule. 

This expansion includes the January 2022 announcement 
of the first new U.S. Intel manufacturing site in 40 years, a 
mega-site in Ohio. The creation of a “Silicon Heartland” 
opens an entire region to help boost production to meet the 
surging demand for advanced semiconductors, powering a 
new generation of innovative products from Intel. In March 
2022, we announced landmark investments spanning 
Germany, France, Ireland, Italy, Poland and Spain – a 
holistic investment strategy to drive innovation and create a 
world-class chip ecosystem across all of Europe. 

Furthermore, through sustainable manufacturing practices 
and aggressive environmental targets, we are deeply 
committed to being good neighbors in the communities 
where we operate. We have set aggressive environmental 
targets in areas such as renewable energy use, water 
reclamation and waste to landfill. We also collaborate with 
our ecosystem to reduce climate impact in semiconductor 
manufacturing and advancing sustainable chemistry use to 
minimize the use and creation of hazardous materials. 

Pat Gelsinger announces Intel factory investment in Ohio

"We’ve embarked on an ambitious, five-year plan 
to create significant revenue growth and 
stockholder value. With the right strategy, the 
right team, and a supercharged culture of 
execution and innovation, we are putting Intel on a 
path for growth."

I am pleased with what we accomplished this past year, but 
there is still much to do, and we are not stopping. We’ve 
embarked on an ambitious, five-year plan to create 
significant revenue growth and stockholder value. With the 
right strategy, the right team, and a supercharged culture of 
execution and innovation, we are putting Intel on a path for 
growth.

Thank you for your ongoing support and belief in our 
purpose, which is at the heart of everything we do—to 
create world-changing technology that improves the life of 
every person on the planet.

Pat Gelsinger, CEO
Intel Corporation

This Annual Report contains forward-looking statements, and actuals results could differ materially. Risk factors that could cause results 
to differ are set forth in the "Risk Factors" section and throughout our 2021 Form 10-K, which is included in this Annual Report. These 
risk factors are subject to update by our future filings and submissions with the U.S. SEC. Forward-looking statements included in our 
2021 Form 10-K are based on management's expectations as of January 26, 2022, and forward-looking statements in the CEO letter 
are based on expectations as of February 17, 2022 with the exception of the March 15, 2022 Europe investment announcement. Intel 
disclaims any obligation to update these statements, except as required by law.

ents 

Corporate Directory

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

BOARD OF DIRECTORS

Patrick P. Gelsinger
(Mark One)
Chief Executive Officer

EXECUTIVE OFFICERS

FORM 10-K 

Patrick P. Gelsinger

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Chief Executive Officer

For the fiscal year ended December 25, 2021.

James J. Goetz
or

David A. Zinsner

Partner

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Executive Vice President 
Chief Financial Officer and

Sequoia Capital

For the transition period from                      to                    .

Andrea J. Goldsmith

Dean of Engineering and Applied Science and 

Commission File Number 000-06217 

Principal Accounting Officer

Professor of Engineering

Princeton University

Alyssa Henry
Square Lead and 

Block Infrastructure and Information Security Lead

INTEL CORPORATION 

(Exact name of registrant as specified in its charter)

Block, Inc.

Delaware
(State or other jurisdiction of incorporation or organization)

94-1672743
(I.R.S. Employer Identification No.)

Dr. Omar Ishrak†

2200 Mission College Boulevard,  Santa Clara, California
(Address of principal executive offices)

Former Executive Chairman and Chief Executive 
Officer

Registrant’s telephone number, including area code (408) 765-8080 
Securities registered pursuant to Section 12(b) of the Act:

95054-1549
(Zip Code)

For additional listing of Intel senior management, 
visit:

www.intel.com/newsroom/bios

Name of each exchange on which registered

Nasdaq Global Select Market

Trading symbol

INTC

Medtronic plc

Title of each class

Common stock, $0.001 par value

Dr. Risa Lavizzo-Mourey

Robert Wood Johnson Foundation PIK

Securities registered pursuant to Section 12(g) of the Act:
None

Professor Emerita
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes ☑  No ☐
University of Pennsylvania
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes ☐  No ☑

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 
Dr. Tsu-Jae King Liu
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 ☑  No ☐
Dean and Roy W. Carlson Professor of Engineering

Indicate by check mark whether the registrant has submitted electronically every interactive data file required to be submitted pursuant to Rule 405 of 
College of Engineering
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 
University of California, Berkeley
files).    Yes ☑  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 
Gregory D. Smith
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.
Former Chief Financial Officer and 

Large Accelerated Filer

Executive Vice President, Enterprise Operations 

Accelerated Filer  

Non-Accelerated Filer  

Smaller Reporting Company  

Emerging Growth Company  

☑

☐

☐

The Boeing 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.   ☐
Dion J. Weisler
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal 
Former President and Chief Executive Officer
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or 
issued its audit report.  ☑
HP Inc.

☐

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes ☐  No ☑

Frank D. Yeary
Aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant as of June 25, 2021, based upon the closing price 
of the common stock as reported by the Nasdaq Global Select Market on such date, was $226.8 billion. 4,072 million shares of common stock were 
Principal
outstanding as of January 21, 2022. 
Darwin Capital Advisors, LLC

DOCUMENTS INCORPORATED BY REFERENCE 

Portions of the registrant’s proxy statement related to its 2022 Annual Stockholders' Meeting to be filed subsequently are incorporated by reference into 
Part III of this Form 10-K. Except as expressly incorporated by reference, the registrant's proxy statement shall not be deemed to be part of this report. 

3

1 Independent Chairman of the Board
** As of March 1, 2022

Table of Contents
Investor Information

Organization of Our Form 10-K 
Intel on NASDAQ

The order and presentation of content in our Form 10-K differs from the traditional SEC Form 10-K format. Our format is designed to 
Intel's common stock trades on the Nasdaq Global Select Market* under the symbol INTC.
improve readability and better present how we organize and manage our business. See "Form 10-K Cross-Reference Index" within the 
Financial Statements and Supplemental Details for a cross-reference index to the traditional SEC Form 10-K format. 
Investor materials
We have defined certain terms and abbreviations used throughout our Form 10-K in "Key Terms" within the Financial Statements and 
Intel's Investor Relations website contains background on our company and our products, financial information, investor presentations, 
Supplemental Details.
frequently asked questions, and our online annual report, as well as other useful information such as news releases and information on 
corporate governance practices and corporate responsibility. For investor information, including additional copies of our annual report/10-
The preparation of our Consolidated Financial Statements is in conformity with US GAAP. Our Form 10-K includes key metrics that we 
K, 10-Qs, or other financial literature, visit our website at www.intc.com or call Intel at (408) 765-1480 (US); (44) 1793 403 000 (Europe); 
use to measure our business, some of which are non-GAAP measures. See "Non-GAAP Financial Measures" within MD&A for an 
(852) 2844 4555 (Hong Kong); (81) 3 5223 9100 (Japan).
explanation of these measures and why management uses them and believes they provide investors with useful supplemental 
information. 
Direct stock purchase plan

Forward-Looking Statements

Fundamentals of Our Business
Intel's Direct Stock Purchase and Dividend Reinvestment Plan allows stockholders to reinvest dividends and purchase Intel common 
stock on a weekly basis. For more information, contact Intel's transfer agent, Computershare Trust Company, N.A., by phone at (800) 
Introduction to Our Business
298-0146 (US and Canada) or (312) 360-5123 (worldwide), or by e-mail though Computershare's website at www.computershare.com/
A Year in Review
contactus.
Our Strategy
Transfer agent and registrar
Our Capital

Page
2

8

4

6

Computershare Trust Company, N.A., 462 South 4th Street Suite 1600, Louisville, KY 40202
Management's Discussion and Analysis
Our Products
US Stockholders may call (800) 298-0146 (US and Canada) or (312) 360-5123 (worldwide), or send e-mail through Computershare's 
website at www.computershare.com/contactus with any questions regarding the transfer of ownership of Intel stock.
How We Organize Our Business

18

19

Segment Trends and Results
Independent registered public accounting firm
Consolidated Results of Operations
Ernst & Young LLP, San Jose, California, US.
Liquidity and Capital Resources

20

37

42

Critical Accounting Estimates
About Intel
Non-GAAP Financial Measures
Intel (NASDAQ: INTC) is an industry leader, creating world-changing technology that improves the life of every person on the planet. 
Other Key Information
Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our 
customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash 
Sales and Marketing
four extraordinary technological capabilities that will fundamentally alter how people experience technology and interact with devices: AI, 
Quantitative and Qualitative Disclosures About Market Risk
pervasive connectivity, cloud to edge, and ubiquitous computing. To learn more about Intel’s innovations, go to 
newsroom.intel.com and intel.com.
Risk Factors

44

49

48

45

50

Properties
Corporate governance and corporate responsibility
Market for Our Common Stock
As a global technology and business leader, we are committed to doing the right things, the right way. The Intel Code of Conduct guides 
Information About Our Executive Officers
the actions of our employees, officers, non-employee directors, wholly owned subsidiaries, and suppliers, ensuring consistent and 
Availability of Company Information
uncompromising integrity as we build trusted relationships around the world. For more information about our corporate governance 
Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934
practices, read our latest Proxy Statement or visit www.intel.com/governance.

64

66

66

64

67

Financial Statements and Supplemental Details
Our integrated approach to corporate responsibility and sustainability-built on a strong foundation of transparency, governance, and 
ethics-creates value for Intel and our stockholders by helping us mitigate risks, reduce costs, build brand value, and identify new market 
Auditor's Reports
opportunities. We set ambitious goals and make strategic investments to drive improvements in environmental sustainability, supply chain 
Consolidated Financial Statements
responsibility, diversity and inclusion, and social impact that benefit the environment and society. Intel's annual Corporate Responsibility 
Notes to Consolidated Financial Statements
Report outlines our strategic priorities and performance on a range of environmental, social, and governance factors. The report and 
supporting materials are available at www.intel.com/responsibility.
Key Terms

111

72

77

69

Controls and Procedures

Exhibits

114

115

Form 10-K Cross-Reference Index

The papers utilized in the production of this Annual Report are all certified for Forest Stewardship 
Council (FSC®) standards, which promote environmentally appropriate, socially beneficial and 
economically viable management of the world’s forests. This annual report was printed by DG3 North 
America. DG3’s facility uses exclusively vegetable based inks, 100% renewable wind energy and 
releases zero VOCs into the environment.

120

Intel, the Intel logo, Intel Inside, and the Intel Inside logo are trademarks of Intel Corporation in the US and/or other countries. © 2019 Intel 
Corporation. All rights reserved. 

*Other names and brands may be claimed as the property of others.  ♻ Printed on recycled paper using soy-based inks.

The order and presentation of content in our Form 10-K differs from the traditional SEC Form 10-K format. Our format is designed to 

improve readability and better present how we organize and manage our business. See "Form 10-K Cross-Reference Index" within the 

Financial Statements and Supplemental Details for a cross-reference index to the traditional SEC Form 10-K format. 

We have defined certain terms and abbreviations used throughout our Form 10-K in "Key Terms" within the Financial Statements and 

Supplemental Details.

The preparation of our Consolidated Financial Statements is in conformity with US GAAP. Our Form 10-K includes key metrics that we 

use to measure our business, some of which are non-GAAP measures. See "Non-GAAP Financial Measures" within MD&A for an 

explanation of these measures and why management uses them and believes they provide investors with useful supplemental 

Table of Contents

Organization of Our Form 10-K 

Management's Discussion and Analysis

information. 

Fundamentals of Our Business

Introduction to Our Business

A Year in Review

Our Strategy

Our Capital

Our Products

How We Organize Our Business

Segment Trends and Results

Consolidated Results of Operations

Liquidity and Capital Resources

Critical Accounting Estimates

Non-GAAP Financial Measures

Other Key Information

Sales and Marketing

Quantitative and Qualitative Disclosures About Market Risk

Risk Factors

Properties

Market for Our Common Stock

Information About Our Executive Officers

Availability of Company Information

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Financial Statements and Supplemental Details

Auditor's Reports

Consolidated Financial Statements

Notes to Consolidated Financial Statements

Key Terms

Exhibits

Controls and Procedures

Form 10-K Cross-Reference Index

Forward-Looking Statements
Awards and Recognitions
This Form 10-K contains forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipate," 
"expect," "intend," "aim," "strive," "objective," "goals," "plans," "ambitions," "opportunity," "outlook," "forecast," "predict," "future," "to be," 
Third-party ratings and rankings give us valuable feedback on our programs and practices, and help drive continuous improvement 
"pending," "roadmap," "achieve," "grow," "committed," "believe," "seek," "targets," "milestones," "estimated," "continue," "likely," "possible," 
over time. Below is a selection of the corporate responsibility-related awards and recognitions that Intel received in 2021.
"may," "might," "potentially," "will," "would," "should," "could," "accelerate," "upcoming," "positioned," "next generation," "progress," "on 
track," and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any 
3BL Media. 100 Best Corporate Citizens
statements that refer to Intel’s strategy and the anticipated benefits of our strategy; manufacturing expansion plans; investment plans and 
American Association of People with Disabilities and Disability:IN. Disability Equality Index
impacts of investment plans; business plans; internal and external manufacturing plans, including future internal manufacturing volumes 
and external foundry usage; future responses to and effects of COVID-19; projections of our future financial performance, including future 
AnitaB.org. America's Top Corporations for Women Technologists
revenue, gross margins, capital expenditures, and cash flows; future business, social, and environmental performance, goals, measures, 
Barron's. 100 Most Sustainable Companies
and strategies; our anticipated growth, future market share, and trends in our businesses and operations; projected growth and trends in 
Bloomberg. Bloomberg Gender-Equality Index
markets relevant to our businesses; future technology trends; plans and goals related to Intel’s foundry business, including with respect to 
future manufacturing capacity and foundry service offerings, including technology and IP offerings; future products and technology, and 
CDP. "A" Water Security Rating, "A" Climate Change Rating, Supplier Engagement Leadership  Rating
the expected regulation, availability, and benefits of such products and technology, including future process nodes and technology, 
Center for Political Accountability. CPA-Zicklin Index of Corporate Political Disclosure and Accountability - Trendsetter Company
product roadmaps, future product architectures, expectations regarding process performance per watt parity and leadership, and 
expectations regarding product leadership; projected cost and yield trends; expected timing and impact of acquisitions, divestitures, and 
Center for Resource Solutions. Renewable Energy Markets Asia Award
other significant transactions, including statements relating to the divestiture of our NAND memory business to SK hynix Inc. (SK hynix) 
Corporate Knights. Global 100 Most Sustainable Corporations 
and our expected use of proceeds; the proposed IPO of Mobileye; future cash requirements; availability, uses, sufficiency, and cost of 
capital of capital resources and sources of funding, including future capital and R&D investments, and expected returns to stockholders 
DisabilityIn: Employee Resource Group of the Year
such as dividends and share repurchases; expectations regarding government incentives; future production capacity and product supply; 
Dow Jones Sustainability Index. North America Index
anticipated trends and impacts related to industry component, substrate, and foundry capacity shortages and constraints; the future 
purchase, use, and availability of products, components, and services supplied by third parties, including third-party IP and foundry 
Ethisphere Institute. World’s Most Ethical Companies
services; tax- and accounting-related expectations; LIBOR-related expectations; our role in the Rapid Assured Microelectronics 
Forbes. World's Best Employers, America’s Best Employers for Women, America's Best Employers for Diversity, America’s Best 
Prototypes - Commercial program; expectations regarding our relationships with certain sanctioned parties; uncertain events or 
Employers for New Grads, and America's Best Employers for Veterans
assumptions, including statements relating to TAM, market opportunity, or projections of future demand; and other characterizations of 
future events or circumstances are forward-looking statements. Such statements are based on management's expectations as of the date 
Fortune. Top 20 Fortune 500 Companies on Diversity and Inclusion
of this filing, unless an earlier date is specified, and involve many risks and uncertainties that could cause our actual results to differ 
FTSE Group. FTSE4Good Index1
materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include those described 
throughout this report and particularly in "Risk Factors" within Other Key Information. Given these risks and uncertainties, readers are 
Gartner. Supply Chain Top 25
cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various 
Human Rights Campaign. Corporate Equality Index
disclosures made in this Form 10-K and in other documents we file from time to time with the SEC that disclose risks and uncertainties 
ISS. 1 rating in both Environment & Social QualityScore2 
that may affect our business. Unless specifically indicated otherwise, the forward-looking statements in this Form 10-K do not reflect the 
potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of 
LATINA Style 50. Top 50 Companies for Latinas to Work in the US
this filing. In addition, the forward-looking statements in this Form 10-K are made as of the date of this filing, unless an earlier date is 
Minority Engineer. Top 50 Employers 
specified, 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 
MSCI. World ESG Leaders Index3 
developments, or otherwise, except to the extent that disclosure may be required by law. 
National Business Inclusion Consortium. Best-of-the-Best Corporations for Inclusion 
Note Regarding Third-Party Information
Newsweek. America’s Most Responsible Companies
Religious Freedom & Business Foundation. Corporate Religious Equity, Diversity and Inclusion Index      
This Form 10-K includes market data and certain other statistical information and estimates that are based on reports and other 
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estimates and analyses. Intel believes these third-party reports to be reputable, but has not independently verified the underlying data 
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inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in 
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Women Engineer Magazine. Top 50 Employers - Readers' Choice

Working Mother. Best Companies for Multicultural Women

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Supplemental Details

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A Year in Review

Total revenue of 

up 1% and DCG revenue 

wide supply constraints. We experienced strength in notebook demand 

and recovery in desktop demand, partially offset by lower notebook 

ASPs due to strength in the consumer and education market segments. 

DCG was down on lower ASPs driven by product mix and a competitive 

environment, partially offset by higher platform

in the enterprise and government market segment. IOTG and Mobileye 

both achieved strong results on higher demand amid recovery from the 

economic impacts of COVID-19. We invested 

made capital investments of 

cash from operations and 

Revenue

■ GAAP $B  

$72.9

$77.9

2020

$79.0B

GAAP

Revenue up 1% 

from 2020

Higher revenue in CCG, IOTG, 

Mobileye, and PSG, partially offset 

by declines in DCG and NSG. Non-

GAAP revenue excludes NSG.

Investing in our IDM 2.0 strategy for the long term

To support our IDM 2.0 strategy, we are making significant capital investments to increase our manufacturing capacity and accelerate our 

process technology roadmap, as well as increasing our investments in R&D. We believe these investments will position us for 

accelerating long-term revenue growth. We expect our long-term revenue outlook to accelerate to a 10% to 12% year-over-year growth 

rate by the end of our five-year horizon as supply normalizes and our investments add capacity and drive leadership products. We expect 

gross margins to be impacted by our investments in capacity and the acceleration of our process technology, resulting in expected non-

GAAP gross margins percentages between 51% and 53%

expenditures to increase above historical levels for the next several years. We expect our cash from operations to be strong, but our 

capital investments to pressure our free cash flow in the short term.

1  See "Our Products

2  See "Non-GAAP Financial Measures

Fundamentals of Our Business

A Year in Review

Total revenue of $79.0 billion was up year over year, with CCG revenue 
up 1% and DCG revenue down 1%, both amid the effects of industry-
wide supply constraints. We experienced strength in notebook demand 
and recovery in desktop demand, partially offset by lower notebook 
ASPs due to strength in the consumer and education market segments. 
DCG was down on lower ASPs driven by product mix and a competitive 
environment, partially offset by higher platform1 volume from recovery 
in the enterprise and government market segment. IOTG and Mobileye 
both achieved strong results on higher demand amid recovery from the 
economic impacts of COVID-19. We invested $15.2 billion in R&D, 
made capital investments of $18.7 billion, and generated $30.0 billion in 
cash from operations and $11.3 billion of free cash flow.

"We achieved solid results amid a highly constrained industry-
wide supply environment while continuing to maintain a strong 
balance sheet and liquidity position. With our IDM 2.0 strategy, we 
enter a phase of significant investment, positioning us for product 
leadership and long-term growth."
—David Zinsner, Chief Financial Officer

Revenue

Operating Income

Diluted EPS

■ GAAP $B  ■ Non-GAAP $B

■ GAAP $B ■ Non-GAAP $B

■ GAAP ■ Non-GAAP

Cash Flows
■ Operating Cash Flow $B
■ Free Cash Flow2 $B

$72.9

$74.7

$77.9

$79.0

$5.10

$5.47

$4.94

$4.86

$24.4

$22.2

$23.7

$19.5

$35.4

$21.1

$30.0

$11.3

2020

2021

2020

2021

2020

2021

2020

2021

$79.0B $74.7B $19.5B $22.2B $4.86
GAAP

GAAP

GAAP

Revenue up 1% 
from 2020

non-GAAP2
Revenue up 2% 
from 2020

$5.47
non-GAAP2
Diluted EPS up 
$0.37 or 7% 
from 2020

$30.0B $11.3B
GAAP

Operating cash 
flow down $5.4B 
or 15%

non-GAAP2
Free cash flow 
down $9.9B or 
47%

Diluted EPS 
down $0.08 or 
2% from 2020 

Higher revenue in CCG, IOTG, 
Mobileye, and PSG, partially offset 
by declines in DCG and NSG. Non-
GAAP revenue excludes NSG.

Lower operating income partially 
offset by equity investment gains, 
lower effective tax rate, and lower 
shares. Non-GAAP results 
incrementally exclude ongoing 
mark-to-market adjustments and tax 
impacts of non-GAAP adjustments.

Lower operating cash flow driven by 
a decrease in net working capital
contributions and cash paid to settle 
a prepaid customer supply 
agreement in Q1 2021, partially 
offset by a McAfee special dividend 
received in Q3 2021. Free cash flow 
decreased due to lower operating 
cash flow and higher capital 
expenditures.

non-GAAP2
Operating 
income down 
$2.2B or 9% 
from 2020; 2021 
operating margin 
at 30%

Operating 
income down 
$4.2B or 18% 
from 2020; 2021 
operating margin 
at 25%
Higher gross margin from higher 
platform and adjacent1 revenue and 
Corporate revenue from a prepaid 
customer supply agreement, 
partially offset by a Corporate 
charge related to VLSI litigation, 
higher period charges from ramp of 
process technology, and higher 
operating expenses on increased 
R&D investment. Non-GAAP 
operating income incrementally 
excludes, amortization of 
acquisition-related intangibles, 
restructuring and the charge related 
to VLSI litigation.

Investing in our IDM 2.0 strategy for the long term

To support our IDM 2.0 strategy, we are making significant capital investments to increase our manufacturing capacity and accelerate our 
process technology roadmap, as well as increasing our investments in R&D. We believe these investments will position us for 
accelerating long-term revenue growth. We expect our long-term revenue outlook to accelerate to a 10% to 12% year-over-year growth 
rate by the end of our five-year horizon as supply normalizes and our investments add capacity and drive leadership products. We expect 
gross margins to be impacted by our investments in capacity and the acceleration of our process technology, resulting in expected non-
GAAP gross margins percentages between 51% and 53%2 over the next several years before moving upward. We also expect our capital 
expenditures to increase above historical levels for the next several years. We expect our cash from operations to be strong, but our 
capital investments to pressure our free cash flow in the short term.

1  See "Our Products" within MD&A. 
2  See "Non-GAAP Financial Measures" within MD&A.

Fundamentals of Our Business

4

New CEO and leadership team changes

Our new CEO Pat Gelsinger joined Intel on February 15, 2021 and made several senior leadership changes throughout the year. We also 
named our new CFO David Zinsner in January 2022. Mr. Gelsinger returns to Intel, where he previously spent 30 years of his career, 
learned at the feet of Intel’s founders, and served as our first Chief Technology Officer.

IDM 2.0

On March 23, 2021, we announced our "IDM 2.0" strategy, the next evolution of our IDM model. Our IDM 2.0 strategy combines our 
internal factory network, strategic use of external foundries, and our new IFS business to position us to drive technology and product 
leadership. To accelerate this strategy, we announced plans to invest $20 billion to build two new fabs in Arizona, which we broke ground 
on in September, and we recently announced plans to invest more than $20 billion in the construction of two new leading-edge fabs in 
Ohio. We also announced approximately $10.5 billion total investment to equip our Rio Rancho, New Mexico and Malaysia sites for 
advanced packaging manufacturing. In August, the US Department of Defense announced that IFS will lead the first phase of its multi-
phase RAMP-C program to facilitate the use of a domestic commercial foundry infrastructure.

Process and packaging technology roadmaps

At the Intel Accelerated event in July 2021, we provided an update on our manufacturing process and packaging technology roadmaps. 
We introduced future nodes, including Intel 3 and Intel 20A, and discussed future process and packaging technologies, such as our 
PowerVia, RibbonFET, Foveros Omni, and Foveros Direct technologies. As part of the update, we also introduced a new naming structure 
for our manufacturing process nodes, which includes the name changes summarized in "Key Terms" within Notes to Consolidated 
Financial Statements.

12th Gen Intel® Core™ processors
We announced the 12th Gen Intel Core processor family (Alder Lake), the first on 
the Intel 7 process, with real-world performance for enthusiast gamers and 
professional creators. Alder Lake is the first processor based on our performance 
hybrid architecture featuring a combination of Performance-cores, the highest 
performing CPU cores Intel has built, and Efficient-cores designed for scalable 
multi-threaded workload performance.

Ice Lake Server processors
We launched the 3rd Gen Intel® Xeon® Scalable CPU (Ice Lake), which boasts 
up to 40 cores and delivers a significant increase in performance, on average, 
compared to the previous generation. The chips include a set of built-in security 
features, cryptographic acceleration, and AI.

5G network products
We also introduced a broad, data-centric portfolio for 5G network infrastructure, 
including an SoC for wireless base stations, structured ASICs for 5G network 
acceleration, and a 5G network-optimized Ethernet NIC.

Intel® Arc™ graphics
We revealed the brand for our upcoming consumer high-performance graphics 
products: Intel Arc. The Arc brand will cover hardware, software, and services, 
and will span multiple hardware generations, with the first generation discrete 
GPU (Alchemist) based on the Xe HPG microarchitecture and shipping to OEMs 
in Q1 2022.

First closing of divestiture of NAND memory business

On December 29, 2021, subsequent to our fiscal 2021 year-end, we completed the first closing of the divestiture of our NAND memory 
business to SK hynix, Inc. (SK hynix). We intend to invest transaction proceeds to deliver leadership products and advance our long-term 
growth priorities.

Fundamentals of Our Business

5

Fundamentals of Our Business

Our Strategy

The world is becoming more digital, and computing more pervasive. Semiconductors are the underlying technology powering the 

digitization of everything, which is being accelerated by four superpowers: ubiquitous compute, cloud-to-edge infrastructure, pervasive 

connectivity, and AI. Together these superpowers reinforce and amplify one another, and will exponentially increase the world’s need for 

computing by packing even more processing capability onto ever-smaller microchips. We intend to lead the industry by harnessing these 

superpowers for our customers’ growth and our own.

We are uniquely positioned with the depth and breadth of our software, silicon and platforms, and packaging and process technology with 

at-scale manufacturing. With these strengths and the tailwinds of the superpowers, our strategy to win is focused on three key themes: 

product leadership, open platforms, and manufacturing at scale. 

Our Priorities

Product Leadership

Lead and democratize compute with Intel x86 and xPU. 

to 5G networks, the cloud, and the emerging fields of AI and autonomous driving, to serve an increasingly smart and connected world.

At our core is the x86 computing ecosystem, which supports an extensive and deep universe of software applications, with billions of lines 

of code written and optimized for x86 CPUs. We continue to advance this ecosystem with x86 microarchitectures focused on 

performance, which push the limits of low latency and single-threaded application performance, and microarchitectures focused on 

efficiency, which are designed for computing throughput efficiency to enable scalable multithreaded performance. Our innovative new 12th 

Gen client processors (Alder Lake) combine both performance cores and efficient cores in a performance hybrid architecture that can 

direct workloads to the right core depending on whether they require higher performance or power efficiency. We can also combine these 

architectural advances with our innovations in process and packaging technology, as in our next-generation Intel Xeon data center CPU 

(Sapphire Rapids), which will utilize performance cores on multiple compute tiles connected through our EMIB packaging technology in a 

scalable design, rather than being built on a monolithic silicon die. 

Beyond the CPU, we are delivering a growing family of xPU products, which encompass client and data center GPUs, IPUs, FPGAs, and 

other accelerators. The xPU approach recognizes that different workloads benefit from different computing architectures, and our broad 

portfolio helps meet our customers' increasingly diverse computing needs. As part of our strategy, we seek to develop and offer leading 

products across each of these architectural categories. Our vision is that our products will help enable a future in which every human can 

have one petaflop of computing power and one petabyte of data less than one millisecond away.

Our new CEO Pat Gelsinger joined Intel on February 15, 2021 and made several senior leadership changes throughout the year. We also 

named our new CFO David Zinsner in January 2022. Mr. Gelsinger returns to Intel, where he previously spent 30 years of his career, 

On March 23, 2021, we announced our "IDM 2.0" strategy, the next evolution of our IDM model. Our IDM 2.0 strategy combines our 

internal factory network, strategic use of external foundries, and our new IFS business to position us to drive technology and product 

leadership. To accelerate this strategy, we announced plans to invest $20 billion to build two new fabs in Arizona, which we broke ground 

on in September, and we recently announced plans to invest more than $20 billion in the construction of two new leading-edge fabs in 

Ohio. We also announced approximately $10.5 billion total investment to equip our Rio Rancho, New Mexico and Malaysia sites for 

advanced packaging manufacturing. In August, the US Department of Defense announced that IFS will lead the first phase of its multi-

At the Intel Accelerated event in July 2021, we provided an update on our manufacturing process and packaging technology roadmaps. 

We introduced future nodes, including Intel 3 and Intel 20A, and discussed future process and packaging technologies, such as our 

PowerVia, RibbonFET, Foveros Omni, and Foveros Direct technologies. As part of the update, we also introduced a new naming structure 

Notes to Consolidated 

Our Strategy

The world is becoming more digital, and computing more pervasive. Semiconductors are the underlying technology powering the 
digitization of everything, which is being accelerated by four superpowers: ubiquitous compute, cloud-to-edge infrastructure, pervasive 
connectivity, and AI. Together these superpowers reinforce and amplify one another, and will exponentially increase the world’s need for 
computing by packing even more processing capability onto ever-smaller microchips. We intend to lead the industry by harnessing these 
superpowers for our customers’ growth and our own.

We are uniquely positioned with the depth and breadth of our software, silicon and platforms, and packaging and process technology with 
at-scale manufacturing. With these strengths and the tailwinds of the superpowers, our strategy to win is focused on three key themes: 
product leadership, open platforms, and manufacturing at scale. 

Our Priorities

business to SK hynix, Inc. (SK hynix). We intend to invest transaction proceeds to deliver leadership products and advance our long-term 

, subsequent to our fiscal 2021 year-end, we completed the first closing of the divestiture of our NAND memory 

Product Leadership

Lead and democratize compute with Intel x86 and xPU. Our product offerings provide end-to-end solutions, scaling from edge computing 
to 5G networks, the cloud, and the emerging fields of AI and autonomous driving, to serve an increasingly smart and connected world.

At our core is the x86 computing ecosystem, which supports an extensive and deep universe of software applications, with billions of lines 
of code written and optimized for x86 CPUs. We continue to advance this ecosystem with x86 microarchitectures focused on 
performance, which push the limits of low latency and single-threaded application performance, and microarchitectures focused on 
efficiency, which are designed for computing throughput efficiency to enable scalable multithreaded performance. Our innovative new 12th 
Gen client processors (Alder Lake) combine both performance cores and efficient cores in a performance hybrid architecture that can 
direct workloads to the right core depending on whether they require higher performance or power efficiency. We can also combine these 
architectural advances with our innovations in process and packaging technology, as in our next-generation Intel Xeon data center CPU 
(Sapphire Rapids), which will utilize performance cores on multiple compute tiles connected through our EMIB packaging technology in a 
scalable design, rather than being built on a monolithic silicon die. 

Beyond the CPU, we are delivering a growing family of xPU products, which encompass client and data center GPUs, IPUs, FPGAs, and 
other accelerators. The xPU approach recognizes that different workloads benefit from different computing architectures, and our broad 
portfolio helps meet our customers' increasingly diverse computing needs. As part of our strategy, we seek to develop and offer leading 
products across each of these architectural categories. Our vision is that our products will help enable a future in which every human can 
have one petaflop of computing power and one petabyte of data less than one millisecond away.

5

Fundamentals of Our Business

6

We deploy various forms of capital to execute our strategy in a way that seeks to reflect our corporate values, help our customers 

succeed, and create value for our stakeholders. 

Open Platforms

We aim to deliver open software and hardware platforms with industry-defining standards. Around the globe, companies are building their 
networks, systems, and solutions on open standards-based platforms. Intel has helped set the stage for this movement, with our historic 
contributions in developing standards such as CXL, ThunderboltTM, and PCle. We also contributed to the design, build, and validation of 
new open-source products in the industry such as Linux, Android, and others. The world's developers constantly innovate and expand the 
capabilities of these open platforms while increasing their stability, reliability, and security. In addition, microservices have enabled the 
development of flexible, loosely coupled services that are connected via APIs to create end-to-end processes. We use industry 
collaboration, co-engineering, and open-source contributions to accelerate software innovation. Through our oneAPI initiative, developers 
use a unified language across CPUs, GPUs, and FPGAs to cut down on development time and to enhance productivity. We also deliver a 
steady stream of open-source code and optimizations for projects across virtually every platform and usage model. We are committed to 
co-engineering and jointly designing, building, and validating new products with software industry leaders to accelerate mutual technology 
advancements and help new software and hardware work better together. Our commitment extends to developers through our developer-
first approach based on openness, choice, and trust. 

Manufacturing at Scale 

In March 2021, we introduced IDM 2.0, the next evolution and expansion of our IDM model. IDM 2.0 is a differentiated strategy that 
combines three capabilities:

Internal factory network. Our global, internal factory network has been foundational to our success, enabling product optimization, 
improved economics, and supply resilience. We intend to remain a leading developer of process technology and a major manufacturer of 
semiconductors and will continue to build the majority of our products in our factories.

Our Capital

Capital

Financial

Intellectual

Manufacturing

Strategic use of foundry capacity. We expect to expand our use of third-party foundry manufacturing capacity, which will provide us with 
increased flexibility and scale to optimize our product roadmaps for cost, performance, schedule, and supply. Our use of foundry capacity 
will include manufacturing for a range of modular tiles on advanced process technologies. 

Human

Foundry services. We intend to build a world-class foundry business to meet the growing global demand for semiconductors. We plan to 
differentiate our foundry offerings from those of others through a combination of leading-edge packaging and process technology, 
committed capacity in the US and Europe available for customers globally, and a world-class IP portfolio that will include x86 cores, as 
well as other ecosystem IP. 

Social and Relationship

We believe our IDM 2.0 strategy will enable us to deliver leading process technology and products to meet growing demand, while 
providing superior capacity and supply resilience and an advantageous cost structure.

Delivering on our IDM 2.0 strategy and growth ambitions requires attracting, developing, and retaining top talent from across the world. 
Fostering a culture of empowerment, inclusion, and accountability is also core to our strategy. We are committed to creating an inclusive 
workplace where the world’s best engineers and technologists can fulfill their dreams and create technology that improves the life of every 
person on the planet.

Natural

Growth Imperative

We are investing to position the company for accelerated long-term growth, focusing on both our core businesses and our growth 
businesses. In our client and server businesses, our strategy is to invest to strengthen the competitiveness of our product roadmap and to 
explore opportunities in both client and data center adjacencies. We believe we have significant opportunities to grow and gain share in 
graphics; mobility, including autonomous driving; networking and edge; and foundry services. 

Focus on Innovation and Execution

We are focused on executing our product and process roadmap and accelerating our cadence of innovation. We have set a detailed 
process and packaging technology roadmap and announced key architectural innovations to further our goal of delivering leadership 
products in every area in which we compete. We are seeking to return our culture to its roots in innovation and execution, drawing on 
principles established by our former CEO Andy Grove that emphasize discipline and accountability.

2030 RISE Strategy and Corporate Responsibility Goals

Our commitment to corporate responsibility and sustainability leadership is deeply integrated throughout our business. We strive to create 

an inclusive and positive work environment where every employee has a voice and a sense of belonging, and we are proactive in our 

efforts to reduce our environmental footprint through efficient and responsible use of natural resources and materials.

We continue to raise the bar for ourselves and leverage our leadership position in the global technology ecosystem to make greater 

strides in corporate responsibility and apply technology to address social and environmental challenges. Through our 

2030 goals, we aim to create a more 

and passion of our employees. Our corporate responsibility strategy is designed to increase the scale of our work through collaboration 

with our stakeholders and other organizations; we know that acting alone, we cannot achieve the broad social impact to which we aspire. 

More information about our 2030 goals, including progress we have made toward achieving them, is included in our Corporate 

Responsibility Report

Fundamentals of Our Business

7

Fundamentals of Our Business

1  The contents of our Corporate Responsibility Report are referenced for general information only and are not incorporated by reference in this Form 10-K.

 
. Around the globe, companies are building their 

networks, systems, and solutions on open standards-based platforms. Intel has helped set the stage for this movement, with our historic 

, and PCle. We also contributed to the design, build, and validation of 

new open-source products in the industry such as Linux, Android, and others. The world's developers constantly innovate and expand the 

capabilities of these open platforms while increasing their stability, reliability, and security. In addition, microservices have enabled the 

development of flexible, loosely coupled services that are connected via APIs to create end-to-end processes. We use industry 

collaboration, co-engineering, and open-source contributions to accelerate software innovation. Through our oneAPI initiative, developers 

use a unified language across CPUs, GPUs, and FPGAs to cut down on development time and to enhance productivity. We also deliver a 

steady stream of open-source code and optimizations for projects across virtually every platform and usage model. We are committed to 

co-engineering and jointly designing, building, and validating new products with software industry leaders to accelerate mutual technology 

advancements and help new software and hardware work better together. Our commitment extends to developers through our developer-

In March 2021, we introduced IDM 2.0, the next evolution and expansion of our IDM model. IDM 2.0 is a differentiated strategy that 

improved economics, and supply resilience. We intend to remain a leading developer of process technology and a major manufacturer of 

 Our global, internal factory network has been foundational to our success, enabling product optimization, 

We intend to build a world-class foundry business to meet the growing global demand for semiconductors. We plan to 

differentiate our foundry offerings from those of others through a combination of leading-edge packaging and process technology, 

committed capacity in the US and Europe available for customers globally, and a world-class IP portfolio that will include x86 cores, as 

We believe our IDM 2.0 strategy will enable us to deliver leading process technology and products to meet growing demand, while 

Our Capital

We deploy various forms of capital to execute our strategy in a way that seeks to reflect our corporate values, help our customers 
succeed, and create value for our stakeholders. 

Capital
Financial

Strategy

Value

increased flexibility and scale to optimize our product roadmaps for cost, performance, schedule, and supply. Our use of foundry capacity 

Human

 We expect to expand our use of third-party foundry manufacturing capacity, which will provide us with 

Intellectual

Manufacturing

Leverage financial capital to invest in ourselves and drive 
our IDM 2.0 strategy, supplement and strengthen our 
capabilities through acquisitions, and provide returns to 
stockholders.

We strategically invest financial capital to create long-term 
value and provide returns to our stockholders.

Invest significantly in R&D and IP to enable us to deliver on 
our accelerated process technology roadmap, introduce 
leading x86 and xPU products, and develop new 
businesses and capabilities.

We develop IP to enable next-generation products, create 
synergies across our businesses, expand into new 
markets, and establish and support our brands.

Aligned with our IDM 2.0 strategy, invest to efficiently build 
manufacturing capacity to address growing global demand 
for semiconductors.

Our geographically balanced manufacturing scope and 
scale enable us to provide our customers and consumers 
with a broad range of leading-edge products.

Continue to build a diverse, inclusive, and safe work 
environment to attract, develop, and retain top talent 
needed to build transformative products.

Our talented employees enable the development of 
solutions and enhance the intellectual and manufacturing 
capital critical to helping our customers win the technology 
inflections of the future.

Delivering on our IDM 2.0 strategy and growth ambitions requires attracting, developing, and retaining top talent from across the world. 

Fostering a culture of empowerment, inclusion, and accountability is also core to our strategy. We are committed to creating an inclusive 

workplace where the world’s best engineers and technologists can fulfill their dreams and create technology that improves the life of every 

Natural

Social and Relationship

Build trusted relationships for both Intel and our 
stakeholders, including employees, suppliers, customers, 
local communities, and governments.

We collaborate with stakeholders on programs to empower 
underserved communities through education and 
technology, and on initiatives to advance accountability 
and capabilities across our global supply chain, including 
accountability for the respect of human rights.

We are investing to position the company for accelerated long-term growth, focusing on both our core businesses and our growth 

businesses. In our client and server businesses, our strategy is to invest to strengthen the competitiveness of our product roadmap and to 

explore opportunities in both client and data center adjacencies. We believe we have significant opportunities to grow and gain share in 

2030 RISE Strategy and Corporate Responsibility Goals

Continually strive to reduce our environmental footprint 
through efficient and responsible use of natural resources 
and materials used to create our products.

With our proactive efforts, we seek to mitigate climate and 
water impacts, achieve efficiencies, and lower costs, and 
position us to respond to the expectations of our 
stakeholders.

We are focused on executing our product and process roadmap and accelerating our cadence of innovation. We have set a detailed 

process and packaging technology roadmap and announced key architectural innovations to further our goal of delivering leadership 

products in every area in which we compete. We are seeking to return our culture to its roots in innovation and execution, drawing on 

Our commitment to corporate responsibility and sustainability leadership is deeply integrated throughout our business. We strive to create 
an inclusive and positive work environment where every employee has a voice and a sense of belonging, and we are proactive in our 
efforts to reduce our environmental footprint through efficient and responsible use of natural resources and materials.

We continue to raise the bar for ourselves and leverage our leadership position in the global technology ecosystem to make greater 
strides in corporate responsibility and apply technology to address social and environmental challenges. Through our RISE strategy and 
2030 goals, we aim to create a more responsible, inclusive, and sustainable world, enabled through our technology and the expertise 
and passion of our employees. Our corporate responsibility strategy is designed to increase the scale of our work through collaboration 
with our stakeholders and other organizations; we know that acting alone, we cannot achieve the broad social impact to which we aspire. 
More information about our 2030 goals, including progress we have made toward achieving them, is included in our Corporate 
Responsibility Report1.

1  The contents of our Corporate Responsibility Report are referenced for general information only and are not incorporated by reference in this Form 10-K.

7

Fundamentals of Our Business Our Capital

8

 
Financial Capital

Our financial capital allocation strategy focuses on building stockholder value. Our allocation decisions are driven by our priorities to invest 
in the business, acquire and integrate businesses that complement our strategic objectives, and return cash to stockholders. As we invest 
in our IDM 2.0 strategy, our allocation priorities will shift more heavily toward investing in the business and away from share repurchases, 
as we plan our next phase of capacity expansions and the acceleration of our process technology roadmap. We will continue to look for 
opportunities to further our strategy through acquisitions and intend to maintain our dividend.

R&D investment is critical to enable us to deliver on our accelerated process technology roadmap, introduce leading products, and 

develop new businesses and capabilities in the future. We seek to protect our R&D efforts through our IP rights and may augment R&D 

initiatives by acquiring or investing in companies, entering into R&D agreements, and directly purchasing or licensing technology.

Cash from Operating Activities $B

Areas Key to Product Leadership

Intellectual Capital

Research and Development

$33.1

$35.4

$16.9

$21.1

$29.4

$14.3

$15.2

$16.2

$14.3

$30.0

$11.3

$18.7

$22.1

$10.3

$11.8

2017

2018

2019

2020

2021

▪ We introduced further optimizations to our Intel 7 process node, which is now in production for our 12th Gen Intel Core (Alder 

■ Capital Investment

■ Free Cash Flow1

Intel 4 will make use of EUV to print incredibly small features using ultra-short wavelength light. Intel 4 will be used for 

Our Financial Capital Allocation Decisions Are Driven by Three Priorities

Invest in the Business

Our first allocation priority is to invest in R&D and capital spending to capitalize on the opportunity presented by the world's demand for 
semiconductors. We expect to increase our R&D investment and our capital investments in support of our IDM 2.0 strategy.

Acquire and Integrate

Our second allocation priority is to invest in and acquire companies that complement our strategic objectives. We look for acquisitions that 
supplement and strengthen our capital and R&D investments. Our key acquisitions over the last three years include our 2020 acquisition 
of Moovit to accelerate Mobileye’s mobility-as-a-service offering and our 2019 acquisition of Habana Labs to strengthen and extend the 
reach of our AI portfolio.

We take action when investments do not strategically align to our key priorities, and subsequent to our fiscal 2021 year-end, we 
completed the first closing of the divestiture of our NAND memory business. Additionally, in 2020 we completed the divestiture of the 
majority of Home Gateway Platform, a division of CCG, and in 2019 we divested the majority of our smartphone modem business.

Return Cash to Stockholders

Our third allocation priority is to return cash to stockholders. We achieve this through our dividend and share repurchase programs. We 
expect our future stock repurchases to be significantly below our levels from the last few years. 

R&D and Capital Investments $B

Cash to Stockholders $B

$28.7

$29.6

$27.8

$24.8

$33.9

$5.6

$5.6

$13.6

$14.2

$5.5

$10.7

$5.1

$3.6

$5.6

$2.4

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

■ R&D ■ Logic ■ Memory2

■ Buyback ■ Dividend

1  See "Non-GAAP Financial Measures" within MD&A.
2  2021 capital investments in Memory are not presented due to the divestiture of the NAND memory business announced in October 2020. 2017-2020 
capital investments presented include Memory. 

Fundamentals of Our Business Our Capital

9

Fundamentals of Our Business

Every year we make significant investments in R&D and we have intensified our focus on areas key to product leadership. Our objective 

with each new generation of products is to improve user experiences and value through advances in performance, power, cost, 

connectivity, security, form factor, and other features. We also focus on reducing our design complexity, re-using IP, and increasing 

ecosystem collaboration to improve our efficiency.

Process and packaging.

packaging technology roadmaps. As part of the update, we also introduced a new naming structure for our manufacturing process 

nodes, which includes the name changes summarized in "Key Terms". In addition, we introduced future nodes and discussed future 

process and packaging technologies on our roadmap. Our updates included the following: 

▪

▪

▪

▪

▪

Lake) processors.

Meteor Lake client processors.

improvements over Intel 4.

Intel 3 will leverage further FinFET optimizations and increased EUV to deliver additional performance-per-watt and area 

Intel 20A will follow Intel 3 and will introduce two breakthrough technologies: Ribbon FET and PowerVia. RibbonFET, Intel’s 

implementation of a gate-all-around transistor, will be our first new transistor architecture since we pioneered FinFET in 2011. 

The technology is expected to deliver faster transistor switching speeds while achieving the same drive current as multiple fins 

in a smaller footprint. PowerVia will be our unique industry-first implementation of backside power delivery, optimizing signal 

transmission by eliminating the need for power routing on the front side of the wafer.

Beyond Intel 20A, we are developing our Intel 18A node, with expected refinements to RibbonFET to deliver additional 

transistor performance improvements. We are also working to define, build, and deploy next-generation High Numerical 

Aperture EUV in our process technology roadmap.

Our future Foveros Omni advanced packaging technology will usher in the next generation of our 3D stacking Foveros 

technology, enabling us to mix multiple top die tiles with multiple base tiles across mixed fab nodes and giving us greater 

flexibility for disaggregated chip designs. With our future Foveros Direct technology, we will move to direct copper-to-copper 

bonding for low-resistance interconnects and blur the boundary between where the wafer ends and the package begins.

FPGA sockets, enabled by a scalable software stack and integrated into systems by advanced packaging technology. We are building 

processors that span several major computing architectures, moving toward an era of heterogeneous computing: 

acceleration, cryptographic acceleration, and advanced security capabilities. We also launched our 12th Gen Intel Core 

processors (Alder Lake), which will scale from thin and light laptops to enthusiast desktop and notebook platforms. They utilize 

the new breakthrough Performance-core (Golden Cove) and Efficient-core (Gracemont) microarchitectures and work with Intel

Thread Director for scheduling optimization.

and content creation, which began shipping to OEMs in Q1 2022. We also powered on Ponte Vecchio, our discrete GPU focused 

on high-performance computing applications, which delivers leading floating-point operations per second (FLOPS) and compute 

density to accelerate AI, high-performance computing, and advanced analytics workloads. Ponte Vecchio will be released in 

2022 for HPC and AI markets.

▪

Interconnect.

CPUs.

▪ Matrix Accelerator. 

An IPU is designed to enable cloud and communication service providers to reduce overhead and free up performance for 

launched the EC2 DL1 instance featuring Habana Gaudi in Amazon Elastic Compute Cloud for training deep learning models.

xPU architecture. 

▪

CPU.

▪

GPU.

 
 
 
 
Our financial capital allocation strategy focuses on building stockholder value. Our allocation decisions are driven by our priorities to invest 

in the business, acquire and integrate businesses that complement our strategic objectives, and return cash to stockholders. As we invest 

in our IDM 2.0 strategy, our allocation priorities will shift more heavily toward investing in the business and away from share repurchases, 

as we plan our next phase of capacity expansions and the acceleration of our process technology roadmap. We will continue to look for 

Our first allocation priority is to invest in R&D and capital spending to capitalize on the opportunity presented by the world's demand for 

Our second allocation priority is to invest in and acquire companies that complement our strategic objectives. We look for acquisitions that 

supplement and strengthen our capital and R&D investments. Our key acquisitions over the last three years include our 2020 acquisition 

of Moovit to accelerate Mobileye’s mobility-as-a-service offering and our 2019 acquisition of Habana Labs to strengthen and extend the 

We take action when investments do not strategically align to our key priorities, and subsequent to our fiscal 2021 year-end, we 

completed the first closing of the divestiture of our NAND memory business. Additionally, in 2020 we completed the divestiture of the 

majority of Home Gateway Platform, a division of CCG, and in 2019 we divested the majority of our smartphone modem business.

Our third allocation priority is to return cash to stockholders. We achieve this through our dividend and share repurchase programs. We 

Intellectual Capital

Research and Development

R&D investment is critical to enable us to deliver on our accelerated process technology roadmap, introduce leading products, and 
develop new businesses and capabilities in the future. We seek to protect our R&D efforts through our IP rights and may augment R&D 
initiatives by acquiring or investing in companies, entering into R&D agreements, and directly purchasing or licensing technology.

Areas Key to Product Leadership

Every year we make significant investments in R&D and we have intensified our focus on areas key to product leadership. Our objective 
with each new generation of products is to improve user experiences and value through advances in performance, power, cost, 
connectivity, security, form factor, and other features. We also focus on reducing our design complexity, re-using IP, and increasing 
ecosystem collaboration to improve our efficiency.

Process and packaging. At our Intel Accelerated event in July 2021, we provided an update on our manufacturing process and 
packaging technology roadmaps. As part of the update, we also introduced a new naming structure for our manufacturing process 
nodes, which includes the name changes summarized in "Key Terms". In addition, we introduced future nodes and discussed future 
process and packaging technologies on our roadmap. Our updates included the following: 

▪ We introduced further optimizations to our Intel 7 process node, which is now in production for our 12th Gen Intel Core (Alder 

Lake) processors.

▪

▪

▪

▪

▪

Intel 4 will make use of EUV to print incredibly small features using ultra-short wavelength light. Intel 4 will be used for our future 
Meteor Lake client processors.

Intel 3 will leverage further FinFET optimizations and increased EUV to deliver additional performance-per-watt and area 
improvements over Intel 4.

Intel 20A will follow Intel 3 and will introduce two breakthrough technologies: Ribbon FET and PowerVia. RibbonFET, Intel’s 
implementation of a gate-all-around transistor, will be our first new transistor architecture since we pioneered FinFET in 2011. 
The technology is expected to deliver faster transistor switching speeds while achieving the same drive current as multiple fins 
in a smaller footprint. PowerVia will be our unique industry-first implementation of backside power delivery, optimizing signal 
transmission by eliminating the need for power routing on the front side of the wafer.

Beyond Intel 20A, we are developing our Intel 18A node, with expected refinements to RibbonFET to deliver additional 
transistor performance improvements. We are also working to define, build, and deploy next-generation High Numerical 
Aperture EUV in our process technology roadmap.

Our future Foveros Omni advanced packaging technology will usher in the next generation of our 3D stacking Foveros 
technology, enabling us to mix multiple top die tiles with multiple base tiles across mixed fab nodes and giving us greater 
flexibility for disaggregated chip designs. With our future Foveros Direct technology, we will move to direct copper-to-copper 
bonding for low-resistance interconnects and blur the boundary between where the wafer ends and the package begins.

xPU architecture. The future is a diverse mix of scalar, vector, matrix, and spatial architectures deployed in CPU, GPU, accelerator, and 
FPGA sockets, enabled by a scalable software stack and integrated into systems by advanced packaging technology. We are building 
processors that span several major computing architectures, moving toward an era of heterogeneous computing: 

▪

▪

▪

CPU. We started shipping our 3rd Gen Xeon Scalable processors (Ice Lake) with the new Sunny Cove core, built-in AI 
acceleration, cryptographic acceleration, and advanced security capabilities. We also launched our 12th Gen Intel Core 
processors (Alder Lake), which will scale from thin and light laptops to enthusiast desktop and notebook platforms. They utilize 
the new breakthrough Performance-core (Golden Cove) and Efficient-core (Gracemont) microarchitectures and work with Intel® 
Thread Director for scheduling optimization.

GPU. We announced Alchemist, our first Intel Arc branded high-performance discrete GPU family of products focused on gaming 
and content creation, which began shipping to OEMs in Q1 2022. We also powered on Ponte Vecchio, our discrete GPU focused 
on high-performance computing applications, which delivers leading floating-point operations per second (FLOPS) and compute 
density to accelerate AI, high-performance computing, and advanced analytics workloads. Ponte Vecchio will be released in 
2022 for HPC and AI markets.

Interconnect. Mount Evans, Intel’s first ASIC IPU, is designed to address the complexity of diverse and dispersed data centers. 
An IPU is designed to enable cloud and communication service providers to reduce overhead and free up performance for 
CPUs.

▪ Matrix Accelerator. Habana Gaudi accelerators are at the forefront of AI solutions for data centers. Amazon Web Services 

launched the EC2 DL1 instance featuring Habana Gaudi in Amazon Elastic Compute Cloud for training deep learning models.

  2021 capital investments in Memory are not presented due to the divestiture of the NAND memory business announced in October 2020. 2017-2020 

9

Fundamentals of Our Business Our Capital

10

 
Software. Software unleashes the potential of our hardware platforms across all workloads, domains, and architectures. 

▪

In 2021, oneAPI adoption expanded across the industry. oneAPI enables developers to build cross-architecture applications 
using a single code base across xPUs that take advantage of unique hardware features and lower software development and 
maintenance costs. Developers can choose the best architecture for the problem at hand without rewriting their entire code base, 
accelerating their time to value.

▪ We seek to accelerate adoption of oneAPI and Intel software developer tools through diverse ecosystem activities including 

developer trainings, summits, centers of excellence, and access to Intel hardware and software through a developer cloud. The 
Intel® DevCloud for oneAPI hosts global users spanning AI, data science, high-performance computing, and media & graphics 
and other accelerated computing workloads.

▪ We believe AI will be ubiquitous, and with our tools and the broad open software ecosystem, we are well-positioned to scale AI. 

We optimize for the most widely used AI frameworks and libraries, including TensorFlow, Pytorch, Scikit-learn, NumPy, XGBoost, 
and Spark, with certain optimizations delivering up to 10 to 100 times performance improvements to support end-to-end AI, as 
well as OpenVINOTM and oneAPI AI Analytics toolkits.

▪ We seek to continually improve our BIOS and firmware in support of our client, data center, networking, and graphics products, 
including delivering simplified and cloud-optimized open firmware for data center customers through our Firmware Support 
Package and Minimum Platform Architecture. 

IP Rights

We own and develop significant IP and related IP rights around the world that support our products, services, R&D, and other activities 
and assets. Our IP portfolio includes patents, copyrights, trade secrets, trademarks, mask works, and other rights. We actively seek to 
protect our global IP rights and to deter unauthorized use of our IP and other assets. 

We have obtained patents in the US and other countries. Because of the fast pace of innovation and product development, our products 
are often obsolete before the patents related to them expire, and in some cases may be obsolete before the patents are granted. As we 
expand our product offerings into new areas, we also seek to extend our patent development efforts to patent such products. In addition to 
developing patents based on our own R&D efforts, we may purchase or license patents from third parties. 

The software that we distribute, including software embedded in our products, is entitled to copyright and other IP protection. To 
distinguish our products from our competitors' products, we have obtained trademarks and trade names for our products, and we maintain 
cooperative advertising programs with customers to promote our brands and to identify products containing genuine Intel components. 
We also protect details about our processes, products, and strategies as trade secrets, keeping confidential the information that we 
believe provides us with a competitive advantage.

Efforts to protect our IP can be difficult, particularly in countries that provide less protection to IP rights and in the absence of harmonized 
international IP standards. Competitors and others may already have IP rights covering similar products. There is no assurance that we 
will be able to obtain IP rights covering our own products, or that we will be able to obtain IP licenses from other companies on favorable 
terms or at all. For a discussion of IP-related risks, see "Risk Factors" within Other Key Information. While our IP rights are important to 
our success, our business as a whole is not significantly dependent on any single patent, copyright, or other IP right.

"Here at Intel, we take pride in attracting some of the world’s best engineers, technologists, and 
innovators. We are advocates for a patent system that eliminates abuse by hedge funds and 
others who exploit weaknesses in the system to drive their profits at the expense of those of us 
who actually invent, create, and produce products that are central to the modern economy."

—Steve Rodgers, Executive Vice President and General Counsel

Manufacturing Capital

Inspired by Moore's Law, a law of economics put forth by our co-founder Gordon Moore more than 50 years ago, we continuously work to 
advance the design and manufacturing of semiconductors to help address our customers' greatest challenges. This makes possible the 
innovation of new products with higher performance while balancing power efficiency, cost, and size. We continue to work across our 
supply chain to minimize disruptions, improve productivity, and increase overall capacity and output to meet customer expectations. In 
2021, our factories performed well in a highly dynamic environment, where we adapted to rapid demand shifts and industry component 
shortages affecting us and our customers.

Our IDM 2.0 strategy allows us to deliver leadership products through the use of internal and external capacity while leveraging our core 
strengths for growth via providing foundry services to others. IDM 2.0 combines three factors. First, we will continue to build the majority of 
our products in Intel fabs. Second, we expect our use of third party foundry capacity to grow and to include manufacturing for a range of 
modular tiles on advanced process technologies. Third, we intend to build a world-class foundry business with IFS, which will combine 
leading-edge process and packaging technology, committed capacity in the US and Europe, and a world-class IP portfolio for customers, 
including x86 cores. During the year we began shipping packaging units for our first IFS customer, Amazon Web Services.

Network and Supply Chain

Our global supply chain supports internal partners across architecture, product design, 

operations, sales and marketing, and business units, and our supply ecosystem comprises thousands of suppliers globally. Our mission is 

to enable product and process leadership, industry-leading total cost of ownership, and uninterrupted supply for our cus

to our own manufacturing capacity, we continue to expand our use of third-party foundries. 

The majority of our logic wafer manufacturing is conducted in the US. As of our fiscal 2021 year-end, we had ten manufacturing sites — 

six are wafer fabrication and four are assembly/test facilities. The following map shows these factory sites and the countries where we 

have a significant R&D and/or sales presence. In response to COVID-19, we maintained operational changes and measures to enable a 

continued safe environment for our employees and operation of our manufacturing sites.

Our manufacturing facilities are primarily used for silicon wafer manufacturing, assembling, and testing of our platform products. We 

operate in a network of manufacturing facilities integrated as one factory to provide the most flexible supply capacity, allowing us to better 

analyze our production costs and adapt to changes in capacity needs. Our new process technologies are transferred identically from a 

central development fab to each manufacturing facility. After transfer, the network of factories and the development fab collaborate to 

continue driving operational improvements. This enables fast ramp of the operation, fast learning, and quality control. We are expanding 

manufacturing capacity across multiple sites, including Arizona, Ireland, Israel, and Oregon. To accelerate our IDM 2.0 strategy, we 

announced plans to invest $20 billion to build two new fabs in Arizona, which we broke ground on in September, and we recently 

announced plans to invest more than $20 billion in the construction of two new leading-edge fabs in Ohio, while actively searching for 

additional manufacturing locations in Europe. Our plans include utilizing a "smart capital" strategy in which we focus first on aggressively 

building out fab shells, which are the smaller portion of the overall cost of a fab but have the longest lead time, giving us flexibility in how 

and when we bring additional capacity and tools online. We also announced approximately $10.5 billion total investment to equip our Rio 

Rancho, New Mexico and Malaysia sites for advanced packaging manufacturing.

Note: The Dalian factory, presented above, was sold subsequent to year-end as part of the first closing of the divestiture of our NAND Memory business. 

See Note 10: Acquisitions and Divestitures.

Fundamentals of Our Business Our Capital

11

Fundamentals of Our Business

 
 
“In alignment with our IDM 2.0 strategy, we are repositioning Intel for growth by increasing our 
investment in internal manufacturing, expanding our global capacity for supply chain resiliency, 
and delivering on world class manufacturing execution.”

—Keyvan Esfarjani, Senior Vice President and General Manager of Manufacturing, Supply Chain, and 
Operations

"Process and packaging are at the very heart of Intel’s heritage and are the foundation of 
everything we build. With the roadmaps we unveiled this year, we plan to accelerate our rate of 
innovation to reach process performance-per-watt parity by 2024 and leadership by 2025, and to 
maintain advanced packaging leadership." 

—Dr. Ann Kelleher, Executive Vice President and General Manager of Technology Development

Network and Supply Chain

Our global supply chain supports internal partners across architecture, product design, technology development, manufacturing and 
operations, sales and marketing, and business units, and our supply ecosystem comprises thousands of suppliers globally. Our mission is 
to enable product and process leadership, industry-leading total cost of ownership, and uninterrupted supply for our customers. In addition 
to our own manufacturing capacity, we continue to expand our use of third-party foundries. 

The majority of our logic wafer manufacturing is conducted in the US. As of our fiscal 2021 year-end, we had ten manufacturing sites — 
six are wafer fabrication and four are assembly/test facilities. The following map shows these factory sites and the countries where we 
have a significant R&D and/or sales presence. In response to COVID-19, we maintained operational changes and measures to enable a 
continued safe environment for our employees and operation of our manufacturing sites.

Our manufacturing facilities are primarily used for silicon wafer manufacturing, assembling, and testing of our platform products. We 
operate in a network of manufacturing facilities integrated as one factory to provide the most flexible supply capacity, allowing us to better 
analyze our production costs and adapt to changes in capacity needs. Our new process technologies are transferred identically from a 
central development fab to each manufacturing facility. After transfer, the network of factories and the development fab collaborate to 
continue driving operational improvements. This enables fast ramp of the operation, fast learning, and quality control. We are expanding 
manufacturing capacity across multiple sites, including Arizona, Ireland, Israel, and Oregon. To accelerate our IDM 2.0 strategy, we 
announced plans to invest $20 billion to build two new fabs in Arizona, which we broke ground on in September, and we recently 
announced plans to invest more than $20 billion in the construction of two new leading-edge fabs in Ohio, while actively searching for 
additional manufacturing locations in Europe. Our plans include utilizing a "smart capital" strategy in which we focus first on aggressively 
building out fab shells, which are the smaller portion of the overall cost of a fab but have the longest lead time, giving us flexibility in how 
and when we bring additional capacity and tools online. We also announced approximately $10.5 billion total investment to equip our Rio 
Rancho, New Mexico and Malaysia sites for advanced packaging manufacturing.

In 2021, oneAPI adoption expanded across the industry. oneAPI enables developers to build cross-architecture applications 

using a single code base across xPUs that take advantage of unique hardware features and lower software development and 

maintenance costs. Developers can choose the best architecture for the problem at hand without rewriting their entire code base, 

We seek to accelerate adoption of oneAPI and Intel software developer tools through diverse ecosystem activities including 

developer trainings, summits, centers of excellence, and access to Intel hardware and software through a developer cloud. The 

Intel® DevCloud for oneAPI hosts global users spanning AI, data science, high-performance computing, and media & graphics 

We believe AI will be ubiquitous, and with our tools and the broad open software ecosystem, we are well-positioned to scale AI. 

We optimize for the most widely used AI frameworks and libraries, including TensorFlow, Pytorch, Scikit-learn, NumPy, XGBoost, 

and Spark, with certain optimizations delivering up to 10 to 100 times performance improvements to support end-to-end AI, as 

We seek to continually improve our BIOS and firmware in support of our client, data center, networking, and graphics products, 

including delivering simplified and cloud-optimized open firmware for data center customers through our Firmware Support 

We own and develop significant IP and related IP rights around the world that support our products, services, R&D, and other activities 

and assets. Our IP portfolio includes patents, copyrights, trade secrets, trademarks, mask works, and other rights. We actively seek to 

We have obtained patents in the US and other countries. Because of the fast pace of innovation and product development, our products 

are often obsolete before the patents related to them expire, and in some cases may be obsolete before the patents are granted. As we 

expand our product offerings into new areas, we also seek to extend our patent development efforts to patent such products. In addition to 

The software that we distribute, including software embedded in our products, is entitled to copyright and other IP protection. To 

distinguish our products from our competitors' products, we have obtained trademarks and trade names for our products, and we maintain 

cooperative advertising programs with customers to promote our brands and to identify products containing genuine Intel components. 

We also protect details about our processes, products, and strategies as trade secrets, keeping confidential the information that we 

Efforts to protect our IP can be difficult, particularly in countries that provide less protection to IP rights and in the absence of harmonized 

international IP standards. Competitors and others may already have IP rights covering similar products. There is no assurance that we 

will be able to obtain IP rights covering our own products, or that we will be able to obtain IP licenses from other companies on favorable 

. While our IP rights are important to 

"Here at Intel, we take pride in attracting some of the world’s best engineers, technologists, and 

innovators. We are advocates for a patent system that eliminates abuse by hedge funds and 

others who exploit weaknesses in the system to drive their profits at the expense of those of us 

who actually invent, create, and produce products that are central to the modern economy."

Inspired by Moore's Law, a law of economics put forth by our co-founder Gordon Moore more than 50 years ago, we continuously work to 

advance the design and manufacturing of semiconductors to help address our customers' greatest challenges. This makes possible the 

innovation of new products with higher performance while balancing power efficiency, cost, and size. We continue to work across our 

supply chain to minimize disruptions, improve productivity, and increase overall capacity and output to meet customer expectations. In 

2021, our factories performed well in a highly dynamic environment, where we adapted to rapid demand shifts and industry component 

Our IDM 2.0 strategy allows us to deliver leadership products through the use of internal and external capacity while leveraging our core 

strengths for growth via providing foundry services to others. IDM 2.0 combines three factors. First, we will continue to build the majority of 

our products in Intel fabs. Second, we expect our use of third party foundry capacity to grow and to include manufacturing for a range of 

modular tiles on advanced process technologies. Third, we intend to build a world-class foundry business with IFS, which will combine 

leading-edge process and packaging technology, committed capacity in the US and Europe, and a world-class IP portfolio for customers, 

Note: The Dalian factory, presented above, was sold subsequent to year-end as part of the first closing of the divestiture of our NAND Memory business. 

See Note 10: Acquisitions and Divestitures.

11

Fundamentals of Our Business Our Capital

12

 
Human Capital

Our human capital strategy is grounded in our belief that our people are fundamental to our success. Delivering on our IDM 2.0 strategy 
and growth ambitions requires attracting, developing, and retaining top talent from across the world. We are committed to creating an 
inclusive workplace where the world’s best engineers and technologists can fulfill their dreams and create technology that improves the 
life of every person on the planet. We invest in our highly skilled workforce of 121,100 people through creating practices, programs and 
benefits that support the evolving world of work and our employees’ needs. 

Fostering a culture of empowerment, inclusion, and accountability is also core to our IDM 2.0 strategy. We are focused on reinvigorating 
our culture to strengthen our execution and accelerate our cadence of innovation. Our values—customer first, fearless innovation, results 
driven, one Intel, inclusion, quality, and integrity—inspire us and are key to delivering on our purpose. This year, we added a new value—
results driven—as we seek to return to our roots of innovation and execution, making data-driven decisions quickly and setting disciplined 
goals that drive business results. All employees are responsible for upholding these values, the Intel Code of Conduct, and Intel's Global 
Human Rights Principles, which form the foundation of our policies and practices and ethical business culture.

Compensation and Benefits

We structure pay, benefits, and services to meet the varying needs of our employees. Our total rewards package includes market-

competitive pay, broad-based stock grants and bonuses, an employee stock purchase plan, healthcare and retirement benefits, paid time 

off and family leave, parent reintegration, fertility assistance, flexible work schedules, sabbaticals, and on-site services. Since 2019, we 

have achieved gender pay equity globally and we continue to maintain race/ethnicity pay equity in the US. We achieve pay equity by 

closing the gap in average pay between employees of different genders or race/ethnicity in the same or similar roles after accounting for 

legitimate business factors that can explain differences, such as location, time at grade level, and tenure. We have also advanced 

transparency in our pay and representation data by publicly releasing our EEO-1 survey pay data since 2019. We believe that our holistic 

approach toward pay equity, representation, and creating an inclusive culture enables us to cultivate a workplace that helps employees 

develop and progress in their careers at all levels. Though flexible work schedules are part of our existing total rewards package, the 

COVID-19 pandemic provided an opportunity to further reimagine how our employees work and collaborate. In designing the future of our 

workplace, we surveyed employees around the globe to inform our “hybrid-first” approach, where the majority of our employees will split 

their time between working remotely and in the office, with no company-wide mandate on the number of days per week employees should 

be on-site or how they should collaborate. Our goal is to enable remote and on-site work where it drives the best output, while ensuring 

our employees have equitable access to systems, resources, and opportunities that allow them to succeed.

"At Intel we tackle hard problems, think boldly, and create technology that improves the life of every 
person on the planet. Our culture unleashes the diverse perspectives, experiences, and potential of 
our employees to drive innovation and business results for Intel and our customers."

Health, Safety, and Wellness

—Christy Pambianchi, Executive Vice President and Chief People Officer

Talent Management
The digitization of everything is driving growth and global demand for semiconductors. Combined with the tightening labor market and 
economic recovery from COVID-19, this has driven a significant increase in competition throughout the industry to attract and retain talent 
– especially technical talent. In 2021, we intensified our efforts to continue to attract and retain talent, including introducing new employee 
referral programs, expanding wellness benefits and time off, heightening our focus on revitalizing our culture, and increasing mentoring in 
our technical community. In 2021, our undesired turnover rate1 was 5.6%, compared to 4.0% in 2020.

We invest significant resources to develop the talent needed to remain at the forefront of innovation and make Intel an employer of choice. 
We offer extensive training programs and provide rotational assignment opportunities. We evolved our performance management system 
to support our culture evolution and increase our focus on disciplined goal setting and results. Through our annual Employee Experience 
Surveys and Manager Development Feedback Surveys, employees can voice their perceptions of the company, their managers, their 
work experience, and learning and development opportunities.

Inclusion
Diversity and inclusion are core to Intel's values and instrumental to driving innovation and positioning us 
for growth. Over the past decade, we have taken actions to integrate diversity and inclusion expectations 
into our culture, performance and management systems, leadership expectations, and annual bonus 
metrics. We are proud of what we have accomplished to advance diversity and inclusion, but we recognize 
we still have work to do, including beyond the walls of Intel. We also recognize the additional challenges 
that COVID-19 has presented to our employees, including women and individuals with disabilities. Our 
RISE strategy and 2030 goals set our global ambitions for the rest of the decade, including doubling the 
number of women in senior leadership; doubling the number of underrepresented minorities in US senior 
leadership; and embedding inclusive leadership practices across our business. Our goals also include 
increasing the percentage of employees who self-identify as having a disability to 10%; and exceeding 
40% representation of women in technical roles, including engineering positions and other roles with 
technical job requirements. To drive accountability, we continue to link a portion of our executive and 
employee compensation to diversity and inclusion metrics. 

We have committed our scale, expertise, and reach through our comprehensive RISE strategy to work 
with customers and other stakeholders to accelerate the adoption of inclusive business practices across 
industries. In 2021, we partnered with other technology companies to launch the Alliance for Global 
Inclusion to create and implement an Inclusion Index with unified goals and metrics. This collective effort 
will allow the industry to more clearly identify actions needed to advance progress on closing persistent 
gaps and advancing more inclusive practices in workplaces, industry, and society. We will also continue to 
collaborate on initiatives that expand the diverse pipeline of talent for our industry, advance social equity, 
make technology fully inclusive, and expand digital readiness for millions of people around the world. 

1  Undesired turnover includes all regular Intel employees who voluntarily left Intel, but do not include Intel contract employees, interns, or employees who 
separated from Intel due to divestiture, retirement, voluntary separation packages, death, job elimination, or redeployment.
2  Senior leadership refers to salary grades 10+ and equivalent grades. While we present male and female, we acknowledge this is not fully encompassing  
of all gender identities.
3  The term underrepresented minority (URM) is used to describe diverse populations, including Black/African American, Hispanic, and Native American 

employees in the US. 

Fundamentals of Our Business Our Capital

13

Fundamentals of Our Business

Our commitment in Intel's Environmental, Health, and Safety Policy is to provide a safe and injury-free workplace. We continually invest in 

programs designed to improve physical, mental, and social well-being. We provide access to a variety of innovative, flexible, and 

convenient health and wellness programs, including on-site health centers. Throughout our response to COVID-19, our priority has 

remained protecting the health and safety of our employees. This includes mental health, as we aim to increase awareness of and support 

for mental and behavioral health. In support of our 2030 goals, we will continue to build our strong safety culture and drive global 

expansion of our corporate wellness program through employee education and engagement activities.

Social and Relationship Capital

We are committed to engaging in corporate responsibility and sustainability initiatives that support our communities and help us develop 

trusted relationships with our stakeholders. Proactive engagement with our stakeholders and investments in social impact initiatives, 

including those aligned with the United Nations Sustainable Development Goals, advance our position as a leading corporate citizen and 

create shared value for Intel, our global supply chain, and our communities.

Economic and social. 

skill, high-paying jobs around the world. Many of these are manufacturing and R&D jobs located in our own domestic and international 

factories. We also benefit economies through our R&D ecosystem spending, sourcing activities, consumer spending by our employees, 

and tax payments. We make sizable capital investments and provide leadership in public-private partnerships to spur economic growth 

and innovation. We engage third-party organizations to conduct analyses of the economic impact of our operations, including a US impact 

study in 2021 that found that for every US Intel job, Intel's economic activity in the US indirectly supports an additional 13 jobs. 

We stand at the forefront of new technologies that are increasingly being used to empower individuals, companies, and governments 

around the world to solve global challenges. We also aim to empower people through education and advance social initiatives to create 

career pathways into the technology industry. This has included our global Intel Digital Readiness Programs, such as AI for Youth and AI 

for Workforce, scaled in partnership with governments and institutions to empower individuals with digital readiness and AI skills. 

Additionally, we have invested in multi-year partnerships with historically Black colleges and universities in the US to increase the number 

of Black/African Americans who pursue electrical engineering, computer engineering, and computer science fields. Our employees and 

retirees share their expertise through volunteer initiatives in the communities where we operate, volunteering more than 1.7

over the past two years. These efforts contribute to the 2030 goal we established last year to volunteer 10 million hours over a decade. 

COVID-19 presented challenges over the last two years for in-person volunteering, but we continued to see an outpouring of support from 

employees in 2021 for virtual volunteering, donations, and innovative technology projects to support our communities. In 2020 we 

announced the Pandemic Response Technology Initiative to combat COVID-19. We expanded the initiative in 2021 and renamed it the 

RISE Technology Initiative to reflect a broader platform for action. It provides an expanded channel to build deeper relationships with our 

customers and partners aligned with our corporate purpose and work to create shared value through our 2030 RISE strategy. Specifically, 

we are funding projects in areas that include using technology to improve health and safety; making technology more inclusive while 

expanding digital readiness; and carbon neutral computing to help address climate change. 

Human rights commitment.

related to our operations, supply chain, and products. We have established an integrated approach to managing human rights across our 

business, including board-level oversight and the involvement of senior-level Management Review Committees. We also meet throughout 

the year with external stakeholders and experts on human rights to continue to inform and evolve our human rights policies and oversight 

processes. While we do not always know nor can we control what products our customers create or the applications end users may 

develop, we do not tolerate our products being used to violate human rights. Where we become aware of a concern that our products are 

being used by a business partner in connection with abuses of human rights, we restrict or cease business with the third party until we 

have high confidence that our products are not being used to violate human rights. 

1 This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022.

 
 
 
Our human capital strategy is grounded in our belief that our people are fundamental to our success. Delivering on our IDM 2.0 strategy 

and growth ambitions requires attracting, developing, and retaining top talent from across the world. We are committed to creating an 

inclusive workplace where the world’s best engineers and technologists can fulfill their dreams and create technology that improves the 

 people through creating practices, programs and 

Fostering a culture of empowerment, inclusion, and accountability is also core to our IDM 2.0 strategy. We are focused on reinvigorating 

our culture to strengthen our execution and accelerate our cadence of innovation. Our values—customer first, fearless innovation, results 

driven, one Intel, inclusion, quality, and integrity—inspire us and are key to delivering on our purpose. This year, we added a new value—

results driven—as we seek to return to our roots of innovation and execution, making data-driven decisions quickly and setting disciplined 

goals that drive business results. All employees are responsible for upholding these values, the Intel Code of Conduct, and Intel's Global 

Compensation and Benefits

We structure pay, benefits, and services to meet the varying needs of our employees. Our total rewards package includes market-
competitive pay, broad-based stock grants and bonuses, an employee stock purchase plan, healthcare and retirement benefits, paid time 
off and family leave, parent reintegration, fertility assistance, flexible work schedules, sabbaticals, and on-site services. Since 2019, we 
have achieved gender pay equity globally and we continue to maintain race/ethnicity pay equity in the US. We achieve pay equity by 
closing the gap in average pay between employees of different genders or race/ethnicity in the same or similar roles after accounting for 
legitimate business factors that can explain differences, such as location, time at grade level, and tenure. We have also advanced 
transparency in our pay and representation data by publicly releasing our EEO-1 survey pay data since 2019. We believe that our holistic 
approach toward pay equity, representation, and creating an inclusive culture enables us to cultivate a workplace that helps employees 
develop and progress in their careers at all levels. Though flexible work schedules are part of our existing total rewards package, the 
COVID-19 pandemic provided an opportunity to further reimagine how our employees work and collaborate. In designing the future of our 
workplace, we surveyed employees around the globe to inform our “hybrid-first” approach, where the majority of our employees will split 
their time between working remotely and in the office, with no company-wide mandate on the number of days per week employees should 
be on-site or how they should collaborate. Our goal is to enable remote and on-site work where it drives the best output, while ensuring 
our employees have equitable access to systems, resources, and opportunities that allow them to succeed.

At Intel we tackle hard problems, think boldly, and create technology that improves the life of every 

person on the planet. Our culture unleashes the diverse perspectives, experiences, and potential of 

Health, Safety, and Wellness

The digitization of everything is driving growth and global demand for semiconductors. Combined with the tightening labor market and 

economic recovery from COVID-19, this has driven a significant increase in competition throughout the industry to attract and retain talent 

– especially technical talent. In 2021, we intensified our efforts to continue to attract and retain talent, including introducing new employee 

referral programs, expanding wellness benefits and time off, heightening our focus on revitalizing our culture, and increasing mentoring in 

We invest significant resources to develop the talent needed to remain at the forefront of innovation and make Intel an employer of choice. 

We offer extensive training programs and provide rotational assignment opportunities. We evolved our performance management system 

to support our culture evolution and increase our focus on disciplined goal setting and results. Through our annual Employee Experience 

Surveys and Manager Development Feedback Surveys, employees can voice their perceptions of the company, their managers, their 

Undesired turnover includes all regular Intel employees who voluntarily left Intel, but do not include Intel contract employees, interns, or employees who 

Senior leadership refers to salary grades 10+ and equivalent grades. While we present male and female, we acknowledge this is not fully encompassing  

The term underrepresented minority (URM) is used to describe diverse populations, including Black/African American, Hispanic, and Native American 

Our commitment in Intel's Environmental, Health, and Safety Policy is to provide a safe and injury-free workplace. We continually invest in 
programs designed to improve physical, mental, and social well-being. We provide access to a variety of innovative, flexible, and 
convenient health and wellness programs, including on-site health centers. Throughout our response to COVID-19, our priority has 
remained protecting the health and safety of our employees. This includes mental health, as we aim to increase awareness of and support 
for mental and behavioral health. In support of our 2030 goals, we will continue to build our strong safety culture and drive global 
expansion of our corporate wellness program through employee education and engagement activities.

Social and Relationship Capital

We are committed to engaging in corporate responsibility and sustainability initiatives that support our communities and help us develop 
trusted relationships with our stakeholders. Proactive engagement with our stakeholders and investments in social impact initiatives, 
including those aligned with the United Nations Sustainable Development Goals, advance our position as a leading corporate citizen and 
create shared value for Intel, our global supply chain, and our communities.

Economic and social. The health of our business and local economies depends on continued investments in innovation. We provide high-
skill, high-paying jobs around the world. Many of these are manufacturing and R&D jobs located in our own domestic and international 
factories. We also benefit economies through our R&D ecosystem spending, sourcing activities, consumer spending by our employees, 
and tax payments. We make sizable capital investments and provide leadership in public-private partnerships to spur economic growth 
and innovation. We engage third-party organizations to conduct analyses of the economic impact of our operations, including a US impact 
study in 2021 that found that for every US Intel job, Intel's economic activity in the US indirectly supports an additional 13 jobs. 

We stand at the forefront of new technologies that are increasingly being used to empower individuals, companies, and governments 
around the world to solve global challenges. We also aim to empower people through education and advance social initiatives to create 
career pathways into the technology industry. This has included our global Intel Digital Readiness Programs, such as AI for Youth and AI 
for Workforce, scaled in partnership with governments and institutions to empower individuals with digital readiness and AI skills. 
Additionally, we have invested in multi-year partnerships with historically Black colleges and universities in the US to increase the number 
of Black/African Americans who pursue electrical engineering, computer engineering, and computer science fields. Our employees and 
retirees share their expertise through volunteer initiatives in the communities where we operate, volunteering more than 1.71 million hours 
over the past two years. These efforts contribute to the 2030 goal we established last year to volunteer 10 million hours over a decade. 
COVID-19 presented challenges over the last two years for in-person volunteering, but we continued to see an outpouring of support from 
employees in 2021 for virtual volunteering, donations, and innovative technology projects to support our communities. In 2020 we 
announced the Pandemic Response Technology Initiative to combat COVID-19. We expanded the initiative in 2021 and renamed it the 
RISE Technology Initiative to reflect a broader platform for action. It provides an expanded channel to build deeper relationships with our 
customers and partners aligned with our corporate purpose and work to create shared value through our 2030 RISE strategy. Specifically, 
we are funding projects in areas that include using technology to improve health and safety; making technology more inclusive while 
expanding digital readiness; and carbon neutral computing to help address climate change. 

Human rights commitment. We are committed to maintaining and improving processes to avoid complicity in human rights violations 
related to our operations, supply chain, and products. We have established an integrated approach to managing human rights across our 
business, including board-level oversight and the involvement of senior-level Management Review Committees. We also meet throughout 
the year with external stakeholders and experts on human rights to continue to inform and evolve our human rights policies and oversight 
processes. While we do not always know nor can we control what products our customers create or the applications end users may 
develop, we do not tolerate our products being used to violate human rights. Where we become aware of a concern that our products are 
being used by a business partner in connection with abuses of human rights, we restrict or cease business with the third party until we 
have high confidence that our products are not being used to violate human rights. 

1 This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022.

13

Fundamentals of Our Business Our Capital

14

 
 
Water is essential to the semiconductor manufacturing process. We use ultrapure water to remove impurities from our silicon wafers, and 

we use fresh and reclaimed water to run our manufacturing facility systems. Through our 2030 goals, we have committed to conserve an 

additional 60 billion gallons in this decade. As part of this commitment, we plan to achieve net positive water use globally. We have 

conserved 15.4 billion gallons

our executive and employee performance bonus to our targets to conserve 7.5 billion gallons of water in our operations and complete 

projects to restore more than 1.5 billion gallons to local watersheds. 

Circular Economy and Waste Management

We have long been committed to waste management, recycling, and circular economy strategies

re-use of waste streams.

strategies for 60% of our manufacturing waste streams in partnership with our suppliers. This can include reuse of waste streams directly 

in our own operations or enabling reuse of our waste streams by other industries. 

projected operational growth and new waste streams, suppliers, and locations that will require new circular economy strategies. We 

continue to focus on opportunities to upcycle waste by working further on waste segregation practices and collaborating with our suppliers 

to evaluate new technologies for waste recovery.

Supply Chain Responsibility

Water Stewardship

We actively manage our supply chain to help reduce risk, improve product quality, achieve environmental and social goals, and improve 
overall performance and value creation for Intel, our customers, and our suppliers. To drive responsible and sustainable practices 
throughout our supply chain, we have robust programs to educate and engage suppliers that support our global manufacturing operations. 
We actively collaborate with other companies and lead industry initiatives on key issues such as improving transparency around climate 
and water impacts in the global electronics supply chain and, as part of our RISE strategy, we are advancing collaboration across our 
industry on responsible minerals sourcing. Through these efforts we help set electronics industry-wide standards, develop audit 
processes, and conduct training.

Over the past decade, we have directly engaged with our suppliers to verify compliance and build capacity to address risks of forced and 
bonded labor and other human rights issues. We perform supplier audits and identify critical direct suppliers to engage through capability-
building programs, which help suppliers build sustainability acumen and verify compliance with the Responsible Business Alliance and our 
Code of Conduct. We also engage with indirect suppliers through our programs on forced and bonded labor, responsible minerals, and 
supplier diversity. To achieve our 2030 RISE goals, we will significantly expand the number of suppliers covered by our engagement 
activities.

Our commitment to diversity and inclusion also extends to our suppliers. We believe a diverse supply chain supports greater innovation 
and value for our business. We have set additional spending targets with women-owned suppliers outside the US and with minority-
owned suppliers globally to accelerate progress toward our goal to increase global annual spending with diverse suppliers by 100% to 
reach $2 billion in annual spending by 2030. Continuing in 2022, we will only retain or use outside law firms in the US that are above 
average on diversity for their equity partners. We are applying a similar rule to firms used by our tax department, including non-legal firms.

Natural Capital

Driving to the lowest possible environmental footprint as we grow helps us create efficiencies, lower costs, and respond to the needs of 
our stakeholders. We invest in conservation projects and set company-wide environmental targets to drive reductions in greenhouse gas 
emissions, energy use, water use, and waste generation. We build energy efficiency into our products to help our customers lower their 
own emissions and energy costs, and we collaborate with policymakers and other stakeholders to use technology to address 
environmental challenges. Through our 2030 goals we will continue to drive to higher levels of operational efficiency, including a goal of a 
further 10% reduction in our carbon emissions on an absolute basis even as we continue to grow. In 2021, we continued to take action on 
emissions reduction strategies focused on emissions abatement, additional investments in renewable electricity, process and equipment 
optimization, and energy conservation. Our 2030 strategy and goals also focus on improving product energy efficiency and increasing our 
"handprint"—the ways in which Intel technologies can help others reduce their footprints, including Internet of Things solutions that enable 
intelligence in machines, buildings, supply chains, and factories, and make electrical grids smarter, safer, and more efficient. 

Climate and Energy

We focus on reducing our own climate impact, and over the past two decades have reduced our direct emissions and indirect emissions 
associated with energy consumption. Through our 2030 goals we have committed to conserve an additional 4 billion kWh of energy over 
10 years. We have conserved more than 310 million kWh1 of energy since 2020. We also continue to link a portion of our executive and 
employee performance bonus to our corporate sustainability metrics. In 2021, this included our target to save 125 million kWh of energy 
during the year. We also invest in green power and on-site alternative energy projects in support of our 2030 goal to achieve 100% 
renewable energy use across our global manufacturing operations. We have reached 81%1 renewable energy globally. We are committed 
to transparency around our carbon footprint and climate risk and use the framework developed by the TCFD to inform our disclosure on 
climate governance, strategy, risk management, and metrics and targets. For governance and strategy, we follow an integrated approach 
to address climate change, with multiple teams responsible for managing climate-related activities, initiatives, and policies. Strategies and 
progress toward goals are reviewed with senior executives and the Intel Board of Directors' Corporate Governance and Nominating 
Committee. We describe our overall risk management processes in our Proxy Statement, and describe our climate-related risks and 
opportunities in our annual Corporate Responsibility Report, the Intel Climate Change Policy, and "Risk Factors" within this Form 10-K. In 
addition to what is included within this Form 10-K, information about and progress toward our 2030 goals is included in our Corporate 
Responsibility Report. Our Corporate Responsibility Report also includes a mapping of our disclosure to the TCFD, the Sustainability 
Accounting Standards Board framework, and our CDP Climate Change Survey, all of which are available on our website.2 

1  This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022.
2  The contents of our website and our Corporate Responsibility Report, Climate Change Policy, and CDP Climate Change Survey are referenced for 

general information only and are not incorporated by reference in this Form 10-K.

1  This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022.

2 Intel defines zero waste as less than 1%.

Fundamentals of Our Business Our Capital

15

Fundamentals of Our Business

 
 
We actively manage our supply chain to help reduce risk, improve product quality, achieve environmental and social goals, and improve 

overall performance and value creation for Intel, our customers, and our suppliers. To drive responsible and sustainable practices 

throughout our supply chain, we have robust programs to educate and engage suppliers that support our global manufacturing operations. 

We actively collaborate with other companies and lead industry initiatives on key issues such as improving transparency around climate 

and water impacts in the global electronics supply chain and, as part of our RISE strategy, we are advancing collaboration across our 

industry on responsible minerals sourcing. Through these efforts we help set electronics industry-wide standards, develop audit 

Water is essential to the semiconductor manufacturing process. We use ultrapure water to remove impurities from our silicon wafers, and 
we use fresh and reclaimed water to run our manufacturing facility systems. Through our 2030 goals, we have committed to conserve an 
additional 60 billion gallons in this decade. As part of this commitment, we plan to achieve net positive water use globally. We have 
conserved 15.4 billion gallons1 of water and enabled restoration of 3.5 billion gallons1 of water since 2020. In 2021, we linked a portion of 
our executive and employee performance bonus to our targets to conserve 7.5 billion gallons of water in our operations and complete 
projects to restore more than 1.5 billion gallons to local watersheds. 

Water Stewardship

Circular Economy and Waste Management

We have long been committed to waste management, recycling, and circular economy strategies that enable the recovery and productive 
re-use of waste streams. Our 2030 goals include a target of zero total waste2 to landfill, as well as implementation of circular economy 
strategies for 60% of our manufacturing waste streams in partnership with our suppliers. This can include reuse of waste streams directly 
in our own operations or enabling reuse of our waste streams by other industries. Our 2030 goal of 60% will be challenging, given our 
projected operational growth and new waste streams, suppliers, and locations that will require new circular economy strategies. We 
continue to focus on opportunities to upcycle waste by working further on waste segregation practices and collaborating with our suppliers 
to evaluate new technologies for waste recovery.

Over the past decade, we have directly engaged with our suppliers to verify compliance and build capacity to address risks of forced and 

bonded labor and other human rights issues. We perform supplier audits and identify critical direct suppliers to engage through capability-

building programs, which help suppliers build sustainability acumen and verify compliance with the Responsible Business Alliance and our 

Code of Conduct. We also engage with indirect suppliers through our programs on forced and bonded labor, responsible minerals, and 

supplier diversity. To achieve our 2030 RISE goals, we will significantly expand the number of suppliers covered by our engagement 

Our commitment to diversity and inclusion also extends to our suppliers. We believe a diverse supply chain supports greater innovation 

and value for our business. We have set additional spending targets with women-owned suppliers outside the US and with minority-

owned suppliers globally to accelerate progress toward our goal to increase global annual spending with diverse suppliers by 100% to 

reach $2 billion in annual spending by 2030. Continuing in 2022, we will only retain or use outside law firms in the US that are above 

average on diversity for their equity partners. We are applying a similar rule to firms used by our tax department, including non-legal firms.

Driving to the lowest possible environmental footprint as we grow helps us create efficiencies, lower costs, and respond to the needs of 

our stakeholders. We invest in conservation projects and set company-wide environmental targets to drive reductions in greenhouse gas 

emissions, energy use, water use, and waste generation. We build energy efficiency into our products to help our customers lower their 

environmental challenges. Through our 2030 goals we will continue to drive to higher levels of operational efficiency, including a goal of a 

further 10% reduction in our carbon emissions on an absolute basis even as we continue to grow. In 2021, we continued to take action on 

emissions reduction strategies focused on emissions abatement, additional investments in renewable electricity, process and equipment 

optimization, and energy conservation. Our 2030 strategy and goals also focus on improving product energy efficiency and increasing our 

"handprint"—the ways in which Intel technologies can help others reduce their footprints, including Internet of Things solutions that enable 

We focus on reducing our own climate impact, and over the past two decades have reduced our direct emissions and indirect emissions 

associated with energy consumption. Through our 2030 goals we have committed to conserve an additional 4 billion kWh of energy over 

employee performance bonus to our corporate sustainability metrics. In 2021, this included our target to save 125 million kWh of energy 

during the year. We also invest in green power and on-site alternative energy projects in support of our 2030 goal to achieve 100% 

 of energy since 2020. We also continue to link a portion of our executive and 

to transparency around our carbon footprint and climate risk and use the framework developed by the TCFD to inform our disclosure on 

climate governance, strategy, risk management, and metrics and targets. For governance and strategy, we follow an integrated approach 

to address climate change, with multiple teams responsible for managing climate-related activities, initiatives, and policies. Strategies and 

progress toward goals are reviewed with senior executives and the Intel Board of Directors' Corporate Governance and Nominating 

Committee. We describe our overall risk management processes in our Proxy Statement, and describe our climate-related risks and 

 renewable energy globally. We are committed 

" within this Form 10-K. In 

addition to what is included within this Form 10-K, information about and progress toward our 2030 goals is included in our Corporate 

Responsibility Report. Our Corporate Responsibility Report also includes a mapping of our disclosure to the TCFD, the Sustainability 

The contents of our website and our Corporate Responsibility Report, Climate Change Policy, and CDP Climate Change Survey are referenced for 

1  This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022.
2 Intel defines zero waste as less than 1%.

15

Fundamentals of Our Business Our Capital

16

 
Value We Create

Management's Discussion and Analysis

Each of our six forms of capital plays a critical role in our long-term value creation. We consider numerous indicators in determining the 
success of our capital deployment in creating value. Highlights of value created are as follows:

Our Products

Our product offerings provide end-to-end solutions, scaling from edge computing to 5G networks, the cloud, and the emerging fields of AI 

and autonomous driving. Products, such as our gaming CPUs, may be sold directly to end consumers, or they may be further integrated 

by our customers into end products such as notebooks and storage servers. Combining some of these products—for example, integrating 

FPGAs and memory with Intel Xeon processors in a data center solution—enables incremental synergistic value and performance. We 

launched new products in 2021, such as the 12th Gen Intel Core

Intel Xeon Scalable processors (Ice Lake).

processes data and controls other devices in a system. The primary CPU products in CCG are our Intel Core and Intel Atom

which include Intel Core processors designed specifically for notebook and desktop applications. We introduced our 12th Gen Intel Core 

desktop processors and additional 11th Gen Intel Core processors (Tiger Lake) this year. The primary CPU product in DCG is our Intel 

Xeon processor, which includes solutions for data center compute, networking, and the intelligent edge. Our latest Xeon processor, the 

3rd Gen Xeon, launched this year. We sell Xeon, Intel Core, and Intel Atom processor products as part of our IOTG offerings.

Platform Products: 

Adjacent Products:

solutions to meet customer needs. These products are used in solutions sold through each of our businesses and include the following:

DCG, FPGAs for PSG, VPUs for IOTG, and Mobileye EyeQ SoCs

▪

▪

▪

▪

Accelerators

Boards and Systems

Connectivity Products

Graphics

▪ Memory and Storage Products

1  This is a preliminary estimate. The final number will be reported in our 2021-22 Corporate Responsibility Report, to be issued later in 2022. 
2  See "Non-GAAP Financial Measures" within MD&A.
Note: The Dalian factory was sold subsequent to year-end as part of the first closing of the divestiture of our NAND Memory business. See Note 10 :  

Acquisitions and Divestitures.

Fundamentals of Our Business Our Capital

17

MD&A

 
Each of our six forms of capital plays a critical role in our long-term value creation. We consider numerous indicators in determining the 

Management's Discussion and Analysis

Our Products

Our product offerings provide end-to-end solutions, scaling from edge computing to 5G networks, the cloud, and the emerging fields of AI 
and autonomous driving. Products, such as our gaming CPUs, may be sold directly to end consumers, or they may be further integrated 
by our customers into end products such as notebooks and storage servers. Combining some of these products—for example, integrating 
FPGAs and memory with Intel Xeon processors in a data center solution—enables incremental synergistic value and performance. We 
launched new products in 2021, such as the 12th Gen Intel Core processors (Alder Lake), the first on the Intel 7 process, and 3rd Gen 
Intel Xeon Scalable processors (Ice Lake).

Platform Products: Our platform products can be a CPU and chipset, an SoC, or a multichip package based on Intel® architecture that 
processes data and controls other devices in a system. The primary CPU products in CCG are our Intel Core and Intel Atom® processors, 
which include Intel Core processors designed specifically for notebook and desktop applications. We introduced our 12th Gen Intel Core 
desktop processors and additional 11th Gen Intel Core processors (Tiger Lake) this year. The primary CPU product in DCG is our Intel 
Xeon processor, which includes solutions for data center compute, networking, and the intelligent edge. Our latest Xeon processor, the 
3rd Gen Xeon, launched this year. We sell Xeon, Intel Core, and Intel Atom processor products as part of our IOTG offerings.

Adjacent Products: Our non-platform, or adjacent, products can be combined with platform products to form comprehensive platform 
solutions to meet customer needs. These products are used in solutions sold through each of our businesses and include the following:

▪

▪

▪

Accelerators—Silicon products that can operate alone or accompany our processors in a system, such as Habana Gaudi for 
DCG, FPGAs for PSG, VPUs for IOTG, and Mobileye EyeQ SoCs
Boards and Systems—Server boards and small form factor systems such as Intel® NUCs for CCG
Connectivity Products—Ethernet controllers and silicon photonics for DCG; and cellular modems, Wi-Fi, and Bluetooth® for CCG
Graphics— Discrete graphics products for CCG and DCG

▪
▪ Memory and Storage Products—NAND SSD products for NSG and Intel® OptaneTM memory products sold through DCG

“At Intel our customer first mindset means that we put customer needs at the center of our business. 
We are committed to our customers' success by delivering a portfolio of high quality products, 
performance, and experiences to solve the world’s most challenging problems." 

—Michelle Johnston Holthaus, Executive Vice President and General Manager of the Sales, Marketing, 
and Communications Group

Note 10 :  

17

MD&A

18

How We Organize Our Business

% Intel Revenue Key Markets and Products
Includes platforms designed 
for end-user form factors, 
focusing on higher growth 
segments of 2-in-1, thin-and-
light, commercial and gaming, 
and growing adjacencies such 
as connectivity and graphics.

Includes workload-optimized 
platforms and related products 
designed for cloud service 
providers, enterprise and 
government, and 
communications service 
providers market segments. 

Includes high-performance 
compute solutions for targeted 
verticals and embedded 
applications in market 
segments such as retail, 
industrial, and healthcare.

Includes comprehensive 
solutions required for 
autonomous driving, including 
compute platforms, computer 
vision, and machine learning-
based sensing, mapping and 
localization, driving policy, and 
active sensors in development, 
utilized for both Robotaxi and 
consumer level autonomy.

Includes memory and storage 
products like Intel 3D NAND 
technology, primarily used in 
SSDs.

Includes programmable 
semiconductors, primarily 
FPGAs and structured ASICs, 
and related products for 
communications, cloud and 
enterprise, and embedded 
market segments.

MD&A

19

MD&A

Overview

We are committed to advancing PC experiences by delivering an annual cadence of leadership products 

and deepening our relationships with industry partners to co-engineer and deliver leading platform 

innovation. We engage in an intentional effort focused on long-term operating system, 

architecture, hardware, and application integration that enables industry-leading PC experiences. 

embrace these opportunities by investing more heavily in the PC, ramping its capabilities even more 

aggressively, and designing the PC experience even more deliberately. By doing this, we will continue to 

fuel innovation across Intel, providing a growing source of IP, scale, and cash flow.

Key Developments

■ We delivered our sixth consecutive year of revenue growth, to 

to be more essential than ever.

■ We launched our 11th Gen Intel Core H-series processors and introduced our 12th Gen Intel 

Core processor family, our all-new performance hybrid architecture built on Intel 7 process 

technology.

■ We launched the world's first Wi-Fi 6E certified product for PCs, enabling Intel Wi-Fi based PCs 

to access as much as 1200 MHz of new Wi-Fi spectrum – the first new spectrum for Wi-Fi in over 

a decade. In May, we launched the Intel 5G Solution 5000 modem for PCs, delivering speeds 

that significantly exceed those of our Intel Gigabit LTE. We also introduced our new high-

performance discrete graphics products: Intel

shipping to OEMs in Q1 2022.

■ We worked with industry partners to co-engineer and deliver more than 100 verified Intel

designs and grew the commercial market segment with the launch of our 11th Gen Intel Core 

vPro platform. 

5-Year Trends

$34.0

2017

       
Overview
We are committed to advancing PC experiences by delivering an annual cadence of leadership products 
and deepening our relationships with industry partners to co-engineer and deliver leading platform 
innovation. We engage in an intentional effort focused on long-term operating system, system 
architecture, hardware, and application integration that enables industry-leading PC experiences. We will 
embrace these opportunities by investing more heavily in the PC, ramping its capabilities even more 
aggressively, and designing the PC experience even more deliberately. By doing this, we will continue to 
fuel innovation across Intel, providing a growing source of IP, scale, and cash flow.
Key Developments

■ We delivered our sixth consecutive year of revenue growth, to $40.5 billion, as the PC continues 

to be more essential than ever.

■ We launched our 11th Gen Intel Core H-series processors and introduced our 12th Gen Intel 

Core processor family, our all-new performance hybrid architecture built on Intel 7 process 
technology.

■ We launched the world's first Wi-Fi 6E certified product for PCs, enabling Intel Wi-Fi based PCs 

to access as much as 1200 MHz of new Wi-Fi spectrum – the first new spectrum for Wi-Fi in over 
a decade. In May, we launched the Intel 5G Solution 5000 modem for PCs, delivering speeds 
that significantly exceed those of our Intel Gigabit LTE. We also introduced our new high-
performance discrete graphics products: Intel® Arc™, with our first generation (Alchemist) GPU 
shipping to OEMs in Q1 2022.

■ We worked with industry partners to co-engineer and deliver more than 100 verified Intel® Evo™ 
designs and grew the commercial market segment with the launch of our 11th Gen Intel Core 
vPro platform. 

"The PC is one of the most 
essential tools of modern 
times. This makes Intel's 
role more critical than ever. 
You can count on us to 
boldly innovate and deliver 
industry-leading PC 
experiences that connect 
people globally to what 
matters most to them." 

—Jim Johnson, Interim 
General Manager, CCG

5-Year Trends

$34.0

$37.0

$37.1

$40.1

$40.5

$12.9

$14.2

$15.2

$15.1

$14.7

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

■ Revenue $B

■ Op Income $B

19

MD&A

20

       
      
Revenue Summary

commercial recovery from COVID-19 lows.

by commercial recovery from COVID-19.

▪ Increased unit sales driven by continued strength in notebook demand and recovery in desktop demand driven by consumer and 

▪ Lower notebook ASPs due to strength in the consumer and education market segments, partially offset by higher desktop ASPs driven 

▪ Decrease in adjacent revenue primarily driven by the continued ramp down from the exit of our 5G smartphone modem and Home 

Gateway Platform businesses, partially offset by strength in wireless and connectivity. 

Market and Business Overview

Market Trends and Strategy

Financial Performance

Since the onset of the COVID-19 pandemic, time spent on PCs has increased dramatically across all major usage categories—as did PCs 
per household—reinforcing the importance of bringing innovative platforms and form factors to market that unlock real-world experiences. 
This trend is expected to remain in a post-pandemic world, driving a year over year growth in revenue TAM1. The ecosystem is shipping 
over one million PC units a day and we believe there is sustained strength in PC demand. In addition, the COVID-19 pandemic has driven 
significant behavior changes that have positioned the PC as an essential tool in people's lives. 

PC density, or PCs per household, is increasing as COVID-19 has irreversibly changed the way we focus, create, connect, and care for 
each other. In addition, we continue to see an increase in PCs per student. There is a significant opportunity in the commercial segment, 
driven by refresh of older Windows devices. Currently, there are approximately 140 million devices that are more than four years old2. The 
experience and capabilities delivered on new PCs are dramatically better today, reinforcing the opportunity to drive a refresh cycle among 
enterprise customers. 

Products and Competition

We operate in a particularly competitive market. In processors, we compete with AMD and vendors who design applications processors 
based on ARM* architecture, such as Qualcomm Inc. (Qualcomm), and, increasingly, Apple Inc., (Apple) with its most recent launch of M1 
Max and M1 Pro. We expect this competitive environment to intensify in 2022.

Our role as a technology leader is more important than ever, and our commitment to creating an open ecosystem is critical to delivering 
on our ambition. That is why we embrace and collaborate with a vibrant ecosystem of OEM partners to identify innovation vectors. The 
breadth of a robust ecosystem like Windows/x86 is an incredibly powerful combination, bringing together hundreds of companies and 
creative and innovative advancements that are not possible for one company alone to deliver.

We launched our 12th Gen Intel Core desktop processors based on our first performance hybrid architecture, which combines two all-new 
core microarchitectures instead of one and can scale across PC segments and out to the edge. The 12th Gen processor family is set to 
deliver superior computing performance for every PC segment and out to the edge. In total, we expect to deliver more than 60 processors 
and 500 desktop and mobile designs from partners across major multinational corporations and leading manufacturers.

Unique to Intel, we innovate beyond the CPU to deliver premium PC experiences with Intel Evo and Intel vPro platforms. More than 100 
advanced laptop designs have been built on the Intel Evo platform, which signals they are tested and verified in Intel labs. This ensures 
they deliver key experience indicators defined by real-world usage models and innovation across areas like responsiveness, battery life, 
instant wake, and connectivity. Intel vPro is designed for enterprise needs and delivers increased productivity improvements, connectivity, 
security features, and remote manageability.

We are leading Intel as we embark on our new IDM 2.0 strategy to develop more competitive products and more capabilities for 
customers. As a result, we are designing our product roadmap to drive product leadership grounded in a philosophy of openness and 
choice. We deliver value to our customers by leveraging our engineering capabilities and working with our partners across an open, 
innovative ecosystem to deliver technology that drives every major vector of the computing experience, including performance, battery 
life, connectivity, graphics, and form factors to create the most advanced PC platforms. 

We continue to face industry-wide supply constraints, which are expected to persist into 2022. Given our unique position in the industry, 
we have taken major actions along the supply chain to eliminate bottlenecks—increasing substrate capacity, removing third-party 
component bottlenecks, increasing our own internal capacity, and obtaining more external capacity. We are also working with the industry 
to provide TAM forecasts that help our suppliers better deliver on industry needs.

$ 

(In Millions)

Desktop platform volume

Desktop platform ASP

Notebook platform volume

Notebook platform ASP

Adjacent products and other

Total change in revenue

Operating Income Summary

Operating income 

(In Millions)

$ 

14,672 

1  Source: Intel calculated 2022 TAM derived from industry analyst reports.
2  Source: Intel calculated the volume of devices over four years old from industry analyst reports and internal data.

MD&A

$ 

15,202 

21

MD&A

$37.1

$4.5

$32.7

2019

(850) 

(565) 

(240) 

(185) 

(140) 

710 

655 

165 

15,129 

(3,025) 

(125) 

1,715 

640 

420 

300 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Since the onset of the COVID-19 pandemic, time spent on PCs has increased dramatically across all major usage categories—as did PCs 

per household—reinforcing the importance of bringing innovative platforms and form factors to market that unlock real-world experiences. 

over one million PC units a day and we believe there is sustained strength in PC demand. In addition, the COVID-19 pandemic has driven 

The ecosystem is shipping 

PC density, or PCs per household, is increasing as COVID-19 has irreversibly changed the way we focus, create, connect, and care for 

each other. In addition, we continue to see an increase in PCs per student. There is a significant opportunity in the commercial segment, 

driven by refresh of older Windows devices. Currently, there are approximately 140 million devices that are more than four years old2. The 

experience and capabilities delivered on new PCs are dramatically better today, reinforcing the opportunity to drive a refresh cycle among 

$37.1

$4.5

$32.7

$40.1
$4.4

$35.6

$40.5
$3.1

$37.4

$15.2

$15.1

$14.7

Financial Performance

CCG Revenue $B

CCG Operating Income $B

We operate in a particularly competitive market. In processors, we compete with AMD and vendors who design applications processors 

based on ARM* architecture, such as Qualcomm Inc. (Qualcomm), and, increasingly, Apple Inc., (Apple) with its most recent launch of M1 

Our role as a technology leader is more important than ever, and our commitment to creating an open ecosystem is critical to delivering 

on our ambition. That is why we embrace and collaborate with a vibrant ecosystem of OEM partners to identify innovation vectors. The 

breadth of a robust ecosystem like Windows/x86 is an incredibly powerful combination, bringing together hundreds of companies and 

We launched our 12th Gen Intel Core desktop processors based on our first performance hybrid architecture, which combines two all-new 

core microarchitectures instead of one and can scale across PC segments and out to the edge. The 12th Gen processor family is set to 

deliver superior computing performance for every PC segment and out to the edge. In total, we expect to deliver more than 60 processors 

Unique to Intel, we innovate beyond the CPU to deliver premium PC experiences with Intel Evo and Intel vPro platforms. More than 100 

advanced laptop designs have been built on the Intel Evo platform, which signals they are tested and verified in Intel labs. This ensures 

they deliver key experience indicators defined by real-world usage models and innovation across areas like responsiveness, battery life, 

instant wake, and connectivity. Intel vPro is designed for enterprise needs and delivers increased productivity improvements, connectivity, 

We are leading Intel as we embark on our new IDM 2.0 strategy to develop more competitive products and more capabilities for 

customers. As a result, we are designing our product roadmap to drive product leadership grounded in a philosophy of openness and 

choice. We deliver value to our customers by leveraging our engineering capabilities and working with our partners across an open, 

innovative ecosystem to deliver technology that drives every major vector of the computing experience, including performance, battery 

2019

2020

2021

2019

2020

2021

■ Platform

■ Adjacent

Revenue Summary

▪ Increased unit sales driven by continued strength in notebook demand and recovery in desktop demand driven by consumer and 

commercial recovery from COVID-19 lows.

▪ Lower notebook ASPs due to strength in the consumer and education market segments, partially offset by higher desktop ASPs driven 

by commercial recovery from COVID-19.

▪ Decrease in adjacent revenue primarily driven by the continued ramp down from the exit of our 5G smartphone modem and Home 

Gateway Platform businesses, partially offset by strength in wireless and connectivity. 

(In Millions)

Desktop platform volume
Desktop platform ASP
Notebook platform volume
Notebook platform ASP
Adjacent products and other
Total change in revenue

Operating Income Summary

2021 vs. 2020

2020 vs. 2019

%

$ Impact

%

$ Impact

up 8%
up 3%
up 8%
down (6)%

$ 

$ 

851 
292 
2,102 
(1,530) 
(1,261) 
454 

down (11)% $ 

up 2%
up 28%
down (6)%

$ 

(1,316) 
186 
5,770 
(1,646) 
(83) 
2,911 

Operating income decreased 3% year over year, and operating margin was 36% in 2021. 

(In Millions)
$ 

14,672  2021 Operating Income

(850)  Higher operating expenses driven by increased investment in leadership products  
(565)  Higher period charges primarily associated with the ramp up of Intel 4
(240)  Higher period charges primarily associated with the ramp down of 14nm
(185)  Lower adjacent product margin primarily driven by the exit of our 5G smartphone modem business

(140) 

Higher period charges driven by less sell-through of reserves on non-qualified platform products in 2021 as compared 
to in 2020, and other reserves taken in 2021

710  Higher gross margin from platform revenue
655  Lower platform unit cost primarily due to cost improvements in 10nm SuperFin
165  Lower period charges primarily driven by a decrease in engineering samples

(7)  Other

We continue to face industry-wide supply constraints, which are expected to persist into 2022. Given our unique position in the industry, 

we have taken major actions along the supply chain to eliminate bottlenecks—increasing substrate capacity, removing third-party 

component bottlenecks, increasing our own internal capacity, and obtaining more external capacity. We are also working with the industry 

$ 

15,129  2020 Operating Income
(3,025)  Higher platform unit cost primarily from increased mix of 10nm products

(125)  Primarily driven by higher logistic expenses due to COVID-19

1,715  Higher gross margin from platform revenue

640  Lower operating expenses

420 

Lower period charges due to lower start-up cost associated with 10nm products and sell-through of previously reserved 
platform products related to our 10nm process technology

300  Higher CCG adjacent product margin

2  Other

$ 

15,202  2019 Operating Income

21

MD&A

22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Data is a significant force in society and is being generated at an unprecedented pace. In the context of the data center, four superpowers 

Market and Business Overview

Market Trends and Strategy

are shaping the future of technology: 

Ubiquitous Compute:

Pervasive Connectivity:

Cloud to Edge:

▪

▪

▪

▪

data as everything consumers interact with involves computer technology. 

connecting billions of devices and putting more powerful compute resources in the hands of consumers.

scale, is now the core of the data infrastructure. The growth and prevalence of the cloud is leading to the democratization of 

high-performance computing, which opens new frontiers of knowledge in areas like precision medicine and numerical weather 

prediction. Rapid adoption of 5G is enabling increased bandwidth and fueling continued transformation of the network. The 

evolution of the networks is creating unlimited scale and giving rise to the intelligent edge.

AI: AI is fundamental and becoming pervasive in all applications, creating intelligence everywhere, and enabling powerful new 

uses of compute across all fields.

Data centers—whether servicing compute, networking, or edge workloads—will go through a massive architectural transformation, 

leveraging heterogeneous computing with different types of processor architectures optimized for different workloads. With unmatched 

scale, hardware and software portfolio breadth, and ecosystem support, we are uniquely positioned to unlock the value of data for people, 

business, and society on a global scale. 

The on-premise enterprise market segment revenue grew as customers demonstrated strong recovery from COVID-19. Cloud market 

segment revenue decreased in 2021 driven by an increasingly competitive environment, and industr

communications service provider segment continued to see strong growth with the build-out of 5G, and we collaborated with operators on 

the next wave of virtualization in the radio access network and build-out of the intelligent edge.

Overview
DCG develops workload-optimized platforms for compute, storage, and network functions. With 
unmatched scale, hardware and software portfolio breadth, and expansive partner ecosystem support, 
we are uniquely positioned to enable the world to unleash the potential of data, unlocking value for 
people, business, and society on a global scale. Market segments include cloud service providers, 
enterprise and government, and communications service providers. We serve the global appetite for 
cloud computing and enable digital transformation from edge to cloud. 

Key Developments

■ We introduced multiple products and continued to invest in our leadership roadmap throughout 
the year. Amid effects of industry component supply constraints and a competitive environment, 
revenue decreased 1% year over year.

■ We launched the 3rd Gen Intel Xeon Scalable processors (Ice Lake), the only x86 data center 
processors with built-in AI acceleration. We also announced the IPU, a platform that enables 
superior security capabilities and enables our cloud customers to handle infrastructure tasks 
more efficiently.

"Intel has the breadth and 
depth of leadership products 
to solve our customers' most 
complex problems in a world 
where the digitization of 
everything is accelerating the 
need for high-performance 
computing."

■ We expanded our broad, data-centric portfolio for 5G network infrastructure including the 3rd 
Gen Intel Xeon Scalable processor "N-SKUs", a 5G network-optimized Ethernet NIC, and the 
Intel Network Platform. We also began sampling the next-generation Intel Xeon D processors, 
which are built for the edge.

—Sandra Rivera, Executive 
Vice President and General 
Manager, Data Center and AI 
Group

5-year Trends

$19.1

$23.0

$23.5

$26.1

$25.8

$11.5

$10.2

$10.6

$8.4

$7.0

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

■ Revenue $B

■ Op Income $B

Products and Competition

We offer customers a broad portfolio of 

silicon and software designed to provide 

workload-optimized performance across 

computing, storage, and networking. As a 

leading provider of data center platforms, 

we have competitors such as Advanced 

Micro Devices, Inc. (AMD), providers of 

GPU products such as NVIDIA 

Corporation (NVIDIA), companies using 

ARM architecture, new entrants 

developing products customized for 

specific data center workloads, and 

internally developed solutions by cloud 

service providers and others. We expect 

the competitive environment to continue in 

2022.

edge. 

MD&A

23

MD&A

In 2021, we launched our 3rd Gen Intel Xeon Scalable processors (Ice Lake), and we shipped 1 million units faster than the previous 

Xeon generations. All of our OEM partners are currently shipping 3rd Gen Intel Xeon enabled systems and all major cloud service 

provider customers have deployed services using 3rd Gen Intel Xeon processors. In 2021, we also introduced the Intel

Memory 200 Series and Optane SSD P5800X and began sampling the next generation of Intel Xeon D processors, which are built for the 

In 2021, we also announced the IPU, a platform that enables superior security capabilities and lets our cloud customers handle 

infrastructure tasks more efficiently, enabling the Intel Xeon CPU to focus on the tenant software. Intel announced two types of IPUs, an 

FPGA-based IPU (Oak Springs Canyon) and an ASIC-based IPU co-developed with Google (Mount Evans).

      
        
               
Market and Business Overview

Market Trends and Strategy

Data is a significant force in society and is being generated at an unprecedented pace. In the context of the data center, four superpowers 
are shaping the future of technology: 

▪

▪

▪

▪

Ubiquitous Compute: Businesses are demanding compute at the edge to drive insights more quickly from growing amounts of 
data as everything consumers interact with involves computer technology. 

Pervasive Connectivity: Increased connectivity is enabling a universal reach with more data movement than ever before, 
connecting billions of devices and putting more powerful compute resources in the hands of consumers.

Cloud to Edge: The proliferation of cloud architectures, which started inside the data center to deliver new levels of efficiency and 
scale, is now the core of the data infrastructure. The growth and prevalence of the cloud is leading to the democratization of 
high-performance computing, which opens new frontiers of knowledge in areas like precision medicine and numerical weather 
prediction. Rapid adoption of 5G is enabling increased bandwidth and fueling continued transformation of the network. The 
evolution of the networks is creating unlimited scale and giving rise to the intelligent edge.

AI: AI is fundamental and becoming pervasive in all applications, creating intelligence everywhere, and enabling powerful new 
uses of compute across all fields.

Data centers—whether servicing compute, networking, or edge workloads—will go through a massive architectural transformation, 
leveraging heterogeneous computing with different types of processor architectures optimized for different workloads. With unmatched 
scale, hardware and software portfolio breadth, and ecosystem support, we are uniquely positioned to unlock the value of data for people, 
business, and society on a global scale. 

The on-premise enterprise market segment revenue grew as customers demonstrated strong recovery from COVID-19. Cloud market 
segment revenue decreased in 2021 driven by an increasingly competitive environment, and industry component supply constraints. The 
communications service provider segment continued to see strong growth with the build-out of 5G, and we collaborated with operators on 
the next wave of virtualization in the radio access network and build-out of the intelligent edge.

Products and Competition

We offer customers a broad portfolio of 
silicon and software designed to provide 
workload-optimized performance across 
computing, storage, and networking. As a 
leading provider of data center platforms, 
we have competitors such as Advanced 
Micro Devices, Inc. (AMD), providers of 
GPU products such as NVIDIA 
Corporation (NVIDIA), companies using 
ARM architecture, new entrants 
developing products customized for 
specific data center workloads, and 
internally developed solutions by cloud 
service providers and others. We expect 
the competitive environment to continue in 
2022.

In 2021, we launched our 3rd Gen Intel Xeon Scalable processors (Ice Lake), and we shipped 1 million units faster than the previous 
Xeon generations. All of our OEM partners are currently shipping 3rd Gen Intel Xeon enabled systems and all major cloud service 
provider customers have deployed services using 3rd Gen Intel Xeon processors. In 2021, we also introduced the Intel Optane Persistent 
Memory 200 Series and Optane SSD P5800X and began sampling the next generation of Intel Xeon D processors, which are built for the 
edge. 

In 2021, we also announced the IPU, a platform that enables superior security capabilities and lets our cloud customers handle 
infrastructure tasks more efficiently, enabling the Intel Xeon CPU to focus on the tenant software. Intel announced two types of IPUs, an 
FPGA-based IPU (Oak Springs Canyon) and an ASIC-based IPU co-developed with Google (Mount Evans).

23

MD&A

24

"Intel has the breadth and 

depth of leadership products 

to solve our customers' most 

complex problems in a world 

where the digitization of 

everything is accelerating the 

need for high-performance 

Executive 

Vice President and General 

Manager, Data Center and AI 

$7.0

2021

               
 
Financial Performance

DCG Revenue $B

DCG Operating Income $B

$23.5

$2.0

$21.4

$26.1

$3.0

$25.8

$3.1

$23.1

$22.7

$10.2

$10.6

$7.0

2019

2020

2021

2019

2020

2021

■ Platform

■ Adjacent

Revenue Summary

▪ Lower platform ASP driven by product mix and a competitive environment, partially offset by recovery in the enterprise and government 

market segment, compared to COVID-driven lows in 2020.

▪ Higher platform volume driven by recovery in the enterprise and government market segment (up 21% from 2020) and growth in the 

communications service providers market segment (up 9% from 2020), partially offset by a decline in the cloud service providers market 
segment (down 19% from 2020). (2020 compared to 2019, the cloud service providers market segment was up 20% and 
communications service providers market segment up 17%, partially offset by enterprise and government market segment down 8%). 

▪ Adjacent revenue grew primarily due to the inclusion of the Intel Optane memory business and growth in Ethernet, partially offset by a 

reduction in the 5G networking volume from elevated levels in 2020.

(In Millions)

Platform ASP

Platform volume

Adjacent products

Total change in revenue

Operating Income Summary

2021 vs. 2020

2020 vs. 2019

% Growth

down (4)%

up 2%

up 2%

$ Impact

% Growth

$ Impact

$ 

$ 

(924) 

down (3)%

571 

71 

(282) 

up 11%

up 49%

$ 

$ 

(701) 

2,316 

1,007 

2,622 

comprised of our IOTG and Mobileye businesses.

Internet of Things Group

Overview

More industries are harnessing the power of data to create business value, innovate, and grow. This requires that intelligence move closer 

to the edge, allowing data to be acted on where it is created. Working with our partners and developers, we use our architecture, 

accelerators, and software to develop and scale a growing Internet of Things portfolio and ecosystem. Our Internet of Things portfolio is 

Operating income decreased 34% year over year, and operating margin was 27% in 2021. 

(In Millions)
$ 

6,997  2021 Operating Income
(1,185)  Higher operating expenses driven by investment in leadership products

(840)  Higher platform unit cost primarily from increased mix of 10nm SuperFin products
(685)  Higher period charges primarily associated with ramp up of Intel 4
(435)  Lower gross margin from platform revenue
(250)  Higher period charges primarily associated with ramp down of 14nm
(160)  Higher period charges driven by increased engineering samples 
(155)  Lower adjacent product margin
145  Lower period charges driven by absence of other reserves taken in 2020, partially offset by reserves recorded in 2021

(9)  Other

$ 

10,571  2020 Operating Income

1,325  Higher gross margin from platform revenue

235  Lower period charges due to lower factory start-up costs associated with the initial ramp of 10nm, partially offset by 

lower platform product reserves

(425)  Higher operating expenses
(375)  Lower DCG adjacent product margin
(295)  Higher platform unit cost
(125)  Primarily driven by higher logistic expenses due to COVID-19

4  Other

$ 

10,227  2019 Operating Income

MD&A

25

MD&A

IOTG develops high-performance compute platforms that solve the technology needs for business use 

cases that scale across vertical industries and embedded markets. Our customers include retailers, 

manufacturers, health and life sciences providers, researchers, governments, and education providers. 

We reduce complexity in the ecosystem with common silicon architectures and software to help enable our 

customers to create, store, and process data at the edge.

Key Developments

■

Revenue was up 

from the economic impacts of COVID-19 across all key market segments. Most notably, we saw 

strength in our retail, industrial, and healthcare market segments. 

■ We announced enhanced product capabilities, which include the 11th Gen Intel Core processors 

and 3rd Gen Intel Xeon Scalable processors, both bring new AI and operational technology 

features to customers. These products are a response to needs across the verticals we serve to 

reduce edge complexity, add capabilities to developers, lower the cost of ownership, and support a 

range of environmental conditions. 

■ We continue to update solutions to improve developers' digital strategies and to accelerate market 

adoption of AI applications at the edge. This includes advancing the OpenVINO toolkit for AI 

inference model deployment. It is supported by Intel DevCloud for the Edge, which allows users to 

prototype and experiment with AI workloads on Intel hardware prior to deployment. In addition, the 

Intel® 

deliver proven business outcomes.

■ We continue to work with our ecosystem partners to expand the portfolio of Intel

IoT RFP Ready Kit products—scalable, end-to-end solutions that provide solid business results 

today and lay the foundation for the future. Currently, IOTG has approved over 600 Intel MRS and 

Intel IoT RFP Ready Kit offerings, with approximately 50,000 new deployments across 160 

countries. 

      
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lower platform ASP driven by product mix and a competitive environment, partially offset by recovery in the enterprise and government 

Adjacent revenue grew primarily due to the inclusion of the Intel Optane memory business and growth in Ethernet, partially offset by a 

 from 2020), partially offset by a decline in the cloud service providers market 

 from 2020) and growth in the 

, partially offset by enterprise and government market segment down 8%). 

2020 vs. 2019

$ Impact

$ 

$ 

(701) 

2,316 

1,007 

2,622 

Lower period charges driven by absence of other reserves taken in 2020, partially offset by reserves recorded in 2021

Lower period charges due to lower factory start-up costs associated with the initial ramp of 10nm, partially offset by 

More industries are harnessing the power of data to create business value, innovate, and grow. This requires that intelligence move closer 
to the edge, allowing data to be acted on where it is created. Working with our partners and developers, we use our architecture, 
accelerators, and software to develop and scale a growing Internet of Things portfolio and ecosystem. Our Internet of Things portfolio is 
comprised of our IOTG and Mobileye businesses.

Internet of Things Group
Overview
IOTG develops high-performance compute platforms that solve the technology needs for business use 
cases that scale across vertical industries and embedded markets. Our customers include retailers, 
manufacturers, health and life sciences providers, researchers, governments, and education providers. 
We reduce complexity in the ecosystem with common silicon architectures and software to help enable our 
customers to create, store, and process data at the edge.

Key Developments

■

Revenue was up 33%, driven by increased demand for IOTG platform products due to recovery 
from the economic impacts of COVID-19 across all key market segments. Most notably, we saw 
strength in our retail, industrial, and healthcare market segments. 

■ We announced enhanced product capabilities, which include the 11th Gen Intel Core processors 
and 3rd Gen Intel Xeon Scalable processors, both bring new AI and operational technology 
features to customers. These products are a response to needs across the verticals we serve to 
reduce edge complexity, add capabilities to developers, lower the cost of ownership, and support a 
range of environmental conditions. 

■ We continue to update solutions to improve developers' digital strategies and to accelerate market 
adoption of AI applications at the edge. This includes advancing the OpenVINO toolkit for AI 
inference model deployment. It is supported by Intel DevCloud for the Edge, which allows users to 
prototype and experiment with AI workloads on Intel hardware prior to deployment. In addition, the 
Intel® Edge Software Hub provides access to software packages from Intel and our partners to 
deliver proven business outcomes.

■ We continue to work with our ecosystem partners to expand the portfolio of Intel® MRS and Intel® 

IoT RFP Ready Kit products—scalable, end-to-end solutions that provide solid business results 
today and lay the foundation for the future. Currently, IOTG has approved over 600 Intel MRS and 
Intel IoT RFP Ready Kit offerings, with approximately 50,000 new deployments across 160 
countries. 

"The market continues to 
validate the strategic 
direction we began 
several years ago; for 
operational workloads, 
compute will move closer 
to where the data is 
created and AI inference 
will be the dominant 
technology driver."

—Tom Lantzsch, IOTG
General Manager

25

MD&A

26

 
 
5-Year Trends

$3.2

$3.5

$3.8

$4.0

$3.0

$1.0

$1.1

$1.0

$0.7

$0.5

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

■ Revenue $B

■ Op Income $B

Market and Business Overview

Market Trends and Strategy

We are at the center of a global digital transformation. Through our broad portfolio of technology, solutions, and tools, we are transforming 
the way businesses create products, deliver services, and conduct operations—across schools, hospitals, retailers, governments, utilities, 
and manufacturers. Driving business benefits requires solving customer challenges in a highly fragmented global market with scalable 
horizontal technologies. Additionally, it requires building relevant ecosystems and scaling developers specific to diverse verticals. Our 
vertical market segments include the following:

Retail—Retailers produce mountains of data that can be used to proactively address evolving 
customer demands and improve operations. We provide solutions that enable retailers to extract 
the right insights from their data, in the right place, at the right time, allowing them to use 
intelligence to transform their businesses and to achieve their full potential. The result is greater 
efficiency, reduced complexity, increased sales, and a more personalized customer experience.

Industrial—We are transforming manufacturing today and expanding what is possible for 
tomorrow's autonomous operations. We are driving the realization of Industry 4.0 and, together 
with our ecosystem partners, addressing industry challenges like the convergence of information 
technology with operational technology, while bringing AI and analytics to operations. This 
enables customers to make informed decisions that lower maintenance costs, create new 
service opportunities, and increase productivity. 

Healthcare—We are advancing technologies to enable healthcare providers to focus on patients 
and their care. Technologies like AI, robotics, and 5G are making healthcare and life sciences 
more connected, personalized, and intelligent. Our technology innovations give researchers 
powerful tools to make breakthrough discoveries and solve some of the world's largest 
healthcare and life science challenges in lab and research environments. By working together 
with solution providers and end users in the healthcare community, we will continue to develop 
transformative technologies for the future of healthcare and life sciences.

Products and Competition

IOTG utilizes Intel's technology portfolio to provide horizontal platforms while making additional investments needed to adapt products to 
the specific requirements for our vertical segments. We offer end-to-end solutions with our wide spectrum of products, including Intel 
Atom, Intel Core, Intel Xeon, VPU accelerators, and developer toolkits such as OpenVINO. IOTG product development focuses on 
addressing the key challenges businesses face, including interoperability, connectivity, safety, and security, to implement transformative 
edge solutions. We invest heavily in developing the tools to service operational technology developers and independent software vendors. 

We have a long-standing position as a supplier of components and software for embedded products. As businesses continue to create a 
deluge of data from more and more smart and connected devices across industries, the demand for high-performance computing at the 
edge has expanded exponentially. The installed base of Intel architecture-based hardware, and applications that run natively on them, 
helps us to offer compelling solutions in these markets. As this marketplace evolves, we face numerous large and small incumbent 
processor competitors, as well as new entrants that use the ARM architecture. The solutions require a broad range of connectivity 
solutions and we face competition from semiconductor companies providing traditional wireless solutions such as cellular, Wi-Fi, and 
Bluetooth, as well as several new entrants who are taking advantage of new focused communications protocols with the goal of 
expanding into computational silicon. The market is fragmented and complex, requiring interoperability, standard-based approaches, 
software, developer tools, and the ecosystem working together to accelerate time to value with commercial solutions at scale.

Mobileye

Overview

operators.

Key Developments

Mobileye is a global leader in driving assistance and self-driving solutions. Our product portfolio covers 

the entire stack required for assisted and autonomous driving, including compute platforms, computer 

vision and machine learning-based sensing, mapping and localization, driving policy, and active sensors 

in development. Mobileye's unique assets in ADAS allow for building a scalable self-driving stack that 

meets the requirements for both Robotaxi and consumer level autonomy. Our customers and strategic 

partners include major global OEMs, Tier 1 automotive system integrators, and public transportation 

■ We achieved record revenue in 2021 as global vehicle production improved amid recovery from 

the economic impacts of COVID-19. Our EyeQ SoC volume grew 42% and we expect to see 

additional growth in the adoption of enhanced ADAS technologies. We have shipped over 100 

million chips to date, including 28 million EyeQ SoCs in 2021.

■ We secured a record 41 new ADAS design wins, including deals with major OEMs such as 

Toyota, VW, BMW, Nissan, Honda, and PSA Group. We are currently active in 71 production 

programs

■ We launched our SAE L4 SDS, Mobileye Drive™, and secured multiple collaborations for 

commercial use, including with Udelv for autonomous cargo delivery, and with Transdev for self-

driving mobility services. We also achieved our first consumer L4 design win with Geely.

■ We unveiled the Mobileye Robotaxi, a production-grade self-driving electric vehicle, with mobility 

rider services and MaaS platform, as well as mobility intelligence, tele-operations and data 

services by Moovit. Through the partnership with SIXT, Robotaxi services will begin in Germany 

in 2022, along with the already announced Robotaxi services in Tel Aviv.  

■

In December 2021, we announced our intention to take Mobileye public in the US via an IPO of 

newly issued Mobileye stock. Intel expects to retain majority ownership of Mobileye following the 

completion of the IPO. 

5-Year Trends

$0.2

2017

Market and Business Overview

Market Trends and Strategy

While the vehicle industry shows recovery from the COVID-19 pandemic with approximately 2%

roughly 15% below 2019 levels. We expect ADAS volume to overcome the COVID-19 effects faster than overall global vehicle production, 

given the significant growth shown in 2021. We anticipate long-term ADAS growth from a strong build-up in L1-L2 ADAS fitment rates, 

increasing the number of vehicles that will have basic ADAS features from the factory. In addition, we expect increased demand for new 

generations of cloud-enhanced ADAS as OEMs continue to look to boost current L2 solutions by improving system fidelity, availability, and 

performance. A crucial building block for L4 autonomy, our REM high-definition maps with constant updates, global coverage, and crowd-

based semantics provide a unique value proposition for enhanced L2 systems. We see great traction from leading OEMs (including VW 

and Ford, as recently announced) as REM-based enhancements can be achieved based on economical configuration. 

We believe the future of autonomous driving will unfold in two phases: commercial services like Robotaxi and cargo, followed by series-

production passenger car consumer AVs. We expect consumer AVs to materialize only after the Robotaxi industry deploys and matures. 

The main inhibitors of a mass market product offering of consumer AV are the cost of AV technology, ability to scale at a low cost, 

regulatory framework, public acceptance, and the ability to scale geographically. Thus, we see the Robotaxi phase as a necessary 

corridor to consumer AV. Because of our scalable approach, Mobileye is well-positioned to play a significant role in both the Robotaxi 

market and the future consumer AV market. This is driven by three elements in our strategy: lean compute enabled by the tight co-design 

of hardware and software, REM crowdsourced maps that provide unparalleled global coverage and constant updates, and development of 

high-resolution imaging radars to reduce the use of costly LiDAR sensors.

1 This refers to the total number of production programs with active project managers. Intel's definition of program is included in "Key Terms" within the 

Financial Statements and Supplemental Details. 

2  Mobileye was acquired in Q3 2017; 2017 results do not represent the full year. 

3  Source: IHS Markit.

MD&A

27

MD&A

      
       
      
$1.0

2021

Mobileye

Overview
Mobileye is a global leader in driving assistance and self-driving solutions. Our product portfolio covers 
the entire stack required for assisted and autonomous driving, including compute platforms, computer 
vision and machine learning-based sensing, mapping and localization, driving policy, and active sensors 
in development. Mobileye's unique assets in ADAS allow for building a scalable self-driving stack that 
meets the requirements for both Robotaxi and consumer level autonomy. Our customers and strategic 
partners include major global OEMs, Tier 1 automotive system integrators, and public transportation 
operators.

Key Developments

■ We achieved record revenue in 2021 as global vehicle production improved amid recovery from 
the economic impacts of COVID-19. Our EyeQ SoC volume grew 42% and we expect to see 
additional growth in the adoption of enhanced ADAS technologies. We have shipped over 100 
million chips to date, including 28 million EyeQ SoCs in 2021.

■ We secured a record 41 new ADAS design wins, including deals with major OEMs such as 

Toyota, VW, BMW, Nissan, Honda, and PSA Group. We are currently active in 71 production 
programs1 across over 30 OEMs.

■ We launched our SAE L4 SDS, Mobileye Drive™, and secured multiple collaborations for 

commercial use, including with Udelv for autonomous cargo delivery, and with Transdev for self-
driving mobility services. We also achieved our first consumer L4 design win with Geely.

■ We unveiled the Mobileye Robotaxi, a production-grade self-driving electric vehicle, with mobility 
rider services and MaaS platform, as well as mobility intelligence, tele-operations and data 
services by Moovit. Through the partnership with SIXT, Robotaxi services will begin in Germany 
in 2022, along with the already announced Robotaxi services in Tel Aviv.  
In December 2021, we announced our intention to take Mobileye public in the US via an IPO of 
newly issued Mobileye stock. Intel expects to retain majority ownership of Mobileye following the 
completion of the IPO. 

■

5-Year Trends2

"The future of autonomous 
driving will be driven by the 
expansion of Robotaxis, 
followed by the proliferation 
of consumer level AVs. 
While it is too early to 
determine which realm will 
dominate, Mobileye is 
uniquely positioned to 
become a leader in both 
spaces."

—Prof. Amnon Shashua, 
President and Chief Executive 
Officer, Mobileye

We are advancing technologies to enable healthcare providers to focus on patients 

and their care. Technologies like AI, robotics, and 5G are making healthcare and life sciences 

more connected, personalized, and intelligent. Our technology innovations give researchers 

$0.2

$0.7

$0.9

$1.0

$1.4

$0.1

$0.2

$0.2

$0.5

2017

2018

2019

2020

2021

$—
2017

2018

2019

2020

2021

■ Revenue $B

■ Op Income $B

Market and Business Overview

Market Trends and Strategy
While the vehicle industry shows recovery from the COVID-19 pandemic with approximately 2%3 growth year over year, production is still 
roughly 15% below 2019 levels. We expect ADAS volume to overcome the COVID-19 effects faster than overall global vehicle production, 
given the significant growth shown in 2021. We anticipate long-term ADAS growth from a strong build-up in L1-L2 ADAS fitment rates, 
increasing the number of vehicles that will have basic ADAS features from the factory. In addition, we expect increased demand for new 
generations of cloud-enhanced ADAS as OEMs continue to look to boost current L2 solutions by improving system fidelity, availability, and 
performance. A crucial building block for L4 autonomy, our REM high-definition maps with constant updates, global coverage, and crowd-
based semantics provide a unique value proposition for enhanced L2 systems. We see great traction from leading OEMs (including VW 
and Ford, as recently announced) as REM-based enhancements can be achieved based on economical configuration. 

We believe the future of autonomous driving will unfold in two phases: commercial services like Robotaxi and cargo, followed by series-
production passenger car consumer AVs. We expect consumer AVs to materialize only after the Robotaxi industry deploys and matures. 
The main inhibitors of a mass market product offering of consumer AV are the cost of AV technology, ability to scale at a low cost, 
regulatory framework, public acceptance, and the ability to scale geographically. Thus, we see the Robotaxi phase as a necessary 
corridor to consumer AV. Because of our scalable approach, Mobileye is well-positioned to play a significant role in both the Robotaxi 
market and the future consumer AV market. This is driven by three elements in our strategy: lean compute enabled by the tight co-design 
of hardware and software, REM crowdsourced maps that provide unparalleled global coverage and constant updates, and development of 
high-resolution imaging radars to reduce the use of costly LiDAR sensors.
1 This refers to the total number of production programs with active project managers. Intel's definition of program is included in "Key Terms" within the 

Financial Statements and Supplemental Details. 

2  Mobileye was acquired in Q3 2017; 2017 results do not represent the full year. 
3  Source: IHS Markit.

27

MD&A

28

We are at the center of a global digital transformation. Through our broad portfolio of technology, solutions, and tools, we are transforming 

the way businesses create products, deliver services, and conduct operations—across schools, hospitals, retailers, governments, utilities, 

and manufacturers. Driving business benefits requires solving customer challenges in a highly fragmented global market with scalable 

horizontal technologies. Additionally, it requires building relevant ecosystems and scaling developers specific to diverse verticals. Our 

Retailers produce mountains of data that can be used to proactively address evolving 

customer demands and improve operations. We provide solutions that enable retailers to extract 

intelligence to transform their businesses and to achieve their full potential. The result is greater 

efficiency, reduced complexity, increased sales, and a more personalized customer experience.

We are transforming manufacturing today and expanding what is possible for 

tomorrow's autonomous operations. We are driving the realization of Industry 4.0 and, together 

with our ecosystem partners, addressing industry challenges like the convergence of information 

technology with operational technology, while bringing AI and analytics to operations. This 

enables customers to make informed decisions that lower maintenance costs, create new 

healthcare and life science challenges in lab and research environments. By working together 

with solution providers and end users in the healthcare community, we will continue to develop 

IOTG utilizes Intel's technology portfolio to provide horizontal platforms while making additional investments needed to adapt products to 

the specific requirements for our vertical segments. We offer end-to-end solutions with our wide spectrum of products, including Intel 

Atom, Intel Core, Intel Xeon, VPU accelerators, and developer toolkits such as OpenVINO. IOTG product development focuses on 

addressing the key challenges businesses face, including interoperability, connectivity, safety, and security, to implement transformative 

edge solutions. We invest heavily in developing the tools to service operational technology developers and independent software vendors. 

We have a long-standing position as a supplier of components and software for embedded products. As businesses continue to create a 

deluge of data from more and more smart and connected devices across industries, the demand for high-performance computing at the 

edge has expanded exponentially. The installed base of Intel architecture-based hardware, and applications that run natively on them, 

helps us to offer compelling solutions in these markets. As this marketplace evolves, we face numerous large and small incumbent 

processor competitors, as well as new entrants that use the ARM architecture. The solutions require a broad range of connectivity 

solutions and we face competition from semiconductor companies providing traditional wireless solutions such as cellular, Wi-Fi, and 

Bluetooth, as well as several new entrants who are taking advantage of new focused communications protocols with the goal of 

expanding into computational silicon. The market is fragmented and complex, requiring interoperability, standard-based approaches, 

      
       
In Robotaxi, Mobileye is active via two major business models: First, we are positioning ourselves to be an end-to-end service provider 
together with Moovit's complementary go-to-market assets and service layers. Second, we are also engaging with various public 
transportation operators, goods delivery, and mobility providers via a Vehicle-as-a-Service business model in which we provide a fully 
integrated self-driving platform. 

Financial Performance

Regulatory approval and framework are a prerequisite for AV proliferation. In 2021, Germany became the first country in the world to allow 
autonomous vehicles onto public roads without requiring a human backup safety driver behind the wheel. We anticipate one or more 
additional countries will soon provide similar regulation, enabling regular deployment and operation of MaaS fleets with self-driving 
vehicles starting in 2022.

Products and Competition

Our offering for ADAS and AV is propelled by our computer vision, AI expertise, and software assets, deployed on our EyeQ SoC family. 
The tight co-design of hardware and software gives the EyeQ SoC the ability to support complex and computationally intense tasks and 
sets it apart from competition because it is purpose-fit for high-compute, low-power, automotive-compliant mission profiles. Our 5th Gen 
EyeQ5 SoC is designed to act as the core building block of central compute for fully autonomous driving vehicles. We have been able to 
achieve power, performance, and cost targets by employing proprietary computational cores that are optimized for a wide variety of 
computer vision, signal processing, and machine learning tasks, including deep neural networks. Starting with EyeQ5, we are supporting 
an automotive-grade standard operating system and providing a complete software development kit to allow customers to differentiate 
their solutions by deploying their algorithms on EyeQ5. The EyeQ5 SoC is already available for commercial vehicles and is already 
operational in our autonomous test vehicles.

EyeQ5 serves as the computational foundation for our scalable camera-only surround sensing system. The system consists of multiple 
independent computer vision engines and deep networks for algorithmic redundancy. The result is a robust and comprehensive model of 
the environment that allows end-to-end autonomous driving. The surround computer vision system is the backbone of Mobileye's AV 
architecture and the flagship offering for next-generation ADAS.

We recently introduced EyeQ6L and EyeQ6H, which are designed to provide a scalable solution from entry level ADAS to L2+ and L4 
systems. The EyeQ6 platform opens Mobileye to host and process parking and DMS data. EyeQ6L is expected to be deployed in 2023, 
while EyeQ6H will start production in 2024.

We also introduced the EyeQ® Ultra™, our most advanced, highest performing SoC purpose-built for autonomous driving. EyeQ Ultra 
maximizes both performance and efficiency at 176 tera operations per second. This efficiently designed SoC builds on six generations of 
proven EyeQ architecture and four classes of proprietary accelerator cores to deliver the power and performance needed for AVs. The first 
silicon for the EyeQ Ultra SoC is expected at the end of 2023, with full automotive-grade production in 2025.

The next significant building block in our complete offering is REM mapping technology, which compiles crowdsourced mapping data from 
EyeQ SoC-equipped vehicles. Together with our OEM partners, we are utilizing our strong presence in ADAS to gain crowd knowledge 
that is required for building AV maps. After five years of intense development, the REM technology is fully functional for L2/L2+ 
applications and provides a variety of advanced features, including predictive adaptive cruise control, lane-level localization in all weather 
and road conditions, hands-free driving application, and real-time alerts. REM also provides intelligent speed adaptation functionality for 
regulation required by GSR and EUNCAP starting in 2022. REM technology is one of our key differentiators.

The third building block in our full stack offering is our unique formal model for AV safety (RSS). At its core, RSS is a pragmatic method to 
design and then efficiently validate the safety of an AV, serving as the governing safety layer for the decision-making system. RSS 
formalizes human decision making for safe driving. It acknowledges the need to balance safety with useful driving by making plausible 
worst-case scenario assumptions for other road users. By using induction and analytical calculations, the RSS model allows for a lean 
driving policy with high computational efficiency. 

The fourth building block is True Redundancy™, which manifests our approach to AV sensing. True Redundancy combines two 
independent perception sub-systems—one powered by cameras, and another by radar and LiDAR—and supports full end-to-end 
autonomous capabilities. Our Level 4 self-driving system, Mobileye Drive, incorporates both systems.

Our last building block is active sensors development. Mobileye and Intel's combined competencies put us in a unique position to advance 
with the development of a software-defined imaging radar designed to deliver rich point cloud modeling capabilities to enable sensing-
state and driving decisions solely on radar. Our imaging radars would replace most of the field of view covered by today's costly LiDARs. 
LiDAR would be retained only for the front-facing field of view, where it would operate in three-way redundancy with cameras and radar, 
enabling a major cost reduction for the entire sensor configuration. The proof of concept and modelling using this new radar technology 
has already been demonstrated. We are also developing a unique Frequency-Modulated Continuous Wave LiDAR designed to provide 
high point density with relative speed measurement and superior immunity for additional safety in time-critical decisions.

Revenue Summary

2021 vs. 2020

IOTG revenue 

from the economic impacts of COVID-19, partially offset by 

Mobileye revenue increased 

COVID-19, and increasing adoption of ADAS compared to 2020.

$0.9

$3.8

2019

2020 vs. 2019

IOTG revenue decreased 

Mobileye revenue was 

Operating Income Summary

2021 vs. 2020

IOTG operating income 

2020 vs. 2019

IOTG operating income 

Mobileye operating income was 

offset by growth in revenue.

MD&A

29

MD&A

driven by weaker core mix and $265 million driven by weaker demand for IOTG platform products. Revenue was also negatively affected 

by considerations related to the US government Entity List.

2020, offsetting the decline in production experienced in the first half of the year due to the effects of the COVID-19 pandemic.

Mobileye operating income increased 

from the economic impacts of COVID-19, and increasing adoption of ADAS compared to 2020.

In Robotaxi, Mobileye is active via two major business models: First, we are positioning ourselves to be an end-to-end service provider 

together with Moovit's complementary go-to-market assets and service layers. Second, we are also engaging with various public 

transportation operators, goods delivery, and mobility providers via a Vehicle-as-a-Service business model in which we provide a fully 

Financial Performance

Internet of Things Revenue $B

Internet of Things Op Income $B

Regulatory approval and framework are a prerequisite for AV proliferation. In 2021, Germany became the first country in the world to allow 

autonomous vehicles onto public roads without requiring a human backup safety driver behind the wheel. We anticipate one or more 

additional countries will soon provide similar regulation, enabling regular deployment and operation of MaaS fleets with self-driving 

Our offering for ADAS and AV is propelled by our computer vision, AI expertise, and software assets, deployed on our EyeQ SoC family. 

The tight co-design of hardware and software gives the EyeQ SoC the ability to support complex and computationally intense tasks and 

sets it apart from competition because it is purpose-fit for high-compute, low-power, automotive-compliant mission profiles. Our 5th Gen 

EyeQ5 SoC is designed to act as the core building block of central compute for fully autonomous driving vehicles. We have been able to 

achieve power, performance, and cost targets by employing proprietary computational cores that are optimized for a wide variety of 

computer vision, signal processing, and machine learning tasks, including deep neural networks. Starting with EyeQ5, we are supporting 

an automotive-grade standard operating system and providing a complete software development kit to allow customers to differentiate 

their solutions by deploying their algorithms on EyeQ5. The EyeQ5 SoC is already available for commercial vehicles and is already 

EyeQ5 serves as the computational foundation for our scalable camera-only surround sensing system. The system consists of multiple 

independent computer vision engines and deep networks for algorithmic redundancy. The result is a robust and comprehensive model of 

the environment that allows end-to-end autonomous driving. The surround computer vision system is the backbone of Mobileye's AV 

We recently introduced EyeQ6L and EyeQ6H, which are designed to provide a scalable solution from entry level ADAS to L2+ and L4 

systems. The EyeQ6 platform opens Mobileye to host and process parking and DMS data. EyeQ6L is expected to be deployed in 2023, 

$0.9

$3.8

$1.0

$3.0

$1.4

$4.0

2019

2020

2021

$0.2

$1.1

2019

$0.2

$0.5

2020

$0.5

$1.0

2021

■ IOTG  ■ Mobileye

Revenue Summary

2021 vs. 2020

IOTG revenue increased $991 million, primarily driven by $1.1 billion related to higher demand for IOTG platform products amid recovery 
from the economic impacts of COVID-19, partially offset by $115 million due to lower ASPs.

Mobileye revenue increased $419 million, driven by improvement in global vehicle production, recovery from the economic impacts of 
COVID-19, and increasing adoption of ADAS compared to 2020.

2020 vs. 2019

We also introduced the EyeQ® Ultra™, our most advanced, highest performing SoC purpose-built for autonomous driving. EyeQ Ultra 

maximizes both performance and efficiency at 176 tera operations per second. This efficiently designed SoC builds on six generations of 

proven EyeQ architecture and four classes of proprietary accelerator cores to deliver the power and performance needed for AVs. The first 

IOTG revenue decreased $814 million, or 21%, primarily driven by the economic impacts of COVID-19 with $470 million in lower ASPs 
driven by weaker core mix and $265 million driven by weaker demand for IOTG platform products. Revenue was also negatively affected 
by considerations related to the US government Entity List.

The next significant building block in our complete offering is REM mapping technology, which compiles crowdsourced mapping data from 

SoC-equipped vehicles. Together with our OEM partners, we are utilizing our strong presence in ADAS to gain crowd knowledge 

that is required for building AV maps. After five years of intense development, the REM technology is fully functional for L2/L2+ 

applications and provides a variety of advanced features, including predictive adaptive cruise control, lane-level localization in all weather 

and road conditions, hands-free driving application, and real-time alerts. REM also provides intelligent speed adaptation functionality for 

The third building block in our full stack offering is our unique formal model for AV safety (RSS). At its core, RSS is a pragmatic method to 

design and then efficiently validate the safety of an AV, serving as the governing safety layer for the decision-making system. RSS 

formalizes human decision making for safe driving. It acknowledges the need to balance safety with useful driving by making plausible 

worst-case scenario assumptions for other road users. By using induction and analytical calculations, the RSS model allows for a lean 

The fourth building block is True Redundancy™, which manifests our approach to AV sensing. True Redundancy combines two 

independent perception sub-systems—one powered by cameras, and another by radar and LiDAR—and supports full end-to-end 

Our last building block is active sensors development. Mobileye and Intel's combined competencies put us in a unique position to advance 

with the development of a software-defined imaging radar designed to deliver rich point cloud modeling capabilities to enable sensing-

state and driving decisions solely on radar. Our imaging radars would replace most of the field of view covered by today's costly LiDARs. 

LiDAR would be retained only for the front-facing field of view, where it would operate in three-way redundancy with cameras and radar, 

enabling a major cost reduction for the entire sensor configuration. The proof of concept and modelling using this new radar technology 

has already been demonstrated. We are also developing a unique Frequency-Modulated Continuous Wave LiDAR designed to provide 

Mobileye revenue was $967 million, up $88 million, driven by higher demand from improved global vehicle production in the second half of 
2020, offsetting the decline in production experienced in the first half of the year due to the effects of the COVID-19 pandemic.

Operating Income Summary

2021 vs. 2020

IOTG operating income increased $548 million, primarily due to higher platform revenue.

Mobileye operating income increased $219 million, due to higher revenue driven by improvement in global vehicle production, recovery 
from the economic impacts of COVID-19, and increasing adoption of ADAS compared to 2020.

2020 vs. 2019

IOTG operating income decreased $600 million, primarily due to lower platform revenue.

Mobileye operating income was $241 million, down $4 million, due to higher spending primarily driven by the Moovit acquisition, partially 
offset by growth in revenue.

29

MD&A

30

Market and Business Overview

Market Trends and Strategy

The combination of ever-exploding growth in data and the desire to analyze data for actionable insights requires our customers to balance 

performance, real-time access, and cost. Our 3D NAND TLC and QLC technology innovations enable our customers to have access to 

efficient, cost-effective capacity storage.

In October of 2020, we signed an agreement with SK hynix to divest our NAND memory business, including our NAND memory 

fabrication facility in Dalian, China and certain related equipment and tangible assets (the Fab Assets), our NAND SSD Business (the 

NAND SSD Business), and our NAND memory technology and manufacturing business (the NAND OpCo Business). The first closing was 

completed on 

NAND SSD Business. In connection with the first closing, we and certain affiliates of SK hynix also entered into a NAND wafer 

manufacturing and sale agreement, pursuant to which we will manufacture and sell to SK hynix NAND memory wafers to be 

manufactured using the Fab Assets in Dalian, China until the second closing.

Products and Competitiveness

We compete against other providers of NAND products. We offer 96-layer and 64-layer TLC NAND high-capacity SSDs, and 144-layer 

QLC NAND high-capacity SSDs. We focus our efforts primarily on incorporating NAND into solution products. 

The acceleration in data growth across our customer base requires significant innovation in storage technology. Our storage roadmap led 

the way in re-imagining usages and architecting innovative solutions that have disrupted the industry with 96-layer and 144-layer 3D 

NAND TLC and QLC solutions. We launched four new products with multiple densities to keep up with the evolving business needs of our 

customers. 

Overview
NSG provides next-generation memory and storage products based on innovative Intel 3D NAND 
technology. NSG is disrupting the memory and storage hierarchy with new tiers that balance capacity, 
performance, and cost. Our products are available in innovative form factors and densities to address 
the memory and storage challenges our customers face in a rapidly evolving technological landscape. 
Our customers include enterprise and cloud-based data centers, and users of business and consumer 
desktops and laptops. 
Key Developments

■

Revenue was lower in 2021, driven by market softness and pricing pressure. NAND profitability 
improved due to the absence of depreciation expense from NAND property, plant and equipment 
that was held for sale throughout 2021. 

■ We launched the Intel® SSD D5-P5316, our first 144-layer QLC NAND SSD for the Data Center, 
which is available up to 30.72TB in both the U.2 and efficient E1.L form factors. An upgrade of 
our SATA drive, the Intel® SSD D3-S4520 and D3-S4620, also launched with Intel’s latest-gen 
144-layer TLC NAND and is available in 2.5” and M.2 form factors up to 7.68TB capacity. For our 
consumer market, the Intel® SSD 670p with 144-layer QLC NAND launched with improved 
performance, storage responsiveness, and endurance with high capacity (up to 2TB).

■

In October 2020, we signed an agreement with SK hynix to divest our NAND memory business. 
The NAND memory business makes up our NSG segment. The transaction will occur over two 
closings, the first of which was completed on December 29, 2021, subsequent to our fiscal 2021 
year-end. We will fully deconsolidate our ongoing interests in the NAND OpCo Business in the 
first quarter of 2022. Refer to "Note 10: Acquisitions and Divestitures" within Notes to 
Consolidated Financial Statements for further information on the divestiture.

"Storage technologies help 
drive the computing 
experience. Put simply, in 
today’s data-driven world, 
advances in both data 
center and client computing 
need to be matched by 
cutting-edge innovation in 
the memory-and-storage 
space."

—Rob Crooke, NSG General 
Manager

5-Year Trends

$3.5

$4.3

$4.4

$4.3

$5.4

2017

2018

2019

2020

2021

2017

2018

$—

$(0.3)

$1.4

$0.4

$(1.2)
2019

2020

2021

■ Revenue $B

■ Op Income $B

MD&A

31

MD&A

    
         
Market and Business Overview

Market Trends and Strategy

The combination of ever-exploding growth in data and the desire to analyze data for actionable insights requires our customers to balance 
performance, real-time access, and cost. Our 3D NAND TLC and QLC technology innovations enable our customers to have access to 
efficient, cost-effective capacity storage.

In October of 2020, we signed an agreement with SK hynix to divest our NAND memory business, including our NAND memory 
fabrication facility in Dalian, China and certain related equipment and tangible assets (the Fab Assets), our NAND SSD Business (the 
NAND SSD Business), and our NAND memory technology and manufacturing business (the NAND OpCo Business). The first closing was 
completed on December 29, 2021, subsequent to our fiscal 2021 year-end. At first closing, we sold to SK hynix the Fab Assets and the 
NAND SSD Business. In connection with the first closing, we and certain affiliates of SK hynix also entered into a NAND wafer 
manufacturing and sale agreement, pursuant to which we will manufacture and sell to SK hynix NAND memory wafers to be 
manufactured using the Fab Assets in Dalian, China until the second closing.

Products and Competitiveness
We compete against other providers of NAND products. We offer 96-layer and 64-layer TLC NAND high-capacity SSDs, and 144-layer 
QLC NAND high-capacity SSDs. We focus our efforts primarily on incorporating NAND into solution products. 

The acceleration in data growth across our customer base requires significant innovation in storage technology. Our storage roadmap led 
the way in re-imagining usages and architecting innovative solutions that have disrupted the industry with 96-layer and 144-layer 3D 
NAND TLC and QLC solutions. We launched four new products with multiple densities to keep up with the evolving business needs of our 
customers. 

"Storage technologies help 

drive the computing 

experience. Put simply, in 

today’s data-driven world, 

advances in both data 

center and client computing 

need to be matched by 

cutting-edge innovation in 

the memory-and-storage 

NSG General 

$1.4

2021

31

MD&A

32

Financial Performance

NSG Revenue $B

$5.4

$4.4

$4.3

NSG Operating Income $B

$1.4

$0.4

2019

2020

2021

$(1.2)
2019

2020

2021

Revenue Summary

2021 vs. 2020

Revenue decreased $1.1 billion, driven by $712 million lower ASPs due to market softness and pricing pressure and $392 million due to 
the transfer of the Intel Optane memory business to DCG.

2020 vs. 2019

Revenue increased $996 million, driven by $716 million higher ASP from improved NAND pricing and $280 million from improved overall 
demand.

Operating Income Summary

2021 vs. 2020

NSG had an operating profit of $1.4 billion, up from an operating profit of $361 million in 2020. The operating profit was driven by $1.4 
billion of improvements in unit cost, primarily driven by the absence of depreciation expense from NAND property, plant and equipment 
that was held for sale, $366 million of lower period charges, and $220 million of lower operating expenses, partially offset by $929 million 
of lower revenue primarily on ASP decline. Operating income also benefited from the transfer of the Intel Optane memory business from 
2021 NSG results (a loss of $576 million in 2020). 

2020 vs. 2019

market segments from COVID-19 lows. Revenue was limited by ongoing industry component, 

NSG had an operating profit of $361 million, up from an operating loss of $1.2 billion in 2019. The operating profit was driven by $716 
million higher ASPs from market pricing recovery and $741 million due to continued improvements in unit cost. 

Overview

PSG offers programmable semiconductors, primarily FPGAs, structured ASICs, and related products, for 

a broad range of applications across our embedded, communications, and cloud and enterprise market 

segments. Our product portfolio delivers FPGA acceleration in tandem with Intel microprocessors, which 

enables us to combine the benefits of our broad portfolio of technologies to allow more flexibility for 

systems to operate with increased efficiency and higher performance.

Key Developments

■

Revenue was up 

substrate, and foundry capacity shortages.

■ We are shipping our Intel

performance, power efficiency, and transceiver performance. 

N5X device family (Diamond Mesa) for low-latency 5G network acceleration, cloud acceleration, 

and storage, AI, and edge applications. 

■ We announced Arrow Creek, an FPGA-based Acceleration Development Platform SmartNIC 

adapter for high-performance 100G networking acceleration, and RedHat support for our Intel 

Open FPGA Stack scalable, source-accessible FPGA hardware and software infrastructure.

■ We announced that Intel

service providers. We also announced Oak Springs Canyon, an IPU platform built with the Intel

Xeon

5-Year Trends

$1.9

2017

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33

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$1.4

2021

$392 million due to 

 from improved overall 

 in 2019. The operating profit was driven by $716 

 of improvements in unit cost, primarily driven by the absence of depreciation expense from NAND property, plant and equipment 

. The operating profit was driven by $1.4 

$929 million 

Overview
PSG offers programmable semiconductors, primarily FPGAs, structured ASICs, and related products, for 
a broad range of applications across our embedded, communications, and cloud and enterprise market 
segments. Our product portfolio delivers FPGA acceleration in tandem with Intel microprocessors, which 
enables us to combine the benefits of our broad portfolio of technologies to allow more flexibility for 
systems to operate with increased efficiency and higher performance.

of lower revenue primarily on ASP decline. Operating income also benefited from the transfer of the Intel Optane memory business from 

Key Developments

■

Revenue was up 4% year over year, driven by recovery in the embedded and communications 
market segments from COVID-19 lows. Revenue was limited by ongoing industry component, 
substrate, and foundry capacity shortages.

■ We are shipping our Intel® Agilex™ FPGA family, featuring industry-leading FPGA fabric 

performance, power efficiency, and transceiver performance. We released our Intel® eASIC™ 
N5X device family (Diamond Mesa) for low-latency 5G network acceleration, cloud acceleration, 
and storage, AI, and edge applications. 

■ We announced Arrow Creek, an FPGA-based Acceleration Development Platform SmartNIC 

adapter for high-performance 100G networking acceleration, and RedHat support for our Intel 
Open FPGA Stack scalable, source-accessible FPGA hardware and software infrastructure.
■ We announced that Intel® FPGA-based IPU platforms are currently deployed at multiple cloud 

service providers. We also announced Oak Springs Canyon, an IPU platform built with the Intel® 
Xeon® D processor and the Intel Agilex FPGA.

"Intel FPGAs and Structured 
ASICs, unleashed with 
software, platform and 
workload innovations, are 
accelerating a smart and 
connected world."

—Shannon Poulin, PSG 
General Manager

5-Year Trends

$1.9

$2.1

$2.0

$1.9

$1.9

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

■ Revenue $B

■ Op Income $B

$0.5

$0.5

$0.3

$0.3

$0.3

33

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34

     
                 
$2.0

2019

Revenue Summary

2021 vs. 2020

Revenue increased

2020 vs. 2019

Revenue decreased 

enterprise market segment.

Operating Income Summary

2021 vs. 2020

Operating income 

2020 vs. 2019

offset by customer inventory digestion in the cloud market segment.

benefited DCG adjacencies, and decline in our embedded market segment. The decline was partially offset by strength in the cloud and 

segments from COVID-19 lows, partially offset by a decrease in the cloud market segment. 

Operating income decreased 

by strength in the cloud and enterprise market segment

Market and Business Overview

Market Trends and Strategy

Financial Performance

With the rise of pervasive connectivity and autonomous transactions, vast networks of devices and systems are linked from the edge 
through infrastructure to the cloud. Our FPGA and structured ASIC technologies enhance Intel's ability to meet the needs of customers in 
the data center, across the network, and at the edge by extending platform capabilities, intercepting evolving requirements when 
standards are still changing, and enabling customers to validate next-generation technology proof points early in the market transition. 
The Intel FPGA portfolio enables this transformation with discrete FPGAs and software-defined, hardware-based, multi-function 
acceleration cards and IPUs that allow faster development times, high performance, and power efficiency with lower overall total cost of 
ownership.

We enable a broad range of solutions targeting applications across our embedded, communications, and cloud and enterprise market 
segments. The configurability and efficiency of FPGAs provide advantages to enable transformative applications such as 5G wireless, 
network function virtualization acceleration, and edge acceleration for video analytics and Industry 4.0. At the edge, where systems ingest 
large amounts of data, Intel FPGAs are ideal for pre-processing data to accelerate Intel processors. In the network, where data traffic is 
increasing and network functions are being virtualized to improve transport efficiency, Intel FPGAs are built to deliver high-bandwidth 
aggregation and processing. In the cloud, where workloads shift dynamically and algorithms change, Intel FPGAs are the ideal solution for 
adapting to new demands through reconfigurability and enabling the offload of infrastructure processing tasks from CPUs as part of an 
IPU platform.

Products and Competition

We deliver solutions in the PLD market, primarily FPGAs and structured ASICs, to accelerate applications that help secure, power, and 
connect billions of devices and the infrastructure of the smart, connected, data-centric world. We face competition from other 
programmable logic companies, as well as companies that make other types of semiconductor products, such as ASICs, application-
specific standard products, GPUs, digital signal processors, and CPUs. Targeted growth areas for our programmable solutions include 
5G, AI, intelligent edge, and cloud applications. The FPGA life cycle generally takes three or more years from the time that a design win is 
secured before a customer starts volume production and we receive the associated revenue.

We continue to leverage our heterogeneous architecture on advanced nodes to deliver 
innovative products at an accelerated pace, allowing the integration of analog, 
memory, custom computing, custom I/O, and Intel eASIC chiplets into a single 
package. Our Intel Agilex FPGA family, built on Intel 10nm SuperFin technology, is now 
shipping. The Agilex family delivers leading performance and power efficiency for 
diverse workloads.

We continue to invest in our Intel eASIC portfolio. Our Intel eASIC N5X, the next-
generation Intel eASIC device, is now in production. Structured ASIC products serve as 
an intermediary technology between FPGAs and standard-cell ASICs that provides 
lower unit cost and lower power compared to FPGAs, and faster time-to-market and 
lower non-recurring engineering cost compared to standard-cell ASICs. Intel eASIC 
products have growth opportunities through adoption in 5G applications and scale 
across a wide range of markets.

We continue to execute to our developer-first strategy with oneAPI support for several 
Intel FPGA families and the Intel® FPGA Programmable Acceleration Card. The 
oneAPI programming model allows users to save significant development time and 
enhance productivity while using a single, unified language for CPUs, GPUs, and 
FPGAs.

We introduced several new platforms, solutions, and partnerships during the year. We 
announced Arrow Creek, an FPGA-based Acceleration Development Platform 
SmartNIC adapter that can flexibly accelerate several infrastructure workloads and 
enable high-performance 100G connectivity by combining Intel’s Agilex FPGA and the 
Intel Ethernet 800 Series controller. We introduced RedHat support for Intel Open 
FPGA Stack, further enabling solution and board providers to build their own 
differentiated FPGA platforms for servers with Intel Xeon CPUs. We also announced 
with the US Defense Advanced Research Projects Agency a three-year partnership to 
advance the development of domestically manufactured structured ASIC platforms.  

Intel FPGAs play a critical role in Intel’s announced IPU vision, enabling cloud and 
communications service providers to reduce overhead and free up performance for 
CPUs. Intel FPGA-based IPU platforms are currently deployed at multiple cloud 
service providers. We also announced Oak Springs Canyon, an IPU reference platform 
built with our Intel Xeon D processor and our Intel Agilex FPGA.

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With the rise of pervasive connectivity and autonomous transactions, vast networks of devices and systems are linked from the edge 

through infrastructure to the cloud. Our FPGA and structured ASIC technologies enhance Intel's ability to meet the needs of customers in 

the data center, across the network, and at the edge by extending platform capabilities, intercepting evolving requirements when 

standards are still changing, and enabling customers to validate next-generation technology proof points early in the market transition. 

The Intel FPGA portfolio enables this transformation with discrete FPGAs and software-defined, hardware-based, multi-function 

acceleration cards and IPUs that allow faster development times, high performance, and power efficiency with lower overall total cost of 

We enable a broad range of solutions targeting applications across our embedded, communications, and cloud and enterprise market 

segments. The configurability and efficiency of FPGAs provide advantages to enable transformative applications such as 5G wireless, 

network function virtualization acceleration, and edge acceleration for video analytics and Industry 4.0. At the edge, where systems ingest 

large amounts of data, Intel FPGAs are ideal for pre-processing data to accelerate Intel processors. In the network, where data traffic is 

increasing and network functions are being virtualized to improve transport efficiency, Intel FPGAs are built to deliver high-bandwidth 

aggregation and processing. In the cloud, where workloads shift dynamically and algorithms change, Intel FPGAs are the ideal solution for 

adapting to new demands through reconfigurability and enabling the offload of infrastructure processing tasks from CPUs as part of an 

We deliver solutions in the PLD market, primarily FPGAs and structured ASICs, to accelerate applications that help secure, power, and 

programmable logic companies, as well as companies that make other types of semiconductor products, such as ASICs, application-

specific standard products, GPUs, digital signal processors, and CPUs. Targeted growth areas for our programmable solutions include 

5G, AI, intelligent edge, and cloud applications. The FPGA life cycle generally takes three or more years from the time that a design win is 

Financial Performance

PSG Revenue $B

PSG Operating Income $B

$2.0

$1.9

$1.9

2019

2020

2021

$0.3

2019

$0.3

2020

$0.3

2021

Revenue Summary

2021 vs. 2020

Revenue increased $81 million, driven by recovery in the embedded and communications market segments from COVID-19 lows, partially 
offset by customer inventory digestion in the cloud market segment.

2020 vs. 2019

Revenue decreased $134 million, driven by a decline in our communications market segment due to customer transition to 5G ASICs that 
benefited DCG adjacencies, and decline in our embedded market segment. The decline was partially offset by strength in the cloud and 
enterprise market segment.

Operating Income Summary

2021 vs. 2020

Operating income increased $37 million, driven by higher revenue due to recovery in the embedded and communications market 
segments from COVID-19 lows, partially offset by a decrease in the cloud market segment. 

2020 vs. 2019

Operating income decreased $58 million, driven by lower revenue in our embedded and communications market segments, partially offset 
by strength in the cloud and enterprise market segment

35

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36

Consolidated Results of Operations

For additional key highlights of our results of operations, see "A Year in Review."

Revenue

Our total revenue grew from 

Years Ended 
(In Millions, Except Per Share Amounts)

Amount

% of Net
Revenue

Amount

% of Net
Revenue

Amount

% of Net
Revenue

December 25, 2021

December 26, 2020

December 28, 2019

Net revenue

Cost of sales

Gross margin

Research and development

Marketing, general and administrative

Restructuring and other charges

Operating income

Gains (losses) on equity investments, net

Interest and other, net

Income before taxes

Provision for taxes

Net income

Earnings per share—diluted

$ 

79,024 

 100.0 % $ 

77,867 

 100.0 % $ 

71,965 

 100.0 %

35,209 

43,815 

15,190 

6,543 

2,626 

19,456 

2,729 

 44.6 %  

34,255 

 44.0 %  

29,825 

 55.4 %  

43,612 

 56.0 %  

42,140 

 19.2 %  

13,556 

 17.4 %  

13,362 

 8.3 %  

 3.3 %  

6,180 

198 

 7.9 %  

 0.3 %  

6,350 

393 

 41.4 %

 58.6 %

 18.6 %

 8.8 %

 0.5 %

 24.6 %  

23,678 

 30.4 %  

22,035 

 30.6 %

 3.5 %  

1,904 

 2.4 %  

1,539 

(482) 

 (0.6) %  

(504) 

 (0.6) %  

484 

21,703 

1,835 

19,868 

4.86 

$ 

$ 

 27.5 %  

25,078 

 32.2 %  

24,058 

 2.3 %  

4,179 

 5.4 %  

3,010 

 25.1 % $ 

20,899 

 26.8 % $ 

21,048 

$ 

4.94 

$ 

4.71 

 2.1 %

 0.7 %

 33.4 %

 4.2 %

 29.2 %

2.9

$72.0

2019

CCG

2021 vs. 2020

In 2021, revenue was 

revenue decreased

primarily due to 

completing performance.

expect these constraints to continue. 

2020 vs. 2019

In 2020, revenue was 

demand and recovery in desktop demand, partially offset by lower notebook ASPs due to strength in the consumer and education market 

segments. CCG adjacent revenue decreased primarily due to the continued ramp down from the exit of our 5G smartphone modem and 

Home Gateway Platform businesses. IOTG and Mobileye were both up 

from the economic impacts of COVID-19. DCG revenue 

competitive environment, partially offset by higher platform volume from recovery in the enterprise and government market segment. NSG 

We saw impacts from ongoing industry component, substrate, and foundry silicon shortages across a majority of our businesses and we 

cloud service providers increased capacity to serve customer demand. We also saw continued growth in DCG communications service 

providers, partially offset by enterprise and government decline. We saw growth in DCG adjacencies driven by 5G networking deployment 

and saw improved NAND pricing and higher demand in NSG, partially offset by weaker core mix and higher demand in IOTG platform 

products due to COVID-19. Our CCG revenue was 

slightly offset by lower desktop volume and lower notebook ASPs resulting from higher demand for consumer and education PCs, and 

volume decline in LTE modem and connected home following the exit of those businesses. 

MD&A

37

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December 28, 2019

% of Net

Revenue

 100.0 %

 41.4 %

 58.6 %

 18.6 %

 8.8 %

 0.5 %

 30.6 %

 2.1 %

 0.7 %

 33.4 %

 4.2 %

 29.2 %

Revenue

Our total revenue grew from $62.8 billion in 2017 to $79.0 billion in 2021, representing 6% CAGR. 

5-year Revenue Trend 

$70.8

$72.0

$62.8

$77.9

$79.0

2017

2018

2019

2020

2021

Segment Revenue Walk $B

2.6

2.9

(0.8)

0.1

1.0

(0.1)

$72.0

0.2

$77.9

0.5

1.0

0.4

0.1

0.5

$79.0

(0.3)

(1.1)

2019

CCG DCG IOTG MBLY NSG

PSG Other

2020

CCG

DCG IOTG MBLY NSG

PSG Other

2021

2021 vs. 2020

In 2021, revenue was $79.0 billion, up $1.2 billion, or 1%, from 2020. CCG revenue grew 1% due to continued strength in notebook 
demand and recovery in desktop demand, partially offset by lower notebook ASPs due to strength in the consumer and education market 
segments. CCG adjacent revenue decreased primarily due to the continued ramp down from the exit of our 5G smartphone modem and 
Home Gateway Platform businesses. IOTG and Mobileye were both up 33% and 43%, respectively, on higher demand amid recovery 
from the economic impacts of COVID-19. DCG revenue decreased 1% primarily due to lower ASPs driven by product mix and a 
competitive environment, partially offset by higher platform volume from recovery in the enterprise and government market segment. NSG 
revenue decreased primarily driven by lower ASPs due to market softness and pricing pressure. Our "all other" revenue increased 
primarily due to $584 million from a prepaid customer supply agreement settled in Q1 2021 for which we recognized related revenue for 
completing performance.

We saw impacts from ongoing industry component, substrate, and foundry silicon shortages across a majority of our businesses and we 
expect these constraints to continue. 

2020 vs. 2019

In 2020, revenue was $77.9 billion, up $5.9 billion, or 8%, from 2019. Our DCG revenue grew 11% due to increased platform volume as 
cloud service providers increased capacity to serve customer demand. We also saw continued growth in DCG communications service 
providers, partially offset by enterprise and government decline. We saw growth in DCG adjacencies driven by 5G networking deployment 
and saw improved NAND pricing and higher demand in NSG, partially offset by weaker core mix and higher demand in IOTG platform 
products due to COVID-19. Our CCG revenue was up 8% year over year driven by strength in notebook and Wi-Fi sales. That growth was 
slightly offset by lower desktop volume and lower notebook ASPs resulting from higher demand for consumer and education PCs, and 
volume decline in LTE modem and connected home following the exit of those businesses. 

37

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38

Gross Margin

We derived a substantial majority of our overall gross margin dollars from the sale of platform products in the CCG and DCG operating 
segments. Our overall gross margin dollars in 2021 increased by $203 million, or approximately flat compared to 2020, and in 2020 
increased by $1.5 billion, or 3%, compared to 2019. Our gross margin percentage was down as the increase in platform revenue was 
offset by higher period charges and higher unit cost.

Operating Expenses

Total R&D and MG&A expenses for 

for 2021 and 

Gross Margin $B
(Percentages in chart indicate gross margin as a percentage of total revenue)

$42.1

58.6%

$43.6

$43.8

56.0%

55.4%

2019

2020

2021

(In Millions)

$ 

43,815  2021 Gross Margin

1,010  Higher gross margin from platform revenue

680  Higher gross margin from adjacent businesses primarily due to the absence of depreciation expense from NAND 

property, plant and equipment that was held for sale, increased Mobileye volume and higher margins on wireless and 
connectivity

585  Prepaid customer supply agreement settled and recognized to revenue in Q1 2021

75  Lower period charges driven by a decrease in engineering samples and lower reserves taken on non-qualified platform 
products compared to 2020, partially offset by 2020 sell-through of other reserves and other reserves taken in 2021

(1,325)  Higher period charges primarily associated with the ramp up of Intel 4

(515)  Higher period charges primarily associated with the ramp down of 14nm

(235)  Higher platform unit cost primarily from increased mix of 10nm SuperFin products

(72)  Other

$ 

43,612  2020 Gross Margin

2,360  Higher gross margin from platform revenue

1,855  Higher gross margin from adjacent businesses primarily due to higher margins on NAND, modem, and WIFI, partially 

offset by lower margins on DCG adjacencies

630  Lower factory start-up costs associated with our 10nm process technology

155  Lower period charges

(3,285)  Higher platform unit cost primarily from increased mix of 10nm products

(255)  Primarily driven by higher logistic expenses due to COVID-19

12  Other

$ 

42,140  2019 Gross Margin

$13.4

18.6%

2019

R&D spending increased by $1.6 billion, or 12.1%, driven by the following:

Research and Development

2021 vs. 2020

+ Investments in DCG, CCG, and Mobileye

+ Investments in our process technology

+ Incentive-based cash compensation

2020 vs. 2019

R&D spending increased by $194 million, or 1%, driven by the following:

+ Investments in our process technology

+ Investments in CCG and DCG

- Ramp down of 5G smartphone modem business

-

Incentive-based cash compensation

MG&A spending increased by $363 million, or 5.9%, driven by the following:

Marketing, General and Administrative

2021 vs. 2020

+ Increase in corporate spending

+ Incentive-based cash compensation

2020 vs. 2019

- Corporate spending efficiencies

-

Incentive-based cash compensation

MG&A spending decreased by $170 million, or 3%, driven by the following:

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 of our overall gross margin dollars from the sale of platform products in the CCG and DCG operating 

2020 

Total R&D and MG&A expenses for 2021 were $21.7 billion, up 10% compared to 2020. These expenses represented 27.5% of revenue 
for 2021 and 25.3% of revenue for 2020. We continue to invest in R&D to accelerate our growth. 

. Our gross margin percentage was down as the increase in platform revenue was 

Operating Expenses

Research and Development $B

Marketing, General and Administrative $B

(Percentages indicate expenses as a percentage of total revenue)

$13.4

$13.6

$15.2

18.6%

17.4%

19.2%

$6.4

8.8%

$6.2

7.9%

$6.5

8.3%

2019

2020

2021

2019

2020

2021

Research and Development

2021 vs. 2020

R&D spending increased by $1.6 billion, or 12.1%, driven by the following:

+ Investments in DCG, CCG, and Mobileye

+ Investments in our process technology

+ Incentive-based cash compensation

2020 vs. 2019

R&D spending increased by $194 million, or 1%, driven by the following:

+ Investments in our process technology

+ Investments in CCG and DCG

- Ramp down of 5G smartphone modem business

-

Incentive-based cash compensation

Marketing, General and Administrative

2021 vs. 2020

Higher gross margin from adjacent businesses primarily due to the absence of depreciation expense from NAND 

property, plant and equipment that was held for sale, increased Mobileye volume and higher margins on wireless and 

Lower period charges driven by a decrease in engineering samples and lower reserves taken on non-qualified platform 

products compared to 2020, partially offset by 2020 sell-through of other reserves and other reserves taken in 2021

Higher gross margin from adjacent businesses primarily due to higher margins on NAND, modem, and WIFI, partially 

MG&A spending increased by $363 million, or 5.9%, driven by the following:

+ Increase in corporate spending

+ Incentive-based cash compensation

2020 vs. 2019

MG&A spending decreased by $170 million, or 3%, driven by the following:

- Corporate spending efficiencies

-

Incentive-based cash compensation

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40

   
Restructuring and Other Charges

Years Ended (In Millions)

Employee severance and benefit arrangements

Litigation charges and other

Asset impairment charges

Total restructuring and other charges

Dec 25, 2021

Dec 26, 2020

$ 

$ 

48  $ 

2,291 

287 

2,626  $ 

124 

67 

7 

198 

Our effective tax rate 

non-US subsidiaries as well as a higher proportion of our income in non-US jurisdictions. As a result of the restructuring, we established 

deferred tax assets and released the valuation allowances of certain foreign deferred tax assets. The majority of these deferred tax assets 

established in 2021 fully offset the deferred tax liabilities recognized in 2020 driven by a change in our permanent reinvestment assertion 

with respect to undistributed earnings in China, as a result of our planned divestiture of our NAND memory business. 

Our effective tax rate increased in 

respect to undistributed earnings in China, as a result of our planned divestiture of our NAND memory business. It also increased due to 

the reduction in our foreign derived intangible income benefit in 2020.

Liquidity and Capital Resources

We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in the longer term. Cash 

generated by operations, supplemented by our total cash and investments

business requirements. Our short-term requirements include capital expenditures for worldwide manufacturing and assembly and test, 

including investments in our process technology roadmap; working capital requirements; and potential acquisitions, strategic investments, 

and dividends. Our long-term requirements incrementally contemplate additional investments in the significant manufacturing expansion 

plans we announced as part of our IDM 2.0 strategy and additional investments to accelerate our process technology. These plans include 

investment to build two new fabs in Arizona as well as plans for a next phase of capacity expansions in Ohio, Europe, and other global 

locations. Our plans include utilizing a "smart capital" strategy in which we focus first on aggressively building out fab shells, which are the 

smaller portion of the overall cost of a fab but have the longest lead time, giving us flexibility in how and when we bring additional capacity 

and tools online. Additionally, as we have faced industry shortages of substrates and other components, we have increasingly entered into 

long-term agreements with suppliers and foundry service providers, some of which involve prepayments that will help us secure future 

supply. 

As we invest in these expansions and in the acceleration of our process technology roadmap, we expect our capital expenditures to 

increase above historical levels for the next several years. The prepayments for future supply of substrates and other components 

accelerate cash outflows into the near term, and we expect to apply the prepayments to future purchases, resulting in a positive impact on 

We expect our capital expenditures to increase above historical levels for the next several years. As of 

our liquidity in subsequent periods. 

commitments for capital expenditures of 

amount. We also had 

billion committed in the long term.

Litigation charges and other includes a charge of $2.2 billion in the first quarter of 2021 related to the VLSI Technology LLC (VLSI) 
litigation, which is recorded as a corporate charge in the "all other" category presented in "Note 3: Operating Segments" within Notes to 
Consolidated Financial Statements. Refer to "Note 19: Commitments and Contingencies" within Notes to Consolidated Financial 
Statements for further information on legal proceedings related to the VLSI litigation.

Asset impairment charges includes impairments related to the shutdown in the second quarter of 2021 of two of our non-strategic 
businesses, the results of which are included in the "all other" category presented in "Note 3: Operating Segments" within Notes to 
Consolidated Financial Statements. The goodwill related to these businesses was impaired, resulting in a charge of $238 million 
recognized in the second quarter of 2021 in the "all other" category along with other impairment charges related to these businesses.

Gains (Losses) on Equity Investments and Interest and Other, Net

Years Ended (In Millions)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Ongoing mark-to-market adjustments on marketable equity securities

$ 

(130)  $ 

(133)  $ 

Observable price adjustments on non-marketable equity securities 

Impairment charges
Sale of equity investments and other 

Gains (losses) on equity investments, net

Interest and other, net

750 

(154)   

2,263 

2,729  $ 

(482)  $ 

176 

(303)   

2,164 

1,904  $ 

(504)  $ 

$ 

$ 

277 

293 

(122) 

1,091 

1,539 

484 

Gains (Losses) on Equity Investments, Net 

and commitments in 2022 under our binding commitments for purchases of goods and services were 

Ongoing mark-to-market net gains and losses reported during 2021 were primarily driven by Montage Technology, Co. Ltd. (Montage); 
2020 and 2019 net gains and losses were primarily driven by Montage and Cloudera. We sold our interest in Cloudera in 2020. 

In the first quarter of 2021, we recognized $471 million in observable price adjustments in our investment in Beijing Unisoc Technology 
Ltd.

Contingencies

structured as leases, "

We have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other 

purchase obligations and commitments for purchases of goods and services. For example, see "

In sale of equity investments and other, we recognized $447 million of initial fair value adjustments related to four companies that went 
public in 2021; in 2020 we recognized $1.1 billion from Montage becoming marketable and $606 million related to four other equity 
investments that went public. During 2021, we recognized McAfee Corp. (McAfee) dividends of $1.3 billion, which included a special 
dividend of $1.1 billion paid in connection with the sale of McAfee's Enterprise Business to Symphony Technology Group, and recognized 
$228 million related to the partial sale of our investment in McAfee. We recognized McAfee dividends of $126 million in 2020 and 
$632 million in 2019. In November 2021, McAfee announced an agreement to be acquired by an investor group, which is subject to 
closing conditions.

Interest and Other, Net

The net loss in interest and other, net in 2021 was relatively flat compared to 2020.

We recognized a net loss in interest and other, net in 2020 compared to a net gain in 2019, primarily due to lower divestiture gains in 2020 
compared to 2019.

Tax Reform enacted in 2017 for the one-time transition tax on previously untaxed foreign earnings, and "

Consolidated Financial Statements

obligations is estimated based on current information. Timing of payments and actual amounts paid may be different, depending on the 

timing of receipt of goods or services, or changes to agreed-upon amounts for some obligations. In addition, some of our purchasing 

requirements are not current obligations and are therefore not included in the amounts above. For example, some of these requirements 

are not handled through binding contracts or are fulfilled by vendors on a purchase order basis within short time horizons.

We anticipate that we will continue to primarily rely on operating cash flows, supplemented by our total cash and investments

IDM 2.0 and other cash requirements in the ordinary course of business. We also expect to benefit from government incentives under 

pending legislation, and any incentives above our current expectations would enable us to increase the pace and size of our IDM 2.0 

investments. Conversely, incentives below our expectations would increase our anticipated cash requirements. We expect our increased 

capital investments to pressure our free cash flow in the short term. When assessing our current sources of liquidity, we include our total 

Provision for Taxes

Years Ended (Dollars in Millions)
Income before taxes

Provision for taxes

Effective tax rate

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Trading assets

$ 

$ 

21,703 

1,835 

$ 

$ 

25,078 

4,179 

$ 

$ 

24,058 

3,010 

 8.5 %

 16.7 %

 12.5 %

MD&A

41

MD&A

cash and investments

(In Millions)

Cash and cash equivalents

Short-term investments

Other long-term investments

Loans receivable and other

Total cash and investments

Total debt

1  See "Non-GAAP Financial Measures

 
 
 
 
 
 
 
 
 
 
 
Dec 26, 2020

$ 

$ 

124 

67 

7 

198 

Our effective tax rate decreased in 2021 compared to 2020, primarily driven by one-time tax benefits due to the restructuring of certain 
non-US subsidiaries as well as a higher proportion of our income in non-US jurisdictions. As a result of the restructuring, we established 
deferred tax assets and released the valuation allowances of certain foreign deferred tax assets. The majority of these deferred tax assets 
established in 2021 fully offset the deferred tax liabilities recognized in 2020 driven by a change in our permanent reinvestment assertion 
with respect to undistributed earnings in China, as a result of our planned divestiture of our NAND memory business. 

Our effective tax rate increased in 2020 compared to 2019, primarily driven by a change in our permanent reinvestment assertion with 
respect to undistributed earnings in China, as a result of our planned divestiture of our NAND memory business. It also increased due to 
the reduction in our foreign derived intangible income benefit in 2020.

 in the first quarter of 2021 related to the VLSI Technology LLC (VLSI) 

Liquidity and Capital Resources

Asset impairment charges includes impairments related to the shutdown in the second quarter of 2021 of two of our non-strategic 

recognized in the second quarter of 2021 in the "all other" category along with other impairment charges related to these businesses.

Notes to Consolidated Financial 

" within Notes to 

Notes to 

$238 million 

 net gains and losses were primarily driven by Montage and Cloudera. We sold our interest in Cloudera in 2020. 

 were primarily driven by Montage Technology, Co. Ltd. (Montage); 

 in observable price adjustments in our investment in Beijing Unisoc Technology 

 of initial fair value adjustments related to four companies that went 

 paid in connection with the sale of McAfee's Enterprise Business to Symphony Technology Group, and recognized 

, McAfee announced an agreement to be acquired by an investor group, which is subject to 

 related to four other equity 

, which included a special 

 and 

, primarily due to lower divestiture gains in 2020 

Dec 28, 2019

$ 

$ 

$ 

277 

293 

(122) 

1,091 

1,539 

484 

We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in the longer term. Cash 
generated by operations, supplemented by our total cash and investments1, is our primary source of liquidity for funding our strategic 
business requirements. Our short-term requirements include capital expenditures for worldwide manufacturing and assembly and test, 
including investments in our process technology roadmap; working capital requirements; and potential acquisitions, strategic investments, 
and dividends. Our long-term requirements incrementally contemplate additional investments in the significant manufacturing expansion 
plans we announced as part of our IDM 2.0 strategy and additional investments to accelerate our process technology. These plans include 
investment to build two new fabs in Arizona as well as plans for a next phase of capacity expansions in Ohio, Europe, and other global 
locations. Our plans include utilizing a "smart capital" strategy in which we focus first on aggressively building out fab shells, which are the 
smaller portion of the overall cost of a fab but have the longest lead time, giving us flexibility in how and when we bring additional capacity 
and tools online. Additionally, as we have faced industry shortages of substrates and other components, we have increasingly entered into 
long-term agreements with suppliers and foundry service providers, some of which involve prepayments that will help us secure future 
supply. 

As we invest in these expansions and in the acceleration of our process technology roadmap, we expect our capital expenditures to 
increase above historical levels for the next several years. The prepayments for future supply of substrates and other components 
accelerate cash outflows into the near term, and we expect to apply the prepayments to future purchases, resulting in a positive impact on 
our liquidity in subsequent periods. 

We expect our capital expenditures to increase above historical levels for the next several years. As of December 25, 2021 we had 
commitments for capital expenditures of $22.3 billion for 2022, and we expect our total capital expenditures for 2022 to be above that 
amount. We also had $4.6 billion in capital expenditures committed in the long term. As of December 25, 2021, other purchase obligations 
and commitments in 2022 under our binding commitments for purchases of goods and services were $3.1 billion with an additional $9.3 
billion committed in the long term.

We have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other 
purchase obligations and commitments for purchases of goods and services. For example, see "Note 19: Commitments and 
Contingencies" within Consolidated Financial Statements for information about our lease obligations, which include supply agreements 
structured as leases, "Note 8: Income Taxes" within Consolidated Financial Statements for information about our tax obligations related to 
Tax Reform enacted in 2017 for the one-time transition tax on previously untaxed foreign earnings, and "Note 13: Borrowings" within 
Consolidated Financial Statements for information about our long-term debt obligations. The expected timing of payments of our 
obligations is estimated based on current information. Timing of payments and actual amounts paid may be different, depending on the 
timing of receipt of goods or services, or changes to agreed-upon amounts for some obligations. In addition, some of our purchasing 
requirements are not current obligations and are therefore not included in the amounts above. For example, some of these requirements 
are not handled through binding contracts or are fulfilled by vendors on a purchase order basis within short time horizons.

We anticipate that we will continue to primarily rely on operating cash flows, supplemented by our total cash and investments1, to fund 
IDM 2.0 and other cash requirements in the ordinary course of business. We also expect to benefit from government incentives under 
pending legislation, and any incentives above our current expectations would enable us to increase the pace and size of our IDM 2.0 
investments. Conversely, incentives below our expectations would increase our anticipated cash requirements. We expect our increased 
capital investments to pressure our free cash flow in the short term. When assessing our current sources of liquidity, we include our total 
cash and investments1 as shown in the following table: 

Dec 28, 2019

$ 

$ 

24,058 

3,010 

 12.5 %

(In Millions)

Cash and cash equivalents

Short-term investments

Trading assets

Other long-term investments

Loans receivable and other
Total cash and investments1
Total debt

1  See "Non-GAAP Financial Measures" within MD&A.

41

MD&A

Dec 25, 2021

Dec 26, 2020

$ 

4,827  $ 

2,103 

21,483 

840 

240 

$ 

$ 

29,493  $ 

38,101  $ 

5,865 

2,292 

15,738 

2,192 

947 

27,034 

36,401 

42

 
 
 
 
 
 
 
 
 
 
 
Other potential sources of liquidity include our commercial paper program and our automatic shelf registration statement on file with the 
SEC, pursuant to which we may offer an unspecified amount of debt, equity, and other securities. Under our commercial paper program, 
we have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion. During 2021, we issued a total of $5.0 billion 
aggregate principal amount of senior notes, and entered into a $5.0 billion variable-rate revolving credit facility that matures in March 
2026. We repaid $500 million of our 1.70% senior notes that matured in May 2021 and $2.0 billion of our 3.30% senior notes that matured 
in October 2021. As of December 25, 2021, we had no outstanding commercial paper or borrowing on the revolving credit facility.

We maintain a diverse investment portfolio that we continually analyze based on issuer, industry, and country. Substantially all of our 
investments in debt instruments are in investment-grade securities.

In summary, our cash flows for each period were as follows:

Years Ended (In Millions)

Net cash provided by operating activities

Net cash used for investing activities

Net cash provided by (used for) financing activities

Net increase (decrease) in cash and cash equivalents

In the first quarter of 2021, we repurchased the remaining $2.4 billion in shares of our planned $20.0 billion share repurchases announced 
in October 2019. We expect our future stock repurchases to be significantly below our levels from the last few years. 

Sources and Uses of Cash
(In Millions)

working capital contributions and cash paid to settle a prepaid customer supply agreement in Q1 2021, partially offset by a McAfee special 

Operating Activities

Cash provided by

For 2021 compared to 

dividend received in Q3 2021.

For 2020 compared to 

Investing Activities

2019). 

The increase

The increase

Financing Activities

The decrease

issuances.

During 2021

billion in 2020

each of the past 

The decrease

capital. Changes in working capital were driven by accounts receivable, inventory, and income taxes, offset by other assets and liabilities.

Investing cash flows consist primarily of capital expenditures, investment purchases, sales, maturities, and disposals, and proceeds from 

divestitures and cash used for acquisitions. Our capital expenditures were 

partially offset by a decrease in purchases of available-for-sale debt investments.

for-sale debt investments and trading assets, offset by an increase in maturities and sales of available-for-sale debt investments and 

trading assets, and a decrease in capital expenditures and cash paid for acquisitions.

Financing cash flows consist primarily of payment of dividends to stockholders, issuance and repayment of short-term and long-term debt, 

repurchases of common stock, and proceeds from the sale of shares of common stock through employee equity incentive plans.

stock and a decrease in repayments of debt and debt conversions, partially offset by a decrease in cash provided by long-term debt 

term debt issuances, offset by an increase in repayments of debt and debt conversions and an increase in repurchases of common stock.

Critical Accounting Estimates

The methods, assumptions, and estimates that we use in applying our accounting policies may require us to apply judgments regarding 

matters that are inherently uncertain. We consider an accounting policy to be a critical estimate if: (1) we must make assumptions that 

were uncertain when the judgment was made, and (2) changes in the estimate assumptions, or selection of a different estimate 

methodology, could have a significant impact on our financial position and the results that we report in our 

Statements. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available 

when the estimate was made.

MD&A

43

MD&A

Other potential sources of liquidity include our commercial paper program and our automatic shelf registration statement on file with the 

In summary, our cash flows for each period were as follows:

SEC, pursuant to which we may offer an unspecified amount of debt, equity, and other securities. Under our commercial paper program, 

, we had no outstanding commercial paper or borrowing on the revolving credit facility.

$5.0 billion 

March 

 senior notes that matured 

Years Ended (In Millions)

Net cash provided by operating activities

Net cash used for investing activities

Net cash provided by (used for) financing activities

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

29,991  $ 

35,384  $ 

33,145 

(25,167)   

(5,862)   

(20,796)   

(12,917)   

(14,405) 

(17,565) 

 of our 

Net increase (decrease) in cash and cash equivalents

$ 

(1,038)  $ 

1,671  $ 

1,175 

 in shares of our planned $20.0 billion share repurchases announced 

Operating Activities

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities.

For 2021 compared to 2020, the $5.4 billion decrease in cash provided by operating activities was primarily driven by a decrease in net 
working capital contributions and cash paid to settle a prepaid customer supply agreement in Q1 2021, partially offset by a McAfee special 
dividend received in Q3 2021.

For 2020 compared to 2019, the $2.2 billion increase in cash provided by operating activities was primarily due to changes in working 
capital. Changes in working capital were driven by accounts receivable, inventory, and income taxes, offset by other assets and liabilities.

Investing Activities

Investing cash flows consist primarily of capital expenditures, investment purchases, sales, maturities, and disposals, and proceeds from 
divestitures and cash used for acquisitions. Our capital expenditures were $18.7 billion in 2021 ($14.3 billion in 2020 and $16.2 billion in 
2019). 

The increase in cash used for investing activities in 2021 compared to 2020 was primarily due to an increase in capital expenditures, 
partially offset by a decrease in purchases of available-for-sale debt investments.

The increase in cash used for investing activities in 2020 compared to 2019 was primarily due to an increase in purchases of available-
for-sale debt investments and trading assets, offset by an increase in maturities and sales of available-for-sale debt investments and 
trading assets, and a decrease in capital expenditures and cash paid for acquisitions.

Financing Activities

Financing cash flows consist primarily of payment of dividends to stockholders, issuance and repayment of short-term and long-term debt, 
repurchases of common stock, and proceeds from the sale of shares of common stock through employee equity incentive plans.

The decrease in cash used for financing activities in 2021 compared to 2020 was primarily due to a decrease in repurchases of common 
stock and a decrease in repayments of debt and debt conversions, partially offset by a decrease in cash provided by long-term debt 
issuances.

During 2021, we repurchased $2.4 billion of common stock under our authorized common stock repurchase program, compared to $14.2 
billion in 2020. Our total dividend payments were $5.6 billion in 2021 compared to $5.6 billion in 2020. We have paid a cash dividend in 
each of the past 117 quarters. 

The decrease in cash used for financing activities in 2020 compared to 2019 was primarily due to an increase in cash provided by long-
term debt issuances, offset by an increase in repayments of debt and debt conversions and an increase in repurchases of common stock.

Critical Accounting Estimates

The methods, assumptions, and estimates that we use in applying our accounting policies may require us to apply judgments regarding 
matters that are inherently uncertain. We consider an accounting policy to be a critical estimate if: (1) we must make assumptions that 
were uncertain when the judgment was made, and (2) changes in the estimate assumptions, or selection of a different estimate 
methodology, could have a significant impact on our financial position and the results that we report in our Consolidated Financial 
Statements. While we believe that our estimates, assumptions, and judgments are reasonable, they are based on information available 
when the estimate was made.

43

MD&A

44

 
 
Non-GAAP 

adjustment or 

measure

Restructuring and 

other charges

(Gains) losses 

from divestiture

Ongoing mark-to-

market on 

marketable equity 

securities

Free cash flow

Total cash and 

investments

Refer to "Note 2: Accounting Policies" within the Consolidated Financial Statements for further information on our critical accounting 
estimates and policies, which are as follows:

▪

▪

▪

▪

Inventories—the transition of manufacturing costs to inventory, excluding factory excess capacity costs. Inventory reflected at the 
lower of cost or net realizable value considering future demand and market conditions; 

Long-lived assets—the valuation methods and assumptions used in assessing the impairment of property, plant and equipment, 
identified intangibles, and goodwill, including the determination of asset groupings and the identification and allocation of goodwill to 
reporting units;

Non-marketable equity investments—the valuation estimates and assessment of impairment and observable price adjustments; and

Loss contingencies—the estimation of when a loss is probable and reasonably estimable.

Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with US GAAP, this document contains references to the non-GAAP financial 
measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our 
operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of 
business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and 
measuring our performance. Certain of these non-GAAP financial measures are used in our performance-based RSUs and our annual 
cash bonus plan.

Long-term gross margin outlook range is provided on a non-GAAP basis and excludes the impact of amortization of acquisition-related 
intangible assets and share-based compensation expense. We are unable to provide a full reconciliation of this measure to the 
corresponding GAAP measure without unreasonable efforts, as the amount and timing of such adjustments on a long-term basis are 
subject to considerable uncertainty. We believe such a reconciliation would also imply a degree of precision that is inappropriate for this 
forward-looking measure. 

Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related income tax 
effects where applicable. Income tax effects have been calculated using an appropriate tax rate for each adjustment. These non-GAAP 
financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, 
and the financial results calculated in accordance with US GAAP and reconciliations from these results should be carefully evaluated.

Non-GAAP 
adjustment or 
measure

NAND memory 
business

Definition 
Our NAND memory business is subject to a pending sale 
to SK hynix, as announced in October 2020. While the 
second closing of the sale is still pending, we completed 
the first closing on December 29, 2021, subsequent to 
our fiscal 2021 year-end. We will fully deconsolidate our 
ongoing interests in the NAND OpCo Business in the first 
quarter of 2022. 

Acquisition-related 
adjustments

Amortization of acquisition-related intangible assets 
consists of amortization of intangible assets such as 
developed technology, brands, and customer 
relationships acquired in connection with business 
combinations. Charges related to the amortization of 
these intangibles are recorded within both cost of sales 
and MG&A in our US GAAP financial statements. 
Amortization charges are recorded over the estimated 
useful life of the related acquired intangible asset, and 
thus are generally recorded over multiple years.

Usefulness to management and investors
We exclude the impact of our NAND memory business in 
certain non-GAAP measures. While the second closing 
of the sale is still pending and subject to closing 
conditions, management does not currently view the 
business as part of the company’s core operations or its 
long-term strategic direction. We believe these 
adjustments provide investors with a useful view, through 
the eyes of management, of the company’s core 
business model and how management currently 
evaluates core operational performance. We believe they 
also provide investors with an additional means to 
understand the potential impact of the divestiture over 
time. In making these adjustments, we have not made 
any changes to our methods for measuring and 
calculating revenue or other financial statement amounts.

We exclude amortization charges for our acquisition-
related intangible assets for purposes of calculating 
certain non-GAAP measures because these charges are 
inconsistent in size and are significantly impacted by the 
timing and valuation of our acquisitions. These 
adjustments facilitate a useful evaluation of our current 
operating performance and comparison to our past 
operating performance and provide investors with 
additional means to evaluate cost and expense trends.

MD&A

45

MD&A

 for further information on our critical accounting 

—the transition of manufacturing costs to inventory, excluding factory excess capacity costs. Inventory reflected at the 

—the valuation methods and assumptions used in assessing the impairment of property, plant and equipment, 

identified intangibles, and goodwill, including the determination of asset groupings and the identification and allocation of goodwill to 

—the valuation estimates and assessment of impairment and observable price adjustments; and

In addition to disclosing financial results in accordance with US GAAP, this document contains references to the non-GAAP financial 

measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our 

operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of 

business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and 

measuring our performance. Certain of these non-GAAP financial measures are used in our performance-based RSUs and our annual 

Long-term gross margin outlook range is provided on a non-GAAP basis and excludes the impact of amortization of acquisition-related 

intangible assets and share-based compensation expense. We are unable to provide a full reconciliation of this measure to the 

corresponding GAAP measure without unreasonable efforts, as the amount and timing of such adjustments on a long-term basis are 

subject to considerable uncertainty. We believe such a reconciliation would also imply a degree of precision that is inappropriate for this 

Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related income tax 

effects where applicable. Income tax effects have been calculated using an appropriate tax rate for each adjustment. These non-GAAP 

financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, 

and the financial results calculated in accordance with US GAAP and reconciliations from these results should be carefully evaluated.

Non-GAAP 
adjustment or 
measure
Restructuring and 
other charges

Definition 
Restructuring charges are costs associated with a formal 
restructuring plan and are primarily related to employee 
severance and benefit arrangements. Other charges 
include a charge related to the VLSI litigation, goodwill 
and asset impairments, pension charges, and costs 
associated with restructuring activity.

(Gains) losses 
from divestiture

Gains or losses are recognized in connection with a 
divestiture.

Ongoing mark-to-
market on 
marketable equity 
securities

After the initial mark-to-market adjustment is recorded 
upon a security becoming marketable, gains and losses 
are recognized from ongoing mark-to-market 
adjustments of our marketable equity securities. 

Free cash flow

We reference a non-GAAP financial measure of free 
cash flow, which is used by management when 
assessing our sources of liquidity, capital resources, and 
quality of earnings. Free cash flow is operating cash flow 
adjusted to exclude additions to property, plant and 
equipment.

Total cash and 
investments

Total cash and investments is used by management 
when assessing our sources of liquidity, which includes 
cash and cash equivalents, short-term investments, 
trading assets, other long-term investments, and loans 
receivable and other.

Usefulness to management and investors

We exclude restructuring and other charges, including 
any adjustments to charges recorded in prior periods, for 
purposes of calculating certain non-GAAP measures 
because these costs do not reflect our core operating 
performance. These adjustments facilitate a useful 
evaluation of our core operating performance and 
comparisons to past operating results and provide 
investors with additional means to evaluate expense 
trends.
We exclude gains or losses resulting from divestitures for 
purposes of calculating certain non-GAAP measures 
because they do not reflect our current operating 
performance. These adjustments facilitate a useful 
evaluation of our current operating performance and 
comparisons to past operating results.

We exclude these ongoing gains and losses for purposes 
of calculating certain non-GAAP measures because we 
do not believe this volatility correlates to our core 
operational performance. These adjustments facilitate a 
useful evaluation of our current operating performance 
and comparisons to past operating results. 
This non-GAAP financial measure is helpful in 
understanding our capital requirements and provides an 
additional means to evaluate the cash flow trends of our 
business. We exclude additions to held for sale NAND 
property, plant and equipment because the additions are 
not representative of our long-term capital requirements 
and these assets were sold upon the first closing of the 
transaction that occurred on December 29, 2021, 
subsequent to our fiscal 2021 year-end. 
This non-GAAP measure is helpful in understanding our 
capital resources and liquidity position.

Usefulness to management and investors

We exclude the impact of our NAND memory business in 

certain non-GAAP measures. While the second closing 

of the sale is still pending and subject to closing 

conditions, management does not currently view the 

business as part of the company’s core operations or its 

long-term strategic direction. We believe these 

adjustments provide investors with a useful view, through 

the eyes of management, of the company’s core 

business model and how management currently 

evaluates core operational performance. We believe they 

also provide investors with an additional means to 

understand the potential impact of the divestiture over 

time. In making these adjustments, we have not made 

any changes to our methods for measuring and 

calculating revenue or other financial statement amounts.

We exclude amortization charges for our acquisition-

related intangible assets for purposes of calculating 

certain non-GAAP measures because these charges are 

inconsistent in size and are significantly impacted by the 

timing and valuation of our acquisitions. These 

adjustments facilitate a useful evaluation of our current 

operating performance and comparison to our past 

operating performance and provide investors with 

additional means to evaluate cost and expense trends.

45

MD&A

46

Following are the reconciliations of our most comparable US GAAP measures to our non-GAAP measures presented:

Years Ended (In Millions, Except Per Share Amounts)

Net revenue

NAND memory business

Non-GAAP net revenue

Operating income

Acquisition-related adjustments

Restructuring and other charges

NAND memory business

Non-GAAP operating income

Operating margin

Acquisition-related adjustments

Restructuring and other charges

NAND memory business

Non-GAAP operating margin

Earnings per share—diluted

Acquisition-related adjustments

Restructuring and other charges

(Gains) losses from divestiture

Ongoing mark-to-market on marketable equity securities 

NAND memory business

Income tax effects

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

79,024 

$ 

77,867 

$ 

71,965 

$ 

$ 

$ 

$ 

(4,306) 

74,718 

19,456 

1,492 

2,626 

(1,369) 

(4,967) 

72,900 

23,678 

1,416 

198 

(937) 

$ 

$ 

(4,059) 

67,906 

22,035 

1,324 

393 

600 

$ 

22,205 

$ 

24,355 

$ 

24,352 

$ 

 24.6 %

 1.9 %

 3.3 %

 (0.1) %

 29.7 %

4.86 

0.36 

0.65 

— 

0.03 

(0.33) 

(0.10) 

$ 

 30.4 %

 1.8 %

 0.3 %

 0.9 %

 33.4 %

4.94 

0.33 

0.05 

— 

0.03 

(0.22) 

(0.03) 

$ 

 30.6 %

 1.8 %

 0.5 %

 2.9 %

 35.9 %

4.71 

0.29 

0.09 

(0.16) 

(0.06) 

0.13 

(0.03) 

4.97 

Non-GAAP earnings per share—diluted

$ 

5.47 

$ 

5.10 

$ 

Years Ended (In Millions)
Net cash provided by operating activities
Additions to property, plant and equipment
Free cash flow

Net cash used for investing activities
Net cash provided by (used for) financing 
activities

$ 

$ 

$ 

Dec 25, 2021
$ 

29,991  $ 
(18,733)   
11,258  $ 

Dec 26, 2020

Dec 28, 2019

Dec 29, 2018

35,384  $ 
(14,259)   
21,125  $ 

33,145  $ 
(16,213)   
16,932  $ 

29,432  $ 
(15,181)   
14,251  $ 

Dec 30, 2017
22,110 
(11,778) 
10,332 

(25,167)  $ 

(20,796)  $ 

(14,405)  $ 

(11,239)  $ 

(15,762) 

(5,862)  $ 

(12,917)  $ 

(17,565)  $ 

(18,607)  $ 

(8,475) 

MD&A

47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Key Information

Sales and Marketing

Customers

We sell our products primarily to OEMs, ODMs, and cloud service providers. ODMs provide design and manufacturing services to 
branded and unbranded private-label resellers. In addition, our customers include other manufacturers and service providers, such as 
industrial and communication equipment manufacturers and other cloud service providers, who buy our products through distributor, 
reseller, retail, and OEM channels throughout the world. For more information about our customers, including customers who accounted 
for greater than 10% of our net consolidated revenue, see "Note 3: Operating Segments" within the Consolidated Financial Statements.

Our worldwide reseller sales channel consists of thousands of indirect customers; systems builders that purchase Intel processors and 
other products from our distributors. We have incentive programs that allow distributors to sell our microprocessors and other products in 
small quantities to systems integrators. Our microprocessors and other products are also available in direct retail outlets.

Sales Arrangements

Our products are sold through distribution channels throughout the world. Sales of our products are frequently made via purchase order 
acknowledgments that contain standard terms and conditions covering matters such as pricing, payment terms, and warranties, as well as 
indemnities for issues specific to our products, such as patent and copyright indemnities. Because our customers generally order from us 
on a purchase order basis, they can typically cancel, change, or delay product purchase commitments with little or no notice to us and 
without penalty. From time to time, we may enter into additional agreements with customers covering, for example, changes from our 
standard terms and conditions, new product development and marketing, and private-label branding. Our sales are routinely made using 
electronic and web-based processes that allow the customer to review inventory availability and track the progress of specific goods 
ordered. Pricing on particular products may vary based on volumes ordered and other factors. We also offer discounts, rebates, and other 
incentives to customers to increase acceptance of our products and technology.

In accordance with contract terms, revenue for product sales is recognized at the time of product shipment from our facilities or delivery to 
the customer location, as determined by the agreed upon shipping terms.  Our standard terms and conditions of sale typically provide that 
payment is due at a later date, usually 30 days after shipment or delivery. We assess credit risk through quantitative and qualitative 
analysis. From this analysis, we establish shipping and credit limits, and determine whether we will seek to use one or more credit support 
protection devices, such as obtaining a parent guarantee, standby letter of credit, or credit insurance. Credit losses may still be incurred 
due to bankruptcy, fraud, or other failure of the customer to pay. 

Our sales to distributors are typically made under agreements allowing for price protection on unsold merchandise and a right of return on 
stipulated quantities of unsold merchandise. Under the price protection program, we give distributors credits for the difference between 
the original price paid and the current price that we offer. Our products typically have no contractual limit on the amount of price 
protection, nor is there a limit on the time horizon under which price protection is granted. The right of return granted generally consists of 
a stock rotation program in which distributors can exchange certain products based on the number of qualified purchases made by the 
distributor. 

Distribution

Distributors typically handle a wide variety of products, including those that compete with our products, and fill orders for many customers. 
Customers may place orders directly with us or through distributors. We have several distribution warehouses that are located in proximity 
to key customers.

Seasonal Trends

Historically, our net revenue has typically been higher in the second half of the year than in the first half of the year, accelerating in the 
third quarter and peaking in the fourth quarter. In 2021, continued strong COVID-driven notebook demand in the first half of the year 
contributed to a flatter trend than we historically observe. 

Marketing

Our global marketing objectives are to build a strong, well-known, differentiated, and meaningful Intel corporate brand that drives 
preference with businesses and consumers, and to offer a limited number of meaningful and valuable brands in our portfolio to aid 
businesses and consumers in making informed choices about technology purchases. The Intel Core processor family and the Intel Atom, 
Celeron®, Pentium®, and Intel Xeon trademarks make up our key CPU brands. This year, we introduced the Intel Arc brand for our 
upcoming high-performance graphics products.

outstanding as of December 26, 2020). 

Equity Prices

or eliminate through hedging activities. 

Other Key Information

48

Other Key Information

51

We promote brand awareness and preference, and generate demand through our own direct marketing, as well as through co-marketing 

programs. Our direct marketing activities primarily include advertising through digital and social media and television, as well as consumer 

and trade events, industry and consumer communications, and press relations. We market to consumer and business audiences and 

focus on building awareness and generating demand for our products. Our key messaging focuses on increased performance, improved 

energy efficiency, and other capabilities such as connectivity.

Certain customers participate in cooperative advertising and marketing programs. These cooperative advertising and marketing programs 

broaden the reach of our brands beyond the scope of our own direct marketing. Certain customers are licensed to place Intel® logos on 

computing devices containing our microprocessors and processor technologies, and to use our brands in their marketing activities. The 

program partially reimburses customers for marketing activities for products featuring Intel brands, subject to customers meeting defined 

criteria. These marketing activities primarily include advertising through digital and social media and television, as well as press relations. 

We have also entered into joint marketing arrangements with certain customers.

Quantitative and Qualitative Disclosures About Market Risk

We are affected by changes in currency exchange and interest rates, as well as equity and commodity prices. Our risk management 

programs are designed to reduce, but may not eliminate, the impacts of these risks. All of the following potential changes are based on 

sensitivity analyses performed on our financial positions as of December 25, 2021 and December 26, 2020. Actual results may differ 

materially. 

Currency Exchange Rates

We are exposed to currency exchange risks of non-US-dollar-denominated investments in debt and equity instruments and loans 

receivable, and may economically hedge this risk with foreign currency contracts, such as currency forward contracts or currency interest 

rate swaps. Gains or losses on these non-US-currency investments are generally offset by corresponding losses or gains on the related 

hedging instruments. We are exposed to currency exchange risks from our non-US-dollar-denominated debt indebtedness and may use 

foreign currency contracts designated as cash flow hedges to manage this risk.

Substantially all of our revenue is transacted in US dollars. However, a significant portion of our operating expenditures and capital 

purchases are incurred in other currencies, primarily the European Union euro, the Israeli shekel, the Malaysian ringgit, the Japanese yen, 

and the Chinese yuan. We have established currency risk management programs to protect against currency exchange rate risks 

associated with non-US dollar forecasted future cash flows and existing non-US dollar monetary assets and liabilities. We may also hedge 

currency risk arising from funding of foreign currency-denominated future investments. We may utilize foreign currency contracts, such as 

currency forwards or option contracts in these hedging programs. We considered the historical trends in currency exchange rates and 

determined that it was reasonably possible that a weighted average adverse change of 10% in currency exchange rates could be 

experienced in the near term. Such an adverse change, after taking into account balance sheet hedges only and offsetting recorded 

monetary asset and liability positions outstanding as of December 25, 2021 and December 26, 2020, would result in an adverse impact on 

income before taxes of less than $38 million and less than $61 million, respectively.

Interest Rates

We are exposed to interest rate risk related to our fixed-rate investment portfolio and outstanding debt. The primary objective of our 

investment policy is to preserve principal and provide financial flexibility to fund our business while maximizing yields, which generally 

track the US dollar three-month LIBOR. We generally enter into interest rate contracts to convert the returns on our fixed-rate debt 

investment with remaining maturities longer than six months into US dollar three-month LIBOR-based returns. We also enter into swaps to 

convert fixed-rate coupon payments into floating-rate coupon payments for our existing indebtedness. Gains or losses on these 

instruments are generally offset by corresponding losses or gains on the related hedging instruments.

A hypothetical increase in benchmark interest rates of 1%, after taking into account investment hedges, would have resulted in a decrease 

in the fair value of our investment portfolio of approximately $68 million as of December 25, 2021 (a hypothetical decrease of 1% would 

have resulted in an increase in the fair value of our investment portfolio of approximately $75 million as of December 26, 2020).

Taking into account floating-rate debt and fixed-rate debt that is swapped to floating-rate debt, a hypothetical increase in interest rates of 

1% would result in an increase in annual interest expense of approximately $132 million from debt outstanding as of December 25, 2021 

(a hypothetical increase of 1% would have resulted in an increase in annual interest expense of approximately $132 million from debt 

We are exposed to equity market risk through our investments in marketable equity securities, which we typically do not attempt to reduce 

Other Key Information

Sales and Marketing

Customers

We sell our products primarily to OEMs, ODMs, and cloud service providers. ODMs provide design and manufacturing services to 

branded and unbranded private-label resellers. In addition, our customers include other manufacturers and service providers, such as 

industrial and communication equipment manufacturers and other cloud service providers, who buy our products through distributor, 

reseller, retail, and OEM channels throughout the world. For more information about our customers, including customers who accounted 

for greater than 10% of our net consolidated revenue, see "Note 3: Operating Segments" within the Consolidated Financial Statements.

Our worldwide reseller sales channel consists of thousands of indirect customers; systems builders that purchase Intel processors and 

other products from our distributors. We have incentive programs that allow distributors to sell our microprocessors and other products in 

small quantities to systems integrators. Our microprocessors and other products are also available in direct retail outlets.

Sales Arrangements

Our products are sold through distribution channels throughout the world. Sales of our products are frequently made via purchase order 

acknowledgments that contain standard terms and conditions covering matters such as pricing, payment terms, and warranties, as well as 

indemnities for issues specific to our products, such as patent and copyright indemnities. Because our customers generally order from us 

on a purchase order basis, they can typically cancel, change, or delay product purchase commitments with little or no notice to us and 

without penalty. From time to time, we may enter into additional agreements with customers covering, for example, changes from our 

standard terms and conditions, new product development and marketing, and private-label branding. Our sales are routinely made using 

electronic and web-based processes that allow the customer to review inventory availability and track the progress of specific goods 

ordered. Pricing on particular products may vary based on volumes ordered and other factors. We also offer discounts, rebates, and other 

incentives to customers to increase acceptance of our products and technology.

In accordance with contract terms, revenue for product sales is recognized at the time of product shipment from our facilities or delivery to 

the customer location, as determined by the agreed upon shipping terms.  Our standard terms and conditions of sale typically provide that 

payment is due at a later date, usually 30 days after shipment or delivery. We assess credit risk through quantitative and qualitative 

analysis. From this analysis, we establish shipping and credit limits, and determine whether we will seek to use one or more credit support 

protection devices, such as obtaining a parent guarantee, standby letter of credit, or credit insurance. Credit losses may still be incurred 

due to bankruptcy, fraud, or other failure of the customer to pay. 

Our sales to distributors are typically made under agreements allowing for price protection on unsold merchandise and a right of return on 

stipulated quantities of unsold merchandise. Under the price protection program, we give distributors credits for the difference between 

the original price paid and the current price that we offer. Our products typically have no contractual limit on the amount of price 

protection, nor is there a limit on the time horizon under which price protection is granted. The right of return granted generally consists of 

a stock rotation program in which distributors can exchange certain products based on the number of qualified purchases made by the 

Distributors typically handle a wide variety of products, including those that compete with our products, and fill orders for many customers. 

Customers may place orders directly with us or through distributors. We have several distribution warehouses that are located in proximity 

Historically, our net revenue has typically been higher in the second half of the year than in the first half of the year, accelerating in the 

third quarter and peaking in the fourth quarter. In 2021, continued strong COVID-driven notebook demand in the first half of the year 

contributed to a flatter trend than we historically observe. 

Our global marketing objectives are to build a strong, well-known, differentiated, and meaningful Intel corporate brand that drives 

preference with businesses and consumers, and to offer a limited number of meaningful and valuable brands in our portfolio to aid 

businesses and consumers in making informed choices about technology purchases. The Intel Core processor family and the Intel Atom, 

Celeron®, Pentium®, and Intel Xeon trademarks make up our key CPU brands. This year, we introduced the Intel Arc brand for our 

upcoming high-performance graphics products.

distributor. 

Distribution

to key customers.

Seasonal Trends

Marketing

We promote brand awareness and preference, and generate demand through our own direct marketing, as well as through co-marketing 
programs. Our direct marketing activities primarily include advertising through digital and social media and television, as well as consumer 
and trade events, industry and consumer communications, and press relations. We market to consumer and business audiences and 
focus on building awareness and generating demand for our products. Our key messaging focuses on increased performance, improved 
energy efficiency, and other capabilities such as connectivity.

Certain customers participate in cooperative advertising and marketing programs. These cooperative advertising and marketing programs 
broaden the reach of our brands beyond the scope of our own direct marketing. Certain customers are licensed to place Intel® logos on 
computing devices containing our microprocessors and processor technologies, and to use our brands in their marketing activities. The 
program partially reimburses customers for marketing activities for products featuring Intel brands, subject to customers meeting defined 
criteria. These marketing activities primarily include advertising through digital and social media and television, as well as press relations. 
We have also entered into joint marketing arrangements with certain customers.

Quantitative and Qualitative Disclosures About Market Risk

We are affected by changes in currency exchange and interest rates, as well as equity and commodity prices. Our risk management 
programs are designed to reduce, but may not eliminate, the impacts of these risks. All of the following potential changes are based on 
sensitivity analyses performed on our financial positions as of December 25, 2021 and December 26, 2020. Actual results may differ 
materially. 

Currency Exchange Rates

We are exposed to currency exchange risks of non-US-dollar-denominated investments in debt and equity instruments and loans 
receivable, and may economically hedge this risk with foreign currency contracts, such as currency forward contracts or currency interest 
rate swaps. Gains or losses on these non-US-currency investments are generally offset by corresponding losses or gains on the related 
hedging instruments. We are exposed to currency exchange risks from our non-US-dollar-denominated debt indebtedness and may use 
foreign currency contracts designated as cash flow hedges to manage this risk.

Substantially all of our revenue is transacted in US dollars. However, a significant portion of our operating expenditures and capital 
purchases are incurred in other currencies, primarily the European Union euro, the Israeli shekel, the Malaysian ringgit, the Japanese yen, 
and the Chinese yuan. We have established currency risk management programs to protect against currency exchange rate risks 
associated with non-US dollar forecasted future cash flows and existing non-US dollar monetary assets and liabilities. We may also hedge 
currency risk arising from funding of foreign currency-denominated future investments. We may utilize foreign currency contracts, such as 
currency forwards or option contracts in these hedging programs. We considered the historical trends in currency exchange rates and 
determined that it was reasonably possible that a weighted average adverse change of 10% in currency exchange rates could be 
experienced in the near term. Such an adverse change, after taking into account balance sheet hedges only and offsetting recorded 
monetary asset and liability positions outstanding as of December 25, 2021 and December 26, 2020, would result in an adverse impact on 
income before taxes of less than $38 million and less than $61 million, respectively.

Interest Rates

We are exposed to interest rate risk related to our fixed-rate investment portfolio and outstanding debt. The primary objective of our 
investment policy is to preserve principal and provide financial flexibility to fund our business while maximizing yields, which generally 
track the US dollar three-month LIBOR. We generally enter into interest rate contracts to convert the returns on our fixed-rate debt 
investment with remaining maturities longer than six months into US dollar three-month LIBOR-based returns. We also enter into swaps to 
convert fixed-rate coupon payments into floating-rate coupon payments for our existing indebtedness. Gains or losses on these 
instruments are generally offset by corresponding losses or gains on the related hedging instruments.

A hypothetical increase in benchmark interest rates of 1%, after taking into account investment hedges, would have resulted in a decrease 
in the fair value of our investment portfolio of approximately $68 million as of December 25, 2021 (a hypothetical decrease of 1% would 
have resulted in an increase in the fair value of our investment portfolio of approximately $75 million as of December 26, 2020).

Taking into account floating-rate debt and fixed-rate debt that is swapped to floating-rate debt, a hypothetical increase in interest rates of 
1% would result in an increase in annual interest expense of approximately $132 million from debt outstanding as of December 25, 2021 
(a hypothetical increase of 1% would have resulted in an increase in annual interest expense of approximately $132 million from debt 
outstanding as of December 26, 2020). 

Equity Prices

We are exposed to equity market risk through our investments in marketable equity securities, which we typically do not attempt to reduce 
or eliminate through hedging activities. 

Other Key Information

50

Other Key Information

49

As of December 25, 2021, the fair value of our marketable equity securities was $2.2 billion ($1.8 billion as of December 26, 2020). The 
substantial majority of our marketable equity securities portfolio as of December 25, 2021 was concentrated in securities traded on the 
Chinese Shanghai Stock Exchange Science and Technology Innovation Board. To determine reasonably possible decreases in the market 
value of our marketable equity securities, we have analyzed the historical market price sensitivity of our portfolio. Assuming a decline of 
60% in market prices, the aggregate value of our marketable equity securities could decrease by approximately $1.3 billion, based on the 
value as of December 25, 2021 (a decrease in value of approximately $1.1 billion, based on the value as of December 26, 2020 using an 
assumed decline of 60%). 

We utilize total return swaps to offset changes in liabilities related to the equity market risks of certain deferred compensation 
arrangements. Gains or losses from changes in fair value of these total return swaps are generally offset by the losses or gains on the 
related liabilities.

Many of the same factors that could result in an adverse movement of equity market prices affect our non-marketable equity investments, 
although we cannot always quantify the impacts directly. Financial markets are volatile, which could negatively affect the prospects of the 
companies we invest in, their ability to raise additional capital, and the likelihood of our ability to realize value in our investments through 
liquidity events such as initial public offerings, mergers, and private sales. These types of investments involve a great deal of risk, and 
there can be no assurance that any specific company will grow or become successful; consequently, we could lose all or part of our 
investment. Our non-marketable equity securities had a carrying amount of $4.1 billion as of December 25, 2021 ($3.3 billion as of 
December 26, 2020) and includes our investment in Beijing Unisoc Technology Ltd. of $1.1 billion ($658 million as of December 26, 2020). 

Commodity Price Risk

Although we operate facilities that consume commodities, we are not directly affected by commodity price risk to a material degree. We 
have established forecasted transaction risk management programs to protect against fluctuations in commodity prices. We may use 
commodity derivatives contracts, such as commodity swaps, in these hedging programs. In addition, we have sourcing plans in place that 
are designed to mitigate the risk of a potential supplier concentration for our key commodities. 

Risk Factors

When any one or more of the following risks materialize from time to time, our business, reputation, financial condition, cash flows, and 
results of operations can be materially and adversely affected, and the trading price of our common stock could decline. These risk factors 
do not identify all risks that we face; our operations can also be affected by factors that are not presently known to us or that we currently 
consider to be immaterial to our operations. Due to risks and uncertainties, known and unknown, our past financial results may not be a 
reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods. Refer also 
to the other information set forth in this Form 10-K, including in the MD&A and Financial Statements and Supplemental Details sections.

Changes in product demand can adversely affect our financial results. 

Demand for our products is variable and hard to predict. Our products are used in different market segments, and demand for our 
products varies within or among them. It is difficult to forecast these changes and their impact. For example, we expect the PC TAM to 
grow over time driven by factors such as a larger installed base, new platforms, shorter replacement cycles, and adoption in new markets; 
however, the PC industry has been highly cyclical in the past, and these growth expectations may not materialize or we may fail to 
capitalize on them. Changes in the demand for our products, particularly our CCG and DCG platform products, can reduce our revenue, 
lower our gross margin, or require us to write down the value of our assets.

Important factors that lead to variation in the demand for our products include:

▪

▪

▪

▪

▪

▪

▪

business conditions, including downturns in the market segments in which we operate, or in global or regional economies;

consumer confidence, income levels, and customer capital spending, which can be impacted by changes in market conditions, 
including changes in government borrowing or spending, taxation, interest rates, the credit market, current or expected inflation, 
employment, and energy or other commodity prices;

geopolitical conditions, including trade policies;

our ability to timely introduce competitive products; 

competitive and pricing pressures, including new product introductions and other actions taken by competitors;

the level of our customers' inventories and computing capacity;

customer order patterns and order cancellations, including as a result of maturing product cycles for our products, customers' 
products, and related products such as operating system upgrade cycles; and disruptions affecting customers, such as the ongoing 
industry substrate and component shortages that negatively impacted demand across several of our businesses in 2021;

▪ market acceptance and industry support of our products, including the introduction and availability of software and other products 

used together with our products; and

▪

customer product needs and emerging technology trends, including changes in the levels and nature of customer and end-user 
computing workloads, such as work- and learn-from-home trends.

Due to the complexity of our manufacturing operations, we are not always able to timely respond to fluctuations in demand and we may 

incur significant charges and costs. Because we own and operate high-tech fabrication facilities, our operations have high costs that are 

fixed or difficult to reduce in the short term, including our costs related to utilization of existing facilities, facility construction and 

equipment, R&D, and the employment and training of a highly skilled workforce. To the extent product demand decreases or we fail to 

forecast demand accurately, we could be required to write off inventory or record excess capacity charges, which would lower our gross 

margin. To the extent the demand decrease is prolonged, our manufacturing or assembly and test capacity could be underutilized, and we 

may be required to write down our long-lived assets, which would increase our expenses. We may also be required to shorten the useful 

lives of under-used facilities and equipment and accelerate depreciation. As we make substantial investments in increasing our 

manufacturing capacity as part of our IDM 2.0 strategy, these underutilization risks may be heightened.  Conversely, at times demand 

increases or we fail to forecast accurately or produce the mix of products demanded. To the extent we are unable to add capacity or 

increase production fast enough, we are at times required to make production decisions and/or are unable to fully meet market demand, 

which can result in a loss of revenue opportunities or market share, legal claims, and/or damage to customer relationships. 

Our IDM 2.0 investments in capacity and our process technology roadmap will require capital expenditures above our historical levels, 

and if demand for our IFS business grows rapidly, we anticipate that we would need to accelerate our planned investments to meet that 

demand. To the extent we do not generate expected cash flows, we may be required to increase our use of external funding sources to 

fund our investments and operations, which may not be available on favorable terms or at all. There is legislation under consideration in 

the US and EU to provide government funding for semiconductor manufacturing expansions in those regions, but there can be no 

assurance that such funding will be enacted, and there is uncertainty as to the amounts and timing of funding we may receive and as to 

any restrictions on recipients. To the extent such funding is below our expectations, our anticipated cash requirements would increase.  

Our construction projects to expand capacity require available sources of labor, materials, and equipment. Increasing demand for such 

sources, including from other foundries; supply constraints, labor shortages, and other adverse market conditions; issues with permits or 

approvals; and other construction issues arise from time to time and can result in significant delays and increased costs for our projects.

We face significant competition. The industry in which we operate is highly competitive and subject to rapid technological and market 

developments; changes in industry standards; changes in customer and end-user needs, expectations, and preferences; and frequent 

product introductions and improvements. When we do not anticipate or respond to these developments, our competitive position can 

weaken, and our products or technologies can become uncompetitive or obsolete. Our competitive environment has intensified, and we 

expect it to continue to do so in the future.

Our products primarily compete based on performance, energy efficiency, integration, ease-of-use, innovative design, features, workload 

optimization, price, quality, reliability, security, software ecosystem and developer support, time-to-market, reliable product roadmap 

execution, brand recognition, customer support and customization, and availability. The importance of these factors varies by product and 

market segment. For example, our competitors have introduced data center and client platform products with performance improvements 

and additional processor core counts that have contributed to an increasingly competitive environment. In our IOTG business, for 

example, interoperability, connectivity, safety, security, industrial use conditions, and long-life support are among the key competitive 

factors. To the extent our products do not meet our customers' requirements across these factors in an increasingly competitive 

landscape, our business and results of operation can be harmed.

We face intense competition across our product portfolio from companies offering platform products, such as AMD and Qualcomm; 

accelerator products such as GPUs, including those offered by NVIDIA; other accelerator products such as ASICs, application-specific 

standard products, and FPGAs; memory and storage products; connectivity and networking products; and other semiconductor products. 

Some of these competitors have developed or utilize competing computing architectures and platforms, such as the ARM architecture, 

and these architectures and platforms can produce beneficial network effects for competitors when an ecosystem of customers and 

application developers for such architectures and platforms grows at scale. For example, ARM-based products are being used in PCs and 

servers, which could lead to further development and growth of the ARM ecosystem. We also compete with internally developed 

semiconductors from OEMs, cloud service providers, and others, some of whom are customers. Some of these customers vertically 

integrate their own semiconductor designs with their software assets and/or customize their designs for specific computing workloads. For 

example, in 2020, Apple introduced PC products utilizing its own internally developed ARM-based semiconductor designs in place of our 

client CPUs, and we face increasing competition from Apple's products and ecosystem.

Most of our competitors rely on third-party foundries, such as Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) or Samsung 

Electronics Co., Ltd., and subcontractors for manufacture and assembly and test of their semiconductor components and products. 

Manufacturing process improvements introduced by TSMC have contributed, and may continue to contribute, to increasingly competitive 

offerings by our competitors. While we have set out a process technology roadmap to attain future process performance-per-watt parity 

and leadership relative to TSMC, our plans are subject to a number of risks and we could fail to realize our goals, including due to 

changes in competitor technology roadmaps, changes affecting our projections regarding our technology or competing technology, and 

the risks described in the section "We are vulnerable to product and manufacturing-related risks." As an IDM, we have higher capital 

expenditures and R&D spending than many of our "fabless" competitors. We also face new sources of competition as a result of changes 

in industry participants through, for example, acquisitions or business collaborations, as well as new entrants, including in China, which 

could have a significant impact on our competitive position. For example, we could face increased competition as a result of China's 

programs to promote a domestic semiconductor industry and supply chains.

Other Key Information

50

Other Key Information

53

As of December 25, 2021, the fair value of our marketable equity securities was $2.2 billion ($1.8 billion as of December 26, 2020). The 

substantial majority of our marketable equity securities portfolio as of December 25, 2021 was concentrated in securities traded on the 

Chinese Shanghai Stock Exchange Science and Technology Innovation Board. To determine reasonably possible decreases in the market 

value of our marketable equity securities, we have analyzed the historical market price sensitivity of our portfolio. Assuming a decline of 

60% in market prices, the aggregate value of our marketable equity securities could decrease by approximately $1.3 billion, based on the 

value as of December 25, 2021 (a decrease in value of approximately $1.1 billion, based on the value as of December 26, 2020 using an 

assumed decline of 60%). 

related liabilities.

We utilize total return swaps to offset changes in liabilities related to the equity market risks of certain deferred compensation 

arrangements. Gains or losses from changes in fair value of these total return swaps are generally offset by the losses or gains on the 

Many of the same factors that could result in an adverse movement of equity market prices affect our non-marketable equity investments, 

although we cannot always quantify the impacts directly. Financial markets are volatile, which could negatively affect the prospects of the 

companies we invest in, their ability to raise additional capital, and the likelihood of our ability to realize value in our investments through 

liquidity events such as initial public offerings, mergers, and private sales. These types of investments involve a great deal of risk, and 

there can be no assurance that any specific company will grow or become successful; consequently, we could lose all or part of our 

investment. Our non-marketable equity securities had a carrying amount of $4.1 billion as of December 25, 2021 ($3.3 billion as of 

December 26, 2020) and includes our investment in Beijing Unisoc Technology Ltd. of $1.1 billion ($658 million as of December 26, 2020). 

Although we operate facilities that consume commodities, we are not directly affected by commodity price risk to a material degree. We 

have established forecasted transaction risk management programs to protect against fluctuations in commodity prices. We may use 

commodity derivatives contracts, such as commodity swaps, in these hedging programs. In addition, we have sourcing plans in place that 

are designed to mitigate the risk of a potential supplier concentration for our key commodities. 

Commodity Price Risk

Risk Factors

When any one or more of the following risks materialize from time to time, our business, reputation, financial condition, cash flows, and 

results of operations can be materially and adversely affected, and the trading price of our common stock could decline. These risk factors 

do not identify all risks that we face; our operations can also be affected by factors that are not presently known to us or that we currently 

consider to be immaterial to our operations. Due to risks and uncertainties, known and unknown, our past financial results may not be a 

reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods. Refer also 

to the other information set forth in this Form 10-K, including in the MD&A and Financial Statements and Supplemental Details sections.

Changes in product demand can adversely affect our financial results. 

Demand for our products is variable and hard to predict. Our products are used in different market segments, and demand for our 

products varies within or among them. It is difficult to forecast these changes and their impact. For example, we expect the PC TAM to 

grow over time driven by factors such as a larger installed base, new platforms, shorter replacement cycles, and adoption in new markets; 

however, the PC industry has been highly cyclical in the past, and these growth expectations may not materialize or we may fail to 

capitalize on them. Changes in the demand for our products, particularly our CCG and DCG platform products, can reduce our revenue, 

lower our gross margin, or require us to write down the value of our assets.

Important factors that lead to variation in the demand for our products include:

business conditions, including downturns in the market segments in which we operate, or in global or regional economies;

consumer confidence, income levels, and customer capital spending, which can be impacted by changes in market conditions, 

including changes in government borrowing or spending, taxation, interest rates, the credit market, current or expected inflation, 

employment, and energy or other commodity prices;

geopolitical conditions, including trade policies;

our ability to timely introduce competitive products; 

competitive and pricing pressures, including new product introductions and other actions taken by competitors;

the level of our customers' inventories and computing capacity;

customer order patterns and order cancellations, including as a result of maturing product cycles for our products, customers' 

products, and related products such as operating system upgrade cycles; and disruptions affecting customers, such as the ongoing 

industry substrate and component shortages that negatively impacted demand across several of our businesses in 2021;

▪ market acceptance and industry support of our products, including the introduction and availability of software and other products 

used together with our products; and

customer product needs and emerging technology trends, including changes in the levels and nature of customer and end-user 

computing workloads, such as work- and learn-from-home trends.

▪

▪

▪

▪

▪

▪

▪

▪

Due to the complexity of our manufacturing operations, we are not always able to timely respond to fluctuations in demand and we may 
incur significant charges and costs. Because we own and operate high-tech fabrication facilities, our operations have high costs that are 
fixed or difficult to reduce in the short term, including our costs related to utilization of existing facilities, facility construction and 
equipment, R&D, and the employment and training of a highly skilled workforce. To the extent product demand decreases or we fail to 
forecast demand accurately, we could be required to write off inventory or record excess capacity charges, which would lower our gross 
margin. To the extent the demand decrease is prolonged, our manufacturing or assembly and test capacity could be underutilized, and we 
may be required to write down our long-lived assets, which would increase our expenses. We may also be required to shorten the useful 
lives of under-used facilities and equipment and accelerate depreciation. As we make substantial investments in increasing our 
manufacturing capacity as part of our IDM 2.0 strategy, these underutilization risks may be heightened.  Conversely, at times demand 
increases or we fail to forecast accurately or produce the mix of products demanded. To the extent we are unable to add capacity or 
increase production fast enough, we are at times required to make production decisions and/or are unable to fully meet market demand, 
which can result in a loss of revenue opportunities or market share, legal claims, and/or damage to customer relationships. 

Our IDM 2.0 investments in capacity and our process technology roadmap will require capital expenditures above our historical levels, 
and if demand for our IFS business grows rapidly, we anticipate that we would need to accelerate our planned investments to meet that 
demand. To the extent we do not generate expected cash flows, we may be required to increase our use of external funding sources to 
fund our investments and operations, which may not be available on favorable terms or at all. There is legislation under consideration in 
the US and EU to provide government funding for semiconductor manufacturing expansions in those regions, but there can be no 
assurance that such funding will be enacted, and there is uncertainty as to the amounts and timing of funding we may receive and as to 
any restrictions on recipients. To the extent such funding is below our expectations, our anticipated cash requirements would increase.  
Our construction projects to expand capacity require available sources of labor, materials, and equipment. Increasing demand for such 
sources, including from other foundries; supply constraints, labor shortages, and other adverse market conditions; issues with permits or 
approvals; and other construction issues arise from time to time and can result in significant delays and increased costs for our projects.

We face significant competition. The industry in which we operate is highly competitive and subject to rapid technological and market 
developments; changes in industry standards; changes in customer and end-user needs, expectations, and preferences; and frequent 
product introductions and improvements. When we do not anticipate or respond to these developments, our competitive position can 
weaken, and our products or technologies can become uncompetitive or obsolete. Our competitive environment has intensified, and we 
expect it to continue to do so in the future.

Our products primarily compete based on performance, energy efficiency, integration, ease-of-use, innovative design, features, workload 
optimization, price, quality, reliability, security, software ecosystem and developer support, time-to-market, reliable product roadmap 
execution, brand recognition, customer support and customization, and availability. The importance of these factors varies by product and 
market segment. For example, our competitors have introduced data center and client platform products with performance improvements 
and additional processor core counts that have contributed to an increasingly competitive environment. In our IOTG business, for 
example, interoperability, connectivity, safety, security, industrial use conditions, and long-life support are among the key competitive 
factors. To the extent our products do not meet our customers' requirements across these factors in an increasingly competitive 
landscape, our business and results of operation can be harmed.

We face intense competition across our product portfolio from companies offering platform products, such as AMD and Qualcomm; 
accelerator products such as GPUs, including those offered by NVIDIA; other accelerator products such as ASICs, application-specific 
standard products, and FPGAs; memory and storage products; connectivity and networking products; and other semiconductor products. 
Some of these competitors have developed or utilize competing computing architectures and platforms, such as the ARM architecture, 
and these architectures and platforms can produce beneficial network effects for competitors when an ecosystem of customers and 
application developers for such architectures and platforms grows at scale. For example, ARM-based products are being used in PCs and 
servers, which could lead to further development and growth of the ARM ecosystem. We also compete with internally developed 
semiconductors from OEMs, cloud service providers, and others, some of whom are customers. Some of these customers vertically 
integrate their own semiconductor designs with their software assets and/or customize their designs for specific computing workloads. For 
example, in 2020, Apple introduced PC products utilizing its own internally developed ARM-based semiconductor designs in place of our 
client CPUs, and we face increasing competition from Apple's products and ecosystem.

Most of our competitors rely on third-party foundries, such as Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) or Samsung 
Electronics Co., Ltd., and subcontractors for manufacture and assembly and test of their semiconductor components and products. 
Manufacturing process improvements introduced by TSMC have contributed, and may continue to contribute, to increasingly competitive 
offerings by our competitors. While we have set out a process technology roadmap to attain future process performance-per-watt parity 
and leadership relative to TSMC, our plans are subject to a number of risks and we could fail to realize our goals, including due to 
changes in competitor technology roadmaps, changes affecting our projections regarding our technology or competing technology, and 
the risks described in the section "We are vulnerable to product and manufacturing-related risks." As an IDM, we have higher capital 
expenditures and R&D spending than many of our "fabless" competitors. We also face new sources of competition as a result of changes 
in industry participants through, for example, acquisitions or business collaborations, as well as new entrants, including in China, which 
could have a significant impact on our competitive position. For example, we could face increased competition as a result of China's 
programs to promote a domestic semiconductor industry and supply chains.

Other Key Information

52

Other Key Information

51

Introduction of competitive new products and technologies, aggressive pricing, and other actions taken by competitors can harm demand 
for our products, exert downward pricing pressure on our products, and adversely affect our business. For example, our DCG revenue 
and platform ASPs were negatively impacted by the competitive environment during 2021. Additionally, a number of business 
combinations and strategic partnerships in the semiconductor industry have occurred over the last several years, and more could occur in 
the future. For example, in 2020, NVIDIA announced an agreement to acquire ARM Holdings plc, and AMD announced an agreement to 
acquire Xilinx, Inc. Consolidation could also lead to fewer customers, partners, or suppliers, any of which could negatively affect our 
financial results.

Changes in the mix of products sold can materially impact our financial results. Our pricing and margins vary across our products and 

market segments due in part to marketability of our products and differences in their features or manufacturing costs. For example, our 

platform product offerings range from lower-priced and entry-level platforms, such as those based on Intel Atom processors, to higher-end 

platforms based on Intel Xeon processors. Our adjacent products also typically have significantly lower margins than our higher-priced 

platform products, and at times are not profitable. To the extent demand shifts from our higher-priced to lower-priced platform products in 

any of our market segments, or our adjacent products represent a greater share of our mix of products sold, our gross margin percentage 

may decrease.

If we are not able to compete effectively, our financial results will be adversely affected, including reduced revenue and gross margin, and 
we may be required to accelerate the write-down of the value of certain assets.

We are vulnerable to product and manufacturing-related risks.

We invest significantly in R&D, and to the extent our R&D efforts are unsuccessful, our competitive position can be harmed and we may 
not realize a return on our investments. To compete successfully, we must maintain an effective R&D program, develop new products and 
manufacturing processes, and improve our existing products and processes, all ahead of competitors. We are focusing our R&D efforts 
across several key areas, including process and packaging technology, our xPU products and features, and software. These include 
ambitious initiatives, such as our unified oneAPI portfolio of developer tools. We cannot guarantee that all of these efforts will deliver the 
benefits we anticipate. For example, we previously experienced significant delays in the implementation of our 10nm process technology, 
and during 2020, we announced that our Intel 4 process technology (formerly 7nm) would be delayed relative to our prior expectations. To 
the extent we do not timely introduce new manufacturing process technologies that improve performance, performance per watt, and/or 
transistor density with sufficient manufacturing yields and operational efficiency, relative to competing foundry processes, we can face 
cost, product performance, and time-to-market disadvantages. In addition, we are not always able to timely or successfully develop new 
products, including as a result of bugs, late changes to features due to customer requests, or other design challenges. To the extent our 
R&D efforts do not develop new products on schedule with improvements in areas like performance, performance per watt, die utilization, 
and core counts, and/or with new features such as optimizations for AI and other workloads, our competitive position can be harmed. We 
have adopted a disaggregated design approach for some of our future products, in which different processors and components can be 
manufactured on different processes and connected by advanced packaging technology into a single package. This approach introduces 
new areas of complexity in design and manufacturability, particularly in the deployment of advanced packaging technologies, several of 
which are novel, have a limited manufacturing history, and/or have increased costs. Delays or failures in implementing disaggregated 
designs could adversely affect our ability to timely introduce competitive products. For example, adapting a processor or component 
design for a new or different manufacturing process involves additional R&D expense and can result in delays in the development of the 
associated product.

We do not expect all of our R&D investments to be successful. Some of our efforts to develop and market new products and technologies 
fail or fall short of our expectations, or are not well-received by customers, who may adopt competing technologies. We make significant 
investments in R&D, and we expect our investments to grow as we pursue our IDM 2.0 strategy. Our investments at times do not 
contribute to our future operating results for several years, if at all, and such contributions at times do not meet our expectations or even 
cover the costs of such investments. 

Our investments in new businesses, products, and technologies are inherently risky and do not always succeed. We have entered new 
areas and introduced new products and services as we seek to capitalize on the opportunities presented by ubiquitous computing, cloud 
to edge infrastructure, pervasive connectivity, and AI. In recent years, we have expanded our product offerings in areas such as discrete 
GPUs, mobility solutions, AI accelerators, IPU products, silicon photonics solutions, and Intel Optane technology products. As part of our 
IDM 2.0 strategy, we have announced plans to become a major provider of foundry capacity to manufacture semiconductors for others, 
establishing IFS. IFS faces competition from well-established competitors such as TSMC and Samsung, and to succeed, we will need to 
compete effectively across factors such as availability and time-to-market of manufacturing technology; advances in manufacturing 
processes in areas such as performance, performance per watt, and density; manufacturing capacity; price; ease of use; quality; yields; 
customer satisfaction; and ecosystem support. Our "big bets" are inherently risky and are not always successful. For example, in 2019, 
we exited the 5G smartphone modem business, one of our prior big bets, based on our determination that there was no clear path to 
profitability for the business. 

These new and developing areas and products represent a significant portion of our revenue growth opportunity, and they also introduce 
new sources of competition, including, in some cases, incumbent competitors with established technologies, ecosystems, and customer 
bases, lower prices or costs, and greater brand recognition. These developing products and market segments require significant 
investment, do not always grow as projected or at all, or sometimes adopt competing technologies, and we may not realize an adequate 
return on our investments. For example, AI and machine learning are increasingly driving innovations in technology, but if we fail to 
develop leading products for these workloads, or if our customers use competing technologies, we may not realize a return on our 
investments in these areas. Similarly, while we see significant opportunity in networking infrastructure and the distribution of computing to 
the network edge, we expect intense competition for this opportunity and may not succeed in our efforts. To be successful, we need to 
cultivate relationships with customers and partners in these market segments and continue to improve our offerings. Despite our ongoing 
efforts, there is no guarantee that we will achieve or maintain market demand or acceptance for our products and services in these 
various market segments or realize an adequate return on our investments, which could lead to impairment of assets and restructuring 
charges, as well as opportunity costs.

We are subject to risks associated with the development and implementation of new manufacturing technologies. Production of integrated 

circuits is a complex process. We are continually engaged in the development of next-generation process technologies at increasingly 

advanced nodes as we seek to realize the benefits of Moore's Law. Forecasting our progress and schedule for developing advanced 

nodes is challenging, and at times we encounter unexpected delays due to the complexity of interactions among steps in the 

manufacturing process, challenges in using new materials or new production equipment, and other issues. Diagnosing defects in our 

manufacturing processes often takes a long time, as manufacturing throughput times can delay our receipt of data about defects and the 

effectiveness of fixes, and defects can be more serious and difficult to resolve than initially understood. 

We are not always successful or efficient in developing or implementing new process nodes and manufacturing processes. We 

experienced significant delays in implementing our 10nm process technology, and in 2020, we encountered a defect mode in the 

development of our Intel 4 process technology (formerly 7nm) that resulted in delays relative to our prior expectations. These delays have 

allowed competitors using third-party foundries such as TSMC to benefit from advancements in manufacturing processes introduced 

ahead of us by foundries, including improvements in performance, energy efficiency, and other features, which have helped increase the 

competitiveness of their products. Because of these prior delays in our process technologies, we may experience greater adverse 

competitive impacts in the event of delays in the development of future manufacturing process technologies and products. 

Our efforts to innovate involve significant expense and carry inherent risks, including difficulties in designing and developing next-

generation process and packaging technologies, and investments in manufacturing assets and facilities that are made years in advance of 

the technology introduction. We cannot guarantee that we will realize the expected benefits of next-generation process technologies, 

including the expected cost, performance, power, and density advantages, or that we will achieve an adequate return on our capital and 

R&D investments, particularly as development of new nodes has grown increasingly expensive. In such circumstances, we may be 

required to write down the value of some of our manufacturing assets and facilities, increasing our expenses.

Risks inherent in the development of next-generation process technologies include production timing delays, lower-than-anticipated 

manufacturing yields, longer manufacturing throughput times, failure to achieve expected performance, power, and area improvements, 

and product defects and errata. Production timing delays have at times caused us to miss customer product design windows, which can 

result in lost revenue opportunities and damage to our customer relationships. Furthermore, when the introduction of next-generation 

process nodes is delayed, adding cores or other competitive features to our products can result in larger die size products, manufacturing 

supply constraints, and increased product costs. Lower manufacturing yields and longer manufacturing throughput times, compared to 

previous process nodes, can increase our product costs and adversely affect our gross margins, and can contribute to manufacturing 

supply constraints. A new process node typically has higher costs compared to a mature node due to factors that include higher 

depreciation costs and lower yields, and costs and yields at times do not improve at the same rate as on prior nodes. As the die size of 

our products has increased and our manufacturing process nodes have shrunk, our products and manufacturing processes have grown 

increasingly complex and more susceptible to product defects and errata, which at times also contribute to production timing delays and 

lower yields.

From time to time, disruptions in the production process result from errors, defects in materials, delays in obtaining or revising permits and 

licenses, interruptions in our supply of materials, resources, or production equipment, adverse changes in equipment productivity, and 

disruptions at our fabrication and assembly and test facilities due to accidents, maintenance issues, power interruptions, equipment 

malfunctions, or unsafe working conditions—all of which could affect the timing of production ramps and yields. Production issues 

periodically lead to increased costs and affect our ability to meet product demand, which can adversely impact our business and the 

results of operations. In addition, delays in our product introductions can cause us to become less competitive and lose revenue 

opportunities, and our gross margin could be adversely affected because we incur significant costs up front in the product development 

stage and earn revenue to offset these costs over time.

We face supply chain risks. We have a highly complex global supply chain composed of thousands of suppliers. These suppliers provide 

direct materials for our production processes; supply tools, equipment, and IP for our factories; deliver logistics and packaging services; 

and supply software, lab and office equipment, and other goods and services used in our business. We also rely on suppliers to provide 

certain components for our products and to manufacture and assemble and test some of our components and products. From time to time 

we are negatively impacted by supply chain issues, including the following:

suppliers extending lead times, experiencing capacity constraints, limiting or canceling supply, allocating supply to other customers 

including competitors, delaying or canceling deliveries, or increasing prices;

cybersecurity events, IP or other litigation, manmade or natural disasters, operational failures, or other events that disrupt suppliers;

long lead times to qualify alternate or additional suppliers, or the unavailability of qualified alternate suppliers; and

▪

▪

▪

▪

supplier quality issues;

Other Key Information

52

Other Key Information

55

Introduction of competitive new products and technologies, aggressive pricing, and other actions taken by competitors can harm demand 

for our products, exert downward pricing pressure on our products, and adversely affect our business. For example, our DCG revenue 

and platform ASPs were negatively impacted by the competitive environment during 2021. Additionally, a number of business 

combinations and strategic partnerships in the semiconductor industry have occurred over the last several years, and more could occur in 

the future. For example, in 2020, NVIDIA announced an agreement to acquire ARM Holdings plc, and AMD announced an agreement to 

acquire Xilinx, Inc. Consolidation could also lead to fewer customers, partners, or suppliers, any of which could negatively affect our 

financial results.

Changes in the mix of products sold can materially impact our financial results. Our pricing and margins vary across our products and 
market segments due in part to marketability of our products and differences in their features or manufacturing costs. For example, our 
platform product offerings range from lower-priced and entry-level platforms, such as those based on Intel Atom processors, to higher-end 
platforms based on Intel Xeon processors. Our adjacent products also typically have significantly lower margins than our higher-priced 
platform products, and at times are not profitable. To the extent demand shifts from our higher-priced to lower-priced platform products in 
any of our market segments, or our adjacent products represent a greater share of our mix of products sold, our gross margin percentage 
may decrease.

If we are not able to compete effectively, our financial results will be adversely affected, including reduced revenue and gross margin, and 

We are vulnerable to product and manufacturing-related risks.

we may be required to accelerate the write-down of the value of certain assets.

We invest significantly in R&D, and to the extent our R&D efforts are unsuccessful, our competitive position can be harmed and we may 

not realize a return on our investments. To compete successfully, we must maintain an effective R&D program, develop new products and 

manufacturing processes, and improve our existing products and processes, all ahead of competitors. We are focusing our R&D efforts 

across several key areas, including process and packaging technology, our xPU products and features, and software. These include 

ambitious initiatives, such as our unified oneAPI portfolio of developer tools. We cannot guarantee that all of these efforts will deliver the 

benefits we anticipate. For example, we previously experienced significant delays in the implementation of our 10nm process technology, 

and during 2020, we announced that our Intel 4 process technology (formerly 7nm) would be delayed relative to our prior expectations. To 

the extent we do not timely introduce new manufacturing process technologies that improve performance, performance per watt, and/or 

transistor density with sufficient manufacturing yields and operational efficiency, relative to competing foundry processes, we can face 

cost, product performance, and time-to-market disadvantages. In addition, we are not always able to timely or successfully develop new 

products, including as a result of bugs, late changes to features due to customer requests, or other design challenges. To the extent our 

R&D efforts do not develop new products on schedule with improvements in areas like performance, performance per watt, die utilization, 

and core counts, and/or with new features such as optimizations for AI and other workloads, our competitive position can be harmed. We 

have adopted a disaggregated design approach for some of our future products, in which different processors and components can be 

manufactured on different processes and connected by advanced packaging technology into a single package. This approach introduces 

new areas of complexity in design and manufacturability, particularly in the deployment of advanced packaging technologies, several of 

which are novel, have a limited manufacturing history, and/or have increased costs. Delays or failures in implementing disaggregated 

designs could adversely affect our ability to timely introduce competitive products. For example, adapting a processor or component 

design for a new or different manufacturing process involves additional R&D expense and can result in delays in the development of the 

associated product.

We do not expect all of our R&D investments to be successful. Some of our efforts to develop and market new products and technologies 

fail or fall short of our expectations, or are not well-received by customers, who may adopt competing technologies. We make significant 

investments in R&D, and we expect our investments to grow as we pursue our IDM 2.0 strategy. Our investments at times do not 

contribute to our future operating results for several years, if at all, and such contributions at times do not meet our expectations or even 

cover the costs of such investments. 

Our investments in new businesses, products, and technologies are inherently risky and do not always succeed. We have entered new 

areas and introduced new products and services as we seek to capitalize on the opportunities presented by ubiquitous computing, cloud 

to edge infrastructure, pervasive connectivity, and AI. In recent years, we have expanded our product offerings in areas such as discrete 

GPUs, mobility solutions, AI accelerators, IPU products, silicon photonics solutions, and Intel Optane technology products. As part of our 

IDM 2.0 strategy, we have announced plans to become a major provider of foundry capacity to manufacture semiconductors for others, 

establishing IFS. IFS faces competition from well-established competitors such as TSMC and Samsung, and to succeed, we will need to 

compete effectively across factors such as availability and time-to-market of manufacturing technology; advances in manufacturing 

processes in areas such as performance, performance per watt, and density; manufacturing capacity; price; ease of use; quality; yields; 

customer satisfaction; and ecosystem support. Our "big bets" are inherently risky and are not always successful. For example, in 2019, 

we exited the 5G smartphone modem business, one of our prior big bets, based on our determination that there was no clear path to 

profitability for the business. 

These new and developing areas and products represent a significant portion of our revenue growth opportunity, and they also introduce 

new sources of competition, including, in some cases, incumbent competitors with established technologies, ecosystems, and customer 

bases, lower prices or costs, and greater brand recognition. These developing products and market segments require significant 

investment, do not always grow as projected or at all, or sometimes adopt competing technologies, and we may not realize an adequate 

return on our investments. For example, AI and machine learning are increasingly driving innovations in technology, but if we fail to 

develop leading products for these workloads, or if our customers use competing technologies, we may not realize a return on our 

investments in these areas. Similarly, while we see significant opportunity in networking infrastructure and the distribution of computing to 

the network edge, we expect intense competition for this opportunity and may not succeed in our efforts. To be successful, we need to 

cultivate relationships with customers and partners in these market segments and continue to improve our offerings. Despite our ongoing 

efforts, there is no guarantee that we will achieve or maintain market demand or acceptance for our products and services in these 

various market segments or realize an adequate return on our investments, which could lead to impairment of assets and restructuring 

charges, as well as opportunity costs.

We are subject to risks associated with the development and implementation of new manufacturing technologies. Production of integrated 
circuits is a complex process. We are continually engaged in the development of next-generation process technologies at increasingly 
advanced nodes as we seek to realize the benefits of Moore's Law. Forecasting our progress and schedule for developing advanced 
nodes is challenging, and at times we encounter unexpected delays due to the complexity of interactions among steps in the 
manufacturing process, challenges in using new materials or new production equipment, and other issues. Diagnosing defects in our 
manufacturing processes often takes a long time, as manufacturing throughput times can delay our receipt of data about defects and the 
effectiveness of fixes, and defects can be more serious and difficult to resolve than initially understood. 

We are not always successful or efficient in developing or implementing new process nodes and manufacturing processes. We 
experienced significant delays in implementing our 10nm process technology, and in 2020, we encountered a defect mode in the 
development of our Intel 4 process technology (formerly 7nm) that resulted in delays relative to our prior expectations. These delays have 
allowed competitors using third-party foundries such as TSMC to benefit from advancements in manufacturing processes introduced 
ahead of us by foundries, including improvements in performance, energy efficiency, and other features, which have helped increase the 
competitiveness of their products. Because of these prior delays in our process technologies, we may experience greater adverse 
competitive impacts in the event of delays in the development of future manufacturing process technologies and products. 

Our efforts to innovate involve significant expense and carry inherent risks, including difficulties in designing and developing next-
generation process and packaging technologies, and investments in manufacturing assets and facilities that are made years in advance of 
the technology introduction. We cannot guarantee that we will realize the expected benefits of next-generation process technologies, 
including the expected cost, performance, power, and density advantages, or that we will achieve an adequate return on our capital and 
R&D investments, particularly as development of new nodes has grown increasingly expensive. In such circumstances, we may be 
required to write down the value of some of our manufacturing assets and facilities, increasing our expenses.

Risks inherent in the development of next-generation process technologies include production timing delays, lower-than-anticipated 
manufacturing yields, longer manufacturing throughput times, failure to achieve expected performance, power, and area improvements, 
and product defects and errata. Production timing delays have at times caused us to miss customer product design windows, which can 
result in lost revenue opportunities and damage to our customer relationships. Furthermore, when the introduction of next-generation 
process nodes is delayed, adding cores or other competitive features to our products can result in larger die size products, manufacturing 
supply constraints, and increased product costs. Lower manufacturing yields and longer manufacturing throughput times, compared to 
previous process nodes, can increase our product costs and adversely affect our gross margins, and can contribute to manufacturing 
supply constraints. A new process node typically has higher costs compared to a mature node due to factors that include higher 
depreciation costs and lower yields, and costs and yields at times do not improve at the same rate as on prior nodes. As the die size of 
our products has increased and our manufacturing process nodes have shrunk, our products and manufacturing processes have grown 
increasingly complex and more susceptible to product defects and errata, which at times also contribute to production timing delays and 
lower yields.

From time to time, disruptions in the production process result from errors, defects in materials, delays in obtaining or revising permits and 
licenses, interruptions in our supply of materials, resources, or production equipment, adverse changes in equipment productivity, and 
disruptions at our fabrication and assembly and test facilities due to accidents, maintenance issues, power interruptions, equipment 
malfunctions, or unsafe working conditions—all of which could affect the timing of production ramps and yields. Production issues 
periodically lead to increased costs and affect our ability to meet product demand, which can adversely impact our business and the 
results of operations. In addition, delays in our product introductions can cause us to become less competitive and lose revenue 
opportunities, and our gross margin could be adversely affected because we incur significant costs up front in the product development 
stage and earn revenue to offset these costs over time.

We face supply chain risks. We have a highly complex global supply chain composed of thousands of suppliers. These suppliers provide 
direct materials for our production processes; supply tools, equipment, and IP for our factories; deliver logistics and packaging services; 
and supply software, lab and office equipment, and other goods and services used in our business. We also rely on suppliers to provide 
certain components for our products and to manufacture and assemble and test some of our components and products. From time to time 
we are negatively impacted by supply chain issues, including the following:

▪

▪

▪

▪

suppliers extending lead times, experiencing capacity constraints, limiting or canceling supply, allocating supply to other customers 
including competitors, delaying or canceling deliveries, or increasing prices;

supplier quality issues;

cybersecurity events, IP or other litigation, manmade or natural disasters, operational failures, or other events that disrupt suppliers;

long lead times to qualify alternate or additional suppliers, or the unavailability of qualified alternate suppliers; and

Other Key Information

54

Other Key Information

53

▪

increased regulation or stakeholder expectations regarding responsible sourcing practices, or supplier conduct that does not meet 
such standards, which can cause our compliance costs to increase or result in publicity that negatively affects our reputation.

These costs could be large and may increase expenses and lower gross margin, and/or result in delay or loss of revenue. Mitigation 

techniques designed to address product issues, including software and firmware updates, are not always available on a timely basis—or 

These and other supply chain issues can increase our costs, disrupt or reduce our production, delay our product shipments, prevent us 
from meeting customer demand, and damage our customer relationships. They may keep us from successfully implementing our 
business strategy and can materially harm our business, competitive position, results of operation, and financial condition. From time to 
time, our customers experience disruptions or shortages in their own supply chains that constrain their demand for our products. During 
2021, the semiconductor industry experienced widespread shortages of substrates and other components and available foundry 
manufacturing capacity, and we anticipate that such shortages will continue in 2022. These shortages have limited our ability to supply 
customer demand in certain of our businesses, such as for our PSG products, and have adversely affected customer demand for our 
products, including in our CCG and DCG businesses, as some customers have been unable to procure sufficient quantities of third-party 
components used together with our products to produce finished systems. It is difficult to predict the future impact of these ongoing 
shortages.

To obtain future supply of certain materials and components, particularly substrates, and third-party foundry manufacturing capacity, we 
have increasingly entered into arrangements with some of our suppliers that involve long-term purchase commitments and/or large 
prepayments. These arrangements could still prove inadequate to meet our requirements, or our suppliers may fail to deliver committed 
volumes on time or at all, or their financial condition may deteriorate. If future customer demand over the horizon of these arrangements 
falls below our expectations, we could have excess or obsolete inventory, unneeded capacity, and increased costs, and our prepayments 
may not be fully utilized, and in some cases may not be fully recoverable. 

We utilize third-party foundries and component suppliers to manufacture or supply certain components and products for areas such as 
networking, communications, graphics, programmable semiconductor solutions, and memory. As part of our IDM 2.0 strategy, we expect 
to increase our use of third-party foundries for manufacturing, which will include modular tiles manufactured on advanced foundry process 
technologies for use in our core computing offerings. Delays in the development of foundries’ future manufacturing processes could delay 
the introduction of products or components we design for such processes, and insufficient foundry capacity could prevent us from meeting 
customer demand. We typically have less control over delivery schedules, design and manufacturing co-optimization, manufacturing 
yields, quality, product quantities, and costs for components and products that are manufactured by third parties. 

Where possible, we seek to have several sources of supply. However, for certain components, services, materials, and equipment, we 
rely on a single or a limited number of suppliers, or upon suppliers in a single location. For example, ASML is currently the sole supplier of 
EUV photolithography tools that we will be deploying in our Intel 4 and other future manufacturing process nodes. These tools are highly 
complex to develop and produce, and increasingly costly, and from time to time there are increases in lead times or delays in their 
development and availability, which could delay the development or ramp of our future process nodes. As a further example, a limited 
number of third-party foundries offer leading-edge manufacturing processes, and these providers are geographically concentrated in Asia. 
Supplier consolidation or business failures can also reduce the pool of qualified suppliers. Sole- or limited-source suppliers can impact the 
nature, quality, availability, and pricing of the products and services available to us and intensify the other risks described in this risk factor.

Our disaggregated design strategy introduces additional production risks. Our disaggregated design strategy poses increased logistical 
risks and challenges, particularly where we decide to manufacture different product components on different process technologies, 
including third-party foundries' process technologies. To combine components in a single package, they need to be manufactured on a 
timely basis and in sufficient quantities, while the manufacturing processes we utilize may have differing yields, throughput times, and 
capacity constraints. We may be required to safely store some components pending the manufacture of others. Delays or quality issues 
with one component could limit our ability to manufacture the entire completed product. In addition, the packaging technologies used to 
combine these components can increase our costs and may introduce additional complexity and quality issues. To the extent we are 
unable to manage these risks, our ability to timely supply competitive products can be harmed and our costs could increase.

We are subject to the risks of product defects, errata, or other product issues. From time to time, we identify product defects, errata 
(deviations from published specifications), and other product issues, which can result from problems in our product design or our 
manufacturing and assembly and test processes. Components and products we purchase or license from third-party suppliers, or gain 
through acquisitions, can also contain defects. Product issues also sometimes result from the interaction between our products and third-
party products and software. We face risks if products that we design, manufacture, or sell, or that include our technology, cause personal 
injury or property damage, even where the cause is unrelated to product defects or errata. These risks may increase as our products are 
introduced into new devices, market segments, technologies, or applications, including transportation, autonomous driving, healthcare, 
communications, financial services, and other industrial, critical infrastructure, and consumer uses. 

Costs from defects, errata, or other product issues could include:

▪

▪

▪

▪

▪

▪

writing off some or all of the value of inventory;

recalling products that have been shipped;

providing product replacements or modifications;

providing consideration to customers, including reimbursement for certain costs they incur;

defending against litigation and/or paying resulting damages; and

paying fines imposed by regulatory agencies.

at all—and do not always operate as intended or effectively resolve such issues for all applications. We and third parties, such as 

hardware and software vendors, make prioritization decisions about which product issues to address, which can delay, limit, or prevent 

development or deployment of a mitigation and harm our reputation and result in costs. Product defects, errata, or other product issues 

and/or mitigation techniques can result in product failures, adverse performance and power effects, reboots, system instability or 

unavailability, loss of functionality, data loss or corruption, unpredictable system behavior, decisions by customers and end users to limit or 

change the applications in which they use our products or product features, and other issues. Product issues can damage our reputation, 

negatively affect product demand, delay product releases or deployment, result in legal liability, or make our products less competitive, 

which could harm our business and financial results. Subsequent events or new information can develop that changes our assessment of 

the impact of a product issue. In addition, our liability insurance coverage has certain exclusions or may not adequately cover liabilities 

incurred. Our insurance providers may be unable or unwilling to pay a claim, and losses not covered by insurance could be large, which 

could harm our financial condition.

We face risks related to security vulnerabilities in our products. We or third parties regularly identify security vulnerabilities with respect to 

our processors and other products, as well as the operating systems and workloads that run on them and the components that interact 

with them. Components and IP we purchase or license from third parties for use in our products, as well as industry-standard 

specifications we implement in our products, are also regularly subject to security vulnerabilities. Our processors and other products are 

being used in application areas that create new or increased cybersecurity and privacy risks, including applications that gather and 

process large amounts of data, such as the cloud or Internet of Things, and critical infrastructure and automotive applications. The 

security vulnerabilities identified in our processors include a category known as side-channel vulnerabilities, such as the variants referred 

to as "Spectre" and "Meltdown." Additional categories and variants have been identified and are expected to continue to be identified. 

Publicity about these and other security vulnerabilities has resulted in, and is expected to continue to result in, increased attempts by third 

parties to identify additional vulnerabilities. Security and manageability features in our products cannot make our products absolutely 

secure, and these features themselves are subject to vulnerabilities and attempts by third parties to identify additional vulnerabilities. 

Vulnerabilities are not always mitigated before they become known. We, our customers, and the users of our products do not always 

promptly learn of or have the ability to fully assess the magnitude or effects of a vulnerability, including the extent, if any, to which a 

vulnerability has been exploited. Subsequent events or new information can develop that changes our assessment of the impact of a 

security vulnerability, including additional information learned as we develop and deploy mitigations or updates, become aware of 

additional variants, evaluate the competitiveness of existing and new products, and address future warranty or other claims or customer 

satisfaction considerations, as well as developments in the course of any litigation or regulatory inquiries or actions over these matters.

Mitigation techniques designed to address security vulnerabilities, including software and firmware updates or other preventative 

measures, are not always available on a timely basis—or at all—and at times do not operate as intended or effectively resolve 

vulnerabilities for all applications. In addition, we are often required to rely on third parties, including hardware, software, and services 

vendors, as well as our customers and end users, to develop and/or deploy mitigation techniques, and the availability, effectiveness, and 

performance impact of mitigation techniques can depend solely or in part on the actions of these third parties in determining whether, 

when, and how to develop and deploy mitigations. We and such third parties make prioritization decisions about which vulnerabilities to 

address, which can delay, limit, or prevent development or deployment of a mitigation and harm our reputation. Security vulnerabilities 

and/or mitigation techniques can result in adverse performance or power effects, reboots, system instability or unavailability, loss of 

functionality, data loss or corruption, unpredictable system behavior, decisions by customers and end users to limit or change the 

applications in which they use our products or product features, and/or the misappropriation of data by third parties.

Security vulnerabilities and any limitations or adverse effects of mitigation techniques can adversely affect our results of operations, 

financial condition, customer relationships, prospects, and reputation in a number of ways, any of which may be material. For example, 

whether or not vulnerabilities involve attempted or successful exploits, they may result in our incurring significant costs related to 

developing and deploying updates and mitigations, writing down inventory value, defending against product claims and litigation, 

responding to regulatory inquiries or actions, paying damages, addressing customer satisfaction considerations, providing product 

replacements or modifications, or taking other remedial steps with respect to third parties. Adverse publicity about security vulnerabilities 

or mitigations could damage our reputation with customers or users and reduce demand for our products and services. These effects may 

be greater to the extent that competing products are not susceptible to the same vulnerabilities or if vulnerabilities can be more effectively 

mitigated in competing products. Moreover, third parties can release information regarding potential vulnerabilities of our products before 

mitigations are available, which, in turn, could lead to attempted or successful exploits, adversely affect our ability to introduce mitigations, 

or otherwise harm our business and reputation. 

We are subject to risks associated with environmental, health, and safety regulations. The manufacturing and assembly and test of our 

products require the use of hazardous materials that are subject to a broad array of environmental, health, and safety laws and 

regulations. Our failure to comply with these laws or regulations can result in regulatory penalties, fines, and legal liabilities; suspension of 

production; alteration of our manufacturing and assembly and test processes; damage to our reputation; and restrictions on our operations 

or sales. In addition, failure to comply by our suppliers of these materials can require us to suspend or alter our production processes.

Other Key Information

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Other Key Information

57

▪

increased regulation or stakeholder expectations regarding responsible sourcing practices, or supplier conduct that does not meet 

such standards, which can cause our compliance costs to increase or result in publicity that negatively affects our reputation.

These and other supply chain issues can increase our costs, disrupt or reduce our production, delay our product shipments, prevent us 

from meeting customer demand, and damage our customer relationships. They may keep us from successfully implementing our 

business strategy and can materially harm our business, competitive position, results of operation, and financial condition. From time to 

time, our customers experience disruptions or shortages in their own supply chains that constrain their demand for our products. During 

2021, the semiconductor industry experienced widespread shortages of substrates and other components and available foundry 

manufacturing capacity, and we anticipate that such shortages will continue in 2022. These shortages have limited our ability to supply 

customer demand in certain of our businesses, such as for our PSG products, and have adversely affected customer demand for our 

products, including in our CCG and DCG businesses, as some customers have been unable to procure sufficient quantities of third-party 

components used together with our products to produce finished systems. It is difficult to predict the future impact of these ongoing 

shortages.

To obtain future supply of certain materials and components, particularly substrates, and third-party foundry manufacturing capacity, we 

have increasingly entered into arrangements with some of our suppliers that involve long-term purchase commitments and/or large 

prepayments. These arrangements could still prove inadequate to meet our requirements, or our suppliers may fail to deliver committed 

volumes on time or at all, or their financial condition may deteriorate. If future customer demand over the horizon of these arrangements 

falls below our expectations, we could have excess or obsolete inventory, unneeded capacity, and increased costs, and our prepayments 

may not be fully utilized, and in some cases may not be fully recoverable. 

We utilize third-party foundries and component suppliers to manufacture or supply certain components and products for areas such as 

networking, communications, graphics, programmable semiconductor solutions, and memory. As part of our IDM 2.0 strategy, we expect 

to increase our use of third-party foundries for manufacturing, which will include modular tiles manufactured on advanced foundry process 

technologies for use in our core computing offerings. Delays in the development of foundries’ future manufacturing processes could delay 

the introduction of products or components we design for such processes, and insufficient foundry capacity could prevent us from meeting 

customer demand. We typically have less control over delivery schedules, design and manufacturing co-optimization, manufacturing 

yields, quality, product quantities, and costs for components and products that are manufactured by third parties. 

Where possible, we seek to have several sources of supply. However, for certain components, services, materials, and equipment, we 

rely on a single or a limited number of suppliers, or upon suppliers in a single location. For example, ASML is currently the sole supplier of 

EUV photolithography tools that we will be deploying in our Intel 4 and other future manufacturing process nodes. These tools are highly 

complex to develop and produce, and increasingly costly, and from time to time there are increases in lead times or delays in their 

development and availability, which could delay the development or ramp of our future process nodes. As a further example, a limited 

number of third-party foundries offer leading-edge manufacturing processes, and these providers are geographically concentrated in Asia. 

Supplier consolidation or business failures can also reduce the pool of qualified suppliers. Sole- or limited-source suppliers can impact the 

nature, quality, availability, and pricing of the products and services available to us and intensify the other risks described in this risk factor.

Our disaggregated design strategy introduces additional production risks. Our disaggregated design strategy poses increased logistical 

risks and challenges, particularly where we decide to manufacture different product components on different process technologies, 

including third-party foundries' process technologies. To combine components in a single package, they need to be manufactured on a 

timely basis and in sufficient quantities, while the manufacturing processes we utilize may have differing yields, throughput times, and 

capacity constraints. We may be required to safely store some components pending the manufacture of others. Delays or quality issues 

with one component could limit our ability to manufacture the entire completed product. In addition, the packaging technologies used to 

combine these components can increase our costs and may introduce additional complexity and quality issues. To the extent we are 

unable to manage these risks, our ability to timely supply competitive products can be harmed and our costs could increase.

We are subject to the risks of product defects, errata, or other product issues. From time to time, we identify product defects, errata 

(deviations from published specifications), and other product issues, which can result from problems in our product design or our 

manufacturing and assembly and test processes. Components and products we purchase or license from third-party suppliers, or gain 

through acquisitions, can also contain defects. Product issues also sometimes result from the interaction between our products and third-

party products and software. We face risks if products that we design, manufacture, or sell, or that include our technology, cause personal 

injury or property damage, even where the cause is unrelated to product defects or errata. These risks may increase as our products are 

introduced into new devices, market segments, technologies, or applications, including transportation, autonomous driving, healthcare, 

communications, financial services, and other industrial, critical infrastructure, and consumer uses. 

Costs from defects, errata, or other product issues could include:

writing off some or all of the value of inventory;

recalling products that have been shipped;

providing product replacements or modifications;

providing consideration to customers, including reimbursement for certain costs they incur;

defending against litigation and/or paying resulting damages; and

paying fines imposed by regulatory agencies.

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These costs could be large and may increase expenses and lower gross margin, and/or result in delay or loss of revenue. Mitigation 
techniques designed to address product issues, including software and firmware updates, are not always available on a timely basis—or 
at all—and do not always operate as intended or effectively resolve such issues for all applications. We and third parties, such as 
hardware and software vendors, make prioritization decisions about which product issues to address, which can delay, limit, or prevent 
development or deployment of a mitigation and harm our reputation and result in costs. Product defects, errata, or other product issues 
and/or mitigation techniques can result in product failures, adverse performance and power effects, reboots, system instability or 
unavailability, loss of functionality, data loss or corruption, unpredictable system behavior, decisions by customers and end users to limit or 
change the applications in which they use our products or product features, and other issues. Product issues can damage our reputation, 
negatively affect product demand, delay product releases or deployment, result in legal liability, or make our products less competitive, 
which could harm our business and financial results. Subsequent events or new information can develop that changes our assessment of 
the impact of a product issue. In addition, our liability insurance coverage has certain exclusions or may not adequately cover liabilities 
incurred. Our insurance providers may be unable or unwilling to pay a claim, and losses not covered by insurance could be large, which 
could harm our financial condition.

We face risks related to security vulnerabilities in our products. We or third parties regularly identify security vulnerabilities with respect to 
our processors and other products, as well as the operating systems and workloads that run on them and the components that interact 
with them. Components and IP we purchase or license from third parties for use in our products, as well as industry-standard 
specifications we implement in our products, are also regularly subject to security vulnerabilities. Our processors and other products are 
being used in application areas that create new or increased cybersecurity and privacy risks, including applications that gather and 
process large amounts of data, such as the cloud or Internet of Things, and critical infrastructure and automotive applications. The 
security vulnerabilities identified in our processors include a category known as side-channel vulnerabilities, such as the variants referred 
to as "Spectre" and "Meltdown." Additional categories and variants have been identified and are expected to continue to be identified. 
Publicity about these and other security vulnerabilities has resulted in, and is expected to continue to result in, increased attempts by third 
parties to identify additional vulnerabilities. Security and manageability features in our products cannot make our products absolutely 
secure, and these features themselves are subject to vulnerabilities and attempts by third parties to identify additional vulnerabilities. 
Vulnerabilities are not always mitigated before they become known. We, our customers, and the users of our products do not always 
promptly learn of or have the ability to fully assess the magnitude or effects of a vulnerability, including the extent, if any, to which a 
vulnerability has been exploited. Subsequent events or new information can develop that changes our assessment of the impact of a 
security vulnerability, including additional information learned as we develop and deploy mitigations or updates, become aware of 
additional variants, evaluate the competitiveness of existing and new products, and address future warranty or other claims or customer 
satisfaction considerations, as well as developments in the course of any litigation or regulatory inquiries or actions over these matters.

Mitigation techniques designed to address security vulnerabilities, including software and firmware updates or other preventative 
measures, are not always available on a timely basis—or at all—and at times do not operate as intended or effectively resolve 
vulnerabilities for all applications. In addition, we are often required to rely on third parties, including hardware, software, and services 
vendors, as well as our customers and end users, to develop and/or deploy mitigation techniques, and the availability, effectiveness, and 
performance impact of mitigation techniques can depend solely or in part on the actions of these third parties in determining whether, 
when, and how to develop and deploy mitigations. We and such third parties make prioritization decisions about which vulnerabilities to 
address, which can delay, limit, or prevent development or deployment of a mitigation and harm our reputation. Security vulnerabilities 
and/or mitigation techniques can result in adverse performance or power effects, reboots, system instability or unavailability, loss of 
functionality, data loss or corruption, unpredictable system behavior, decisions by customers and end users to limit or change the 
applications in which they use our products or product features, and/or the misappropriation of data by third parties.

Security vulnerabilities and any limitations or adverse effects of mitigation techniques can adversely affect our results of operations, 
financial condition, customer relationships, prospects, and reputation in a number of ways, any of which may be material. For example, 
whether or not vulnerabilities involve attempted or successful exploits, they may result in our incurring significant costs related to 
developing and deploying updates and mitigations, writing down inventory value, defending against product claims and litigation, 
responding to regulatory inquiries or actions, paying damages, addressing customer satisfaction considerations, providing product 
replacements or modifications, or taking other remedial steps with respect to third parties. Adverse publicity about security vulnerabilities 
or mitigations could damage our reputation with customers or users and reduce demand for our products and services. These effects may 
be greater to the extent that competing products are not susceptible to the same vulnerabilities or if vulnerabilities can be more effectively 
mitigated in competing products. Moreover, third parties can release information regarding potential vulnerabilities of our products before 
mitigations are available, which, in turn, could lead to attempted or successful exploits, adversely affect our ability to introduce mitigations, 
or otherwise harm our business and reputation. 

We are subject to risks associated with environmental, health, and safety regulations. The manufacturing and assembly and test of our 
products require the use of hazardous materials that are subject to a broad array of environmental, health, and safety laws and 
regulations. Our failure to comply with these laws or regulations can result in regulatory penalties, fines, and legal liabilities; suspension of 
production; alteration of our manufacturing and assembly and test processes; damage to our reputation; and restrictions on our operations 
or sales. In addition, failure to comply by our suppliers of these materials can require us to suspend or alter our production processes.

Other Key Information

56

Other Key Information

55

Our failure to manage the use, transportation, emissions, discharge, storage, recycling, or disposal of hazardous materials can lead to 
increased costs or future liabilities. Environmental regulations, such as air quality and wastewater requirements, may impede our ability to 
expand or modify our manufacturing capability in the future. Environmental laws and regulations sometimes require us to acquire 
additional pollution abatement or remediation equipment, modify product designs, or incur other expenses. Regulations in response to 
climate change could result in increased manufacturing costs associated with air pollution requirements. For example, semiconductor 
manufacturing uses perfluorocarbons, which have historically made up a large portion of our direct greenhouse gas emissions. New or 
increased regulations limiting the use of such compounds, or other greenhouse gas emissions, could require us to install additional 
abatement equipment, purchase carbon offsets, and/or alter our production processes. In addition, new or increased climate change 
regulation could increase our energy costs, for example as a result of carbon pricing impacts on electrical utilities. As we expand our 
manufacturing capacity as part of our IDM 2.0 strategy, the impacts of future regulation could be magnified. Many new materials that we 
are evaluating for use in our operations are subject to regulation under environmental laws and regulations. These restrictions could harm 
our business and results of operations by increasing our expenses or requiring us to alter manufacturing and assembly and test 
processes.

The COVID-19 pandemic could materially adversely affect our financial condition and results of 
operations. 

The COVID-19 pandemic has previously adversely affected significant portions of our business and could have a material adverse effect 
on our financial condition and results of operations. Authorities have imposed, and businesses and individuals have implemented, 
numerous measures to try to contain the virus or treat its impact, such as travel bans and restrictions, quarantines, shelter-in-place/stay-
at-home and social distancing orders, shutdowns, and vaccine requirements. These measures have impacted and may further impact our 
workforce and operations, the operations of our customers, and those of our respective suppliers and partners. We have experienced, 
and could in the future experience, reduced workforce availability at some of our sites, construction delays, and reduced capacity at some 
of our suppliers. We have significant manufacturing operations in the US, Ireland, Israel, China, Malaysia, and Vietnam, and each of these 
countries is taking measures in response to the pandemic. Restrictions on our manufacturing or support operations or workforce, similar 
limitations for our suppliers, and transportation restrictions or disruptions can limit our ability to meet customer demand and could have a 
material adverse effect on our financial condition and results of operations. Our customers have experienced, and may in the future 
experience, disruptions in their operations and supply chains, which can result in delayed, reduced, or cancelled orders, or collection 
risks, and which may adversely affect our results of operations. 

The pandemic has caused us to modify our business practices, including with respect to employee travel; employee work locations; 
cancellation of physical participation in meetings, events, and conferences; and social distancing measures. As a US federal government 
contractor, we are subject to a federal executive order requiring our US employees to be vaccinated unless they qualify for medical or 
religious exemptions. The order has been challenged in court and its ultimate status, and the impact on our business, is uncertain. 
However, this requirement or other future vaccine mandates could adversely affect our workforce retention and hiring. Similarly, this 
requirement would apply to our suppliers working at our US sites, and to the extent such suppliers refuse to comply or decline to work with 
us based on the requirement or other future vaccine mandates, our business may be adversely affected, including higher costs or delays 
for our construction projects. We may take further actions as required by government authorities or others, or that we determine are in the 
best interests of our employees, customers, suppliers, and partners. Work-from-home and other measures introduce additional 
operational risks, including cybersecurity risks, and have affected the way we conduct our product development, validation, and 
qualification, customer support, and other activities, which could have a material adverse effect on our operations. There is no certainty 
that such measures will be sufficient to mitigate the risks posed by the virus, and illness and workforce disruptions could lead to 
unavailability of key personnel and harm our ability to perform critical functions.

The pandemic has significantly increased economic and demand uncertainty, and has led to volatility in capital markets and credit 
markets. Risks related to adverse changes in global economic conditions are described in our risk factor titled "Global or regional 
conditions can harm our financial results," and include the risk that demand for our products will be significantly harmed. Given the 
continued and substantial economic uncertainty and volatility created by the pandemic, it is difficult to predict the nature and extent of 
impacts on demand for our products. For example, the increased demand for notebook products as a result of work- and learn-from-home 
dynamics may not continue as the pandemic progresses.

income.

The degree to which COVID-19 impacts our results will depend on future developments, which are highly uncertain and cannot be 
predicted, including the duration and severity of the pandemic; the actions taken to contain the virus or treat its impact; other actions taken 
by governments, businesses, and individuals in response to the virus and resulting economic disruption; and how quickly and to what 
extent normal economic and operating conditions can resume. Additional impacts and risks may arise that we are not aware of or able to 
respond to effectively. We are similarly unable to predict the extent of the impact of the pandemic on our customers, suppliers, and other 
partners, but a material effect on these parties could also materially adversely affect us. The impact of COVID-19 can also exacerbate 
other risks discussed in this Risk Factors section and throughout this report.

We operate globally and are subject to significant risks in many jurisdictions.

Global or regional conditions can harm our financial results. We have manufacturing, assembly and test, R&D, sales, and other operations 

in many countries, and some of our business activities are concentrated in one or more geographic areas. Moreover, sales outside the US 

accounted for 82% of our revenue for the fiscal year ended December 25, 2021, with revenue from billings to China contributing 27% of 

our total revenue. As a result, our operations and our financial results, including our ability to manufacture, assemble and test, design, 

develop, or sell products, and the demand for our products, are at times adversely affected by a number of global and regional factors 

outside of our control. 

Adverse changes in global or regional economic conditions periodically occur, including recession or slowing growth, changes or 

uncertainty in fiscal, monetary, or trade policy, higher interest rates, tighter credit, inflation, lower capital expenditures by businesses 

including on IT infrastructure, increases in unemployment, and lower consumer confidence and spending. Adverse changes in economic 

conditions, including those related to the COVID-19 pandemic, can significantly harm demand for our products and make it more 

challenging to forecast our operating results and make business decisions, including regarding prioritization of investments in our 

business. An economic downturn or increased uncertainty may also lead to increased credit and collectability risks, higher borrowing costs 

or reduced availability of capital and credit markets, reduced liquidity, adverse impacts on our suppliers, failures of counterparties 

including financial institutions and insurers, asset impairments, and declines in the value of our financial instruments.

We can be adversely affected by other global and regional factors that periodically occur, including:

geopolitical and security issues, such as armed conflict and civil or military unrest, political instability, human rights concerns, and 

terrorist activity, including, for example, geopolitical tensions and conflict affecting Israel, where our Mobileye business headquarters 

and certain of our fabrication facilities are located;

natural disasters, public health issues (including the COVID-19 pandemic), and other catastrophic events;

inefficient infrastructure and other disruptions, such as supply chain interruptions and large-scale outages or unreliable provision of 

services from utilities, transportation, data hosting, or telecommunications providers;

formal or informal imposition of new or revised export, import, or doing-business regulations, including trade sanctions, tariffs, and 

changes in the ability to obtain export licenses, which could be changed without notice;

government restrictions on, or nationalization of, our operations in any country, or restrictions on our ability to repatriate earnings from 

adverse changes relating to government grants, tax credits, or other government incentives, including more favorable incentives 

a particular country;

provided to competitors;

differing employment practices and labor issues;

ineffective legal protection of our IP rights in certain countries;

local business and cultural factors that differ from our current standards and practices;

continuing uncertainty regarding social, political, immigration, and tax and trade policies in the US and abroad; and

fluctuations in the market values of our domestic and international investments, which can be negatively affected by liquidity, credit 

deterioration or losses, interest rate changes, financial results, political risk, sovereign risk, or other factors.

We are also subject to risks related to the cessation of US dollar LIBOR. Certain of our derivatives and floating-rate investments reference 

US dollar LIBOR, and a portion of our indebtedness bears interest at variable interest rates, primarily based on US dollar LIBOR. No new 

US dollar LIBOR-based activity should be conducted after 2021, and US dollar LIBOR will be unavailable for use in our existing contracts 

and financial instruments beyond June 30, 2023. While reasonable alternatives to LIBOR have been introduced into markets, our 

transition from LIBOR to alternative reference rates could result in an increase in our interest expense and/or a reduction in our interest 

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We are subject to risks related to trade policies and regulations. Trade policies and disputes at times result in increased tariffs, trade 

barriers, and other protectionist measures, which can increase our manufacturing costs, make our products less competitive, reduce 

demand for our products, limit our ability to sell to certain customers, limit our ability to procure components or raw materials, or impede or 

slow the movement of our goods across borders. Increasing protectionism and economic nationalism may lead to further changes in trade 

policies and regulations, domestic sourcing initiatives, or other formal and informal measures that could make it more difficult to sell our 

products in, or restrict our access to, some markets. 

In particular, trade tensions between the US and China have led to increased tariffs and trade restrictions, including tariffs applicable to 

some of our products, and have affected customer ordering patterns. The US has imposed restrictions on the export of US-regulated 

products and technology to certain Chinese technology companies, including certain of our customers. These restrictions have reduced 

our sales, and continuing or future restrictions could adversely affect our financial performance, result in reputational harm to us, or lead 

such companies to develop or adopt technologies that compete with our products. It is difficult to predict what further trade-related actions 

governments may take, which may include trade restrictions and additional or increased tariffs and export controls imposed on short 

notice, and we may be unable to quickly and effectively react to or mitigate such actions. 

Other Key Information

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Other Key Information

59

Our failure to manage the use, transportation, emissions, discharge, storage, recycling, or disposal of hazardous materials can lead to 

increased costs or future liabilities. Environmental regulations, such as air quality and wastewater requirements, may impede our ability to 

expand or modify our manufacturing capability in the future. Environmental laws and regulations sometimes require us to acquire 

additional pollution abatement or remediation equipment, modify product designs, or incur other expenses. Regulations in response to 

climate change could result in increased manufacturing costs associated with air pollution requirements. For example, semiconductor 

manufacturing uses perfluorocarbons, which have historically made up a large portion of our direct greenhouse gas emissions. New or 

increased regulations limiting the use of such compounds, or other greenhouse gas emissions, could require us to install additional 

abatement equipment, purchase carbon offsets, and/or alter our production processes. In addition, new or increased climate change 

regulation could increase our energy costs, for example as a result of carbon pricing impacts on electrical utilities. As we expand our 

manufacturing capacity as part of our IDM 2.0 strategy, the impacts of future regulation could be magnified. Many new materials that we 

are evaluating for use in our operations are subject to regulation under environmental laws and regulations. These restrictions could harm 

our business and results of operations by increasing our expenses or requiring us to alter manufacturing and assembly and test 

The COVID-19 pandemic could materially adversely affect our financial condition and results of 

processes.

operations. 

The COVID-19 pandemic has previously adversely affected significant portions of our business and could have a material adverse effect 

on our financial condition and results of operations. Authorities have imposed, and businesses and individuals have implemented, 

numerous measures to try to contain the virus or treat its impact, such as travel bans and restrictions, quarantines, shelter-in-place/stay-

at-home and social distancing orders, shutdowns, and vaccine requirements. These measures have impacted and may further impact our 

workforce and operations, the operations of our customers, and those of our respective suppliers and partners. We have experienced, 

and could in the future experience, reduced workforce availability at some of our sites, construction delays, and reduced capacity at some 

of our suppliers. We have significant manufacturing operations in the US, Ireland, Israel, China, Malaysia, and Vietnam, and each of these 

countries is taking measures in response to the pandemic. Restrictions on our manufacturing or support operations or workforce, similar 

limitations for our suppliers, and transportation restrictions or disruptions can limit our ability to meet customer demand and could have a 

material adverse effect on our financial condition and results of operations. Our customers have experienced, and may in the future 

experience, disruptions in their operations and supply chains, which can result in delayed, reduced, or cancelled orders, or collection 

risks, and which may adversely affect our results of operations. 

The pandemic has caused us to modify our business practices, including with respect to employee travel; employee work locations; 

cancellation of physical participation in meetings, events, and conferences; and social distancing measures. As a US federal government 

contractor, we are subject to a federal executive order requiring our US employees to be vaccinated unless they qualify for medical or 

religious exemptions. The order has been challenged in court and its ultimate status, and the impact on our business, is uncertain. 

However, this requirement or other future vaccine mandates could adversely affect our workforce retention and hiring. Similarly, this 

requirement would apply to our suppliers working at our US sites, and to the extent such suppliers refuse to comply or decline to work with 

us based on the requirement or other future vaccine mandates, our business may be adversely affected, including higher costs or delays 

for our construction projects. We may take further actions as required by government authorities or others, or that we determine are in the 

best interests of our employees, customers, suppliers, and partners. Work-from-home and other measures introduce additional 

operational risks, including cybersecurity risks, and have affected the way we conduct our product development, validation, and 

qualification, customer support, and other activities, which could have a material adverse effect on our operations. There is no certainty 

that such measures will be sufficient to mitigate the risks posed by the virus, and illness and workforce disruptions could lead to 

unavailability of key personnel and harm our ability to perform critical functions.

The pandemic has significantly increased economic and demand uncertainty, and has led to volatility in capital markets and credit 

markets. Risks related to adverse changes in global economic conditions are described in our risk factor titled "Global or regional 

conditions can harm our financial results," and include the risk that demand for our products will be significantly harmed. Given the 

continued and substantial economic uncertainty and volatility created by the pandemic, it is difficult to predict the nature and extent of 

impacts on demand for our products. For example, the increased demand for notebook products as a result of work- and learn-from-home 

dynamics may not continue as the pandemic progresses.

The degree to which COVID-19 impacts our results will depend on future developments, which are highly uncertain and cannot be 

predicted, including the duration and severity of the pandemic; the actions taken to contain the virus or treat its impact; other actions taken 

by governments, businesses, and individuals in response to the virus and resulting economic disruption; and how quickly and to what 

extent normal economic and operating conditions can resume. Additional impacts and risks may arise that we are not aware of or able to 

respond to effectively. We are similarly unable to predict the extent of the impact of the pandemic on our customers, suppliers, and other 

partners, but a material effect on these parties could also materially adversely affect us. The impact of COVID-19 can also exacerbate 

other risks discussed in this Risk Factors section and throughout this report.

We operate globally and are subject to significant risks in many jurisdictions.

Global or regional conditions can harm our financial results. We have manufacturing, assembly and test, R&D, sales, and other operations 
in many countries, and some of our business activities are concentrated in one or more geographic areas. Moreover, sales outside the US 
accounted for 82% of our revenue for the fiscal year ended December 25, 2021, with revenue from billings to China contributing 27% of 
our total revenue. As a result, our operations and our financial results, including our ability to manufacture, assemble and test, design, 
develop, or sell products, and the demand for our products, are at times adversely affected by a number of global and regional factors 
outside of our control. 

Adverse changes in global or regional economic conditions periodically occur, including recession or slowing growth, changes or 
uncertainty in fiscal, monetary, or trade policy, higher interest rates, tighter credit, inflation, lower capital expenditures by businesses 
including on IT infrastructure, increases in unemployment, and lower consumer confidence and spending. Adverse changes in economic 
conditions, including those related to the COVID-19 pandemic, can significantly harm demand for our products and make it more 
challenging to forecast our operating results and make business decisions, including regarding prioritization of investments in our 
business. An economic downturn or increased uncertainty may also lead to increased credit and collectability risks, higher borrowing costs 
or reduced availability of capital and credit markets, reduced liquidity, adverse impacts on our suppliers, failures of counterparties 
including financial institutions and insurers, asset impairments, and declines in the value of our financial instruments.

We can be adversely affected by other global and regional factors that periodically occur, including:

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geopolitical and security issues, such as armed conflict and civil or military unrest, political instability, human rights concerns, and 
terrorist activity, including, for example, geopolitical tensions and conflict affecting Israel, where our Mobileye business headquarters 
and certain of our fabrication facilities are located;

natural disasters, public health issues (including the COVID-19 pandemic), and other catastrophic events;

inefficient infrastructure and other disruptions, such as supply chain interruptions and large-scale outages or unreliable provision of 
services from utilities, transportation, data hosting, or telecommunications providers;

formal or informal imposition of new or revised export, import, or doing-business regulations, including trade sanctions, tariffs, and 
changes in the ability to obtain export licenses, which could be changed without notice;

government restrictions on, or nationalization of, our operations in any country, or restrictions on our ability to repatriate earnings from 
a particular country;

adverse changes relating to government grants, tax credits, or other government incentives, including more favorable incentives 
provided to competitors;

differing employment practices and labor issues;

ineffective legal protection of our IP rights in certain countries;

local business and cultural factors that differ from our current standards and practices;

continuing uncertainty regarding social, political, immigration, and tax and trade policies in the US and abroad; and

fluctuations in the market values of our domestic and international investments, which can be negatively affected by liquidity, credit 
deterioration or losses, interest rate changes, financial results, political risk, sovereign risk, or other factors.

We are also subject to risks related to the cessation of US dollar LIBOR. Certain of our derivatives and floating-rate investments reference 
US dollar LIBOR, and a portion of our indebtedness bears interest at variable interest rates, primarily based on US dollar LIBOR. No new 
US dollar LIBOR-based activity should be conducted after 2021, and US dollar LIBOR will be unavailable for use in our existing contracts 
and financial instruments beyond June 30, 2023. While reasonable alternatives to LIBOR have been introduced into markets, our 
transition from LIBOR to alternative reference rates could result in an increase in our interest expense and/or a reduction in our interest 
income.

We are subject to risks related to trade policies and regulations. Trade policies and disputes at times result in increased tariffs, trade 
barriers, and other protectionist measures, which can increase our manufacturing costs, make our products less competitive, reduce 
demand for our products, limit our ability to sell to certain customers, limit our ability to procure components or raw materials, or impede or 
slow the movement of our goods across borders. Increasing protectionism and economic nationalism may lead to further changes in trade 
policies and regulations, domestic sourcing initiatives, or other formal and informal measures that could make it more difficult to sell our 
products in, or restrict our access to, some markets. 

In particular, trade tensions between the US and China have led to increased tariffs and trade restrictions, including tariffs applicable to 
some of our products, and have affected customer ordering patterns. The US has imposed restrictions on the export of US-regulated 
products and technology to certain Chinese technology companies, including certain of our customers. These restrictions have reduced 
our sales, and continuing or future restrictions could adversely affect our financial performance, result in reputational harm to us, or lead 
such companies to develop or adopt technologies that compete with our products. It is difficult to predict what further trade-related actions 
governments may take, which may include trade restrictions and additional or increased tariffs and export controls imposed on short 
notice, and we may be unable to quickly and effectively react to or mitigate such actions. 

Other Key Information

58

Other Key Information

57

Trade disputes and protectionist measures, or continued uncertainty about such matters, could result in declining consumer confidence 
and slowing economic growth or recession, and could cause our customers to reduce, cancel, or alter the timing of their purchases with 
us. Sustained geopolitical tensions could lead to long-term changes in global trade and technology supply chains, and decoupling of 
global trade networks, which could have a material adverse effect on our business and growth prospects.

Laws and regulations can have a negative impact on our business. We are subject to laws and regulations worldwide that differ among 
jurisdictions, affecting our operations in areas including, but not limited to: IP ownership and infringement; tax; import and export 
requirements; anti-corruption; foreign exchange controls and cash repatriation restrictions; data privacy and localization requirements; 
competition; advertising; employment; product regulations; environment, health, and safety requirements; and consumer laws. 
Compliance with such requirements can be onerous and expensive, and may otherwise impact our business operations negatively. For 
example, unfavorable developments with evolving laws and regulations worldwide related to 5G or autonomous driving technology and 
MaaS may limit global adoption, impede our strategy, or negatively impact our long-term expectations for our investments in these areas. 
Expanding privacy legislation and compliance costs of privacy-related and data protection measures could adversely affect our customers 
and their products and services, particularly in cloud, Internet of Things, and AI applications, which could in turn reduce demand for our 
products used for those workloads.

Although we have policies, controls, and procedures designed to help ensure compliance with applicable laws, there can be no assurance 
that our employees, contractors, suppliers, or agents will not violate such laws or our policies. Violations of these laws and regulations can 
result in fines; criminal sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to 
our reputation. The technology industry is subject to intense media, political, and regulatory scrutiny, which can increase our exposure to 
government investigations, legal actions, and penalties.

We are affected by fluctuations in currency exchange rates. We are exposed to adverse as well as beneficial movements in currency 
exchange rates. Although most of our sales occur in US dollars, expenses may be paid in local currencies. An increase in the value of the 
dollar can increase the real cost to our customers of our products in those markets outside the US where we sell in dollars, and a 
weakened dollar can increase the cost of expenses such as payroll, utilities, tax, and marketing expenses, as well as overseas capital 
expenditures. We also conduct certain investing and financing activities in local currencies. Our hedging programs may not be effective to 
offset any, or more than a portion, of the adverse impact of currency exchange rate movements; therefore, changes in exchange rates can 
harm our results of operations and financial condition. 

Catastrophic events can have a material adverse effect on our operations and financial results. Our operations and business, and those of 
our customers and suppliers, can be disrupted by natural disasters; industrial accidents; public health issues (including the COVID-19 
pandemic); cybersecurity incidents; interruptions of service from utilities, transportation, telecommunications, or IT systems providers; 
manufacturing equipment failures; or other catastrophic events. For example, we have at times experienced disruptions in our 
manufacturing processes as a result of power outages, improperly functioning equipment, and disruptions in supply of raw materials or 
components, including due to cybersecurity incidents affecting our suppliers. Our headquarters and many of our operations and facilities 
are in locations that are prone to earthquakes and other natural disasters. Global climate change can result in certain natural disasters 
occurring more frequently or with greater intensity, such as drought, wildfires, storms, sea-level rise, and flooding, and could disrupt the 
availability of water necessary for the operation of our fabrication facilities, including facilities located in water-sensitive regions such as 
Arizona and Israel. In addition, to the extent we are unable to successfully manage and conserve water resources, our reputation could be 
harmed. In recent years, the west coast of the US has experienced significant wildfires, including in Oregon, where we have major 
manufacturing facilities. The long-term effects of climate change on the global economy and the technology industry in particular are 
unclear, but could be severe. 

Catastrophic events could make it difficult or impossible to manufacture or deliver products to our customers, receive production materials 
from our suppliers, or perform critical functions, which could adversely affect our revenue and require significant recovery time and 
expenditures to resume operations. While we maintain business recovery plans, some of our systems are not fully redundant and we 
cannot be sure that our plans will fully protect us from such disruptions. Furthermore, even if our operations are unaffected or recover 
quickly, if our customers or suppliers cannot timely resume their own operations due to a catastrophic event, we may experience reduced 
or cancelled orders or disruptions to our supply chain that may adversely affect our results of operations.

We maintain a program of insurance coverage for a variety of property, casualty, and other risks. The types and amounts of insurance we 
obtain vary depending on availability, cost, and decisions with respect to risk retention. Some of our policies have large deductibles and 
broad exclusions. In addition, one or more of our insurance providers may be unable or unwilling to pay a claim. Losses not covered by 
insurance may be large, which could harm our results of operations and financial condition.

Damage to our reputation can damage our business. Our reputation is a critical factor in our relationships with customers, employees, 

governments, suppliers, and other stakeholders. Our failure to address, or the appearance of our failure to address, issues that give rise 

to reputational risk, including those described throughout this Risk Factors section, could significantly harm our reputation and our brands. 

Our reputation can be impacted by catastrophic events (including our response to the COVID-19 pandemic); incidents involving unethical 

behavior or misconduct; product quality, security, or safety issues; allegations of legal noncompliance; internal control failures; corporate 

governance issues; data breaches; workplace safety incidents; environmental incidents; our response to climate change, including our 

greenhouse gas emission levels; the use of our products for illegal or objectionable applications, including AI and machine learning 

applications that present ethical, regulatory, or other issues; marketing practices; media statements; the conduct of our suppliers or 

representatives; and other issues, incidents, or statements that, whether actual or perceived, result in adverse publicity. To the extent we 

fail to respond quickly and effectively to address corporate crises, the ensuing negative public reaction could significantly harm our 

reputation and our brands and could lead to increases in litigation claims and asserted damages or subject us to regulatory actions or 

restrictions. 

Damage to our reputation could reduce demand for our products and adversely affect our business and operating environment. It could 

reduce investor confidence in us, adversely affecting our stock price. It may also limit our ability to be seen as an employer of choice when 

competing for highly skilled employees. Moreover, repairing our reputation and brands may be difficult, time-consuming, and expensive.

We are subject to cybersecurity and privacy risks.

We face risks related to cybersecurity threats and incidents. We regularly face attempts by others to gain unauthorized access through the 

Internet, or to introduce malicious software, to our IT systems. Individuals or organizations, including malicious hackers, state-sponsored 

organizations, insider threats including employees and third-party service providers, or intruders into our physical facilities, at times 

attempt to gain unauthorized access and/or corrupt the processes used to design and manufacture our hardware products and our 

associated software and services. Due to the widespread use of our products, we are a frequent target of computer hackers and 

organizations that intend to sabotage, compromise, take control of, or otherwise corrupt our manufacturing or other processes, products, 

and services. We are also a target of malicious attackers who attempt to gain access to our network or data centers or those of our 

suppliers, customers, partners, or end users; steal proprietary information related to our business, products, employees, suppliers, and 

customers; interrupt our systems and services or those of our suppliers, customers, or others; or demand ransom to return control of such 

systems and services. Such attempts are increasing in number and in technical sophistication, and if successful, expose us and the 

affected parties to risk of loss or misuse of proprietary or confidential information or disruptions of our business operations, including our 

manufacturing operations. Our IT infrastructure also includes products and services provided by third parties, and these providers can 

experience breaches of their systems and products, or provide inadequate updates or support, which can impact the security of our 

systems and our proprietary or confidential information.

From time to time, we encounter intrusions or unauthorized access to our network, products, services, or infrastructure, as well as those 

of third parties who provide products and services to us. For example, in the fourth quarter of 2020, our Habana Labs subsidiary’s network 

was breached, resulting in unauthorized third-party access of certain confidential information, in connection with a suspected unsuccessful 

ransomware attack. The breach was confined to our subsidiary's network and has not had a material impact on Habana Labs’ business. 

We are also subject to risks associated with attacks involving our supply chain, such as the compromise of IT infrastructure management 

software provided by SolarWinds Corporation, reported in the fourth quarter of 2020. During 2021, we have observed an increase in 

ransomware attacks in our supply chain. In December 2021, a vulnerability named “Log4Shell” was reported for the widely used Java 

logging library, Apache Log4j 2. We have reviewed the use of this library within our software product portfolio and in our IT environment 

and have taken steps to mitigate the vulnerability. To date, cybersecurity incidents have not resulted in a material adverse impact to our 

business or operations, but there can be no guarantee we will not experience such an impact. Such incidents, whether or not successful, 

could result in our incurring significant costs related to, for example, rebuilding internal systems, writing down inventory value, 

implementing additional threat protection measures, providing modifications to our products and services, defending against litigation, 

responding to regulatory inquiries or actions, paying damages, providing customers with incentives to maintain the business relationship, 

or taking other remedial steps with respect to third parties, as well as reputational harm. In addition, these threats are constantly evolving, 

thereby increasing the difficulty of successfully defending against them or implementing adequate preventative measures. As a result of 

the COVID-19 pandemic, remote work and remote access to our systems has increased significantly, which also increases our 

cybersecurity attack surface. We have also seen an increase in cyberattack volume, frequency, and sophistication driven by the global 

enablement of remote workforces. We seek to detect and investigate unauthorized attempts and attacks against our network, products, 

and services, and to prevent their recurrence where practicable through changes or updates to our internal processes and tools and 

changes or updates to our products and services; however, we remain potentially vulnerable to additional known or unknown threats. In 

some instances, we, our suppliers, our customers, and the users of our products and services can be unaware of an incident or its 

magnitude and effects. There is increasing regulation regarding responses to cybersecurity incidents, including reporting to regulators, 

which could subject us to additional liability and reputational harm.

Other Key Information

58

Other Key Information

61

Trade disputes and protectionist measures, or continued uncertainty about such matters, could result in declining consumer confidence 

and slowing economic growth or recession, and could cause our customers to reduce, cancel, or alter the timing of their purchases with 

us. Sustained geopolitical tensions could lead to long-term changes in global trade and technology supply chains, and decoupling of 

global trade networks, which could have a material adverse effect on our business and growth prospects.

Laws and regulations can have a negative impact on our business. We are subject to laws and regulations worldwide that differ among 

jurisdictions, affecting our operations in areas including, but not limited to: IP ownership and infringement; tax; import and export 

requirements; anti-corruption; foreign exchange controls and cash repatriation restrictions; data privacy and localization requirements; 

competition; advertising; employment; product regulations; environment, health, and safety requirements; and consumer laws. 

Compliance with such requirements can be onerous and expensive, and may otherwise impact our business operations negatively. For 

example, unfavorable developments with evolving laws and regulations worldwide related to 5G or autonomous driving technology and 

MaaS may limit global adoption, impede our strategy, or negatively impact our long-term expectations for our investments in these areas. 

Expanding privacy legislation and compliance costs of privacy-related and data protection measures could adversely affect our customers 

and their products and services, particularly in cloud, Internet of Things, and AI applications, which could in turn reduce demand for our 

products used for those workloads.

Although we have policies, controls, and procedures designed to help ensure compliance with applicable laws, there can be no assurance 

that our employees, contractors, suppliers, or agents will not violate such laws or our policies. Violations of these laws and regulations can 

result in fines; criminal sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to 

our reputation. The technology industry is subject to intense media, political, and regulatory scrutiny, which can increase our exposure to 

government investigations, legal actions, and penalties.

We are affected by fluctuations in currency exchange rates. We are exposed to adverse as well as beneficial movements in currency 

exchange rates. Although most of our sales occur in US dollars, expenses may be paid in local currencies. An increase in the value of the 

dollar can increase the real cost to our customers of our products in those markets outside the US where we sell in dollars, and a 

weakened dollar can increase the cost of expenses such as payroll, utilities, tax, and marketing expenses, as well as overseas capital 

expenditures. We also conduct certain investing and financing activities in local currencies. Our hedging programs may not be effective to 

offset any, or more than a portion, of the adverse impact of currency exchange rate movements; therefore, changes in exchange rates can 

harm our results of operations and financial condition. 

Catastrophic events can have a material adverse effect on our operations and financial results. Our operations and business, and those of 

our customers and suppliers, can be disrupted by natural disasters; industrial accidents; public health issues (including the COVID-19 

pandemic); cybersecurity incidents; interruptions of service from utilities, transportation, telecommunications, or IT systems providers; 

manufacturing equipment failures; or other catastrophic events. For example, we have at times experienced disruptions in our 

manufacturing processes as a result of power outages, improperly functioning equipment, and disruptions in supply of raw materials or 

components, including due to cybersecurity incidents affecting our suppliers. Our headquarters and many of our operations and facilities 

are in locations that are prone to earthquakes and other natural disasters. Global climate change can result in certain natural disasters 

occurring more frequently or with greater intensity, such as drought, wildfires, storms, sea-level rise, and flooding, and could disrupt the 

availability of water necessary for the operation of our fabrication facilities, including facilities located in water-sensitive regions such as 

Arizona and Israel. In addition, to the extent we are unable to successfully manage and conserve water resources, our reputation could be 

harmed. In recent years, the west coast of the US has experienced significant wildfires, including in Oregon, where we have major 

manufacturing facilities. The long-term effects of climate change on the global economy and the technology industry in particular are 

unclear, but could be severe. 

Catastrophic events could make it difficult or impossible to manufacture or deliver products to our customers, receive production materials 

from our suppliers, or perform critical functions, which could adversely affect our revenue and require significant recovery time and 

expenditures to resume operations. While we maintain business recovery plans, some of our systems are not fully redundant and we 

cannot be sure that our plans will fully protect us from such disruptions. Furthermore, even if our operations are unaffected or recover 

quickly, if our customers or suppliers cannot timely resume their own operations due to a catastrophic event, we may experience reduced 

or cancelled orders or disruptions to our supply chain that may adversely affect our results of operations.

We maintain a program of insurance coverage for a variety of property, casualty, and other risks. The types and amounts of insurance we 

obtain vary depending on availability, cost, and decisions with respect to risk retention. Some of our policies have large deductibles and 

broad exclusions. In addition, one or more of our insurance providers may be unable or unwilling to pay a claim. Losses not covered by 

insurance may be large, which could harm our results of operations and financial condition.

Damage to our reputation can damage our business. Our reputation is a critical factor in our relationships with customers, employees, 
governments, suppliers, and other stakeholders. Our failure to address, or the appearance of our failure to address, issues that give rise 
to reputational risk, including those described throughout this Risk Factors section, could significantly harm our reputation and our brands. 
Our reputation can be impacted by catastrophic events (including our response to the COVID-19 pandemic); incidents involving unethical 
behavior or misconduct; product quality, security, or safety issues; allegations of legal noncompliance; internal control failures; corporate 
governance issues; data breaches; workplace safety incidents; environmental incidents; our response to climate change, including our 
greenhouse gas emission levels; the use of our products for illegal or objectionable applications, including AI and machine learning 
applications that present ethical, regulatory, or other issues; marketing practices; media statements; the conduct of our suppliers or 
representatives; and other issues, incidents, or statements that, whether actual or perceived, result in adverse publicity. To the extent we 
fail to respond quickly and effectively to address corporate crises, the ensuing negative public reaction could significantly harm our 
reputation and our brands and could lead to increases in litigation claims and asserted damages or subject us to regulatory actions or 
restrictions. 

Damage to our reputation could reduce demand for our products and adversely affect our business and operating environment. It could 
reduce investor confidence in us, adversely affecting our stock price. It may also limit our ability to be seen as an employer of choice when 
competing for highly skilled employees. Moreover, repairing our reputation and brands may be difficult, time-consuming, and expensive.

We are subject to cybersecurity and privacy risks.

We face risks related to cybersecurity threats and incidents. We regularly face attempts by others to gain unauthorized access through the 
Internet, or to introduce malicious software, to our IT systems. Individuals or organizations, including malicious hackers, state-sponsored 
organizations, insider threats including employees and third-party service providers, or intruders into our physical facilities, at times 
attempt to gain unauthorized access and/or corrupt the processes used to design and manufacture our hardware products and our 
associated software and services. Due to the widespread use of our products, we are a frequent target of computer hackers and 
organizations that intend to sabotage, compromise, take control of, or otherwise corrupt our manufacturing or other processes, products, 
and services. We are also a target of malicious attackers who attempt to gain access to our network or data centers or those of our 
suppliers, customers, partners, or end users; steal proprietary information related to our business, products, employees, suppliers, and 
customers; interrupt our systems and services or those of our suppliers, customers, or others; or demand ransom to return control of such 
systems and services. Such attempts are increasing in number and in technical sophistication, and if successful, expose us and the 
affected parties to risk of loss or misuse of proprietary or confidential information or disruptions of our business operations, including our 
manufacturing operations. Our IT infrastructure also includes products and services provided by third parties, and these providers can 
experience breaches of their systems and products, or provide inadequate updates or support, which can impact the security of our 
systems and our proprietary or confidential information.

From time to time, we encounter intrusions or unauthorized access to our network, products, services, or infrastructure, as well as those 
of third parties who provide products and services to us. For example, in the fourth quarter of 2020, our Habana Labs subsidiary’s network 
was breached, resulting in unauthorized third-party access of certain confidential information, in connection with a suspected unsuccessful 
ransomware attack. The breach was confined to our subsidiary's network and has not had a material impact on Habana Labs’ business. 
We are also subject to risks associated with attacks involving our supply chain, such as the compromise of IT infrastructure management 
software provided by SolarWinds Corporation, reported in the fourth quarter of 2020. During 2021, we have observed an increase in 
ransomware attacks in our supply chain. In December 2021, a vulnerability named “Log4Shell” was reported for the widely used Java 
logging library, Apache Log4j 2. We have reviewed the use of this library within our software product portfolio and in our IT environment 
and have taken steps to mitigate the vulnerability. To date, cybersecurity incidents have not resulted in a material adverse impact to our 
business or operations, but there can be no guarantee we will not experience such an impact. Such incidents, whether or not successful, 
could result in our incurring significant costs related to, for example, rebuilding internal systems, writing down inventory value, 
implementing additional threat protection measures, providing modifications to our products and services, defending against litigation, 
responding to regulatory inquiries or actions, paying damages, providing customers with incentives to maintain the business relationship, 
or taking other remedial steps with respect to third parties, as well as reputational harm. In addition, these threats are constantly evolving, 
thereby increasing the difficulty of successfully defending against them or implementing adequate preventative measures. As a result of 
the COVID-19 pandemic, remote work and remote access to our systems has increased significantly, which also increases our 
cybersecurity attack surface. We have also seen an increase in cyberattack volume, frequency, and sophistication driven by the global 
enablement of remote workforces. We seek to detect and investigate unauthorized attempts and attacks against our network, products, 
and services, and to prevent their recurrence where practicable through changes or updates to our internal processes and tools and 
changes or updates to our products and services; however, we remain potentially vulnerable to additional known or unknown threats. In 
some instances, we, our suppliers, our customers, and the users of our products and services can be unaware of an incident or its 
magnitude and effects. There is increasing regulation regarding responses to cybersecurity incidents, including reporting to regulators, 
which could subject us to additional liability and reputational harm.

Other Key Information

60

Other Key Information

59

Theft, loss, or misuse of personal data about our employees, customers, or other third parties could increase our expenses, damage our 
reputation, or result in legal or regulatory proceedings. The theft, loss, or misuse of personal data collected, used, stored, or transferred by 
us to run our business, including data stored with vendors or other third parties, could result in significantly increased business and 
security costs or costs related to defending legal claims. We anticipate that our collection of such personal data will increase as we enter 
into the MaaS market in our Mobileye business, and it may increase as we enter into other new or adjacent businesses. Global privacy 
legislation, enforcement, and policy activity in this area are rapidly expanding and creating a complex regulatory compliance environment. 
Costs to comply with and implement these privacy-related and data protection measures could be significant, and noncompliance could 
expose us to significant monetary penalties, damage to our reputation, suspension of online services or sites in certain countries, and 
even criminal sanctions. Even our inadvertent failure to comply with federal, state, or international privacy-related or data-protection laws 
and regulations could result in audits, regulatory inquiries, or proceedings against us by governmental entities or other third parties.

We are subject to IP risks and risks associated with litigation and regulatory proceedings. 

We cannot always protect our IP or enforce our IP rights. We regard our patents, copyrights, trade secrets, and other IP rights as 
important to the success of our business. We rely on IP law—as well as confidentiality and licensing agreements with our customers, 
employees, technology development partners, and others—to protect our IP and IP rights. Our ability to enforce these rights is subject to 
general litigation risks, as well as uncertainty as to the enforceability of our IP rights in various countries. We are not always able to obtain 
protection for our IP or enforce or protect our IP rights. Enforcement is costly and time-consuming and can divert management attention. 
When we seek to enforce our rights, we may be subject to claims that our IP rights are invalid, not enforceable, or licensed to an opposing 
party. Our assertion of IP rights may result in another party seeking to assert claims against us, which could harm our business. From time 
to time, governments adopt regulations—and governments or courts render decisions—requiring compulsory licensing of IP rights, or 
governments require products to meet standards that favor local companies. Our inability to enforce our IP rights under any of these 
circumstances can harm our competitive position and business. In some cases, our IP rights can offer inadequate protection for our 
innovations. In addition, the theft or unauthorized use or publication of our trade secrets and other confidential business information could 
harm our competitive position and reduce acceptance of our products; as a result, the value of our investment in R&D, product 
development, and marketing could be reduced. This risk is heightened as competitors for technical talent increasingly seek to hire our 
employees.

Our licenses with other companies and participation in industry initiatives at times allow competitors to use some of our patent rights. 
Technology companies often bilaterally license patents between each other to settle disputes or as part of business agreements. Some of 
our competitors have in the past had, and may in the future have, licenses to some of our patents, and under current case law, some of 
the licenses can exhaust our patent rights as to licensed product sales under some circumstances. Our participation in industry standards 
organizations or with other industry initiatives at times requires us to offer to license our patents to companies that adopt industry-standard 
specifications. Depending on the rules of the organization, government regulations, or court decisions, we sometimes have to grant 
licenses to some of our patents for little or no cost, and as a result, we may be unable to enforce certain patents against others, and the 
value of our IP rights may be impaired.

Third parties assert claims based on IP rights against us and our products, which could harm our business. We face claims based on IP 
rights from individuals, companies, non-practicing entities, academic and research institutions, and other parties, including claims from 
those who have aggregated patents acquired from multiple sources to form a new, larger portfolio to assert claims against us and other 
companies. Additionally, large patent portfolio owners sometimes divest portions of their portfolios to more than one individual or company, 
increasing the number of parties who own IP rights previously all held by a single party. We have seen an increase in patent assertions 
and lawsuits initiated by well-funded non-practicing entities, including entities funded by investment firms and other third parties. In some 
instances, these entities have filed multi-jurisdiction litigation seeking large monetary damages and/or injunctions against us. These 
lawsuits can increase our cost of doing business and could disrupt our operations if they succeed in blocking the trade of our products. 
For example, in the multi-jurisdiction litigation brought against us by VLSI, a jury in one of the pending US federal court cases returned a 
verdict in February 2021 awarding approximately $2.2 billion in damages to VLSI, as discussed in Note 19: Commitments and 
Contingencies within the Consolidated Financial Statements. The patent litigation environment has also become more challenging due to 
the emergence of venues adopting procedural and substantive rules that make them more favorable for patent asserters, including the 
availability of injunctive relief for non-practicing entities, and the US Patent and Trademark Office’s reduction of inter partes patent review  
under the America Invents Act. As a result, we believe we are facing a more hostile IP litigation environment.

We are typically engaged in a number of disputes involving IP rights. Claims that our products, technologies, or processes infringe the IP 
rights of others, regardless of their merits, cause us to incur large costs to respond to, defend, and resolve the claims, and they divert the 
efforts and attention of our management and technical personnel from our business and operations. In addition, we may face claims 
based on the alleged theft or unauthorized use or disclosure of third-party trade secrets, confidential information, or end-user data that we 
obtain in conducting our business. Any such incidents and claims could severely disrupt our business, and we could suffer losses, 
including the cost of product recalls and returns, and reputational harm. Furthermore, we have agreed to indemnify customers for certain 
IP rights claims against them. IP rights claims against our customers could also limit demand for our products or disrupt our customers' 
businesses, which could in turn adversely affect our results of operations.

As a result of IP rights claims, we could:

▪

▪

pay monetary damages, payments to satisfy indemnification obligations, royalties, fines, or penalties;

stop manufacturing, using, selling, offering to sell, or importing products or technology subject to claims; 

▪

▪

▪

▪

▪

▪

▪

▪

▪

need to develop other products or technology not subject to claims, which could be time-consuming or costly; and/or

enter into settlement or license agreements, which may not be available on commercially reasonable terms and may be costly.

These IP rights claims could harm our competitive position, result in expenses, or require us to impair our assets. If we alter or stop 

production of affected items, our revenue could be harmed.

We rely on access to third-party IP, which may not be available to us on commercially reasonable terms or at all. Many of our products are 

designed to include third-party technology or implement industry standards, which may require licenses from third parties. In addition, 

from time to time, third parties notify us that they believe we are using their IP. There is no assurance that necessary licenses to such 

third-party IP can be obtained on commercially reasonable terms or at all, or that our existing licenses to third-party IP will continue to be 

available on commercially reasonable terms or at all. Failure to obtain the right to use third-party technology, or to license IP on 

commercially reasonable terms, could preclude us from selling certain products or otherwise have a material adverse impact on our 

financial condition and operating results. To the extent our products include software that contains or is derived from open-source 

software, we may be required to make the software's source code publicly available and/or license the software under open-source 

licensing terms.

We are subject to risks associated with litigation and regulatory matters. From time to time, we face legal claims or regulatory matters 

involving stockholder, consumer, competition, commercial, IP, labor and employment, compliance, and other issues on a global basis. As 

described in "Note 19: Commitments and Contingencies" within the Consolidated Financial Statements, we are engaged in a number of 

litigation and regulatory matters. Litigation and regulatory proceedings are inherently uncertain, and adverse rulings, excessive verdicts, or 

other events could occur, including monetary damages, fines, penalties, or an injunction stopping us from manufacturing or selling certain 

products, engaging in certain business practices, or requiring other remedies, such as compulsory licensing of patents. An unfavorable 

outcome can result in a material adverse impact on our business, financial condition, and results of operations. Regardless of the 

outcome, litigation and regulatory proceedings can be costly, time-consuming, disruptive to our operations, harmful to our reputation, and 

distracting to management.

We must attract, retain, and motivate key employees. 

Hiring and retaining qualified executives, scientists, engineers, technical staff, and sales representatives are critical to our business. The 

competition for highly skilled employees in our industry is increasingly intense. Competitors for technical talent increasingly seek to hire 

our employees, and the increased availability of work-from-home arrangements, accelerated by the COVID-19 pandemic, has both 

intensified and expanded competition. In addition, changes in immigration policies may further limit the pool of available talent and impair 

our ability to recruit and hire technical and professional talent. We have intensified our efforts to recruit and retain talent. These efforts 

have increased our expenses, and they may not be successful in attracting, retaining, and motivating the workforce necessary to deliver 

on our strategy. Changes in employment-related laws applicable to our workforce practices may also result in increased expenses and 

less flexibility in how we meet our changing workforce needs. To help attract, retain, and motivate qualified employees, we use share-

based awards, such as RSUs, and performance-based cash incentive awards. Sustained declines in our stock price, or lower stock price 

performance relative to competitors, can reduce the retention value of our share-based awards. Our employee hiring and retention also 

depend on our ability to build and maintain a diverse and inclusive workplace culture and be viewed as an employer of choice. To the 

extent our compensation programs and workplace culture are not viewed as competitive, our ability to attract, retain, and motivate 

employees can be weakened, which could harm our results of operations. 

Changes in our management team can also disrupt our business. For example, we appointed a new CEO effective in February 2021 and 

a new CFO in January 2022 and made several other changes to our senior leadership during the past year. The failure to successfully 

transition and assimilate key employees could adversely affect our results of operations. To the extent we do not effectively hire, onboard, 

retain, and motivate key employees, our business can be harmed.

We are subject to risks associated with our strategic transactions.

Our acquisitions, divestitures, and other strategic transactions could fail to achieve our financial or strategic objectives, disrupt our 

ongoing business, and adversely impact our results of operations. Strategic transactions are an important component of our financial 

capital allocation strategy. We routinely evaluate opportunities and enter into agreements for possible acquisitions, divestitures, and other 

strategic transactions. These transactions involve numerous risks, including:

our inability to identify opportunities in a timely manner or on terms acceptable to us;

failure of the transaction to advance our business strategy and failure of its anticipated benefits to materialize;

disruption of our ongoing operations and diversion of our management's attention;

failure to complete a transaction in a timely manner, if at all, due to our inability to obtain required government or other approvals at all 

or without materially burdensome conditions, IP disputes or other litigation, difficulty in obtaining financing on terms acceptable to us, 

or other unforeseen factors;

restructuring charges;

businesses;

technology;

our failure to realize a satisfactory return on our investment, potentially resulting in an impairment of goodwill and other assets, and 

our inability to effectively enter new market segments through our strategic transactions or retain customers and partners of acquired 

our inability to retain key personnel of acquired businesses or our difficulty in integrating employees, business systems, and 

Other Key Information

60

Other Key Information

63

Theft, loss, or misuse of personal data about our employees, customers, or other third parties could increase our expenses, damage our 

reputation, or result in legal or regulatory proceedings. The theft, loss, or misuse of personal data collected, used, stored, or transferred by 

us to run our business, including data stored with vendors or other third parties, could result in significantly increased business and 

security costs or costs related to defending legal claims. We anticipate that our collection of such personal data will increase as we enter 

into the MaaS market in our Mobileye business, and it may increase as we enter into other new or adjacent businesses. Global privacy 

legislation, enforcement, and policy activity in this area are rapidly expanding and creating a complex regulatory compliance environment. 

Costs to comply with and implement these privacy-related and data protection measures could be significant, and noncompliance could 

expose us to significant monetary penalties, damage to our reputation, suspension of online services or sites in certain countries, and 

even criminal sanctions. Even our inadvertent failure to comply with federal, state, or international privacy-related or data-protection laws 

and regulations could result in audits, regulatory inquiries, or proceedings against us by governmental entities or other third parties.

We are subject to IP risks and risks associated with litigation and regulatory proceedings. 

We cannot always protect our IP or enforce our IP rights. We regard our patents, copyrights, trade secrets, and other IP rights as 

important to the success of our business. We rely on IP law—as well as confidentiality and licensing agreements with our customers, 

employees, technology development partners, and others—to protect our IP and IP rights. Our ability to enforce these rights is subject to 

general litigation risks, as well as uncertainty as to the enforceability of our IP rights in various countries. We are not always able to obtain 

protection for our IP or enforce or protect our IP rights. Enforcement is costly and time-consuming and can divert management attention. 

When we seek to enforce our rights, we may be subject to claims that our IP rights are invalid, not enforceable, or licensed to an opposing 

party. Our assertion of IP rights may result in another party seeking to assert claims against us, which could harm our business. From time 

to time, governments adopt regulations—and governments or courts render decisions—requiring compulsory licensing of IP rights, or 

governments require products to meet standards that favor local companies. Our inability to enforce our IP rights under any of these 

circumstances can harm our competitive position and business. In some cases, our IP rights can offer inadequate protection for our 

innovations. In addition, the theft or unauthorized use or publication of our trade secrets and other confidential business information could 

harm our competitive position and reduce acceptance of our products; as a result, the value of our investment in R&D, product 

development, and marketing could be reduced. This risk is heightened as competitors for technical talent increasingly seek to hire our 

employees.

Our licenses with other companies and participation in industry initiatives at times allow competitors to use some of our patent rights. 

Technology companies often bilaterally license patents between each other to settle disputes or as part of business agreements. Some of 

our competitors have in the past had, and may in the future have, licenses to some of our patents, and under current case law, some of 

the licenses can exhaust our patent rights as to licensed product sales under some circumstances. Our participation in industry standards 

organizations or with other industry initiatives at times requires us to offer to license our patents to companies that adopt industry-standard 

specifications. Depending on the rules of the organization, government regulations, or court decisions, we sometimes have to grant 

licenses to some of our patents for little or no cost, and as a result, we may be unable to enforce certain patents against others, and the 

value of our IP rights may be impaired.

Third parties assert claims based on IP rights against us and our products, which could harm our business. We face claims based on IP 

rights from individuals, companies, non-practicing entities, academic and research institutions, and other parties, including claims from 

those who have aggregated patents acquired from multiple sources to form a new, larger portfolio to assert claims against us and other 

companies. Additionally, large patent portfolio owners sometimes divest portions of their portfolios to more than one individual or company, 

increasing the number of parties who own IP rights previously all held by a single party. We have seen an increase in patent assertions 

and lawsuits initiated by well-funded non-practicing entities, including entities funded by investment firms and other third parties. In some 

instances, these entities have filed multi-jurisdiction litigation seeking large monetary damages and/or injunctions against us. These 

lawsuits can increase our cost of doing business and could disrupt our operations if they succeed in blocking the trade of our products. 

For example, in the multi-jurisdiction litigation brought against us by VLSI, a jury in one of the pending US federal court cases returned a 

verdict in February 2021 awarding approximately $2.2 billion in damages to VLSI, as discussed in Note 19: Commitments and 

Contingencies within the Consolidated Financial Statements. The patent litigation environment has also become more challenging due to 

the emergence of venues adopting procedural and substantive rules that make them more favorable for patent asserters, including the 

availability of injunctive relief for non-practicing entities, and the US Patent and Trademark Office’s reduction of inter partes patent review  

under the America Invents Act. As a result, we believe we are facing a more hostile IP litigation environment.

We are typically engaged in a number of disputes involving IP rights. Claims that our products, technologies, or processes infringe the IP 

rights of others, regardless of their merits, cause us to incur large costs to respond to, defend, and resolve the claims, and they divert the 

efforts and attention of our management and technical personnel from our business and operations. In addition, we may face claims 

based on the alleged theft or unauthorized use or disclosure of third-party trade secrets, confidential information, or end-user data that we 

obtain in conducting our business. Any such incidents and claims could severely disrupt our business, and we could suffer losses, 

including the cost of product recalls and returns, and reputational harm. Furthermore, we have agreed to indemnify customers for certain 

IP rights claims against them. IP rights claims against our customers could also limit demand for our products or disrupt our customers' 

businesses, which could in turn adversely affect our results of operations.

As a result of IP rights claims, we could:

▪

▪

pay monetary damages, payments to satisfy indemnification obligations, royalties, fines, or penalties;

stop manufacturing, using, selling, offering to sell, or importing products or technology subject to claims; 

▪

▪

need to develop other products or technology not subject to claims, which could be time-consuming or costly; and/or

enter into settlement or license agreements, which may not be available on commercially reasonable terms and may be costly.

These IP rights claims could harm our competitive position, result in expenses, or require us to impair our assets. If we alter or stop 
production of affected items, our revenue could be harmed.

We rely on access to third-party IP, which may not be available to us on commercially reasonable terms or at all. Many of our products are 
designed to include third-party technology or implement industry standards, which may require licenses from third parties. In addition, 
from time to time, third parties notify us that they believe we are using their IP. There is no assurance that necessary licenses to such 
third-party IP can be obtained on commercially reasonable terms or at all, or that our existing licenses to third-party IP will continue to be 
available on commercially reasonable terms or at all. Failure to obtain the right to use third-party technology, or to license IP on 
commercially reasonable terms, could preclude us from selling certain products or otherwise have a material adverse impact on our 
financial condition and operating results. To the extent our products include software that contains or is derived from open-source 
software, we may be required to make the software's source code publicly available and/or license the software under open-source 
licensing terms.

We are subject to risks associated with litigation and regulatory matters. From time to time, we face legal claims or regulatory matters 
involving stockholder, consumer, competition, commercial, IP, labor and employment, compliance, and other issues on a global basis. As 
described in "Note 19: Commitments and Contingencies" within the Consolidated Financial Statements, we are engaged in a number of 
litigation and regulatory matters. Litigation and regulatory proceedings are inherently uncertain, and adverse rulings, excessive verdicts, or 
other events could occur, including monetary damages, fines, penalties, or an injunction stopping us from manufacturing or selling certain 
products, engaging in certain business practices, or requiring other remedies, such as compulsory licensing of patents. An unfavorable 
outcome can result in a material adverse impact on our business, financial condition, and results of operations. Regardless of the 
outcome, litigation and regulatory proceedings can be costly, time-consuming, disruptive to our operations, harmful to our reputation, and 
distracting to management.

We must attract, retain, and motivate key employees. 

Hiring and retaining qualified executives, scientists, engineers, technical staff, and sales representatives are critical to our business. The 
competition for highly skilled employees in our industry is increasingly intense. Competitors for technical talent increasingly seek to hire 
our employees, and the increased availability of work-from-home arrangements, accelerated by the COVID-19 pandemic, has both 
intensified and expanded competition. In addition, changes in immigration policies may further limit the pool of available talent and impair 
our ability to recruit and hire technical and professional talent. We have intensified our efforts to recruit and retain talent. These efforts 
have increased our expenses, and they may not be successful in attracting, retaining, and motivating the workforce necessary to deliver 
on our strategy. Changes in employment-related laws applicable to our workforce practices may also result in increased expenses and 
less flexibility in how we meet our changing workforce needs. To help attract, retain, and motivate qualified employees, we use share-
based awards, such as RSUs, and performance-based cash incentive awards. Sustained declines in our stock price, or lower stock price 
performance relative to competitors, can reduce the retention value of our share-based awards. Our employee hiring and retention also 
depend on our ability to build and maintain a diverse and inclusive workplace culture and be viewed as an employer of choice. To the 
extent our compensation programs and workplace culture are not viewed as competitive, our ability to attract, retain, and motivate 
employees can be weakened, which could harm our results of operations. 

Changes in our management team can also disrupt our business. For example, we appointed a new CEO effective in February 2021 and 
a new CFO in January 2022 and made several other changes to our senior leadership during the past year. The failure to successfully 
transition and assimilate key employees could adversely affect our results of operations. To the extent we do not effectively hire, onboard, 
retain, and motivate key employees, our business can be harmed.

We are subject to risks associated with our strategic transactions.

Our acquisitions, divestitures, and other strategic transactions could fail to achieve our financial or strategic objectives, disrupt our 
ongoing business, and adversely impact our results of operations. Strategic transactions are an important component of our financial 
capital allocation strategy. We routinely evaluate opportunities and enter into agreements for possible acquisitions, divestitures, and other 
strategic transactions. These transactions involve numerous risks, including:

▪

▪

▪

▪

▪

▪

▪

our inability to identify opportunities in a timely manner or on terms acceptable to us;

failure of the transaction to advance our business strategy and failure of its anticipated benefits to materialize;

disruption of our ongoing operations and diversion of our management's attention;

failure to complete a transaction in a timely manner, if at all, due to our inability to obtain required government or other approvals at all 
or without materially burdensome conditions, IP disputes or other litigation, difficulty in obtaining financing on terms acceptable to us, 
or other unforeseen factors;

our failure to realize a satisfactory return on our investment, potentially resulting in an impairment of goodwill and other assets, and 
restructuring charges;

our inability to effectively enter new market segments through our strategic transactions or retain customers and partners of acquired 
businesses;

our inability to retain key personnel of acquired businesses or our difficulty in integrating employees, business systems, and 
technology;

Other Key Information

62

Other Key Information

61

▪

▪

▪

controls, processes, and procedures of acquired businesses that do not adequately ensure compliance with laws and regulations, 
and our failure to identify compliance issues or liabilities;

our failure to identify, or our underestimation of, commitments, liabilities, and other risks associated with acquired businesses or 
assets; and

the potential for our acquisitions to result in dilutive issuances of our equity securities or significant additional debt.

Any of these risks could have a material adverse effect on our business, results of operations, financial condition, or cash flows, 
particularly in the case of a large acquisition or several concurrent acquisitions. Moreover, our resources are limited and our decision to 
pursue a transaction has opportunity costs; accordingly, if we pursue a particular transaction, we at times need to forgo the prospect of 
entering into other transactions that could help us achieve our financial or strategic objectives. 

Where an existing investment does not strategically align to our key priorities, we routinely evaluate opportunities for possible divestitures 
and other options. We may not realize the anticipated benefits of divestitures due to risks that include unfavorable prices and terms; 
changes in market conditions or geopolitical conditions affecting the regions or industries in which we or counterparties operate; failure to 
receive regulatory or governmental approvals; limitations or restrictions due to regulatory or governmental approvals, litigation, contractual 
terms, or other conditions; delays in closing; lack of support by third parties; actions by competitors; adverse effects on our business 
relationships, operating results, or business due to the announcement and pendency of such transactions; and continued financial 
obligations, unanticipated liabilities, or transition costs associated with such transactions. In some cases, we are not able to divest 
investments on acceptable terms or at all.

We invest in public and private companies and do not always realize a return on our investments. We make investments in public and 
private companies to further our strategic and financial objectives and to support certain key business initiatives. These companies can 
include early-stage companies still defining their strategic direction. Many of the instruments in which we invest are non-marketable and 
illiquid at the time of our initial investment, and we are not always able to achieve a return in a timely fashion, if at all. Our ability to realize 
a return on our investment in a private company, if any, is typically dependent on the company participating in a liquidity event, such as a 
public offering or acquisition. To the extent any of the companies in which we invest are not successful, which at times includes 
bankruptcy, we could recognize an impairment and/or lose all or part of our investment.

There are risks associated with our previously-announced proposed IPO of Mobileye. We announced that we intend to take Mobileye 
public in the US via an IPO of newly issued Mobileye stock, and that we expect to retain majority ownership of Mobileye following the 
completion of the IPO. The IPO may not be completed in our expected timeframe, or at all, due to factors that include adverse changes in 
economic or market conditions or in our business; delays in regulatory, stock exchange, or other approvals; loss of Mobileye key 
employees, and changes in our business strategy. If we do not complete the IPO, our ability to retain and attract Mobileye employees 
could be adversely affected, and we will have incurred expenses that we will be unable to recover, and for which we will not receive any 
benefit. If completed, the IPO may not produce any increase for our stockholders in the market value of their holdings in our company. In 
addition, the market price of our common stock could be more volatile after the IPO.

We are subject to sales-related risks. 

We face risks related to sales through distributors and other third parties. We sell a significant portion of our products through third parties 
such as distributors, value-added resellers, and channel partners (collectively referred to as distributors), as well as OEMs and ODMs. We 
depend on many distributors to help us create end-customer demand, provide technical support and other value-added services to 
customers, fill customer orders, and stock our products. At times, we rely on one or more key distributors for a product, and a material 
change in our relationship with one or more of these distributors or their failure to perform as expected could reduce our revenue. Our 
ability to add or replace distributors for some of our products is limited. In addition, our distributors' expertise in the determination and 
stocking of acceptable inventory levels for some of our products is not always easily transferable to a new distributor; as a result, end 
customers may be hesitant to accept the addition or replacement of a distributor. Using third parties for distribution exposes us to many 
risks, including competitive pressure and concentration, credit, and compliance risks. Distributors and other third parties sell products that 
compete with our products, and we sometimes need to provide financial and other incentives to focus them on the sale of our products. 
From time to time, they face financial difficulties, including bankruptcy, which could harm our collection of accounts receivable and 
financial results. Violations of the Foreign Corrupt Practices Act or similar laws by distributors or other third-party intermediaries could 
have a material impact on our business. Failure to manage risks related to our use of distributors and other third parties may reduce 
sales, increase expenses, and weaken our competitive position.

From time to time, our products are resold by third parties in an unauthorized "gray market." Gray market products can distort demand 
and pricing dynamics in our distribution channel and certain geographies, which at times adversely affects our revenue opportunities. 
Gray market activity is difficult to monitor and can make forecasting demand more challenging. Gray market products also sometimes 
include parts that have been altered or damaged, and our reputation may be harmed when these products fail or are found to be 
substandard.

We receive a significant portion of our revenue from a limited number of customers. Collectively, our three largest customers accounted 
for 43% of our net revenue in 2021 and 39% of our net revenue in 2020. We expect a small number of customers will continue to account 
for a significant portion of our revenue in the foreseeable future.

Industry trends, such as the increasing shift of data center workloads to the public cloud, have increased the significance and purchasing 

power of certain customers, particularly cloud service providers, in some of our data center-focused businesses. The cloud and cloud 

applications represent a new and increasingly demanding computing environment. The further consolidation of computing workloads in 

the cloud, and consolidation among cloud service providers, can heighten the competitive importance of factors such as collaboration and 

customization with cloud service provider customers to optimize products for their environments; optimization for cloud services and 

applications; product performance; energy efficiency; feature differentiation; product quality, reliability, and factors affecting server uptime; 

and product security and security features. Our competitive position can be eroded to the extent we do not execute effectively across 

these factors. We are operating in an increasingly competitive environment, including in serving cloud service provider customers, and the 

competitive environment adversely affected our results in DCG in 2021. 

Some cloud service provider customers have also internally developed, and may continue to develop, their own semiconductors, including 

designs customized for their specific computing workloads. In addition, cloud services can be marketed to end users based on service 

levels or features rather than hardware specifications, or they can abstract hardware under layers of software, which can make it more 

difficult to differentiate our products to customers and end users. The shift of data center workloads to the cloud has also adversely 

affected, and may continue to affect, sales to enterprise and government market segment customers when end users have elected to 

migrate workloads. To the extent we differentiate our products through customization to meet cloud customer specifications, order 

changes, delays, or cancellations may result in non-recoverable costs. 

The loss of a key customer, a substantial reduction in sales to them, or changes in the timing of their orders can lead to a reduction in our 

revenue, increase the volatility of our results, and harm our results of operations and financial condition. For more information about our 

customers, including customers who accounted for greater than 10% of our net consolidated revenue, see "Note 3: Operating Segments" 

within the Consolidated Financial Statements.

We face risks related to transactions with government entities. We receive proceeds from US federal, state, local, and foreign government 

entities associated with grants, incentives, and sales of our products and services. Government demand and payment are often affected 

by public sector budgetary cycles and funding authorizations, including, with respect to US government contracts, congressional approval 

of appropriations. Government contracts are subject to procurement laws and regulations relating to the award, administration, and 

performance of those contracts, as well as oversight and penalties for violations. For example, certain agreements with the US 

government are subject to special rules on accounting, IP rights, expenses, reviews, information handling, security, and/or employees, 

and failure to comply with these rules could result in civil and criminal penalties and sanctions, including termination of contracts, fines, 

and suspension or debarment from future business with the US government.

▪

▪

▪

▪

▪

▪

▪

▪

▪

▪

Changes in our effective tax rate may reduce our net income.

A number of factors can increase our effective tax rate, which could reduce our net income, including: 

changes in the volume and mix of profits earned and location of assets across jurisdictions with varying tax rates;

the resolution of issues arising from tax audits, including payment of interest and penalties;

changes in the valuation of our deferred tax assets and liabilities, and in deferred tax valuation allowances;

adjustments to income taxes upon finalization of tax returns;

increases in expenses not deductible for tax purposes, including impairments of goodwill;

changes in available tax credits;

changes in our ability to secure new, or renew existing, tax holidays and incentives;

changes in US federal, state, or foreign tax laws or their interpretation, including changes in the US to the taxation of manufacturing 

enterprises and of non-US income and expenses and changes resulting from the adoption by countries of OECD recommendations 

or other legislative actions;

changes in accounting standards; and

upon repatriation.

our decision to repatriate non-US earnings for which we have not previously provided for local country withholding taxes incurred 

We have fluctuations in the amount and frequency of our stock repurchases. 

We are not obligated to make repurchases under our stock repurchase program. The amount, timing, and execution of our repurchases 

fluctuate based on factors that include prioritizing cash for other purposes, such as investing in our business, including operational 

spending, capital spending, and acquisitions, and returning cash to our stockholders as dividend payments. Our stock repurchase 

program may be suspended or terminated at any time. Moreover, we cannot guarantee that repurchases will enhance long-term 

stockholder value. We expect our future stock repurchases to be significantly below our levels from the last few years. 

Other Key Information

62

Other Key Information

65

▪

▪

▪

assets; and

controls, processes, and procedures of acquired businesses that do not adequately ensure compliance with laws and regulations, 

and our failure to identify compliance issues or liabilities;

our failure to identify, or our underestimation of, commitments, liabilities, and other risks associated with acquired businesses or 

the potential for our acquisitions to result in dilutive issuances of our equity securities or significant additional debt.

Any of these risks could have a material adverse effect on our business, results of operations, financial condition, or cash flows, 

particularly in the case of a large acquisition or several concurrent acquisitions. Moreover, our resources are limited and our decision to 

pursue a transaction has opportunity costs; accordingly, if we pursue a particular transaction, we at times need to forgo the prospect of 

entering into other transactions that could help us achieve our financial or strategic objectives. 

Where an existing investment does not strategically align to our key priorities, we routinely evaluate opportunities for possible divestitures 

and other options. We may not realize the anticipated benefits of divestitures due to risks that include unfavorable prices and terms; 

changes in market conditions or geopolitical conditions affecting the regions or industries in which we or counterparties operate; failure to 

receive regulatory or governmental approvals; limitations or restrictions due to regulatory or governmental approvals, litigation, contractual 

terms, or other conditions; delays in closing; lack of support by third parties; actions by competitors; adverse effects on our business 

relationships, operating results, or business due to the announcement and pendency of such transactions; and continued financial 

obligations, unanticipated liabilities, or transition costs associated with such transactions. In some cases, we are not able to divest 

investments on acceptable terms or at all.

We invest in public and private companies and do not always realize a return on our investments. We make investments in public and 

private companies to further our strategic and financial objectives and to support certain key business initiatives. These companies can 

include early-stage companies still defining their strategic direction. Many of the instruments in which we invest are non-marketable and 

illiquid at the time of our initial investment, and we are not always able to achieve a return in a timely fashion, if at all. Our ability to realize 

a return on our investment in a private company, if any, is typically dependent on the company participating in a liquidity event, such as a 

public offering or acquisition. To the extent any of the companies in which we invest are not successful, which at times includes 

bankruptcy, we could recognize an impairment and/or lose all or part of our investment.

There are risks associated with our previously-announced proposed IPO of Mobileye. We announced that we intend to take Mobileye 

public in the US via an IPO of newly issued Mobileye stock, and that we expect to retain majority ownership of Mobileye following the 

completion of the IPO. The IPO may not be completed in our expected timeframe, or at all, due to factors that include adverse changes in 

economic or market conditions or in our business; delays in regulatory, stock exchange, or other approvals; loss of Mobileye key 

employees, and changes in our business strategy. If we do not complete the IPO, our ability to retain and attract Mobileye employees 

could be adversely affected, and we will have incurred expenses that we will be unable to recover, and for which we will not receive any 

benefit. If completed, the IPO may not produce any increase for our stockholders in the market value of their holdings in our company. In 

addition, the market price of our common stock could be more volatile after the IPO.

We are subject to sales-related risks. 

We face risks related to sales through distributors and other third parties. We sell a significant portion of our products through third parties 

such as distributors, value-added resellers, and channel partners (collectively referred to as distributors), as well as OEMs and ODMs. We 

depend on many distributors to help us create end-customer demand, provide technical support and other value-added services to 

customers, fill customer orders, and stock our products. At times, we rely on one or more key distributors for a product, and a material 

change in our relationship with one or more of these distributors or their failure to perform as expected could reduce our revenue. Our 

ability to add or replace distributors for some of our products is limited. In addition, our distributors' expertise in the determination and 

stocking of acceptable inventory levels for some of our products is not always easily transferable to a new distributor; as a result, end 

customers may be hesitant to accept the addition or replacement of a distributor. Using third parties for distribution exposes us to many 

risks, including competitive pressure and concentration, credit, and compliance risks. Distributors and other third parties sell products that 

compete with our products, and we sometimes need to provide financial and other incentives to focus them on the sale of our products. 

From time to time, they face financial difficulties, including bankruptcy, which could harm our collection of accounts receivable and 

financial results. Violations of the Foreign Corrupt Practices Act or similar laws by distributors or other third-party intermediaries could 

have a material impact on our business. Failure to manage risks related to our use of distributors and other third parties may reduce 

sales, increase expenses, and weaken our competitive position.

From time to time, our products are resold by third parties in an unauthorized "gray market." Gray market products can distort demand 

and pricing dynamics in our distribution channel and certain geographies, which at times adversely affects our revenue opportunities. 

Gray market activity is difficult to monitor and can make forecasting demand more challenging. Gray market products also sometimes 

include parts that have been altered or damaged, and our reputation may be harmed when these products fail or are found to be 

substandard.

We receive a significant portion of our revenue from a limited number of customers. Collectively, our three largest customers accounted 

for 43% of our net revenue in 2021 and 39% of our net revenue in 2020. We expect a small number of customers will continue to account 

for a significant portion of our revenue in the foreseeable future.

Industry trends, such as the increasing shift of data center workloads to the public cloud, have increased the significance and purchasing 
power of certain customers, particularly cloud service providers, in some of our data center-focused businesses. The cloud and cloud 
applications represent a new and increasingly demanding computing environment. The further consolidation of computing workloads in 
the cloud, and consolidation among cloud service providers, can heighten the competitive importance of factors such as collaboration and 
customization with cloud service provider customers to optimize products for their environments; optimization for cloud services and 
applications; product performance; energy efficiency; feature differentiation; product quality, reliability, and factors affecting server uptime; 
and product security and security features. Our competitive position can be eroded to the extent we do not execute effectively across 
these factors. We are operating in an increasingly competitive environment, including in serving cloud service provider customers, and the 
competitive environment adversely affected our results in DCG in 2021. 

Some cloud service provider customers have also internally developed, and may continue to develop, their own semiconductors, including 
designs customized for their specific computing workloads. In addition, cloud services can be marketed to end users based on service 
levels or features rather than hardware specifications, or they can abstract hardware under layers of software, which can make it more 
difficult to differentiate our products to customers and end users. The shift of data center workloads to the cloud has also adversely 
affected, and may continue to affect, sales to enterprise and government market segment customers when end users have elected to 
migrate workloads. To the extent we differentiate our products through customization to meet cloud customer specifications, order 
changes, delays, or cancellations may result in non-recoverable costs. 

The loss of a key customer, a substantial reduction in sales to them, or changes in the timing of their orders can lead to a reduction in our 
revenue, increase the volatility of our results, and harm our results of operations and financial condition. For more information about our 
customers, including customers who accounted for greater than 10% of our net consolidated revenue, see "Note 3: Operating Segments" 
within the Consolidated Financial Statements.

We face risks related to transactions with government entities. We receive proceeds from US federal, state, local, and foreign government 
entities associated with grants, incentives, and sales of our products and services. Government demand and payment are often affected 
by public sector budgetary cycles and funding authorizations, including, with respect to US government contracts, congressional approval 
of appropriations. Government contracts are subject to procurement laws and regulations relating to the award, administration, and 
performance of those contracts, as well as oversight and penalties for violations. For example, certain agreements with the US 
government are subject to special rules on accounting, IP rights, expenses, reviews, information handling, security, and/or employees, 
and failure to comply with these rules could result in civil and criminal penalties and sanctions, including termination of contracts, fines, 
and suspension or debarment from future business with the US government.

Changes in our effective tax rate may reduce our net income.

A number of factors can increase our effective tax rate, which could reduce our net income, including: 

▪

▪

▪

▪

▪

▪

▪

▪

▪

▪

changes in the volume and mix of profits earned and location of assets across jurisdictions with varying tax rates;

the resolution of issues arising from tax audits, including payment of interest and penalties;

changes in the valuation of our deferred tax assets and liabilities, and in deferred tax valuation allowances;

adjustments to income taxes upon finalization of tax returns;

increases in expenses not deductible for tax purposes, including impairments of goodwill;

changes in available tax credits;

changes in our ability to secure new, or renew existing, tax holidays and incentives;

changes in US federal, state, or foreign tax laws or their interpretation, including changes in the US to the taxation of manufacturing 
enterprises and of non-US income and expenses and changes resulting from the adoption by countries of OECD recommendations 
or other legislative actions;

changes in accounting standards; and

our decision to repatriate non-US earnings for which we have not previously provided for local country withholding taxes incurred 
upon repatriation.

We have fluctuations in the amount and frequency of our stock repurchases. 

We are not obligated to make repurchases under our stock repurchase program. The amount, timing, and execution of our repurchases 
fluctuate based on factors that include prioritizing cash for other purposes, such as investing in our business, including operational 
spending, capital spending, and acquisitions, and returning cash to our stockholders as dividend payments. Our stock repurchase 
program may be suspended or terminated at any time. Moreover, we cannot guarantee that repurchases will enhance long-term 
stockholder value. We expect our future stock repurchases to be significantly below our levels from the last few years. 

Other Key Information

64

Other Key Information

63

Stock Performance Graph

The graph and table that follow compare the cumulative TSR of Intel's common stock with the cumulative total return of the S&P 100 

Index*, the S&P 500 Index*, the S&P 500 IT Index*, and the SOX Index*1 for the five years ended December 25, 2021. The cumulative 

returns shown on the graph are based on Intel's fiscal year. 

Comparison of Five-Year Cumulative Return for

 Intel, S&P 100 Index, S&P 500 Index, S&P 500 IT Index, and SOX Index

Properties

As of December 25, 2021, our major facilities consisted of:

(Square Feet in Millions)

Owned facilities

Leased facilities

Total facilities

United
States

Other
Countries

Total

31 

1 

32 

24 

5 

29 

55 

6 

61 

Our principal executive offices are located in the US. For more information on our wafer fabrication and our assembly and test facilities, 
see "Manufacturing Capital" within Fundamentals of Our Business.

The facilities described above are suitable for our present purposes, and the productive capacity in our facilities is being utilized or being 
prepared for utilization as we continue to make investments to expand our manufacturing capacity.

We do not identify or allocate assets by operating segment, as they are interchangeable in nature and used by multiple operating 
segments. For information on net property, plant and equipment by country, see "Note 6: Other Financial Statement Details" within the 
Financial Statements and Supplemental Details.

Market for Our Common Stock

The principal US market on which Intel's common stock (symbol INTC) is traded is the Nasdaq Global Select Market. 

As of January 21, 2022, there were approximately 102,962 registered holders of record of Intel's common stock. A substantially greater 
number of holders of Intel common stock are "street name" or beneficial holders, whose shares of record are held by banks, brokers, and 
other financial institutions.

$500

$450

$400

$350

$300

$250

$200

$150

$100

2016

2017

2018

2019

2020

2021

Intel Corporation

SOX Index

S&P 100 Index

S&P 500 Index

S&P 500 IT Index

Years Ended

Intel Corporation

S&P 100 Index

S&P 500 Index

S&P 500 IT Index

SOX Index

Dec 31, 2016 Dec 30, 2017 Dec 29, 2018 Dec 28, 2019 Dec 26, 2020 Dec 25, 2021

$ 

$ 

$ 

$ 

$ 

100  $ 

100  $ 

100  $ 

100  $ 

100  $ 

131  $ 

122  $ 

122  $ 

139  $ 

141  $ 

136  $ 

116  $ 

115  $ 

137  $ 

131  $ 

179  $ 

156  $ 

154  $ 

209  $ 

217  $ 

144  $ 

186  $ 

179  $ 

297  $ 

326  $ 

161 

242 

231 

401 

472 

1  The graph and table assume that $100 was invested on the last day of trading for the fiscal year ended December 31, 2016 in Intel's common stock, 

the S&P 100 Index, S&P 500 Index, S&P 500 IT Index, and PHLX Semiconductor Sector Index (SOX), and that all dividends were reinvested.

Issuer Purchases of Equity Securities

We have an ongoing authorization, originally approved by our Board of Directors in 2005 and subsequently amended, to repurchase 

shares of our common stock in open market or negotiated transactions. As of December 25, 2021, we were authorized to repurchase up 

to $110.0 billion, of which $7.2 billion remained available. Common stock repurchase activity under our publicly announced stock 

repurchase program during 2021 was as follows:

December 27, 2020 - March 27, 2021

Period

Total

Total Number of

Shares Purchased

(In Millions)

Average Price

Paid Per Share

Dollar Value of Shares 

That May Yet Be 

Purchased Under the 

Program (In Millions)

61.12  $ 

7,243 

39.5  $ 

39.5 

We issue RSUs as part of our equity incentive plans. In our Consolidated Financial Statements, we treat shares of common stock withheld 

for tax purposes on behalf of our employees in connection with the vesting of RSUs as common stock repurchases because they reduce 

the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common 

stock repurchases under our authorized common stock repurchase program and are excluded from the preceding table. 

Other Key Information

64

Other Key Information

67

 
 
 
 
 
 
 
 
 
 
 
Properties

As of December 25, 2021, our major facilities consisted of:

(Square Feet in Millions)

Owned facilities

Leased facilities

Total facilities

United

States

Other

Countries

Total

31 

1 

32 

24 

5 

29 

55 

6 

61 

Our principal executive offices are located in the US. For more information on our wafer fabrication and our assembly and test facilities, 

see "Manufacturing Capital" within Fundamentals of Our Business.

The facilities described above are suitable for our present purposes, and the productive capacity in our facilities is being utilized or being 

prepared for utilization as we continue to make investments to expand our manufacturing capacity.

We do not identify or allocate assets by operating segment, as they are interchangeable in nature and used by multiple operating 

segments. For information on net property, plant and equipment by country, see "Note 6: Other Financial Statement Details" within the 

Financial Statements and Supplemental Details.

Market for Our Common Stock

The principal US market on which Intel's common stock (symbol INTC) is traded is the Nasdaq Global Select Market. 

As of January 21, 2022, there were approximately 102,962 registered holders of record of Intel's common stock. A substantially greater 

number of holders of Intel common stock are "street name" or beneficial holders, whose shares of record are held by banks, brokers, and 

other financial institutions.

Stock Performance Graph

The graph and table that follow compare the cumulative TSR of Intel's common stock with the cumulative total return of the S&P 100 
Index*, the S&P 500 Index*, the S&P 500 IT Index*, and the SOX Index*1 for the five years ended December 25, 2021. The cumulative 
returns shown on the graph are based on Intel's fiscal year. 

Comparison of Five-Year Cumulative Return for
 Intel, S&P 100 Index, S&P 500 Index, S&P 500 IT Index, and SOX Index

$500

$450

$400

$350

$300

$250

$200

$150

$100

2016

2017

2018

2019

2020

2021

Intel Corporation
SOX Index

S&P 100 Index

S&P 500 Index

S&P 500 IT Index

Years Ended

Intel Corporation

S&P 100 Index

S&P 500 Index

S&P 500 IT Index

SOX Index

Dec 31, 2016 Dec 30, 2017 Dec 29, 2018 Dec 28, 2019 Dec 26, 2020 Dec 25, 2021

$ 

$ 

$ 

$ 

$ 

100  $ 

100  $ 

100  $ 

100  $ 

100  $ 

131  $ 

122  $ 

122  $ 

139  $ 

141  $ 

136  $ 

116  $ 

115  $ 

137  $ 

131  $ 

179  $ 

156  $ 

154  $ 

209  $ 

217  $ 

144  $ 

186  $ 

179  $ 

297  $ 

326  $ 

161 

242 

231 

401 

472 

1  The graph and table assume that $100 was invested on the last day of trading for the fiscal year ended December 31, 2016 in Intel's common stock, 

the S&P 100 Index, S&P 500 Index, S&P 500 IT Index, and PHLX Semiconductor Sector Index (SOX), and that all dividends were reinvested.

Issuer Purchases of Equity Securities

We have an ongoing authorization, originally approved by our Board of Directors in 2005 and subsequently amended, to repurchase 
shares of our common stock in open market or negotiated transactions. As of December 25, 2021, we were authorized to repurchase up 
to $110.0 billion, of which $7.2 billion remained available. Common stock repurchase activity under our publicly announced stock 
repurchase program during 2021 was as follows:

Period

December 27, 2020 - March 27, 2021

Total

Total Number of
Shares Purchased
(In Millions)

Average Price
Paid Per Share

Dollar Value of Shares 
That May Yet Be 
Purchased Under the 
Program (In Millions)

39.5  $ 

39.5 

61.12  $ 

7,243 

We issue RSUs as part of our equity incentive plans. In our Consolidated Financial Statements, we treat shares of common stock withheld 
for tax purposes on behalf of our employees in connection with the vesting of RSUs as common stock repurchases because they reduce 
the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common 
stock repurchases under our authorized common stock repurchase program and are excluded from the preceding table. 

Other Key Information

66

Other Key Information

65

 
 
 
 
 
 
 
 
 
 
 
Information About Our Executive Officers

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Section 13(r) of the Exchange Act requires an issuer to disclose certain information in its periodic reports if it or any of its affiliates 

knowingly engaged in certain activities, transactions, or dealings with individuals or entities subject to specific US economic sanctions 

during the reporting period, even when the activities, transactions, or dealings are conducted in compliance with applicable law. On March 

2, 2021, the US Secretary of State designated the Federal Security Service of the Russian Federation (FSB) as a party subject to one 

such sanction. From time to time, our local subsidiary is required to engage with the FSB as a licensing authority and file documents in 

order to conduct business within the Russian Federation. All such dealings are explicitly authorized by General License 1B issued by the 

US Department of the Treasury’s Office of Foreign Assets Control (OFAC), and there are no gross revenues or net profits directly 

associated with any such dealings by us with the FSB. We plan to continue these activities as required to conduct business in the Russian 

Federation to the extent permitted by applicable law.

On April 15, 2021, the US Department of the Treasury designated Pozitiv Teknolodzhiz, AO (Positive Technologies), a Russian IT security 

firm, as a party subject to one of the sanctions specified in Section 13(r). Prior to the designation, we communicated with Positive 

Technologies regarding its IT security research and coordinated disclosure of security vulnerabilities identified by the firm. Based on a 

license issued by OFAC, we resumed such communications. There are no gross revenues or net profits directly associated with any such 

activities. We plan to continue these communications in accordance with the terms and conditions of the OFAC license.

Name 
Current Title

Age Experience

Patrick P. Gelsinger

60

Chief Executive Officer

Sandra L. Rivera

57

Executive Vice President 
and General Manager, 
Data Center and AI 
Group

Steven R. Rodgers

56

Executive Vice President 
and General Counsel

David Zinsner

53

Executive Vice President 
and Chief Financial 
Officer

Mr. Gelsinger has been our Chief Executive Officer and a member of our Board of Directors since 
February 2021. He joined Intel from VMware, Inc., a provider of cloud computing and virtualization 
software and services, where he served as Chief Executive Officer from September 2012 to 
February 2021. Prior to joining VMware, Mr. Gelsinger served as President and Chief Operating 
Officer, EMC Information Infrastructure Products at EMC Corp., a data storage, information security 
and cloud computing company, from September 2009 to August 2012. Mr. Gelsinger’s career began 
at Intel, where he spent 30 years before joining EMC Corp. During his initial tenure at Intel, Mr. 
Gelsinger served in a number of roles, including Senior Vice President and Co-General Manager of 
the Digital Enterprise Group from 2005 to September 2009, Senior Vice President, Chief Technology 
Officer from 2002 to 2005, and leader of Desktop Products Group prior to that. 

Ms. Rivera has served as our Executive Vice President and General Manager of the Data Center 
and AI Group since July 2021. In this role, she leads strategy and product development for our data 
center products, including Intel Xeon and FPGA products, and leads our overall AI strategy and 
product roadmap. Before her current role, Ms. Rivera served as our Chief People Officer from June 
2019 to July 2021. Prior to that, she oversaw strategy and product development for network 
infrastructure solutions as the General Manager of our Network Platforms Group from January 2015 
to June 2019, most recently as Senior Vice President and General Manager. Ms. Rivera joined Intel 
in 2000 and has served in a variety of marketing and business development positions. Before joining 
Intel, she held management positions with Dialogic Corporation and Catalyst Telecom, Inc. and was 
co-founder and president of The CTI Authority, Inc. She is a member of the board of directors of 
Equinix, Inc.

Mr. Rodgers has been our Executive Vice President and General Counsel since January 2017 and 
oversees our legal, government, and trade groups. He previously led our legal and government 
groups as Senior Vice President and General Counsel from January 2015 to January 2017 and as 
Corporate Vice President and General Counsel from June 2014 to January 2015. Mr. Rodgers joined 
Intel in 2000 and has held a number of roles in our legal department, including Corporate Vice 
President and Deputy General Counsel from January 2014 until his appointment as Intel's fifth 
General Counsel in June 2014. Prior to joining Intel, he was a litigation partner at the firm of Brown & 
Bain, P.A.

Mr. Zinsner joined Intel in January 2022 as our Executive Vice President and Chief Financial Officer, 
overseeing our global finance organization. He joined Intel from Micron Technology, Inc., a 
manufacturer of memory and storage products, where he most recently served as Executive Vice 
President and Chief Financial Officer. From February 2018 to October 2021, he served as Senior 
Vice President and Chief Financial Officer of Micron. Previously, from April 2017 to February 2018, 
he served as the President and Chief Operating Officer of Affirmed Networks, Inc. From January 
2009 to April 2017, he served as Senior Vice President of Finance and Chief Financial Officer of 
Analog Devices, Inc. From July 2005 to January 2009, Mr. Zinsner served as Senior Vice President 
and Chief Financial Officer of Intersil Corporation.

Availability of Company Information

Our Internet address is www.intel.com. We publish voluntary reports on our website that outline our performance with respect to corporate 
responsibility, including environmental, health, and safety compliance.

We use our Investor Relations website, www.intc.com, as a routine channel for distribution of important information, including news 
releases, information about upcoming webcasts, analyst presentations, financial information, corporate governance practices, and 
corporate responsibility information. We post our filings at www.intc.com the same day they are electronically filed with, or furnished to, 
the SEC, including our annual and quarterly reports on Forms 10-K and 10-Q and current reports on Form 8-K; our proxy statements; and 
any amendments to those reports or statements. We post our quarterly and annual earnings results at www.intc.com, and do not 
distribute our financial results via a news wire service. All such postings and filings are available on our Investor Relations website free of 
charge. In addition, our Investor Relations website allows interested persons to sign up to automatically receive e-mail alerts when we 
post financial information and issue press releases, and to receive information about upcoming events. 

The content on any website referred to in this Form 10-K is not incorporated by reference in this Form 10-K unless expressly noted.

Other Key Information

66

Other Key Information

69

Information About Our Executive Officers

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Section 13(r) of the Exchange Act requires an issuer to disclose certain information in its periodic reports if it or any of its affiliates 
knowingly engaged in certain activities, transactions, or dealings with individuals or entities subject to specific US economic sanctions 
during the reporting period, even when the activities, transactions, or dealings are conducted in compliance with applicable law. On March 
2, 2021, the US Secretary of State designated the Federal Security Service of the Russian Federation (FSB) as a party subject to one 
such sanction. From time to time, our local subsidiary is required to engage with the FSB as a licensing authority and file documents in 
order to conduct business within the Russian Federation. All such dealings are explicitly authorized by General License 1B issued by the 
US Department of the Treasury’s Office of Foreign Assets Control (OFAC), and there are no gross revenues or net profits directly 
associated with any such dealings by us with the FSB. We plan to continue these activities as required to conduct business in the Russian 
Federation to the extent permitted by applicable law.

On April 15, 2021, the US Department of the Treasury designated Pozitiv Teknolodzhiz, AO (Positive Technologies), a Russian IT security 
firm, as a party subject to one of the sanctions specified in Section 13(r). Prior to the designation, we communicated with Positive 
Technologies regarding its IT security research and coordinated disclosure of security vulnerabilities identified by the firm. Based on a 
license issued by OFAC, we resumed such communications. There are no gross revenues or net profits directly associated with any such 
activities. We plan to continue these communications in accordance with the terms and conditions of the OFAC license.

Name 

Current Title

Age Experience

Patrick P. Gelsinger

60

Chief Executive Officer

Mr. Gelsinger has been our Chief Executive Officer and a member of our Board of Directors since 

February 2021. He joined Intel from VMware, Inc., a provider of cloud computing and virtualization 

software and services, where he served as Chief Executive Officer from September 2012 to 

February 2021. Prior to joining VMware, Mr. Gelsinger served as President and Chief Operating 

Officer, EMC Information Infrastructure Products at EMC Corp., a data storage, information security 

and cloud computing company, from September 2009 to August 2012. Mr. Gelsinger’s career began 

at Intel, where he spent 30 years before joining EMC Corp. During his initial tenure at Intel, Mr. 

Gelsinger served in a number of roles, including Senior Vice President and Co-General Manager of 

the Digital Enterprise Group from 2005 to September 2009, Senior Vice President, Chief Technology 

Officer from 2002 to 2005, and leader of Desktop Products Group prior to that. 

Ms. Rivera has served as our Executive Vice President and General Manager of the Data Center 

and AI Group since July 2021. In this role, she leads strategy and product development for our data 

center products, including Intel Xeon and FPGA products, and leads our overall AI strategy and 

product roadmap. Before her current role, Ms. Rivera served as our Chief People Officer from June 

2019 to July 2021. Prior to that, she oversaw strategy and product development for network 

infrastructure solutions as the General Manager of our Network Platforms Group from January 2015 

to June 2019, most recently as Senior Vice President and General Manager. Ms. Rivera joined Intel 

in 2000 and has served in a variety of marketing and business development positions. Before joining 

Intel, she held management positions with Dialogic Corporation and Catalyst Telecom, Inc. and was 

co-founder and president of The CTI Authority, Inc. She is a member of the board of directors of 

Equinix, Inc.

Mr. Rodgers has been our Executive Vice President and General Counsel since January 2017 and 

oversees our legal, government, and trade groups. He previously led our legal and government 

groups as Senior Vice President and General Counsel from January 2015 to January 2017 and as 

Corporate Vice President and General Counsel from June 2014 to January 2015. Mr. Rodgers joined 

Intel in 2000 and has held a number of roles in our legal department, including Corporate Vice 

President and Deputy General Counsel from January 2014 until his appointment as Intel's fifth 

General Counsel in June 2014. Prior to joining Intel, he was a litigation partner at the firm of Brown & 

Bain, P.A.

Mr. Zinsner joined Intel in January 2022 as our Executive Vice President and Chief Financial Officer, 

overseeing our global finance organization. He joined Intel from Micron Technology, Inc., a 

manufacturer of memory and storage products, where he most recently served as Executive Vice 

President and Chief Financial Officer. From February 2018 to October 2021, he served as Senior 

Vice President and Chief Financial Officer of Micron. Previously, from April 2017 to February 2018, 

he served as the President and Chief Operating Officer of Affirmed Networks, Inc. From January 

2009 to April 2017, he served as Senior Vice President of Finance and Chief Financial Officer of 

Analog Devices, Inc. From July 2005 to January 2009, Mr. Zinsner served as Senior Vice President 

and Chief Financial Officer of Intersil Corporation.

Sandra L. Rivera

57

Executive Vice President 

and General Manager, 

Data Center and AI 

Group

Steven R. Rodgers

56

Executive Vice President 

and General Counsel

David Zinsner

53

Executive Vice President 

and Chief Financial 

Officer

Availability of Company Information

Our Internet address is www.intel.com. We publish voluntary reports on our website that outline our performance with respect to corporate 

responsibility, including environmental, health, and safety compliance.

We use our Investor Relations website, www.intc.com, as a routine channel for distribution of important information, including news 

releases, information about upcoming webcasts, analyst presentations, financial information, corporate governance practices, and 

corporate responsibility information. We post our filings at www.intc.com the same day they are electronically filed with, or furnished to, 

the SEC, including our annual and quarterly reports on Forms 10-K and 10-Q and current reports on Form 8-K; our proxy statements; and 

any amendments to those reports or statements. We post our quarterly and annual earnings results at www.intc.com, and do not 

distribute our financial results via a news wire service. All such postings and filings are available on our Investor Relations website free of 

charge. In addition, our Investor Relations website allows interested persons to sign up to automatically receive e-mail alerts when we 

post financial information and issue press releases, and to receive information about upcoming events. 

The content on any website referred to in this Form 10-K is not incorporated by reference in this Form 10-K unless expressly noted.

Other Key Information

68

Other Key Information

67

Financial Statements and Supplemental Details

We have defined certain terms and abbreviations used throughout our Form 10-K in "Key Terms" within this section.

Index to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42)

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Stockholders' Equity

Notes to Consolidated Financial Statements

Basis

Note 1: Basis of Presentation

Note 2: Accounting Policies

Performance and Operations

Note 3: Operating Segments

Note 4: Earnings Per Share

Note 5: Contract Liabilities 

Note 6: Other Financial Statement Details

Note 7: Restructuring and Other Charges

Note 8: Income Taxes

Investments, Long-term Assets, and Debt

Note 9: Investments

Note 10: Acquisitions and Divestitures

Note 11: Goodwill

Note 12: Identified Intangible Assets

Note 13: Borrowings

Note 14: Fair Value

Risk Management and Other

Note 15: Other Comprehensive Income (Loss)

Note 16: Derivative Financial Instruments

Note 17: Retirement Benefit Plans

Note 18: Employee Equity Incentive Plans

Note 19: Commitments and Contingencies

Key Terms

Index to Supplemental Details

Controls and Procedures

Exhibits

Form 10-K Cross-Reference Index

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Intel Corporation

Opinion on the Financial Statements

We have audited the accompanying Consolidated Balance Sheets of Intel Corporation (the Company) as of December 25, 2021 and 

December 26, 2020, the related Consolidated Statements of Income, Comprehensive Income, Cash Flows and Stockholders' Equity for 

each of the three years in the period ended December 25, 2021, and the related notes (collectively referred to as the "Consolidated 

Financial Statements"). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position 

of the Company at December 25, 2021 and December 26, 2020, and the results of its operations and its cash flows for each of the three 

years in the period ended December 25, 2021, in conformity with U.S. generally accepted accounting principles. 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 

the Company's internal control over financial reporting as of December 25, 2021, based on criteria established in Internal Control—

Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our 

report dated January 26, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the 

Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be 

independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of 

the Securities and Exchange Commission and the PCAOB. 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to 

obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our 

audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or 

fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding 

the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and 

significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our 

audits provide a reasonable basis for our opinion. 

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was 

communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to 

the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical 

audit matter does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by 

communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to 

which it relates.

Page

69

72

73

74

75

76

77

77

77

82

85

85

86

87

87

90

91

93

93

94

97

98

99

101

104

105

111

114

115

120

68

Auditor's Reports

71

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Stockholders' Equity

Notes to Consolidated Financial Statements

Basis

Note 1: Basis of Presentation

Note 2: Accounting Policies

Performance and Operations

Note 3: Operating Segments

Note 4: Earnings Per Share

Note 5: Contract Liabilities 

Note 6: Other Financial Statement Details

Note 7: Restructuring and Other Charges

Note 8: Income Taxes

Investments, Long-term Assets, and Debt

Note 9: Investments

Note 10: Acquisitions and Divestitures

Note 11: Goodwill

Note 12: Identified Intangible Assets

Note 13: Borrowings

Note 14: Fair Value

Risk Management and Other

Note 15: Other Comprehensive Income (Loss)

Note 16: Derivative Financial Instruments

Note 17: Retirement Benefit Plans

Note 18: Employee Equity Incentive Plans

Note 19: Commitments and Contingencies

Key Terms

Index to Supplemental Details

Controls and Procedures

Exhibits

Form 10-K Cross-Reference Index

71

74

75

76

77

78

79

79

79

84

87

87

88

89

89

92

93

95

95

96

99

100

101

103

106

107

113

116

117

122

Financial Statements and Supplemental Details

We have defined certain terms and abbreviations used throughout our Form 10-K in "Key Terms" within this section.

Index to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42)

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Intel Corporation

Page

Opinion on the Financial Statements

We have audited the accompanying Consolidated Balance Sheets of Intel Corporation (the Company) as of December 25, 2021 and 
December 26, 2020, the related Consolidated Statements of Income, Comprehensive Income, Cash Flows and Stockholders' Equity for 
each of the three years in the period ended December 25, 2021, and the related notes (collectively referred to as the "Consolidated 
Financial Statements"). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position 
of the Company at December 25, 2021 and December 26, 2020, and the results of its operations and its cash flows for each of the three 
years in the period ended December 25, 2021, in conformity with U.S. generally accepted accounting principles. 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 
the Company's internal control over financial reporting as of December 25, 2021, based on criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our 
report dated January 26, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the 
Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be 
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of 
the Securities and Exchange Commission and the PCAOB. 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our 
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or 
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding 
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and 
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our 
audits provide a reasonable basis for our opinion. 

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was 
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to 
the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical 
audit matter does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by 
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to 
which it relates.

70

Auditor's Reports

69

Description of the 
Matter

Inventory Valuation

The Company's net inventory totaled $10.8 billion as of December 25, 2021, representing 6.4% of total assets. 
As explained in "Note 2: Accounting Policies" within the Consolidated Financial Statements, the Company 
computes inventory cost on a first-in, first-out basis, and applies judgment in determining saleability of 
products and the valuation of inventories. The Company assesses inventory at each reporting date in order to 
assert that it is recorded at net realizable value, giving consideration to, among other factors: whether the 
products have achieved the substantive engineering milestones to qualify for sale to customers; the 
determination of normal capacity levels in its manufacturing process to determine which manufacturing 
overhead costs can be included in the valuation of inventory; whether the product is valued at the lower of cost 
or net realizable value; and the estimation of excess and obsolete inventory or that which is not of saleable 
quality. 

Auditing management's assessment of net realizable value for inventory was challenging because the 
determination of lower of cost or net realizable value and excess and obsolete inventory reserves is 
judgmental and considers a number of factors that are affected by market and economic conditions, such as 
customer forecasts, dynamic pricing environments, and industry supply and demand. Additionally, for certain 
new product launches there is limited historical data with which to evaluate forecasts.

thereon.

Basis for Opinion

How We Addressed 
the Matter in Our 
Audit

We evaluated and tested the design and operating effectiveness of the Company's internal controls over the 
costing of inventory, the determination of whether inventory is of saleable quality, the calculation of lower of 
cost or net realizable value reserves including related estimated costs and selling prices, and the 
determination of demand forecasts and related application against on hand inventory.

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the 

effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control Over 

Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our 

audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in 

accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and 

Our audit procedures included, among others, testing the significant assumptions (e.g., estimated product 
costs and selling prices, and product demand forecasts) and the underlying data used in management's 
inventory valuation assessment. We compared the significant assumptions used by management to current 
industry and economic trends. We assessed whether there were any potential sources of contrary information, 
including historical forecast accuracy or history of significant revisions to previously recorded inventory 
valuation adjustments, and performed sensitivity analyses over significant assumptions to evaluate the 
changes in inventory valuation that would result from changes in the assumptions.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to 

obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. 

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness 

exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such 

other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our 

 /s/ Ernst & Young LLP

We have served as the Company's auditor since 1968.

San Jose, California
January 26, 2022

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Intel Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Intel Corporation's internal control over financial reporting as of December 25, 2021, based on criteria established in 

Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 

framework), (the COSO criteria). In our opinion, Intel Corporation (the Company) maintained, in all material respects, effective internal 

control over financial reporting as of December 25, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 

the 2021 Consolidated Financial Statements of the Company and our report dated January 26, 2022 expressed an unqualified opinion 

the PCAOB. 

opinion.

statements. 

/s/ Ernst & Young LLP   

San Jose, California

January 26, 2022

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of 

financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting 

principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance 

of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance 

with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with 

authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely 

detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of 

any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 

conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

Auditor's Reports

70

Auditor's Reports

73

   
 
 
 
    
 
 
Inventory Valuation

Description of the 

Matter

The Company's net inventory totaled $10.8 billion as of December 25, 2021, representing 6.4% of total assets. 

As explained in "Note 2: Accounting Policies" within the Consolidated Financial Statements, the Company 

computes inventory cost on a first-in, first-out basis, and applies judgment in determining saleability of 

products and the valuation of inventories. The Company assesses inventory at each reporting date in order to 

assert that it is recorded at net realizable value, giving consideration to, among other factors: whether the 

products have achieved the substantive engineering milestones to qualify for sale to customers; the 

determination of normal capacity levels in its manufacturing process to determine which manufacturing 

overhead costs can be included in the valuation of inventory; whether the product is valued at the lower of cost 

or net realizable value; and the estimation of excess and obsolete inventory or that which is not of saleable 

quality. 

Auditing management's assessment of net realizable value for inventory was challenging because the 

determination of lower of cost or net realizable value and excess and obsolete inventory reserves is 

judgmental and considers a number of factors that are affected by market and economic conditions, such as 

customer forecasts, dynamic pricing environments, and industry supply and demand. Additionally, for certain 

new product launches there is limited historical data with which to evaluate forecasts.

How We Addressed 

the Matter in Our 

Audit

We evaluated and tested the design and operating effectiveness of the Company's internal controls over the 

costing of inventory, the determination of whether inventory is of saleable quality, the calculation of lower of 

cost or net realizable value reserves including related estimated costs and selling prices, and the 

determination of demand forecasts and related application against on hand inventory.

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Intel Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Intel Corporation's internal control over financial reporting as of December 25, 2021, based on criteria established in 
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 
framework), (the COSO criteria). In our opinion, Intel Corporation (the Company) maintained, in all material respects, effective internal 
control over financial reporting as of December 25, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), 
the 2021 Consolidated Financial Statements of the Company and our report dated January 26, 2022 expressed an unqualified opinion 
thereon.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the 
effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control Over 
Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our 
audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in 
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and 
the PCAOB. 

Our audit procedures included, among others, testing the significant assumptions (e.g., estimated product 

costs and selling prices, and product demand forecasts) and the underlying data used in management's 

inventory valuation assessment. We compared the significant assumptions used by management to current 

industry and economic trends. We assessed whether there were any potential sources of contrary information, 

including historical forecast accuracy or history of significant revisions to previously recorded inventory 

valuation adjustments, and performed sensitivity analyses over significant assumptions to evaluate the 

changes in inventory valuation that would result from changes in the assumptions.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. 

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness 
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such 
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our 
opinion.

We have served as the Company's auditor since 1968.

 /s/ Ernst & Young LLP

San Jose, California

January 26, 2022

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting 
principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance 
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance 
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with 
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely 
detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial 
statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of 
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ Ernst & Young LLP   

San Jose, California
January 26, 2022

Auditor's Reports

72

Auditor's Reports

71

   
 
 
 
    
 
 
Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Years Ended (In Millions, Except Per Share Amounts)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Net revenue

Cost of sales

Gross margin

Research and development

Marketing, general and administrative

Restructuring and other charges

Operating expenses

Operating income

Gains (losses) on equity investments, net

Interest and other, net

Income before taxes

Provision for taxes

Net income

Earnings per share—basic

Earnings per share—diluted

Weighted average shares of common stock outstanding:

Basic

Diluted

See accompanying notes.

$ 

79,024  $ 

77,867  $ 

35,209 

43,815 

15,190 

6,543 

2,626 

24,359 

19,456 

2,729 

34,255 

43,612 

13,556 

6,180 

198 

19,934 

23,678 

1,904 

(482)   

(504)   

21,703 

1,835 

25,078 

4,179 

$ 

$ 

$ 

19,868  $ 

20,899  $ 

4.89  $ 

4.86  $ 

4.98  $ 

4.94  $ 

4,059 

4,090 

4,199 

4,232 

71,965 

29,825 

42,140 

13,362 

6,350 

393 

20,105 

22,035 

1,539 

484 

24,058 

3,010 

21,048 

4.77 

4.71 

4,417 

4,473 

Years Ended (In Millions)

Net income

Changes in other comprehensive income, net of tax:

Net unrealized holding gains (losses) on derivatives

Actuarial valuation and other pension benefits (expenses), net

Translation adjustments and other

Other comprehensive income (loss)

Total comprehensive income

See accompanying notes.

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

19,868  $ 

20,899  $ 

21,048 

(520)   

451 

(60)   

(129)   

677 

(183)   

35 

529 

177 

(564) 

81 

(306) 

$ 

19,739  $ 

21,428  $ 

20,742 

Financial Statements

Consolidated Statements of Income

72

Financial Statements

Consolidated Statements of Comprehensive Income

75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Years Ended (In Millions)

Net income

Changes in other comprehensive income, net of tax:

Net unrealized holding gains (losses) on derivatives

Actuarial valuation and other pension benefits (expenses), net

Translation adjustments and other

Other comprehensive income (loss)

Total comprehensive income

See accompanying notes.

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

19,868  $ 

20,899  $ 

21,048 

(520)   

451 

(60)   

(129)   

677 

(183)   

35 

529 

177 

(564) 

81 

(306) 

$ 

19,739  $ 

21,428  $ 

20,742 

Years Ended (In Millions, Except Per Share Amounts)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Net revenue

Cost of sales

Gross margin

Research and development

Marketing, general and administrative

Restructuring and other charges

Gains (losses) on equity investments, net

Operating expenses

Operating income

Interest and other, net

Income before taxes

Provision for taxes

Net income

Basic

Diluted

See accompanying notes.

Earnings per share—basic

Earnings per share—diluted

Weighted average shares of common stock outstanding:

$ 

79,024  $ 

77,867  $ 

35,209 

43,815 

15,190 

6,543 

2,626 

24,359 

19,456 

2,729 

21,703 

1,835 

34,255 

43,612 

13,556 

6,180 

198 

19,934 

23,678 

1,904 

25,078 

4,179 

(482)   

(504)   

$ 

$ 

$ 

19,868  $ 

20,899  $ 

4.89  $ 

4.86  $ 

4.98  $ 

4.94  $ 

4,059 

4,090 

4,199 

4,232 

71,965 

29,825 

42,140 

13,362 

6,350 

393 

20,105 

22,035 

1,539 

484 

24,058 

3,010 

21,048 

4.77 

4.71 

4,417 

4,473 

Financial Statements

Consolidated Statements of Income

74

Financial Statements

Consolidated Statements of Comprehensive Income

73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Balance Sheets

Consolidated Statements of Cash Flows

(In Millions, Except Par Value)

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Trading assets

Accounts receivable, net of allowance for doubtful accounts

Inventories

Assets held for sale

Other current assets

Total current assets

Property, plant and equipment, net

Equity investments

Other long-term investments

Goodwill

Identified intangible assets, net

Other long-term assets

Total assets

Liabilities and stockholders' equity

Current liabilities:

Short-term debt

Accounts payable

Accrued compensation and benefits

Other accrued liabilities

Total current liabilities

Debt

Contract liabilities

Income taxes payable

Deferred income taxes

Other long-term liabilities

Commitments and Contingencies (Note 19)

Stockholders' equity:

Preferred stock, $0.001 par value, 50 shares authorized; none issued
Common stock, $0.001 par value, 10,000 shares authorized; 4,070 shares issued and outstanding 
(4,062 issued and outstanding in 2020) and capital in excess of par value

Accumulated other comprehensive income (loss)

Retained earnings

Total stockholders' equity

Adjustments to reconcile net income to net cash provided by operating activities:

Dec 25, 2021

Dec 26, 2020

Years Ended (In Millions)

Cash and cash equivalents, beginning of period

Cash flows provided by (used for) operating activities:

$ 

4,827  $ 

2,103 

21,483 

9,457 

10,776 

6,942 

2,130 

57,718 

63,245 

6,298 

840 

26,963 

7,270 

6,072 

5,865 

2,292 

15,738 

6,782 

8,427 

5,400 

2,745 

47,249 

56,584 

5,152 

2,192 

26,971 

9,026 

5,917 

$ 

168,406  $ 

153,091 

$ 

4,591  $ 

5,747 

4,535 

12,589 

27,462 

2,504 

5,581 

3,999 

12,670 

24,754 

Net income

Depreciation

Share-based compensation

Restructuring and other charges

Amortization of intangibles

(Gains) losses on equity investments, net

Changes in assets and liabilities:

Accounts receivable

Inventories

Accounts payable

Accrued compensation and benefits

Prepaid customer supply agreements

Income taxes

Other assets and liabilities

Total adjustments

Net cash provided by operating activities

Cash flows provided by (used for) investing activities:

Additions to property, plant and equipment

Additions to held for sale NAND property, plant and equipment

Acquisitions, net of cash acquired

Purchases of available-for-sale debt investments

Maturities and sales of available-for-sale debt investments

Purchases of trading assets

Maturities and sales of trading assets

Purchases of equity investments

Sales of equity investments

33,510 

33,897 

Other investing

185 

4,305 

2,667 

4,886 

1,367 

4,578 

3,843 

3,614 

Net cash used for investing activities

Cash flows provided by (used for) financing activities:

Issuance of term debt, net of issuance costs

Repayment of term debt and debt conversions

Proceeds from sales of common stock through employee equity incentive plans

Repurchase of common stock

Payment of dividends to stockholders

— 

— 

Other financing

28,006 

(880)   

68,265 

95,391 

25,556 

(751) 

56,233 

81,038 

Net cash provided by (used for) financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, end of period

Supplemental disclosures:

Acquisition of property, plant and equipment included in accounts payable and 

Total liabilities and stockholders' equity

$ 

168,406  $ 

153,091 

See accompanying notes.

accrued liabilities

Cash paid during the year for:

Interest, net of capitalized interest

Income taxes, net of refunds

See accompanying notes.

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

5,865  $ 

4,194  $ 

3,019 

19,868 

20,899 

21,048 

(1,458)   

(1,757)   

9,953 

2,036 

2,626 

1,839 

(2,674)   

(2,339)   

1,190 

515 

(1,583)   

(441)   

459 

10,123 

29,991 

(18,733)   

(1,596)   

(209)   

(5,051)   

6,467 

28,832 

(613)   

581 

658 

4,974 

(2,500)   

1,020 

(2,415)   

(5,644)   

(1,297)   

(5,862)   

(1,038)   

10,482 

1,854 

198 

1,757 

883 

(687)   

405 

348 

(181)   

1,620 

(437)   

14,485 

35,384 

(194)   

(837)   

(6,862)   

6,781 

15,377 

(720)   

910 

1,385 

10,247 

(4,525)   

897 

(14,229)   

(5,568)   

261 

1,671 

(14,259)   

(16,213) 

(35,503)   

(22,377)   

(25,167)   

(20,796)   

(14,405) 

9,204 

1,705 

393 

1,622 

(892) 

(935) 

(1,481) 

696 

(260) 

(782) 

885 

1,942 

12,097 

33,145 

— 

(1,958) 

(2,268) 

4,226 

(9,162) 

7,178 

(522) 

2,688 

1,626 

3,392 

(2,627) 

750 

(13,576) 

(5,576) 

72 

1,175 

4,194 

(12,917)   

(17,565) 

$ 

4,827  $ 

5,865  $ 

1,619  $ 

2,973  $ 

1,761 

545  $ 

2,263  $ 

594  $ 

2,436  $ 

469 

2,110 

Financial Statements

Consolidated Balance Sheets

74

Financial Statements

Consolidated Statements of Cash Flows

77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,194  $ 

5,865  $ 

Dec 26, 2020

Dec 25, 2021
$ 

Dec 28, 2019
3,019 

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Dec 25, 2021

Dec 26, 2020

Years Ended (In Millions)
Cash and cash equivalents, beginning of period
Cash flows provided by (used for) operating activities:

Accounts receivable, net of allowance for doubtful accounts

(In Millions, Except Par Value)

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Trading assets

Inventories

Assets held for sale

Other current assets

Total current assets

Property, plant and equipment, net

Equity investments

Other long-term investments

Goodwill

Identified intangible assets, net

Other long-term assets

Total assets

Liabilities and stockholders' equity

Accrued compensation and benefits

Current liabilities:

Short-term debt

Accounts payable

Other accrued liabilities

Total current liabilities

Debt

Contract liabilities

Income taxes payable

Deferred income taxes

Other long-term liabilities

Retained earnings

Total stockholders' equity

See accompanying notes.

Commitments and Contingencies (Note 19)

Stockholders' equity:

Preferred stock, $0.001 par value, 50 shares authorized; none issued

Common stock, $0.001 par value, 10,000 shares authorized; 4,070 shares issued and outstanding 

(4,062 issued and outstanding in 2020) and capital in excess of par value

Accumulated other comprehensive income (loss)

Total liabilities and stockholders' equity

$ 

168,406  $ 

153,091 

5,865 

2,292 

15,738 

6,782 

8,427 

5,400 

2,745 

47,249 

56,584 

5,152 

2,192 

26,971 

9,026 

5,917 

2,504 

5,581 

3,999 

12,670 

24,754 

1,367 

4,578 

3,843 

3,614 

2,103 

21,483 

9,457 

10,776 

6,942 

2,130 

57,718 

63,245 

6,298 

840 

26,963 

7,270 

6,072 

5,747 

4,535 

12,589 

27,462 

185 

4,305 

2,667 

4,886 

$ 

168,406  $ 

153,091 

$ 

4,591  $ 

33,510 

33,897 

— 

— 

28,006 

(880)   

68,265 

95,391 

25,556 

(751) 

56,233 

81,038 

$ 

4,827  $ 

Net income
Adjustments to reconcile net income to net cash provided by operating activities:

19,868 

20,899 

21,048 

Depreciation
Share-based compensation
Restructuring and other charges
Amortization of intangibles
(Gains) losses on equity investments, net
Changes in assets and liabilities:

Accounts receivable
Inventories
Accounts payable
Accrued compensation and benefits
Prepaid customer supply agreements
Income taxes
Other assets and liabilities

Total adjustments

Net cash provided by operating activities
Cash flows provided by (used for) investing activities:

Additions to property, plant and equipment
Additions to held for sale NAND property, plant and equipment
Acquisitions, net of cash acquired
Purchases of available-for-sale debt investments
Maturities and sales of available-for-sale debt investments
Purchases of trading assets
Maturities and sales of trading assets
Purchases of equity investments
Sales of equity investments
Other investing

Net cash used for investing activities
Cash flows provided by (used for) financing activities:

Issuance of term debt, net of issuance costs
Repayment of term debt and debt conversions
Proceeds from sales of common stock through employee equity incentive plans
Repurchase of common stock
Payment of dividends to stockholders
Other financing

Net cash provided by (used for) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, end of period
Supplemental disclosures:

Acquisition of property, plant and equipment included in accounts payable and 
accrued liabilities

Cash paid during the year for:

Interest, net of capitalized interest
Income taxes, net of refunds

See accompanying notes.

$ 

$

$
$

9,953 
2,036 
2,626 
1,839 
(1,458)   

(2,674)   
(2,339)   
1,190 
515 
(1,583)   
(441)   
459 
10,123 
29,991 

(18,733)   
(1,596)   
(209)   
(5,051)   
6,467 
(35,503)   
28,832 

(613)   
581 
658 
(25,167)   

10,482 
1,854 
198 
1,757 
(1,757)   

883 
(687)   
405 
348 
(181)   
1,620 

(437)   

14,485 
35,384 

(14,259)   
(194)   
(837)   
(6,862)   
6,781 
(22,377)   
15,377 

(720)   
910 
1,385 
(20,796)   

4,974 
(2,500)   
1,020 
(2,415)   
(5,644)   
(1,297)   
(5,862)   
(1,038)   
4,827  $ 

10,247 
(4,525)   
897 
(14,229)   
(5,568)   
261 
(12,917)   
1,671 
5,865  $ 

9,204 
1,705 
393 
1,622 
(892) 

(935) 
(1,481) 
696 
(260) 
(782) 
885 
1,942 
12,097 
33,145 

(16,213) 
— 
(1,958) 
(2,268) 
4,226 
(9,162) 
7,178 
(522) 
2,688 
1,626 
(14,405) 

3,392 
(2,627) 
750 
(13,576) 
(5,576) 
72 
(17,565) 
1,175 
4,194 

1,619  $ 

2,973  $ 

1,761 

545  $ 
2,263  $ 

594  $ 
2,436  $ 

469 
2,110 

Financial Statements

Consolidated Balance Sheets

76

Financial Statements

Consolidated Statements of Cash Flows

75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Stockholders' Equity

Notes to Consolidated Financial Statements

Common Stock and Capital
in Excess of Par Value

Number of
Shares

Amount

Accumulated
Other
Comprehensive
Income (Loss)

Retained
Earnings

Total

4,516  $ 

25,365  $ 

(974)  $ 

50,172  $ 

74,563 

Note 1 :  Basis of Presentation

We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal years 2021, 2020, and 2019 were 52-week fiscal 

years; 2022 is a 53-week fiscal year. Our Consolidated Financial Statements include the accounts of Intel and our subsidiaries. We have 

eliminated intercompany accounts and transactions. We have reclassified certain prior period amounts to conform to current period 

21,048 

(306) 

20,742 

892 

1,705 

265 

(1,032) 

presentation.

Use of Estimates

may differ materially from our estimates.

Note 2 :  Accounting Policies

The preparation of Consolidated Financial Statements in conformity with US GAAP requires us to make estimates and judgments that 

affect the amounts reported in our Consolidated Financial Statements and the accompanying notes. The actual results that we experience 

(11,973)   

(13,565) 

(146)   

(488) 

Revenue Recognition

 —   

(5,578)   

(5,578) 

We recognize net product revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or 

services to customers. Substantially all of our revenue is derived from product sales. In accordance with contract terms, revenue for 

(1,280)   

53,523 

77,504 

product sales is recognized at the time of product shipment from our facilities or delivery to the customer location, as determined by the 

agreed upon shipping terms. 

(In Millions, Except Per Share Amounts)

Balance as of December 29, 2018
Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings
Cash dividends declared ($1.26 per share of 
common stock)

Balance as of December 28, 2019

Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings
Cash dividends declared ($1.32 per share of 
common stock)

Balance as of December 26, 2020
Adjustment to opening balance for change in 
accounting principle

— 

— 

55 

— 

— 

— 

(272)   

(9)   

— 

4,290 

— 

— 

55 

— 

— 

— 

(275)   

(8)   

— 

4,062 

—

—  

892 

1,705 

265 

(1,032) 

(1,592) 

(342) 

—

25,261 

—

—  

1,018 

1,854 

155 

(750) 

(1,628) 

(354) 

—

25,556 

Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings
Cash dividends declared ($1.39 per share of 
common stock)

— 

— 

54 

— 

— 

— 

(40)   

(6)   

— 

—

—  

1,022 

2,036 

— 

— 

(249) 

(359) 

—

 —   

21,048 

—  

—  

—  

—  

—  

—  

— 

—  

—  

—  

(306) 

 — 

—

 — 

—

 —   

 —   

529 

 —   

 — 

— 

 — 

 —   

 —   

(129) 

—  

—

—

—

—  

—  

 —   

20,899 

20,899 

529 

21,428 

1,018 

1,854 

155 

(750) 

 —   

(5,568)   

(5,568) 

(751)   

56,233 

81,038 

35 

35 

—  

19,868 

—  

— 

—  

—  

—  

19,868 

(129) 

19,739 

1,022 

2,036 

— 

— 

(2,166)   

(61)   

(2,415) 

(420) 

—  

(5,644)   

(5,644) 

Opening balance as of December 27, 2020 

4,062 

25,556 

(751)   

56,268 

81,073 

(12,481)   

(14,109) 

(140)   

(494) 

Inventories

We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable 

consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists 

primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer 

based on historical analysis of customer purchase volumes. Sales rebates earned by customers are offset against their receivable 

balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued 

liabilities.

We make payments to our customers through cooperative advertising programs for marketing activities for some of our products. We 

generally record the payment as a reduction in revenue in the period that the revenue is earned, unless the payment is for a distinct 

service, which we record as expense when the marketing activities occur.

We compute inventory cost on a first-in, first-out basis. Our process and product development life cycle corresponds with substantive 

engineering milestones. These engineering milestones are regularly and consistently applied in assessing the point at which our activities 

and associated costs change in nature from R&D to cost of sales, and when cost of sales can be capitalized as inventory. 

For a product to be manufactured in high volumes and sold to our customers under our standard warranty, it must meet our rigorous 

technical quality specifications. This milestone is known as PRQ. We have identified PRQ as the point at which the costs incurred to 

manufacture our products are included in the valuation of inventory. A single PRQ has previously valued inventory up to $870 million in the 

quarter the PRQ milestone was achieved. Prior to PRQ, costs that do not meet the criteria for R&D are included in cost of sales in the 

period incurred.

The valuation of inventory includes determining which fixed production overhead costs can be included in inventory based on the normal 

capacity of our manufacturing and assembly and test facilities. We apply our historical loadings compared to our total available capacity in 

a statistical model to determine our normal capacity level. If the factory loadings are below the established normal capacity level, a portion 

of our fixed production overhead costs would not be included in the cost of inventory; instead, it would be recognized as cost of sales in 

that period. We refer to these costs as excess capacity charges. Excess capacity charges are insignificant in the years presented. 

Charges in years prior to those presented have ranged up to $1.1 billion taken in connection with the 2009 economic recession.

Inventory is valued at the lower of cost or net realizable value, based upon assumptions about future demand and market conditions. 

Product-specific facts and circumstances reviewed in the inventory valuation process include a review of our customer base, the stage of 

the product life cycle, variations in market pricing, and an assessment of selling price in relation to product cost. Lower of cost or net 

realizable value inventory reserves fluctuate as we ramp new process technologies, with costs improving over time due to scale and 

improved yields. Additionally, inventory valuation is impacted by cyclical changes in market conditions and the associated pricing 

environment.

Balance as of December 25, 2021

4,070  $ 

28,006  $ 

(880)  $ 

68,265  $ 

95,391 

See accompanying notes.

Financial Statements

Consolidated Statements of Stockholders' Equity

76

Financial Statements

Notes to Consolidated Financial Statements

79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Stockholders' Equity

Notes to Consolidated Financial Statements

Balance as of December 29, 2018

4,516  $ 

25,365  $ 

(974)  $ 

50,172  $ 

74,563 

Common Stock and Capital

in Excess of Par Value

Number of

Shares

Amount

Accumulated

Other

Comprehensive

Income (Loss)

Retained

Earnings

Total

Note 1 :  Basis of Presentation

We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal years 2021, 2020, and 2019 were 52-week fiscal 
years; 2022 is a 53-week fiscal year. Our Consolidated Financial Statements include the accounts of Intel and our subsidiaries. We have 
eliminated intercompany accounts and transactions. We have reclassified certain prior period amounts to conform to current period 
presentation.

—

—  

 —   

21,048 

(306) 

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with US GAAP requires us to make estimates and judgments that 
affect the amounts reported in our Consolidated Financial Statements and the accompanying notes. The actual results that we experience 
may differ materially from our estimates.

Note 2 :  Accounting Policies

(11,973)   

(13,565) 

(146)   

(488) 

Revenue Recognition

 —   

(5,578)   

(5,578) 

(1,280)   

53,523 

77,504 

We recognize net product revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or 
services to customers. Substantially all of our revenue is derived from product sales. In accordance with contract terms, revenue for 
product sales is recognized at the time of product shipment from our facilities or delivery to the customer location, as determined by the 
agreed upon shipping terms. 

We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable 
consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists 
primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer 
based on historical analysis of customer purchase volumes. Sales rebates earned by customers are offset against their receivable 
balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued 
liabilities.

We make payments to our customers through cooperative advertising programs for marketing activities for some of our products. We 
generally record the payment as a reduction in revenue in the period that the revenue is earned, unless the payment is for a distinct 
service, which we record as expense when the marketing activities occur.

Inventories

We compute inventory cost on a first-in, first-out basis. Our process and product development life cycle corresponds with substantive 
engineering milestones. These engineering milestones are regularly and consistently applied in assessing the point at which our activities 
and associated costs change in nature from R&D to cost of sales, and when cost of sales can be capitalized as inventory. 

For a product to be manufactured in high volumes and sold to our customers under our standard warranty, it must meet our rigorous 
technical quality specifications. This milestone is known as PRQ. We have identified PRQ as the point at which the costs incurred to 
manufacture our products are included in the valuation of inventory. A single PRQ has previously valued inventory up to $870 million in the 
quarter the PRQ milestone was achieved. Prior to PRQ, costs that do not meet the criteria for R&D are included in cost of sales in the 
period incurred.

The valuation of inventory includes determining which fixed production overhead costs can be included in inventory based on the normal 
capacity of our manufacturing and assembly and test facilities. We apply our historical loadings compared to our total available capacity in 
a statistical model to determine our normal capacity level. If the factory loadings are below the established normal capacity level, a portion 
of our fixed production overhead costs would not be included in the cost of inventory; instead, it would be recognized as cost of sales in 
that period. We refer to these costs as excess capacity charges. Excess capacity charges are insignificant in the years presented. 
Charges in years prior to those presented have ranged up to $1.1 billion taken in connection with the 2009 economic recession.

Inventory is valued at the lower of cost or net realizable value, based upon assumptions about future demand and market conditions. 
Product-specific facts and circumstances reviewed in the inventory valuation process include a review of our customer base, the stage of 
the product life cycle, variations in market pricing, and an assessment of selling price in relation to product cost. Lower of cost or net 
realizable value inventory reserves fluctuate as we ramp new process technologies, with costs improving over time due to scale and 
improved yields. Additionally, inventory valuation is impacted by cyclical changes in market conditions and the associated pricing 
environment.

(In Millions, Except Per Share Amounts)

Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings

Cash dividends declared ($1.26 per share of 

common stock)

Balance as of December 28, 2019

Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings

Cash dividends declared ($1.32 per share of 

common stock)

Balance as of December 26, 2020

Adjustment to opening balance for change in 

accounting principle

Components of comprehensive income, net of tax:

Net income

Other comprehensive income (loss)

Total comprehensive income

Employee equity incentive plans and other

Share-based compensation

Temporary equity reduction

Convertible debt

Repurchase of common stock

Restricted stock unit withholdings

Cash dividends declared ($1.39 per share of 

common stock)

See accompanying notes.

(272)   

(9)   

— 

4,290 

— 

— 

55 

— 

— 

— 

— 

— 

55 

— 

— 

— 

(275)   

(8)   

— 

4,062 

— 

— 

54 

— 

— 

— 

(40)   

(6)   

— 

892 

1,705 

265 

(1,032) 

(1,592) 

(342) 

—

25,261 

1,018 

1,854 

155 

(750) 

(1,628) 

(354) 

—

25,556 

1,022 

2,036 

— 

— 

(249) 

(359) 

—

—  

—  

—  

—  

—  

—  

— 

—  

—  

—  

21,048 

(306) 

20,742 

892 

1,705 

265 

(1,032) 

20,899 

529 

21,428 

1,018 

1,854 

155 

(750) 

—

—  

 —   

20,899 

529 

(12,481)   

(14,109) 

(140)   

(494) 

 —   

(5,568)   

(5,568) 

(751)   

56,233 

81,038 

35 

35 

—

—  

—  

19,868 

(129) 

—  

— 

—  

—  

—  

19,868 

(129) 

19,739 

1,022 

2,036 

— 

— 

(2,166)   

(61)   

(2,415) 

(420) 

 — 

—

 — 

—

 —   

 —   

 —   

 — 

— 

 — 

 —   

 —   

—  

—

—

—

—  

—  

Balance as of December 25, 2021

4,070  $ 

28,006  $ 

(880)  $ 

68,265  $ 

95,391 

—  

(5,644)   

(5,644) 

Opening balance as of December 27, 2020 

4,062 

25,556 

(751)   

56,268 

81,073 

Financial Statements

Consolidated Statements of Stockholders' Equity

78

Financial Statements

Notes to Consolidated Financial Statements

77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The valuation of inventory also requires us to estimate obsolete and excess inventory, as well as inventory that is not of saleable quality. 
We use the demand forecast to develop our short-term manufacturing plans to enable consistency between inventory valuations and build 
decisions. For certain new products, we have limited historical data when developing these demand forecasts. We compare the estimate 
of future demand to work in process and finished goods inventory levels to determine the amount, if any, of obsolete or excess inventory. 
When our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, we 
write off amounts considered to be excess inventory. 

Property, Plant and Equipment

We compute depreciation using the straight-line method over the estimated useful life of assets. We also capitalize interest on borrowings 
related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together with that 
asset cost. We record capital-related government grants earned as a reduction to property, plant and equipment.

We evaluate the period over which we expect to recover the economic value of our property, plant and equipment, considering factors 
such as the process technology cadence between node transitions, changes in machinery and equipment technology, and re-use of 
machinery and tools across each generation of process technology. As we make manufacturing process conversions and other factory 
planning decisions, we use assumptions involving the use of management judgments regarding the remaining useful lives of assets, 
primarily process-specific semiconductor manufacturing tools and building improvements. When we determine that the useful lives of 
assets are shorter or longer than we had originally estimated, we adjust the rate of depreciation to reflect the assets' revised useful lives.

Assets are categorized and evaluated for impairment at the lowest level of identifiable cash flows. Factors that we consider in deciding 
when to perform an impairment review include significant under-performance of a business or product line in relation to expectations, 
significant negative industry or economic trends, and significant changes or planned changes in our use and fungibility of the assets. If an 
asset grouping carrying value is not recoverable through the related undiscounted cash flows, the asset grouping is considered to be 
impaired. 

Fair Value

When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions 
that market participants would use when pricing the asset or liability. Our financial assets are measured and recorded at fair value on a 
recurring basis, except for equity securities measured using the measurement alternative, equity method investments, and grants 
receivable. We assess fair value hierarchy levels for our issued debt and fixed-income investment portfolio based on the underlying 
instrument type.

The three levels of inputs that may be used to measure fair value are: 

▪

▪

▪

Level 1. Quoted prices in active markets for identical assets or liabilities. We evaluate security-specific market data when determining 
whether a market is active.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active 
markets, or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or 
can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. 
We use LIBOR-based yield curves, overnight indexed swap curves, currency spot and forward rates, and credit ratings as significant 
inputs in our valuations. Level 2 inputs also include non-binding market consensus prices, as well as quoted prices that were adjusted 
for security-specific restrictions. When we use non-binding market consensus prices, we corroborate them with quoted market prices 
for similar instruments or compare them to output from internally developed pricing models such as discounted cash flow models.

Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or 
liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are 
reasonable and consistent with market experience in similar asset classes. Level 3 inputs also include non-binding market consensus 
prices or non-binding broker quotes that we were unable to corroborate with observable market data.

Debt Investments

We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash 
equivalents. Cash equivalents can include investments such as corporate debt, financial institution instruments, government debt, and 
reverse repurchase agreements.

Marketable debt investments are generally designated as trading assets when a market risk is economically hedged at inception with a 
related derivative instrument, or when the marketable debt investment itself is used to economically hedge currency exchange rate risk 
from remeasurement. Investments designated as trading assets are reported at fair value. Gains or losses on these investments arising 
from changes in fair value due to interest rate and currency market fluctuations and credit market volatility, largely offset by losses or gains 
on the related derivative instruments and balance sheet remeasurement, are recorded in interest and other, net. 

Marketable debt investments are considered available-for-sale investments when the interest rate and foreign currency risks are not 

hedged at the inception of the investment or when our criteria for designation as trading assets are not met. Available-for-sale debt 

investments with original maturities of approximately three months or less from the date of purchase are classified within cash and cash 

equivalents. Available-for-sale debt investments with original maturities at the date of purchase greater than approximately three months 

and remaining maturities of less than one year are classified as short-term investments. Available-for-sale debt investments with 

remaining maturities beyond one year are classified as other long-term investments. Available-for-sale debt investments are reported at 

fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). We determine the cost 

of the investment sold based on an average cost basis at the individual security level, and record the interest income and realized gains or 

losses on the sale of these investments in interest and other, net.

Our available-for-sale debt investments are subject to periodic impairment reviews. For investments in an unrealized loss position, we 

determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions, and 

reasonable and supportable forecasts of economic conditions. We recognize an allowance for credit losses, up to the amount of the 

unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required 

or we intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are 

recognized in interest and other, net, and unrealized losses not related to credit losses are recognized in other comprehensive income 

(loss).

Equity Investments

We regularly invest in equity securities of public and private companies to promote business and strategic objectives. Equity investments 

are measured and recorded as follows: 

▪ Marketable equity securities are equity securities with RDFV that are measured and recorded at fair value on a recurring basis with 

changes in fair value, whether realized or unrealized, recorded through the income statement. 

Non-marketable equity securities are equity securities without RDFV that are measured and recorded using a measurement 

alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable 

price changes.

one-quarter lag.

Equity method investments are equity securities in investees we do not control but over which we have the ability to exercise 

significant influence. Equity method investments are measured at cost minus impairment, if any, plus or minus our share of equity 

method investee income or loss. Our proportionate share of the income or loss from equity method investments is recognized on a 

Realized and unrealized gains and losses resulting from changes in fair value or the sale of our equity investments are recorded in gains 

(losses) on equity investments, net. The carrying value of our non-marketable equity securities is adjusted for qualifying observable price 

changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an 

observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. 

Recording upward and downward adjustments to the carrying value of our equity securities as a result of observable price changes 

requires quantitative assessments of the fair value of our securities using various valuation methodologies and involves the use of 

estimates. 

Non-marketable equity securities and equity method investments (collectively referred to as non-marketable equity investments) are also 

subject to periodic impairment reviews. Our quarterly impairment analysis considers both qualitative and quantitative factors that may 

have a significant impact on the investee's fair value. Qualitative factors considered include the investee's financial condition and business 

outlook, industry and sector performance, market for technology, operational and financing cash flow activities, and other relevant events 

and factors affecting the investee. When indicators of impairment exist, we prepare quantitative assessments of the fair value of our non-

marketable equity investments using both the market and income approaches, which require judgment and the use of estimates, including 

discount rates, investee revenue and costs, and comparable market data of private and public companies, among others. 

Non-marketable equity securities are tested for impairment using a qualitative model similar to the model used for goodwill and long-

lived assets. Upon determining that an impairment may exist, the security's fair value is calculated and compared to its carrying value 

and an impairment is recognized immediately if the carrying value exceeds the fair value.

Equity method investments are subject to periodic impairment reviews using the other-than-temporary impairment model, which 

considers the severity and duration of a decline in fair value below cost and our ability and intent to hold the investment for a sufficient 

period of time to allow for recovery. 

Impairments of equity investments are recorded in gains (losses) on equity investments, net.

▪

▪

▪

▪

Financial Statements

Notes to Consolidated Financial Statements

78

Financial Statements

Notes to Consolidated Financial Statements

81

 
 
The valuation of inventory also requires us to estimate obsolete and excess inventory, as well as inventory that is not of saleable quality. 

We use the demand forecast to develop our short-term manufacturing plans to enable consistency between inventory valuations and build 

decisions. For certain new products, we have limited historical data when developing these demand forecasts. We compare the estimate 

of future demand to work in process and finished goods inventory levels to determine the amount, if any, of obsolete or excess inventory. 

When our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, we 

write off amounts considered to be excess inventory. 

Property, Plant and Equipment

We compute depreciation using the straight-line method over the estimated useful life of assets. We also capitalize interest on borrowings 

related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together with that 

asset cost. We record capital-related government grants earned as a reduction to property, plant and equipment.

We evaluate the period over which we expect to recover the economic value of our property, plant and equipment, considering factors 

such as the process technology cadence between node transitions, changes in machinery and equipment technology, and re-use of 

machinery and tools across each generation of process technology. As we make manufacturing process conversions and other factory 

planning decisions, we use assumptions involving the use of management judgments regarding the remaining useful lives of assets, 

primarily process-specific semiconductor manufacturing tools and building improvements. When we determine that the useful lives of 

assets are shorter or longer than we had originally estimated, we adjust the rate of depreciation to reflect the assets' revised useful lives.

Assets are categorized and evaluated for impairment at the lowest level of identifiable cash flows. Factors that we consider in deciding 

when to perform an impairment review include significant under-performance of a business or product line in relation to expectations, 

significant negative industry or economic trends, and significant changes or planned changes in our use and fungibility of the assets. If an 

asset grouping carrying value is not recoverable through the related undiscounted cash flows, the asset grouping is considered to be 

impaired. 

Fair Value

instrument type.

When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions 

that market participants would use when pricing the asset or liability. Our financial assets are measured and recorded at fair value on a 

recurring basis, except for equity securities measured using the measurement alternative, equity method investments, and grants 

receivable. We assess fair value hierarchy levels for our issued debt and fixed-income investment portfolio based on the underlying 

The three levels of inputs that may be used to measure fair value are: 

▪

▪

▪

Level 1. Quoted prices in active markets for identical assets or liabilities. We evaluate security-specific market data when determining 

whether a market is active.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active 

markets, or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or 

can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. 

We use LIBOR-based yield curves, overnight indexed swap curves, currency spot and forward rates, and credit ratings as significant 

inputs in our valuations. Level 2 inputs also include non-binding market consensus prices, as well as quoted prices that were adjusted 

for security-specific restrictions. When we use non-binding market consensus prices, we corroborate them with quoted market prices 

for similar instruments or compare them to output from internally developed pricing models such as discounted cash flow models.

Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or 

liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are 

reasonable and consistent with market experience in similar asset classes. Level 3 inputs also include non-binding market consensus 

prices or non-binding broker quotes that we were unable to corroborate with observable market data.

Debt Investments

We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash 

equivalents. Cash equivalents can include investments such as corporate debt, financial institution instruments, government debt, and 

reverse repurchase agreements.

Marketable debt investments are generally designated as trading assets when a market risk is economically hedged at inception with a 

related derivative instrument, or when the marketable debt investment itself is used to economically hedge currency exchange rate risk 

from remeasurement. Investments designated as trading assets are reported at fair value. Gains or losses on these investments arising 

from changes in fair value due to interest rate and currency market fluctuations and credit market volatility, largely offset by losses or gains 

on the related derivative instruments and balance sheet remeasurement, are recorded in interest and other, net. 

Marketable debt investments are considered available-for-sale investments when the interest rate and foreign currency risks are not 
hedged at the inception of the investment or when our criteria for designation as trading assets are not met. Available-for-sale debt 
investments with original maturities of approximately three months or less from the date of purchase are classified within cash and cash 
equivalents. Available-for-sale debt investments with original maturities at the date of purchase greater than approximately three months 
and remaining maturities of less than one year are classified as short-term investments. Available-for-sale debt investments with 
remaining maturities beyond one year are classified as other long-term investments. Available-for-sale debt investments are reported at 
fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). We determine the cost 
of the investment sold based on an average cost basis at the individual security level, and record the interest income and realized gains or 
losses on the sale of these investments in interest and other, net.

Our available-for-sale debt investments are subject to periodic impairment reviews. For investments in an unrealized loss position, we 
determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions, and 
reasonable and supportable forecasts of economic conditions. We recognize an allowance for credit losses, up to the amount of the 
unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required 
or we intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are 
recognized in interest and other, net, and unrealized losses not related to credit losses are recognized in other comprehensive income 
(loss).

Equity Investments

We regularly invest in equity securities of public and private companies to promote business and strategic objectives. Equity investments 
are measured and recorded as follows: 

▪ Marketable equity securities are equity securities with RDFV that are measured and recorded at fair value on a recurring basis with 

changes in fair value, whether realized or unrealized, recorded through the income statement. 

▪

▪

Non-marketable equity securities are equity securities without RDFV that are measured and recorded using a measurement 
alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable 
price changes.

Equity method investments are equity securities in investees we do not control but over which we have the ability to exercise 
significant influence. Equity method investments are measured at cost minus impairment, if any, plus or minus our share of equity 
method investee income or loss. Our proportionate share of the income or loss from equity method investments is recognized on a 
one-quarter lag.

Realized and unrealized gains and losses resulting from changes in fair value or the sale of our equity investments are recorded in gains 
(losses) on equity investments, net. The carrying value of our non-marketable equity securities is adjusted for qualifying observable price 
changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an 
observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. 
Recording upward and downward adjustments to the carrying value of our equity securities as a result of observable price changes 
requires quantitative assessments of the fair value of our securities using various valuation methodologies and involves the use of 
estimates. 

Non-marketable equity securities and equity method investments (collectively referred to as non-marketable equity investments) are also 
subject to periodic impairment reviews. Our quarterly impairment analysis considers both qualitative and quantitative factors that may 
have a significant impact on the investee's fair value. Qualitative factors considered include the investee's financial condition and business 
outlook, industry and sector performance, market for technology, operational and financing cash flow activities, and other relevant events 
and factors affecting the investee. When indicators of impairment exist, we prepare quantitative assessments of the fair value of our non-
marketable equity investments using both the market and income approaches, which require judgment and the use of estimates, including 
discount rates, investee revenue and costs, and comparable market data of private and public companies, among others. 

▪

▪

Non-marketable equity securities are tested for impairment using a qualitative model similar to the model used for goodwill and long-
lived assets. Upon determining that an impairment may exist, the security's fair value is calculated and compared to its carrying value 
and an impairment is recognized immediately if the carrying value exceeds the fair value.

Equity method investments are subject to periodic impairment reviews using the other-than-temporary impairment model, which 
considers the severity and duration of a decline in fair value below cost and our ability and intent to hold the investment for a sufficient 
period of time to allow for recovery. 

Impairments of equity investments are recorded in gains (losses) on equity investments, net.

Financial Statements

Notes to Consolidated Financial Statements

80

Financial Statements

Notes to Consolidated Financial Statements

79

 
 
Derivative Financial Instruments

Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk, and, to a 
lesser extent, equity market risk, commodity price risk, and credit risk. We enter into master netting arrangements to mitigate credit risk in 
derivative transactions by permitting net settlement of transactions with the same counterparty. We also enter into collateral security 
arrangements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments 
fluctuates from contractually established thresholds. For presentation on our Consolidated Balance Sheets, we do not offset fair value 
amounts recognized for derivative instruments under master netting arrangements. Our derivative financial instruments, including related 
collateral amounts, are presented at fair value on a gross basis and are included in other current assets, other long-term assets, other 
accrued liabilities, or other long-term liabilities.

Cash flow hedges use foreign currency contracts, such as currency forwards and currency interest rate swaps, to hedge exposures for 
variability in the US-dollar equivalent of non-US-dollar-denominated cash flows associated with our forecasted operating and capital 
purchases spending.

The after-tax gains or losses from the effective portion of a cash flow hedge is reported as a component of accumulated other 
comprehensive income (loss) and reclassified into earnings in the same period or periods in which the hedged transaction affects 
earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. For foreign 
currency contracts hedging our capital purchases, forward points are excluded from the hedge effectiveness assessment, and are 
recognized in earnings in the same income statement line item used to present the earnings effect of the hedged item. If the cash flow 
hedge transactions become improbable, the corresponding amounts deferred in accumulated other comprehensive income (loss) would 
be immediately reclassified to interest and other, net. These derivatives are classified in the Consolidated Statements of Cash Flows in 
the same section as the underlying item.

Fair value hedges use interest rate contracts, such as interest rate swaps, to hedge against changes in the fair value on certain of our 
fixed-rate indebtedness attributable to changes in the benchmark interest rate. The gains or losses on these hedges, as well as the 
offsetting losses or gains related to the changes in the fair value of the underlying hedged item attributable to the hedged risk, are 
recognized in earnings in the current period, primarily in interest and other, net. These derivatives are classified in the Consolidated 
Statements of Cash Flows in the same section as the underlying item, primarily within cash flows from financing activities.

Non-designated hedges use foreign currency contracts to economically hedge the functional currency equivalent cash flows of recognized 
monetary assets and liabilities, non-US-dollar-denominated debt instruments classified as trading assets, and non-US-dollar-denominated 
loans receivable recognized at fair value. We also use interest rate contracts to hedge interest rate risk related to our US-dollar-
denominated fixed-rate debt investments classified as trading assets. The change in fair value of these derivatives is recorded through 
earnings in the line item on the Consolidated Statements of Income to which the derivatives most closely relate, primarily in interest and 
other, net. Changes in the fair value of the underlying assets and liabilities associated with the hedged risk are generally offset by the 
changes in the fair value of the related derivatives. 

Loans Receivable

We elect the fair value option when the interest rate or foreign currency exchange rate risk is economically hedged at the inception of the 
loan with a related derivative instrument. When the fair value option is not elected, the loans are carried at amortized cost. We measure 
interest income for all loans receivable using the interest method, which is based on the effective yield of the loans rather than the stated 
coupon rate. We classify our loans within other current and long-term assets. 

Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of investments in debt instruments, 
derivative financial instruments, loans receivable, reverse repurchase agreements, and trade receivables. We generally place investments 
with high-credit-quality counterparties and, by policy, we limit the amount of credit exposure to any one counterparty based on our 
analysis of that counterparty's relative credit standing. As required per our investment policy, substantially all of our investments in debt 
instruments are in investment-grade instruments. Credit-rating criteria for derivative instruments are similar to those for other investments. 

We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions 
with the same counterparty. Due to master netting arrangements, the amounts subject to credit risk related to derivative instruments are 
generally limited to the amounts, if any, by which the counterparty's obligations exceed our obligations with that counterparty. As of 
December 25, 2021, our total credit exposure to any single counterparty, excluding money market funds invested in US treasury and US 
agency securities and reverse repurchase agreements collateralized by treasury and agency securities, did not exceed $2.6 billion. To 
further reduce credit risk, we enter into collateral security arrangements with certain of our derivative counterparties and obtain and secure 
collateral from counterparties against obligations, including securities lending transactions when we deem it appropriate. Cash collateral 
exchanged under our collateral security arrangements are included in other current assets, other long-term assets, other accrued 
liabilities, or other long-term liabilities. For reverse repurchase agreements collateralized by other securities, we do not record the 
collateral as an asset or a liability unless the collateral is repledged.

A substantial majority of our trade receivables are derived from sales to OEMs and ODMs. We also have accounts receivable derived 

from sales to industrial and communications equipment manufacturers in the computing and communications industries. We believe the 

net accounts receivable balances from our three largest customers (42% as of December 25, 2021) do not represent a significant credit 

risk, based on cash flow forecasts, balance sheet analysis, and past collection experience. 

We have adopted credit policies and standards intended to accommodate industry growth and inherent risk. We believe credit risks are 

moderated by the financial stability of our major customers. We assess credit risk through quantitative and qualitative analysis. From this 

analysis, we establish shipping and credit limits, and determine whether we will seek to use one or more credit support protection devices, 

such as obtaining a parent guarantee, standby letter of credit, or credit insurance.

We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their 

estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in 

determining the fair value of the following:

inventory; property, plant and equipment; pre-existing liabilities or legal claims; and contingent consideration, each as may be 

intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, 

and our assumed market segment share, as well as the estimated useful life of intangible assets;

deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances, which are initially estimated as of the 

goodwill as measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired 

Our assumptions and estimates are based upon comparable market data and information obtained from our management and the 

management of the acquired companies. We allocate goodwill to the reporting units of the business that are expected to benefit from the 

Business Combinations

applicable; 

▪

▪

▪

▪

acquisition date; and

and the liabilities assumed.

business combination.

Goodwill

We perform an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently 

if indicators of potential impairment exist. The analysis may include both qualitative and quantitative factors to assess the likelihood of an 

impairment. The reporting unit's carrying value used in an impairment test represents the assignment of various assets and liabilities, 

excluding certain corporate assets and liabilities, such as cash, investments, and debt. 

Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors 

affecting the reporting unit. Additionally, as part of this assessment, we may perform a quantitative analysis to support the qualitative 

factors above by applying sensitivities to assumptions and inputs used in measuring a reporting unit's fair value.

Our quantitative impairment test considers both the income approach and the market approach to estimate a reporting unit's fair value. 

Significant estimates include market segment growth rates, our assumed market segment share, estimated gross margins, operating 

expenses, and discount rates based on a reporting unit's weighted average cost of capital.

We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. In the current 

year, the fair value for all of our reporting units substantially exceeds their carrying value, and our annual qualitative assessment did not 

indicate that a more detailed quantitative analysis was necessary. 

Identified Intangible Assets

We amortize acquisition-related intangible assets that are subject to amortization over their estimated useful life. Acquisition-related in-

process R&D assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of 

acquisition; initially, these are classified as in-process R&D and are not subject to amortization. Once these R&D projects are completed, 

the asset balances are transferred from in-process R&D to acquisition-related developed technology and are subject to amortization from 

that point forward. The asset balances relating to projects that are abandoned after acquisition are impaired and expensed to R&D.

We perform a quarterly review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate 

that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as 

industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. 

Employee Equity Incentive Plans

We use the straight-line amortization method to recognize share-based compensation expense over the service period of the award, net 

of estimated forfeitures. Upon exercise, cancellation, forfeiture, or expiration of stock options, or upon vesting or forfeiture of RSUs, we 

eliminate deferred tax assets for options and RSUs with multiple vesting dates for each vesting period on a first-in, first-out basis as if 

each vesting period were a separate award.

Financial Statements

Notes to Consolidated Financial Statements

80

Financial Statements

Notes to Consolidated Financial Statements

83

 
 
Derivative Financial Instruments

Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk, and, to a 

lesser extent, equity market risk, commodity price risk, and credit risk. We enter into master netting arrangements to mitigate credit risk in 

derivative transactions by permitting net settlement of transactions with the same counterparty. We also enter into collateral security 

arrangements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments 

fluctuates from contractually established thresholds. For presentation on our Consolidated Balance Sheets, we do not offset fair value 

amounts recognized for derivative instruments under master netting arrangements. Our derivative financial instruments, including related 

collateral amounts, are presented at fair value on a gross basis and are included in other current assets, other long-term assets, other 

accrued liabilities, or other long-term liabilities.

Cash flow hedges use foreign currency contracts, such as currency forwards and currency interest rate swaps, to hedge exposures for 

variability in the US-dollar equivalent of non-US-dollar-denominated cash flows associated with our forecasted operating and capital 

purchases spending.

The after-tax gains or losses from the effective portion of a cash flow hedge is reported as a component of accumulated other 

comprehensive income (loss) and reclassified into earnings in the same period or periods in which the hedged transaction affects 

earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. For foreign 

currency contracts hedging our capital purchases, forward points are excluded from the hedge effectiveness assessment, and are 

recognized in earnings in the same income statement line item used to present the earnings effect of the hedged item. If the cash flow 

hedge transactions become improbable, the corresponding amounts deferred in accumulated other comprehensive income (loss) would 

be immediately reclassified to interest and other, net. These derivatives are classified in the Consolidated Statements of Cash Flows in 

the same section as the underlying item.

Fair value hedges use interest rate contracts, such as interest rate swaps, to hedge against changes in the fair value on certain of our 

fixed-rate indebtedness attributable to changes in the benchmark interest rate. The gains or losses on these hedges, as well as the 

offsetting losses or gains related to the changes in the fair value of the underlying hedged item attributable to the hedged risk, are 

recognized in earnings in the current period, primarily in interest and other, net. These derivatives are classified in the Consolidated 

Statements of Cash Flows in the same section as the underlying item, primarily within cash flows from financing activities.

Non-designated hedges use foreign currency contracts to economically hedge the functional currency equivalent cash flows of recognized 

monetary assets and liabilities, non-US-dollar-denominated debt instruments classified as trading assets, and non-US-dollar-denominated 

loans receivable recognized at fair value. We also use interest rate contracts to hedge interest rate risk related to our US-dollar-

denominated fixed-rate debt investments classified as trading assets. The change in fair value of these derivatives is recorded through 

earnings in the line item on the Consolidated Statements of Income to which the derivatives most closely relate, primarily in interest and 

other, net. Changes in the fair value of the underlying assets and liabilities associated with the hedged risk are generally offset by the 

changes in the fair value of the related derivatives. 

Loans Receivable

A substantial majority of our trade receivables are derived from sales to OEMs and ODMs. We also have accounts receivable derived 
from sales to industrial and communications equipment manufacturers in the computing and communications industries. We believe the 
net accounts receivable balances from our three largest customers (42% as of December 25, 2021) do not represent a significant credit 
risk, based on cash flow forecasts, balance sheet analysis, and past collection experience. 

We have adopted credit policies and standards intended to accommodate industry growth and inherent risk. We believe credit risks are 
moderated by the financial stability of our major customers. We assess credit risk through quantitative and qualitative analysis. From this 
analysis, we establish shipping and credit limits, and determine whether we will seek to use one or more credit support protection devices, 
such as obtaining a parent guarantee, standby letter of credit, or credit insurance.

Business Combinations

We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their 
estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in 
determining the fair value of the following:

▪

▪

▪

▪

inventory; property, plant and equipment; pre-existing liabilities or legal claims; and contingent consideration, each as may be 
applicable; 

intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, 
and our assumed market segment share, as well as the estimated useful life of intangible assets;

deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances, which are initially estimated as of the 
acquisition date; and

goodwill as measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired 
and the liabilities assumed.

Our assumptions and estimates are based upon comparable market data and information obtained from our management and the 
management of the acquired companies. We allocate goodwill to the reporting units of the business that are expected to benefit from the 
business combination.

Goodwill

We perform an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently 
if indicators of potential impairment exist. The analysis may include both qualitative and quantitative factors to assess the likelihood of an 
impairment. The reporting unit's carrying value used in an impairment test represents the assignment of various assets and liabilities, 
excluding certain corporate assets and liabilities, such as cash, investments, and debt. 

Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors 
affecting the reporting unit. Additionally, as part of this assessment, we may perform a quantitative analysis to support the qualitative 
factors above by applying sensitivities to assumptions and inputs used in measuring a reporting unit's fair value.

We elect the fair value option when the interest rate or foreign currency exchange rate risk is economically hedged at the inception of the 

loan with a related derivative instrument. When the fair value option is not elected, the loans are carried at amortized cost. We measure 

interest income for all loans receivable using the interest method, which is based on the effective yield of the loans rather than the stated 

Our quantitative impairment test considers both the income approach and the market approach to estimate a reporting unit's fair value. 
Significant estimates include market segment growth rates, our assumed market segment share, estimated gross margins, operating 
expenses, and discount rates based on a reporting unit's weighted average cost of capital.

coupon rate. We classify our loans within other current and long-term assets. 

Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of investments in debt instruments, 

derivative financial instruments, loans receivable, reverse repurchase agreements, and trade receivables. We generally place investments 

with high-credit-quality counterparties and, by policy, we limit the amount of credit exposure to any one counterparty based on our 

analysis of that counterparty's relative credit standing. As required per our investment policy, substantially all of our investments in debt 

instruments are in investment-grade instruments. Credit-rating criteria for derivative instruments are similar to those for other investments. 

We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions 

with the same counterparty. Due to master netting arrangements, the amounts subject to credit risk related to derivative instruments are 

generally limited to the amounts, if any, by which the counterparty's obligations exceed our obligations with that counterparty. As of 

December 25, 2021, our total credit exposure to any single counterparty, excluding money market funds invested in US treasury and US 

agency securities and reverse repurchase agreements collateralized by treasury and agency securities, did not exceed $2.6 billion. To 

further reduce credit risk, we enter into collateral security arrangements with certain of our derivative counterparties and obtain and secure 

collateral from counterparties against obligations, including securities lending transactions when we deem it appropriate. Cash collateral 

exchanged under our collateral security arrangements are included in other current assets, other long-term assets, other accrued 

liabilities, or other long-term liabilities. For reverse repurchase agreements collateralized by other securities, we do not record the 

collateral as an asset or a liability unless the collateral is repledged.

We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. In the current 
year, the fair value for all of our reporting units substantially exceeds their carrying value, and our annual qualitative assessment did not 
indicate that a more detailed quantitative analysis was necessary. 

Identified Intangible Assets

We amortize acquisition-related intangible assets that are subject to amortization over their estimated useful life. Acquisition-related in-
process R&D assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of 
acquisition; initially, these are classified as in-process R&D and are not subject to amortization. Once these R&D projects are completed, 
the asset balances are transferred from in-process R&D to acquisition-related developed technology and are subject to amortization from 
that point forward. The asset balances relating to projects that are abandoned after acquisition are impaired and expensed to R&D.

We perform a quarterly review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate 
that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as 
industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. 

Employee Equity Incentive Plans

We use the straight-line amortization method to recognize share-based compensation expense over the service period of the award, net 
of estimated forfeitures. Upon exercise, cancellation, forfeiture, or expiration of stock options, or upon vesting or forfeiture of RSUs, we 
eliminate deferred tax assets for options and RSUs with multiple vesting dates for each vesting period on a first-in, first-out basis as if 
each vesting period were a separate award.

Financial Statements

Notes to Consolidated Financial Statements

82

Financial Statements

Notes to Consolidated Financial Statements

81

 
 
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. Our 

Internet of Things portfolio, presented as Internet of Things, is comprised of the IOTG and Mobileye operating segments. For 2021, the 

results of our Intel Optane memory business are included in our DCG operating segment, and our NSG segment is comprised of our 

NAND memory business to align to the pending divestiture of our NAND memory business. Refer to "Note 10 : Acquisitions and 

Divestitures" within Notes to Consolidated Financial Statements for further information on the divestiture. 

We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally 

allocated to the operating segments.

We have an "all other" category that 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 CODM, who is our CEO, allocates resources to and assesses the performance of each operating segment using information about 

the operating segment's revenue and operating income (loss). The CODM does not evaluate operating segments using discrete asset 

information and we do not identify or allocate assets by operating segments. Based on the interchangeable nature of our manufacturing 

and assembly and test assets, most of the related depreciation expense is not directly identifiable within our operating segments, as it is 

included in overhead cost pools and subsequently absorbed into inventory as each product passes through our manufacturing process. 

Because our products are then sold across multiple operating segments, it is impracticable to determine the total depreciation expense 

included as a component of each operating segment's operating income (loss) results. 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. The accounting policies for segment reporting are the same as for Intel as a whole.

For the majority of RSUs granted, the number of shares of common stock issued on the date the RSUs vest is net of the minimum 
statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. The obligation to 
pay the relevant taxing authority is contingent upon continued employment. In addition, the amount of the obligation is unknown, as it is 
based in part on the market price of our common stock when the awards vest.

Income Taxes

We compute the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are 
recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets 
and liabilities, and for operating losses and tax credit carryforwards. We measure deferred tax assets and liabilities using the currently 
enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. 

We assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for 
taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. We believe 
that we will ultimately recover the deferred tax assets recorded on our Consolidated Balance Sheets. Recovery of a portion of our 
deferred tax assets is affected by management's plans with respect to holding or disposing of certain investments; therefore, such 
changes could also affect our future provision for taxes.

We recognize tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that 
the tax positions will be sustained on examination by the tax authority. The tax benefits recognized in the financial statements from such 
positions are measured based on the largest amount that is more than 50% likely to be realized upon ultimate settlement. We recognize 
interest and penalties related to unrecognized tax benefits within the provision for taxes on the Consolidated Statements of Income.

We recognize the tax impact of including certain foreign earnings in US taxable income as a period cost. We have recognized deferred 
income taxes for local country income and withholding taxes that could be incurred on distributions of certain non-US earnings or for 
outside basis differences in our subsidiaries, because we do not plan to indefinitely reinvest such earnings and basis differences. 
Remittances of non-US earnings are based on estimates and judgments of projected cash flow needs, as well as the working capital and 
investment requirements of our non-US and US operations. Material changes in our estimates of cash, working capital, and investment 
needs in various jurisdictions could require repatriation of indefinitely reinvested non-US earnings, which could be subject to applicable 
non-US income and withholding taxes. 

Leases

Leases consist of real property and machinery and equipment. 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. Payments on leases may be 
fixed or variable, and variable lease payments are based on output of the underlying leased assets.

Loss Contingencies

We are subject to loss contingencies, including various legal and regulatory proceedings, asserted and potential claims, liabilities related 
to repair or replacement of parts in connection with product defects, as well as product warranties and potential asset impairments that 
arise in the ordinary course of business. An estimated loss from such contingencies is recognized as a charge to income if it is probable 
that a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate developments that could affect the 
amount of liability that has been previously accrued and reasonably possible losses disclosed, and make adjustments as appropriate. 
Significant judgment is required to determine both likelihood of there being, and the estimated amount of, a loss related to such matters.

Note 3 :  Operating Segments

We manage our business through the following operating segments:

▪

▪

CCG

DCG

IOTG

▪
▪ Mobileye
NSG

▪

▪

PSG

We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of 
product. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a 
stand-alone SoC, or a multichip package, based on Intel architecture. Platform products are used in various form factors across our CCG, 
DCG, and IOTG operating segments. Our non-platform, or adjacent, products can be combined with platform products to form 
comprehensive platform solutions to meet customer needs.

Financial Statements

Notes to Consolidated Financial Statements

82

Financial Statements

Notes to Consolidated Financial Statements

85

 
 
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. Our 
Internet of Things portfolio, presented as Internet of Things, is comprised of the IOTG and Mobileye operating segments. For 2021, the 
results of our Intel Optane memory business are included in our DCG operating segment, and our NSG segment is comprised of our 
NAND memory business to align to the pending divestiture of our NAND memory business. Refer to "Note 10: Acquisitions and 
Divestitures" within Notes to Consolidated Financial Statements for further information on the divestiture. 

We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally 
allocated to the operating segments.

We have an "all other" category that 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 CODM, who is our CEO, allocates resources to and assesses the performance of each operating segment using information about 
the operating segment's revenue and operating income (loss). The CODM does not evaluate operating segments using discrete asset 
information and we do not identify or allocate assets by operating segments. Based on the interchangeable nature of our manufacturing 
and assembly and test assets, most of the related depreciation expense is not directly identifiable within our operating segments, as it is 
included in overhead cost pools and subsequently absorbed into inventory as each product passes through our manufacturing process. 
Because our products are then sold across multiple operating segments, it is impracticable to determine the total depreciation expense 
included as a component of each operating segment's operating income (loss) results. 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. The accounting policies for segment reporting are the same as for Intel as a whole.

For the majority of RSUs granted, the number of shares of common stock issued on the date the RSUs vest is net of the minimum 

statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. The obligation to 

pay the relevant taxing authority is contingent upon continued employment. In addition, the amount of the obligation is unknown, as it is 

based in part on the market price of our common stock when the awards vest.

Income Taxes

We compute the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are 

recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets 

and liabilities, and for operating losses and tax credit carryforwards. We measure deferred tax assets and liabilities using the currently 

enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. 

We assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for 

taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. We believe 

that we will ultimately recover the deferred tax assets recorded on our Consolidated Balance Sheets. Recovery of a portion of our 

deferred tax assets is affected by management's plans with respect to holding or disposing of certain investments; therefore, such 

changes could also affect our future provision for taxes.

We recognize tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that 

the tax positions will be sustained on examination by the tax authority. The tax benefits recognized in the financial statements from such 

positions are measured based on the largest amount that is more than 50% likely to be realized upon ultimate settlement. We recognize 

interest and penalties related to unrecognized tax benefits within the provision for taxes on the Consolidated Statements of Income.

We recognize the tax impact of including certain foreign earnings in US taxable income as a period cost. We have recognized deferred 

income taxes for local country income and withholding taxes that could be incurred on distributions of certain non-US earnings or for 

outside basis differences in our subsidiaries, because we do not plan to indefinitely reinvest such earnings and basis differences. 

Remittances of non-US earnings are based on estimates and judgments of projected cash flow needs, as well as the working capital and 

investment requirements of our non-US and US operations. Material changes in our estimates of cash, working capital, and investment 

needs in various jurisdictions could require repatriation of indefinitely reinvested non-US earnings, which could be subject to applicable 

non-US income and withholding taxes. 

Leases

Loss Contingencies

Leases consist of real property and machinery and equipment. 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. Payments on leases may be 

fixed or variable, and variable lease payments are based on output of the underlying leased assets.

We are subject to loss contingencies, including various legal and regulatory proceedings, asserted and potential claims, liabilities related 

to repair or replacement of parts in connection with product defects, as well as product warranties and potential asset impairments that 

arise in the ordinary course of business. An estimated loss from such contingencies is recognized as a charge to income if it is probable 

that a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate developments that could affect the 

amount of liability that has been previously accrued and reasonably possible losses disclosed, and make adjustments as appropriate. 

Significant judgment is required to determine both likelihood of there being, and the estimated amount of, a loss related to such matters.

Note 3 :  Operating Segments

We manage our business through the following operating segments:

▪

▪

▪

▪

▪

CCG

DCG

IOTG

NSG

PSG

▪ Mobileye

We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of 

product. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a 

stand-alone SoC, or a multichip package, based on Intel architecture. Platform products are used in various form factors across our CCG, 

DCG, and IOTG operating segments. Our non-platform, or adjacent, products can be combined with platform products to form 

comprehensive platform solutions to meet customer needs.

Financial Statements

Notes to Consolidated Financial Statements

84

Financial Statements

Notes to Consolidated Financial Statements

83

 
 
Net revenue and operating income (loss) for each period were as follows:

Years Ended (In Millions)

Net revenue:

Client Computing Group

Platform

Adjacent

Data Center Group

Platform

Adjacent

Internet of Things 

IOTG

Mobileye

Non-Volatile Memory Solutions Group

Programmable Solutions Group

All other

Total net revenue

Operating income (loss):

Client Computing Group

Data Center Group

Internet of Things

IOTG

Mobileye

Non-Volatile Memory Solutions Group

Programmable Solutions Group

All other

Total operating income

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

accounting for 10% (10% in 2020 and 11% in 2019). These three customers accounted for 42% of our accounts receivable as 

of December 25, 2021 (43% as of December 26, 2020). Substantially all of the revenue from these customers was from the sale of 

platforms and other components by the CCG and DCG operating segments.

In 2021, our three largest customers accounted for 43% of our net revenue (39% in 2020 and 41% in 2019), with Dell Inc. accounting 

for 21% (17% in 2020 and 17% in 2019), Lenovo Group Limited accounting for 12% (12% in 2020 and 13% in 2019), and HP Inc. 

$ 

37,376  $ 

35,642  $ 

3,135 

40,511 

22,703 

3,118 

25,821 

3,998 

1,386 

5,384 

4,306 

1,934 

1,068 

4,415 

40,057 

23,056 

3,047 

26,103 

3,007 

967 

3,974 

5,358 

1,853 

522 

32,681 

4,465 

37,146 

21,441 

2,040 

23,481 

3,821 

879 

4,700 

4,362 

1,987 

289 

$ 

79,024  $ 

77,867  $ 

71,965 

Dilutive effect of employee incentive plans

$ 

14,672  $ 

15,129  $ 

6,997 

10,571 

1,045 

460 

1,505 

1,369 

297 

497 

241 

738 

361 

260 

15,202 

10,227 

1,097 

245 

1,342 

(1,176) 

318 

(5,384)   

(3,381)   

(3,878) 

$ 

19,456  $ 

23,678  $ 

22,035 

Net revenue by region, based on the billing location of the customer, was as follows:

Years Ended (In Millions)

China

Singapore

United States

Taiwan

Other regions

Total net revenue 

Note 4 :  Earnings Per Share

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

21,141  $ 

20,257  $ 

14,254 

14,107 

13,461 

16,061 

17,845 

16,573 

11,605 

11,587 

$ 

79,024  $ 

77,867  $ 

Years Ended (In Millions, Except Per Share Amounts)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Net income available to common stockholders

$ 

19,868  $ 

20,899  $ 

Weighted average shares of common stock outstanding—basic

4,059 

4,199 

Weighted average shares of common stock outstanding—diluted

4,090 

4,232 

Dilutive effect of convertible debt

Earnings per share—basic

Earnings per share—diluted

31 

— 

33 

— 

$ 

$ 

4.89  $ 

4.86  $ 

4.98  $ 

4.94  $ 

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. Potentially dilutive shares of common stock 

from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock 

options, the assumed vesting of outstanding RSUs, and the assumed issuance of common stock under the 2006 ESPP. In January 2020, 

we fully redeemed the remaining principal of our 2009 Debentures. We included our 2009 Debentures in the calculation of diluted 

earnings per share of common stock in 2019 by applying the treasury stock method because the average market price was above the 

Securities that would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all 

conversion price.

periods presented.

20,026 

15,650 

15,617 

10,058 

10,614 

71,965 

21,048 

4,417 

41 

15 

4,473 

4.77 

4.71 

Disaggregated net revenue for each period was as follows:

Note 5 :  Contract Liabilities

Years Ended (In Millions)

Platform revenue

CCG notebook platform

CCG desktop platform
CCG other platform1
DCG platform

IOTG platform

Adjacent revenue2

Total revenue

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Contract liabilities consist of prepayments received on long-term prepaid customer supply agreements toward future product delivery and 

other revenue deferrals from regular ongoing business activity. Contract liabilities were $498 million as of December 25, 2021 ($1.9 billion 

$ 

25,475  $ 

24,903  $ 

11,835 

66 

22,703 

3,658 

63,737 

15,287 

10,692 

47 

23,056 

2,705 

61,403 

16,464 

$ 

79,024  $ 

77,867  $ 

20,779 

11,822 

80 

21,441 

3,440 

57,562 

14,403 

71,965 

as of December 26, 2020).

2021:

(In Millions)

Concession payment

Prepaids utilized 

1  Includes our tablet and service provider 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.

The following table shows the changes in contract liability balances relating to long-term prepaid customer supply agreements during 

Prepaid customer supply agreements balance as of December 26, 2020

Prepaid customer supply agreements balance as of December 25, 2021

During the first quarter of 2021, we settled an agreement with our largest prepaid customer, whose prepayment balance made up $1.6 

billion of our contract liability balance as of December 26, 2020. We returned $950 million to the customer and recognized $584 million in 

revenue for having completed performance of the prepaid customer supply agreement. The prepaid customer supply agreement is 

excluded from the NAND memory business and is recorded as Corporate revenue in 2021 in the "all other" category presented in "Note 3: 

Operating Segments" within the Consolidated Financial Statements. 

$ 

$ 

1,625 

(950) 

(633) 

42 

Financial Statements

Notes to Consolidated Financial Statements

84

Financial Statements

Notes to Consolidated Financial Statements

87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended (In Millions)

Net revenue:

Client Computing Group

Platform

Adjacent

Platform

Adjacent

IOTG

Mobileye

Data Center Group

Internet of Things 

All other

Total net revenue

Operating income (loss):

Client Computing Group

Data Center Group

Internet of Things

IOTG

Mobileye

Years Ended (In Millions)

Platform revenue

CCG notebook platform

CCG desktop platform

CCG other platform1

DCG platform

IOTG platform

Adjacent revenue2

Total revenue

PSG products.

Non-Volatile Memory Solutions Group

Programmable Solutions Group

Non-Volatile Memory Solutions Group

Programmable Solutions Group

All other

Total operating income

Net revenue and operating income (loss) for each period were as follows:

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

In 2021, our three largest customers accounted for 43% of our net revenue (39% in 2020 and 41% in 2019), with Dell Inc. accounting 
for 21% (17% in 2020 and 17% in 2019), Lenovo Group Limited accounting for 12% (12% in 2020 and 13% in 2019), and HP Inc. 
accounting for 10% (10% in 2020 and 11% in 2019). These three customers accounted for 42% of our accounts receivable as 
of December 25, 2021 (43% as of December 26, 2020). Substantially all of the revenue from these customers was from the sale of 
platforms and other components by the CCG and DCG operating segments.

$ 

37,376  $ 

35,642  $ 

Net revenue by region, based on the billing location of the customer, was as follows:

Years Ended (In Millions)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

China

Singapore

United States

Taiwan

Other regions

Total net revenue 

Note 4 :  Earnings Per Share

$ 

21,141  $ 

20,257  $ 

14,254 

14,107 

13,461 

16,061 

17,845 

16,573 

11,605 

11,587 

$ 

79,024  $ 

77,867  $ 

20,026 

15,650 

15,617 

10,058 

10,614 

71,965 

Years Ended (In Millions, Except Per Share Amounts)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Net income available to common stockholders

$ 

19,868  $ 

20,899  $ 

Weighted average shares of common stock outstanding—basic

4,059 

4,199 

$ 

79,024  $ 

77,867  $ 

71,965 

Dilutive effect of employee incentive plans

Dilutive effect of convertible debt

31 

— 

33 

— 

Weighted average shares of common stock outstanding—diluted

4,090 

4,232 

$ 

14,672  $ 

15,129  $ 

6,997 

10,571 

Earnings per share—basic

Earnings per share—diluted

$ 

$ 

4.89  $ 

4.86  $ 

4.98  $ 

4.94  $ 

21,048 

4,417 

41 

15 

4,473 

4.77 

4.71 

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. Potentially dilutive shares of common stock 
from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock 
options, the assumed vesting of outstanding RSUs, and the assumed issuance of common stock under the 2006 ESPP. In January 2020, 
we fully redeemed the remaining principal of our 2009 Debentures. We included our 2009 Debentures in the calculation of diluted 
earnings per share of common stock in 2019 by applying the treasury stock method because the average market price was above the 
conversion price.

Disaggregated net revenue for each period was as follows:

Note 5 :  Contract Liabilities

(5,384)   

(3,381)   

(3,878) 

$ 

19,456  $ 

23,678  $ 

22,035 

Securities that would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all 
periods presented.

1  Includes our tablet and service provider 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 

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

25,475  $ 

24,903  $ 

11,835 

66 

22,703 

3,658 

63,737 

15,287 

10,692 

47 

23,056 

2,705 

61,403 

16,464 

$ 

79,024  $ 

77,867  $ 

Contract liabilities consist of prepayments received on long-term prepaid customer supply agreements toward future product delivery and 
other revenue deferrals from regular ongoing business activity. Contract liabilities were $498 million as of December 25, 2021 ($1.9 billion 
as of December 26, 2020).

The following table shows the changes in contract liability balances relating to long-term prepaid customer supply agreements during 
2021:

(In Millions)

Prepaid customer supply agreements balance as of December 26, 2020

Concession payment

Prepaids utilized 

Prepaid customer supply agreements balance as of December 25, 2021

$ 

$ 

1,625 

(950) 

(633) 

42 

During the first quarter of 2021, we settled an agreement with our largest prepaid customer, whose prepayment balance made up $1.6 
billion of our contract liability balance as of December 26, 2020. We returned $950 million to the customer and recognized $584 million in 
revenue for having completed performance of the prepaid customer supply agreement. The prepaid customer supply agreement is 
excluded from the NAND memory business and is recorded as Corporate revenue in 2021 in the "all other" category presented in "Note 3: 
Operating Segments" within the Consolidated Financial Statements. 

Financial Statements

Notes to Consolidated Financial Statements

86

Financial Statements

Notes to Consolidated Financial Statements

85

3,135 

40,511 

22,703 

3,118 

25,821 

3,998 

1,386 

5,384 

4,306 

1,934 

1,068 

1,045 

460 

1,505 

1,369 

297 

4,415 

40,057 

23,056 

3,047 

26,103 

3,007 

967 

3,974 

5,358 

1,853 

522 

497 

241 

738 

361 

260 

32,681 

4,465 

37,146 

21,441 

2,040 

23,481 

3,821 

879 

4,700 

4,362 

1,987 

289 

15,202 

10,227 

1,097 

245 

1,342 

(1,176) 

318 

20,779 

11,822 

80 

21,441 

3,440 

57,562 

14,403 

71,965 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 6 :  Other Financial Statement Details

Inventories

(In Millions)

Raw materials

Work in process

Finished goods

Total inventories

Property, Plant and Equipment

(In Millions)

Land and buildings

Machinery and equipment

Construction in progress

Total property, plant and equipment, gross

Less: accumulated depreciation

Total property, plant and equipment, net

Dec 25, 2021

Dec 26, 2020

$ 

1,441  $ 

6,656 

2,679 

$ 

10,776  $ 

908 

5,693 

1,826 

8,427 

Dec 25, 2021

Dec 26, 2020

$ 

40,039  $ 

86,955 

21,545 

148,539 

(85,294)   

37,536 

79,384 

17,309 

134,229 

(77,645) 

$ 

63,245  $ 

56,584 

Note 7 :  Restructuring and Other Charges

Restructuring and other charges (benefits) by type are as follows:

Years Ended (In Millions)

Employee severance and benefit arrangements

Litigation charges and other

Asset impairment charges

Total restructuring and other charges

Dec 25, 2021

Dec 26, 2020

$ 

$ 

48  $ 

2,291 

287 

2,626  $ 

124 

67 

7 

198 

A restructuring program was approved in the first quarter of 2020 to further align our workforce with our continuing investments in the 

business and to execute the planned divestiture of Home Gateway Platform, a division of CCG. These actions were substantially 

complete as of September 25, 2021.

Litigation charges and other includes a charge of $2.2 billion in the first quarter of 2021 related to the VLSI Technology LLC (VLSI) 

litigation, which is recorded as a Corporate charge in the "all other" category presented in "Note 3: Operating Segments" within Notes to 

Consolidated Financial Statements. Refer to "Note 19: Commitments and Contingencies" within Notes to Consolidated Financial 

Statements for further information on legal proceedings related to the VLSI litigation.

Asset impairment charges includes impairments related to the shutdown in the second quarter of 2021 of two of our non-strategic 

businesses, the results of which are included in the "all other" category presented in "Note 3: Operating Segments" within Notes to 

Consolidated Financial Statements. The goodwill related to these businesses was impaired, resulting in a charge of $238 million 

recognized in the second quarter of 2021 in the "all other" category along with other impairment charges related to these businesses.

Our depreciable property, plant and equipment assets are depreciated over the following estimated useful lives: machinery and 
equipment, 2 to 5 years; and buildings, 10 to 25 years.

Net property, plant and equipment by country at the end of each period was as follows:

(In Millions)

United States

Israel

Ireland

Other countries

Total property, plant and equipment, net

Other Accrued Liabilities

Dec 25, 2021

Dec 26, 2020

$ 

43,428  $ 

38,829 

7,754 

7,503 

4,560 

7,837 

5,828 

4,090 

$ 

63,245  $ 

56,584 

Other accrued liabilities include deferred compensation of $2.8 billion as of December 25, 2021 ($2.5 billion as of December 26, 2020) 
and collateral received for derivatives under credit support annex agreements of $1.0 billion as of December 25, 2021 ($2.0 billion as of 
December 26, 2020). 

Advertising

Advertising costs, including direct marketing, are expensed as incurred and recorded within MG&A expenses. Advertising costs were 
$1.1 billion in 2021 ($763 million in 2020 and $832 million in 2019). 

Interest and Other, Net

Years Ended (In Millions)

Interest income

Interest expense

Other, net

Total interest and other, net

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

$ 

144  $ 

272  $ 

(597)   

(29)   

(629)   

(147)   

(482)  $ 

(504)  $ 

483 

(489) 

490 

484 

Interest expense in the preceding table is net of $398 million of interest capitalized in 2021 ($338 million in 2020 and $472 million in 
2019). 

Note 8 :  Income Taxes

Income Tax Provision

Years Ended (In Millions)

Income before taxes:

Total income before taxes

Provision for taxes:

US

Non-US

Current:

Federal

State

Non-US

Deferred:

Federal

State

Non-US

Total current provision for taxes

Total deferred provision for taxes

Total provision for taxes

Effective tax rate

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

9,361 

$ 

15,452 

$ 

13,729 

12,342 

21,703 

9,626 

25,078 

10,329 

24,058 

1,304 

75 

1,198 

2,577 

(863) 

(25) 

146 

(742) 

1,120 

46 

1,244 

2,410 

1,369 

25 

375 

1,769 

4,179 

1,391 

37 

1,060 

2,488 

597 

1 

(76) 

522 

$ 

1,835 

$ 

$ 

3,010 

 8.5 %

 16.7 %

 12.5 %

Financial Statements

Notes to Consolidated Financial Statements

86

Financial Statements

Notes to Consolidated Financial Statements

89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Our depreciable property, plant and equipment assets are depreciated over the following estimated useful lives: machinery and 

equipment, 2 to 5 years; and buildings, 10 to 25 years.

Net property, plant and equipment by country at the end of each period was as follows:

Dec 25, 2021

Dec 26, 2020

$ 

1,441  $ 

6,656 

2,679 

$ 

10,776  $ 

908 

5,693 

1,826 

8,427 

Dec 25, 2021

Dec 26, 2020

$ 

40,039  $ 

86,955 

21,545 

148,539 

(85,294)   

37,536 

79,384 

17,309 

134,229 

(77,645) 

$ 

63,245  $ 

56,584 

Dec 25, 2021

Dec 26, 2020

$ 

43,428  $ 

38,829 

7,754 

7,503 

4,560 

7,837 

5,828 

4,090 

$ 

63,245  $ 

56,584 

Note 6 :  Other Financial Statement Details

Inventories

(In Millions)

Raw materials

Work in process

Finished goods

Total inventories

Property, Plant and Equipment

(In Millions)

Land and buildings

Machinery and equipment

Construction in progress

Total property, plant and equipment, gross

Less: accumulated depreciation

Total property, plant and equipment, net

(In Millions)

United States

Israel

Ireland

Other countries

Total property, plant and equipment, net

Other Accrued Liabilities

December 26, 2020). 

Advertising

Interest and Other, Net

Years Ended (In Millions)

Interest income

Interest expense

Other, net

Total interest and other, net

2019). 

Other accrued liabilities include deferred compensation of $2.8 billion as of December 25, 2021 ($2.5 billion as of December 26, 2020) 

and collateral received for derivatives under credit support annex agreements of $1.0 billion as of December 25, 2021 ($2.0 billion as of 

Advertising costs, including direct marketing, are expensed as incurred and recorded within MG&A expenses. Advertising costs were 

$1.1 billion in 2021 ($763 million in 2020 and $832 million in 2019). 

Interest expense in the preceding table is net of $398 million of interest capitalized in 2021 ($338 million in 2020 and $472 million in 

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

$ 

144  $ 

272  $ 

(597)   

(29)   

(629)   

(147)   

(482)  $ 

(504)  $ 

483 

(489) 

490 

484 

Note 7 :  Restructuring and Other Charges

Restructuring and other charges (benefits) by type are as follows:

Years Ended (In Millions)

Employee severance and benefit arrangements

Litigation charges and other

Asset impairment charges

Total restructuring and other charges

Dec 25, 2021

Dec 26, 2020

$ 

$ 

48  $ 

2,291 

287 

2,626  $ 

124 

67 

7 

198 

A restructuring program was approved in the first quarter of 2020 to further align our workforce with our continuing investments in the 
business and to execute the planned divestiture of Home Gateway Platform, a division of CCG. These actions were substantially 
complete as of September 25, 2021.

Litigation charges and other includes a charge of $2.2 billion in the first quarter of 2021 related to the VLSI Technology LLC (VLSI) 
litigation, which is recorded as a Corporate charge in the "all other" category presented in "Note 3: Operating Segments" within Notes to 
Consolidated Financial Statements. Refer to "Note 19: Commitments and Contingencies" within Notes to Consolidated Financial 
Statements for further information on legal proceedings related to the VLSI litigation.

Asset impairment charges includes impairments related to the shutdown in the second quarter of 2021 of two of our non-strategic 
businesses, the results of which are included in the "all other" category presented in "Note 3: Operating Segments" within Notes to 
Consolidated Financial Statements. The goodwill related to these businesses was impaired, resulting in a charge of $238 million 
recognized in the second quarter of 2021 in the "all other" category along with other impairment charges related to these businesses.

Note 8 :  Income Taxes

Income Tax Provision

Years Ended (In Millions)

Income before taxes:

US

Non-US

Total income before taxes

Provision for taxes:

Current:

Federal

State

Non-US

Total current provision for taxes

Deferred:

Federal

State

Non-US

Total deferred provision for taxes

Total provision for taxes

Effective tax rate

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

9,361 

$ 

15,452 

$ 

13,729 

12,342 

21,703 

9,626 

25,078 

10,329 

24,058 

1,304 

75 

1,198 

2,577 

(863) 

(25) 

146 

(742) 

$ 

1,835 

$ 

1,120 

46 

1,244 

2,410 

1,369 

25 

375 

1,769 

4,179 

1,391 

37 

1,060 

2,488 

597 

1 

(76) 

522 

$ 

3,010 

 8.5 %

 16.7 %

 12.5 %

Financial Statements

Notes to Consolidated Financial Statements

88

Financial Statements

Notes to Consolidated Financial Statements

87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before 
income taxes (effective tax rate) for each period was as follows:

Deferred and Current Income Taxes

Years Ended

Statutory federal income tax rate

Increase (reduction) in rate resulting from:

Non-US income taxed at different rates

Research and development tax credits

Restructuring of certain non-U.S. subsidiaries

Foreign derived intangible income benefit

Change in permanent reinvestment assertion

Other

Effective tax rate

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for 

financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities at 

 21.0 %

 21.0 %

 21.0 %

the end of each period were as follows:

 (5.9) 

 (2.4) 

 (3.4) 

 (2.2) 

 — 

 1.4 

 (3.7) 

 (2.1) 

 — 

 (1.9) 

 1.6 

 1.8 

 (3.7) 

 (2.3) 

 — 

 (3.2) 

 — 

 0.7 

 8.5 %

 16.7 %

 12.5 %

Our effective tax rate decreased in 2021 compared to 2020, primarily driven by one-time tax benefits due to the restructuring of certain 
non-US subsidiaries as well as a higher proportion of our income in non-US jurisdictions. As a result of the restructuring, we established 
deferred tax assets and released the valuation allowances of certain foreign deferred tax assets. The majority of these deferred tax assets 
established in 2021 fully offset the deferred tax liabilities recognized in 2020 driven by a change in our permanent reinvestment assertion 
with respect to undistributed earnings in China, as a result of the planned divestiture of our NAND memory business.

Our effective tax rate increased in 2020 compared to 2019, primarily driven by a change in our permanent reinvestment assertion with 
respect to undistributed earnings in China, as a result of the planned divestiture of our NAND memory business. It also increased due to 
the reduction in our foreign derived intangible income benefit in 2020.

We derive the effective tax rate benefit attributed to non-US income taxed at different rates primarily from our operations in Hong Kong, 
Ireland, Israel, and Malaysia. The statutory tax rates in these jurisdictions range from 12.5% to 24.0%. We are subject to reduced tax rates 
in Israel and Malaysia as long as we conduct certain eligible activities and make certain capital investments. We have conditional reduced 
tax rates that expire at various dates through 2056 and we expect to apply for renewals upon expiration.

Dec 25, 2021

Dec 26, 2020

$ 

1,019  $ 

477 

467 

914 

519 

2,010 

819 

6,225 

(2,259)   

3,966 

(486)   

(819)   

— 

(241)   

(5,759)   

$ 

(1,793)  $ 

874 

(2,667)   

$ 

(1,793)  $ 

865 

324 

— 

835 

— 

1,829 

617 

4,470 

(1,963) 

2,507 

(725) 

(735) 

(403) 

(146) 

(5,118) 

(2,611) 

1,232 

(3,843) 

(2,611) 

(4,213)   

(3,109) 

(In Millions)

Deferred tax assets:

Accrued compensation and other benefits

Share-based compensation

Litigation charge

Inventory

R&D expenditures capitalization

State credits and net operating losses

Other, net

Gross deferred tax assets

Valuation allowance

Total deferred tax assets

Deferred tax liabilities:

Property, plant and equipment

Licenses and intangibles

Unrealized gains on investments and derivatives

Unremitted earnings of non-US subsidiaries

Other, net

Total deferred tax liabilities

Net deferred tax assets (liabilities)

Reported as:

Deferred tax assets

Deferred tax liabilities

Net deferred tax assets (liabilities)

Years Ended (In Millions)

Valuation allowance for deferred tax assets

December 25, 2021

December 26, 2020

December 28, 2019

billion.

Change in valuation allowance for deferred tax assets were as follows:

Balance at 

Beginning of 

Year

Additions 

Charged 

to Expenses/

Other 

Accounts

Net

(Deductions)

Recoveries

Balance at

End of Year

$ 

$ 

$ 

1,963  $ 

1,534  $ 

1,302  $ 

442  $ 

378  $ 

239  $ 

(146)  $ 

51  $ 

(7)  $ 

2,259 

1,963 

1,534 

Deferred tax assets are included within other long-term assets on the Consolidated Balance Sheets.

The valuation allowance as of December 25, 2021 included allowances primarily related to unrealized state credit carryforwards of $2.0 

As of December 25, 2021, our federal and non-US net operating loss carryforwards for income tax purposes were $644 million and $1.1 

billion, respectively. Most of the non-US net operating loss carryforwards have no expiration date. The remaining non-US and US federal 

net operating loss carryforwards expire at various dates through 2040. A significant amount of the net operating loss carryforwards in the 

US relates to acquisitions and, as a result, is limited in the amount that can be recognized in any one year. The federal and non-US net 

operating loss carryforwards include $357 million and $860 million, respectively, that is not likely to be recovered and has been reduced 

by a valuation allowance.

At December 25, 2021, we have undistributed earnings of certain foreign subsidiaries of approximately $18.9 billion that we have 

indefinitely invested, and on which we have not recognized deferred taxes. Estimating the amount of potential tax is not practicable 

because of the complexity and variety of assumptions necessary to compute the tax.

Financial Statements

Notes to Consolidated Financial Statements

88

Financial Statements

Notes to Consolidated Financial Statements

91

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended

Statutory federal income tax rate

Increase (reduction) in rate resulting from:

Non-US income taxed at different rates

Research and development tax credits

Restructuring of certain non-U.S. subsidiaries

Foreign derived intangible income benefit

Change in permanent reinvestment assertion

Other

Effective tax rate

Our effective tax rate decreased in 2021 compared to 2020, primarily driven by one-time tax benefits due to the restructuring of certain 

deferred tax assets and released the valuation allowances of certain foreign deferred tax assets. The majority of these deferred tax assets 

established in 2021 fully offset the deferred tax liabilities recognized in 2020 driven by a change in our permanent reinvestment assertion 

with respect to undistributed earnings in China, as a result of the planned divestiture of our NAND memory business.

Our effective tax rate increased in 2020 compared to 2019, primarily driven by a change in our permanent reinvestment assertion with 

respect to undistributed earnings in China, as a result of the planned divestiture of our NAND memory business. It also increased due to 

the reduction in our foreign derived intangible income benefit in 2020.

We derive the effective tax rate benefit attributed to non-US income taxed at different rates primarily from our operations in Hong Kong, 

Ireland, Israel, and Malaysia. The statutory tax rates in these jurisdictions range from 12.5% to 24.0%. We are subject to reduced tax rates 

in Israel and Malaysia as long as we conduct certain eligible activities and make certain capital investments. We have conditional reduced 

tax rates that expire at various dates through 2056 and we expect to apply for renewals upon expiration.

The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before 

Deferred and Current Income Taxes

income taxes (effective tax rate) for each period was as follows:

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

 21.0 %

 21.0 %

 21.0 %

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for 
financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities at 
the end of each period were as follows:

 (5.9) 

 (2.4) 

 (3.4) 

 (2.2) 

 — 

 1.4 

 (3.7) 

 (2.1) 

 — 

 (1.9) 

 1.6 

 1.8 

 (3.7) 

 (2.3) 

 — 

 (3.2) 

 — 

 0.7 

 8.5 %

 16.7 %

 12.5 %

(In Millions)

Deferred tax assets:

Accrued compensation and other benefits

Share-based compensation

Litigation charge

Inventory

R&D expenditures capitalization

State credits and net operating losses

Other, net

non-US subsidiaries as well as a higher proportion of our income in non-US jurisdictions. As a result of the restructuring, we established 

Gross deferred tax assets

Valuation allowance

Total deferred tax assets

Deferred tax liabilities:

Property, plant and equipment

Licenses and intangibles

Unrealized gains on investments and derivatives

Unremitted earnings of non-US subsidiaries

Other, net

Total deferred tax liabilities

Net deferred tax assets (liabilities)

Reported as:

Deferred tax assets

Deferred tax liabilities

Net deferred tax assets (liabilities)

Dec 25, 2021

Dec 26, 2020

$ 

1,019  $ 

477 

467 

914 

519 

2,010 

819 

6,225 

(2,259)   

3,966 

865 

324 

— 

835 

— 

1,829 

617 

4,470 

(1,963) 

2,507 

(4,213)   

(3,109) 

(486)   

(819)   

— 

(241)   

(5,759)   

$ 

(1,793)  $ 

874 

(2,667)   

$ 

(1,793)  $ 

(725) 

(735) 

(403) 

(146) 

(5,118) 

(2,611) 

1,232 

(3,843) 

(2,611) 

Change in valuation allowance for deferred tax assets were as follows:

Years Ended (In Millions)

Valuation allowance for deferred tax assets

December 25, 2021

December 26, 2020

December 28, 2019

Balance at 
Beginning of 
Year

Additions 
Charged 
to Expenses/
Other 
Accounts

Net
(Deductions)
Recoveries

Balance at
End of Year

$ 

$ 

$ 

1,963  $ 

1,534  $ 

1,302  $ 

442  $ 

378  $ 

239  $ 

(146)  $ 

51  $ 

(7)  $ 

2,259 

1,963 

1,534 

Deferred tax assets are included within other long-term assets on the Consolidated Balance Sheets.

The valuation allowance as of December 25, 2021 included allowances primarily related to unrealized state credit carryforwards of $2.0 
billion.

As of December 25, 2021, our federal and non-US net operating loss carryforwards for income tax purposes were $644 million and $1.1 
billion, respectively. Most of the non-US net operating loss carryforwards have no expiration date. The remaining non-US and US federal 
net operating loss carryforwards expire at various dates through 2040. A significant amount of the net operating loss carryforwards in the 
US relates to acquisitions and, as a result, is limited in the amount that can be recognized in any one year. The federal and non-US net 
operating loss carryforwards include $357 million and $860 million, respectively, that is not likely to be recovered and has been reduced 
by a valuation allowance.

At December 25, 2021, we have undistributed earnings of certain foreign subsidiaries of approximately $18.9 billion that we have 
indefinitely invested, and on which we have not recognized deferred taxes. Estimating the amount of potential tax is not practicable 
because of the complexity and variety of assumptions necessary to compute the tax.

Financial Statements

Notes to Consolidated Financial Statements

90

Financial Statements

Notes to Consolidated Financial Statements

89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current income taxes receivable of $23 million as of December 25, 2021 ($131 million as of December 26, 2020) are included in other 
current assets. Current income taxes payable of $1.1 billion as of December 25, 2021 ($756 million as of December 26, 2020) are 
included in other accrued liabilities.

Long-term income taxes payable of $4.3 billion as of December 25, 2021 ($4.6 billion as of December 26, 2020) is primarily comprised of 
the transition tax from Tax Reform, which is payable over eight years beginning in 2018, as well as amounts for uncertain tax positions, 
reduced by the associated deduction for state taxes and non-US tax credits.

Uncertain Tax Positions

(In Millions)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

The components of gains (losses) on equity investments, net for each period were as follows:

Beginning gross unrecognized tax benefits

$ 

Settlements and effective settlements with tax authorities 

Changes in balances related to tax position taken during prior periods

Changes in balances related to tax position taken during current period

828  $ 

(25)   

(26) 

243

548  $ 

(142)   

165  

257

Ending gross unrecognized tax benefits

$ 

1,020  $ 

828  $ 

283 

(4) 

122 

147

548 

If the remaining balance of unrecognized tax benefits were recognized in a future period, it would result in a tax benefit of $721 million as 
of December 25, 2021 ($550 million as of December 26, 2020) and a reduction in the effective tax rate. Interest, penalties, and accrued 
interest related to unrecognized tax benefits were insignificant in the periods presented.

We regularly engage in discussions and negotiations with tax authorities regarding tax matters in the various jurisdictions in which we 
conduct business. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that certain 
US federal and non-US tax audits may be concluded within the next 12 months, which could increase or decrease the balance of our 
gross unrecognized tax benefits. We estimate that the unrecognized tax benefits as of December 25, 2021 could decrease by as much as 
$327 million in the next 12 months. 

We file federal, state, and non-US tax returns. Excluding pre-acquisition Altera tax years, we are no longer subject to US federal and non-
US tax examinations for years prior to 2013. For US state tax returns, we are no longer subject to tax examination for years prior to 2014.

(In Millions)

Note 9 : 

Investments

Debt Investments

Trading Assets

For trading assets still held at the reporting date, we recorded net losses of $606 million in 2021 (net gains of $694 million in 2020 and net 
gains of $26 million in 2019). Net gains on the related derivatives were $609 million in 2021 (net losses of $667 million in 2020 and net 
gains of $22 million in 2019).

Available-for-Sale Debt Investments

Available-for-sale investments include corporate debt, government debt, and financial institution instruments. Government debt includes 
instruments such as non-US government bonds and US 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. As of December 25, 2021 and December 26, 2020, substantially all time deposits were issued by institutions outside 
the US. The adjusted cost of our available-for-sale investments was $5.0 billion as of December 25, 2021 ($7.8 billion as of December 26, 
2020). The adjusted cost of our available-for-sale investments approximated the fair value for these periods.

The fair values of available-for-sale debt investments by contractual maturity as of December 25, 2021 were as follows:

(In Millions)

Due in 1 year or less

Due in 1–2 years

Due in 2–5 years

Due after 5 years

Instruments not due at a single maturity date

Total

Fair Value

$ 

2,931 

559 

281 

— 

1,216 

4,987 

$ 

Equity Investments

(In Millions)

Marketable equity securities

Non-marketable equity securities

Equity method investments

Total

Dec 25, 2021 Dec 26, 2020

$ 

2,171  $ 

4,111 

16 

1,830 

3,304 

18 

$ 

6,298  $ 

5,152 

Years Ended (In Millions)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Ongoing mark-to-market adjustments on marketable equity securities

$ 

(130)  $ 

(133)  $ 

Observable price adjustments on non-marketable equity securities

Impairment charges

Sale of equity investments and other 1

750 

(154)   

2,263 

176 

(303)   

2,164 

Total gains (losses) on equity investments, net

$ 

2,729  $ 

1,904  $ 

1  Sale of equity investments and other includes initial fair value adjustments recorded upon a security becoming marketable, realized gains (losses) 

on sales of non-marketable equity investments, and our share of equity method investee gains (losses) and distributions.

277 

293 

(122) 

1,091 

1,539 

In 2021, we recognized impairments of $154 million on non-marketable equity securities ($290 million in 2020 and $122 million in 2019).  

As of December 25, 2021 the cumulative amount of impairments for equity securities without readily determinable fair value is 

$916 million and upward observable price adjustments were $1.1 billion.

Net unrealized gains and losses for our marketable and non-marketable equity securities during each period were as follows:

Net gains (losses) recognized during the period on equity securities

$ 

1,210  $ 

1,679  $ 

734 

Less: Net (gains) losses recognized during the period on equity securities sold 

(259)   

(254)   

(424) 

Net unrealized gains (losses) recognized during the period on equity securities 

still held at the reporting date

$ 

951  $ 

1,425  $ 

310 

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

during the period

McAfee Corp.

McAfee completed its initial public offering in October 2020. Due to our 41% ownership and significant influence as of December 25, 

2021, we account for it as an equity method investment. We had no accounting carrying value as of December 25, 2021 and as of 

December 26, 2020. During 2021, we recognized McAfee dividends of $1.3 billion, which includes a special dividend of $1.1 billion paid in 

connection with the sale of McAfee's Enterprise Business to Symphony Technology Group and $228 million related to the partial sale of 

our investment in McAfee. We recognized McAfee dividends of $126 million in 2020  and $632 million in 2019.

In November 2021, McAfee announced an agreement to be acquired by an investor group, which is subject to closing conditions.

Beijing Unisoc Technology Ltd.

We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. In the first quarter of 2021, we 

recognized $471 million in observable price adjustments in our investment in Unisoc and as of December 25, 2021, the net book value of 

the investment was $1.1 billion ($658 million as of December 26, 2020).

Note 10 :  Acquisitions and Divestitures

Acquisitions

We completed four acquisitions in 2021 and six acquisitions in 2020, all of which qualified as business combinations. The consideration 

for the acquisitions in 2021 and 2020 primarily consisted of cash and was allocated to goodwill and identified intangible assets. For 

information on the assignment of goodwill to our operating segments, see "Note 11: Goodwill," and for information on the classification of 

intangible assets, see "Note 12: Identified Intangible Assets."

Financial Statements

Notes to Consolidated Financial Statements

90

Financial Statements

Notes to Consolidated Financial Statements

93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 

2,729  $ 

Total gains (losses) on equity investments, net

1,539 
1  Sale of equity investments and other includes initial fair value adjustments recorded upon a security becoming marketable, realized gains (losses) 

Current income taxes receivable of $23 million as of December 25, 2021 ($131 million as of December 26, 2020) are included in other 

current assets. Current income taxes payable of $1.1 billion as of December 25, 2021 ($756 million as of December 26, 2020) are 

Equity Investments

(In Millions)

Marketable equity securities

Non-marketable equity securities

Equity method investments

Total

Dec 25, 2021 Dec 26, 2020

$ 

2,171  $ 

4,111 

16 

1,830 

3,304 

18 

$ 

6,298  $ 

5,152 

The components of gains (losses) on equity investments, net for each period were as follows:

Years Ended (In Millions)

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Ongoing mark-to-market adjustments on marketable equity securities

$ 

(130)  $ 

(133)  $ 

Observable price adjustments on non-marketable equity securities

Impairment charges
Sale of equity investments and other 1

750 

(154)   

2,263 

176 

(303)   

2,164 

277 

293 

(122) 

1,091 

included in other accrued liabilities.

Uncertain Tax Positions

(In Millions)

Long-term income taxes payable of $4.3 billion as of December 25, 2021 ($4.6 billion as of December 26, 2020) is primarily comprised of 

the transition tax from Tax Reform, which is payable over eight years beginning in 2018, as well as amounts for uncertain tax positions, 

reduced by the associated deduction for state taxes and non-US tax credits.

Beginning gross unrecognized tax benefits

$ 

Settlements and effective settlements with tax authorities 

Changes in balances related to tax position taken during prior periods

Changes in balances related to tax position taken during current period

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

828  $ 

(25)   

(26) 

243

548  $ 

(142)   

165  

257

283 

(4) 

122 

147

548 

Ending gross unrecognized tax benefits

$ 

1,020  $ 

828  $ 

If the remaining balance of unrecognized tax benefits were recognized in a future period, it would result in a tax benefit of $721 million as 

of December 25, 2021 ($550 million as of December 26, 2020) and a reduction in the effective tax rate. Interest, penalties, and accrued 

interest related to unrecognized tax benefits were insignificant in the periods presented.

We regularly engage in discussions and negotiations with tax authorities regarding tax matters in the various jurisdictions in which we 

conduct business. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that certain 

US federal and non-US tax audits may be concluded within the next 12 months, which could increase or decrease the balance of our 

gross unrecognized tax benefits. We estimate that the unrecognized tax benefits as of December 25, 2021 could decrease by as much as 

$327 million in the next 12 months. 

For trading assets still held at the reporting date, we recorded net losses of $606 million in 2021 (net gains of $694 million in 2020 and net 

gains of $26 million in 2019). Net gains on the related derivatives were $609 million in 2021 (net losses of $667 million in 2020 and net 

Available-for-sale investments include corporate debt, government debt, and financial institution instruments. Government debt includes 

instruments such as non-US government bonds and US 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. As of December 25, 2021 and December 26, 2020, substantially all time deposits were issued by institutions outside 

the US. The adjusted cost of our available-for-sale investments was $5.0 billion as of December 25, 2021 ($7.8 billion as of December 26, 

2020). The adjusted cost of our available-for-sale investments approximated the fair value for these periods.

The fair values of available-for-sale debt investments by contractual maturity as of December 25, 2021 were as follows:

Note 9 : 

Investments

Debt Investments

Trading Assets

gains of $22 million in 2019).

Available-for-Sale Debt Investments

(In Millions)

Due in 1 year or less

Due in 1–2 years

Due in 2–5 years

Due after 5 years

Total

Instruments not due at a single maturity date

We file federal, state, and non-US tax returns. Excluding pre-acquisition Altera tax years, we are no longer subject to US federal and non-

US tax examinations for years prior to 2013. For US state tax returns, we are no longer subject to tax examination for years prior to 2014.

(In Millions)

Net gains (losses) recognized during the period on equity securities
Less: Net (gains) losses recognized during the period on equity securities sold 
during the period
Net unrealized gains (losses) recognized during the period on equity securities 
still held at the reporting date

McAfee Corp.

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

1,210  $ 

1,679  $ 

734 

(259)   

(254)   

(424) 

$ 

951  $ 

1,425  $ 

310 

on sales of non-marketable equity investments, and our share of equity method investee gains (losses) and distributions.

In 2021, we recognized impairments of $154 million on non-marketable equity securities ($290 million in 2020 and $122 million in 2019).  

As of December 25, 2021 the cumulative amount of impairments for equity securities without readily determinable fair value is 
$916 million and upward observable price adjustments were $1.1 billion.

Net unrealized gains and losses for our marketable and non-marketable equity securities during each period were as follows:

McAfee completed its initial public offering in October 2020. Due to our 41% ownership and significant influence as of December 25, 
2021, we account for it as an equity method investment. We had no accounting carrying value as of December 25, 2021 and as of 
December 26, 2020. During 2021, we recognized McAfee dividends of $1.3 billion, which includes a special dividend of $1.1 billion paid in 
connection with the sale of McAfee's Enterprise Business to Symphony Technology Group and $228 million related to the partial sale of 
our investment in McAfee. We recognized McAfee dividends of $126 million in 2020  and $632 million in 2019.

In November 2021, McAfee announced an agreement to be acquired by an investor group, which is subject to closing conditions.

Beijing Unisoc Technology Ltd.

We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. In the first quarter of 2021, we 
recognized $471 million in observable price adjustments in our investment in Unisoc and as of December 25, 2021, the net book value of 
the investment was $1.1 billion ($658 million as of December 26, 2020).

Note 10 :  Acquisitions and Divestitures

Acquisitions

We completed four acquisitions in 2021 and six acquisitions in 2020, all of which qualified as business combinations. The consideration 
for the acquisitions in 2021 and 2020 primarily consisted of cash and was allocated to goodwill and identified intangible assets. For 
information on the assignment of goodwill to our operating segments, see "Note 11: Goodwill," and for information on the classification of 
intangible assets, see "Note 12: Identified Intangible Assets."

Fair Value

$ 

2,931 

559 

281 

— 

1,216 

4,987 

$ 

Financial Statements

Notes to Consolidated Financial Statements

92

Financial Statements

Notes to Consolidated Financial Statements

91

1,904  $ 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Moovit

On May 4, 2020, we acquired Moovit, a MaaS solutions company, for total consideration of $915 million. The fair values of the assets 
acquired relate to goodwill of $638 million and intangible assets of $331 million. The goodwill arising from the acquisition is attributed to 
the expected synergies and other benefits that will be generated from the combination of Intel and Moovit. Substantially all of the goodwill 
will not be deductible for local tax purposes. The acquisition-related intangible assets are primarily related to Moovit's monthly active user 
base and application platform. The goodwill and operating results of Moovit are included in our Mobileye operating segment.

Divestitures

NAND Memory Business

In October 2020, we signed an agreement with SK hynix Inc. (SK hynix) to divest our NAND memory business for $9.0 billion in cash. The 
NAND memory business includes our NAND memory fabrication facility in Dalian, China and certain related equipment and tangible 
assets (the Fab Assets), our NAND SSD business (the NAND SSD Business), and our NAND memory technology and manufacturing 
business (the NAND OpCo Business). The transaction will be completed in two closings. 

The first closing was completed on December 29, 2021, subsequent to our fiscal 2021 year-end. At first closing, SK hynix paid $7.0 billion 
of consideration, with the remaining $2.0 billion to be received at the second closing of the transaction, expected to be no earlier than 
March 2025. In connection with the first closing, we expect to recognize a pre-tax gain of approximately $1.0 billion within interest and 
other, net, and tax expense of approximately $450 million. Based on our ongoing obligation under the NAND wafer manufacturing and 
sale agreement, approximately $600 million of the initial closing consideration will be deferred and recognized between first and second 
closing within interest and other, net.

At the first closing, we sold to SK hynix the Fab Assets and the NAND SSD Business and transferred certain employees, IP, and other 
assets related to the NAND OpCo Business to separately created wholly owned subsidiaries of Intel. The equity interest of the NAND 
OpCo Business will transfer to SK hynix at the second closing. In connection with the first closing, we and certain affiliates of SK hynix 
also entered into a NAND wafer manufacturing and sale agreement, pursuant to which we will manufacture and sell to SK hynix NAND 
memory wafers to be manufactured using the Fab Assets in Dalian, China until the second closing. We have concluded based on the 
terms of the transaction agreements that the subsidiaries will be variable interest entities for which we are not the primary beneficiary, 
because the governance structure of these entities does not allow us to direct the activities that would most significantly impact their 
economic performance. In line with this conclusion, we will fully deconsolidate our ongoing interests in the NAND OpCo Business in the 
first quarter of 2022, and will record a receivable for the second closing proceeds of $1.9 billion. 

The carrying amounts of the major classes of NAND assets held for sale included the following:

(In Millions)

Inventories

Property, plant and equipment, net

Total assets

Dec 25, 2021

Dec 26, 2020

$ 

$ 

953  $ 

5,989 

6,942  $ 

962 

4,363 

5,325 

We ceased recording depreciation on property, plant and equipment as of the date the assets triggered held for sale accounting. The 
agreement provided for continued capital purchases through first closing and we invested $1.6 billion in 2021, which is classified as 
assets held for sale at period end and sold at first closing. 

Home Gateway Platform Division

On July 31, 2020, we completed the divestiture of the majority of Home Gateway Platform, a division of CCG, for proceeds of $150 
million. The divestiture included the transfer of certain employees, equipment, and an ongoing supply agreement for future units.

Smartphone Modem Business

On December 2, 2019, we completed the divestiture of the majority of our smartphone modem business, including certain employees, IP, 
equipment, and leases. Net assets sold were $267 million. We recognized a pre-tax gain of $690 million on the divestiture. 

Note 11 :  Goodwill

(In Millions)

Client Computing Group

Data Center Group

Internet of Things Group

Programmable Solutions Group

Mobileye

All other

Total

Mobileye

All other

Total

(In Millions)

Client Computing Group

Data Center Group

Internet of Things Group 

Programmable Solutions Group 

Dec 26, 2020

Acquisitions

Other

Dec 25, 2021

$ 

4,360  $ 

$ 

26,971  $ 

196  $ 

(204)  $ 

26,963 

Dec 28, 2019

Acquisitions

Other

Dec 26, 2020

$ 

4,333  $ 

27  $ 

—  $ 

73  $ 

123 

— 

— 

— 

— 

50 

12  

638  

2  

— 

—  $ 

— 

— 

— 

34 

(238)   

— 

— 

— 

(34) 

— 

4,433 

7,355 

1,591 

10,928 

2,656 

— 

4,360 

7,232 

1,591

10,928

2,622

238

7,232 

1,591 

10,928 

2,622 

238 

7,182 

1,579 

10,290 

2,654 

238 

$ 

26,276  $ 

729  $ 

(34)  $ 

26,971 

During the second quarter of 2021, we recognized a goodwill impairment loss of $238 million related to two non-strategic businesses that 

we exited, recorded within our "all other" category. During the fourth quarters of 2021 and 2020, we completed our annual impairment 

assessments and concluded that goodwill was not impaired. The accumulated impairment loss as of December 25, 2021 was $957 

million: $365 million associated with CCG, $275 million associated with DCG, $79 million associated with IOTG, and the remainder 

associated with non-reportable segments. 

Note 12 :  Identified Intangible Assets

(In Millions)

December 25, 2021

Gross Assets

Accumulated 

Amortization

Net

Gross Assets

December 26, 2020

Accumulated 

Amortization

Net

Developed technology

$ 

11,102  $ 

(6,026)  $ 

5,076  $ 

10,188  $ 

(4,880)  $ 

Customer relationships and brands

Licensed technology and patents

In-process R&D

Other non-amortizing intangibles

2,110 

2,893 

— 

— 

(1,063)   

(1,746)   

— 

— 

1,047 

1,147 

— 

— 

2,110 

2,836 

954 

301 

(854)   

(1,629)   

— 

— 

5,308 

1,256 

1,207 

954 

301 

Total identified intangible assets

$ 

16,105  $ 

(8,835)  $ 

7,270  $ 

16,389  $ 

(7,363)  $ 

9,026 

Amortization expenses recorded for identified intangible assets in the Consolidated Statements of Income for each period and the 

weighted average useful life were as follows:

Years Ended (In Millions)

Location

Dec 25, 2021 Dec 26, 2020 Dec 28, 2019

Developed technology

Cost of sales

$ 

1,283  $ 

1,211  $ 

1,124 

9 years

Customer relationships and brands

Marketing, general and 

administrative

Licensed technology and patents

Cost of sales

209 

347 

205 

341 

200 

298 

11 years

13 years

Total amortization expenses

$ 

1,839  $ 

1,757  $ 

1,622 

1  Represents weighted average useful life in years of intangible assets during 2021. 

We expect future amortization expense for the next five years and thereafter to be as follows:

(In Millions)

2022

2023

2024

2025

2026

Thereafter

Total

Future amortization expenses

$ 

1,854  $ 

1,622  $ 

1,188  $ 

779  $ 

598  $ 

1,229  $ 

7,270 

Weighted 

Average 

Useful Life1

Financial Statements

Notes to Consolidated Financial Statements

92

Financial Statements

Notes to Consolidated Financial Statements

95

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The first closing was completed on December 29, 2021, subsequent to our fiscal 2021 year-end. At first closing, SK hynix paid $7.0 billion 

of consideration, with the remaining $2.0 billion to be received at the second closing of the transaction, expected to be no earlier than 

March 2025. In connection with the first closing, we expect to recognize a pre-tax gain of approximately $1.0 billion within interest and 

other, net, and tax expense of approximately $450 million. Based on our ongoing obligation under the NAND wafer manufacturing and 

sale agreement, approximately $600 million of the initial closing consideration will be deferred and recognized between first and second 

closing within interest and other, net.

At the first closing, we sold to SK hynix the Fab Assets and the NAND SSD Business and transferred certain employees, IP, and other 

assets related to the NAND OpCo Business to separately created wholly owned subsidiaries of Intel. The equity interest of the NAND 

OpCo Business will transfer to SK hynix at the second closing. In connection with the first closing, we and certain affiliates of SK hynix 

also entered into a NAND wafer manufacturing and sale agreement, pursuant to which we will manufacture and sell to SK hynix NAND 

memory wafers to be manufactured using the Fab Assets in Dalian, China until the second closing. We have concluded based on the 

terms of the transaction agreements that the subsidiaries will be variable interest entities for which we are not the primary beneficiary, 

because the governance structure of these entities does not allow us to direct the activities that would most significantly impact their 

economic performance. In line with this conclusion, we will fully deconsolidate our ongoing interests in the NAND OpCo Business in the 

first quarter of 2022, and will record a receivable for the second closing proceeds of $1.9 billion. 

On May 4, 2020, we acquired Moovit, a MaaS solutions company, for total consideration of $915 million. The fair values of the assets 

acquired relate to goodwill of $638 million and intangible assets of $331 million. The goodwill arising from the acquisition is attributed to 

the expected synergies and other benefits that will be generated from the combination of Intel and Moovit. Substantially all of the goodwill 

will not be deductible for local tax purposes. The acquisition-related intangible assets are primarily related to Moovit's monthly active user 

base and application platform. The goodwill and operating results of Moovit are included in our Mobileye operating segment.

Moovit

Divestitures

NAND Memory Business

Note 11 :  Goodwill

(In Millions)

Client Computing Group

Data Center Group

Internet of Things Group

Mobileye

Programmable Solutions Group

In October 2020, we signed an agreement with SK hynix Inc. (SK hynix) to divest our NAND memory business for $9.0 billion in cash. The 

NAND memory business includes our NAND memory fabrication facility in Dalian, China and certain related equipment and tangible 

assets (the Fab Assets), our NAND SSD business (the NAND SSD Business), and our NAND memory technology and manufacturing 

All other

Total

business (the NAND OpCo Business). The transaction will be completed in two closings. 

(In Millions)

Client Computing Group

Data Center Group

Internet of Things Group 

Mobileye

Programmable Solutions Group 

All other

Total

Dec 26, 2020

Acquisitions

Other

Dec 25, 2021

$ 

4,360  $ 

7,232 

1,591 

10,928 

2,622 

238 

73  $ 

123 

— 

— 

— 

— 

—  $ 

— 

— 

— 

34 

(238)   

4,433 

7,355 

1,591 

10,928 

2,656 

— 

$ 

26,971  $ 

196  $ 

(204)  $ 

26,963 

Dec 28, 2019

Acquisitions

Other

Dec 26, 2020

$ 

4,333  $ 

27  $ 

—  $ 

7,182 

1,579 

10,290 

2,654 

238 

50 

12  

638  

2  

— 

— 

— 

— 

(34) 

— 

4,360 

7,232 

1,591

10,928

2,622

238

$ 

26,276  $ 

729  $ 

(34)  $ 

26,971 

During the second quarter of 2021, we recognized a goodwill impairment loss of $238 million related to two non-strategic businesses that 
we exited, recorded within our "all other" category. During the fourth quarters of 2021 and 2020, we completed our annual impairment 
assessments and concluded that goodwill was not impaired. The accumulated impairment loss as of December 25, 2021 was $957 
million: $365 million associated with CCG, $275 million associated with DCG, $79 million associated with IOTG, and the remainder 
associated with non-reportable segments. 

The carrying amounts of the major classes of NAND assets held for sale included the following:

Note 12 :  Identified Intangible Assets

(In Millions)

Inventories

Total assets

Property, plant and equipment, net

Dec 25, 2021

Dec 26, 2020

$ 

$ 

953  $ 

5,989 

6,942  $ 

962 

4,363 

5,325 

We ceased recording depreciation on property, plant and equipment as of the date the assets triggered held for sale accounting. The 

agreement provided for continued capital purchases through first closing and we invested $1.6 billion in 2021, which is classified as 

assets held for sale at period end and sold at first closing. 

Home Gateway Platform Division

On July 31, 2020, we completed the divestiture of the majority of Home Gateway Platform, a division of CCG, for proceeds of $150 

million. The divestiture included the transfer of certain employees, equipment, and an ongoing supply agreement for future units.

Smartphone Modem Business

(In Millions)

December 25, 2021

December 26, 2020

Gross Assets

Accumulated 
Amortization

Net

Gross Assets

Accumulated 
Amortization

Net

Developed technology

$ 

11,102  $ 

(6,026)  $ 

5,076  $ 

10,188  $ 

(4,880)  $ 

Customer relationships and brands

Licensed technology and patents

In-process R&D

Other non-amortizing intangibles

2,110 

2,893 

— 

— 

(1,063)   

(1,746)   

— 

— 

1,047 

1,147 

— 

— 

2,110 

2,836 

954 

301 

(854)   

(1,629)   

— 

— 

5,308 

1,256 

1,207 

954 

301 

Total identified intangible assets

$ 

16,105  $ 

(8,835)  $ 

7,270  $ 

16,389  $ 

(7,363)  $ 

9,026 

Amortization expenses recorded for identified intangible assets in the Consolidated Statements of Income for each period and the 
weighted average useful life were as follows:

On December 2, 2019, we completed the divestiture of the majority of our smartphone modem business, including certain employees, IP, 

equipment, and leases. Net assets sold were $267 million. We recognized a pre-tax gain of $690 million on the divestiture. 

Years Ended (In Millions)

Location

Dec 25, 2021 Dec 26, 2020 Dec 28, 2019

Developed technology

Cost of sales

$ 

1,283  $ 

1,211  $ 

1,124 

Weighted 
Average 
Useful Life1
9 years

Customer relationships and brands

Marketing, general and 
administrative

Licensed technology and patents

Cost of sales

209 

347 

205 

341 

200 

298 

11 years

13 years

Total amortization expenses

$ 

1,839  $ 

1,757  $ 

1,622 

1  Represents weighted average useful life in years of intangible assets during 2021. 

We expect future amortization expense for the next five years and thereafter to be as follows:

(In Millions)

2022

2023

2024

2025

2026

Thereafter

Total

Future amortization expenses

$ 

1,854  $ 

1,622  $ 

1,188  $ 

779  $ 

598  $ 

1,229  $ 

7,270 

Financial Statements

Notes to Consolidated Financial Statements

94

Financial Statements

Notes to Consolidated Financial Statements

93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 13 :  Borrowings

Short-Term Debt

Short-term debt, which primarily includes the current portion of long-term debt, was $4.6 billion as of December 25, 2021 and $2.5 billion 
as of December 26, 2020.

The current portion of long-term debt includes debt classified as short term based on time remaining until maturity.  

We have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion under our commercial paper program.

Three-month LIBOR plus 0.35%, due May 2022

0.55%

$ 

800  $ 

800 

Dec 25, 2021

Dec 26, 2020

Effective 

Interest Rate

Amount

Amount

2.40% - 2.70%, due December 2035 - 2040

Total senior notes and other borrowings

Unamortized premium/discount and issuance costs

Hedge accounting fair value adjustments

Long-term debt

Current portion of long-term debt

Total long-term debt

1 To manage foreign currency risk associated with the Australian-dollar-denominated notes issued in 2015, we entered into currency interest rate 

swaps with an aggregate notional amount of $396 million at December 25, 2021, which effectively converted these notes to US-dollar-denominated 

notes. For further discussion on derivatives in cash flow hedging relationships, see "Note 16: Derivative Financial Instruments." Principal and 

unamortized discount/issuance costs for the Australian-dollar-denominated notes in the table above were calculated using foreign currency 

exchange rates as of December 25, 2021 and December 26, 2020.

Financial Statements

Notes to Consolidated Financial Statements

94

Financial Statements

Notes to Consolidated Financial Statements

97

Long-Term Debt

(In Millions)

Floating-rate senior note:

Fixed-rate senior notes:

1.70%, due May 2021

3.30%, due October 2021

2.35%, due May 2022

3.10%, due July 2022

4.00%, due December 20221

2.70%, due December 2022

4.10%, due November 2023

2.88%, due May 2024

2.70%, due June 2024

3.40%, due March 2025

3.70%, due July 2025

2.60%, due May 2026

3.75%, due March 2027

3.15%, due May 2027

1.60%, due August 2028

2.45%, due November 2029

3.90%, due March 2030

2.00%, due August 2031

4.00%, due December 2032

4.60%, due March 2040

2.80%, due August 2041

4.80%, due October 2041

4.25%, due December 2042

4.90%, due July 2045

4.10%, due May 2046

4.10%, due May 2047

4.10%, due August 2047

3.73%, due December 2047   

3.25%, due November 2049

4.75%, due March 2050

3.05%, due August 2051

3.10%, due February 2060

4.95%, due March 2060

3.20%, due August 2061

Oregon and Arizona bonds:

5.00%, due March 2049

5.00%, due June 2049

—%

—%

1.96%

2.70%

2.96%

2.28%

3.22%

2.31%

2.14%

3.45%

2.16%

0.63%

3.79%

1.21%

1.68%

2.39%

3.93%

2.04%

1.24%

4.61%

2.82%

2.01%

1.42%

2.13%

1.40%

1.37%

0.92%

1.77%

3.20%

4.74%

3.07%

3.11%

4.99%

3.22%

2.49%

2.13%

2.15%

— 

— 

750 

1,000 

398 

1,500 

400 

1,250 

600 

1,500 

2,250 

1,000 

1,000 

1,000 

1,000 

2,000 

1,500 

1,250 

750 

750 

750 

802 

567 

772 

1,250 

1,000 

640 

1,967 

2,000 

2,250 

1,250 

1,000 

1,000 

750 

423 

138 

438 

500 

2,000 

750 

1,000 

417 

1,500 

400 

1,250 

600 

1,500 

2,250 

1,000 

1,000 

1,000 

— 

2,000 

1,500 

— 

750 

750 

— 

802 

567 

772 

1,250 

1,000 

640 

1,967 

2,000 

2,250 

— 

1,000 

1,000 

— 

423 

138 

438 

35,214 

(378) 

1,565 

36,401 

(2,504) 

33,897 

37,695 

(405)   

811 

38,101 

(4,591)   

$ 

33,510  $ 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 13 :  Borrowings

Short-Term Debt

as of December 26, 2020.

Short-term debt, which primarily includes the current portion of long-term debt, was $4.6 billion as of December 25, 2021 and $2.5 billion 

The current portion of long-term debt includes debt classified as short term based on time remaining until maturity.  

We have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion under our commercial paper program.

Long-Term Debt

(In Millions)
Floating-rate senior note:

Dec 25, 2021

Dec 26, 2020

Effective 
Interest Rate

Amount

Amount

Three-month LIBOR plus 0.35%, due May 2022

0.55%

$ 

800  $ 

800 

Fixed-rate senior notes:
1.70%, due May 2021
3.30%, due October 2021
2.35%, due May 2022
3.10%, due July 2022
4.00%, due December 20221
2.70%, due December 2022
4.10%, due November 2023
2.88%, due May 2024
2.70%, due June 2024
3.40%, due March 2025
3.70%, due July 2025
2.60%, due May 2026
3.75%, due March 2027
3.15%, due May 2027
1.60%, due August 2028
2.45%, due November 2029
3.90%, due March 2030
2.00%, due August 2031
4.00%, due December 2032
4.60%, due March 2040
2.80%, due August 2041
4.80%, due October 2041
4.25%, due December 2042
4.90%, due July 2045
4.10%, due May 2046
4.10%, due May 2047
4.10%, due August 2047
3.73%, due December 2047   
3.25%, due November 2049
4.75%, due March 2050
3.05%, due August 2051
3.10%, due February 2060
4.95%, due March 2060
3.20%, due August 2061
Oregon and Arizona bonds:

2.40% - 2.70%, due December 2035 - 2040
5.00%, due March 2049
5.00%, due June 2049

Total senior notes and other borrowings

Unamortized premium/discount and issuance costs
Hedge accounting fair value adjustments

Long-term debt

Current portion of long-term debt

Total long-term debt

—%
—%
1.96%
2.70%
2.96%
2.28%
3.22%
2.31%
2.14%
3.45%
2.16%
0.63%
3.79%
1.21%
1.68%
2.39%
3.93%
2.04%
1.24%
4.61%
2.82%
2.01%
1.42%
2.13%
1.40%
1.37%
0.92%
1.77%
3.20%
4.74%
3.07%
3.11%
4.99%
3.22%

2.49%
2.13%
2.15%

— 
— 
750 
1,000 
398 
1,500 
400 
1,250 
600 
1,500 
2,250 
1,000 
1,000 
1,000 
1,000 
2,000 
1,500 
1,250 
750 
750 
750 
802 
567 
772 
1,250 
1,000 
640 
1,967 
2,000 
2,250 
1,250 
1,000 
1,000 
750 

500 
2,000 
750 
1,000 
417 
1,500 
400 
1,250 
600 
1,500 
2,250 
1,000 
1,000 
1,000 
— 
2,000 
1,500 
— 
750 
750 
— 
802 
567 
772 
1,250 
1,000 
640 
1,967 
2,000 
2,250 
— 
1,000 
1,000 
— 

423 
138 
438 
37,695 

(405)   
811 
38,101 
(4,591)   
33,510  $ 

423 
138 
438 
35,214 
(378) 
1,565 
36,401 
(2,504) 
33,897 

$ 

Financial Statements

Notes to Consolidated Financial Statements

96

Financial Statements

Notes to Consolidated Financial Statements

95

1 To manage foreign currency risk associated with the Australian-dollar-denominated notes issued in 2015, we entered into currency interest rate 

swaps with an aggregate notional amount of $396 million at December 25, 2021, which effectively converted these notes to US-dollar-denominated 
notes. For further discussion on derivatives in cash flow hedging relationships, see "Note 16: Derivative Financial Instruments." Principal and 
unamortized discount/issuance costs for the Australian-dollar-denominated notes in the table above were calculated using foreign currency 
exchange rates as of December 25, 2021 and December 26, 2020.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes

In 2021, we issued a total of $5.0 billion aggregate principal amount of senior notes. Net proceeds from the offerings are being used for 
general corporate purposes, which may include refinancing outstanding debt, funding for working capital, and capital expenditures. During 
2021, we repaid $500 million of our 1.70% senior notes that matured in May 2021 and $2.0 billion of our 3.30% senior notes that matured 
in October 2021. 

In 2020, we issued a total of $10.3 billion aggregate principal amount of senior notes and repaid $1.0 billion of our 1.85% senior notes that 
matured in May 2020 and $1.8 billion of our 2.45% senior notes that matured in July 2020. We also repaid $700 million in floating-rate 
senior notes that matured in May 2020. 

Our floating-rate senior note pays interest quarterly and our fixed-rate senior notes pay interest semiannually. We may redeem the fixed-
rate notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under the 
notes rank equally in right of payment with all of our other existing and future senior unsecured indebtedness and will effectively rank 
junior to all liabilities of our subsidiaries.

Revolving Credit Facility

In 2021, we entered into a $5.0 billion variable-rate revolving credit facility that, if drawn, is expected to be used for general corporate 
purposes. The revolving credit facility matures in March 2026 and had no borrowings outstanding as of December 25, 2021.

Convertible Debentures

In 2009, we issued the 2009 Debentures, which were convertible, subject to certain conditions, into shares of our common stock and paid 
a fixed rate of interest semiannually. In 2020, we paid $1.1 billion in cash to settle our remaining $372 million in principal, resulting in a 
loss of $109 million in interest and other, net and $750 million as a reduction in stockholders' equity related to the conversion feature. 

Debt Maturities

Our aggregate debt maturities, excluding commercial paper and drafts payable, based on outstanding principal as of December 25, 2021, 
by year payable, are as follows:

(In Millions)

2022

2023

2024

2025

2026

2027 and thereafter

Total

$ 

4,586  $ 

400  $ 

1,850  $ 

3,750  $ 

1,000  $ 

26,109  $  37,695 

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

Note 14 :  Fair Value

(In Millions)

Assets

Cash equivalents:

Corporate debt

Financial institution 

instruments1

Reverse repurchase

    agreements

Short-term investments:

Corporate debt

Financial institution 

instruments1

Government debt2

Trading assets:

Corporate debt

Financial institution 

instruments1

Government debt2

Other current assets:

Derivative assets

Loans receivable3

Marketable equity securities

Other long-term investments:

Corporate debt

Financial institution 

instruments1

Government debt2

Other long-term assets:

Derivative assets

Loans receivable3

Total assets measured and 

recorded at fair value

Liabilities

Other accrued liabilities:

Other long-term liabilities:

Derivative liabilities

Total liabilities measured and 

recorded at fair value

December 25, 2021

Fair Value Measured and

Recorded at Reporting Date Using

December 26, 2020

Fair Value Measured and

Recorded at Reporting Date Using

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

$ 

—  $ 

65  $ 

—  $ 

65  $ 

— 

$ 

50  $ 

— 

$ 

50 

1,216 

763 

1,979 

2,781 

636 

—  

3,417 

— 

— 

— 

— 

— 

— 

— 

50 

— 

— 

154 

— 

80 

— 

1,854 

1,595 

648 

1,243 

212 

5,143 

3,729 

12,457 

576 

152 

317 

576 

190 

24 

772 

57 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

7 

— 

1,243 

212 

5,143 

3,883 

656 

152 

2,171 

576 

190 

74 

779 

57 

1,595 

—  

1,900 

—  

1,900 

648 

—  

428 

—  

428 

—  

—  

1,179 

685 

—  

1,179 

—  

685 

—  

3,815 

—  

3,815 

  12,457 

131 

—  

2,847 

8,945 

—  

2,978 

—  

8,945 

48 

—  

644 

439 

136 

1,694 

— 

— 

—  

692 

439 

1,830 

—  

1,520 

—  

1,520 

—  

—  

257 

415 

—  

—  

257 

415 

— 

—  

1,520 

157 

30 

1,550 

—  

157 

$ 

3,354  $  28,519  $ 

7  $  31,880  $ 

3,096  $  27,131  $ 

30  $  30,257 

Derivative liabilities

$ 

4  $ 

516  $ 

—  $ 

520  $ 

— 

$ 

810  $ 

— 

$ 

810 

— 

9 

— 

9 

— 

5 

— 

5 

$ 

4  $ 

525  $ 

—  $ 

529  $ 

— 

$ 

815  $ 

— 

$ 

815 

1 Level 1 investments in financial institution instruments consist of money market funds. Level 2 investments consist primarily of commercial paper, 

certificates of deposit, time deposits, and notes and bonds issued by financial institutions.

2 Level 1 investments consist primarily of US Treasury securities. Level 2 investments in government debt consist primarily of non-US government 

debt, as well as marketable equity securities subject to security-specific restrictions.

3  The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance 

based on the contractual currency.

Financial Statements

Notes to Consolidated Financial Statements

96

Financial Statements

Notes to Consolidated Financial Statements

99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes

in October 2021. 

In 2020, we issued a total of $10.3 billion aggregate principal amount of senior notes and repaid $1.0 billion of our 1.85% senior notes that 

matured in May 2020 and $1.8 billion of our 2.45% senior notes that matured in July 2020. We also repaid $700 million in floating-rate 

senior notes that matured in May 2020. 

Our floating-rate senior note pays interest quarterly and our fixed-rate senior notes pay interest semiannually. We may redeem the fixed-

rate notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under the 

notes rank equally in right of payment with all of our other existing and future senior unsecured indebtedness and will effectively rank 

junior to all liabilities of our subsidiaries.

Revolving Credit Facility

Convertible Debentures

Debt Maturities

by year payable, are as follows:

In 2021, we entered into a $5.0 billion variable-rate revolving credit facility that, if drawn, is expected to be used for general corporate 

purposes. The revolving credit facility matures in March 2026 and had no borrowings outstanding as of December 25, 2021.

In 2009, we issued the 2009 Debentures, which were convertible, subject to certain conditions, into shares of our common stock and paid 

a fixed rate of interest semiannually. In 2020, we paid $1.1 billion in cash to settle our remaining $372 million in principal, resulting in a 

loss of $109 million in interest and other, net and $750 million as a reduction in stockholders' equity related to the conversion feature. 

Our aggregate debt maturities, excluding commercial paper and drafts payable, based on outstanding principal as of December 25, 2021, 

(In Millions)

2022

2023

2024

2025

2026

2027 and thereafter

Total

$ 

4,586  $ 

400  $ 

1,850  $ 

3,750  $ 

1,000  $ 

26,109  $  37,695 

In 2021, we issued a total of $5.0 billion aggregate principal amount of senior notes. Net proceeds from the offerings are being used for 

general corporate purposes, which may include refinancing outstanding debt, funding for working capital, and capital expenditures. During 

2021, we repaid $500 million of our 1.70% senior notes that matured in May 2021 and $2.0 billion of our 3.30% senior notes that matured 

Note 14 :  Fair Value

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

December 25, 2021

Fair Value Measured and
Recorded at Reporting Date Using

December 26, 2020

Fair Value Measured and
Recorded at Reporting Date Using

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

$ 

—  $ 

65  $ 

—  $ 

65  $ 

— 

$ 

50  $ 

— 

$ 

50 

1,216 

763 

— 

— 

— 

— 

— 

154 

— 

80 

— 

1,854 

— 

— 

50 

— 

— 

1,595 

648 

1,243 

212 

5,143 

3,729 

12,457 

576 

152 

317 

576 

190 

24 

772 

57 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

7 

— 

1,979 

2,781 

636 

—  

3,417 

1,595 

—  

1,900 

—  

1,900 

648 

—  

428 

—  

428 

1,243 

212 

5,143 

3,883 

  12,457 

656 

152 

2,171 

576 

190 

74 

779 

57 

—  

—  

1,179 

685 

—  

1,179 

—  

685 

—  

3,815 

—  

3,815 

131 

—  

2,847 

8,945 

—  

2,978 

—  

8,945 

48 

—  

644 

439 

— 

—  

692 

439 

136 

1,694 

— 

1,830 

—  

1,520 

—  

1,520 

—  

—  

257 

415 

—  

—  

257 

415 

— 

—  

1,520 

157 

30 

1,550 

—  

157 

$ 

3,354  $  28,519  $ 

7  $  31,880  $ 

3,096  $  27,131  $ 

30  $  30,257 

(In Millions)

Assets

Cash equivalents:

Corporate debt
Financial institution 

instruments1

Reverse repurchase
    agreements

Short-term investments:

Corporate debt
Financial institution 

instruments1
Government debt2

Trading assets:

Corporate debt
Financial institution 

instruments1
Government debt2
Other current assets:

Derivative assets
Loans receivable3

Marketable equity securities

Other long-term investments:

Corporate debt
Financial institution 

instruments1
Government debt2
Other long-term assets:

Derivative assets
Loans receivable3

Total assets measured and 
recorded at fair value

Liabilities

Other accrued liabilities:

Derivative liabilities

$ 

4  $ 

516  $ 

—  $ 

520  $ 

— 

$ 

810  $ 

— 

$ 

810 

Other long-term liabilities:

Derivative liabilities

Total liabilities measured and 
recorded at fair value

— 

9 

— 

9 

— 

5 

— 

5 

$ 

4  $ 

525  $ 

—  $ 

529  $ 

— 

$ 

815  $ 

— 

$ 

815 

1 Level 1 investments in financial institution instruments consist of money market funds. Level 2 investments consist primarily of commercial paper, 

certificates of deposit, time deposits, and notes and bonds issued by financial institutions.

2 Level 1 investments consist primarily of US Treasury securities. Level 2 investments in government debt consist primarily of non-US government 

debt, as well as marketable equity securities subject to security-specific restrictions.

3  The fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance 

based on the contractual currency.

Financial Statements

Notes to Consolidated Financial Statements

98

Financial Statements

Notes to Consolidated Financial Statements

97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis

Our non-marketable equity securities, equity method investments, and certain non-financial assets, such as intangible assets and 
property, plant and equipment, are recorded at fair value only if an impairment or observable price adjustment is recognized in the current 
period. If an impairment or observable price adjustment is recognized on our non-marketable equity securities during the period, we 
classify these assets as Level 3. 

We classify non-marketable equity securities and non-marketable equity method investments as Level 3. Impairments recognized on 
these investments held as of December 25, 2021 were $138 million ($266 million on investments held as of December 26, 2020 and $113 
million on investments held as of December 28, 2019).

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method 
investments that have not been remeasured or impaired in the current period, grants receivable, and issued debt. 

We classify the fair value of grants receivable as Level 2. The estimated fair value of these financial instruments approximates their 
carrying value. The aggregate carrying value of grants receivable as of December 25, 2021 was $317 million (the aggregate carrying 
value of grants receivable as of December 26, 2020 was $139 million).

Note 16 :  Derivative Financial Instruments

Volume of Derivative Activity

Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows:

(In Millions)

Foreign currency contracts

Interest rate contracts

Other

Total

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

38,024  $ 

31,209  $ 

15,209 

2,517 

14,461 

2,026 

$ 

55,750  $ 

47,696  $ 

23,981 

14,302 

1,753 

40,036 

During 2021 and 2020, we did not enter into any new pay-variable, receive-fixed interest rate swaps to hedge against changes in the fair 

value attributable to benchmark interest rates related to our outstanding senior notes. The total notional amount of outstanding pay-

variable, receive-fixed interest rate swaps was $12.0 billion as of December 25, 2021 and $12.0 billion as of December 26, 2020. In 2019, 

we unwound $7.1 billion of these swaps, resulting in a $111 million gain to be amortized over the remaining life of the debt.

We classify the fair value of issued debt (excluding commercial paper and drafts payable) as Level 2. The fair value of these instruments 
was $41.5 billion as of December 25, 2021 ($40.9 billion as of December 26, 2020). 

Fair Value of Derivative Instruments in the Consolidated Balance Sheets

Note 15 :  Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component and related tax effects for each period were as follows: 

(In Millions)

December 29, 2018

Other comprehensive income (loss) before reclassifications
Amounts reclassified out of accumulated other comprehensive 
income (loss)

Tax effects

Other comprehensive income (loss)

December 28, 2019

Other comprehensive income (loss) before reclassifications
Amounts reclassified out of accumulated other comprehensive 
income (loss)

Tax effects

Other comprehensive income (loss)

December 26, 2020

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of accumulated other comprehensive 
income (loss)

Tax effects

Other comprehensive income (loss)

December 25, 2021

Unrealized 
Holding 
Gains 
(Losses) on 
Derivatives

Actuarial 
Valuation and 
Other 
Pension 
Expenses 

Translation 
Adjustments 
and Other 

Total

Foreign currency contracts3

$ 

(123)  $ 

(11)   

(818)  $ 

(753)   

195 

(7)   

177 

54 

806 

(8)   

(121)   

677 

731 

(434)   

(226)   

140 

(520)   

67 

122 

(564)   

(1,382)   

(323)   

89 

51 

(183)   

(1,565)   

476 

101 

(126)   

451 

$ 

211  $ 

(1,114)  $ 

(33)  $ 

109 

(6)   

(22)   

81 

48 

55 

(11)   

(9)   

35 

83 

(58)   

(19)   

17 

(60)   

23  $ 

(974) 

(655) 

256 

93 

(306) 

(1,280) 

538 

70 

(79) 

529 

(751) 

(16) 

(144) 

31 

(129) 

(880) 

We estimate that we will reclassify approximately $8 million (before taxes) of net derivative gains from accumulated other comprehensive 
income (loss) into earnings within the next 12 months. 

(In Millions)

Derivatives designated as hedging instruments:

Foreign currency contracts3

Interest rate contracts

Total derivatives designated as hedging instruments

Derivatives not designated as hedging instruments:

Interest rate contracts

Equity contracts

December 25, 2021

December 26, 2020

Assets1

Liabilities2

Assets1

Liabilities2

$ 

80  $ 

163  $ 

551  $ 

774 

854 

475 

26 

80 

581 

— 

163 

297 

65 

4 

366 

1,498 

2,049 

142 

3 

48 

193 

2 

— 

2 

685 

128 

— 

813 

815 

Total derivatives not designated as hedging instruments

Total derivatives

$ 

1,435  $ 

529  $ 

2,242  $ 

1 Derivative assets are recorded as other assets, current and long-term.

2 Derivative liabilities are recorded as other liabilities, current and long-term.

3 The majority of these instruments mature within 12 months.

Amounts Offset in the Consolidated Balance Sheets

Agreements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such 

agreements at the end of each period were as follows:

December 25, 2021

Gross Amounts Not Offset 

in the Balance Sheet

Gross 

Amounts 

Recognized

Gross 

Amounts 

Offset in the 

Balance 

Sheet

Net 

Amounts 

Presented in 

the Balance 

Sheet

Cash and 

Non-Cash 

Collateral 

Financial 

Instruments

Received or 

Pledged

Net Amount

$ 

1,427  $ 

—  $ 

1,427  $ 

(332)  $ 

(986)  $ 

1,595 

3,022 

392 

— 

— 

— 

1,595 

3,022 

392 

$ 

392  $ 

—  $ 

392  $ 

— 

(1,595)   

(332)   

(2,581)   

(332)   

(332)  $ 

(60)   

(60)  $ 

109 

— 

109 

— 

— 

Derivative assets subject to master 

netting arrangements

Reverse repurchase agreements

(In Millions)

Assets:

Total assets

Liabilities:

Derivative liabilities subject to master 

netting arrangements

Total liabilities

Financial Statements

Notes to Consolidated Financial Statements

98

Financial Statements

Notes to Consolidated Financial Statements

101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis

Note 16 :  Derivative Financial Instruments

Our non-marketable equity securities, equity method investments, and certain non-financial assets, such as intangible assets and 

property, plant and equipment, are recorded at fair value only if an impairment or observable price adjustment is recognized in the current 

period. If an impairment or observable price adjustment is recognized on our non-marketable equity securities during the period, we 

Volume of Derivative Activity

classify these assets as Level 3. 

Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as follows:

We classify non-marketable equity securities and non-marketable equity method investments as Level 3. Impairments recognized on 

these investments held as of December 25, 2021 were $138 million ($266 million on investments held as of December 26, 2020 and $113 

million on investments held as of December 28, 2019).

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method 

investments that have not been remeasured or impaired in the current period, grants receivable, and issued debt. 

We classify the fair value of grants receivable as Level 2. The estimated fair value of these financial instruments approximates their 

carrying value. The aggregate carrying value of grants receivable as of December 25, 2021 was $317 million (the aggregate carrying 

value of grants receivable as of December 26, 2020 was $139 million).

(In Millions)

Foreign currency contracts

Interest rate contracts

Other

Total

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

38,024  $ 

31,209  $ 

15,209 

2,517 

14,461 

2,026 

$ 

55,750  $ 

47,696  $ 

23,981 

14,302 

1,753 

40,036 

During 2021 and 2020, we did not enter into any new pay-variable, receive-fixed interest rate swaps to hedge against changes in the fair 
value attributable to benchmark interest rates related to our outstanding senior notes. The total notional amount of outstanding pay-
variable, receive-fixed interest rate swaps was $12.0 billion as of December 25, 2021 and $12.0 billion as of December 26, 2020. In 2019, 
we unwound $7.1 billion of these swaps, resulting in a $111 million gain to be amortized over the remaining life of the debt.

We classify the fair value of issued debt (excluding commercial paper and drafts payable) as Level 2. The fair value of these instruments 

was $41.5 billion as of December 25, 2021 ($40.9 billion as of December 26, 2020). 

Fair Value of Derivative Instruments in the Consolidated Balance Sheets

(In Millions)

Derivatives designated as hedging instruments:

Foreign currency contracts3
Interest rate contracts

Total derivatives designated as hedging instruments

Derivatives not designated as hedging instruments:

Foreign currency contracts3
Interest rate contracts

Equity contracts

Total derivatives not designated as hedging instruments

December 25, 2021

December 26, 2020

Assets1

Liabilities2

Assets1

Liabilities2

$ 

80  $ 

163  $ 

551  $ 

774 

854 

475 

26 

80 

581 

— 

163 

297 

65 

4 

366 

1,498 

2,049 

142 

3 

48 

193 

2 

— 

2 

685 

128 

— 

813 

815 

Total derivatives

$ 

1,435  $ 

529  $ 

2,242  $ 

1 Derivative assets are recorded as other assets, current and long-term.
2 Derivative liabilities are recorded as other liabilities, current and long-term.
3 The majority of these instruments mature within 12 months.

Amounts Offset in the Consolidated Balance Sheets

Agreements subject to master netting arrangements with various counterparties, and cash and non-cash collateral posted under such 
agreements at the end of each period were as follows:

Note 15 :  Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component and related tax effects for each period were as follows: 

(In Millions)

December 29, 2018

income (loss)

Tax effects

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of accumulated other comprehensive 

Other comprehensive income (loss)

December 28, 2019

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of accumulated other comprehensive 

Other comprehensive income (loss)

December 26, 2020

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of accumulated other comprehensive 

income (loss)

Tax effects

income (loss)

Tax effects

Unrealized 

Actuarial 

Valuation and 

Holding 

Gains 

(Losses) on 

Derivatives

Other 

Pension 

Expenses 

Translation 

Adjustments 

and Other 

Total

$ 

(123)  $ 

(11)   

(818)  $ 

(753)   

195 

(7)   

177 

54 

806 

(8)   

(121)   

677 

731 

(434)   

(226)   

140 

(520)   

67 

122 

(564)   

(1,382)   

(323)   

89 

51 

(183)   

(1,565)   

476 

101 

(126)   

451 

(33)  $ 

109 

(6)   

(22)   

81 

48 

55 

(11)   

(9)   

35 

83 

(58)   

(19)   

17 

(60)   

23  $ 

(974) 

(655) 

256 

93 

(306) 

(1,280) 

538 

70 

(79) 

529 

(751) 

(16) 

(144) 

31 

(129) 

(880) 

Other comprehensive income (loss)

December 25, 2021

$ 

211  $ 

(1,114)  $ 

We estimate that we will reclassify approximately $8 million (before taxes) of net derivative gains from accumulated other comprehensive 

income (loss) into earnings within the next 12 months. 

December 25, 2021

Gross Amounts Not Offset 
in the Balance Sheet

Gross 
Amounts 
Recognized

Gross 
Amounts 
Offset in the 
Balance 
Sheet

Net 
Amounts 
Presented in 
the Balance 
Sheet

Financial 
Instruments

Cash and 
Non-Cash 
Collateral 
Received or 
Pledged

Net Amount

(In Millions)

Assets:

Derivative assets subject to master 
netting arrangements
Reverse repurchase agreements

Total assets

Liabilities:

Derivative liabilities subject to master 
netting arrangements

$ 

1,427  $ 

—  $ 

1,427  $ 

(332)  $ 

(986)  $ 

1,595 

3,022 

392 

— 

— 

— 

1,595 

3,022 

392 

— 

(1,595)   

(332)   

(2,581)   

(332)   

(332)  $ 

(60)   

(60)  $ 

109 

— 

109 

— 

— 

99

Financial Statements

Notes to Consolidated Financial Statements

100

Financial Statements

Notes to Consolidated Financial Statements

Total liabilities

$ 

392  $ 

—  $ 

392  $ 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 

2,235  $ 

—  $ 

2,235  $ 

(264)  $ 

(1,904)  $ 

Total liabilities

$ 

711  $ 

—  $ 

711  $ 

— 

(264)   

(1,900)   

(3,804)   

(264)   

(264)  $ 

(447)   

(447)  $ 

1,900 

4,135 

711 

— 

— 

— 

1,900 

4,135 

711 

(In Millions)

Assets:

Derivative assets subject to master 
netting arrangements
Reverse repurchase agreements

Total assets

Liabilities:

Derivative liabilities subject to master 
netting arrangements

67 

— 

67 

— 

— 

Note 17 :  Retirement Benefit Plans

Defined Contribution Plans

December 26, 2020

Gross Amounts Not Offset 
in the Balance Sheet

Gross 
Amounts 
Recognized

Gross 
Amounts 
Offset in the 
Balance 
Sheet

Net 
Amounts 
Presented in 
the Balance 
Sheet

Financial 
Instruments

Cash and 
Non-Cash 
Collateral 
Received or 
Pledged

Net Amount

Derivatives Not Designated as Hedging Instruments

The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for each period 

were as follows: 

Years Ended (In Millions)

Foreign currency contracts

Interest rate contracts

Other

Total

Location of Gains (Losses)

Recognized in Income on Derivatives

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

Interest and other, net

Interest and other, net

Various

$ 

$ 

677  $ 

(572)  $ 

31 

360 

(90)   

284 

1,068  $ 

(378)  $ 

204 

(32) 

297 

469 

We provide tax-qualified defined contribution plans for the benefit of eligible employees, former employees, and retirees in the US and 

certain other countries. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred 

basis. For the benefit of eligible US employees, we also provide an unfunded non-tax-qualified supplemental deferred compensation plan 

Upon retirement, we provide certain benefits to eligible US employees who were hired prior to 2014 under the US Retiree Medical Plan. 

The benefits can be used to pay all or a portion of the cost to purchase eligible coverage in a medical plan.

As of December 25, 2021 and December 26, 2020, the projected benefit obligation was $682 million and $741 million, which used the 

discount rate of 2.8% and 2.4%. The December 25, 2021 and December 26, 2020 corresponding fair value of plan assets was $669 

The investment strategy for US Retiree Medical Plan assets is to invest primarily in liquid assets, due to the level of expected future 

benefit payments. The assets are invested in tax-aware global equity and fixed-income long credit portfolios. Both portfolios are actively 

managed by external managers. The tax-aware global equity portfolio is composed of a diversified mix of equities in developed countries. 

The tax-aware fixed-income long credit portfolio is composed of domestic securities. The allocation to each asset class will fluctuate with 

market conditions, such as volatility and liquidity concerns, and will typically be rebalanced when outside the target ranges, which are 65% 

equity and 35% fixed income investments. As of December 25, 2021, the majority of the US Retiree Medical Plan assets were invested in 

exchange-traded equity securities and were measured at fair value using Level 1 inputs. The remaining US Retiree Medical Plan assets 

were invested in fixed income investments and were measured at fair value using Level 2 inputs.

The estimated benefit payments for this plan over the next 10 years are as follows: 

(In Millions)

2022

2023

2024

2025

2026

2027-2031

Postretirement Medical Benefits

$ 

37  $ 

38  $ 

39  $ 

41  $ 

42  $ 

219 

We obtain and secure available collateral from counterparties against obligations, including securities lending transactions and reverse 
repurchase agreements, when we deem it appropriate.

for certain highly compensated employees. 

Derivatives in Cash Flow Hedging Relationships

We expensed $444 million in 2021 and $398 million in 2020 for matching contributions based on the amount of employee contributions 

under the US qualified defined contribution and non-qualified deferred compensation plans. Prior to 2020, the contributions were 

The before-tax net gains or losses attributed to the effective portion of cash flow hedges recognized in other comprehensive income (loss) 
were $434 million net losses in 2021 ($806 million net gains in 2020 and $11 million net losses in 2019). Substantially all of our cash flow 
hedges are foreign currency contracts for all periods presented.

discretionary and we expensed $379 million in 2019.

US Retiree Medical Plan

Amounts excluded from effectiveness testing were insignificant during all periods presented.

For information on the unrealized holding gains (losses) on derivatives reclassified out of accumulated other comprehensive income into 
the Consolidated Statements of Income, see "Note 15: Other Comprehensive Income (Loss)."

Derivatives in Fair Value Hedging Relationships

million and $600 million.

The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as 
follows:

Years Ended (In Millions)
Interest rate contracts

Hedged items

Total

Gains (Losses) Recognized in Statement of 
Income on Derivatives

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

$ 

(723)  $ 

723 

—  $ 

817  $ 

(817)   

—  $ 

1,071 

(1,071) 

— 

The amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges for each period 
were as follows:

Line Item in the Consolidated Balance Sheet in Which the 
Hedged Item Is Included

Years Ended (In Millions)
Long-term debt

Carrying Amount of the 
Hedged Item Assets/
(Liabilities)

Cumulative Amount of Fair 
Value Hedging Adjustment 
Included in the Carrying 
Amount Assets/(Liabilities)

Pension Benefit Plans

Dec 25, 2021

Dec 26, 2020

Dec 25, 2021

Dec 26, 2020

We provide defined-benefit pension plans in certain countries, most significantly Ireland, the US, Israel, and Germany. The majority of the 

$ 

(12,772)  $ 

(13,495)  $ 

(775)  $ 

(1,498) 

plans' benefits have been frozen. 

Benefit Obligation and Plan Assets for Pension Benefit Plans

The vested benefit obligation for a defined-benefit pension plan is the actuarial present value of the vested benefits to which the employee 

is currently entitled based on the employee's expected date of separation or retirement.

Financial Statements

Notes to Consolidated Financial Statements

100

Financial Statements

Notes to Consolidated Financial Statements

103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross 

Amounts 

Recognized

Gross 

Amounts 

Offset in the 

Balance 

Sheet

Net 

Amounts 

Presented in 

the Balance 

Sheet

Gross Amounts Not Offset 

in the Balance Sheet

Cash and 

Non-Cash 

Collateral 

Financial 

Instruments

Received or 

Pledged

Net Amount

$ 

2,235  $ 

—  $ 

2,235  $ 

(264)  $ 

(1,904)  $ 

1,900 

4,135 

711 

— 

— 

— 

1,900 

4,135 

711 

$ 

711  $ 

—  $ 

711  $ 

— 

(264)   

(1,900)   

(3,804)   

(264)   

(264)  $ 

(447)   

(447)  $ 

67 

— 

67 

— 

— 

Derivative assets subject to master 

netting arrangements

Reverse repurchase agreements

(In Millions)

Assets:

Total assets

Liabilities:

Derivative liabilities subject to master 

netting arrangements

Total liabilities

We obtain and secure available collateral from counterparties against obligations, including securities lending transactions and reverse 

repurchase agreements, when we deem it appropriate.

Derivatives in Cash Flow Hedging Relationships

The before-tax net gains or losses attributed to the effective portion of cash flow hedges recognized in other comprehensive income (loss) 

were $434 million net losses in 2021 ($806 million net gains in 2020 and $11 million net losses in 2019). Substantially all of our cash flow 

hedges are foreign currency contracts for all periods presented.

Amounts excluded from effectiveness testing were insignificant during all periods presented.

For information on the unrealized holding gains (losses) on derivatives reclassified out of accumulated other comprehensive income into 

the Consolidated Statements of Income, see "Note 15: Other Comprehensive Income (Loss)."

Derivatives in Fair Value Hedging Relationships

The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as 

follows:

Years Ended (In Millions)

Interest rate contracts

Hedged items

Total

were as follows:

Hedged Item Is Included

Years Ended (In Millions)

Long-term debt

Gains (Losses) Recognized in Statement of 

Income on Derivatives

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

$ 

(723)  $ 

723 

—  $ 

817  $ 

(817)   

—  $ 

1,071 

(1,071) 

— 

Carrying Amount of the 

Hedged Item Assets/

(Liabilities)

Cumulative Amount of Fair 

Value Hedging Adjustment 

Included in the Carrying 

Amount Assets/(Liabilities)

Dec 25, 2021

Dec 26, 2020

Dec 25, 2021

Dec 26, 2020

$ 

(12,772)  $ 

(13,495)  $ 

(775)  $ 

(1,498) 

The amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges for each period 

December 26, 2020

Derivatives Not Designated as Hedging Instruments

The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for each period 
were as follows: 

Years Ended (In Millions)
Foreign currency contracts

Interest rate contracts

Other

Total

Location of Gains (Losses)
Recognized in Income on Derivatives

Interest and other, net

Interest and other, net

Various

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

$ 

677  $ 

(572)  $ 

31 

360 

(90)   

284 

1,068  $ 

(378)  $ 

204 

(32) 

297 

469 

Note 17 :  Retirement Benefit Plans

Defined Contribution Plans

We provide tax-qualified defined contribution plans for the benefit of eligible employees, former employees, and retirees in the US and 
certain other countries. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred 
basis. For the benefit of eligible US employees, we also provide an unfunded non-tax-qualified supplemental deferred compensation plan 
for certain highly compensated employees. 

We expensed $444 million in 2021 and $398 million in 2020 for matching contributions based on the amount of employee contributions 
under the US qualified defined contribution and non-qualified deferred compensation plans. Prior to 2020, the contributions were 
discretionary and we expensed $379 million in 2019.

US Retiree Medical Plan

Upon retirement, we provide certain benefits to eligible US employees who were hired prior to 2014 under the US Retiree Medical Plan. 
The benefits can be used to pay all or a portion of the cost to purchase eligible coverage in a medical plan.

As of December 25, 2021 and December 26, 2020, the projected benefit obligation was $682 million and $741 million, which used the 
discount rate of 2.8% and 2.4%. The December 25, 2021 and December 26, 2020 corresponding fair value of plan assets was $669 
million and $600 million.

The investment strategy for US Retiree Medical Plan assets is to invest primarily in liquid assets, due to the level of expected future 
benefit payments. The assets are invested in tax-aware global equity and fixed-income long credit portfolios. Both portfolios are actively 
managed by external managers. The tax-aware global equity portfolio is composed of a diversified mix of equities in developed countries. 
The tax-aware fixed-income long credit portfolio is composed of domestic securities. The allocation to each asset class will fluctuate with 
market conditions, such as volatility and liquidity concerns, and will typically be rebalanced when outside the target ranges, which are 65% 
equity and 35% fixed income investments. As of December 25, 2021, the majority of the US Retiree Medical Plan assets were invested in 
exchange-traded equity securities and were measured at fair value using Level 1 inputs. The remaining US Retiree Medical Plan assets 
were invested in fixed income investments and were measured at fair value using Level 2 inputs.

The estimated benefit payments for this plan over the next 10 years are as follows: 

(In Millions)

2022

2023

2024

2025

2026

2027-2031

Postretirement Medical Benefits

$ 

37  $ 

38  $ 

39  $ 

41  $ 

42  $ 

219 

Line Item in the Consolidated Balance Sheet in Which the 

Pension Benefit Plans

We provide defined-benefit pension plans in certain countries, most significantly Ireland, the US, Israel, and Germany. The majority of the 
plans' benefits have been frozen. 

Benefit Obligation and Plan Assets for Pension Benefit Plans

The vested benefit obligation for a defined-benefit pension plan is the actuarial present value of the vested benefits to which the employee 
is currently entitled based on the employee's expected date of separation or retirement.

Financial Statements

Notes to Consolidated Financial Statements

102

Financial Statements

Notes to Consolidated Financial Statements

101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Millions)

Changes in projected benefit obligation:

Beginning projected benefit obligation

Service cost

Interest cost

Actuarial (gain) loss

Currency exchange rate changes

Plan settlements

Other
Ending projected benefit obligation1
Changes in fair value of plan assets:

Beginning fair value of plan assets

Actual return on plan assets

Currency exchange rate changes

Plan settlements

Other
Ending fair value of plan assets2

Net unfunded status

Amounts recognized in the Consolidated Balance Sheets

Other long-term liabilities
Accumulated other comprehensive loss (income), before tax3
Accumulated benefit obligation4

Dec 25, 2021

Dec 26, 2020

Funding

$ 

4,929  $ 

4,284 

Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of applicable local laws and 

regulations. Additional funding may be provided as deemed appropriate. Funding for the US Retiree Medical Plan is discretionary under 

54 

91 

(284)   

(150)   

(126)   

(58)   

49 

97 

373 

261 

(79) 

(56) 

applicable laws and regulations; additional funding may be provided as deemed appropriate.

On a worldwide basis, our pension and retiree medical plans were 68% funded as of December 25, 2021. The US Pension Plan, which 

accounts for 28% of the worldwide pension and retiree medical benefit obligations, was 99% funded. Funded status is not indicative of our 

ability to pay ongoing pension benefits or of our obligation to fund retirement trusts. Required pension funding for US retirement plans is 

determined in accordance with ERISA, which sets required minimum contributions. Cumulative company funding to the US Pension Plan 

currently exceeds the minimum ERISA funding requirements.

4,456 

4,929 

Net Periodic Benefit Cost

2,878 

145 

(63) 

(126)   

(17)   

2,817 

1,639  $ 

1,639  $ 

1,445  $ 

4,086  $ 

$ 

$ 

$ 

$ 

2,654 

in 2019). 

The net periodic benefit cost for pension and US retiree medical benefits was $162 million in 2021 ($164 million in 2020 and $135 million 

203 

113

(79) 

(13) 

2,878 

2,051 

2,051 

1,911 

4,429 

1  The projected benefit obligation was approximately 30% in the US and 70% outside of the US as of December 25, 2021 and approximately 35% in 

the US and 65% outside of the US as of December 26, 2020.

2  The fair value of plan assets was approximately 50% in the US and 50% outside of the US as of December 25, 2021 and approximately 55% in the 

US and 45% outside of the US as of December 26, 2020.

3  The accumulated other comprehensive loss (income), before tax, was approximately 30% in the US and 70% outside of the US as of December 25, 

2021 and approximately 35% in the US and 65% outside of the US as of December 26, 2020. 

4  All plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets for all periods presented. 

Changes in actuarial gains and losses in the projected benefit obligation are generally driven by discount rate movement. We use the 
corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of 10% of the larger 
of the projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis.

Non-US Plan Assets

Assumptions for Pension Benefit Plans

Weighted average actuarial assumptions used to determine benefit obligations

Discount rate

Rate of compensation increase

Dec 25, 2021

Dec 26, 2020

 2.2 %

 3.2 %

 1.9 %

 3.2 %

The investments of the non-US plans are managed by insurance companies, pension funds, or third-party trustees, consistent with 

regulations or market practice of the country where the assets are invested. The investment manager makes investment decisions within 

the guidelines set by Intel or local regulations. Investments managed by qualified insurance companies or pension funds under standard 

contracts follow local regulations, and we are not actively involved in their investment strategies. For the assets that we have discretion to 

set investment guidelines, the assets are invested in developed country equity investments and fixed-income investments, either through 

index funds or direct investment. In general, the investment strategy is designed to accumulate a diversified portfolio among markets, 

asset classes, or individual securities to reduce market risk and to help ensure that the pension assets are available to pay benefits as 

they come due. The target allocation of the non-US plan assets that we have control over was approximately 45% fixed income, 35% 

2021

2020

2019

equity, and 20% hedge fund investments in 2021.

Weighted average actuarial assumptions used to determine costs

The equity investments in the non-US plan assets are invested in a diversified mix of equities of developed countries, including the US, 

Discount rate

Expected long-term rate of return on plan assets

Rate of compensation increase

 1.9 %

 2.7 %

 3.2 %

 2.3 %

 3.3 %

 3.2 %

 3.4 %

 4.7 %

 3.5 %

We establish the discount rate for each pension plan by analyzing current market long-term bond rates and matching the bond maturity 
with the average duration of the pension liabilities. 

We establish the long-term expected rate of return by developing a forward-looking, long-term return assumption for each pension fund 
asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate 
of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for 
each asset class.

and emerging markets throughout the world.

We have control over the investment strategy related to the majority of the assets measured at net asset value, which are invested in 

hedge funds, bond index funds, and equity index funds.

Estimated Future Benefit Payments for Pension Benefit Plans

Estimated benefit payments over the next 10 years are as follows:

(In Millions)

Pension benefits

2022

2023

2024

2025

2026

2027-2031

$ 

147  $ 

144  $ 

141  $ 

142  $ 

146  $ 

765 

Financial Statements

Notes to Consolidated Financial Statements

102

Financial Statements

Notes to Consolidated Financial Statements

105

Pension Plan Assets

(In Millions)

Equity securities

Fixed income

Assets measured by fair value hierarchy

Assets measured at net asset value

Cash and cash equivalents

Total pension plan assets at fair value

US Plan Assets

December 25, 2021

Dec 26, 2020

Fair Value Measured at Reporting Date Using

Level 1

Level 2

Level 3

Total

Total

$ 

$ 

—  $ 

— 

—  $ 

342  $ 

122 

464  $ 

—  $ 

20 

20  $ 

342  $ 

142 

484  $ 

2,311 

22 

$ 

2,817  $ 

320 

135 

455 

2,401 

22 

2,878 

The investment strategy for US Pension Plan assets is to manage the funded status volatility, taking into consideration the investment 

horizon and expected volatility to help ensure that sufficient assets are available to pay pension benefits as they come due. The allocation 

to each asset class will fluctuate with market conditions, such as volatility and liquidity concerns, and will typically be rebalanced when 

outside the target ranges, which are 90% fixed income and 10% equity investments. During 2021, the US Pension Plan assets were 

invested in collective investment trust funds, which are measured at net asset value. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Millions)

Changes in projected benefit obligation:

Beginning projected benefit obligation

Service cost

Interest cost

Actuarial (gain) loss

Plan settlements

Other

Currency exchange rate changes

Ending projected benefit obligation1

Changes in fair value of plan assets:

Beginning fair value of plan assets

Actual return on plan assets

Currency exchange rate changes

Plan settlements

Other

Ending fair value of plan assets2

Net unfunded status

Dec 25, 2021

Dec 26, 2020

Funding

$ 

4,929  $ 

4,284 

Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of applicable local laws and 
regulations. Additional funding may be provided as deemed appropriate. Funding for the US Retiree Medical Plan is discretionary under 
applicable laws and regulations; additional funding may be provided as deemed appropriate.

On a worldwide basis, our pension and retiree medical plans were 68% funded as of December 25, 2021. The US Pension Plan, which 
accounts for 28% of the worldwide pension and retiree medical benefit obligations, was 99% funded. Funded status is not indicative of our 
ability to pay ongoing pension benefits or of our obligation to fund retirement trusts. Required pension funding for US retirement plans is 
determined in accordance with ERISA, which sets required minimum contributions. Cumulative company funding to the US Pension Plan 
currently exceeds the minimum ERISA funding requirements.

4,456 

4,929 

Net Periodic Benefit Cost

The net periodic benefit cost for pension and US retiree medical benefits was $162 million in 2021 ($164 million in 2020 and $135 million 
in 2019). 

Pension Plan Assets

(In Millions)

Equity securities

Fixed income

Assets measured by fair value hierarchy

Assets measured at net asset value

Cash and cash equivalents

Total pension plan assets at fair value

December 25, 2021

Dec 26, 2020

Fair Value Measured at Reporting Date Using

Level 1

Level 2

Level 3

Total

Total

$ 

$ 

—  $ 

— 

—  $ 

342  $ 

122 

464  $ 

—  $ 

20 

20  $ 

342  $ 

142 

484  $ 

2,311 

22 

$ 

2,817  $ 

320 

135 

455 

2,401 

22 

2,878 

54 

91 

(284)   

(150)   

(126)   

(58)   

2,878 

145 

(63) 

(126)   

(17)   

2,817 

1,639  $ 

1,639  $ 

1,445  $ 

4,086  $ 

49 

97 

373 

261 

(79) 

(56) 

2,654 

203 

113

(79) 

(13) 

2,878 

2,051 

2,051 

1,911 

4,429 

$ 

$ 

$ 

$ 

2  The fair value of plan assets was approximately 50% in the US and 50% outside of the US as of December 25, 2021 and approximately 55% in the 

US Plan Assets

the US and 65% outside of the US as of December 26, 2020.

US and 45% outside of the US as of December 26, 2020.

The investment strategy for US Pension Plan assets is to manage the funded status volatility, taking into consideration the investment 
horizon and expected volatility to help ensure that sufficient assets are available to pay pension benefits as they come due. The allocation 
to each asset class will fluctuate with market conditions, such as volatility and liquidity concerns, and will typically be rebalanced when 
outside the target ranges, which are 90% fixed income and 10% equity investments. During 2021, the US Pension Plan assets were 
invested in collective investment trust funds, which are measured at net asset value. 

Non-US Plan Assets

The investments of the non-US plans are managed by insurance companies, pension funds, or third-party trustees, consistent with 
regulations or market practice of the country where the assets are invested. The investment manager makes investment decisions within 
the guidelines set by Intel or local regulations. Investments managed by qualified insurance companies or pension funds under standard 
contracts follow local regulations, and we are not actively involved in their investment strategies. For the assets that we have discretion to 
set investment guidelines, the assets are invested in developed country equity investments and fixed-income investments, either through 
index funds or direct investment. In general, the investment strategy is designed to accumulate a diversified portfolio among markets, 
asset classes, or individual securities to reduce market risk and to help ensure that the pension assets are available to pay benefits as 
they come due. The target allocation of the non-US plan assets that we have control over was approximately 45% fixed income, 35% 
equity, and 20% hedge fund investments in 2021.

The equity investments in the non-US plan assets are invested in a diversified mix of equities of developed countries, including the US, 
and emerging markets throughout the world.

We have control over the investment strategy related to the majority of the assets measured at net asset value, which are invested in 
hedge funds, bond index funds, and equity index funds.

Amounts recognized in the Consolidated Balance Sheets

Other long-term liabilities

Accumulated other comprehensive loss (income), before tax3

Accumulated benefit obligation4

1  The projected benefit obligation was approximately 30% in the US and 70% outside of the US as of December 25, 2021 and approximately 35% in 

3  The accumulated other comprehensive loss (income), before tax, was approximately 30% in the US and 70% outside of the US as of December 25, 

2021 and approximately 35% in the US and 65% outside of the US as of December 26, 2020. 

4  All plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets for all periods presented. 

Changes in actuarial gains and losses in the projected benefit obligation are generally driven by discount rate movement. We use the 

corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of 10% of the larger 

of the projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis.

Assumptions for Pension Benefit Plans

Weighted average actuarial assumptions used to determine benefit obligations

Discount rate

Rate of compensation increase

Weighted average actuarial assumptions used to determine costs

Discount rate

Expected long-term rate of return on plan assets

Rate of compensation increase

 1.9 %

 2.7 %

 3.2 %

2021

2020

2019

Dec 25, 2021

Dec 26, 2020

 2.2 %

 3.2 %

 2.3 %

 3.3 %

 3.2 %

 1.9 %

 3.2 %

 3.4 %

 4.7 %

 3.5 %

We establish the discount rate for each pension plan by analyzing current market long-term bond rates and matching the bond maturity 

Estimated Future Benefit Payments for Pension Benefit Plans

with the average duration of the pension liabilities. 

Estimated benefit payments over the next 10 years are as follows:

We establish the long-term expected rate of return by developing a forward-looking, long-term return assumption for each pension fund 

asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate 

of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for 

each asset class.

(In Millions)

Pension benefits

2022

2023

2024

2025

2026

2027-2031

$ 

147  $ 

144  $ 

141  $ 

142  $ 

146  $ 

765 

Financial Statements

Notes to Consolidated Financial Statements

104

Financial Statements

Notes to Consolidated Financial Statements

103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 18 :  Employee Equity Incentive Plans

Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder 
and employee interests. Our plans include our 2006 Plan and our 2006 ESPP.

Under the 2006 Plan, 866 million shares of common stock have been authorized for issuance as equity awards to employees and non-
employee directors through June 2023. As of December 25, 2021, 128 million shares of common stock remained available for future 
grants.

Leases

Note 19 :  Commitments and Contingencies

Employees purchased 22 million shares of common stock in 2021 for $925 million under the 2006 ESPP (21 million shares of common 

stock for $876 million in 2020 and 17 million shares of common stock for $688 million in 2019). As of December 25, 2021, unrecognized 

share-based compensation costs related to rights to acquire shares of common stock under the 2006 ESPP totaled $48 million. We 

expect to recognize those costs over a period of approximately two months.

Under the 2006 Plan, we grant RSUs and stock options. We grant RSUs with a service condition as well as RSUs with a market condition, 
performance condition, and a service condition, which we call PSUs. PSUs are granted to a group of senior officers and employees. For 
PSUs granted in 2021, the number of shares of our common stock to be received at vesting will range from 0% to 200% of the target 
grant amount, equally based on two metrics: our three-year cumulative non-GAAP EPS growth relative to a target rate and TSR of our 
common stock measured against the benchmark TSR of the S&P 500 IT Sector Index over a three-year period. TSR is a measure of 
stock price appreciation plus any dividends paid in this performance period. As of December 25, 2021, 15 million PSUs were outstanding. 
PSUs vest three years from the grant date. Other RSU awards and option awards generally vest over four years from the grant date. 
Stock options generally expire 10 years from the date of grant. 

Share-Based Compensation

Share-based compensation recognized in 2021 was $2.0 billion ($1.9 billion in 2020 and $1.7 billion in 2019). During 2021, the tax benefit 
that we realized for the tax deduction from share-based awards totaled $377 million ($380 million in 2020 and $359 million in 2019).

We estimate the fair value of RSUs with a service condition or performance condition using the value of our common stock on the date of 
grant, reduced by the present value of dividends expected to be paid on our shares of common stock prior to vesting. We estimate the fair 
value of RSUs with a market condition using a Monte Carlo simulation model as of the date of grant using historical volatility. 

Restricted Stock Units

Weighted average assumptions used in estimating grant values were as follows:

We recognized operating leased assets in other long-term assets of $549 million and corresponding accrued liabilities of $180 million, and 

other long-term liabilities of $295 million as of December 25, 2021. Our operating leases have remaining terms of 1 to 14 years and may 

include options to extend the leases for up to 37 years. The weighted average remaining lease term was 3.8 years, and the weighted 

average discount rate was 2.5% as of December 25, 2021 for our operating leases. 

Operating lease expense was $798 million in 2021 ($416 million in 2020 and $185 million in 2019), including $620 million in variable lease 

expense in 2021. 

In 2021, we signed finance leases for supplier capacity extending over approximately eight years. The leases will commence upon start of 

supplier production expected in 2023 with prepayments totaling approximately $980 million in 2022 and 2023. These prepayments will be 

recognized in property, plant and equipment upon payment.

Discounted and undiscounted lease payments under non-cancelable leases as of December 25, 2021, excluding non-lease components, 

2022

2023

2024

2025

2026

 Thereafter

Total

183  $ 

139  $ 

79  $ 

55  $ 

16  $ 

27  $ 

$ 

$ 

451  $ 

529 

499 

980 

1,455 

$ 

$ 

Estimated values

Risk-free interest rate

Dividend yield

Volatility

Summary of activities:

December 26, 2020

Granted

Vested

Forfeited

December 25, 2021

Expected to vest

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

50.82 

$ 

54.82 

$ 

48.06 

 0.2 %

 2.6 %

 37 %

 0.4 %

 2.3 %

 30 %

 2.3 %

 2.5 %

 25 %

Number of
Stock Units
(In Millions)

Weighted 
Average Grant-
Date Fair Value

82.7  $ 

76.8  $ 

(30.2)  $ 

(11.3)  $ 

118.0  $ 

105.9  $ 

50.14 

50.82 

47.64 

49.48 

51.29 

51.47 

The aggregate fair value of awards that vested in 2021 was $1.7 billion ($1.9 billion in 2020 and $1.9 billion in 2019), which represents the 
market value of our common stock on the date that the RSUs vested. The grant-date fair value of awards that vested in 2021 was $1.4 
billion ($1.3 billion in 2020 and $1.3 billion in 2019). The number of RSUs vested includes shares of common stock that we withheld on 
behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated 
future forfeitures.

As of December 25, 2021, unrecognized compensation costs related to RSUs granted under our equity incentive plans were $3.8 billion. 
We expect to recognize those costs over a weighted average period of 1.5 years.

Stock Purchase Plan

The 2006 ESPP allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific 
dates. Under the 2006 ESPP, 523 million shares of common stock are authorized for issuance through August 2026. As of December 25, 
2021, 227 million shares of common stock remained available for issuance.

were as follows:

(In Millions)

Operating lease payments

Finance lease payments

Present value of lease payments

Commitments

agreement. 

Legal Proceedings

Commitments for capital expenditures totaled $27.0 billion as of December 25, 2021 ($8.6 billion as of December 26, 2020), a substantial 

majority of which will be due within the next 12 months. Other purchase obligations and commitments totaled approximately $12.4 billion 

as of December 25, 2021 (approximately $2.6 billion as of December 26, 2020). Other purchase obligations and commitments include 

payments due under supply agreements and various types of licenses and agreements to purchase goods or services. Contractual 

obligations for purchases of goods or services relate to agreements that are enforceable and legally binding and that specify all significant 

terms, including fixed or minimum quantities, fixed, minimum, or variable price provisions, and the approximate timing of the transaction. 

For obligations with cancellation provisions, amounts are limited to the non-cancelable portion or the minimum cancellation fee under the 

We are regularly party to various ongoing claims, litigation, and other proceedings, including those noted in this section. In the first quarter 

of 2021, we accrued a charge of $2.2 billion related to litigation involving VLSI, described below. Excluding this charge, management at 

present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial 

position, results of operations, cash flows, or overall trends; however, legal proceedings and related government investigations are subject 

to inherent uncertainties, and unfavorable rulings, excessive verdicts, or other events could occur. Unfavorable resolutions could include 

substantial monetary damages, fines, or penalties. Certain of these outstanding matters include speculative, substantial or indeterminate 

monetary awards. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could 

include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular 

business practices, or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results 

of operations, financial position, and overall trends. We might also conclude that settling one or more such matters is in the best interests 

of our stockholders, employees, and customers, and any such settlement could include substantial payments. Except as specifically 

described below, we have not concluded that settlement of any of the legal proceedings noted in this section is appropriate at this time. 

Financial Statements

Notes to Consolidated Financial Statements

104

Financial Statements

Notes to Consolidated Financial Statements

107

 
 
 
 
 
 
 
 
Note 18 :  Employee Equity Incentive Plans

Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder 

and employee interests. Our plans include our 2006 Plan and our 2006 ESPP.

Under the 2006 Plan, 866 million shares of common stock have been authorized for issuance as equity awards to employees and non-

employee directors through June 2023. As of December 25, 2021, 128 million shares of common stock remained available for future 

grants.

Under the 2006 Plan, we grant RSUs and stock options. We grant RSUs with a service condition as well as RSUs with a market condition, 

performance condition, and a service condition, which we call PSUs. PSUs are granted to a group of senior officers and employees. For 

PSUs granted in 2021, the number of shares of our common stock to be received at vesting will range from 0% to 200% of the target 

grant amount, equally based on two metrics: our three-year cumulative non-GAAP EPS growth relative to a target rate and TSR of our 

common stock measured against the benchmark TSR of the S&P 500 IT Sector Index over a three-year period. TSR is a measure of 

stock price appreciation plus any dividends paid in this performance period. As of December 25, 2021, 15 million PSUs were outstanding. 

PSUs vest three years from the grant date. Other RSU awards and option awards generally vest over four years from the grant date. 

Stock options generally expire 10 years from the date of grant. 

Share-Based Compensation

Share-based compensation recognized in 2021 was $2.0 billion ($1.9 billion in 2020 and $1.7 billion in 2019). During 2021, the tax benefit 

that we realized for the tax deduction from share-based awards totaled $377 million ($380 million in 2020 and $359 million in 2019).

Employees purchased 22 million shares of common stock in 2021 for $925 million under the 2006 ESPP (21 million shares of common 
stock for $876 million in 2020 and 17 million shares of common stock for $688 million in 2019). As of December 25, 2021, unrecognized 
share-based compensation costs related to rights to acquire shares of common stock under the 2006 ESPP totaled $48 million. We 
expect to recognize those costs over a period of approximately two months.

Note 19 :  Commitments and Contingencies

Leases

We recognized operating leased assets in other long-term assets of $549 million and corresponding accrued liabilities of $180 million, and 
other long-term liabilities of $295 million as of December 25, 2021. Our operating leases have remaining terms of 1 to 14 years and may 
include options to extend the leases for up to 37 years. The weighted average remaining lease term was 3.8 years, and the weighted 
average discount rate was 2.5% as of December 25, 2021 for our operating leases. 

Operating lease expense was $798 million in 2021 ($416 million in 2020 and $185 million in 2019), including $620 million in variable lease 
expense in 2021. 

In 2021, we signed finance leases for supplier capacity extending over approximately eight years. The leases will commence upon start of 
supplier production expected in 2023 with prepayments totaling approximately $980 million in 2022 and 2023. These prepayments will be 
recognized in property, plant and equipment upon payment.

Discounted and undiscounted lease payments under non-cancelable leases as of December 25, 2021, excluding non-lease components, 
were as follows:

We estimate the fair value of RSUs with a service condition or performance condition using the value of our common stock on the date of 

grant, reduced by the present value of dividends expected to be paid on our shares of common stock prior to vesting. We estimate the fair 

(In Millions)

value of RSUs with a market condition using a Monte Carlo simulation model as of the date of grant using historical volatility. 

Restricted Stock Units

Weighted average assumptions used in estimating grant values were as follows:

Operating lease payments

Finance lease payments

Present value of lease payments

$ 

$ 

Commitments

2022

2023

2024

2025

2026

 Thereafter

Total

183  $ 

139  $ 

79  $ 

55  $ 

16  $ 

27  $ 

451  $ 

529 

$ 

$ 

499 

980 

1,455 

Commitments for capital expenditures totaled $27.0 billion as of December 25, 2021 ($8.6 billion as of December 26, 2020), a substantial 
majority of which will be due within the next 12 months. Other purchase obligations and commitments totaled approximately $12.4 billion 
as of December 25, 2021 (approximately $2.6 billion as of December 26, 2020). Other purchase obligations and commitments include 
payments due under supply agreements and various types of licenses and agreements to purchase goods or services. Contractual 
obligations for purchases of goods or services relate to agreements that are enforceable and legally binding and that specify all significant 
terms, including fixed or minimum quantities, fixed, minimum, or variable price provisions, and the approximate timing of the transaction. 
For obligations with cancellation provisions, amounts are limited to the non-cancelable portion or the minimum cancellation fee under the 
agreement. 

Legal Proceedings

We are regularly party to various ongoing claims, litigation, and other proceedings, including those noted in this section. In the first quarter 
of 2021, we accrued a charge of $2.2 billion related to litigation involving VLSI, described below. Excluding this charge, management at 
present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial 
position, results of operations, cash flows, or overall trends; however, legal proceedings and related government investigations are subject 
to inherent uncertainties, and unfavorable rulings, excessive verdicts, or other events could occur. Unfavorable resolutions could include 
substantial monetary damages, fines, or penalties. Certain of these outstanding matters include speculative, substantial or indeterminate 
monetary awards. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could 
include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular 
business practices, or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results 
of operations, financial position, and overall trends. We might also conclude that settling one or more such matters is in the best interests 
of our stockholders, employees, and customers, and any such settlement could include substantial payments. Except as specifically 
described below, we have not concluded that settlement of any of the legal proceedings noted in this section is appropriate at this time. 

Dec 25, 2021

Dec 26, 2020

Dec 28, 2019

$ 

50.82 

$ 

54.82 

$ 

48.06 

 0.2 %

 2.6 %

 37 %

 0.4 %

 2.3 %

 30 %

 2.3 %

 2.5 %

 25 %

Number of

Stock Units

(In Millions)

Weighted 

Average Grant-

Date Fair Value

82.7  $ 

76.8  $ 

(30.2)  $ 

(11.3)  $ 

118.0  $ 

105.9  $ 

50.14 

50.82 

47.64 

49.48 

51.29 

51.47 

Estimated values

Risk-free interest rate

Dividend yield

Volatility

Summary of activities:

December 26, 2020

Granted

Vested

Forfeited

December 25, 2021

Expected to vest

future forfeitures.

Stock Purchase Plan

The aggregate fair value of awards that vested in 2021 was $1.7 billion ($1.9 billion in 2020 and $1.9 billion in 2019), which represents the 

market value of our common stock on the date that the RSUs vested. The grant-date fair value of awards that vested in 2021 was $1.4 

billion ($1.3 billion in 2020 and $1.3 billion in 2019). The number of RSUs vested includes shares of common stock that we withheld on 

behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated 

As of December 25, 2021, unrecognized compensation costs related to RSUs granted under our equity incentive plans were $3.8 billion. 

We expect to recognize those costs over a weighted average period of 1.5 years.

The 2006 ESPP allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific 

dates. Under the 2006 ESPP, 523 million shares of common stock are authorized for issuance through August 2026. As of December 25, 

2021, 227 million shares of common stock remained available for issuance.

Financial Statements

Notes to Consolidated Financial Statements

106

Financial Statements

Notes to Consolidated Financial Statements

105

 
 
 
 
 
 
 
 
European Commission Competition Matter
In 2001, the EC commenced an investigation regarding claims by Advanced Micro Devices, Inc. (AMD) that we used unfair business 
practices to persuade customers to buy our microprocessors. We received numerous requests for information and documents from the 
EC and we responded to each of those requests. The EC issued a Statement of Objections in July 2007 and held a hearing on that 
Statement in March 2008. The EC issued a Supplemental Statement of Objections in July 2008. In May 2009, the EC issued a decision 
finding that we had violated Article 82 of the EC Treaty and Article 54 of the European Economic Area Agreement. In general, the EC 
found that we violated Article 82 (later renumbered as Article 102 by a new treaty) by offering alleged "conditional rebates and payments" 
that required our customers to purchase all or most of their x86 microprocessors from us. The EC also found that we violated Article 82 by 
making alleged "payments to prevent sales of specific rival products." The EC imposed a fine in the amount of €1.1 billion ($1.4 billion as 
of May 2009), which we subsequently paid during the third quarter of 2009, and ordered us to "immediately bring to an end the 
infringement referred to in" the EC decision.

The EC decision contained no specific direction on whether or how we should modify our business practices. Instead, the decision stated 
that we should "cease and desist" from further conduct that, in the EC's opinion, would violate applicable law. We took steps, which are 
subject to the EC's ongoing review, to comply with that decision pending appeal. We had discussions with the EC to better understand the 
decision and to explain changes to our business practices.

We appealed the EC decision to the Court of First Instance (which has been renamed the General Court) in July 2009. The hearing of our 
appeal took place in July 2012. In June 2014, the General Court rejected our appeal in its entirety. In August 2014, we filed an appeal with 
the European Court of Justice. In November 2014, Intervener Association for Competitive Technologies filed comments in support of 
Intel's grounds of appeal. The EC and interveners filed briefs in November 2014, we filed a reply in February 2015, and the EC filed a 
rejoinder in April 2015. The Court of Justice held oral argument in June 2016. In October 2016, Advocate General Wahl, an advisor to the 
Court of Justice, issued a non-binding advisory opinion that favored Intel on a number of grounds. The Court of Justice issued its decision 
in September 2017, setting aside the judgment of the General Court and sending the case back to the General Court to examine whether 
the rebates at issue were capable of restricting competition. The General Court appointed a panel of five judges to consider our appeal of 
the EC's 2009 decision in light of the Court of Justice's clarifications of the law. In November 2017, the parties filed initial "Observations" 
about the Court of Justice's decision and the appeal and were invited by the General Court to offer supplemental comments to each 
other's "Observations," which the parties submitted in March 2018. Responses to other questions posed by the General Court were filed 
in May and June 2018. The General Court heard oral argument in March 2020, and on January 26, 2022 issued a decision annulling the 
EC’s finding against Intel regarding rebates as well as the fine on Intel. Any appeal of the General Court’s decision must be brought before 
the Court of Justice by early April 2022.

Litigation Related to Security Vulnerabilities
In June 2017, a Google research team notified us and other companies that it had identified security vulnerabilities (now commonly 
referred to as "Spectre" and "Meltdown") that affect many types of microprocessors, including our products. As is standard when findings 
like these are presented, we worked together with other companies in the industry to verify the research and develop and validate 
software and firmware updates for impacted technologies. On January 3, 2018, information on the security vulnerabilities was publicly 
reported, before software and firmware updates to address the vulnerabilities were made widely available. 

Numerous lawsuits have been filed against Intel and, in certain cases, our current and former executives and directors, in US federal and 
state courts and in certain courts in other countries relating to the Spectre and Meltdown security vulnerabilities, as well as other variants 
of these vulnerabilities that have since been identified.

As of January 25, 2022, consumer class action lawsuits relating to the above class of security vulnerabilities publicly disclosed since 2018 
were pending in the United States, Canada, and Israel. The plaintiffs, who purport to represent various classes of purchasers of our 
products, generally claim to have been harmed by Intel's actions and/or omissions in connection with the security vulnerabilities and 
assert a variety of common law and statutory claims seeking monetary damages and equitable relief. In the United States, numerous 
individual class action suits filed in various jurisdictions were consolidated in April 2018 for all pretrial proceedings in the US District Court 
for the District of Oregon. In March 2020, the court granted Intel's motion to dismiss the complaint in that consolidated action but granted 
plaintiffs leave to amend. In March 2021, the court granted Intel's motion to dismiss the amended complaint but granted plaintiffs leave to 
further amend in part. Plaintiffs filed a further amended complaint in May 2021, which Intel moved to dismiss in July 2021. In Canada, in 
one case pending in the Superior Court of Justice of Ontario, an initial status conference has not yet been scheduled. In a second case 
pending in the Superior Court of Justice of Quebec, a stay of the case was in effect until December 2021, and the parties' joint request for 
a further stay to May 2022 is pending with the court. In Israel, two consumer class action lawsuits were filed in the District Court of Haifa. 
The plaintiff voluntarily dismissed the first lawsuit in July 2021. Intel filed a motion to stay the second case pending resolution of the 
consolidated proceeding in the US, and a hearing on that motion has been scheduled for April 2022. Additional lawsuits and claims may 
be asserted seeking monetary damages or other related relief. We dispute the pending claims described above and intend to defend 
those lawsuits vigorously. Given the procedural posture and the nature of those cases, including that the pending proceedings are in the 
early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or classes being certified 
or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be resolved, we are unable 
to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from those matters.

In addition to these lawsuits, Intel stockholders filed multiple shareholder derivative lawsuits since January 2018 against certain current 

and former members of our Board of Directors and certain current and former officers, alleging that the defendants breached their duties 

to Intel in connection with the disclosure of the security vulnerabilities and the failure to take action in relation to alleged insider trading. 

The complaints sought to recover damages from the defendants on behalf of Intel. Some of the derivative actions were filed in the US 

District Court for the Northern District of California and were consolidated, and the others were filed in the Superior Court of the State of 

California in San Mateo County and were consolidated. The federal court granted defendants' motion to dismiss in August 2018 on the 

ground that plaintiffs failed to plead facts sufficient to show they were excused from making a pre-lawsuit demand on the Board. The 

federal court granted plaintiffs leave to amend their complaint, but subsequently dismissed the cases in January 2019 at plaintiffs' request. 

The California Superior Court entered judgment in defendants' favor in August 2020 after granting defendants' motions to dismiss 

plaintiffs' consolidated complaint and three successive amended complaints, all for failure to plead facts sufficient to show plaintiffs were 

excused from making a pre-lawsuit demand on the Board. Plaintiffs filed a notice of appeal of the California court's judgment in October 

2020. In January 2021, another Intel stockholder filed a derivative lawsuit in the Superior Court in San Mateo County against certain 

current and former officers and members of our Board of Directors. The lawsuit asserts claims similar to those dismissed in August 2020, 

except that it alleges that the stockholder made a pre-lawsuit demand on our Board of Directors and that the demand was wrongfully 

refused. In May 2021, the court granted defendants' motion to stay the action pending the outcome of any litigation plaintiff may choose to 

file in Delaware where Intel's bylaws require such claims to be filed.

Litigation Related to 7nm Product Delay Announcement

Starting in July 2020, five securities class action lawsuits were filed in the United States District Court for the Northern District of California 

against Intel and certain current and former officers based on Intel’s July 2020 announcement of 7nm product delays. The plaintiffs, who 

purport to represent classes of acquirers of Intel stock between October 2019 and July 2020, generally allege that the defendants violated 

securities laws by making false or misleading statements about the timeline for 7nm products in light of subsequently announced delays. 

In October 2020, the court consolidated the lawsuits and appointed lead plaintiffs, and in January 2021 the lead plaintiffs filed a 

consolidated complaint. Defendants moved to dismiss the consolidated complaint in March 2021. We dispute the claims described above 

and intend to defend the lawsuits vigorously. Given the procedural posture and the nature of those cases, including that the pending 

proceedings are in the early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or 

classes being certified or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be  

resolved, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from those matters. 

In July 2021, Intel introduced a new process node naming structure, and the 7nm process is now Intel 4.

Litigation Related to Patent and IP Claims

We have had IP infringement lawsuits filed against us, including but not limited to those discussed below. Most involve claims that certain 

of our products, services, and technologies infringe others' IP rights. Adverse results in these lawsuits may include awards of substantial 

fines and penalties, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, 

or services. As a result, we may have to change our business practices, and develop non-infringing products or technologies, which could 

result in a loss of revenues for us and otherwise harm our business. In addition, certain agreements with our customers require us to 

indemnify them against certain IP infringement claims, which can increase our costs as a result of defending such claims, and may require 

that we pay significant damages, accept product returns, or supply our customers with non-infringing products if there were an adverse 

ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and technologies, as 

a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business.

Institute of Microelectronics, Chinese Academy of Sciences v. Intel China, Ltd., et al.

In February 2018, the Institute of Microelectronics of the Chinese Academy of Sciences (IMECAS) sued Intel China, Ltd., Dell China, Ltd. 

(Dell), and Beijing Jingdong Century Information Technology, Ltd. (JD) for patent infringement in the Beijing Higher People's Court. 

IMECAS alleges that Intel's Core series processors infringe Chinese patent CN 102956457 ('457 Patent). The complaint demands an 

injunction and damages of at least RMB 200 million plus the cost of litigation. Intel is indemnifying Dell and JD. The Beijing Higher 

People's Court held a final trial hearing in September 2021. No ruling has been issued. In March 2018, Intel filed an invalidation request 

on the '457 patent with the China National Intellectual Property Administration (CNIPA). The CNIPA held an oral hearing in September 

2018 and in February 2019 upheld the validity of the challenged claims. Intel filed a complaint in April 2019 with the Beijing Intellectual 

Property (IP) Court challenging the February 2019 CNIPA ruling. The Beijing IP Court held oral arguments in July and October 2021 and 

in November 2021 affirmed the CNIPA ruling. In December 2021, Intel filed an appeal with the Supreme People's Court challenging the 

Beijing IP Court's affirmance of the CNIPA ruling. In January 2020, Intel filed a second invalidation request on the '457 patent with the 

CNIPA, for which the CNIPA heard oral argument in July 2020 and in November 2020 held the challenged apparatus claims invalid. 

IMECAS filed a complaint in February 2021 with the Beijing IP Court challenging the November 2020 CNIPA ruling. In December 2020, 

Intel filed a third invalidation request on the '457 patent with the CNIPA. The CNIPA held an oral hearing in June 2021 and in September 

2021 upheld the validity of the challenged claims. Intel filed a complaint in December 2021 with the Beijing IP Court challenging the 

September 2021 CNIPA ruling. In September 2018 and March 2019, Intel filed petitions with the US Patent and Trademark Office 

(USPTO) requesting institution of inter partes review (IPR) of US Patent No. 9,070,719, the US counterpart to the '457 patent. The 

USPTO denied institution of Intel's petitions in March and October 2019, respectively. In April 2019, Intel filed a request for rehearing and 

a petition for a Precedential Opinion Panel (POP) in the USPTO to challenge the denial of its first IPR petition, and in November 2019 

Intel filed a request for rehearing on the second IPR petition. In January 2020, the USPTO denied the POP petition on the first IPR 

petition. In June 2020, the Patent Trial and Appeal Board (PTAB) denied Intel's rehearing requests on both petitions.

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European Commission Competition Matter

In 2001, the EC commenced an investigation regarding claims by Advanced Micro Devices, Inc. (AMD) that we used unfair business 

practices to persuade customers to buy our microprocessors. We received numerous requests for information and documents from the 

EC and we responded to each of those requests. The EC issued a Statement of Objections in July 2007 and held a hearing on that 

Statement in March 2008. The EC issued a Supplemental Statement of Objections in July 2008. In May 2009, the EC issued a decision 

finding that we had violated Article 82 of the EC Treaty and Article 54 of the European Economic Area Agreement. In general, the EC 

found that we violated Article 82 (later renumbered as Article 102 by a new treaty) by offering alleged "conditional rebates and payments" 

that required our customers to purchase all or most of their x86 microprocessors from us. The EC also found that we violated Article 82 by 

making alleged "payments to prevent sales of specific rival products." The EC imposed a fine in the amount of €1.1 billion ($1.4 billion as 

of May 2009), which we subsequently paid during the third quarter of 2009, and ordered us to "immediately bring to an end the 

infringement referred to in" the EC decision.

The EC decision contained no specific direction on whether or how we should modify our business practices. Instead, the decision stated 

that we should "cease and desist" from further conduct that, in the EC's opinion, would violate applicable law. We took steps, which are 

subject to the EC's ongoing review, to comply with that decision pending appeal. We had discussions with the EC to better understand the 

decision and to explain changes to our business practices.

We appealed the EC decision to the Court of First Instance (which has been renamed the General Court) in July 2009. The hearing of our 

appeal took place in July 2012. In June 2014, the General Court rejected our appeal in its entirety. In August 2014, we filed an appeal with 

the European Court of Justice. In November 2014, Intervener Association for Competitive Technologies filed comments in support of 

Intel's grounds of appeal. The EC and interveners filed briefs in November 2014, we filed a reply in February 2015, and the EC filed a 

rejoinder in April 2015. The Court of Justice held oral argument in June 2016. In October 2016, Advocate General Wahl, an advisor to the 

Court of Justice, issued a non-binding advisory opinion that favored Intel on a number of grounds. The Court of Justice issued its decision 

in September 2017, setting aside the judgment of the General Court and sending the case back to the General Court to examine whether 

the rebates at issue were capable of restricting competition. The General Court appointed a panel of five judges to consider our appeal of 

the EC's 2009 decision in light of the Court of Justice's clarifications of the law. In November 2017, the parties filed initial "Observations" 

about the Court of Justice's decision and the appeal and were invited by the General Court to offer supplemental comments to each 

other's "Observations," which the parties submitted in March 2018. Responses to other questions posed by the General Court were filed 

in May and June 2018. The General Court heard oral argument in March 2020, and on January 26, 2022 issued a decision annulling the 

EC’s finding against Intel regarding rebates as well as the fine on Intel. Any appeal of the General Court’s decision must be brought before 

the Court of Justice by early April 2022.

Litigation Related to Security Vulnerabilities

In June 2017, a Google research team notified us and other companies that it had identified security vulnerabilities (now commonly 

referred to as "Spectre" and "Meltdown") that affect many types of microprocessors, including our products. As is standard when findings 

like these are presented, we worked together with other companies in the industry to verify the research and develop and validate 

software and firmware updates for impacted technologies. On January 3, 2018, information on the security vulnerabilities was publicly 

reported, before software and firmware updates to address the vulnerabilities were made widely available. 

Numerous lawsuits have been filed against Intel and, in certain cases, our current and former executives and directors, in US federal and 

state courts and in certain courts in other countries relating to the Spectre and Meltdown security vulnerabilities, as well as other variants 

of these vulnerabilities that have since been identified.

As of January 25, 2022, consumer class action lawsuits relating to the above class of security vulnerabilities publicly disclosed since 2018 

were pending in the United States, Canada, and Israel. The plaintiffs, who purport to represent various classes of purchasers of our 

products, generally claim to have been harmed by Intel's actions and/or omissions in connection with the security vulnerabilities and 

assert a variety of common law and statutory claims seeking monetary damages and equitable relief. In the United States, numerous 

individual class action suits filed in various jurisdictions were consolidated in April 2018 for all pretrial proceedings in the US District Court 

for the District of Oregon. In March 2020, the court granted Intel's motion to dismiss the complaint in that consolidated action but granted 

plaintiffs leave to amend. In March 2021, the court granted Intel's motion to dismiss the amended complaint but granted plaintiffs leave to 

further amend in part. Plaintiffs filed a further amended complaint in May 2021, which Intel moved to dismiss in July 2021. In Canada, in 

one case pending in the Superior Court of Justice of Ontario, an initial status conference has not yet been scheduled. In a second case 

pending in the Superior Court of Justice of Quebec, a stay of the case was in effect until December 2021, and the parties' joint request for 

a further stay to May 2022 is pending with the court. In Israel, two consumer class action lawsuits were filed in the District Court of Haifa. 

The plaintiff voluntarily dismissed the first lawsuit in July 2021. Intel filed a motion to stay the second case pending resolution of the 

consolidated proceeding in the US, and a hearing on that motion has been scheduled for April 2022. Additional lawsuits and claims may 

be asserted seeking monetary damages or other related relief. We dispute the pending claims described above and intend to defend 

those lawsuits vigorously. Given the procedural posture and the nature of those cases, including that the pending proceedings are in the 

early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or classes being certified 

or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be resolved, we are unable 

to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from those matters.

In addition to these lawsuits, Intel stockholders filed multiple shareholder derivative lawsuits since January 2018 against certain current 
and former members of our Board of Directors and certain current and former officers, alleging that the defendants breached their duties 
to Intel in connection with the disclosure of the security vulnerabilities and the failure to take action in relation to alleged insider trading. 
The complaints sought to recover damages from the defendants on behalf of Intel. Some of the derivative actions were filed in the US 
District Court for the Northern District of California and were consolidated, and the others were filed in the Superior Court of the State of 
California in San Mateo County and were consolidated. The federal court granted defendants' motion to dismiss in August 2018 on the 
ground that plaintiffs failed to plead facts sufficient to show they were excused from making a pre-lawsuit demand on the Board. The 
federal court granted plaintiffs leave to amend their complaint, but subsequently dismissed the cases in January 2019 at plaintiffs' request. 
The California Superior Court entered judgment in defendants' favor in August 2020 after granting defendants' motions to dismiss 
plaintiffs' consolidated complaint and three successive amended complaints, all for failure to plead facts sufficient to show plaintiffs were 
excused from making a pre-lawsuit demand on the Board. Plaintiffs filed a notice of appeal of the California court's judgment in October 
2020. In January 2021, another Intel stockholder filed a derivative lawsuit in the Superior Court in San Mateo County against certain 
current and former officers and members of our Board of Directors. The lawsuit asserts claims similar to those dismissed in August 2020, 
except that it alleges that the stockholder made a pre-lawsuit demand on our Board of Directors and that the demand was wrongfully 
refused. In May 2021, the court granted defendants' motion to stay the action pending the outcome of any litigation plaintiff may choose to 
file in Delaware where Intel's bylaws require such claims to be filed.

Litigation Related to 7nm Product Delay Announcement
Starting in July 2020, five securities class action lawsuits were filed in the United States District Court for the Northern District of California 
against Intel and certain current and former officers based on Intel’s July 2020 announcement of 7nm product delays. The plaintiffs, who 
purport to represent classes of acquirers of Intel stock between October 2019 and July 2020, generally allege that the defendants violated 
securities laws by making false or misleading statements about the timeline for 7nm products in light of subsequently announced delays. 
In October 2020, the court consolidated the lawsuits and appointed lead plaintiffs, and in January 2021 the lead plaintiffs filed a 
consolidated complaint. Defendants moved to dismiss the consolidated complaint in March 2021. We dispute the claims described above 
and intend to defend the lawsuits vigorously. Given the procedural posture and the nature of those cases, including that the pending 
proceedings are in the early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or 
classes being certified or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be  
resolved, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from those matters. 
In July 2021, Intel introduced a new process node naming structure, and the 7nm process is now Intel 4.

Litigation Related to Patent and IP Claims

We have had IP infringement lawsuits filed against us, including but not limited to those discussed below. Most involve claims that certain 
of our products, services, and technologies infringe others' IP rights. Adverse results in these lawsuits may include awards of substantial 
fines and penalties, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, 
or services. As a result, we may have to change our business practices, and develop non-infringing products or technologies, which could 
result in a loss of revenues for us and otherwise harm our business. In addition, certain agreements with our customers require us to 
indemnify them against certain IP infringement claims, which can increase our costs as a result of defending such claims, and may require 
that we pay significant damages, accept product returns, or supply our customers with non-infringing products if there were an adverse 
ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and technologies, as 
a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business.

Institute of Microelectronics, Chinese Academy of Sciences v. Intel China, Ltd., et al.
In February 2018, the Institute of Microelectronics of the Chinese Academy of Sciences (IMECAS) sued Intel China, Ltd., Dell China, Ltd. 
(Dell), and Beijing Jingdong Century Information Technology, Ltd. (JD) for patent infringement in the Beijing Higher People's Court. 
IMECAS alleges that Intel's Core series processors infringe Chinese patent CN 102956457 ('457 Patent). The complaint demands an 
injunction and damages of at least RMB 200 million plus the cost of litigation. Intel is indemnifying Dell and JD. The Beijing Higher 
People's Court held a final trial hearing in September 2021. No ruling has been issued. In March 2018, Intel filed an invalidation request 
on the '457 patent with the China National Intellectual Property Administration (CNIPA). The CNIPA held an oral hearing in September 
2018 and in February 2019 upheld the validity of the challenged claims. Intel filed a complaint in April 2019 with the Beijing Intellectual 
Property (IP) Court challenging the February 2019 CNIPA ruling. The Beijing IP Court held oral arguments in July and October 2021 and 
in November 2021 affirmed the CNIPA ruling. In December 2021, Intel filed an appeal with the Supreme People's Court challenging the 
Beijing IP Court's affirmance of the CNIPA ruling. In January 2020, Intel filed a second invalidation request on the '457 patent with the 
CNIPA, for which the CNIPA heard oral argument in July 2020 and in November 2020 held the challenged apparatus claims invalid. 
IMECAS filed a complaint in February 2021 with the Beijing IP Court challenging the November 2020 CNIPA ruling. In December 2020, 
Intel filed a third invalidation request on the '457 patent with the CNIPA. The CNIPA held an oral hearing in June 2021 and in September 
2021 upheld the validity of the challenged claims. Intel filed a complaint in December 2021 with the Beijing IP Court challenging the 
September 2021 CNIPA ruling. In September 2018 and March 2019, Intel filed petitions with the US Patent and Trademark Office 
(USPTO) requesting institution of inter partes review (IPR) of US Patent No. 9,070,719, the US counterpart to the '457 patent. The 
USPTO denied institution of Intel's petitions in March and October 2019, respectively. In April 2019, Intel filed a request for rehearing and 
a petition for a Precedential Opinion Panel (POP) in the USPTO to challenge the denial of its first IPR petition, and in November 2019 
Intel filed a request for rehearing on the second IPR petition. In January 2020, the USPTO denied the POP petition on the first IPR 
petition. In June 2020, the Patent Trial and Appeal Board (PTAB) denied Intel's rehearing requests on both petitions.

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In October 2019, IMECAS filed second and third lawsuits in the Beijing IP Court, alleging infringement of Chinese Patent No. CN 
102386226 ('226 Patent) based on the manufacturing and sale of Intel® Core i3 microprocessors. Defendants in the second case are 
Lenovo (Beijing) Co., Ltd. (Lenovo) and Beijing Jiayun Huitong Technology Development Co. Ltd. (BJHT). Defendants in the third case 
are Intel Corp., Intel China Co., Ltd., the Intel China Beijing Branch, Beijing Digital China Co., Ltd. (Digital China), and JD. The complaint 
in the second lawsuit demands an injunction plus litigation costs and reserves the right to claim damages in unspecified amounts. Intel is 
indemnifying Lenovo in the second lawsuit. The Beijing IP Court held a trial hearing in the second lawsuit in November 2021, but no ruling 
has been issued. The complaint in the third lawsuit demands an injunction plus litigation costs and claims damages of RMB 10 million. 
Intel China's jurisdictional challenge in the third lawsuit was denied in June 2021 by the Beijing IP Court and in November 2021 by the 
Supreme People's Court. A trial hearing in the third lawsuit was held in January 2022, but no ruling has been issued. In July 2020, Intel 
and Lenovo filed invalidation requests on the '226 patent with the CNIPA. The CNIPA heard oral arguments in December 2020, during 
which IMECAS proposed amendments to two claims. In April 2021, the CNIPA upheld the validity of the challenged and amended claims 
on both invalidation requests. Intel and Lenovo filed complaints in July 2021 with the Beijing IP Court challenging the April 2021 CNIPA 
rulings; the Beijing IP Court held oral arguments in October 2021.

Given the procedural posture and the nature of these cases, the unspecified nature and extent of damages claimed by IMECAS, and 
uncertainty regarding the availability of injunctive relief under applicable law, we are unable to make a reasonable estimate of the potential 
loss or range of losses, if any, arising from these matters. We dispute IMECAS's claims and intend to vigorously defend against them.

VLSI Technology LLC v. Intel 
In October 2017, VLSI filed a complaint against Intel in the US District Court for the Northern District of California alleging infringement of 
eight patents acquired from NXP Semiconductors, N.V. (NXP). The patents, which originated at Freescale Semiconductor, Inc. and NXP 
B.V., are US Patent Nos. 7,268,588; 7,675,806; 7,706,207; 7,709,303; 8,004,922; 8,020,014; 8,268,672; and 8,566,836. VLSI accuses 
various FPGA and processor products of infringement. VLSI estimated its damages to be at least $5.5 billion, and its complaint further 
sought enhanced damages, future royalties, attorneys' fees, costs, and interest. In May, June, September, and October 2018, Intel filed 
IPR petitions challenging the patentability of certain claims in all eight of the patents in-suit. The PTAB instituted review of six patents and 
denied institution on two patents. As a result of the institution decisions, the parties stipulated to stay the District Court action in March 
2019. In December 2019 and February 2020, the PTAB found all claims of the '588 and '303 patents, and some claims of the '922 patent, 
to be unpatentable. The PTAB found the challenged claims of the '014, '672 and '207 patents to be patentable. Intel appealed the PTAB’s 
decision as to ‘014, ‘672 and ‘207 patents. The Federal Circuit affirmed the PTAB’s decision as to the ‘672 and ‘207 patents, but reversed 
and remanded as to the ‘014 patent. Intel moved for a continuation of the stay in March 2020 pending the appeal. In June 2020, the 
District Court issued an order continuing the stay through August 2021. The court lifted the stay in September 2021 and scheduled a trial 
for March 2024. 

In June 2018, VLSI filed a second suit against Intel, in US District Court for the District of Delaware, alleging infringement by various Intel 
processors of five additional patents acquired from NXP: US Patent Nos. 6,212,663; 7,246,027; 7,247,552; 7,523,331; and 8,081,026. 
VLSI accused Intel of willful infringement and seeks an injunction or, in the alternative, ongoing royalties, enhanced damages, attorneys' 
fees and costs, and interest. In March 2019, the District Court dismissed VLSI's claims for willful infringement as to all the patents-in-suit 
except the '027 patent, and also dismissed VLSI's allegations of indirect infringement as to the '633, '331, and '026 patents. In June 2019, 
Intel filed IPR petitions challenging the patentability of certain claims in all five patents-in-suit. In January 2020, VLSI said that it was no 
longer asserting any claims of the '633 patent. In January and February 2020, the PTAB instituted review of the '552, '633, '331 and '026 
patents, but declined to institute review of the '027 patent. As a result, the District Court stayed the case as to the '026 and '552 patents 
but allowed the case to proceed on the '027 and '331 patents. In January 2021, the PTAB invalidated certain asserted claims of the '026 
patent, and in February the PTAB invalidated all asserted claims of the '552 patent. Both parties filed notices of appeal regarding the 
PTAB's decision as to the '026 patent in March 2021, and in April 2021, VLSI filed a notice of appeal of the PTAB's decision as to the '552 
patent. The case remains stayed as to both of those patents. For the '027 and '331 patents, VLSI is seeking damages of approximately 
$4.13 billion plus enhanced damages for the '027 patent. Intel is filing summary judgment motions and challenges to expert witnesses in 
accordance with the court's January 2022 deadline. 

In March 2019, VLSI filed a third suit against Intel, also in US District Court for the District of Delaware, alleging infringement of six more 
patents acquired from NXP: US Patent Nos. 6,366,522; 6,663,187; 7,292,485; 7,606,983; 7,725,759; and 7,793,025. In April 2019, VLSI 
voluntarily dismissed this Delaware case without prejudice. In April 2019, VLSI filed three new infringement suits against Intel in the US 
District Court for the Western District of Texas (WDTX) accusing various Intel processors of infringement. The three suits collectively 
assert the same six patents from the voluntarily dismissed Delaware case plus two additional patents acquired from NXP, US Patent Nos. 
7,523,373 and 8,156,357. VLSI accuses Intel of willful infringement and seeks an injunction or, in the alternative, ongoing royalties, 
enhanced damages, attorneys' fees and costs, and interest. In the first Texas case, VLSI asserted the '373 and '759 patents (in December 
2020, the court granted Intel summary judgment of non-infringement on the '357 patent, which had also been asserted in the first Texas 
case). That case went to trial in February 2021, and the jury awarded a “lump sum” to VLSI of $1.5 billion for literal infringement of the 
‘373 patent and $675 million for infringement under the doctrine of equivalents of the ‘759 patent. The jury found that Intel had not willfully 
infringed either patent. Intel has challenged the verdict with post-trial motions, including filing in May 2021 a motion for a new trial and a 
motion for judgment as a matter of law that the ‘373 and ‘759 patents are not infringed and the ‘759 patent is invalid. The court denied the 
motion for new trial in August 2021, but other post-trial motions, including the motion for judgment as a matter of law, remain pending. If 
the court does not vacate the verdict, Intel will challenge it on appeal. 

The second Texas case went to trial in April 2021, and the jury found that Intel does not infringe the ‘522 and ‘187 patents. VLSI had 
sought approximately $3.0 billion for alleged infringement of those patents, plus enhanced damages for willful infringement. The court has 
not yet entered a judgment following the first or second trials in Texas. 

January 2022.

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The third Texas case has been postponed and is not currently set for trial. In that case, VLSI seeks approximately $2.2 billion to $2.4 

billion for alleged infringement of the ‘983, ‘025 and ‘485 patents, plus enhanced damages for willful infringement. In October and 

November 2019 and in February 2020, Intel filed IPR petitions on certain asserted claims across six of the patents-in-suit in WDTX. 

Between May and October 2020, the PTAB denied all of these petitions on a discretionary basis and without reviewing the merits. Intel 

requested a rehearing, as well as review from the POP, as to all petitions. All requests for POP review and rehearing were denied. Intel 

filed notices of appeal regarding the discretionary denials for all petitions in February and March of 2021. The Federal Circuit dismissed 

the appeals in May 2021 for lack of jurisdiction. The Federal Circuit denied Intel's petition for hearing en banc in August 2021. In 

December 2021, Intel petitioned the Supreme Court to hear its appeal as to whether the Federal Circuit has jurisdiction to review the 

PTAB’s discretionary denials of Intel’s IPRs.

In May 2019, VLSI filed a case in Shenzhen Intermediate People’s Court against Intel, Intel (China) Co., Ltd., Intel Trading (Shanghai) 

Co., Ltd., and Intel Products (Chengdu) Co., Ltd. VLSI asserts Chinese Patent 201410094015.9, accusing certain Intel Core processors of 

infringement. VLSI requests an injunction as well as RMB 1 million in damages and RMB 300 thousand in expenses. Defendants filed an 

invalidation petition in October 2019 with the CNIPA, which held a hearing in September 2021. In May 2020, defendants filed a motion to 

stay the trial court proceedings pending a determination on invalidity. The court held the first evidentiary hearing in November 2020 and 

the second in July 2021. The court also held trial proceedings in the hearing in July 2021 and concluded that further trial proceedings 

were needed but indicated those would be stayed pending the outcome of defendants’ invalidity challenge at the CNIPA. In July 2021, 

VLSI dismissed its case, but refiled it in August 2021. In November 2021, Intel moved for a stay of the August 2021 action pending a ruling 

on invalidity. The court has not yet ruled on that motion.

In May 2019, VLSI filed a second case in Shanghai Intellectual Property Court against Intel (China) Co., Ltd., Intel Trading (Shanghai) 

Co., Ltd., and Intel Products (Chengdu) Co., Ltd. VLSI asserts Chinese Patent 201080024173.7. VLSI accuses certain Intel Core 

processors and seeks an injunction, as well as RMB 1 million in damages and RMB 300 thousand in expenses. Defendants filed with the 

CNIPA an invalidation petition in October 2019 and the CNIPA held a hearing in September 2021, but has not yet issued a decision. In 

June 2020, defendants filed a motion to stay the trial court proceedings pending a determination on invalidity. The court held its first 

evidentiary hearing in September 2020. The court held a second evidentiary hearing in December 2020, and a trial the same month. At 

trial, VLSI dropped its monetary damages claim, but still requested expenses (RMB 300 thousand) and an injunction. The court has not 

yet issued a decision following the trial. Rather, the court stayed the case in December 2020 pending a determination on invalidity by the 

CNIPA.

In November 2019, Intel, along with Apple Inc., filed a complaint against Fortress Investment Group LLC, Fortress Credit Co. LLC, Uniloc 

2017 LLC, Uniloc USA, Inc., Uniloc Luxembourg S.A.R.L., VLSI, INVT SPE LLC, Inventergy Global, Inc., DSS Technology Management, 

Inc., IXI IP, LLC, and Seven Networks, LLC. Plaintiffs allege violations of Section 1 of the Sherman Act by certain defendants, Section 7 of 

the Clayton Act by certain defendants, and California Business and Professions Code section 17200 by all defendants based on 

defendants' unlawful aggregation of patents. In 2020 and 2021, the court twice dismissed plaintiffs' complaint with leave to amend. In 

December 2020, the court granted a joint motion by Apple and Seven Networks to dismiss with prejudice Apple’s claims against Seven 

Networks. Plaintiffs filed a second amended complaint in March 2021. Defendants moved to dismiss the Second Amended Complaint in 

May 2021. Apple withdrew from the case and dismissed its claims in June 2021. The court heard defendants’ motion to dismiss the 

Second Amended Complaint in September 2021, and dismissed Intel’s claims with prejudice that same month, entering judgment in favor 

of defendants. Intel filed a notice of appeal in December 2021.

In June 2020, affiliates controlled by Fortress Investment Group, which also controls VLSI, acquired Finjan Holdings, Inc. Intel had signed 

a "Settlement, Release and Patent License Agreement" with Finjan in 2012, acquiring a license to the patents of Finjan and its affiliates, 

current or future, through a capture period of November 20, 2022. The agreement also contains covenants wherein Finjan agrees to 

cause its affiliates to comply with the agreement. As such, Intel maintains that it now has a license to the patents of VLSI, which has 

become a Finjan affiliate, and that Finjan must cause VLSI to dismiss its suits against Intel. In August 2020, Intel started dispute resolution 

proceedings under the agreement. As a part of this dispute resolution process, Intel and Finjan held a mediation in December 2020, but 

failed to resolve their differences. Intel filed suit to enforce its rights under the License Agreement with Finjan in January 2021 in Delaware 

Chancery Court. In March 2021, defendants filed motions to dismiss the Chancery Court proceedings. The court heard those motions in 

May 2021, and dismissed all of Intel’s claims—except the breach of contract claim—with prejudice in September 2021 for lack of 

jurisdiction because, the court reasoned, Intel’s license defense has been raised in the other US suits between Intel and VLSI and could 

be adjudicated in one of those actions. The court stayed Intel’s breach of contract claim pending a determination on whether Intel is 

licensed to VLSI’s patents. In September 2020, Intel filed motions to stay the Texas, Delaware, and Shanghai matters pending resolution 

of its dispute with Finjan. In November 2020, Intel filed a motion to stay the Shenzhen matter pending resolution of its dispute with Finjan. 

In November 2020, the Delaware court denied Intel's motion to stay. The other stay motions remain pending. Finally, Intel filed a motion to 

amend its answer in the Texas matters to add a license defense in November 2020, and filed a motion to amend its answer in the 

Delaware matter to add a license defense in February 2021. The Texas court has not yet ruled on Intel’s motion to amend, but the 

Delaware court granted Intel’s motion in July 2021. 

In June 2021, OpenSky Industries LLC (OpenSky) requested IPR of certain claims of the ‘373 and ‘759 patents, including the ones a jury 

said Intel infringes. Both petitions copied Intel’s earlier petitions, and used the expert declarations previously submitted by Intel. Another 

entity named Patent Quality Assurance LLC (PQA) also petitioned for IPR of certain claims of the ’373 patent, including ones a jury said 

Intel infringes. PQA also largely copied Intel’s petition, but added a challenge to an additional claim and included newly signed 

declarations from Intel’s experts. In December 2021, the PTAB instituted OpenSky’s petition on the ‘759 patent, but declined to institute on 

the ‘373 patent. In December 2021, Intel filed a motion to join OpenSky’s ‘759 IPR. A decision on PQA’s IPR petition is expected in 

 
 
In October 2019, IMECAS filed second and third lawsuits in the Beijing IP Court, alleging infringement of Chinese Patent No. CN 

102386226 ('226 Patent) based on the manufacturing and sale of Intel® Core i3 microprocessors. Defendants in the second case are 

Lenovo (Beijing) Co., Ltd. (Lenovo) and Beijing Jiayun Huitong Technology Development Co. Ltd. (BJHT). Defendants in the third case 

are Intel Corp., Intel China Co., Ltd., the Intel China Beijing Branch, Beijing Digital China Co., Ltd. (Digital China), and JD. The complaint 

in the second lawsuit demands an injunction plus litigation costs and reserves the right to claim damages in unspecified amounts. Intel is 

indemnifying Lenovo in the second lawsuit. The Beijing IP Court held a trial hearing in the second lawsuit in November 2021, but no ruling 

has been issued. The complaint in the third lawsuit demands an injunction plus litigation costs and claims damages of RMB 10 million. 

Intel China's jurisdictional challenge in the third lawsuit was denied in June 2021 by the Beijing IP Court and in November 2021 by the 

Supreme People's Court. A trial hearing in the third lawsuit was held in January 2022, but no ruling has been issued. In July 2020, Intel 

and Lenovo filed invalidation requests on the '226 patent with the CNIPA. The CNIPA heard oral arguments in December 2020, during 

which IMECAS proposed amendments to two claims. In April 2021, the CNIPA upheld the validity of the challenged and amended claims 

on both invalidation requests. Intel and Lenovo filed complaints in July 2021 with the Beijing IP Court challenging the April 2021 CNIPA 

rulings; the Beijing IP Court held oral arguments in October 2021.

Given the procedural posture and the nature of these cases, the unspecified nature and extent of damages claimed by IMECAS, and 

uncertainty regarding the availability of injunctive relief under applicable law, we are unable to make a reasonable estimate of the potential 

loss or range of losses, if any, arising from these matters. We dispute IMECAS's claims and intend to vigorously defend against them.

VLSI Technology LLC v. Intel 

In October 2017, VLSI filed a complaint against Intel in the US District Court for the Northern District of California alleging infringement of 

eight patents acquired from NXP Semiconductors, N.V. (NXP). The patents, which originated at Freescale Semiconductor, Inc. and NXP 

B.V., are US Patent Nos. 7,268,588; 7,675,806; 7,706,207; 7,709,303; 8,004,922; 8,020,014; 8,268,672; and 8,566,836. VLSI accuses 

various FPGA and processor products of infringement. VLSI estimated its damages to be at least $5.5 billion, and its complaint further 

sought enhanced damages, future royalties, attorneys' fees, costs, and interest. In May, June, September, and October 2018, Intel filed 

IPR petitions challenging the patentability of certain claims in all eight of the patents in-suit. The PTAB instituted review of six patents and 

denied institution on two patents. As a result of the institution decisions, the parties stipulated to stay the District Court action in March 

2019. In December 2019 and February 2020, the PTAB found all claims of the '588 and '303 patents, and some claims of the '922 patent, 

to be unpatentable. The PTAB found the challenged claims of the '014, '672 and '207 patents to be patentable. Intel appealed the PTAB’s 

decision as to ‘014, ‘672 and ‘207 patents. The Federal Circuit affirmed the PTAB’s decision as to the ‘672 and ‘207 patents, but reversed 

and remanded as to the ‘014 patent. Intel moved for a continuation of the stay in March 2020 pending the appeal. In June 2020, the 

District Court issued an order continuing the stay through August 2021. The court lifted the stay in September 2021 and scheduled a trial 

for March 2024. 

In June 2018, VLSI filed a second suit against Intel, in US District Court for the District of Delaware, alleging infringement by various Intel 

processors of five additional patents acquired from NXP: US Patent Nos. 6,212,663; 7,246,027; 7,247,552; 7,523,331; and 8,081,026. 

VLSI accused Intel of willful infringement and seeks an injunction or, in the alternative, ongoing royalties, enhanced damages, attorneys' 

fees and costs, and interest. In March 2019, the District Court dismissed VLSI's claims for willful infringement as to all the patents-in-suit 

except the '027 patent, and also dismissed VLSI's allegations of indirect infringement as to the '633, '331, and '026 patents. In June 2019, 

Intel filed IPR petitions challenging the patentability of certain claims in all five patents-in-suit. In January 2020, VLSI said that it was no 

longer asserting any claims of the '633 patent. In January and February 2020, the PTAB instituted review of the '552, '633, '331 and '026 

patents, but declined to institute review of the '027 patent. As a result, the District Court stayed the case as to the '026 and '552 patents 

but allowed the case to proceed on the '027 and '331 patents. In January 2021, the PTAB invalidated certain asserted claims of the '026 

patent, and in February the PTAB invalidated all asserted claims of the '552 patent. Both parties filed notices of appeal regarding the 

PTAB's decision as to the '026 patent in March 2021, and in April 2021, VLSI filed a notice of appeal of the PTAB's decision as to the '552 

patent. The case remains stayed as to both of those patents. For the '027 and '331 patents, VLSI is seeking damages of approximately 

$4.13 billion plus enhanced damages for the '027 patent. Intel is filing summary judgment motions and challenges to expert witnesses in 

accordance with the court's January 2022 deadline. 

In March 2019, VLSI filed a third suit against Intel, also in US District Court for the District of Delaware, alleging infringement of six more 

patents acquired from NXP: US Patent Nos. 6,366,522; 6,663,187; 7,292,485; 7,606,983; 7,725,759; and 7,793,025. In April 2019, VLSI 

voluntarily dismissed this Delaware case without prejudice. In April 2019, VLSI filed three new infringement suits against Intel in the US 

District Court for the Western District of Texas (WDTX) accusing various Intel processors of infringement. The three suits collectively 

assert the same six patents from the voluntarily dismissed Delaware case plus two additional patents acquired from NXP, US Patent Nos. 

7,523,373 and 8,156,357. VLSI accuses Intel of willful infringement and seeks an injunction or, in the alternative, ongoing royalties, 

enhanced damages, attorneys' fees and costs, and interest. In the first Texas case, VLSI asserted the '373 and '759 patents (in December 

2020, the court granted Intel summary judgment of non-infringement on the '357 patent, which had also been asserted in the first Texas 

case). That case went to trial in February 2021, and the jury awarded a “lump sum” to VLSI of $1.5 billion for literal infringement of the 

‘373 patent and $675 million for infringement under the doctrine of equivalents of the ‘759 patent. The jury found that Intel had not willfully 

infringed either patent. Intel has challenged the verdict with post-trial motions, including filing in May 2021 a motion for a new trial and a 

motion for judgment as a matter of law that the ‘373 and ‘759 patents are not infringed and the ‘759 patent is invalid. The court denied the 

motion for new trial in August 2021, but other post-trial motions, including the motion for judgment as a matter of law, remain pending. If 

the court does not vacate the verdict, Intel will challenge it on appeal. 

The second Texas case went to trial in April 2021, and the jury found that Intel does not infringe the ‘522 and ‘187 patents. VLSI had 

sought approximately $3.0 billion for alleged infringement of those patents, plus enhanced damages for willful infringement. The court has 

not yet entered a judgment following the first or second trials in Texas. 

The third Texas case has been postponed and is not currently set for trial. In that case, VLSI seeks approximately $2.2 billion to $2.4 
billion for alleged infringement of the ‘983, ‘025 and ‘485 patents, plus enhanced damages for willful infringement. In October and 
November 2019 and in February 2020, Intel filed IPR petitions on certain asserted claims across six of the patents-in-suit in WDTX. 
Between May and October 2020, the PTAB denied all of these petitions on a discretionary basis and without reviewing the merits. Intel 
requested a rehearing, as well as review from the POP, as to all petitions. All requests for POP review and rehearing were denied. Intel 
filed notices of appeal regarding the discretionary denials for all petitions in February and March of 2021. The Federal Circuit dismissed 
the appeals in May 2021 for lack of jurisdiction. The Federal Circuit denied Intel's petition for hearing en banc in August 2021. In 
December 2021, Intel petitioned the Supreme Court to hear its appeal as to whether the Federal Circuit has jurisdiction to review the 
PTAB’s discretionary denials of Intel’s IPRs.

In May 2019, VLSI filed a case in Shenzhen Intermediate People’s Court against Intel, Intel (China) Co., Ltd., Intel Trading (Shanghai) 
Co., Ltd., and Intel Products (Chengdu) Co., Ltd. VLSI asserts Chinese Patent 201410094015.9, accusing certain Intel Core processors of 
infringement. VLSI requests an injunction as well as RMB 1 million in damages and RMB 300 thousand in expenses. Defendants filed an 
invalidation petition in October 2019 with the CNIPA, which held a hearing in September 2021. In May 2020, defendants filed a motion to 
stay the trial court proceedings pending a determination on invalidity. The court held the first evidentiary hearing in November 2020 and 
the second in July 2021. The court also held trial proceedings in the hearing in July 2021 and concluded that further trial proceedings 
were needed but indicated those would be stayed pending the outcome of defendants’ invalidity challenge at the CNIPA. In July 2021, 
VLSI dismissed its case, but refiled it in August 2021. In November 2021, Intel moved for a stay of the August 2021 action pending a ruling 
on invalidity. The court has not yet ruled on that motion.

In May 2019, VLSI filed a second case in Shanghai Intellectual Property Court against Intel (China) Co., Ltd., Intel Trading (Shanghai) 
Co., Ltd., and Intel Products (Chengdu) Co., Ltd. VLSI asserts Chinese Patent 201080024173.7. VLSI accuses certain Intel Core 
processors and seeks an injunction, as well as RMB 1 million in damages and RMB 300 thousand in expenses. Defendants filed with the 
CNIPA an invalidation petition in October 2019 and the CNIPA held a hearing in September 2021, but has not yet issued a decision. In 
June 2020, defendants filed a motion to stay the trial court proceedings pending a determination on invalidity. The court held its first 
evidentiary hearing in September 2020. The court held a second evidentiary hearing in December 2020, and a trial the same month. At 
trial, VLSI dropped its monetary damages claim, but still requested expenses (RMB 300 thousand) and an injunction. The court has not 
yet issued a decision following the trial. Rather, the court stayed the case in December 2020 pending a determination on invalidity by the 
CNIPA.

In November 2019, Intel, along with Apple Inc., filed a complaint against Fortress Investment Group LLC, Fortress Credit Co. LLC, Uniloc 
2017 LLC, Uniloc USA, Inc., Uniloc Luxembourg S.A.R.L., VLSI, INVT SPE LLC, Inventergy Global, Inc., DSS Technology Management, 
Inc., IXI IP, LLC, and Seven Networks, LLC. Plaintiffs allege violations of Section 1 of the Sherman Act by certain defendants, Section 7 of 
the Clayton Act by certain defendants, and California Business and Professions Code section 17200 by all defendants based on 
defendants' unlawful aggregation of patents. In 2020 and 2021, the court twice dismissed plaintiffs' complaint with leave to amend. In 
December 2020, the court granted a joint motion by Apple and Seven Networks to dismiss with prejudice Apple’s claims against Seven 
Networks. Plaintiffs filed a second amended complaint in March 2021. Defendants moved to dismiss the Second Amended Complaint in 
May 2021. Apple withdrew from the case and dismissed its claims in June 2021. The court heard defendants’ motion to dismiss the 
Second Amended Complaint in September 2021, and dismissed Intel’s claims with prejudice that same month, entering judgment in favor 
of defendants. Intel filed a notice of appeal in December 2021.

In June 2020, affiliates controlled by Fortress Investment Group, which also controls VLSI, acquired Finjan Holdings, Inc. Intel had signed 
a "Settlement, Release and Patent License Agreement" with Finjan in 2012, acquiring a license to the patents of Finjan and its affiliates, 
current or future, through a capture period of November 20, 2022. The agreement also contains covenants wherein Finjan agrees to 
cause its affiliates to comply with the agreement. As such, Intel maintains that it now has a license to the patents of VLSI, which has 
become a Finjan affiliate, and that Finjan must cause VLSI to dismiss its suits against Intel. In August 2020, Intel started dispute resolution 
proceedings under the agreement. As a part of this dispute resolution process, Intel and Finjan held a mediation in December 2020, but 
failed to resolve their differences. Intel filed suit to enforce its rights under the License Agreement with Finjan in January 2021 in Delaware 
Chancery Court. In March 2021, defendants filed motions to dismiss the Chancery Court proceedings. The court heard those motions in 
May 2021, and dismissed all of Intel’s claims—except the breach of contract claim—with prejudice in September 2021 for lack of 
jurisdiction because, the court reasoned, Intel’s license defense has been raised in the other US suits between Intel and VLSI and could 
be adjudicated in one of those actions. The court stayed Intel’s breach of contract claim pending a determination on whether Intel is 
licensed to VLSI’s patents. In September 2020, Intel filed motions to stay the Texas, Delaware, and Shanghai matters pending resolution 
of its dispute with Finjan. In November 2020, Intel filed a motion to stay the Shenzhen matter pending resolution of its dispute with Finjan. 
In November 2020, the Delaware court denied Intel's motion to stay. The other stay motions remain pending. Finally, Intel filed a motion to 
amend its answer in the Texas matters to add a license defense in November 2020, and filed a motion to amend its answer in the 
Delaware matter to add a license defense in February 2021. The Texas court has not yet ruled on Intel’s motion to amend, but the 
Delaware court granted Intel’s motion in July 2021. 

In June 2021, OpenSky Industries LLC (OpenSky) requested IPR of certain claims of the ‘373 and ‘759 patents, including the ones a jury 
said Intel infringes. Both petitions copied Intel’s earlier petitions, and used the expert declarations previously submitted by Intel. Another 
entity named Patent Quality Assurance LLC (PQA) also petitioned for IPR of certain claims of the ’373 patent, including ones a jury said 
Intel infringes. PQA also largely copied Intel’s petition, but added a challenge to an additional claim and included newly signed 
declarations from Intel’s experts. In December 2021, the PTAB instituted OpenSky’s petition on the ‘759 patent, but declined to institute on 
the ‘373 patent. In December 2021, Intel filed a motion to join OpenSky’s ‘759 IPR. A decision on PQA’s IPR petition is expected in 
January 2022.

Financial Statements

Notes to Consolidated Financial Statements

110

Financial Statements

Notes to Consolidated Financial Statements

109

 
 
After consideration of the verdicts in the WDTX cases and the additional pending lawsuits filed by VLSI, Intel accrued a charge of $2.2 
billion in the first quarter of 2021. We dispute VLSI's claims and intend to vigorously defend against them.

Key Terms

We use terms throughout our document that are specific to Intel or that are abbreviations that may not be commonly known or used. 

Below is a list of these terms used in our document. 

Term

2006 Plan

2006 ESPP

2006 Equity Incentive Plan

2006 Employee Stock Purchase Plan

Definition

2009 Debentures

3.25% junior subordinated convertible debentures due 2039

The fifth-generation mobile network, which is expected to bring dramatic improvements in network speeds and 

latency, and which we view as a transformative technology and opportunity for many industries

Advanced driver-assistance systems

Adjacent products

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. Combined with our platform products, adjacent products form 

comprehensive platform solutions to meet customer needs

Artificial intelligence

Application-specific integrated circuit

Average selling price

Autonomous vehicle

Compound annual growth rate

Client Computing Group operating segment

to manage their environmental impacts

Chief operating decision maker

A nonprofit organization that runs a global disclosure system for investors, companies, cities, states, and regions 

The infectious disease caused by the most recently discovered coronavirus (aka SARS-CoV-2), which was 

declared a global pandemic by the World Health Organization

Processor or central processing unit

Compute Express Link; an open standard for high-speed CPU-to-device and CPU-to-memory connections

Data Center Group operating segment

European Commission

An Intel line of structured ASICs that are an intermediary technology between FPGAs and standard-cell ASICs

Edge computing or 

Placing resources to move, store, and process data closer to where data is generated and consumed

intelligent edge

EEO-1 Component 1 report; a mandatory annual data collection that requires employers meeting certain criteria to 

submit demographic workforce data, including data by race/ethnicity, sex and job categories. 

Embedded multi-die interconnect bridge, a form of "2.5D" packaging technology developed by Intel that enables 

Exchange Act

Securities Exchange Act of 1934

Annual Report on Form 10-K

Intel's high-performance, three-dimensional stacked chip packaging technology

Integrated device manufacturer, a semiconductor company that both designs and builds chips

Internet of Things

The Internet of Things market in which we sell our IOTG and Mobileye products

high-density interconnect of heterogeneous chips

Employee Retirement Income Security Act

European New Car Assessment Programme

Electric vehicle

Extreme ultraviolet lithography

Field-programmable gate array

Graphics processing unit

The EU-General Safety Regulation for motor vehicles

Intel Foundry Services

Institute of Microelectronics, Chinese Academy of Sciences

Internet of Things Market Ready Solutions

Internet of Things Group operating segment

Input/output

Intellectual property

Initial public offering

5G

ADAS

AI

ASIC

ASP

AV

CAGR

CCG

CDP

CPU

CXL

DCG

eASIC

EC

EEO-1

EMIB

CODM

COVID-19

ERISA

EUNCAP

EV

EUV

Form 10-K

Foveros

FPGA

GPU

GSR

IDM

IFS

IMECAS

IMRS

I/O

IOTG

IP

IPO

Financial Statements

Notes to Consolidated Financial Statements

110

Supplemental Details

113

 
After consideration of the verdicts in the WDTX cases and the additional pending lawsuits filed by VLSI, Intel accrued a charge of $2.2 

billion in the first quarter of 2021. We dispute VLSI's claims and intend to vigorously defend against them.

Key Terms

We use terms throughout our document that are specific to Intel or that are abbreviations that may not be commonly known or used. 
Below is a list of these terms used in our document. 

Term

2006 Plan
2006 ESPP
2009 Debentures
5G

ADAS
Adjacent products

Definition

2006 Equity Incentive Plan
2006 Employee Stock Purchase Plan
3.25% junior subordinated convertible debentures due 2039
The fifth-generation mobile network, which is expected to bring dramatic improvements in network speeds and 
latency, and which we view as a transformative technology and opportunity for many industries
Advanced driver-assistance systems
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. Combined with our platform products, adjacent products form 
comprehensive platform solutions to meet customer needs

AI
ASIC
ASP
AV
CAGR
CCG

CDP

CODM
COVID-19

CPU
CXL

DCG

eASIC

EC

Edge computing or 
intelligent edge
EEO-1

EMIB

ERISA
EUNCAP
EV
EUV
Exchange Act
Form 10-K
Foveros
FPGA
GPU
GSR
IDM
IFS
IMECAS
IMRS
Internet of Things
I/O
IOTG
IP
IPO

Artificial intelligence
Application-specific integrated circuit
Average selling price
Autonomous vehicle

Compound annual growth rate
Client Computing Group operating segment

A nonprofit organization that runs a global disclosure system for investors, companies, cities, states, and regions 
to manage their environmental impacts
Chief operating decision maker
The infectious disease caused by the most recently discovered coronavirus (aka SARS-CoV-2), which was 
declared a global pandemic by the World Health Organization
Processor or central processing unit
Compute Express Link; an open standard for high-speed CPU-to-device and CPU-to-memory connections

Data Center Group operating segment

An Intel line of structured ASICs that are an intermediary technology between FPGAs and standard-cell ASICs

European Commission

Placing resources to move, store, and process data closer to where data is generated and consumed

EEO-1 Component 1 report; a mandatory annual data collection that requires employers meeting certain criteria to 
submit demographic workforce data, including data by race/ethnicity, sex and job categories. 
Embedded multi-die interconnect bridge, a form of "2.5D" packaging technology developed by Intel that enables 
high-density interconnect of heterogeneous chips
Employee Retirement Income Security Act
European New Car Assessment Programme
Electric vehicle

Extreme ultraviolet lithography
Securities Exchange Act of 1934
Annual Report on Form 10-K
Intel's high-performance, three-dimensional stacked chip packaging technology
Field-programmable gate array
Graphics processing unit
The EU-General Safety Regulation for motor vehicles
Integrated device manufacturer, a semiconductor company that both designs and builds chips
Intel Foundry Services
Institute of Microelectronics, Chinese Academy of Sciences
Internet of Things Market Ready Solutions
The Internet of Things market in which we sell our IOTG and Mobileye products
Input/output
Internet of Things Group operating segment
Intellectual property
Initial public offering

Financial Statements

Notes to Consolidated Financial Statements

112

Supplemental Details

111

 
On July 26, 2021, we provided an update on our manufacturing process and packaging technology roadmaps. As part of this update, we 

introduced a new naming structure for our manufacturing process nodes, which includes the name changes summarized below:

Previous Process Node Name

10nm SuperFin

10nm Enhanced SuperFin

Intel 7nm

New Process Node Name

10nm SuperFin (unchanged)

Intel 7

Intel 4

IPU

L1

L2

L2+

L4

MaaS
MD&A
MG&A
NAND
NIC
nm
NSG
ODM
OEM
Platform products

PLD
Program (specific to 
Mobileye business)
PRQ

PSG
PSU
QLC
RAMP-C

R&D
RDFV
REM
RSU 
SDS
SEC
SoC

SSD
TAM
Tax Reform
TCFD
TLC
TSR
US GAAP
US Pension Plan
US Retiree Medical 
Plan
VPU
xPU

Infrastructure Processing Unit, a programmable networking device designed to enable cloud and communication 
service providers to reduce overhead and free up performance for CPUs 
Level 1 of autonomous driving; most functions are controlled by a human driver; certain functions (parking assist, 
acceleration, and limited steering) can be done automatically by the vehicle
Level 2 of autonomous driving; the system controls both steering and acceleration using information about the 
driving environment, but with the expectation that a human will perform all remaining aspects of driving; the driver 
can have his or her hands off the steering wheel, but must monitor the "dynamic driving task" at all times

Level 2+ of autonomous driving; the system controls both steering and acceleration using a multi-camera sensor 
suite and/or high-definition maps to enhance and solidify L2 capabilities
Level 4 of autonomous driving; the system performs all aspects of the driving task even if the driver does not 
respond appropriately to a request for intervention, including all safety-critical driving functions and monitoring 
roadway conditions for an entire trip. For a defined use case, no driver intervention is required at all.

Mobility-as-a-Service
Management's Discussion & Analysis
Marketing, general and administrative
NAND flash memory
Network interface controller
Nanometer
Non-Volatile Memory Solutions Group operating segment
Original design manufacturer
Original equipment manufacturer
A microprocessor (CPU) and chipset, a stand-alone SoC, or a multichip package, based on Intel architecture. 
Platform products are primarily used in solutions sold through the CCG, DCG, and IOTG segments
Programmable logic device
A process that takes two to three years of intense activity with the carmaker and Tier 1 after a design win until 
Mobileye technology is launched into production

Product release qualification, which is the milestone when costs to manufacture a product are included in 
inventory valuation
Programmable Solutions Group operating segment
Performance stock unit
Quad-level cell 
Rapid Assured Microelectronics Prototypes-Commercial, a program from the US Department of Defense to 
facilitate the use of a domestic commercial foundry infrastructure
Research and development
Readily determinable fair value
Road Experience Management
Restricted stock unit
Self-driving system
US Securities and Exchange Commission
A System-on-a-Chip, which integrates most of the components of a computer or other electronic system into a 
single silicon chip. We offer a range of SoC platform products in CCG, DCG, and IOTG
Solid-state drive
Total addressable market
US Tax Cuts and Jobs Act 
Task Force on Climate-Related Financial Disclosures
Triple-level cell
Total stockholder return
US Generally Accepted Accounting Principles
US Intel Minimum Pension Plan
US Postretirement Medical Benefits Plan

Vision processing unit
A term for processors that are designed for one of four major computing architectures: CPU, GPU, accelerators, 
and FPGA

Supplemental Details

112

Supplemental Details

115

On July 26, 2021, we provided an update on our manufacturing process and packaging technology roadmaps. As part of this update, we 
introduced a new naming structure for our manufacturing process nodes, which includes the name changes summarized below:

Previous Process Node Name
10nm SuperFin
10nm Enhanced SuperFin
Intel 7nm

New Process Node Name
10nm SuperFin (unchanged)
Intel 7
Intel 4

Infrastructure Processing Unit, a programmable networking device designed to enable cloud and communication 

service providers to reduce overhead and free up performance for CPUs 

Level 1 of autonomous driving; most functions are controlled by a human driver; certain functions (parking assist, 

acceleration, and limited steering) can be done automatically by the vehicle

Level 2 of autonomous driving; the system controls both steering and acceleration using information about the 

driving environment, but with the expectation that a human will perform all remaining aspects of driving; the driver 

can have his or her hands off the steering wheel, but must monitor the "dynamic driving task" at all times

Level 2+ of autonomous driving; the system controls both steering and acceleration using a multi-camera sensor 

suite and/or high-definition maps to enhance and solidify L2 capabilities

Level 4 of autonomous driving; the system performs all aspects of the driving task even if the driver does not 

respond appropriately to a request for intervention, including all safety-critical driving functions and monitoring 

roadway conditions for an entire trip. For a defined use case, no driver intervention is required at all.

Mobility-as-a-Service

Management's Discussion & Analysis

Marketing, general and administrative

NAND flash memory

Network interface controller

Nanometer

Original design manufacturer

Original equipment manufacturer

Programmable logic device

Non-Volatile Memory Solutions Group operating segment

Programmable Solutions Group operating segment

inventory valuation

Performance stock unit

Quad-level cell 

Research and development

Readily determinable fair value

Road Experience Management

Restricted stock unit

Self-driving system

US Securities and Exchange Commission

Platform products

A microprocessor (CPU) and chipset, a stand-alone SoC, or a multichip package, based on Intel architecture. 

Platform products are primarily used in solutions sold through the CCG, DCG, and IOTG segments

Program (specific to 

Mobileye business)

Mobileye technology is launched into production

A process that takes two to three years of intense activity with the carmaker and Tier 1 after a design win until 

Product release qualification, which is the milestone when costs to manufacture a product are included in 

RAMP-C

Rapid Assured Microelectronics Prototypes-Commercial, a program from the US Department of Defense to 

facilitate the use of a domestic commercial foundry infrastructure

A System-on-a-Chip, which integrates most of the components of a computer or other electronic system into a 

single silicon chip. We offer a range of SoC platform products in CCG, DCG, and IOTG

Solid-state drive

Total addressable market

Tax Reform

US Tax Cuts and Jobs Act 

Task Force on Climate-Related Financial Disclosures

Triple-level cell

Total stockholder return

US GAAP

US Generally Accepted Accounting Principles

US Pension Plan

US Intel Minimum Pension Plan

US Retiree Medical 

US Postretirement Medical Benefits Plan

IPU

L1

L2

L2+

L4

MaaS

MD&A

MG&A

NAND

NIC

nm

NSG

ODM

OEM

PLD

PRQ

PSG

PSU

QLC

R&D

RDFV

REM

RSU 

SDS

SEC

SoC

SSD

TAM

TCFD

TLC

TSR

Plan

VPU

xPU

Vision processing unit

and FPGA

A term for processors that are designed for one of four major computing architectures: CPU, GPU, accelerators, 

Supplemental Details

114

Supplemental Details

113

1. Financial Statements: See "Index to Consolidated Financial Statements" within the Consolidated Financial Statements.

2. Financial Statement Schedules; not applicable or the required information is otherwise included in the Consolidated Financial 

Statements and accompanying notes.

Form 10-K.

3. Exhibits: The exhibits listed in the accompanying index to exhibits are filed, furnished, or incorporated by reference as part of this 

Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that 

have been made solely for the benefit of the parties to the agreement. These representations and warranties:

▪ may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, 

which disclosures are not necessarily reflected in the agreements;

▪ may apply standards of materiality that differ from those of a reasonable investor; and

▪

were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed 

circumstances.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date that these representations 

and warranties were made or at any other time. Investors should not rely on them as statements of fact.

Controls and Procedures

Inherent Limitations on Effectiveness of Controls

Exhibits

Our management, including the principal executive officer and principal financial officer, does not expect that our disclosure controls and 
procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how 
well-designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The 
design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered 
relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute 
assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been 
detected.

Evaluation of Disclosure Controls and Procedures

Based on management's evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of 
the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls 
and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), are effective to provide reasonable assurance 
that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, 
summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to 
management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding 
required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange 
Act) that occurred during the quarter ended December 25, 2021 that have materially affected, or are reasonably likely to materially affect, 
our internal control over financial reporting.

Management Report on Internal Control Over Financial Reporting 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 
13a-15(f) and 15d-15(f) under the Exchange Act) to provide reasonable assurance regarding the reliability of our financial reporting and 
the preparation of Consolidated Financial Statements for external purposes in accordance with US GAAP.

Management assessed our internal control over financial reporting as of December 25, 2021. Management based its assessment on 
criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway 
Commission (2013 framework). Management's assessment included evaluation of elements such as the design and operating 
effectiveness of key financial reporting controls, process documentation, accounting policies, and our overall control environment.

Based on this assessment, management has concluded that our internal control over financial reporting was effective as of the end of the 
fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial 
Statements for external reporting purposes in accordance with US GAAP. We reviewed the results of management's assessment with the 
Audit Committee of our Board of Directors.

Our independent registered public accounting firm, Ernst & Young LLP, independently assessed the effectiveness of the company's 
internal control over financial reporting, as stated in the firm's attestation report, which is included within Financial Statements and 
Supplemental Details. 

Supplemental Details

114

Supplemental Details

117

Exhibits

1. Financial Statements: See "Index to Consolidated Financial Statements" within the Consolidated Financial Statements.

2. Financial Statement Schedules; not applicable or the required information is otherwise included in the Consolidated Financial 

Statements and accompanying notes.

3. Exhibits: The exhibits listed in the accompanying index to exhibits are filed, furnished, or incorporated by reference as part of this 

Form 10-K.

Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that 
have been made solely for the benefit of the parties to the agreement. These representations and warranties:

▪ may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, 

which disclosures are not necessarily reflected in the agreements;

▪ may apply standards of materiality that differ from those of a reasonable investor; and

▪

were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed 
circumstances.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date that these representations 
and warranties were made or at any other time. Investors should not rely on them as statements of fact.

Controls and Procedures

Inherent Limitations on Effectiveness of Controls

Our management, including the principal executive officer and principal financial officer, does not expect that our disclosure controls and 

procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how 

well-designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The 

design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered 

relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute 

assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been 

detected.

Evaluation of Disclosure Controls and Procedures

Based on management's evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of 

the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls 

and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), are effective to provide reasonable assurance 

that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, 

summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to 

management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding 

required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange 

Act) that occurred during the quarter ended December 25, 2021 that have materially affected, or are reasonably likely to materially affect, 

our internal control over financial reporting.

Management Report on Internal Control Over Financial Reporting 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 

13a-15(f) and 15d-15(f) under the Exchange Act) to provide reasonable assurance regarding the reliability of our financial reporting and 

the preparation of Consolidated Financial Statements for external purposes in accordance with US GAAP.

Management assessed our internal control over financial reporting as of December 25, 2021. Management based its assessment on 

criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway 

Commission (2013 framework). Management's assessment included evaluation of elements such as the design and operating 

effectiveness of key financial reporting controls, process documentation, accounting policies, and our overall control environment.

Based on this assessment, management has concluded that our internal control over financial reporting was effective as of the end of the 

fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial 

Statements for external reporting purposes in accordance with US GAAP. We reviewed the results of management's assessment with the 

Audit Committee of our Board of Directors.

Our independent registered public accounting firm, Ernst & Young LLP, independently assessed the effectiveness of the company's 

internal control over financial reporting, as stated in the firm's attestation report, which is included within Financial Statements and 

Supplemental Details. 

Supplemental Details

116

Supplemental Details

115

Exhibit Index

Exhibit
Number
2.1

3.1

3.2

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

Exhibit Description
Master Purchase Agreement between Intel 
Corporation and SK hynix Inc., dated as of October 
19, 2020

Intel Corporation Third Restated Certificate of 
Incorporation of Intel Corporation dated May 17, 
2006

Intel Corporation Bylaws, as amended and restated 
on March 10,2021

Indenture dated as of March 29, 2006 between Intel 
Corporation and Wells Fargo Bank, National 
Association (as successor to Citibank N.A.) (the 
"Open-Ended Indenture")
First Supplemental Indenture to Open-Ended 
Indenture, dated as of December 3, 2007

Second Supplemental Indenture to Open-Ended 
Indenture for the Registrant's 1.95% Senior Notes 
due 2016, 3.30% Senior Notes due 2021, and 
4.80% Senior Notes due 2041, dated as of 
September 19, 2011

Third Supplemental Indenture to Open-Ended 
Indenture for the Registrant's 1.35% Senior Notes 
due 2017, 2.70% Senior Notes due 2022, 4.00% 
Senior Notes due 2032, and 4.25% Senior Notes 
due 2042, dated as of December 11, 2012

Fourth Supplemental Indenture to Open-Ended 
Indenture for the Registrant's 4.25% Senior Notes 
due 2042, dated as of December 14, 2012

Fifth Supplemental Indenture to Open-Ended 
Indenture, dated as of July 29, 2015, between Intel 
Corporation and Wells Fargo Bank, National 
Association, as successor trustee

Eighth Supplemental Indenture to Open-Ended 
Indenture, dated as of May 19, 2016, between Intel 
Corporation and Wells Fargo Bank, National 
Association, as successor trustee
Ninth Supplemental Indenture to Open-Ended 
Indenture, dated as of May 11, 2017, between Intel 
Corporation and Wells Fargo Bank, National 
Association, as successor trustee
Tenth Supplemental Indenture to Open-Ended 
Indenture, dated as of June 16, 2017, between Intel 
Corporation and Wells Fargo Bank, National 
Association, as successor trustee
Eleventh Supplemental Indenture to Open-Ended 
Indenture, dated as of August 14, 2017, among Intel 
Corporation, Wells Fargo Bank, National 
Association, as successor trustee, and Elavon 
Financial Services DAC, UK Branch, as paying 
agent
Twelfth Supplemental Indenture to Open-Ended 
Indenture, dated as of December 8, 2017, between 
Intel Corporation and Wells Fargo Bank, National 
Association, as successor trustee

Incorporated by Reference

Form

File Number

8-K

000-06217  

Exhibit
2.1 

Filed or
Furnished
Herewith

Filing
Date
10/20/2020

Exhibit Description

Form

File Number

Exhibit

Incorporated by Reference

Filing

Date

Filed or

Furnished

Herewith

8-K

000-06217  

4.1 

11/21/2019

8-K

000-06217  

3.1 

5/22/2006

8-K

000-06217  

3.2 

3/16/2021

S-3ASR

333-132865  

4.4 

3/30/2006

10-K

000-06217

4.2.4

2/20/2008

8-K

000-06217  

4.01 

9/19/2011

8-K

000-06217  

4.01 

12/11/2012

8-K

000-06217  

4.01 

12/14/2012

8-K

000-06217  

4.1 

7/29/2015

8-K

000-06217  

4.1 

5/19/2016

8-K

000-06217  

4.1 

5/11/2017

8-K

000-06217  

4.1 

6/16/2017

10-Q

000-06217  

10.4 

4/26/2019

8-K

000-06217  

4.1 

8/14/2017

Intel Corporation Form of Restricted Stock Unit 

10-Q

000-06217  

10.5 

4/26/2019

10-K

000-06217

4.2.13

2/16/2018

10.1.6†

Intel Corporation Form of Restricted Stock Unit 

10-Q

000-06217

10.1

4/24/2020

4.14

Fifteenth Supplemental Indenture, dated as of 

8-K

000-06217  

4.2 

2/13/2020

8-K

000-06217

4.1

2/13/2020

8-K

000-06217  

4.1 

3/25/2020

8-K

000-06217  

4.1 

8/12/2021

4.17

Guarantee dated December 28, 2015 by Intel 

8-K

000-06217  

99.2 

12/28/2015

Exhibit

Number

4.12

Thirteenth Supplemental Indenture, dated as of 

November 21, 2019, between Intel Corporation and 

Wells Fargo Bank, National Association, as 

successor trustee

4.13

Fourteenth Supplemental Indenture, dated as of 

February 13, 2020, between Intel Corporation and 

Wells Fargo Bank, National Association, as 

successor trustee

4.15

4.16

February 13, 2020, between Intel Corporation and 

Wells Fargo Bank, National Association, as 

successor trustee

Sixteenth Supplemental Indenture, dated as of 

March 25, 2020, between Intel Corporation and 

Wells Fargo Bank, National Association, as 

successor trustee

Seventeenth Supplemental Indenture, dated as of 

August 12, 2021, between Intel Corporation and 

Wells Fargo Bank, National Association, as 

successor trustee

Corporation in favor of U.S. Bank, National 

Association, as Trustee for the holders of Altera's 

1.750% Senior Notes due 2017, 2.500% Senior 

Notes due 2018 and 4.100% Senior Notes due 

2023                                                           

Certain instruments defining the rights of holders of 

long-term debt of Intel Corporation are omitted 

pursuant to Item 601(b)(4)(iii) of Regulation S-K. 

Intel Corporation hereby agrees to furnish to the 

Securities and Exchange Commission, upon 

request, copies of such instruments.

10.1†

10.1.2†

10.1.3†

10.1.4†

10.1.5†

Restricted Stock Units

Intel Corporation Form of Restricted Stock Unit 

Grant Agreement under the 2006 Equity Incentive 

Plan (for RSUs with retirement vesting terms 

granted to executives on or after January 30, 2019)

Intel Corporation Form of Restricted Stock Unit 

Grant Agreement under the 2006 Equity Incentive 

Plan (for RSUs without retirement vesting terms 

granted to executives on or after January 30, 2019)

Grant Agreement under the 2006 Equity Incentive 

Plan (for performance-based RSUs granted to 

grandfathered executives on or after January 30, 

Grant Agreement under the 2006 Equity Incentive 

Plan (for performance-based RSUs granted to non-

grandfathered executives on or after January 30, 

2019)

2019)

4.18

Description of Intel Securities Registered under 

Section 12 of the Exchange Act

X

Intel Corporation 2006 Equity Incentive Plan, as 

10-Q

000-06217  

10.1 

7/26/2019

amended and restated, effective May 16, 2019

Intel Corporation Form of Notice of Grant - 

10-Q

000-06217  

10.1 

10/25/2018

10-Q

000-06217  

10.3 

4/26/2019

Supplemental Details

116

Supplemental Details

119

Exhibit Index

Exhibit

Number

Exhibit Description

Incorporated by Reference

Form

File Number

Exhibit

Filing

Date

Filed or

Furnished

Herewith

2.1

Master Purchase Agreement between Intel 

8-K

000-06217  

2.1 

10/20/2020

Corporation and SK hynix Inc., dated as of October 

3.1

Intel Corporation Third Restated Certificate of 

8-K

000-06217  

3.1 

5/22/2006

Incorporation of Intel Corporation dated May 17, 

3.2

Intel Corporation Bylaws, as amended and restated 

8-K

000-06217  

3.2 

3/16/2021

19, 2020

2006

on March 10,2021

4.1

Indenture dated as of March 29, 2006 between Intel 

S-3ASR

333-132865  

4.4 

3/30/2006

4.2

4.3

First Supplemental Indenture to Open-Ended 

10-K

000-06217

4.2.4

2/20/2008

Indenture, dated as of December 3, 2007

Second Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.01 

9/19/2011

Corporation and Wells Fargo Bank, National 

Association (as successor to Citibank N.A.) (the 

"Open-Ended Indenture")

Indenture for the Registrant's 1.95% Senior Notes 

due 2016, 3.30% Senior Notes due 2021, and 

4.80% Senior Notes due 2041, dated as of 

September 19, 2011

Indenture for the Registrant's 1.35% Senior Notes 

due 2017, 2.70% Senior Notes due 2022, 4.00% 

Senior Notes due 2032, and 4.25% Senior Notes 

due 2042, dated as of December 11, 2012

Indenture for the Registrant's 4.25% Senior Notes 

due 2042, dated as of December 14, 2012

Indenture, dated as of July 29, 2015, between Intel 

Corporation and Wells Fargo Bank, National 

Association, as successor trustee

Indenture, dated as of May 19, 2016, between Intel 

Corporation and Wells Fargo Bank, National 

Association, as successor trustee

Indenture, dated as of May 11, 2017, between Intel 

Corporation and Wells Fargo Bank, National 

Association, as successor trustee

Indenture, dated as of June 16, 2017, between Intel 

Corporation and Wells Fargo Bank, National 

Association, as successor trustee

Indenture, dated as of August 14, 2017, among Intel 

Corporation, Wells Fargo Bank, National 

Association, as successor trustee, and Elavon 

Financial Services DAC, UK Branch, as paying 

agent

Indenture, dated as of December 8, 2017, between 

Intel Corporation and Wells Fargo Bank, National 

Association, as successor trustee

4.4

Third Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.01 

12/11/2012

4.5

Fourth Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.01 

12/14/2012

4.6

Fifth Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.1 

7/29/2015

4.7

Eighth Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.1 

5/19/2016

4.8

Ninth Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.1 

5/11/2017

4.9

Tenth Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.1 

6/16/2017

4.10

Eleventh Supplemental Indenture to Open-Ended 

8-K

000-06217  

4.1 

8/14/2017

4.11

Twelfth Supplemental Indenture to Open-Ended 

10-K

000-06217

4.2.13

2/16/2018

Exhibit
Number
4.12

4.13

4.14

4.15

4.16

4.17

4.18

10.1†

10.1.2†

10.1.3†

10.1.4†

10.1.5†

10.1.6†

Exhibit Description
Thirteenth Supplemental Indenture, dated as of 
November 21, 2019, between Intel Corporation and 
Wells Fargo Bank, National Association, as 
successor trustee
Fourteenth Supplemental Indenture, dated as of 
February 13, 2020, between Intel Corporation and 
Wells Fargo Bank, National Association, as 
successor trustee

Fifteenth Supplemental Indenture, dated as of 
February 13, 2020, between Intel Corporation and 
Wells Fargo Bank, National Association, as 
successor trustee
Sixteenth Supplemental Indenture, dated as of 
March 25, 2020, between Intel Corporation and 
Wells Fargo Bank, National Association, as 
successor trustee

Seventeenth Supplemental Indenture, dated as of 
August 12, 2021, between Intel Corporation and 
Wells Fargo Bank, National Association, as 
successor trustee

Guarantee dated December 28, 2015 by Intel 
Corporation in favor of U.S. Bank, National 
Association, as Trustee for the holders of Altera's 
1.750% Senior Notes due 2017, 2.500% Senior 
Notes due 2018 and 4.100% Senior Notes due 
2023                                                           
Certain instruments defining the rights of holders of 
long-term debt of Intel Corporation are omitted 
pursuant to Item 601(b)(4)(iii) of Regulation S-K. 
Intel Corporation hereby agrees to furnish to the 
Securities and Exchange Commission, upon 
request, copies of such instruments.

Description of Intel Securities Registered under 
Section 12 of the Exchange Act
Intel Corporation 2006 Equity Incentive Plan, as 
amended and restated, effective May 16, 2019
Intel Corporation Form of Notice of Grant - 
Restricted Stock Units

Intel Corporation Form of Restricted Stock Unit 
Grant Agreement under the 2006 Equity Incentive 
Plan (for RSUs with retirement vesting terms 
granted to executives on or after January 30, 2019)
Intel Corporation Form of Restricted Stock Unit 
Grant Agreement under the 2006 Equity Incentive 
Plan (for RSUs without retirement vesting terms 
granted to executives on or after January 30, 2019)

Intel Corporation Form of Restricted Stock Unit 
Grant Agreement under the 2006 Equity Incentive 
Plan (for performance-based RSUs granted to 
grandfathered executives on or after January 30, 
2019)

Intel Corporation Form of Restricted Stock Unit 
Grant Agreement under the 2006 Equity Incentive 
Plan (for performance-based RSUs granted to non-
grandfathered executives on or after January 30, 
2019)

Incorporated by Reference

Form

File Number

8-K

000-06217  

Exhibit
4.1 

Filed or
Furnished
Herewith

Filing
Date
11/21/2019

8-K

000-06217

4.1

2/13/2020

8-K

000-06217  

4.2 

2/13/2020

8-K

000-06217  

4.1 

3/25/2020

8-K

000-06217  

4.1 

8/12/2021

8-K

000-06217  

99.2 

12/28/2015

X

10-Q

000-06217  

10.1 

7/26/2019

10-Q

000-06217  

10.1 

10/25/2018

10-Q

000-06217  

10.3 

4/26/2019

10-Q

000-06217  

10.4 

4/26/2019

10-Q

000-06217  

10.5 

4/26/2019

10-Q

000-06217

10.1

4/24/2020

Supplemental Details

118

Supplemental Details

117

Exhibit
Number
10.1.7†

10.1.8†

10.1.9†

10.1.10†

10.1.11†
10.1.12†

10.1.13†

10.1.14†

10.1.15†

10.1.16†

10.1.17†

10.2†

10.3†

10.4†

10.5†

10.6†

10.7†

10.8

Exhibit Description
Intel Corporation Form of Restricted Stock Unit 
Grant Agreement under the 2006 Equity Incentive 
Plan (for strategic growth performance-based RSUs 
granted to executives on or after February 1, 2019)

Intel Corporation Restricted Stock Unit Grant 
Agreement under the 2006 Equity Incentive Plan 
(for performance-based RSUs granted to Robert 
Swan for interim CEO service on January 30, 2019)
Intel Corporation Form of Stock Option Grant 
Agreement under the 2006 Equity Incentive Plan 
(for strategic growth performance-based stock 
options granted to executives on or after February 
1, 2019)

Intel Corporation Form of Non-Employee Director 
Restricted Stock Unit Grant Agreement under the 
2006 Equity Incentive Plan (for RSUs granted to 
non-employee directors on or after January 30, 
2019)
Intel Corporation 2021 Inducement Plan

Intel Corporation Restricted Stock Unit Agreement 
under the 2021 Inducement Plan (for time-vesting 
RSUs)

Intel Corporation Restricted Stock Unit Agreement 
under the 2021 Inducement Plan (for optional 
investment matching RSUs)

Intel Corporation Restricted Stock Unit Agreement 
under the 2021 Inducement Plan (for relative TSR 
performance-based RSUs)
Intel Corporation Restricted Stock Unit Agreement 
under the 2021 Inducement Plan (for strategic 
growth performance-based RSUs)

Intel Corporation Restricted Stock Unit Agreement 
under the 2021 Inducement Plan (for 
outperformance performance-based RSUs)

Intel Corporation Option Agreement under the 2021 
Inducement Plan (for strategic growth performance-
based stock options)

Intel Corporation Executive Annual Performance 
Bonus Plan, effective as of January 1, 2020

Intel Corporation Sheltered Employee Retirement 
Plan Plus, as amended and restated, effective 
January 1, 2020
Intel Corporation 2006 Employee Stock Purchase 
Plan, as amended and restated, effective May 14, 
2020

Intel Corporation 2006 Deferral Plan for Outside 
Directors, effective November 15, 2006
Form of Indemnification Agreement with Directors 
and Executive Officers
Form of Indemnification Agreement with Directors 
and Executive Officers (for Directors and Executive 
Officers who joined Intel after July 1, 2016)

Settlement Agreement Between Advanced Micro 
Devices, Inc. and Intel Corporation, dated 
November 11, 2009

Offer Letter between Intel Corporation and Sandra 

10-Q

000-06217  

10.1 

7/23/2021

Gelsinger, dated January 13, 2021

8-K

000-06217  

10.1 

1/14/2021

10-Q

000-06217   10.12 

4/26/2019

8-K

000-06217

10.1

4/3/2019

Exhibit

Number

10.9††

10.10†

10.11†

10.12†

10.13†

21.1

23.1

Corporation and Intel Corporation, dated January 

10, 2011

Rivera, dated June 21, 2021

Offer Letter between Intel Corporation and Patrick 

Lease Agreement between Intel Corporation and 

Steven R. Rodgers††

Offer Letter between Intel Corporation and George 

S. Davis, dated April 2, 2019

Intel Corporation Subsidiaries

Consent of Ernst & Young LLP, Independent 

Registered Public Accounting Firm

31.1

Certification of the Chief Executive Officer pursuant 

to Rule 13a-14(a) of the Exchange Act

31.2

Certification of the Chief Financial Officer pursuant 

to Rule 13a-14(a) of the Exchange Act

32.1

Certification of the Chief Executive Officer and the 

Chief Financial Officer pursuant to Rule13a-14(b) of 

the Exchange Act and 18 U.S.C. Section 1350

99.1

Supplement to Present Required Information in 

Searchable Format

101

Inline XBRL Document Set for the consolidated 

financial statements and accompanying notes in 

Financial Statements and Supplemental Details

104

Cover Page Interactive Data File - formatted in 

Inline XBRL and included as Exhibit 101

†  Management contracts or compensation plans or arrangements in which directors or executive officers are eligible to participate.

†† Portions of this exhibit have been omitted pursuant to an order granting confidential treatment.

X

X

X

X

X

X

X

X

Incorporated by Reference

Form

File Number

10-Q

000-06217  

Exhibit
10.6 

Filed or
Furnished
Herewith

Filing
Date
4/26/2019

Exhibit Description

Form

File Number

Exhibit

Patent Cross License Agreement between NVIDIA 

8-K

000-06217  

10.1 

1/10/2011

Incorporated by Reference

Filing

Date

Filed or

Furnished

Herewith

10-Q

000-06217  

10.9 

4/26/2019

10-Q

000-06217  

10.7 

4/26/2019

10-Q

000-06217   10.11 

4/26/2019

S-8

10-Q

333-253077  

000-06217  

99.1 

10.3 

2/12/2021

4/23/2021

10-Q

000-06217  

10.4 

4/23/2021

10-Q

000-06217  

10.5 

4/23/2021

10-Q

000-06217  

10.6 

4/23/2021

10-Q

000-06217  

10.7 

4/23/2021

10-Q

000-06217  

10.8 

4/23/2021

8-K

000-06217  

10.1 

1/22/2020

10-Q

000-06217

10.3

4/24/2020

10-Q

000-06217  

10.1 

7/24/2020

10-K

000-06217   10.41 

2/26/2007

10-K

000-06217   10.15 

2/22/2005

10-Q

000-06217  

10.2 

10/31/2016

8-K

000-06217  

10.1 

11/12/2009

Supplemental Details

118

Supplemental Details

121

Exhibit
Number
10.9††

10.10†

10.11†

10.12†

10.13†

21.1

23.1

31.1

31.2

32.1

99.1

101

104

Exhibit Description
Patent Cross License Agreement between NVIDIA 
Corporation and Intel Corporation, dated January 
10, 2011

Offer Letter between Intel Corporation and Sandra 
Rivera, dated June 21, 2021

Offer Letter between Intel Corporation and Patrick 
Gelsinger, dated January 13, 2021

Lease Agreement between Intel Corporation and 
Steven R. Rodgers††
Offer Letter between Intel Corporation and George 
S. Davis, dated April 2, 2019
Intel Corporation Subsidiaries

Consent of Ernst & Young LLP, Independent 
Registered Public Accounting Firm
Certification of the Chief Executive Officer pursuant 
to Rule 13a-14(a) of the Exchange Act
Certification of the Chief Financial Officer pursuant 
to Rule 13a-14(a) of the Exchange Act
Certification of the Chief Executive Officer and the 
Chief Financial Officer pursuant to Rule13a-14(b) of 
the Exchange Act and 18 U.S.C. Section 1350

Supplement to Present Required Information in 
Searchable Format

Inline XBRL Document Set for the consolidated 
financial statements and accompanying notes in 
Financial Statements and Supplemental Details

Cover Page Interactive Data File - formatted in 
Inline XBRL and included as Exhibit 101

Incorporated by Reference

Form

File Number

8-K

000-06217  

Exhibit
10.1 

Filed or
Furnished
Herewith

Filing
Date
1/10/2011

10-Q

000-06217  

10.1 

7/23/2021

8-K

000-06217  

10.1 

1/14/2021

10-Q

000-06217   10.12 

4/26/2019

8-K

000-06217

10.1

4/3/2019

X

X

X

X

X

X

X

X

†  Management contracts or compensation plans or arrangements in which directors or executive officers are eligible to participate.
†† Portions of this exhibit have been omitted pursuant to an order granting confidential treatment.

Exhibit Description

Form

File Number

Exhibit

Intel Corporation Form of Restricted Stock Unit 

10-Q

000-06217  

10.6 

4/26/2019

Incorporated by Reference

Filing

Date

Filed or

Furnished

Herewith

Exhibit

Number

10.1.7†

10.1.8†

10.1.11†

10.1.12†

10.1.13†

10.1.14†

10.1.15†

10.1.16†

10.1.17†

10.2†

10.3†

10.4†

10.5†

10.6†

10.7†

10.1.10†

Intel Corporation Form of Non-Employee Director 

10-Q

000-06217   10.11 

4/26/2019

10.1.9†

Intel Corporation Form of Stock Option Grant 

10-Q

000-06217  

10.7 

4/26/2019

10-Q

000-06217  

10.9 

4/26/2019

S-8

10-Q

333-253077  

000-06217  

99.1 

10.3 

2/12/2021

4/23/2021

Grant Agreement under the 2006 Equity Incentive 

Plan (for strategic growth performance-based RSUs 

granted to executives on or after February 1, 2019)

Intel Corporation Restricted Stock Unit Grant 

Agreement under the 2006 Equity Incentive Plan 

(for performance-based RSUs granted to Robert 

Swan for interim CEO service on January 30, 2019)

Agreement under the 2006 Equity Incentive Plan 

(for strategic growth performance-based stock 

options granted to executives on or after February 

1, 2019)

Restricted Stock Unit Grant Agreement under the 

2006 Equity Incentive Plan (for RSUs granted to 

non-employee directors on or after January 30, 

Intel Corporation 2021 Inducement Plan

Intel Corporation Restricted Stock Unit Agreement 

under the 2021 Inducement Plan (for time-vesting 

2019)

RSUs)

under the 2021 Inducement Plan (for optional 

investment matching RSUs)

under the 2021 Inducement Plan (for relative TSR 

performance-based RSUs)

under the 2021 Inducement Plan (for strategic 

growth performance-based RSUs)

under the 2021 Inducement Plan (for 

outperformance performance-based RSUs)

Inducement Plan (for strategic growth performance-

based stock options)

Plan Plus, as amended and restated, effective 

January 1, 2020

Plan, as amended and restated, effective May 14, 

2020

Directors, effective November 15, 2006

and Executive Officers

and Executive Officers (for Directors and Executive 

Officers who joined Intel after July 1, 2016)

Devices, Inc. and Intel Corporation, dated 

November 11, 2009

Intel Corporation Restricted Stock Unit Agreement 

10-Q

000-06217  

10.4 

4/23/2021

Intel Corporation Restricted Stock Unit Agreement 

10-Q

000-06217  

10.5 

4/23/2021

Intel Corporation Restricted Stock Unit Agreement 

10-Q

000-06217  

10.6 

4/23/2021

Intel Corporation Restricted Stock Unit Agreement 

10-Q

000-06217  

10.7 

4/23/2021

Intel Corporation Option Agreement under the 2021 

10-Q

000-06217  

10.8 

4/23/2021

Intel Corporation Executive Annual Performance 

8-K

000-06217  

10.1 

1/22/2020

Bonus Plan, effective as of January 1, 2020

Intel Corporation Sheltered Employee Retirement 

10-Q

000-06217

10.3

4/24/2020

Intel Corporation 2006 Employee Stock Purchase 

10-Q

000-06217  

10.1 

7/24/2020

Intel Corporation 2006 Deferral Plan for Outside 

10-K

000-06217   10.41 

2/26/2007

Form of Indemnification Agreement with Directors 

10-K

000-06217   10.15 

2/22/2005

Form of Indemnification Agreement with Directors 

10-Q

000-06217  

10.2 

10/31/2016

10.8

Settlement Agreement Between Advanced Micro 

8-K

000-06217  

10.1 

11/12/2009

Supplemental Details

120

Supplemental Details

119

Form 10-K Cross-Reference Index

Signatures

Item Number
Part I
Item 1.

Item

Business:

General development of business
Description of business
Available information

Risk Factors
Unresolved Staff Comments
Properties
Legal Proceedings
Mine Safety Disclosures

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer 
Purchases of Equity Securities
[Reserved]
Management's Discussion and Analysis of Financial Condition and Results of 
Operations:

Results of operations
Liquidity and capital resources
Critical accounting estimates and policies

Quantitative and Qualitative Disclosures About Market Risk
Financial Statements and Supplementary Data 
Changes in and Disagreements with Accountants on Accounting and Financial 
Disclosure
Controls and Procedures
Other Information

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.

Part II

Item 5.

Item 6.

Item 7.

Item 7A.
Item 8.

Item 9.

Item 9A.
Item 9B.

Item 9C.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Part III
Item 10.
Item 11.

Item 12.

Item 13.
Item 14.

Part IV
Item 15.
Item 16.

Signatures

Directors, Executive Officers, and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related 
Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accounting Fees and Services

Exhibits and Financial Statement Schedules
Form 10-K Summary

 Pages 2-7, 19
Pages 2-36, 48-49, 66, 82-85
Page 66
Pages 50-63
Not applicable
Pages 12, 64
Pages 105-110
Not applicable

Pages 9, 64-65

Pages 4-5, 18-42, 45-47
Pages 4-5, 42-44, 45-47
Pages 44, 77-82
Page 49
Pages 68-113

Not applicable

Page 114

Page 67
Not applicable

Page 66, (a)
(b)

(c)

(d)
(e)

Pages 115-119
Not applicable

Page 121

(a) 

(b) 

(c) 

Incorporated by reference to "Proposal 1: Election of Directors," "Corporate Governance," "Code of Conduct," and "Other Matters-Delinquent 
Section 16(a) Reports" in the 2022 Proxy Statement. The information under the heading "Information about Our Executive Officers" within Other 
Key Information is also incorporated by reference in this section. 

Incorporated by reference to "Director Compensation," "Compensation Discussion and Analysis," "Report of the Compensation Committee," and 
"Executive Compensation" in the 2022 Proxy Statement.

Incorporated by reference to "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in 
the 2022 Proxy Statement.

(d) 

Incorporated by reference to "Corporate Governance" and "Certain Relationships and Related Transactions" in the 2022 Proxy Statement.

(e) 

Incorporated by reference to "Report of the Audit Committee" and "Proposal 2: Ratification of Selection of Independent Registered Public 
Accounting Firm" in the 2022 Proxy Statement.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to 

be signed on its behalf by the undersigned, thereunto duly authorized. 

INTEL CORPORATION

Registrant

By:

/s/    PATRICK P. GELSINGER

Patrick P. Gelsinger

Chief Executive Officer, Director, and Principal Executive Officer

January 26, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on 

behalf of the Registrant and in the capacities and on the dates indicated.

Chief Executive Officer, Director, and Principal Executive Officer

Executive Vice President, Chief Financial Officer, Principal

/s/    DAVID ZINSNER

David Zinsner

Financial Officer, and Principal Accounting Officer

January 26, 2022

/s/    DR. ANDREA J. GOLDSMITH

/s/    GREGORY D. SMITH

/s/    DR. TSU-JAE KING LIU

Dr. Tsu-Jae King Liu

Director

January 26, 2022

Gregory D. Smith

Director

January 26, 2022

/s/    DION J. WEISLER

Dion J. Weisler

Director

January 26, 2022

/s/    FRANK D. YEARY

Frank D. Yeary

Director

January 26, 2022

/s/    PATRICK P. GELSINGER

Patrick P. Gelsinger

January 26, 2022

/s/    JAMES J. GOETZ

James J. Goetz

Director

January 26, 2022

Andrea J. Goldsmith

Director

January 26, 2022

/s/    ALYSSA HENRY       

Alyssa Henry

Director

January 26, 2022

/s/    DR. OMAR ISHRAK

Dr. Omar Ishrak

Chairman of the Board and Director

January 26, 2022

/s/    DR. RISA LAVIZZO-MOUREY

Dr. Risa Lavizzo-Mourey

Director

January 26, 2022

Supplemental Details

120

Supplemental Details

123

 
Form 10-K Cross-Reference Index

Signatures

Item Number

Item

Part I

Item 1.

Business:

General development of business

Description of business

Available information

Risk Factors

Unresolved Staff Comments

Properties

Legal Proceedings

Mine Safety Disclosures

Item 1A.

Item 1B.

Item 2.

Item 3.

Item 4.

Part II

Item 5.

Item 6.

Item 7.

Item 7A.

Item 8.

Item 9.

Item 9A.

Item 9B.

Part III

Item 10.

Item 11.

Item 12.

Item 13.

Item 14.

Part IV

Item 15.

Item 16.

Signatures

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer 

Purchases of Equity Securities

Management's Discussion and Analysis of Financial Condition and Results of 

[Reserved]

Operations:

Results of operations

Liquidity and capital resources

Critical accounting estimates and policies

Quantitative and Qualitative Disclosures About Market Risk

Financial Statements and Supplementary Data 

Changes in and Disagreements with Accountants on Accounting and Financial 

Disclosure

Controls and Procedures

Other Information

Item 9C.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Directors, Executive Officers, and Corporate Governance

Executive Compensation

Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related 

Certain Relationships and Related Transactions, and Director Independence

Principal Accounting Fees and Services

Exhibits and Financial Statement Schedules

Form 10-K Summary

 Pages 2-7, 20

Pages 2-38, 50-51, 68, 84-87

Pages 4-5, 19-44, 47-49

Pages 4-5, 44-46, 47-49

Page 68

Pages 52-65

Not applicable

Pages 12, 66

Pages 107-112

Not applicable

Pages 9, 66-67

Pages 46, 79-84

Page 51

Pages 70-115

Not applicable

Page 116

Page 69

Not applicable

Page 68, (a)

(b)

(c)

(d)

(e)

Pages 117-121

Not applicable

Page 123

(a) 

Incorporated by reference to "Proposal 1: Election of Directors," "Corporate Governance," "Code of Conduct," and "Other Matters-Delinquent 

Section 16(a) Reports" in the 2022 Proxy Statement. The information under the heading "Information about Our Executive Officers" within Other 

Key Information is also incorporated by reference in this section. 

(b) 

Incorporated by reference to "Director Compensation," "Compensation Discussion and Analysis," "Report of the Compensation Committee," and 

"Executive Compensation" in the 2022 Proxy Statement.

(c) 

Incorporated by reference to "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in 

the 2022 Proxy Statement.

(d) 

Incorporated by reference to "Corporate Governance" and "Certain Relationships and Related Transactions" in the 2022 Proxy Statement.

(e) 

Incorporated by reference to "Report of the Audit Committee" and "Proposal 2: Ratification of Selection of Independent Registered Public 

Accounting Firm" in the 2022 Proxy Statement.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to 
be signed on its behalf by the undersigned, thereunto duly authorized. 

INTEL CORPORATION
Registrant

By:

/s/    PATRICK P. GELSINGER
Patrick P. Gelsinger

Chief Executive Officer, Director, and Principal Executive Officer
January 26, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on 
behalf of the Registrant and in the capacities and on the dates indicated.

/s/    PATRICK P. GELSINGER
Patrick P. Gelsinger

/s/    DAVID ZINSNER
David Zinsner

Chief Executive Officer, Director, and Principal Executive Officer
January 26, 2022

Executive Vice President, Chief Financial Officer, Principal
Financial Officer, and Principal Accounting Officer
January 26, 2022

/s/    JAMES J. GOETZ
James J. Goetz
Director

January 26, 2022

/s/    DR. TSU-JAE KING LIU

Dr. Tsu-Jae King Liu
Director
January 26, 2022

/s/    DR. ANDREA J. GOLDSMITH

/s/    GREGORY D. SMITH

Andrea J. Goldsmith

Director

January 26, 2022

/s/    ALYSSA HENRY       
Alyssa Henry
Director

January 26, 2022

/s/    DR. OMAR ISHRAK

Dr. Omar Ishrak
Chairman of the Board and Director

January 26, 2022

/s/    DR. RISA LAVIZZO-MOUREY

Dr. Risa Lavizzo-Mourey
Director
January 26, 2022

Gregory D. Smith

Director

January 26, 2022

/s/    DION J. WEISLER
Dion J. Weisler
Director
January 26, 2022

/s/    FRANK D. YEARY
Frank D. Yeary
Director
January 26, 2022

Supplemental Details

122

Supplemental Details

121

 
Corporate Directory

BOARD OF DIRECTORS

EXECUTIVE OFFICERS

Patrick P. Gelsinger

Chief Executive Officer

James J. Goetz

Partner

Sequoia Capital

Dr. Andrea J. Goldsmith

Dean of Engineering and Applied Science and 

Professor of Engineering

Princeton University

Alyssa H. Henry
Square Lead and 

Block Infrastructure and Information Security Lead

Block, Inc.

Dr. Omar Ishrak†

Patrick P. Gelsinger

Chief Executive Officer

David A. Zinsner

Executive Vice President 
Chief Financial Officer and

Principal Accounting Officer

Sandra L. Rivera

Executive Vice President 

General Manager, Data Center and AI Group

Former Executive Chairman and Chief Executive 
Officer

Medtronic plc

For additional listing of Intel senior management, 
visit:

www.intel.com/newsroom/bios

Dr. Risa Lavizzo-Mourey

Robert Wood Johnson Foundation PIK

Professor Emerita

University of Pennsylvania

Dr. Tsu-Jae King Liu

Dean and Roy W. Carlson Professor of Engineering

College of Engineering

University of California, Berkeley

Gregory D. Smith

Former Chief Financial Officer and 

Executive Vice President, Enterprise Operations 

The Boeing Company

Dion J. Weisler

Former President and Chief Executive Officer

HP Inc.

Frank D. Yeary

Principal

Darwin Capital Advisors, LLC

1 Independent Chairman of the Board
** As of March 1, 2022

Investor Information

Intel on NASDAQ

Intel's common stock trades on the Nasdaq Global Select Market* under the symbol INTC.

Investor materials

Intel's Investor Relations website contains background on our company and our products, financial information, investor presentations, 
frequently asked questions, and our online annual report, as well as other useful information such as news releases and information on 
corporate governance practices and corporate responsibility. For investor information, including additional copies of our annual report/10-
K, 10-Qs, or other financial literature, visit our website at www.intc.com or call Intel at (408) 765-1480 (US); (44) 1793 403 000 (Europe); 
(852) 2844 4555 (Hong Kong); (81) 3 5223 9100 (Japan).

Direct stock purchase plan

Intel's Direct Stock Purchase and Dividend Reinvestment Plan allows stockholders to reinvest dividends and purchase Intel common 
stock on a weekly basis. For more information, contact Intel's transfer agent, Computershare Trust Company, N.A., by phone at (800) 
298-0146 (US and Canada) or (312) 360-5123 (worldwide), or by e-mail though Computershare's website at www.computershare.com/
contactus.

Transfer agent and registrar

Computershare Trust Company, N.A., 462 South 4th Street Suite 1600, Louisville, KY 40202

US Stockholders may call (800) 298-0146 (US and Canada) or (312) 360-5123 (worldwide), or send e-mail through Computershare's 
website at www.computershare.com/contactus with any questions regarding the transfer of ownership of Intel stock.

Independent registered public accounting firm

Ernst & Young LLP, San Jose, California, US.

About Intel

Intel (NASDAQ: INTC) is an industry leader, creating world-changing technology that improves the life of every person on the planet. 
Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our 
customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash 
four extraordinary technological capabilities that will fundamentally alter how people experience technology and interact with devices: AI, 
pervasive connectivity, cloud to edge, and ubiquitous computing. To learn more about Intel’s innovations, go to 
newsroom.intel.com and intel.com.

Corporate governance and corporate responsibility

As a global technology and business leader, we are committed to doing the right things, the right way. The Intel Code of Conduct guides 
the actions of our employees, officers, non-employee directors, wholly owned subsidiaries, and suppliers, ensuring consistent and 
uncompromising integrity as we build trusted relationships around the world. For more information about our corporate governance 
practices, read our latest Proxy Statement or visit www.intel.com/governance.

Our integrated approach to corporate responsibility and sustainability-built on a strong foundation of transparency, governance, and 
ethics-creates value for Intel and our stockholders by helping us mitigate risks, reduce costs, build brand value, and identify new market 
opportunities. We set ambitious goals and make strategic investments to drive improvements in environmental sustainability, supply chain 
responsibility, diversity and inclusion, and social impact that benefit the environment and society. Intel's annual Corporate Responsibility 
Report outlines our strategic priorities and performance on a range of environmental, social, and governance factors. The report and 
supporting materials are available at www.intel.com/responsibility.

The papers utilized in the production of this Annual Report are all certified for Forest Stewardship 
Council (FSC®) standards, which promote environmentally appropriate, socially beneficial and 
economically viable management of the world’s forests. This annual report was printed by DG3 North 
America. DG3’s facility uses exclusively vegetable based inks, 100% renewable wind energy and 
releases zero VOCs into the environment.

Intel, the Intel logo, Intel Inside, and the Intel Inside logo are trademarks of Intel Corporation in the US and/or other countries. © 2019 Intel 
Corporation. All rights reserved. 

*Other names and brands may be claimed as the property of others.  ♻ Printed on recycled paper using soy-based inks.

Awards and Recognitions

Third-party ratings and rankings give us valuable feedback on our programs and practices, and help drive continuous improvement 
over time. Below is a selection of the corporate responsibility-related awards and recognitions that Intel received in 2021.

3BL Media. 100 Best Corporate Citizens

American Association of People with Disabilities and Disability:IN. Disability Equality Index

AnitaB.org. America's Top Corporations for Women Technologists

Barron's. 100 Most Sustainable Companies

Bloomberg. Bloomberg Gender-Equality Index

CDP. "A" Water Security Rating, "A" Climate Change Rating, Supplier Engagement Leadership  Rating

Center for Political Accountability. CPA-Zicklin Index of Corporate Political Disclosure and Accountability - Trendsetter Company

Center for Resource Solutions. Renewable Energy Markets Asia Award

Corporate Knights. Global 100 Most Sustainable Corporations 

DisabilityIn: Employee Resource Group of the Year

Dow Jones Sustainability Index. North America Index

Ethisphere Institute. World’s Most Ethical Companies

Forbes. World's Best Employers, America’s Best Employers for Women, America's Best Employers for Diversity, America’s Best 
Employers for New Grads, and America's Best Employers for Veterans

Fortune. Top 20 Fortune 500 Companies on Diversity and Inclusion
FTSE Group. FTSE4Good Index1

Gartner. Supply Chain Top 25

Human Rights Campaign. Corporate Equality Index
ISS. 1 rating in both Environment & Social QualityScore2 

LATINA Style 50. Top 50 Companies for Latinas to Work in the US

Minority Engineer. Top 50 Employers 
MSCI. World ESG Leaders Index3 

National Business Inclusion Consortium. Best-of-the-Best Corporations for Inclusion 

Newsweek. America’s Most Responsible Companies

Religious Freedom & Business Foundation. Corporate Religious Equity, Diversity and Inclusion Index      

RepTrak. 2021 Global RepTrak®  100

US Environmental Protection Agency. #3 ranking on Green Power Partnership National Top 100

Wall Street Journal. Management Top 250 

Women’s Business Enterprise National Council. Top Corporations for Women’s Business Enterprises 

WE Connect International. Top 10 Global Champions for Supplier Diversity Inclusion 

Women Engineer Magazine. Top 50 Employers - Readers' Choice

Working Mother. Best Companies for Multicultural Women

1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Intel Corporation has been independently 
assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by 
the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong 
environmental, social, and governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess 
responsible investment funds and other products.
2 Score as of end of year 2021.
3 The inclusion of Intel Corporation in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a 
sponsorship, endorsement, or promotion of Intel Corporation by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI 
and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.

Supplemental Details

124

This page intentionally left blank.

www.intel.com
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and sustainability, and more. 

www.intc.com
Stock information, earnings and 
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