Intel's cash and cash equivalents jumped in Q2 2024 because **strong financing inflows** more than offset the cash outflows from investing and operating activities. In particular, **financing activities** generated **$14,867 million**, driven largely by **partner contributions of $11,861 million** and additional inflows from the issuance of commercial paper and long-term debt, even after partial offsets from repayments. This robust financing performance was the key factor behind the significant increase from **$7,079 million** at the beginning to **$11,287 million** at the end of the period.  **[0000050863-24-000124_intc-20240629.htm:7]** **[0000050863-24-000122_q224_earningsrelease.htm:8]** 

Why did Cash and cash equivalents jump in Q2 2024?

The spike in Total assets in Q2 2024 was driven primarily by an **increase in cash and cash equivalents** (rising from **$7,079 million** to **$11,287 million**), a **growth in property, plant, and equipment (net)** (increasing from **$96,647 million** to **$103,398 million**), and a **rise in other current assets** (from **$3,706 million** to **$7,181 million**). These factors contributed significantly to the overall increase in assets, despite being partially offset by minor changes in other asset categories.  **[0000050863-24-000124_intc-20240629.htm:6]** **[0000050863-24-000122_q224_earningsrelease.htm:7]** 

What drove the spike in Total assets in Q2 2024?

The sharp drop in **Retained Earnings** by Q3 2024 was primarily due to a **net loss of $16,639 million** during the quarter. This loss was driven by approximately **$15.9 billion in impairment charges**—including non-cash impairments and accelerated depreciation for manufacturing assets, as well as significant write-downs for goodwill, acquired intangible assets, and deferred tax asset valuation allowances—as well as **$2.8 billion in restructuring charges** related to headcount reductions and real estate consolidations. Additionally, an **operating loss of $9,057 million** further contributed to the decline, collectively reducing retained earnings from **$66,162 million to $49,052 million** by Q3 2024.  **[0000050863-24-000149_intc-20240928.htm:37]** **[0000050863-24-000149_intc-20240928.htm:6]** **[0000050863-24-000149_intc-20240928.htm:36]** **[0000050863-24-000147_q324_earningsrelease.htm:0]** **[0000050863-24-000149_intc-20240928.htm:42]** **[0000050863-24-000147_q324_earningsrelease.htm:0]** **[0000050863-24-000149_intc-20240928.htm:9]** 

Why did Retained earnings drop sharply by Q3 2024?

The documents indicate that in **Q4 2024**, the **accounts payable increased significantly from $8,578 million to $12,556 million**; however, they do not provide any specific details on what contributed to this change.  **[0000050863-25-000004_q424_earningsrelease.htm:6]** **[0000050863-25-000009_intc-20241228.htm:97]** 

What contributed to the increase in Accounts payable in Q4 2024?

0c4bcf650130cae72d53e1a507f8d1d061c3d6b4082e9d5f7d7b71e70b7c6437

Intel's strong positive adjusted free cash flow in Q2 2024 was mainly driven by **better working capital** and **$11.5 billion in grants and partner contributions**, which more than offset the **$5.7 billion in gross capital expenditures**. Additionally, the calculation of adjusted free cash flow involves modifying operating cash flow to account for additions to property, plant, and equipment, in addition to the effects of government incentives, partner contributions, and finance lease payments.  **[INTC_3395796_6]** **[0000050863-24-000122_q224_earningsrelease.htm:11]** 

What factors contributed to the strong positive adjusted free cash flow in Q2 2024?

Intel's adjusted free cash flow turned negative in Q3 2024 primarily because the company experienced a **higher net loss** and incurred significant **restructuring and impairment charges**. These charges included **$2.8 billion in restructuring costs** and **$15.9 billion in impairment charges**, which had a strong negative impact on the metric despite improved operating cash flow driven by better working capital management.  **[0000050863-24-000149_intc-20240928.htm:5]** **[0000050863-24-000147_q324_earningsrelease.htm:0]** **[INTC_3405233_5]** 

Why did adjusted free cash flow turn negative in Q3 2024?

The drop in operating cash flow in Q4 2024 was primarily driven by the fact that Intel incurred a **net loss in Q4 2024**. This net loss reduced the operating cash flow relative to Q4 2023, when the company had **net income**. Additionally, there were **higher favorable operating cash flow adjustments for non-cash items**—including **depreciation, share-based compensation, and restructuring and other expenses**—in Q4 2024, which helped mitigate but did not fully offset the impact of the net loss.  **[0000050863-25-000004_q424_earningsrelease.htm:15]** **[0000050863-25-000009_intc-20241228.htm:43]** 

What led to the drop in operating cash flow in Q4 2024?

306147cdb5d8c4d46114b7b1d43c67f213f09588616f5dd0bc074e5c0dc7f91c

Intel's operating income was so low in Q3 2024 primarily due to a **substantial increase in restructuring and other charges** (rising from **$816 million** to **$5,622 million**), which was driven by the implementation of a major restructuring plan. In addition, the company experienced a **sharp increase in cost of sales**, resulting in a lower gross margin, along with **significant non-cash impairments** affecting manufacturing assets, goodwill, and acquired intangibles, and further **rising operating expenses** including research and development, and marketing, general, and administrative costs. These factors combined led to an operating loss of **$9,057 million** in Q3 2024.  **[0000050863-24-000149_intc-20240928.htm:45]** **[0000050863-24-000149_intc-20240928.htm:42]** **[0000050863-24-000149_intc-20240928.htm:37]** **[0000050863-24-000149_intc-20240928.htm:6]** 

Why was Operating Income so low in Q3 2024?

The sharp drop in EPS in Q3 2024 was primarily driven by a combination of **substantial impairment and restructuring charges**, a significant **increase in the cost of sales and operating expenses**, and considerable **non-cash charges related to deferred tax asset valuation allowances**. Specifically, Intel incurred **$15.9 billion in impairment charges** and **$2.8 billion in restructuring charges**, had increased restructuring and other charges of **$5.622 billion** contributing to a large operating loss, and recorded **$9.9 billion** of deferred tax asset valuation allowances, all of which collectively led to the dramatic downturn in EPS.  **[0000050863-24-000147_q324_earningsrelease.htm:0]** **[0000050863-24-000147_q324_earningsrelease.htm:6]** **[0000050863-24-000149_intc-20240928.htm:42]** **[0000050863-24-000149_intc-20240928.htm:6]** 

What caused the EPS to drop sharply in Q3 2024?

The drastic decline in Q3 2024 was due to several factors. **Impairment and restructuring charges** played a key role, including **$3.1 billion** in non-cash impairments and accelerated depreciation for manufacturing assets and **$2.9 billion** for goodwill and acquired intangible asset impairments.  **[0000050863-24-000149_intc-20240928.htm:37]** **[0000050863-24-000149_intc-20240928.htm:6]**  Additionally, a substantial **$9.9 billion** non-cash charge related to **valuation allowances** against Intel's net deferred tax assets further impacted net income.  **[0000050863-24-000149_intc-20240928.htm:37]** **[0000050863-24-000149_intc-20240928.htm:6]**  The **2024 Restructuring Plan** contributed **$2.8 billion** in cash-based employee severance and related charges  **[0000050863-24-000147_q324_earningsrelease.htm:0]** **[0000050863-24-000149_intc-20240928.htm:36]** **[0000050863-24-000149_intc-20240928.htm:45]**  and significantly higher **operating expenses** (increasing from **$816 million** in Q3 2023 to **$5,622 million** in Q3 2024) also affected the bottom line.  **[0000050863-24-000149_intc-20240928.htm:42]** 

What factors contributed to the drastic decline in Net Income in Q3 2024?

Intel's FY 2024 net income swung to a negative **$(19,233) million** primarily due to multiple factors that compounded their financial difficulties. The company experienced a **decline in gross margin** to **32.7%** from **40.0%**, driven by higher costs including non-cash impairments and accelerated depreciation of manufacturing assets. Additionally, Intel incurred a substantial **$6,970 million** in restructuring and other charges compared to a benefit in the prior year, which, along with a **higher tax expense** of **$8,023 million** and increased operating expenses totaling **$29,023 million**, significantly eroded profitability. Lastly, a **2% decline in revenue** to **$53,101 million** and major non-cash impairments further contributed to the negative net income.  **[0000050863-25-000009_intc-20241228.htm:96]** **[0000050863-25-000009_intc-20241228.htm:22]** **[0000050863-25-000009_intc-20241228.htm:34]** 

Why did FY 2024 swing to a negative Net Income?

dfa6aeebd2cf4579a67fb3b2c2f5bae7de4b212e46d623f4b0cfbe2e0f0fb522

Net income (loss) (USD, millions)

Depreciation (USD, millions)

Share-based compensation (USD, millions)

Amortization of intangibles (USD, millions)

(Gains) losses on equity investments, net (USD, millions)

Income taxes (USD, millions)

Total adjustments (USD, millions)

Net cash provided by (used for) operating activities (USD, millions)

Additions to property, plant, and equipment (USD, millions)

Proceeds from capital-related government incentives (USD, millions)

Purchases of short-term investments (USD, millions)

Maturities and sales of short-term investments (USD, millions)

Proceeds from divestitures (USD, millions)

Other investing (USD, millions)

Net cash provided by (used for) investing activities (USD, millions)

Issuance of commercial paper, net of issuance costs (USD, millions)

Partner contributions (USD, millions)

Issuance of long-term debt, net of issuance costs (USD, millions)

Repayment of debt (USD, millions)

Proceeds from sales of common stock through employee equity incentive plans (USD, millions)

Payment of dividends to stockholders (USD, millions)

Other financing (USD, millions)

Net cash provided by (used for) financing activities (USD, millions)

Net increase (decrease) in cash and cash equivalents (USD, millions)

Cash and cash equivalents, beginning of period (USD, millions)

Deferred taxes (USD, millions)

Accounts receivable (USD, millions)

Inventories (USD, millions)

Accounts payable (USD, millions)

Accrued compensation and benefits (USD, millions)

Other assets and liabilities (USD, millions)

Cash and cash equivalents, end of period (USD, millions)

aec92211a419a5df155e6fcfc30a1954af41f19bcda283bd8900d903c6c75e04

Net revenue (USD, millions)

Cost of sales (USD, millions)

Gross margin (USD, millions)

Research and development (USD, millions)

Marketing, general, and administrative (USD, millions)

Restructuring and other charges (USD, millions)

Operating income (loss) (USD, millions)

Gains (losses) on equity investments, net (USD, millions)

Interest and other, net (USD, millions)

Income (loss) before taxes (USD, millions)

Provision for (benefit from) taxes (USD, millions)

Less: net income (loss) attributable to non-controlling interests (USD, millions)

Net income (loss) attributable to Intel (USD, millions)

Earnings (loss) per share attributable to Intel—diluted (USD)

2b326b82a0eea41dcf885872c845d4d3580e98c732da78cac59b191c983a0f89

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant, and equipment, net (USD, millions)

Equity investments (USD, millions)

Goodwill (USD, millions)

Identified intangible assets, net (USD, millions)

Other long-term assets (USD, millions)

Total assets (USD, millions)

Short-term debt (USD, millions)

Income taxes payable (USD, millions)

Other accrued liabilities (USD, millions)

Total current liabilities (USD, millions)

Debt (USD, millions)

Other long-term liabilities (USD, millions)

Common stock and capital in excess of par value (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Retained earnings (USD, millions)

Total Intel stockholders' equity (USD, millions)

Non-controlling interests (USD, millions)

Total stockholders' equity (USD, millions)

Total liabilities and stockholders' equity (USD, millions)

ce0b79a57cee7c1f7c21950237ea5d39b645d5707c6d20d879c630fe2e0f514d

a5ca312dfc7cc092e8039c181f248be5a0219fd3de73095545078fb9b79ccb90

aef61d83c503a904b65ec89c720e6d8a58b3e863962e06b160b28045be504763

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

ad5e328006fd29c554bad2505e6f6b01e77ab0c0d134fbe43780799137e8b35f

Reductions in headcount (employees)

ff5f51b8342c0f1a07bdb5f7a43631337db6867f247bf7d997c9944f4f482e32

China

Singapore

United States

Taiwan

Other regions

Japan

Other countries

Total Revenue

9e6678270422ffc68330f06acc28c5defe2de5459447857b82d29e16aad37ecd

12ec499f3aca8d2391a98dd63ddd0edf48392eda19576c783798df45b90379df

INTEL (INTC)

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