Intel Corporation: 10-K Risk Factor Changes

Level 1 Level 2 Level 3 Financial institution instruments1 Financial institution instruments1 Government debt2 Derivative assets Derivative assets Loans receivable Derivative assets Derivative assets Derivative liabilities Derivative liabilities Derivative liabilities Derivative liabilities 1.Level 1 investments consist of money market funds. Level 2 investments consist primarily of commercial paper, certificates of deposit, time deposits, notes and bonds issued by financial institutions. 2.Level 1 investments consist primarily of US Treasury securities. Level 2 investments consist primarily of non-US government debt. 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 30, 2023 were $202 million ($179 million on investments held as of December 31, 2022). Financial StatementsNotes to Consolidated Financial Statements99 Financial StatementsNotes to Consolidated Financial Statements99 Financial StatementsNotes to Consolidated Financial Statements99 Notes to Consolidated Financial Statements 99 Table of Contents Table of Contents Financial Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis Financial assets and liabilities 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, long-term receivables, and issued debt. We classify the fair value of grants receivable, long-term receivables, and reverse repurchase agreements with original maturities greater than three months as Level 2. The estimated fair value of these financial assets approximates their carrying value. The aggregate carrying value of grants receivable as of December 30, 2023 was $559 million (the aggregate carrying value of grants receivable as of December 31, 2022 was $437 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of December 30, 2023 was $0 (the aggregate carrying value as of December 31, 2022 was $400 million). We classify the fair value of issued debt (excluding commercial paper) as Level 2. The fair value of these instruments was $47.6 billion as of December 30, 2023 ($34.3 billion as of December 31, 2022). 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)Unrealized Holding Gains (Losses) on DerivativesActuarial Valuation and Other Pension Expenses Translation Adjustments and Other TotalDecember 26, 2020$731 $(1,565)$83 $(751)Other comprehensive income (loss) before reclassifications(434)476 (58)(16)Amounts reclassified out of accumulated other comprehensive income (loss)(226)101 (19)(144)Tax effects140 (126)17 31 Other comprehensive income (loss)(520)451 (60)(129)December 25, 2021211 (1,114)23 (880)Other comprehensive income (loss) before reclassifications(910)923 (28)(15)Amounts reclassified out of accumulated other comprehensive income (loss)410 82 (6)486 Tax effects(10)(150)7 (153)Other comprehensive income (loss)(510)855 (27)318 December 31, 2022(299)(259)(4)(562)Other comprehensive income (loss) before reclassifications3 57 11 71 Amounts reclassified out of accumulated other comprehensive income (loss)328 33 — 361 Tax effects(59)(24)(2)(85)Other comprehensive income (loss)272 66 9 347 December 30, 2023$(27)$(193)$5 $(215)

Level 1 Level 2 Level 3 Financial institution instruments1 Financial institution instruments1 Government debt2 Derivative assets Derivative assets Loans receivable3 Marketable equity securities4 Derivative assets Derivative assets Loans receivable3 Derivative liabilities Derivative liabilities Derivative liabilities Derivative liabilities 1.Level 1 investments consist of money market funds recorded at Net Asset Value. 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 consist primarily of non-US government debt. 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. 4.Level 2 investments consist of marketable equity securities subject to security-specific restrictions for which a fair value adjustment was recorded. 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 31, 2022 were $179 million ($138 million on investments held as of December 25, 2021). Financial StatementsNotes to Consolidated Financial Statements103 Financial StatementsNotes to Consolidated Financial Statements103 Financial StatementsNotes to Consolidated Financial Statements103 Notes to Consolidated Financial Statements 103 Table of Contents Table of Contents 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 and reverse repurchase agreements with original maturities greater than three months 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 31, 2022 was $437 million (the aggregate carrying value of grants receivable as of December 25, 2021 was $317 million). The aggregate carrying value of reverse repurchase agreements with original maturities greater than three months as of December 31, 2022 was $400 million (the aggregate carrying value as of December 25, 2021 was $0 million). We classify the fair value of issued debt (excluding commercial paper) as Level 2. The fair value of these instruments was $34.3 billion as of December 31, 2022 ($41.5 billion as of December 25, 2021). 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)Unrealized Holding Gains (Losses) on DerivativesActuarial Valuation and Other Pension Expenses Translation Adjustments and Other TotalDecember 28, 2019$54 $(1,382)$48 $(1,280)Other comprehensive income (loss) before reclassifications806 (323)55 538 Amounts reclassified out of accumulated other comprehensive income (loss)(8)89 (11)70 Tax effects(121)51 (9)(79)Other comprehensive income (loss)677 (183)35 529 December 26, 2020731 (1,565)83 (751)Other comprehensive income (loss) before reclassifications(434)476 (58)(16)Amounts reclassified out of accumulated other comprehensive income (loss)(226)101 (19)(144)Tax effects140 (126)17 31 Other comprehensive income (loss)(520)451 (60)(129)December 25, 2021211 (1,114)23 (880)Other comprehensive income (loss) before reclassifications(910)923 (28)(15)Amounts reclassified out of accumulated other comprehensive income (loss)410 82 (6)486 Tax effects(10)(150)7 (153)Other comprehensive income (loss)(510)855 (27)318 December 31, 2022$(299)$(259)$(4)$(562)

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, 1.1 billion shares of common stock have been authorized for issuance as equity awards to employees and non-employee directors through June 2026. As of December 30, 2023, 194 million shares of common stock remained available for future grants. Under the 2006 Plan, we may 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 2023 and 2022, the number of shares of our common stock to be received at vesting at the end of the three-year performance period will range from 0% to 200% of the target grant amount. The PSU payout will be determined based on our performance (i) relative to annual targets for each year in the performance period with respect to a revenue growth metric, weighted 60%, and a cash flow from operations metric, weighted 40%, which results are then averaged at the end of the three-year performance period; and (ii) as may be adjusted by two equally weighted modifiers: the TSR of our common stock measured against the benchmark TSR of above median of the S&P 500 Index over a three-year period and revenue CAGR for the three-year performance period. TSR is a measure of stock price appreciation plus any dividends paid in this performance period. For 2023 PSUs, overall payout will be capped at target grant amount if our absolute TSR is negative. As of December 30, 2023, 16 million PSUs were outstanding. PSUs vest three years and one month following the start of the performance period. Other RSU awards and option awards generally vest over four years from the grant date. Share-Based Compensation Share-based compensation recognized in 2023 was $3.2 billion ($3.1 billion in 2022 and $2.0 billion in 2021). During 2023, the tax benefit that we realized for the tax deduction from share-based awards totaled $571 million ($478 million in 2022 and $377 million in 2021). We estimate the fair value of RSUs and PSUs 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 PSUs with a market condition using a Monte Carlo simulation model as of the date of grant using historical volatility. Financial StatementsNotes to Consolidated Financial Statements106 Financial StatementsNotes to Consolidated Financial Statements106 Financial StatementsNotes to Consolidated Financial Statements106 Notes to Consolidated Financial Statements 106 Table of Contents Table of Contents Restricted Stock Units and Performance Stock Units Weighted average assumptions used in estimating grant values were as follows: Dec 30, 2023Dec 31, 2022Dec 25, 2021Estimated values$28.92 $41.12 $50.82 Risk-free interest rate4.7 %2.2 %0.2 %Dividend yield1.6 %3.4 %2.6 %Volatility36 %40 %37 % Summary of activities:

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, 946 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 31, 2022, 119 million shares of common stock remained available for future grants. Under the 2006 Plan, we may 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 2022, the number of shares of our common stock to be received at vesting at the end of the three-year performance period will range from 0% to 200% of the target grant amount and will be determined based on our performance relative to annual targets for each year in the performance period with respect to a revenue growth metric, weighted 60%, and a cash flow from operations metric, weighted 40%. The results are then averaged at the end of the performance period. Additionally, an adjustment to the performance goals aggregate achievement percentage is based on the TSR of our common stock measured against the benchmark TSR of the S&P 500 Index over a three-year period and revenue CAGR for the three-year performance period. TSR is a measure of stock price appreciation plus any dividends paid in this performance period. As of December 31, 2022, 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. Share-Based Compensation Share-based compensation recognized in 2022 was $3.1 billion ($2.0 billion in 2021 and $1.9 billion in 2020). During 2022, the tax benefit that we realized for the tax deduction from share-based awards totaled $478 million ($377 million in 2021 and $380 million in 2020). We estimate the fair value of RSUs and PSUs 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 PSUs with a market condition using a Monte Carlo simulation model as of the date of grant using historical volatility. Financial StatementsNotes to Consolidated Financial Statements110 Financial StatementsNotes to Consolidated Financial Statements110 Financial StatementsNotes to Consolidated Financial Statements110 Notes to Consolidated Financial Statements 110 Table of Contents Table of Contents Restricted Stock Units and Performance Stock Units Weighted average assumptions used in estimating grant values were as follows: Dec 31, 2022Dec 25, 2021Dec 26, 2020Estimated values$41.12 $50.82 $54.82 Risk-free interest rate2.2 %0.2 %0.4 %Dividend yield3.4 %2.6 %2.3 %Volatility40 %37 %30 % Summary of activities:

Deferred tax assets are included within other long-term assets on the Consolidated Balance Sheets. The valuation allowance as of December 30, 2023 included allowances primarily related to unrealized state credit carryforwards of $2.6 billion. As of December 30, 2023, our federal and non-US net operating loss carryforwards for income tax purposes were $325 million and $1.7 billion, respectively. The majority of the federal and non-US net operating loss carryforwards have no expiration date. The remaining federal and non-US net operating loss carryforwards expire at various dates through 2040. The federal and non-US net operating loss carryforwards include $141 million and $1.7 billion, respectively, that are not likely to be recovered and have been reduced by a valuation allowance. As of December 30, 2023, we have undistributed earnings of certain foreign subsidiaries of approximately $19.9 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 StatementsNotes to Consolidated Financial Statements92 Financial StatementsNotes to Consolidated Financial Statements92 Financial StatementsNotes to Consolidated Financial Statements92 Notes to Consolidated Financial Statements 92 Table of Contents Table of Contents Current income taxes receivable of $59 million as of December 30, 2023 ($138 million as of December 31, 2022) are included in other current assets. Long-term income taxes payable of $2.6 billion as of December 30, 2023 ($3.8 billion as of December 31, 2022) are primarily composed 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 30, 2023Dec 31, 2022Dec 25, 2021Beginning gross unrecognized tax benefits$1,229 $1,020 $828 Settlements and effective settlements with tax authorities (288)(18)(25)Changes in balances related to tax position taken during prior periods— (120)(26)Changes in balances related to tax position taken during current period183347243Ending gross unrecognized tax benefits$1,124 $1,229 $1,020 If the remaining balance of unrecognized tax benefits were recognized in a future period, it would result in a tax benefit of $962 million as of December 30, 2023 ($914 million as of December 31, 2022) 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 30, 2023 could decrease by as much as $314 million in the next 12 months. We file federal, state, and non-US tax returns. We are no longer subject to US federal and non-US tax examinations for years prior to 2018 and 2015, respectively. For US state tax returns, we are no longer subject to tax examination for years prior to 2015. Note 9 : Investments Short-term Investments Short-term investments include marketable debt investments in corporate debt, government debt, and financial institution instruments, and are recorded within cash and cash equivalents and short-term investments on the Consolidated Balance Sheets. Government debt includes instruments such as non-US government bills and 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 30, 2023 and December 31, 2022, substantially all time deposits were issued by institutions outside the US. The fair value of our economically hedged marketable debt investments was $17.1 billion as of December 30, 2023 ($16.2 billion as of December 31, 2022). For hedged investments still held at the reporting date, we recorded net gains of $534 million in 2023 (net losses of $748 million in 2022 and net losses of $606 million in 2021). Net losses on the related derivatives were $472 million in 2023 (net gains of $752 million in 2022 and net gains of $609 million in 2021). Our remaining unhedged marketable debt investments are reported at fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). The adjusted cost of our unhedged investments was $4.7 billion as of December 30, 2023 ($10.2 billion as of December 31, 2022), which approximated the fair value for these periods. The fair value of marketable debt investments, by contractual maturity, as of December 30, 2023, was as follows: (In Millions)Fair ValueDue in 1 year or less$9,575 Due in 1–2 years2,375 Due in 2–5 years7,134 Due after 5 years442 Instruments not due at a single maturity date2,274 Total$21,800 Financial StatementsNotes to Consolidated Financial Statements93 Financial StatementsNotes to Consolidated Financial Statements93 Financial StatementsNotes to Consolidated Financial Statements93 Notes to Consolidated Financial Statements 93 Table of Contents Table of Contents Equity Investments (In Millions)Dec 30, 2023Dec 31, 2022Marketable equity securities1$1,194 $1,341 Non-marketable equity securities4,630 4,561 Equity method investments5 10 Total$5,829 $5,912

Deferred tax assets are included within other long-term assets on the Consolidated Balance Sheets. The valuation allowance as of December 31, 2022 included allowances primarily related to unrealized state credit carryforwards of $2.3 billion. As of December 31, 2022, our federal and non-US net operating loss carryforwards for income tax purposes were $379 million and $478 million, respectively. The majority of the federal and non-US net operating loss carryforwards have no expiration date. The remaining federal and non-US net operating loss carryforwards expire at various dates through 2040. The federal and non-US net operating loss carryforwards include $141 million and $442 million, respectively, that is not likely to be recovered and has been reduced by a valuation allowance. As of December 31, 2022, we have undistributed earnings of certain foreign subsidiaries of approximately $19.3 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 StatementsNotes to Consolidated Financial Statements95 Financial StatementsNotes to Consolidated Financial Statements95 Financial StatementsNotes to Consolidated Financial Statements95 Notes to Consolidated Financial Statements 95 Table of Contents Table of Contents Current income taxes receivable of $138 million as of December 31, 2022 ($23 million as of December 25, 2021) are included in other current assets. Long-term income taxes payable of $3.8 billion as of December 31, 2022 ($4.3 billion as of December 25, 2021) 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 31, 2022Dec 25, 2021Dec 26, 2020Beginning gross unrecognized tax benefits$1,020 $828 $548 Settlements and effective settlements with tax authorities (18)(25)(142)Changes in balances related to tax position taken during prior periods(120)(26)165 Changes in balances related to tax position taken during current period347243257Ending gross unrecognized tax benefits$1,229 $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 $914 million as of December 31, 2022 ($721 million as of December 25, 2021) 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 31, 2022 could decrease by as much as $366 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 and 2012. For US state tax returns, we are no longer subject to tax examination for years prior to 2015. Note 9 : Investments Short-term Investments Short-term investments include marketable debt investments in 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 31, 2022 and December 25, 2021, substantially all time deposits were issued by institutions outside the US. For certain of our marketable debt investments, we economically hedge market risks at inception with a related derivative instrument or the marketable debt investment itself is used to economically hedge currency exchange rate risk from remeasurement. These hedged investments are reported at fair value with gains or losses from the investments and the related derivative instruments recorded in interest and other, net. The fair value of our hedged investments was $16.2 billion as of December 31, 2022 ($21.5 billion as of December 25, 2021). For hedged investments still held at the reporting date, we recorded net losses of $748 million in 2022 (net losses of $606 million in 2021 and net gains of $694 million in 2020). Net gains on the related derivatives were $752 million in 2022 (net gains of $609 million in 2021 and net losses of $667 million in 2020). Our remaining unhedged marketable debt investments are reported at fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). The adjusted cost of our unhedged investments was $10.2 billion as of December 31, 2022 ($5.0 billion as of December 25, 2021), which approximated the fair value for these periods. The fair value of marketable debt investments, by contractual maturity, as of December 31, 2022, was as follows: (In Millions)Fair ValueDue in 1 year or less$12,680 Due in 1–2 years1,844 Due in 2–5 years4,139 Due after 5 years665 Instruments not due at a single maturity date7,095 Total$26,423 Financial StatementsNotes to Consolidated Financial Statements96 Financial StatementsNotes to Consolidated Financial Statements96 Financial StatementsNotes to Consolidated Financial Statements96 Notes to Consolidated Financial Statements 96 Table of Contents Table of Contents Equity Investments (In Millions)Dec 31, 2022Dec 25, 2021Marketable equity securities1$1,341 $2,171 Non-marketable equity securities4,561 4,111 Equity method investments10 16 Total$5,912 $6,298

Foreign currency contracts3 Foreign currency contracts3 1Derivative assets are recorded as other assets, current and long-term. 2Derivative liabilities are recorded as other liabilities, current and long-term. 3A substantial 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 30, 2023Gross Amounts Not Offset in the Balance Sheet(In Millions)Gross Amounts RecognizedGross Amounts Offset in the Balance SheetNet Amounts Presented in the Balance SheetFinancial InstrumentsCash and Non-Cash Collateral Received or PledgedNet AmountAssets:Derivative assets subject to master netting arrangements$1,047 $— $1,047 $(617)$(430)$— Reverse repurchase agreements2,554 — 2,554 — (2,554)— Total assets3,601 — 3,601 (617)(2,984)— Liabilities:Derivative liabilities subject to master netting arrangements1,111 — 1,111 (617)(399)95 Total liabilities$1,111 $— $1,111 $(617)$(399)$95 Financial StatementsNotes to Consolidated Financial Statements101 Financial StatementsNotes to Consolidated Financial Statements101 Financial StatementsNotes to Consolidated Financial Statements101 Notes to Consolidated Financial Statements 101 Table of Contents Table of Contents December 31, 2022Gross Amounts Not Offset in the Balance Sheet(In Millions)Gross Amounts RecognizedGross Amounts Offset in the Balance SheetNet Amounts Presented in the Balance SheetFinancial InstrumentsCash and Non-Cash Collateral Received or PledgedNet AmountAssets:Derivative assets subject to master netting arrangements$1,231 $— $1,231 $(546)$(682)$3 Reverse repurchase agreements1,701 — 1,701 — (1,701)— Total assets2,932 — 2,932 (546)(2,383)3 Liabilities:Derivative liabilities subject to master netting arrangements1,337 — 1,337 (546)(712)79 Total liabilities$1,337 $— $1,337 $(546)$(712)$79 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 $3 million net gains in 2023 ($910 million net losses in 2022 and $434 million net losses in 2021). Substantially all of our cash flow hedges are foreign currency contracts for all periods presented. Amounts excluded from effectiveness testing were $221 million net losses in 2023 ($117 million net losses in 2022 and $19 million net losses in 2021). For information on the unrealized holding gains (losses) on derivatives reclassified out of accumulated other comprehensive income (loss) into the Consolidated Statements of Income, see "Note 15: Other Comprehensive Income (Loss)" within the Notes to Consolidated Financial Statements. 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:

Foreign currency contracts3 Foreign currency contracts3 1Derivative assets are recorded as other assets, current and long-term. 2Derivative liabilities are recorded as other liabilities, current and long-term. 3The 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 31, 2022Gross Amounts Not Offset in the Balance Sheet(In Millions)Gross Amounts RecognizedGross Amounts Offset in the Balance SheetNet Amounts Presented in the Balance SheetFinancial InstrumentsCash and Non-Cash Collateral Received or PledgedNet AmountAssets:Derivative assets subject to master netting arrangements$1,231 $— $1,231 $(546)$(682)$3 Reverse repurchase agreements1,701 — 1,701 — (1,701)— Total assets2,932 — 2,932 (546)(2,383)3 Liabilities:Derivative liabilities subject to master netting arrangements1,337 — 1,337 (546)(712)79 Total liabilities$1,337 $— $1,337 $(546)$(712)$79 Financial StatementsNotes to Consolidated Financial Statements105 Financial StatementsNotes to Consolidated Financial Statements105 Financial StatementsNotes to Consolidated Financial Statements105 Notes to Consolidated Financial Statements 105 Table of Contents Table of Contents December 25, 2021Gross Amounts Not Offset in the Balance Sheet(In Millions)Gross Amounts RecognizedGross Amounts Offset in the Balance SheetNet Amounts Presented in the Balance SheetFinancial InstrumentsCash and Non-Cash Collateral Received or PledgedNet AmountAssets:Derivative assets subject to master netting arrangements$1,427 $— $1,427 $(332)$(986)$109 Reverse repurchase agreements1,595 — 1,595 — (1,595)— Total assets3,022 — 3,022 (332)(2,581)109 Liabilities:Derivative liabilities subject to master netting arrangements392 — 392 (332)(60)— Total liabilities$392 $— $392 $(332)$(60)$— 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 $910 million net losses in 2022 ($434 million net losses in 2021 and $806 million net gains in 2020). 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 (loss) into the Consolidated Statements of Income, see "Note 15: Other Comprehensive Income (Loss)" within the Notes to Consolidated Financial Statements. 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:

Financial StatementsNotes to Consolidated Financial Statements102 Financial StatementsNotes to Consolidated Financial Statements102 Financial StatementsNotes to Consolidated Financial Statements102 Notes to Consolidated Financial Statements 102 Table of Contents Table of Contents 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)Location of Gains (Losses)Recognized in Income on DerivativesDec 30, 2023Dec 31, 2022Dec 25, 2021Foreign currency contractsInterest and other, net$106 $1,492 $677 Interest rate contractsInterest and other, net50 309 31 OtherVarious325 (502)360 Total$481 $1,299 $1,068 Foreign currency contracts Foreign currency contracts Foreign currency contracts Interest rate contracts Interest rate contracts Interest rate contracts 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 $272 million in 2023, $489 million in 2022, and $444 million in 2021 for matching contributions based on the amount of employee contributions under the US qualified defined contribution and non-qualified deferred compensation plans. The matching contribution in the US qualified defined contribution plan was reduced from March 1 through December 31, 2023. 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 30, 2023 and December 31, 2022, the projected benefit obligation was $490 million and $527 million, which used the discount rates of 5.3% and 5.6%. The December 30, 2023 and December 31, 2022 corresponding fair value of plan assets was $548 million and $501 million. As of December 30, 2023, the US Retiree Medical Plan was in the net asset position. 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 45% equity and 55% fixed-income investments. As of December 30, 2023, 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. As of December 30, 2023, the estimated benefit payments for this plan over the next 10 years are as follows: (In Millions)202420252026202720282029-2033Postretirement medical benefits$34 $35 $35 $35 $36 $187 Pension Benefit Plans We provide defined-benefit pension plans in certain countries, most significantly Ireland, the US, Germany and Israel. 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 StatementsNotes to Consolidated Financial Statements103 Financial StatementsNotes to Consolidated Financial Statements103 Financial StatementsNotes to Consolidated Financial Statements103 Notes to Consolidated Financial Statements 103 Table of Contents Table of Contents (In Millions)Dec 30, 2023Dec 31, 2022Changes in projected benefit obligation:Beginning projected benefit obligation$2,705 $4,456 Service cost36 58 Interest cost127 91 Actuarial (gain) loss57 (1,500)Currency exchange rate changes38 (233)Plan settlements(103)(96)Other(35)(71)Ending projected benefit obligation12,825 2,705 Changes in fair value of plan assets:Beginning fair value of plan assets2,130 2,817 Actual return on plan assets151 (478)Currency exchange rate changes34 (102)Plan settlements(103)(96)Other— (11)Ending fair value of plan assets22,212 2,130 Net unfunded status$613 $575 Amounts recognized in the Consolidated Balance SheetsOther long-term assets$62 $74 Other long-term liabilities$675 $649 Accumulated other comprehensive loss (income), before tax3$410 $406 Accumulated benefit obligation$2,706 $2,507

Financial StatementsNotes to Consolidated Financial Statements106 Financial StatementsNotes to Consolidated Financial Statements106 Financial StatementsNotes to Consolidated Financial Statements106 Notes to Consolidated Financial Statements 106 Table of Contents Table of Contents 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)Location of Gains (Losses)Recognized in Income on DerivativesDec 31, 2022Dec 25, 2021Dec 26, 2020Foreign currency contractsInterest and other, net$1,492 $677 $(572)Interest rate contractsInterest and other, net309 31 (90)OtherVarious(502)360 284 Total$1,299 $1,068 $(378) Foreign currency contracts Foreign currency contracts Foreign currency contracts Interest rate contracts Interest rate contracts Interest rate contracts 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 $489 million in 2022, $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. 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 31, 2022 and December 25, 2021, the projected benefit obligation was $527 million and $682 million, which used the discount rates of 5.6% and 2.8%. The December 31, 2022 and December 25, 2021 corresponding fair value of plan assets was $501 million and $669 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 55% equity and 45% fixed-income investments. As of December 31, 2022, 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. As of December 31, 2022, the estimated benefit payments for this plan over the next 10 years are as follows: (In Millions)202320242025202620272028-2032Postretirement medical benefits$40 $41 $41 $43 $44 $222 Pension Benefit Plans We provide defined-benefit pension plans in certain countries, most significantly the US, Ireland, 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 StatementsNotes to Consolidated Financial Statements107 Financial StatementsNotes to Consolidated Financial Statements107 Financial StatementsNotes to Consolidated Financial Statements107 Notes to Consolidated Financial Statements 107 Table of Contents Table of Contents (In Millions)Dec 31, 2022Dec 25, 2021Changes in projected benefit obligation:Beginning projected benefit obligation$4,456 $4,929 Service cost58 54 Interest cost91 91 Actuarial (gain) loss(1,500)(284)Currency exchange rate changes(233)(150)Plan settlements(96)(126)Other(71)(58)Ending projected benefit obligation12,705 4,456 Changes in fair value of plan assets:Beginning fair value of plan assets2,817 2,878 Actual return on plan assets(478)145 Currency exchange rate changes(102)(63)Plan settlements(96)(126)Other(11)(17)Ending fair value of plan assets22,130 2,817 Net unfunded status$575 $1,639 Amounts recognized in the Consolidated Balance SheetsOther long-term assets$74 $— Other long-term liabilities$649 $1,639 Accumulated other comprehensive loss (income), before tax3$406 $1,445 Accumulated benefit obligation$2,507 $4,086

Property, plant, and equipment Changes in the valuation allowance for deferred tax assets were as follows: Years Ended (In Millions)Balance at Beginning of YearAdditions Charged to Expenses/Other AccountsNet(Deductions)RecoveriesBalance atEnd of YearValuation allowance for deferred tax assetsDecember 30, 2023$2,586 $461 $— $3,047 December 31, 2022$2,259 $401 $(74)$2,586 December 25, 2021$1,963 $442 $(146)$2,259

Changes in the valuation allowance for deferred tax assets were as follows: Years Ended (In Millions)Balance at Beginning of YearAdditions Charged to Expenses/Other AccountsNet(Deductions)RecoveriesBalance atEnd of YearValuation allowance for deferred tax assetsDecember 31, 2022$2,259 $401 $(74)$2,586 December 25, 2021$1,963 $442 $(146)$2,259 December 26, 2020$1,534 $378 $51 $1,963

Less: Net income (loss) attributable to non-controlling interests 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. During 2022, 70 million RSUs and stock options, as calculated on a weighted average basis for the year, were excluded from the computation of diluted earnings per share in the table above because they would have been anti-dilutive. These RSUs and options could potentially be included in the diluted earnings per share calculation in the future if the average market value of the common shares increases above the exercise price. For all other periods presented, securities that would have been anti-dilutive were insignificant and have been excluded from the computation of diluted earnings per share. Note 6 : Other Financial Statement Details Accounts Receivable We sell certain of our accounts receivable on a non-recourse basis to third-party financial institutions. We record these transactions as sales of receivables and present cash proceeds as cash flows provided by operating activities in the Consolidated Statements of Cash Flows. Accounts receivable sold under non-recourse factoring arrangements were $2.0 billion during 2023 and $665 million during 2022. After the sale of our accounts receivable, we expect to collect payment from the customers and remit it to the third-party financial institution. Inventories (In Millions)Dec 30, 2023Dec 31, 2022Raw materials$1,166 $1,517 Work in process6,203 7,565 Finished goods3,758 4,142 Total inventories$11,127 $13,224

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. During 2022, 70 million RSUs and stock options, as calculated on a weighted average basis for the year, were excluded from the computation of diluted earnings per share in the table above because they would have been anti-dilutive. These RSUs and options could potentially be included in the diluted earnings per share calculation in the future if the average market value of the common shares increases above the exercise price. For 2021 and 2020, all other periods presented, securities which would have been anti-dilutive were insignificant and have been excluded from the computation of diluted earnings per share. Financial StatementsNotes to Consolidated Financial Statements91 Financial StatementsNotes to Consolidated Financial Statements91 Financial StatementsNotes to Consolidated Financial Statements91 Notes to Consolidated Financial Statements 91 Table of Contents Table of Contents Note 6 : Other Financial Statement Details Accounts Receivable In 2022, we began selling certain of our accounts receivable on a non-recourse basis to third-party financial institutions. We record these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the Consolidated Statements of Cash Flows. Accounts receivable sold under non-recourse factoring arrangements were $665 million during 2022 and $0 during 2021. After the sale of our accounts receivable, we will collect payment from the customer and remit it to the third-party financial institution. Inventories (In Millions)Dec 31, 2022Dec 25, 2021Raw materials$1,517 $1,441 Work in process7,565 6,656 Finished goods4,142 2,679 Total inventories$13,224 $10,776

Oregon and Arizona bonds1: 1 These bonds may be remarketed or tendered on a periodic basis and will be classified within the current portion of long-term debt in the twelve months before remarketing or tendering. Senior Notes In 2023, we issued a total of $11.0 billion aggregate principal amount of senior notes. In 2022, we issued a total of $6.0 billion aggregate principal amount of senior notes, including our inaugural green bond issuance of $1.3 billion principal amount, and settled in cash $1.6 billion of our senior notes that matured in May 2022, $1.0 billion of our senior notes that matured in July 2022, and $1.9 billion of our senior notes that matured in December 2022. We also early cash settled $400 million of our senior notes due November 2023. 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. Oregon and Arizona Bonds In 2023, we remarketed $423 million aggregate principal amount of bonds issued by the Industrial Development Authority of the City of Chandler, Arizona (the Arizona bonds) and the State of Oregon Business Development Commission (the Oregon bonds). The bonds are unsecured general obligations in accordance with loan agreements we entered into with each of the Industrial Development Authority of the City of Chandler, Arizona (CIDA) and the State of Oregon Business Development Commission. The bonds mature in 2035 and 2040 and have 3.8% and 4.1% coupons. Both the Arizona and Oregon bonds are subject to optional tender starting in February 2028 and mandatory tender in June 2028, at which time we may remarket the bonds for a new term period. In 2022, we received proceeds of $600 million in the aggregate for the sale of bonds issued by CIDA. The bonds are our unsecured general obligations in accordance with the loan with the CIDA. The bonds mature in 2042 and 2052 and carry an interest rate of 5.0%. The bonds are subject to mandatory tender in September 2027, at which time we can re-market the bonds as either fixed-rate bonds for a specified period or as variable-rate bonds until another fixed-rate period is selected or until their final maturity date. We settled in cash $138 million of bonds issued by the Oregon Business Development Commission in March 2022. Revolving Credit Facilities In 2022, we entered into a $5.0 billion, 364-day variable-rate unsecured revolving credit facility that, if drawn, is expected to be used for general corporate purposes. In 2023, we extended the maturity date from November 2023 to March 2024. In 2022, we amended our $5.0 billion variable-rate revolving credit facility agreement that we entered into in 2021, extending the maturity date by one year to March 2027 and transitioning from LIBOR to term SOFR. In 2023, we extended the maturity date by one year to March 2028. The revolving credit facilities had no borrowings outstanding as of December 30, 2023 and December 31, 2022. Debt Maturities Our aggregate debt maturities, based on outstanding principal as of December 30, 2023, by year payable, are as follows: (In Millions)202420252026202720282029 and thereafterTotal$2,288 $3,750 $2,500 $3,826 $3,174 $34,747 $50,285 Financial StatementsNotes to Consolidated Financial Statements98 Financial StatementsNotes to Consolidated Financial Statements98 Financial StatementsNotes to Consolidated Financial Statements98 Notes to Consolidated Financial Statements 98 Table of Contents Table of Contents Note 14 : Fair Value Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis December 30, 2023December 31, 2022Fair Value Measured andRecorded at Reporting Date UsingTotalFair Value Measured andRecorded at Reporting Date UsingTotal(In Millions)Level 1Level 2Level 3Level 1Level 2Level 3AssetsCash equivalents:Corporate debt$— $769 $— $769 $—$856 $—$856 Financial institution instruments12,241 835 — 3,076 6,899 1,474 —8,373 Reverse repurchase agreements— 2,554 — 2,554 —1,301 —1,301 Short-term investments:Corporate debt— 6,951 — 6,951 —5,381 —5,381 Financial institution instruments133 4,215 — 4,248 196 4,729 —4,925 Government debt2— 6,756 — 6,756 48 6,840 —6,888 Other current assets:Derivative assets366 809 — 1,175 —1,264 —1,264 Loans receivable— — — — —53 —53 Marketable equity securities1,194 — — 1,194 1,341 — —1,341 Other long-term assets:Derivative assets— 21 — 21 —10 — 10 Total assets measured and recorded at fair value$3,834 $22,910 $— $26,744 $8,484 $21,908 $— $30,392 LiabilitiesOther accrued liabilities:Derivative liabilities$— $541 $99 $640 $111$485 $89$685 Other long-term liabilities:Derivative liabilities— 479 — 479 —699 —699 Total liabilities measured and recorded at fair value$— $1,020 $99 $1,119 $111$1,184 $89$1,384 Total

Senior Notes In 2022, we issued a total of $6.0 billion aggregate principal amount of senior notes, including our inaugural green bond issuance of $1.3 billion principal amount, and settled in cash $1.6 billion of our senior notes that matured in May 2022, $1.0 billion of our senior notes that matured in July 2022, and $1.9 billion of our senior notes that matured in December 2022. We also early cash settled $400 million of our senior notes due November 2023. In 2021, we issued a total of $5.0 billion aggregate principal amount of senior notes and 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. 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. Oregon and Arizona Bonds In 2022, we received proceeds of $600 million in the aggregate for the sale of bonds issued by the Industrial Development Authority of the City of Chandler, Arizona (CIDA). The bonds are our unsecured general obligations in accordance with the loan with the CIDA. The bonds mature in 2042 and 2052 and carry an interest rate of 5.0%. The bonds are subject to mandatory tender in September 2027, at which time we can re-market the bonds as either fixed-rate bonds for a specified period or as variable-rate bonds until another fixed-rate period is selected or until their final maturity date. Our other Oregon and Arizona bonds listed in the table above are also subject to periodic mandatory tender. We settled in cash $138 million of bonds issued by the Oregon Business Development Commission in March 2022. Revolving Credit Facilities In 2022, we entered into a $5.0 billion 364-day variable-rate unsecured revolving credit facility that, if drawn, is expected to be used for general corporate purposes. The revolving credit facility matures in November 2023. We also amended our $5.0 billion variable-rate revolving credit facility agreement that we entered into in 2021, extending the maturity date by one year to March 2027 and transitioning from LIBOR to term SOFR. The revolving credit facilities had no borrowings outstanding as of December 31, 2022. Debt Maturities Our aggregate debt maturities, excluding commercial paper, based on outstanding principal as of December 31, 2022, by year payable, are as follows: (In Millions)202320242025202620272028 and thereafterTotal$423 $2,288 $3,750 $1,000 $3,826 $27,998 $39,285 Financial StatementsNotes to Consolidated Financial Statements102 Financial StatementsNotes to Consolidated Financial Statements102 Financial StatementsNotes to Consolidated Financial Statements102 Notes to Consolidated Financial Statements 102 Table of Contents Table of Contents Note 14 : Fair Value Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis December 31, 2022December 25, 2021Fair Value Measured andRecorded at Reporting Date UsingTotalFair Value Measured andRecorded at Reporting Date UsingTotal(In Millions)Level 1Level 2Level 3Level 1Level 2Level 3AssetsCash equivalents:Corporate debt$— $856 $— $856 $—$65 $—$65 Financial institution instruments16,899 1,474 — 8,373 1,216 763 —1,979 Reverse repurchase agreements— 1,301 — 1,301 —1,595 —1,595 Short-term investments:Corporate debt— 5,381 — 5,381 —6,367 —6,367 Financial institution instruments1196 4,729 — 4,925 154 5,162 —5,316 Government debt248 6,840 — 6,888 50 12,693 —12,743 Other current assets:Derivative assets— 1,264 — 1,264 80 576 —656 Loans receivable3— 53 — 53 —152 —152 Marketable equity securities41,341 — — 1,341 1,854 317 —2,171 Other long-term assets:Derivative assets— 10 — 10 —772 7 779 Loans receivable3— — — — —57 —57 Total assets measured and recorded at fair value$8,484 $21,908 $— $30,392 $3,354 $28,519 $7 $31,880 LiabilitiesOther accrued liabilities:Derivative liabilities$111 $485 $89 $685 $4$516 $—$520 Other long-term liabilities:Derivative liabilities— 699 — 699 —9 —9 Total liabilities measured and recorded at fair value$111 $1,184 $89 $1,384 $4$525 $—$529

Note 13 : Borrowings Short-Term Debt As of December 30, 2023, short-term debt was $2.3 billion, composed of the current portion of long-term debt. As of December 31, 2022, short-term debt was $4.4 billion, composed of $423 million of the current portion of long-term debt and $3.9 billion of commercial paper. 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. As of December 30, 2023 we had no commercial paper outstanding ($3.9 billion as of December 31, 2022). Financial StatementsNotes to Consolidated Financial Statements96 Financial StatementsNotes to Consolidated Financial Statements96 Financial StatementsNotes to Consolidated Financial Statements96 Notes to Consolidated Financial Statements 96 Table of Contents Table of Contents Long-Term Debt Dec 30, 2023Dec 31, 2022(In Millions)Effective Interest RateAmountAmountFixed-rate senior notes:2.88%, due May 20242.32%$1,250 $1,250 2.70%, due June 20242.14%600 600 3.40%, due March 20253.45%1,500 1,500 3.70%, due July 20257.29%2,250 2,250 4.88%, due February 20264.96%1,500 — 2.60%, due May 20265.79%1,000 1,000 3.75%, due March 20273.79%1,000 1,000 3.15%, due May 20276.35%1,000 1,000 3.75%, due August 20273.82%1,250 1,250 4.88%, due February 20284.94%1,750 — 1.60%, due August 20281.67%1,000 1,000 4.00%, due August 20294.06%850 850 2.45%, due November 20292.39%2,000 2,000 5.13%, due February 20305.17%1,250 — 3.90%, due March 20303.93%1,500 1,500 2.00%, due August 20312.03%1,250 1,250 4.15%, due August 20324.18%1,250 1,250 4.00%, due December 20327.21%750 750 5.20%, due February 20335.25%2,250 — 4.60%, due March 20404.61%750 750 2.80%, due August 20412.81%750 750 4.80%, due October 20417.16%802 802 4.25%, due December 20427.45%567 567 5.63%, due February 20435.64%1,000 — 4.90%, due July 20457.29%772 772 4.10%, due May 20466.58%1,250 1,250 4.10%, due May 20476.53%1,000 1,000 4.10%, due August 20476.09%640 640 3.73%, due December 2047 6.99%1,967 1,967 3.25%, due November 20493.20%2,000 2,000 4.75%, due March 20504.74%2,250 2,250 3.05%, due August 20513.06%1,250 1,250 4.90%, due August 20524.90%1,750 1,750 5.70%, due February 20535.71%2,000 — 3.10%, due February 20603.11%1,000 1,000 4.95%, due March 20604.99%1,000 1,000 3.20%, due August 20613.21%750 750 5.05%, due August 20625.05%900 900 5.90%, due February 20635.91%1,250 —

Note 13 : Borrowings Short-Term Debt As of December 31, 2022, short-term debt was $4.4 billion, composed of $423 million of the current portion of long-term debt and $3.9 billion of commercial paper. As of December 25, 2021, short-term debt was $4.6 billion, primarily composed of our current portion of long-term debt. 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. As of December 31, 2022 and December 25, 2021, we had $3.9 billion and $0 commercial paper outstanding, respectively, with maturities generally less than six months. The weighted-average interest rate of the commercial paper was 4.39% as of December 31, 2022. Financial StatementsNotes to Consolidated Financial Statements100 Financial StatementsNotes to Consolidated Financial Statements100 Financial StatementsNotes to Consolidated Financial Statements100 Notes to Consolidated Financial Statements 100 Table of Contents Table of Contents Long-Term Debt Dec 31, 2022Dec 25, 2021(In Millions)Effective Interest RateAmountAmountFloating-rate senior note:Three-month LIBOR plus 0.35%, due May 2022—%$— $800 Fixed-rate senior notes:2.35%, due May 2022—%— 750 3.10%, due July 2022—%— 1,000 4.00%, due December 2022—%— 398 2.70%, due December 2022—%— 1,500 4.10%, due November 2023—%— 400 2.88%, due May 20242.34%1,250 1,250 2.70%, due June 20242.14%600 600 3.40%, due March 20253.44%1,500 1,500 3.70%, due July 20253.83%2,250 2,250 2.60%, due May 20262.25%1,000 1,000 3.75%, due March 20273.78%1,000 1,000 3.15%, due May 20272.84%1,000 1,000 3.75%, due August 20273.80%1,250 — 1.60%, due August 20281.67%1,000 1,000 4.00%, due August 20294.05%850 — 2.45%, due November 20292.38%2,000 2,000 3.90%, due March 20303.92%1,500 1,500 2.00%, due August 20312.02%1,250 1,250 4.15%, due August 20324.17%1,250 — 4.00%, due December 20322.20%750 750 4.60%, due March 20404.59%750 750 2.80%, due August 20412.81%750 750 4.80%, due October 20413.70%802 802 4.25%, due December 20422.32%567 567 4.90%, due July 20453.80%772 772 4.10%, due May 20463.03%1,250 1,250 4.10%, due May 20473.00%1,000 1,000 4.10%, due August 20472.54%640 640 3.73%, due December 2047 3.31%1,967 1,967 3.25%, due November 20493.19%2,000 2,000 4.75%, due March 20504.73%2,250 2,250 3.05%, due August 20513.06%1,250 1,250 4.90%, due August 20524.88%1,750 — 3.10%, due February 20603.10%1,000 1,000 4.95%, due March 20604.98%1,000 1,000 3.20%, due August 20613.20%750 750 5.05%, due August 20625.03%900 —

Foreign derived intangible income benefit Restructuring of certain non-US subsidiaries Share-based compensation Non-deductibility of European Commission fine Our effective tax rate decreased in 2023 compared to 2022, primarily driven by our R&D tax credits, which provide a tax benefit based on our eligible R&D spending and are not dependent on lower income before taxes, and a higher proportion of our income being taxed in non-US jurisdictions. Our effective tax rate decreased in 2022 compared to 2021, primarily driven by a higher proportion of our income being taxed in non-US jurisdictions and a change in tax law from 2017 Tax Reform related to the capitalization of R&D expenses that went into effect in January 2022. 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. In 2023 the tax benefit specifically attributable to tax holidays was $129 million ($220 million for 2022 and $187 million for 2021) with a $0.03 impact on diluted earnings per share ($0.05 for 2022 and $0.05 for 2021). Financial StatementsNotes to Consolidated Financial Statements91 Financial StatementsNotes to Consolidated Financial Statements91 Financial StatementsNotes to Consolidated Financial Statements91 Notes to Consolidated Financial Statements 91 Table of Contents Table of Contents Deferred and Current Income Taxes 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: (In Millions)Dec 30, 2023Dec 31, 2022Deferred tax assets:R&D expenditures capitalization$7,726 $5,067 State credits and net operating losses2,624 2,259 Inventory1,430 1,788 Accrued compensation and other benefits931 1,031 Share-based compensation586 557 Litigation charge308 470 Other, net926 709 Gross deferred tax assets14,531 11,881 Valuation allowance(3,047)(2,586)Total deferred tax assets11,484 9,295 Deferred tax liabilities:Property, plant, and equipment(5,156)(4,776)Licenses and intangibles(494)(386)Unrealized gains on investments and derivatives(358)(415)Other, net(203)(470)Total deferred tax liabilities(6,211)(6,047)Net deferred tax assets (liabilities)$5,273 $3,248 Reported as:Deferred tax assets5,459 3,450 Deferred tax liabilities(186)(202)Net deferred tax assets (liabilities)$5,273 $3,248

Our effective tax rate decreased in 2022 compared to 2021, primarily driven by a higher proportion of our income being taxed in non-US jurisdictions and a change in tax law from 2017 Tax Reform related to the capitalization of R&D expenses that went into effect in January 2022. 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 divestiture of our NAND memory business. 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. In 2022, the tax benefit specifically attributable to tax holidays was $220 million ($187 million for 2021 and $134 million for 2020) with a $0.05 impact on diluted earnings per share ($0.05 for 2021 and $0.03 for 2020). Financial StatementsNotes to Consolidated Financial Statements94 Financial StatementsNotes to Consolidated Financial Statements94 Financial StatementsNotes to Consolidated Financial Statements94 Notes to Consolidated Financial Statements 94 Table of Contents Table of Contents Deferred and Current Income Taxes 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: (In Millions)Dec 31, 2022Dec 25, 2021Deferred tax assets:R&D expenditures capitalization$5,067 $519 State credits and net operating losses2,259 2,010 Inventory1,788 914 Accrued compensation and other benefits1,031 1,019 Share-based compensation557 477 Litigation charge470 467 Other, net709 819 Gross deferred tax assets11,881 6,225 Valuation allowance(2,586)(2,259)Total deferred tax assets9,295 3,966 Deferred tax liabilities:Property, plant and equipment(4,776)(4,213)Licenses and intangibles(386)(486)Unrealized gains on investments and derivatives(415)(819)Other, net(470)(241)Total deferred tax liabilities(6,047)(5,759)Net deferred tax assets (liabilities)$3,248 $(1,793)Reported as:Deferred tax assets3,450 874 Deferred tax liabilities(202)(2,667)Net deferred tax assets (liabilities)$3,248 $(1,793)

Marketable equity securities1 Non-marketable equity securities Equity method investments 1 Over 90% of our marketable equity securities are subject to trading-volume or market-based restrictions, which limit the number of shares we may sell in a specified period of time, impacting our ability to liquidate these investments. The trading volume restrictions generally apply for as long as we own more than 1% of the outstanding shares. Market-based restrictions result from the rules of the respective exchange. The components of gains (losses) on equity investments, net for each period were as follows: Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Ongoing mark-to-market adjustments on marketable equity securities$(36)$(787)$(130)Observable price adjustments on non-marketable equity securities17 299 750 Impairment charges(214)(190)(154)Sale of equity investments and other 1273 4,946 2,263 Total gains (losses) on equity investments, net$40 $4,268 $2,729 Ongoing mark-to-market adjustments on marketable equity securities Sale of equity investments and other 1 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 equity method investments, and our share of equity method investee gains (losses) and distributions. As of December 30, 2023, the cumulative amount of impairments for equity securities without readily determinable fair value was $1.1 billion ($955 million as of December 31, 2022) and upward observable price adjustments were $1.4 billion ($1.4 billion as of December 31, 2022). Net unrealized gains and losses for our marketable and non-marketable equity securities during each period still held at the reporting date were as follows: (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Net gains (losses) recognized during the period on equity securities$19 $(314)$1,210 Less: Net (gains) losses recognized during the period on equity securities sold during the period(5)1 (259)Net unrealized gains (losses) recognized during the period on equity securities still held at the reporting date$14 $(313)$951 Net gains (losses) recognized during the period on equity securities McAfee Corp. During 2022, the sale of McAfee's consumer business was completed and we received $4.6 billion in cash for the sale of our remaining share of McAfee, recognizing a $4.6 billion gain in sale of equity investments and other. In 2021, we recognized 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, and recognized $228 million related to the partial sale of our investment in McAfee. Beijing Unisoc Technology Ltd. We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. During 2021, we recognized $471 million in observable price adjustments in our investment in Unisoc and as of December 30, 2023, the net book value of the investment was $1.1 billion ($1.1 billion as of December 31, 2022). Financial StatementsNotes to Consolidated Financial Statements94 Financial StatementsNotes to Consolidated Financial Statements94 Financial StatementsNotes to Consolidated Financial Statements94 Notes to Consolidated Financial Statements 94 Table of Contents Table of Contents Note 10 : Divestitures NAND Memory Business On December 29, 2021, we closed the first phase of our agreement with SK hynix Inc. (SK hynix) to divest our NAND memory business for $9.0 billion in cash. Our NAND memory business includes our NAND memory technology and manufacturing business (the NAND OpCo Business), of which we deconsolidated our ongoing interests as part of the sale. The transaction will be completed in two closings and upon the first closing in the first quarter of 2022, SK hynix paid $7.0 billion of consideration and we recognized a pre-tax gain of $1.0 billion within interest and other, net, and tax expense of $495 million. We recorded a receivable in other long-term assets for the remaining proceeds we will receive upon the second closing of the transaction, expected to be no earlier than March 2025. The receivable outstanding was $2.0 billion as of December 30, 2023 and $1.9 billion December 31, 2022. The wafer manufacturing and sale agreement includes incentives and penalties that are contingent on the cost of operation and output of the NAND OpCo Business. These incentives and penalties present a maximum exposure of up to $500 million annually, and $1.5 billion in the aggregate. We are currently in negotiations with SK hynix to update the operating plan of the NAND OpCo Business in light of the current business environment and projections, which may impact the metrics associated with the incentives and penalties and our expectations of the performance of the NAND OpCo Business against those metrics. We were reimbursed for costs that we incurred on behalf of the NAND OpCo Business for corporate function services, which include human resources, information technology, finance, supply chain, and other compliance requirements. Reimbursed expenses approximated $145 million in 2022 and $125 million in 2023. We recorded a receivable due from the NAND OpCo Business, a deconsolidated entity, of $145 million within other current assets as of December 30, 2023 ($133 million recorded as of December 31, 2022). We were reimbursed for costs that we incurred on behalf of the NAND OpCo Business for corporate function services, which include human resources, information technology, finance, supply chain, and other compliance requirements. Reimbursed expenses approximated $145 million in 2022 and $125 million in 2023. We recorded a receivable due from the NAND OpCo Business, a deconsolidated entity, of $145 million within other current assets Note 11 : Goodwill (In Millions)Dec 31, 2022AcquisitionsTransfersOtherDec 30, 2023Client Computing$4,254 $— $495 $— $4,749 Data Center and AI9,013 — (292)— 8,721 Network and Edge2,809 — — — 2,809 Mobileye10,919 — — — 10,919 Accelerated Computing Systems and Graphics596 — (596)— — All other— — 393 — 393 Total$27,591 $— $— $— $27,591 (In Millions)Dec 25, 2021AcquisitionsTransfersOtherDec 31, 2022Client Computing$4,237 $17 $— $— $4,254 Data Center and AI8,595 418 — — 9,013 Network and Edge2,774 35 — — 2,809 Mobileye10,928 —— (9)10,919 Accelerated Computing Systems and Graphics429 167— — 596 All other— — — — — Total$26,963 $637 $— $(9)$27,591 As described in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements, we integrated AXG into CCG and DCAI in the first quarter of 2023. As a result, of the total $596 million of goodwill previously allocated to AXG, we reallocated $495 million to CCG and $101 million to DCAI based on the relative fair value of our updated operating segments. We performed a quantitative impairment assessment for each of our reporting units immediately before and after our business reorganization, concluding that goodwill was not impaired. We also reallocated $393 million of goodwill from DCAI to other businesses during 2023. During the fourth quarter of 2023 and 2022, we completed our annual impairment assessments and concluded that goodwill was not impaired. 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. The accumulated impairment loss as of December 30, 2023 was $957 million: $365 million associated with CCG, $275 million associated with DCAI, $79 million associated with NEX, and the remainder associated with non-reportable segments. Financial StatementsNotes to Consolidated Financial Statements95 Financial StatementsNotes to Consolidated Financial Statements95 Financial StatementsNotes to Consolidated Financial Statements95 Notes to Consolidated Financial Statements 95 Table of Contents Table of Contents In the first quarter of 2022, we retrospectively adjusted all prior-period amounts in our goodwill footnote to reflect changes to our operating segments. We reallocated goodwill among our affected reporting units based on the relative fair value of our new operating segments. We performed a quantitative impairment assessment for each of our reporting units immediately before and after our business reorganization, concluding that goodwill was not impaired. In the first quarter of 2022, we retrospectively adjusted all prior-period amounts in our goodwill footnote to reflect changes to our operating segments. We reallocated goodwill among our affected reporting units based on the relative fair value of our new operating segments. We performed a quantitative impairment assessment for each of our reporting units immediately before and after our business reorganization, concluding that goodwill was not impaired. Note 12 : Identified Intangible Assets December 30, 2023December 31, 2022(In Millions)Gross AssetsAccumulated AmortizationNetGross AssetsAccumulated AmortizationNetDeveloped technology$10,520 $(7,996)$2,524 $10,964 $(7,216)$3,748 Customer relationships and brands1,986 (1,286)700 1,986 (1,114)872 Licensed technology and patents3,088 (1,728)1,360 3,219 (1,821)1,398 Other non-amortizing intangibles5 — 5 — — — Total identified intangible assets$15,599 $(11,010)$4,589 $16,169 $(10,151)$6,018 During 2022 and 2023, we entered into and/or renewed several licensed technology arrangements totaling $634 million and $309 million respectively, which are subject to amortization. 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)LocationDec 30, 2023Dec 31, 2022Dec 25, 2021Weighted Average Useful Life1Developed technologyCost of sales$1,235 $1,341 $1,283 9.1 yearsCustomer relationships and brandsMarketing, general, and administrative172 185 209 11.6 yearsLicensed technology and patentsCost of sales348 381 347 12.2 yearsTotal amortization expenses$1,755 $1,907 $1,839

Marketable equity securities1 Non-marketable equity securities Equity method investments 1 Over 90% of our marketable equity securities are subject to trading-volume or market-based restrictions, which limit the number of shares we may sell in a specified period of time, impacting our ability to liquidate these investments. The trading volume restrictions generally apply for as long as we own more than 1% of the outstanding shares. Market-based restrictions result from the rules of the respective exchange. The components of gains (losses) on equity investments, net for each period were as follows: Years Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Ongoing mark-to-market adjustments on marketable equity securities$(787)$(130)$(133)Observable price adjustments on non-marketable equity securities299 750 176 Impairment charges(190)(154)(303)Sale of equity investments and other 14,946 2,263 2,164 Total gains (losses) on equity investments, net$4,268 $2,729 $1,904 Ongoing mark-to-market adjustments on marketable equity securities Sale of equity investments and other 1 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 equity method investments, and our share of equity method investee gains (losses) and distributions. In 2022, we recognized impairments of $190 million on non-marketable equity securities ($154 million in 2021 and $290 million in 2020). As of December 31, 2022, the cumulative amount of impairments for equity securities without readily determinable fair value was $955 million ($916 million as of December 25, 2021) and upward observable price adjustments were $1.4 billion ($1.1 billion as of December 25, 2021). Net unrealized gains and losses for our marketable and non-marketable equity securities during each period were as follows: (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Net unrealized gains (losses) recognized during the period on equity securities$(314)$1,210 $1,679 Less: Net (gains) losses recognized during the period on equity securities sold during the period1 (259)(254)Net unrealized gains (losses) recognized during the period on equity securities still held at the reporting date$(313)$951 $1,425 McAfee Corp. McAfee Corp. (McAfee) completed its IPO offering in October 2020. Due to our 41% ownership and significant influence as of December 25, 2021, we accounted for our investment in McAfee as an equity method investment. We had no accounting carrying value as of December 25, 2021. During 2022, the sale of McAfee's consumer business was completed and we received $4.6 billion in cash for the sale of our remaining share of McAfee, recognizing a $4.6 billion gain in sale of equity investments and other. In 2021, we recognized 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, and recognized $228 million related to the partial sale of our investment in McAfee. We recognized McAfee dividends of $126 million in 2020. Beijing Unisoc Technology Ltd. We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. During 2021, we recognized $471 million in observable price adjustments in our investment in Unisoc and as of December 31, 2022, the net book value of the investment was $1.1 billion ($1.1 billion as of December 25, 2021). Note 10 : Acquisitions and Divestitures Acquisitions We completed eight acquisitions in 2022 and four acquisitions in 2021, all of which qualified as business combinations. The consideration for the acquisitions in 2022 and 2021 primarily consisted of cash and was substantially all 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" within the Notes to Consolidated Financial Statements. Financial StatementsNotes to Consolidated Financial Statements97 Financial StatementsNotes to Consolidated Financial Statements97 Financial StatementsNotes to Consolidated Financial Statements97 Notes to Consolidated Financial Statements 97 Table of Contents Table of Contents Acquisition of Tower Semiconductor During the first quarter of 2022, we entered into a definitive agreement to acquire Tower Semiconductor Ltd. (Tower) in a cash-for-stock transaction. Tower is a leading foundry for analog semiconductor solutions. The acquisition is expected to advance our IDM 2.0 strategy by accelerating our global end-to-end systems foundry business. Upon completion of the acquisition, each issued and outstanding ordinary share of Tower will be converted into the right to receive $53 per share in cash, representing a total enterprise value of approximately $5.4 billion as of the agreement date. While we continue to work to close within the first quarter of 2023, the transaction may close in the first half of 2023, subject to certain regulatory approvals and customary closing conditions. If the agreement is terminated under certain circumstances involving the failure to obtain required regulatory approvals, we will be obligated to pay Tower a termination fee of $353 million. Tower will be included in our IFS 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. 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 recognized a pre-tax gain of $1.0 billion within interest and other, net, and tax expense of $495 million. Based on our ongoing obligation under the NAND wafer manufacturing and sale agreement, $583 million of the first closing consideration was deferred and will be recognized between the 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 are VIEs 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 fully deconsolidated our ongoing interests in the NAND OpCo Business, and recorded a receivable for the remaining proceeds of $1.9 billion in other long-term assets, which remains outstanding as of December 31, 2022. The carrying amounts of the major classes of NAND assets as of the first closing date included the following: (In Millions)Dec 29, 2021Inventories$941 Property, plant and equipment, net6,018 Total assets$6,959 The wafer manufacturing and sale agreement includes incentives and penalties that are contingent on the cost of operation and output of the NAND OpCo Business. These incentives and penalties present a maximum exposure of up to $500 million annually, and $1.5 billion in the aggregate. We are currently in negotiations with SK hynix to update the operating plan of the NAND OpCo Business in light of the current business environment and projections, which may impact the metrics associated with the incentives and penalties and our expectations of the performance of the NAND OpCo Business against those metrics. Our transactions with the NAND OpCo Business between the first and second closings are considered related party transactions due to our equity interest and the wafer manufacturing and sales agreement. Related party transactions include certain assets that transferred at first closing between Intel and the NAND OpCo Business, or costs that we incurred on behalf of the NAND OpCo Business, for which we are entitled to be reimbursed, including approximately $35 million per quarter in 2022 for corporate function services, such as human resources, information technology, finance, supply chain, and other compliance requirements associated with being wholly owned subsidiaries. As of December 31, 2022, we have a receivable due to Intel of $133 million recorded within other current assets on our Consolidated Balance Sheets. 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. Financial StatementsNotes to Consolidated Financial Statements98 Financial StatementsNotes to Consolidated Financial Statements98 Financial StatementsNotes to Consolidated Financial Statements98 Notes to Consolidated Financial Statements 98 Table of Contents Table of Contents Note 11 : Goodwill (In Millions)Dec 25, 2021AcquisitionsOtherDec 31, 2022Client Computing$4,237 $17 $— $4,254 Data Center and AI8,595 418 — 9,013 Network and Edge2,774 35 — 2,809 Mobileye10,928 — (9)10,919 Accelerated Computing Systems and Graphics429 167 — 596 All other— — — — Total$26,963 $637 $(9)$27,591 (In Millions)Dec 26, 2020AcquisitionsOtherDec 25, 2021Client Computing$4,164 $73 $— $4,237 Data Center and AI8,476 85 34 8,595 Network and Edge2,774 — — 2,774 Mobileye10,928 —— 10,928 Accelerated Computing Systems and Graphics391 38— 429 All other238 — (238)— Total$26,971 $196 $(204)$26,963 As described in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements, we modified our segment reporting in the first quarter of 2022 to align to our previously announced business reorganization, and have retrospectively adjusted all prior-period amounts in our goodwill footnote to reflect the changes in our operating segments. We reallocated goodwill among our affected reporting units based on the relative fair value of our new operating segments. We performed a quantitative impairment assessment for each of our reporting units immediately before and after our business reorganization, concluding that goodwill was not impaired. Goodwill reallocated was as follows: (In Millions)Dec 25, 2021Transfers OutTransfers InDec 25, 2021Client Computing$4,433 $(275)$79 $4,237 Data Center Group7,355 (7,355)— — Data Center and AI— — 8,595 8,595 Internet of Things Group1,591 (1,591)— — Network and Edge— — 2,774 2,774 Mobileye10,928 — — 10,928 Accelerated Computing Systems and Graphics— — 429 429 Programmable Solutions Group2,656 (2,656)— — Total$26,963 $(11,877)$11,877 $26,963

Form 10.9† 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 10.11†† Patent Cross License Agreement between NVIDIA Corporation and Intel Corporation, dated January 10, 2011 Purchase and Contribution Agreement, dated as of August 22, 2022, by and among Intel Corporation, Arizona Fab HoldCo Inc., Foundry JV Holdco LLC, and Arizona Fab LLC Amended and Restated Limited Liability Company Agreement of Arizona Fab LLC by and between Arizona Fab HoldCo Inc. and Foundry JV Holdco LLC 10.14† Offer Letter between Intel Corporation and Patrick Gelsinger, dated January 13, 2021 10.15† Offer Letter between Intel Corporation and David A. Zinsner dated January 6, 2022 10.16† Offer Letter between Intel Corporation and Christoph Schell dated February 11, 2022 X 10.17† Offer Letter between Intel Corporation and Sandra Rivera dated October 2, 2023 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 Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350 97.1† Intel Corporation Compensation Recoupment Policy, effective October 2, 2023 X Supplement to Present Required Information in Searchable Format † 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. ^ Schedules and certain portions of this exhibit have been omitted pursuant to Item 601(a)(5)-(6) and Item 601(b)(10)(iv) of Regulation S-K. Supplemental Details120 Supplemental Details120 Supplemental Details120 120 Table of Contents Table of Contents Form 10-K Cross-Reference Index Form 10-K Cross-Reference Index Item NumberItem Part IItem 1.Business:General development of business Pages 3-9, 20Description of businessPages 3-36, 63-64, 68, 85-86Available informationPage 2Item 1A.Risk FactorsPages 48-62Item 1B.Unresolved Staff CommentsNoneItem 1C.CybersecurityPage 65-66Item 2.PropertiesPages 14, 66Item 3.Legal ProceedingsPages 108-111Item 4.Mine Safety DisclosuresNonePart IIItem 5.Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity SecuritiesPages 11, 66-67Item 6.[Reserved]Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations:Liquidity and capital resourcesPages 5-6, 42-44, 45-47Results of operationsPages 5-6, 21-42, 45-47Critical accounting estimatesPages 44, 79-85Item 7A.Quantitative and Qualitative Disclosures About Market RiskPages 64-65Item 8.Financial Statements and Supplementary Data Pages 70-114Item 9.Changes in and Disagreements with Accountants on Accounting and Financial DisclosureNoneItem 9A.Controls and ProceduresPage 115Item 9B.Other InformationDisclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934Page 69Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent InspectionsNonePart IIIItem 10.Directors, Executive Officers, and Corporate GovernancePage 68 (a)Item 11.Executive Compensation(a)Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters(a)Item 13.Certain Relationships and Related Transactions, and Director Independence(a)Item 14.Principal Accountant Fees and Services(a)Part IVItem 15.Exhibits and Financial Statement SchedulesPages 70-114, 116-120Item 16.Form 10-K SummaryNoneSignaturesPage 122 Part I Pages 3-9, 20 Pages 3-36, 63-64, 68, 85-86 Page 2 Pages 48-62 None Item 1C. Cybersecurity Page 65-66 Pages 14, 66 Pages 108-111 None Part II Item 5. Pages 11, 66-67 Pages 5-6, 42-44, 45-47 Pages 5-6, 21-42, 45-47 Pages 44, 79-85 Pages 64-65 Pages 70-114 None Page 115 Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934 Page 69 None Page 68 (a) (a) (a) (a) (a) Pages 70-114, 116-120 None Page 122 (a) Incorporated by reference to the applicable section of the 2024 Proxy Statement. Supplemental Details121 Supplemental Details121 Supplemental Details121 121 Table of Contents Table of Contents Signatures 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 CORPORATIONRegistrantBy:/s/ PATRICK P. GELSINGERPatrick P. GelsingerChief Executive Officer, Director, and Principal Executive OfficerJanuary 25, 2024 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/s/ DAVID ZINSNERPatrick P. GelsingerDavid ZinsnerChief Executive Officer, Director, and Principal Executive OfficerExecutive Vice President, Chief Financial Officer, and PrincipalJanuary 25, 2024Financial OfficerJanuary 25, 2024 /s/ SCOTT GAWELScott GawelCorporate Vice President, Chief Accounting Officer, andPrincipal Accounting OfficerJanuary 25, 2024/s/ JAMES J. GOETZ/s/ DR. ANDREA J. GOLDSMITHJames J. GoetzDr. Andrea J. GoldsmithDirectorDirectorJanuary 25, 2024January 25, 2024/s/ ALYSSA HENRY /s/ DR. OMAR ISHRAKAlyssa HenryDr. Omar IshrakDirectorDirectorJanuary 25, 2024January 25, 2024/s/ DR. TSU-JAE KING LIU/s/ DR. RISA LAVIZZO-MOUREYDr. Tsu-Jae King LiuDr. Risa Lavizzo-MoureyDirectorDirectorJanuary 25, 2024January 25, 2024/s/ BARBARA G. NOVICK/s/ GREGORY D. SMITHBarbara G. NovickGregory D. SmithDirectorDirectorJanuary 25, 2024January 25, 2024/s/ LIP-BU TAN/s/ DION J. WEISLERLip-Bu TanDion J. WeislerDirectorDirectorJanuary 25, 2024January 25, 2024/s/ FRANK D. YEARYFrank D. YearyChair of the Board and DirectorJanuary 25, 2024 Corporate Vice President, Chief Accounting Officer, and /s/ BARBARA G. NOVICK /s/ LIP-BU TAN /s/ DION J. WEISLER Supplemental Details122 Supplemental Details122 Supplemental Details122 122

Form 10.7† Intel Corporation 2006 Deferral Plan for Outside Directors, effective November 15, 2006 10.8† Form of Indemnification Agreement with Directors and Executive Officers 10.9† 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 10.11†† Patent Cross License Agreement between NVIDIA Corporation and Intel Corporation, dated January 10, 2011 Purchase and Contribution Agreement, dated as of August 22, 2022, by and among Intel Corporation, Arizona Fab HoldCo Inc., Foundry JV Holdco LLC, and Arizona Fab LLC Amended and Restated Limited Liability Company Agreement of Arizona Fab LLC by and between Arizona Fab HoldCo Inc. and Foundry JV Holdco LLC 10.14† Offer Letter between Intel Corporation and Sandra Rivera, dated June 21, 2021 10.15† Offer Letter between Intel Corporation and Patrick Gelsinger, dated January 13, 2021 10.16† Offer Letter between Intel Corporation and David A. Zinsner dated January 6, 2022 10.17† Lease Agreement between Intel Corporation and Steven R. Rodgers^ 10.18† 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 † 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. ^ Schedules and certain portions of this exhibit have been omitted pursuant to Item 601(a)(5)-(6) and Item 601(b)(10(iv) of Regulation S-K. Supplemental Details123 Supplemental Details123 Supplemental Details123 123 Table of Contents Table of Contents Form 10-K Cross-Reference Index Form 10-K Cross-Reference Index Item NumberItem Part IItem 1.Business:General development of business Pages 3-9, 19Description of businessPages 3-38, 51-52, 70, 88-86Available informationPage 2Item 1A.Risk FactorsPages 53-67Item 1B.Unresolved Staff CommentsNot applicableItem 2.PropertiesPages 14, 67Item 3.Legal ProceedingsPages 109-114Item 4.Mine Safety DisclosuresNot applicablePart IIItem 5.Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity SecuritiesPages 11, 68-69Item 6.[Reserved]Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations:Liquidity and capital resourcesPages 5-6, 44-47, 47-51Results of operationsPages 5-6, 19-44, 47-51Critical accounting estimatesPages 47, 81-87Item 7A.Quantitative and Qualitative Disclosures About Market RiskPage 52Item 8.Financial Statements and Supplementary Data Pages 72-117Item 9.Changes in and Disagreements with Accountants on Accounting and Financial DisclosureNot applicableItem 9A.Controls and ProceduresPage 118Item 9B.Other InformationDisclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934Page 71Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent InspectionsNot applicablePart IIIItem 10.Directors, Executive Officers, and Corporate GovernancePage 70, (a)Item 11.Executive Compensation(b)Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters(c)Item 13.Certain Relationships and Related Transactions, and Director Independence(d)Item 14.Principal Accountant Fees and Services(e)Part IVItem 15.Exhibits and Financial Statement SchedulesPages 72-117, 119-123Item 16.Form 10-K SummaryNot applicableSignaturesPage 125 Part I Pages 3-9, 19 Pages 3-38, 51-52, 70, 88-86 Page 2 Pages 53-67 Pages 14, 67 Pages 109-114 Part II Item 5. Pages 11, 68-69 Pages 5-6, 44-47, 47-51 Pages 5-6, 19-44, 47-51 Pages 47, 81-87 Page 52 Pages 72-117 Page 118 Page 71 Page 70, (a) Pages 72-117, 119-123 Page 125 (a) Incorporated by reference to "Director Nominees," "Director Nomination Process," "Board Committees," "Audit & Finance Committee," "Code of Conduct," "2024 Stockholder Proposals or Nominations," and "Delinquent Section 16(a) Reports" (if applicable) in the 2023 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 "Risk Oversight," "Director Compensation," "Compensation Discussion and Analysis," "Compensation Committee Report," "Executive Compensation Tables" "CEO Pay Ratio," and "Pay Versus Performance" in the 2023 Proxy Statement. (c) Incorporated by reference to "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in the 2023 Proxy Statement. (d) Incorporated by reference to "Director Independence and Transactions Considered in Independence Determinations" and "Certain Relationships and Related Transactions" in the 2023 Proxy Statement. (e) Incorporated by reference to "2022 and 2021 EY Fees," "Report of the Audit & Finance Committee," and "Pre-Approval Policies" in the 2023 Proxy Statement. Supplemental Details124 Supplemental Details124 Supplemental Details124 124 Table of Contents Table of Contents Signatures 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 CORPORATIONRegistrantBy:/s/ PATRICK P. GELSINGERPatrick P. GelsingerChief Executive Officer, Director, and Principal Executive OfficerJanuary 26, 2023 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/s/ DAVID ZINSNERPatrick P. GelsingerDavid ZinsnerChief Executive Officer, Director, and Principal Executive OfficerExecutive Vice President, Chief Financial Officer, and PrincipalFinancial OfficerJanuary 26, 2023January 26, 2023 /s/ SCOTT GAWELScott GawelCorporate Vice President, Chief Accounting Officer and Principal Accounting OfficerJanuary 26, 2023/s/ JAMES J. GOETZ/s/ DR. TSU-JAE KING LIUJames J. GoetzDr. Tsu-Jae King LiuDirectorDirectorJanuary 26, 2023January 26, 2023/s/ DR. ANDREA J. GOLDSMITH/s/ GREGORY D. SMITHDr. Andrea J. GoldsmithGregory D. SmithDirectorDirectorJanuary 26, 2023January 26, 2023/s/ ALYSSA HENRY /s/ LIP-BU TANAlyssa HenryLip-Bu TanDirectorDirectorJanuary 26, 2023January 26, 2023/s/ DR. OMAR ISHRAK/s/ DION J. WEISLERDr. Omar IshrakDion J. WeislerDirectorDirectorJanuary 26, 2023January 26, 2023/s/ DR. RISA LAVIZZO-MOUREY/s/ FRANK D. YEARYDr. Risa Lavizzo-MoureyFrank D. YearyDirectorChair of the Board and DirectorJanuary 26, 2023January 26, 2023/s/ BARBARA G NOVICKBarbara G. NovickDirectorJanuary 26, 2023 Supplemental Details125 Supplemental Details125 Supplemental Details125 125

The total notional amount of outstanding pay-variable, receive-fixed interest rate swaps was $12.0 billion as of December 30, 2023 and December 31, 2022. Fair Value of Derivative Instruments in the Consolidated Balance Sheets December 30, 2023December 31, 2022(In Millions)Assets1Liabilities2Assets1Liabilities2Derivatives designated as hedging instruments:Foreign currency contracts3$255 $142 $142 $290 Interest rate contracts— 578 — 777 Total derivatives designated as hedging instruments255 720 142 1,067 Derivatives not designated as hedging instruments:Foreign currency contracts3314 363 866 194 Interest rate contracts261 36 266 12 Equity contracts366 — — 111 Total derivatives not designated as hedging instruments941 399 1,132 317 Total derivatives$1,196 $1,119 $1,274 $1,384 Assets1

During 2022 and 2021, 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 31, 2022, and $12.0 billion as of December 25, 2021. Fair Value of Derivative Instruments in the Consolidated Balance Sheets December 31, 2022December 25, 2021(In Millions)Assets1Liabilities2Assets1Liabilities2Derivatives designated as hedging instruments:Foreign currency contracts3$142 $290 $80 $163 Interest rate contracts— 777 774 — Total derivatives designated as hedging instruments142 1,067 854 163 Derivatives not designated as hedging instruments:Foreign currency contracts3866 194 475 297 Interest rate contracts266 12 26 65 Equity contracts— 111 80 4 Total derivatives not designated as hedging instruments1,132 317 581 366 Total derivatives$1,274 $1,384 $1,435 $529 Assets1

We estimate that we will reclassify approximately $13 million (before taxes) of net derivative gains from accumulated other comprehensive income (loss) into earnings within the next 12 months. Financial StatementsNotes to Consolidated Financial Statements100 Financial StatementsNotes to Consolidated Financial Statements100 Financial StatementsNotes to Consolidated Financial Statements100 Notes to Consolidated Financial Statements 100 Table of Contents Table of Contents 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)Dec 30, 2023Dec 31, 2022Dec 25, 2021Foreign currency contracts$30,064 $31,603 $38,024 Interest rate contracts18,363 16,011 15,209 Other2,103 2,094 2,517 Total$50,530 $49,708 $55,750

We estimate that we will reclassify approximately $254 million (before taxes) of net derivative losses from accumulated other comprehensive income (loss) into earnings within the next 12 months. Financial StatementsNotes to Consolidated Financial Statements104 Financial StatementsNotes to Consolidated Financial Statements104 Financial StatementsNotes to Consolidated Financial Statements104 Notes to Consolidated Financial Statements 104 Table of Contents Table of Contents 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)Dec 31, 2022Dec 25, 2021Dec 26, 2020Foreign currency contracts$31,603 $38,024 $31,209 Interest rate contracts16,011 15,209 14,461 Other2,094 2,517 2,026 Total$49,708 $55,750 $47,696

Government Incentives We enter into government incentive arrangements with local, regional, and national governments, both US and non-US. These arrangements vary in size, duration, and conditions and allow us to maintain a market-comparable foothold across various geographies. These incentives are primarily structured as cash grants and refundable tax credits. Capital-related incentives have terms of up to 15 years and operating-related incentives have terms that can vary widely. We are eligible to receive these incentives because we engage in qualifying capital investments, R&D, and other activities as defined by the relevant government entities. This includes qualifying capital investments for semiconductor wafer and advanced packaging manufacturing facilities construction and acquisition of equipment. Each incentive requires that we comply with certain conditions for a period that may exceed the incentive terms. These conditions can include achievement of future operational targets and committing to minimum levels of capital investment. If conditions are not satisfied, the incentives may be subject to reduction, recapture, or termination. Capital-related incentives reduced gross property, plant, and equipment by $5.5 billion as of December 30, 2023 ($3.3 billion as of December 31, 2022), of which $2.2 billion was recognized in 2023 ($373 million in 2022). Capital-related incentives reduced depreciation expense by $226 million in 2023, of which substantially all reduced cost of sales ($230 million in 2022, all of which reduced cost of sales). Related incentives recognized during each period consisted of the following: ▪US federal government pursuant to the US CHIPS and Science Act - We recognized a non-cash refundable advanced manufacturing investment tax credit of $845 million in 2023, which is recorded as an offset to income taxes payable. No incentives were recognized in 2022. ▪US state governments - We recognized $723 million of grants in 2023 related to two new leading-edge chip factories in Ohio. No incentives were recognized in 2022. ▪Non-US governments - We recognized $645 million of grants and refundable tax credits in 2023 ($373 million in 2022), a majority of which related to the expansion of silicon wafer manufacturing facilities in Ireland. Operating-related incentives benefited operating income by $202 million in 2023 ($104 million in 2022), a majority of which was recorded in cost of sales. Capital-related and operating-related grants receivables totaled $559 million as of December 30, 2023 ($437 million as of December 31, 2022), a majority of which pertained to capital-related grants and were recognized as non-cash investing activities. A substantial majority of the grants receivables were recorded within other long-term assets on our Consolidated Balance Sheets as of December 30, 2023 and as of December 31, 2022. Capital-related refundable tax credits totaled $365 million as of December 30, 2023 (no balance as of December 31, 2022) and were recorded within income taxes payable on our Consolidated Balance Sheets. other long-term assets other long-term assets Financial StatementsNotes to Consolidated Financial Statements89 Financial StatementsNotes to Consolidated Financial Statements89 Financial StatementsNotes to Consolidated Financial Statements89 Notes to Consolidated Financial Statements 89 Table of Contents Table of Contents Other Accrued Liabilities Other accrued liabilities include deferred compensation of $2.9 billion as of December 30, 2023 ($2.4 billion as of December 31, 2022). Advertising Advertising costs, including direct marketing, are expensed as incurred and recorded within MG&A expenses. Advertising costs were $950 million in 2023 ($1.2 billion in 2022 and $1.1 billion in 2021). Interest and Other, Net Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Interest income$1,335 $589 $144 Interest expense(878)(496)(597)Other, net172 1,073 (29)Total interest and other, net$629 $1,166 $(482) Interest expense is net of $1.5 billion of interest capitalized in 2023 ($785 million in 2022 and $398 million in 2021). Other, net includes a $1.0 billion gain recognized in 2022 from the first closing of the divestiture of our NAND memory business. Note 7 : Restructuring and Other Charges Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Employee severance and benefit arrangements$222 $1,038 $48 Litigation charges and other(329)(1,187)2,291 Asset impairment charges45 151 287 Total restructuring and other charges$(62)$2 $2,626 The 2022 Restructuring Program was approved to rebalance our workforce and operations to create efficiencies and improve our product execution in alignment with our strategy. Restructuring charges are primarily comprised of employee severance and benefit arrangements and are recorded as corporate charges in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. These actions were substantially complete as of December 30, 2023. Restructuring activity for the 2022 Restructuring Program was as follows:(In Millions)Employee Severance and Benefit ArrangementsAccrued restructuring balance as of December 25, 2021$— Accruals and adjustments1,038 Cash payments(165)Accrued restructuring balance as of December 31, 2022873 Accruals and adjustments222 Cash payments(1,013)Accrued restructuring balance as of December 30, 2023$82 The accrued restructuring balances as of December 30, 2023 and December 31, 2022 were recorded as current liabilities within accrued compensation and benefits on the Consolidated Balance Sheets. The cumulative cost of the 2022 Restructuring Program as of December 30, 2023 was $1.3 billion. Litigation charges and other includes a $1.2 billion benefit in 2023 due to a reduction in the previously accrued $2.2 billion charge as a result of developments in the VLSI litigation in the fourth quarter of 2023. 2023 charges also include a $401 million charge for an EC-imposed fine. In 2009, we recorded and paid an EC-imposed fine that was subsequently annulled, resulting in a benefit of $1.2 billion in 2022. Refer to "Note 19: Commitments and Contingencies" within the Notes to Consolidated Financial Statements for further information on legal proceedings related to the VLSI litigation and EC fine. Also in 2023, we mutually agreed with Tower to terminate the agreement we entered into during 2022 to acquire Tower due to our inability to obtain required regulatory approvals in a timely manner. We paid a termination fee in accordance with the terms of the agreement, resulting in a $353 million charge included in litigation charges and other. Financial StatementsNotes to Consolidated Financial Statements90 Financial StatementsNotes to Consolidated Financial Statements90 Financial StatementsNotes to Consolidated Financial Statements90 Notes to Consolidated Financial Statements 90 Table of Contents Table of Contents Note 8 : Income Taxes Provision for (Benefit From) Taxes Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Income (losses) before taxes:US$(4,749)$(1,161)$9,361 Non-US5,511 8,929 12,342 Total income before taxes762 7,768 21,703 Provision for (benefit from) taxes:Current:Federal538 4,106 1,304 State23 68 75 Non-US535 735 1,198 Total current provision for (benefit from) taxes1,096 4,909 2,577 Deferred:Federal(2,048)(5,806)(863)State(21)(40)(25)Non-US60 688 146 Total deferred provision for (benefit from) taxes(2,009)(5,158)(742)Total provision for (benefit from) taxes$(913)$(249)$1,835 Effective tax rate(119.8)%(3.2)%8.5 % Income (losses) before taxes: 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: Years EndedDec 30, 2023Dec 31, 2022Dec 25, 2021Statutory federal income tax rate21.0 %21.0 %21.0 %Increase (reduction) in rate resulting from:Research and development tax credits(99.0)(11.4)(2.4)Non-US income taxed at different rates(60.6)(13.4)(5.9)Foreign derived intangible income benefit(25.1)(9.7)(2.2)Restructuring of certain non-US subsidiaries (15.8)(2.2)(3.4)Share-based compensation34.3 3.0 — Unrecognized tax benefits and settlements16.3 4.5 1.1 Non-deductibility of European Commission fine11.1 (4.1)— Other(2.0)9.1 0.3 Effective tax rate(119.8)%(3.2)%8.5 %

Property, Plant and Equipment (In Millions)Dec 31, 2022Dec 25, 2021Land and buildings$44,808 $40,039 Machinery and equipment92,711 86,955 Construction in progress36,727 21,545 Total property, plant and equipment, gross174,246 148,539 Less: Accumulated depreciation(93,386)(85,294)Total property, plant and equipment, net$80,860 $63,245 Our depreciable property, plant and equipment assets are depreciated over the following estimated useful lives: machinery and equipment, 3 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)Dec 31, 2022Dec 25, 2021United States$53,681 $43,428 Ireland13,179 7,503 Israel7,908 7,754 Other countries6,092 4,560 Total property, plant and equipment, net$80,860 $63,245 Other Accrued Liabilities Other accrued liabilities include deferred compensation of $2.4 billion as of December 31, 2022 ($2.8 billion as of December 25, 2021) and collateral received for derivatives under credit support annex agreements of $0.7 billion as of December 31, 2022 ($1.0 billion as of December 25, 2021). Advertising Advertising costs, including direct marketing, are expensed as incurred and recorded within MG&A expenses. Advertising costs were $1.2 billion in 2022 ($1.1 billion in 2021 and $763 million in 2020). Financial StatementsNotes to Consolidated Financial Statements92 Financial StatementsNotes to Consolidated Financial Statements92 Financial StatementsNotes to Consolidated Financial Statements92 Notes to Consolidated Financial Statements 92 Table of Contents Table of Contents Interest and Other, Net Years Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Interest income$589 $144 $272 Interest expense(496)(597)(629)Other, net1,073 (29)(147)Total interest and other, net$1,166 $(482)$(504) Interest expense is net of $785 million of interest capitalized in 2022 ($398 million in 2021 and $338 million in 2020). Other, net includes a $1.0 billion gain recognized in 2022 from the first closing of the divestiture of our NAND memory business. Note 7 : Restructuring and Other Charges Years Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Employee severance and benefit arrangements$1,038 $48 $124 Litigation charges and other(1,187)2,291 67 Asset impairment charges151 287 7 Total restructuring and other charges$2 $2,626 $198 The 2022 Restructuring Program was approved to rebalance our workforce and operations to create efficiencies and improve our product execution in alignment with our strategy. Restructuring charges are primarily comprised of employee severance and benefit arrangements and are recorded as corporate charges in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. As of December 31, 2022, we have accrued $873 million as a current liability within Accrued compensation and benefits on our Consolidated Balance Sheets; $165 million in payments or other adjustments were made during the period. We expect these actions to be substantially completed by the end of 2023, but this is subject to change. Any changes to the estimates or timing of executing the 2022 Restructuring Program will be reflected in our future results of operations. Litigation charges and other includes a $1.2 billion benefit in 2022 from the annulled penalty related to an EC fine that was recorded and paid in 2009, and a charge of $2.2 billion in 2021 related to the VLSI litigation. These were recorded as a corporate benefit and charge in the "all other" category presented in "Note 3: Operating Segments" within the Notes to Consolidated Financial Statements. Refer to "Note 19: Commitments and Contingencies" within the Notes to Consolidated Financial Statements for further information on legal proceedings related to the EC fine and the VLSI litigation. Asset impairment charges includes $238 million of goodwill and other impairments related to the shutdown in 2021 of two of our non-strategic businesses, the results of which are included in the “all other” category presented in “Note 3: Operating Segments” within the Notes to Consolidated Financial Statements. Financial StatementsNotes to Consolidated Financial Statements93 Financial StatementsNotes to Consolidated Financial Statements93 Financial StatementsNotes to Consolidated Financial Statements93 Notes to Consolidated Financial Statements 93 Table of Contents Table of Contents Note 8 : Income Taxes Provision for (Benefit From) Taxes Years Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Income before taxes:US$(1,161)$9,361 $15,452 Non-US8,929 12,342 9,626 Total income before taxes7,768 21,703 25,078 Provision for (benefit from) taxes:Current:Federal4,106 1,304 1,120 State68 75 46 Non-US735 1,198 1,244 Total current provision for (benefit from) taxes4,909 2,577 2,410 Deferred:Federal(5,806)(863)1,369 State(40)(25)25 Non-US688 146 375 Total deferred provision for (benefit from) taxes(5,158)(742)1,769 Total provision for (benefit from) taxes$(249)$1,835 $4,179 Effective tax rate(3.2)%8.5 %16.7 % 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: Years EndedDec 31, 2022Dec 25, 2021Dec 26, 2020Statutory federal income tax rate21.0 %21.0 %21.0 %Increase (reduction) in rate resulting from:Non-US income taxed at different rates(13.4)(5.9)(3.7)Research and development tax credits(11.4)(2.4)(2.1)Foreign derived intangible income benefit(9.7)(2.2)(1.9)Unrecognized tax benefits and settlements4.5 1.1 0.6 Restructuring of certain non-US subsidiaries— (3.4)— Change in permanent reinvestment assertion— — 1.6 Other5.8 0.3 1.2 Effective tax rate(3.2)%8.5 %16.7 %

Financial StatementsNotes to Consolidated Financial Statements97 Financial StatementsNotes to Consolidated Financial Statements97 Financial StatementsNotes to Consolidated Financial Statements97 Notes to Consolidated Financial Statements 97 Table of Contents Table of Contents Dec 30, 2023Dec 31, 2022(In Millions)Effective Interest RateAmountAmountOregon and Arizona bonds1:2.40% - 2.70%, due December 2035 - 2040—%— 423 3.80% - 4.10%, due December 2035 - 20403.89%423 — 5.00%, due September 20423.64%131 131 5.00%, due June 20492.15%438 438 5.00%, due September 20524.26%445 445 Total senior notes and other borrowings50,285 39,285 Unamortized premium/discount and issuance costs(445)(417)Hedge accounting fair value adjustments(574)(761)Long-term debt49,266 38,107 Current portion of long-term debt(2,288)(423)Total long-term debt$46,978 $37,684

Financial StatementsNotes to Consolidated Financial Statements101 Financial StatementsNotes to Consolidated Financial Statements101 Financial StatementsNotes to Consolidated Financial Statements101 Notes to Consolidated Financial Statements 101 Table of Contents Table of Contents Long-Term Debt Dec 31, 2022Dec 25, 2021(In Millions)Effective Interest RateAmountAmountOregon and Arizona bonds:2.40% - 2.70%, due December 2035 - 20402.49%$423 $423 5.00%, due September 20423.41%131 — 5.00%, due March 2049—%— 138 5.00%, due June 20492.15%438 438 5.00%, due September 20523.17%445 — Total senior notes and other borrowings39,285 37,695 Unamortized premium/discount and issuance costs(417)(405)Hedge accounting fair value adjustments(761)811 Long-term debt38,107 38,101 Current portion of long-term debt(423)(4,591)Total long-term debt$37,684 $33,510

Total Total Total The amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges for each period were as follows: