{
  "ticker": "INTC",
  "company": "Intel Corporation",
  "filing_type": "10-K",
  "year_current": "2024",
  "year_prior": "2023",
  "summary": {
    "added": 6,
    "removed": 1,
    "modified": 17,
    "unchanged": 8,
    "total_current": 31,
    "total_prior": 26
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/intc/2024-vs-2023/",
  "markdown_url": "https://riskdiff.com/intc/2024-vs-2023/index.md",
  "json_url": "https://riskdiff.com/intc/2024-vs-2023/index.json",
  "generated": "2026-05-10",
  "ai_summary": "Intel substantially expanded its risk disclosure framework by adding 6 new risk factors while removing only 1, resulting in a net increase of 5 risks to its overall risk profile. Seventeen existing risks underwent substantive modifications, indicating significant revisions to Intel's assessment of operational, financial, and strategic challenges. The modifications primarily focused on financial metrics and hedging arrangements, with notable changes to long-term debt carrying amounts and fair value adjustments between fiscal years 2023 and 2022.",
  "risks": [
    {
      "status": "ADDED",
      "current_title": "Current Title",
      "prior_title": null,
      "current_body": "Mr. Gelsinger has been our Chief Executive Officer and a member of our Board of Directors since February 2021. He has also served as a member and Chair of the Board of Directors of Mobileye, a subsidiary of Intel, since September 2022. He joined Intel from VMware, Inc., a provider of cloud computing and virtualization software and services, where he served as Chief Executive Officer from September 2012 to February 2021. Prior to VMware, Mr. Gelsinger served as President and Chief Operating Officer, EMC Information Infrastructure Products at EMC Corp., a data storage, information security, and cloud computing company, from September 2009 to August 2012. Mr. Gelsinger's career began at Intel, where he spent 30 years before joining EMC Corp. During his initial tenure at Intel, Mr. Gelsinger served in a number of roles, including Senior Vice President and Co-General Manager of the Digital Enterprise Group from 2005 to September 2009, Senior Vice President, Chief Technology Officer from 2002 to 2005, and leader of the Desktop Products Group prior to that. Ms. Johnston Holthaus has been our Executive Vice President and General Manager of the Client Computing Group since April 2022. She is responsible for running and growing the client business, including strategy, financial performance, and product development for the full portfolio of client technologies and platforms designed to enable exceptional personal computing experiences across mobile, desktop, and workstation devices. Ms. Johnston Holthaus previously served as Executive Vice President, Chief Sales Officer and General Manager, Sales, Marketing and Communications Group, from September 2019 to January 2022, and as Senior Vice President of Sales and Marketing and Acting Chief Marketing Officer from September 2017 to September 2019. In these roles, she was responsible for global sales and revenue and leading the company's efforts to foster innovative sales and marketing approaches that broaden Intel's business opportunities and enhance customer relationships worldwide. Ms. Johnston Holthaus joined Intel in 1996 and has served in a variety of sales and marketing, channel mobile, and channel desktop positions. Ms. Miller Boise has been our Executive Vice President and Chief Legal Officer since July 2022 and Corporate Secretary since August 2022. Ms. Miller Boise leads Intel's global legal, trade, and government affairs team, is a member of Intel's Executive Leadership Team, and is a strategic advisor to the Company and the Board of Directors. Prior to joining Intel, she was Executive Vice President and Chief Legal Officer at Eaton Corp, a power management company. Before joining Eaton in 2020, she was Senior Vice President, Chief Legal Officer, and Corporate Secretary at Meritor Inc., a supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions acquired by Cummins Inc. Ms. Miller Boise has more than 25 years of experience and has served in executive leadership roles, including chief legal officer, general counsel, and head of global mergers and acquisitions. Executive Vice President, Chief Legal Officer and Corporate Secretary Mr. Schell has been our Executive Vice President and Chief Commercial Officer and General Manager of the Sales, Marketing and Communications Group since March 2022. In his role, he oversees Intel's global sales, business management, marketing, communications, corporate planning, customer support, and customer success teams, leading the company's efforts to foster innovative go-to-market approaches that broaden Intel's business opportunities and deepen customer and partner relationships and outcomes worldwide. Prior to joining Intel, Mr. Schell served as the Chief Commercial Officer of HP Inc., an American multinational information technology company, from November 2019 to March 2022. During his 25 years with HP, Mr. Schell held various senior management roles across the globe, including President of 3D Printing and Digital Manufacturing from November 2018 to October 2019 and President of the Americas region from November 2015 to November 2018. Prior to rejoining HP in 2014, Mr. Schell served as Executive Vice President of Growth Markets for Philips, a lighting solutions company, where he led the lighting business across Asia Pacific, Japan, Africa, Russia, India, Central Asia, and the Middle East. He started his career in his family's distribution and industrial solutions company before working in brand management at Procter & Gamble. Executive Vice President, Chief Commercial Officer and General Manager, Sales, Marketing and Communications Group Mr. Zinsner has been our Executive Vice President and Chief Financial Officer since January 2022, overseeing our global finance organization. He joined Intel from Micron Technology, Inc., a manufacturer of memory and storage products, where he most recently served as Executive Vice President and Chief Financial Officer from February 2018 to October 2021. From April 2017 to February 2018, he served as President and Chief Operating Officer of Affirmed Networks, Inc. From January 2009 to April 2017, he served as Chief Financial Officer of Analog Devices, Inc. From July 2005 to January 2009, Mr. Zinsner served as Chief Financial Officer of Intersil Corporation. Table of Contents Table of Contents Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934 Section 13(r) of the Exchange Act requires an issuer to disclose certain information in its periodic reports if it or any of its affiliates knowingly engaged in certain activities, transactions, or dealings with individuals or entities subject to specific US economic sanctions during the reporting period, even when the activities, transactions, or dealings are conducted in compliance with applicable law. On March 2, 2021, the US Secretary of State designated the Federal Security Service of the Russian Federation (FSB) as a party subject to one such sanction. Though Intel has suspended sales in Russia, there may be a need to file documents or engage with FSB as Intel winds up our local offices. All such dealings are explicitly authorized by General License 1B issued by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), and there are no gross revenues or net profits directly associated with any such dealings by us with the FSB. On April 15, 2021, the US Department of the Treasury designated Pozitiv Teknolodzhiz, AO (Positive Technologies), a Russian IT security firm, as a party subject to one of the sanctions specified in Section 13(r). Prior to the designation, we communicated with Positive Technologies regarding its IT security research and coordinated disclosure of security vulnerabilities identified by the firm. Based on a license issued by OFAC, we resumed such communications. There are no gross revenues or net profits directly associated with any such activities. We plan to continue these communications in accordance with the terms and conditions of the OFAC license. Table of Contents Table of Contents Financial Statements and Supplemental Details We have defined certain terms and abbreviations used throughout our Form 10-K in \"Key Terms\" within this section. Index to Consolidated Financial StatementsPageReports of Independent Registered Public Accounting Firm(PCAOB ID: 42)71Consolidated Statements of Income74Consolidated Statements of Comprehensive Income75Consolidated Balance Sheets76Consolidated Statements of Cash Flows77Consolidated Statements of Stockholders' Equity78Notes to Consolidated Financial Statements79BasisNote 1: Basis of Presentation79Note 2: Accounting Policies79Performance and OperationsNote 3: Operating Segments85Note 4: Non-Controlling Interests86Note 5: Earnings Per Share88Note 6: Other Financial Statement Details88Note 7: Restructuring and Other Charges90Note 8: Income Taxes91Investments, Long-Term Assets, and DebtNote 9: Investments93Note 10: Acquisitions and Divestitures95Note 11: Goodwill95Note 12: Identified Intangible Assets96Note 13: Borrowings96Note 14: Fair Value99Risk Management and OtherNote 15: Other Comprehensive Income (Loss)100Note 16: Derivative Financial Instruments101Note 17: Retirement Benefit Plans103Note 18: Employee Equity Incentive Plans106Note 19: Commitments and Contingencies108Key Terms112Index to Supplemental DetailsControls and Procedures115Exhibits116Form 10-K Cross-Reference Index121 (PCAOB ID: 42) 71 74 75 76 77 78 79 79 79 85 86 88 88 90 91 93 95 95 96 96 99 100 101 103 106 108 112 115 116 121 70 70 70 70 Table of Contents Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Intel Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Intel Corporation (the Company) as of December 30, 2023 and December 31, 2022, the related consolidated statements of income, comprehensive income, cash flows and stockholders' equity for each of the three years in the period ended December 30, 2023, and the related notes (collectively referred to as the \"consolidated financial statements\"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 30, 2023 and December 31, 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 30, 2023, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 30, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 25, 2024 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Auditor's Reports71 Auditor's Reports71 Auditor's Reports71 71 Table of Contents Table of Contents Inventory ValuationDescription of the MatterThe Company's net inventory totaled $11.1 billion as of December 30, 2023, representing 5.8% of total assets. As explained in \"Note 2: Accounting Policies\" within the consolidated financial statements, the Company computes inventory cost on a first-in, first-out basis, and applies judgment in determining saleability of products and the valuation of inventories. The Company assesses inventory at each reporting date in order to assert that it is recorded at net realizable value, giving consideration to, among other factors: whether the products have achieved the substantive engineering milestones to qualify for sale to customers; the determination of normal capacity levels in its manufacturing process to determine which manufacturing overhead costs can be included in the valuation of inventory; whether the product is valued at the lower of cost or net realizable value; and the estimation of excess and obsolete inventory or that which is not of saleable quality. Auditing management’s assessment of net realizable value for inventory was challenging because the determination of excess and obsolete inventory reserves and lower of cost or net realizable value is judgmental and considers a number of factors that are affected by market and economic conditions, such as customer forecasts, dynamic pricing environments, and industry supply and demand. Additionally, for certain new product launches there is limited historical data with which to evaluate forecasts.How We Addressed the Matter in Our AuditWe evaluated and tested the design and operating effectiveness of the Company’s internal controls over the costing of inventory, the determination of whether inventory is of saleable quality, the determination of demand forecasts and related application against on hand inventory, and the calculation of lower of cost or net realizable value reserves including related estimated costs and selling prices.Our audit procedures included, among others, testing the significant assumptions (e.g., estimated product demand forecasts, costs and selling prices) of the underlying data used in management’s inventory valuation assessment. We compared the significant assumptions used by management to current industry and economic trends. We assessed whether there were any potential sources of contrary information, including historical forecast accuracy or history of significant revisions to previously recorded inventory valuation adjustments, and performed sensitivity analyses over significant assumptions to evaluate the changes in inventory valuation that would result from changes in the assumptions. The Company's net inventory totaled $11.1 billion as of December 30, 2023, representing 5.8% of total assets. As explained in \"Note 2: Accounting Policies\" within the consolidated financial statements, the Company computes inventory cost on a first-in, first-out basis, and applies judgment in determining saleability of products and the valuation of inventories. The Company assesses inventory at each reporting date in order to assert that it is recorded at net realizable value, giving consideration to, among other factors: whether the products have achieved the substantive engineering milestones to qualify for sale to customers; the determination of normal capacity levels in its manufacturing process to determine which manufacturing overhead costs can be included in the valuation of inventory; whether the product is valued at the lower of cost or net realizable value; and the estimation of excess and obsolete inventory or that which is not of saleable quality. Auditing management’s assessment of net realizable value for inventory was challenging because the determination of excess and obsolete inventory reserves and lower of cost or net realizable value is judgmental and considers a number of factors that are affected by market and economic conditions, such as customer forecasts, dynamic pricing environments, and industry supply and demand. Additionally, for certain new product launches there is limited historical data with which to evaluate forecasts. We evaluated and tested the design and operating effectiveness of the Company’s internal controls over the costing of inventory, the determination of whether inventory is of saleable quality, the determination of demand forecasts and related application against on hand inventory, and the calculation of lower of cost or net realizable value reserves including related estimated costs and selling prices. Our audit procedures included, among others, testing the significant assumptions (e.g., estimated product demand forecasts, costs and selling prices) of the underlying data used in management’s inventory valuation assessment. We compared the significant assumptions used by management to current industry and economic trends. We assessed whether there were any potential sources of contrary information, including historical forecast accuracy or history of significant revisions to previously recorded inventory valuation adjustments, and performed sensitivity analyses over significant assumptions to evaluate the changes in inventory valuation that would result from changes in the assumptions. /s/ Ernst & Young LLP We have served as the Company's auditor since 1968. San Jose, California January 25, 2024 Auditor's Reports72 Auditor's Reports72 Auditor's Reports72 72 Table of Contents Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Intel Corporation Opinion on Internal Control Over Financial Reporting We have audited Intel Corporation's internal control over financial reporting as of December 30, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Intel Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 30, 2023, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2023 consolidated financial statements of the Company and our report dated January 25, 2024 expressed an unqualified opinion thereon. Basis for Opinion The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP San Jose, California January 25, 2024 Auditor's Reports73 Auditor's Reports73 Auditor's Reports73 73 Table of Contents Table of Contents Consolidated Statements of Income Years Ended (In Millions, Except Per Share Amounts)Dec 30, 2023Dec 31, 2022Dec 25, 2021Net revenue$54,228 $63,054 $79,024 Cost of sales32,517 36,188 35,209 Gross margin21,711 26,866 43,815 Research and development16,046 17,528 15,190 Marketing, general, and administrative5,634 7,002 6,543 Restructuring and other charges(62)2 2,626 Operating expenses21,618 24,532 24,359 Operating income93 2,334 19,456 Gains (losses) on equity investments, net40 4,268 2,729 Interest and other, net629 1,166 (482)Income before taxes762 7,768 21,703 Provision for (benefit from) taxes(913)(249)1,835 Net income1,675 8,017 19,868 Less: Net income (loss) attributable to non-controlling interests(14)3 — Net income attributable to Intel$1,689 $8,014 $19,868 Earnings per share attributable to Intel—basic$0.40 $1.95 $4.89 Earnings per share attributable to Intel—diluted$0.40 $1.94 $4.86 Weighted average shares of common stock outstanding:Basic4,190 4,108 4,059 Diluted4,212 4,123 4,090 Marketing, general, and administrative Less: Net income (loss) attributable to non-controlling interests See accompanying notes. Financial StatementsConsolidated Statements of Income74 Financial StatementsConsolidated Statements of Income74 Financial StatementsConsolidated Statements of Income74 74 Table of Contents Table of Contents Consolidated Statements of Comprehensive Income Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Net income$1,675 $8,017 $19,868 Changes in other comprehensive income (loss), net of tax:Net unrealized holding gains (losses) on derivatives272 (510)(520)Actuarial valuation and other pension benefits (expenses), net66 855 451 Translation adjustments and other9 (27)(60)Other comprehensive income (loss)347 318 (129)Total comprehensive income2,022 8,335 19,739 Less: comprehensive income (loss) attributable to non-controlling interests(14)3 — Total comprehensive income attributable to Intel$2,036 $8,332 $19,739 See accompanying notes. Financial StatementsConsolidated Statements of Comprehensive Income75 Financial StatementsConsolidated Statements of Comprehensive Income75 Financial StatementsConsolidated Statements of Comprehensive Income75 75 Table of Contents Table of Contents Consolidated Balance Sheets (In Millions, Except Par Value)Dec 30, 2023Dec 31, 2022AssetsCurrent assets:Cash and cash equivalents$7,079 $11,144 Short-term investments17,955 17,194 Accounts receivable, net3,402 4,133 Inventories11,127 13,224 Other current assets3,706 4,712 Total current assets43,269 50,407 Property, plant, and equipment, net96,647 80,860 Equity investments5,829 5,912 Goodwill27,591 27,591 Identified intangible assets, net4,589 6,018 Other long-term assets13,647 11,315 Total assets$191,572 $182,103 Liabilities and stockholders' equityCurrent liabilities:Short-term debt$2,288 $4,367 Accounts payable8,578 9,595 Accrued compensation and benefits3,655 4,084 Income taxes payable1,107 2,251 Other accrued liabilities12,425 11,858 Total current liabilities28,053 32,155 Debt46,978 37,684 Other long-term liabilities6,576 8,978 Commitments and Contingencies (Note 19)Stockholders' equity:Preferred stock, $0.001 par value, 50 shares authorized; none issued— — Common stock, $0.001 par value, 10,000 shares authorized; 4,228 shares issued and outstanding (4,137 issued and outstanding in 2022) and capital in excess of par value36,649 31,580 Accumulated other comprehensive income (loss)(215)(562)Retained earnings69,156 70,405 Total Intel stockholders' equity105,590 101,423 Non-controlling interests4,375 1,863 Total stockholders' equity109,965 103,286 Total liabilities and stockholders' equity$191,572 $182,103"
    },
    {
      "status": "ADDED",
      "current_title": "Net revenue:",
      "prior_title": null,
      "current_body": "In 2023, substantially all of the revenue from our three largest customers was from the sale of platforms and other components by our CCG and DCAI operating segments. Our three largest customers accounted for the following percentage of our net revenue: Years EndedDec 30, 2023Dec 31, 2022Dec 25, 2021Dell Inc.19 %19 %21 %Lenovo Group Limited11 %12 %12 %HP Inc.10 %11 %10 %Total percentage of net revenue40 %42 %43 %"
    },
    {
      "status": "ADDED",
      "current_title": "Total percentage of net revenue",
      "prior_title": null,
      "current_body": "Net revenue by region, based on the billing location of the customer, was as follows: Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021China$14,854 $17,125 $22,961 Singapore8,602 9,664 18,096 United States13,958 16,529 14,322 Taiwan6,867 8,287 11,418 Other regions9,947 11,449 12,227 Total net revenue $54,228 $63,054 $79,024 Financial StatementsNotes to Consolidated Financial Statements86 Financial StatementsNotes to Consolidated Financial Statements86 Financial StatementsNotes to Consolidated Financial Statements86 Notes to Consolidated Financial Statements 86 Table of Contents Table of Contents Note 4 :Non-Controlling Interests"
    },
    {
      "status": "ADDED",
      "current_title": "Non-controlling interests, net of tax",
      "prior_title": null,
      "current_body": "Semiconductor Co-Investment Program In 2022, we closed a transaction with Brookfield Asset Management (Brookfield) resulting in the formation of Arizona Fab LLC (Arizona Fab), a VIE that we consolidate into our financial statements because we are the primary beneficiary. Generally, contributions will be made to, and distributions will be received from, Arizona Fab based on both parties' proportional ownership. We will be the sole operator of two new chip factories that will be constructed by Arizona Fab, and we will have the right to purchase 100% of the related factory output. Once production commences, we will be required to operate Arizona Fab at minimum production levels measured in wafer starts per week and will be required to limit excess inventory held on site, or we will be subject to certain penalties. We have an unrecognized commitment to fund our respective share of the total construction costs of Arizona Fab of $29.0 billion. As of December 30, 2023, a substantial majority of the assets of Arizona Fab consisted of property, plant, and equipment. The assets held by Arizona Fab, which can be used only to settle obligations of the VIE and are not available to us, were $4.8 billion as of December 30, 2023 ($1.8 billion as of December 31, 2022). Mobileye In 2022, Mobileye completed its IPO and certain other equity financing transactions that resulted in net proceeds of $1.0 billion. During the second quarter of 2023, we converted 38.5 million of our Mobileye Class B shares into Class A shares, representing 5% of Mobileye's outstanding capital stock, and subsequently sold the Class A shares for $42 per share as part of a secondary offering, receiving net proceeds of $1.6 billion and increasing our capital in excess of par value by $663 million, net of tax. We continue to consolidate the results of Mobileye into our consolidated financial statements. IMS Nanofabrication In the third and fourth quarters of 2023, we closed agreements to sell a combined 32% minority stake in our IMS business, a business within our IFS operating segment —including a 20% stake to Bain Capital and a 10% stake to TSMC. Net proceeds resulting from the minority stake sales totaled $1.4 billion, and our capital in excess of par value increased by $958 million, net of tax. We continue to consolidate the results of IMS into our consolidated financial statements. Financial StatementsNotes to Consolidated Financial Statements87 Financial StatementsNotes to Consolidated Financial Statements87 Financial StatementsNotes to Consolidated Financial Statements87 Notes to Consolidated Financial Statements 87 Table of Contents Table of Contents Note 5 : Earnings Per Share"
    },
    {
      "status": "ADDED",
      "current_title": "(In Millions)",
      "prior_title": null,
      "current_body": "Financial StatementsNotes to Consolidated Financial Statements88 Financial StatementsNotes to Consolidated Financial Statements88 Financial StatementsNotes to Consolidated Financial Statements88 Notes to Consolidated Financial Statements 88 Table of Contents Table of Contents Property, Plant, and Equipment (In Millions)Dec 30, 2023Dec 31, 2022Land and buildings$51,182 $44,808 Machinery and equipment100,033 92,711 Construction in progress43,442 36,727 Total property, plant, and equipment, gross194,657 174,246 Less: Accumulated depreciation(98,010)(93,386)Total property, plant, and equipment, net$96,647 $80,860"
    },
    {
      "status": "ADDED",
      "current_title": "Total property, plant, and equipment, net",
      "prior_title": null,
      "current_body": "Our depreciable property, plant, and equipment assets are depreciated over the following estimated useful lives: machinery and equipment, 3 to 8 years; and buildings, 10 to 25 years. Effective January 2023, we increased the estimated useful life of certain production machinery and equipment from 5 to 8 years. When compared to the estimated useful life in place as of the end of 2022, we estimate this change increased gross margin in 2023 by approximately $2.5 billion and decreased R&D expense by approximately $400 million. As of December 30, 2023, we estimate this change decreased ending inventory values by approximately $1.3 billion. These estimates are based on the assets in use and under construction as of the beginning of 2023 and are calculated at that point in time. Net property, plant, and equipment by country at the end of each period was as follows: (In Millions)Dec 30, 2023Dec 31, 2022United States$63,234 $53,681 Ireland16,746 13,179 Israel9,290 7,908 Other countries7,377 6,092 Total property, plant, and equipment, net$96,647 $80,860"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(In Millions)",
      "prior_body": "During the second quarter of 2021, we recognized a goodwill impairment loss of $238 million related to two non-strategic businesses that we exited, recorded within our all other category. During the fourth quarters of 2022 and 2021, we completed our annual impairment assessments and concluded that goodwill was not impaired. The accumulated impairment loss as of December 31, 2022 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. 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 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 Note 12 : Identified Intangible Assets December 31, 2022December 25, 2021(In Millions)Gross AssetsAccumulated AmortizationNetGross AssetsAccumulated AmortizationNetDeveloped technology$10,964 $(7,216)$3,748 $11,102 $(6,026)$5,076 Customer relationships and brands1,986 (1,114)872 2,110 (1,063)1,047 Licensed technology and patents3,219 (1,821)1,398 2,893 (1,746)1,147 Total identified intangible assets$16,169 $(10,151)$6,018 $16,105 $(8,835)$7,270 During 2022, we entered into and/or renewed several licensed technology arrangements totaling $634 million, 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 31, 2022Dec 25, 2021Dec 26, 2020Weighted Average Useful Life1Developed technologyCost of sales$1,341 $1,283 $1,211 9 yearsCustomer relationships and brandsMarketing, general and administrative185 209 205 12 yearsLicensed technology and patentsCost of sales381 347 341 12 yearsTotal amortization expenses$1,907 $1,839 $1,757"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.895,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"Impairments recognized on these investments held as of December 30, 2023 were $202 million ($179 million on investments held as of December 31, 2022).\"",
        "Reworded sentence: \"The fair value of these instruments was $47.6 billion as of December 30, 2023 ($34.3 billion as of December 31, 2022).\""
      ],
      "current_body": "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)",
      "prior_body": "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)"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.885,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"For 2023 PSUs, overall payout will be capped at target grant amount if our absolute TSR is negative.\"",
        "Reworded sentence: \"Share-Based Compensation Share-based compensation recognized in 2023 was $3.2 billion ($3.1 billion in 2022 and $2.0 billion in 2021).\"",
        "Reworded sentence: \"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:\""
      ],
      "current_body": "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:",
      "prior_body": "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:"
    },
    {
      "status": "MODIFIED",
      "current_title": "Balance at Beginning of Year",
      "prior_title": "Balance at Beginning of Year",
      "similarity_score": 0.872,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The valuation allowance as of December 30, 2023 included allowances primarily related to unrealized state credit carryforwards of $2.6 billion.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"We are no longer subject to US federal and non-US tax examinations for years prior to 2018 and 2015, respectively.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Liabilities2",
      "prior_title": "Liabilities2",
      "similarity_score": 0.863,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"3A substantial majority of these instruments mature within 12 months.\"",
        "Reworded sentence: \"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).\""
      ],
      "current_body": "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:",
      "prior_body": "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 $806 million net gains in 2020). Substantially all of our cash flow hedges are foreign currency contracts for all periods presented. Amounts excluded from effectiveness testing were insignificant during all periods presented. For information on the unrealized holding gains (losses) on derivatives reclassified out of accumulated other comprehensive income (loss) into the Consolidated Statements of Income, see \"Note 15: Other Comprehensive Income (Loss)\" within the Notes to Consolidated Financial Statements. Derivatives in Fair Value Hedging Relationships The effects of derivative instruments designated as fair value hedges, recognized in interest and other, net for each period were as follows:"
    },
    {
      "status": "MODIFIED",
      "current_title": "Line Item in the Consolidated Balance Sheets in Which the Hedged Item Is IncludedCarrying Amount of the Hedged Item Assets/(Liabilities)Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)(In Millions)Dec 30, 2023Dec 31, 2022Dec 30, 2023Dec 31, 2022Long-term debt$(11,419)$(11,221)$578 $776",
      "prior_title": "Line Item in the Consolidated Balance Sheets in Which the Hedged Item Is IncludedCarrying Amount of the Hedged Item Assets/(Liabilities)Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount Assets/(Liabilities)(In Millions)Dec 31, 2022Dec 25, 2021Dec 31, 2022Dec 25, 2021Long-term debt$(11,221)$(12,772)$776 $(775)",
      "similarity_score": 0.851,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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%.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.835,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Years Ended (In Millions, Except Per Share Amounts)Dec 30, 2023Dec 31, 2022Dec 25, 2021Net income$1,675 $8,017 $19,868 Less: Net income (loss) attributable to non-controlling interests(14)3 — Net income attributable to Intel$1,689 $8,014 $19,868 Weighted average shares of common stock outstanding—basic4,190 4,108 4,059 Dilutive effect of employee incentive plans22 15 31 Weighted average shares of common stock outstanding—diluted4,212 4,123 4,090 Earnings per share attributable to Intel—basic$0.40 $1.95 $4.89 Earnings per share attributable to Intel—diluted$0.40 $1.94 $4.86",
      "prior_title": "Years Ended (In Millions, Except Per Share Amounts)Dec 31, 2022Dec 25, 2021Dec 26, 2020Net income$8,017 $19,868 $20,899 Less: Net income attributable to non-controlling interests3 — — Net income attributable to Intel$8,014 $19,868 $20,899 Weighted average shares of common stock outstanding—basic4,108 4,059 4,199 Dilutive effect of employee incentive plans15 31 33 Weighted average shares of common stock outstanding—diluted4,123 4,090 4,232 Earnings per share attributable to Intel—basic$1.95 $4.89 $4.98 Earnings per share attributable to Intel—diluted$1.94 $4.86 $4.94",
      "similarity_score": 0.811,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Effective Interest Rate",
      "prior_title": "Effective Interest Rate",
      "similarity_score": 0.807,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Removed sentence: \"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.\"",
        "Reworded sentence: \"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).\"",
        "Removed sentence: \"Our other Oregon and Arizona bonds listed in the table above are also subject to periodic mandatory tender.\"",
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)20242025202620272028ThereafterTotalFuture amortization expenses$1,360 $948 $742 $552 $339 $643 $4,584",
      "prior_title": "(In Millions)20232024202520262027ThereafterTotalFuture amortization expenses$1,730 $1,297 $883 $680 $511 $917 $6,018",
      "similarity_score": 0.805,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"As of December 30, 2023 we had no commercial paper outstanding ($3.9 billion as of December 31, 2022).\""
      ],
      "current_body": "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 —",
      "prior_body": "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 —"
    },
    {
      "status": "MODIFIED",
      "current_title": "Years Ended",
      "prior_title": "Years Ended",
      "similarity_score": 0.776,
      "confidence": "high",
      "key_changes": [
        "Added sentence: \"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.\"",
        "Removed sentence: \"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.\"",
        "Removed sentence: \"As a result of the restructuring, we established deferred tax assets and released the valuation allowances of certain foreign deferred tax assets.\"",
        "Removed sentence: \"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.\"",
        "Reworded sentence: \"We have conditional reduced tax rates that expire at various dates through 2056, and we expect to apply for renewals upon expiration.\""
      ],
      "current_body": "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",
      "prior_body": "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 $(1,793)"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.77,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The components of gains (losses) on equity investments, net for each period were as follows: Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Ongoing mark-to-market adjustments on marketable equity securities$(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.\"",
        "Removed sentence: \"We recognized McAfee dividends of $126 million in 2020.\"",
        "Reworded sentence: \"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 ($1.1 billion as of December 31, 2022).\"",
        "Reworded sentence: \"Our NAND memory business includes our NAND memory technology and manufacturing business (the NAND OpCo Business), of which we deconsolidated our ongoing interests as part of the sale.\"",
        "Reworded sentence: \"We were reimbursed for costs that we incurred on behalf of the NAND OpCo Business for corporate function services, which include human resources, information technology, finance, supply chain, and other compliance requirements.\""
      ],
      "current_body": "Marketable equity securities1 Non-marketable equity securities Equity method investments 1 Over 90% of our marketable equity securities are subject to trading-volume or market-based restrictions, which limit the number of shares we may sell in a specified period of time, impacting our ability to liquidate these investments. The trading volume restrictions generally apply for as long as we own more than 1% of the outstanding shares. Market-based restrictions result from the rules of the respective exchange. The components of gains (losses) on equity investments, net for each period were as follows: Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Ongoing mark-to-market adjustments on marketable equity securities$(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 $1,839",
      "prior_body": "Marketable equity securities1 Non-marketable equity securities Equity method investments 1 Over 90% of our marketable equity securities are subject to trading-volume or market-based restrictions, which limit the number of shares we may sell in a specified period of time, impacting our ability to liquidate these investments. The trading volume restrictions generally apply for as long as we own more than 1% of the outstanding shares. Market-based restrictions result from the rules of the respective exchange. The components of gains (losses) on equity investments, net for each period were as follows: Years Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Ongoing mark-to-market adjustments on marketable equity securities$(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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Exhibit Description",
      "prior_title": "Exhibit Description",
      "similarity_score": 0.698,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"^ 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.\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.634,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "similarity_score": 0.626,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"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.\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Total property, plant, and equipment, net",
      "prior_title": "(In Millions)",
      "similarity_score": 0.619,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Government Incentives We enter into government incentive arrangements with local, regional, and national governments, both US and non-US.\"",
        "Reworded sentence: \"Advertising costs were $950 million in 2023 ($1.2 billion in 2022 and $1.1 billion in 2021).\"",
        "Reworded sentence: \"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.\"",
        "Reworded sentence: \"These actions were substantially complete as of December 30, 2023.\""
      ],
      "current_body": "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 %",
      "prior_body": "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 %"
    },
    {
      "status": "MODIFIED",
      "current_title": "Effective Interest Rate",
      "prior_title": "Effective Interest Rate",
      "similarity_score": 0.609,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"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\""
      ],
      "current_body": "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",
      "prior_body": "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"
    },
    {
      "status": "MODIFIED",
      "current_title": "Gains (Losses) Recognized in Statement of Income on DerivativesYears Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Interest rate contracts$198 $(1,551)$(723)Hedged items(198)1,551 723 Total$— $— $—",
      "prior_title": "Gains (Losses) Recognized in Statement of Income on DerivativesYears Ended (In Millions)Dec 31, 2022Dec 25, 2021Dec 26, 2020Interest rate contracts$(1,551)$(723)$817 Hedged items1,551 723 (817)Total$— $— $—",
      "similarity_score": 0.569,
      "confidence": "low",
      "current_body": "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:",
      "prior_body": "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:"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Weighted Average Useful Life1",
      "prior_title": "Weighted Average Useful Life1",
      "current_body": "1 Represents weighted average useful life in years of intangible assets as of December 30, 2023. 1 We expect future amortization expense for the next five years and thereafter to be as follows:"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Exhibit Description",
      "prior_title": "Exhibit Description",
      "current_body": "Form Master Purchase Agreement between Intel Corporation and SK hynix Inc., dated as of October 19, 2020 Corrected Third Restated Certificate of Incorporation of Intel Corporation, dated October 23, 2023 10-Q Intel Corporation Bylaws, as amended and restated on November 29, 2023 Indenture dated as of March 29, 2006 between Intel Corporation and Wells Fargo Bank, National Association (as successor to Citibank N.A.) (the \"Open-Ended Indenture\") First Supplemental Indenture to Open-Ended Indenture, dated as of December 3, 2007 Second Supplemental Indenture to Open-Ended Indenture for the Registrant's 1.95% Senior Notes due 2016, 3.30% Senior Notes due 2021, and 4.80% Senior Notes due 2041, dated as of September 19, 2011 Third Supplemental Indenture to Open-Ended Indenture for the Registrant's 1.35% Senior Notes due 2017, 2.70% Senior Notes due 2022, 4.00% Senior Notes due 2032, and 4.25% Senior Notes due 2042, dated as of December 11, 2012 Fourth Supplemental Indenture to Open-Ended Indenture for the Registrant's 4.25% Senior Notes due 2042, dated as of December 14, 2012 Fifth Supplemental Indenture to Open-Ended Indenture, dated as of July 29, 2015, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Eighth Supplemental Indenture to Open-Ended Indenture, dated as of May 19, 2016, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Ninth Supplemental Indenture to Open-Ended Indenture, dated as of May 11, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Tenth Supplemental Indenture to Open-Ended Indenture, dated as of June 16, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Eleventh Supplemental Indenture to Open-Ended Indenture, dated as of August 14, 2017, among Intel Corporation, Wells Fargo Bank, National Association, as successor trustee, and Elavon Financial Services DAC, UK Branch, as paying agent Twelfth Supplemental Indenture to Open-Ended Indenture, dated as of December 8, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Supplemental Details117 Supplemental Details117 Supplemental Details117 117 Table of Contents Table of Contents ExhibitNumberIncorporated by ReferenceFiled orFurnishedHerewithExhibit DescriptionFormFile NumberExhibitFilingDate4.12Thirteenth Supplemental Indenture, dated as of November 21, 2019, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 11/21/20194.13Fourteenth Supplemental Indenture, dated as of February 13, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.12/13/20204.14Fifteenth Supplemental Indenture, dated as of February 13, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.2 2/13/20204.15Sixteenth Supplemental Indenture, dated as of March 25, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 3/25/20204.16Seventeenth Supplemental Indenture, dated as of August 12, 2021, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 8/12/20214.17Eighteenth Supplemental Indenture, dated as of August 5, 2022, between Intel Corporation and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as trustee8-K000-062174.1 8/5/20224.18Nineteenth Supplemental Indenture, dated as of February 10, 2023, between Intel Corporation and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as trustee8-K000-062174.1 2/10/20234.19Description of Intel Securities Registered under Section 12 of the Exchange Act10-K000-062174.18 1/27/202210.1†Intel Corporation 2006 Equity Incentive Plan, as amended and restated, effective May 11, 2023S-8000-0621799.1 9/26/202310.1.2†Intel Corporation Form of Notice of Grant - Restricted Stock Units10-Q000-0621710.1 10/25/201810.1.3†Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for RSUs with retirement vesting terms granted to executives on or after January 30, 2019)10-Q000-0621710.3 4/26/201910.1.4†Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for RSUs without retirement vesting terms granted to executives on or after January 30, 2019)10-Q000-0621710.4 4/26/201910.1.5†Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for performance-based RSUs granted to grandfathered executives on or after January 30, 2019)10-Q000-0621710.5 4/26/201910.1.6†Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for performance-based RSUs granted to non-grandfathered executives on or after January 30, 2019)10-Q000-0621710.14/24/202010.1.7†Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for strategic growth performance-based RSUs granted to executives on or after February 1, 2019)10-Q000-0621710.6 4/26/2019 Exhibit Number"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Exhibit Description",
      "prior_title": "Exhibit Description",
      "current_body": "Form Thirteenth Supplemental Indenture, dated as of November 21, 2019, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Fourteenth Supplemental Indenture, dated as of February 13, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Fifteenth Supplemental Indenture, dated as of February 13, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Sixteenth Supplemental Indenture, dated as of March 25, 2020, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Seventeenth Supplemental Indenture, dated as of August 12, 2021, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee Eighteenth Supplemental Indenture, dated as of August 5, 2022, between Intel Corporation and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as trustee Nineteenth Supplemental Indenture, dated as of February 10, 2023, between Intel Corporation and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as trustee Description of Intel Securities Registered under Section 12 of the Exchange Act 10.1† Intel Corporation 2006 Equity Incentive Plan, as amended and restated, effective May 11, 2023 10.1.2† Intel Corporation Form of Notice of Grant - Restricted Stock Units 10.1.3† Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for RSUs with retirement vesting terms granted to executives on or after January 30, 2019) 10.1.4† Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for RSUs without retirement vesting terms granted to executives on or after January 30, 2019) 10.1.5† Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for performance-based RSUs granted to grandfathered executives on or after January 30, 2019) 10.1.6† Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for performance-based RSUs granted to non-grandfathered executives on or after January 30, 2019) 10.1.7† Intel Corporation Form of Restricted Stock Unit Grant Agreement under the 2006 Equity Incentive Plan (for strategic growth performance-based RSUs granted to executives on or after February 1, 2019) Supplemental Details118 Supplemental Details118 Supplemental Details118 118 Table of Contents Table of Contents ExhibitNumberIncorporated by ReferenceFiled orFurnishedHerewithExhibit DescriptionFormFile NumberExhibitFilingDate10.1.8†First Amendment to Option Agreement (Performance Options) between Intel and Patrick Gelsinger, dated November 18, 20228-K000-0621710.1 11/22/202210.1.9†First Amendment to Restricted Stock Unit Agreement (Strategic Growth PSUs) between Intel and Patrick Gelsinger, dated November 18, 20228-K000-0621710.2 11/22/202210.1.10†First Amendment to Restricted Stock Unit Agreement (Outperformance PSUs) between Intel and Patrick Gelsinger, dated November 18, 20228-K000-0621710.3 11/22/202210.1.11†Intel Corporation Form of Stock Option Grant Agreement under the 2006 Equity Incentive Plan (for strategic growth performance-based stock options granted to executives on or after February 1, 2019)10-Q000-0621710.7 4/26/201910.1.12†Intel Corporation Form of Non-Employee Director Restricted Stock Unit Agreement under the 2006 Equity Incentive Plan (for RSUs granted to non-employee directors on or after May 12, 2022)10-Q000-621710.3 10/28/202210.1.13†Intel Corporation 2021 Inducement PlanS-8333-25307799.1 2/12/202110.1.14†Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for time-vesting RSUs)10-Q000-0621710.3 4/23/202110.1.15†Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for optional investment matching RSUs)10-Q000-0621710.4 4/23/202110.1.16†Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for relative TSR performance-based RSUs)10-Q000-0621710.5 4/23/202110.1.17†Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for strategic growth performance-based RSUs)10-Q000-0621710.6 4/23/202110.1.18†Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for outperformance performance-based RSUs)10-Q000-0621710.7 4/23/202110.1.19†Intel Corporation Option Agreement under the 2021 Inducement Plan (for strategic growth performance-based stock options)10-Q000-0621710.8 4/23/202110.2†Intel Corporation Executive Annual Performance Bonus Plan, effective as of January 1, 20208-K000-0621710.1 1/22/202010.3†Intel Corporation Sheltered Employee Retirement Plan Plus, as amended and restated, effective January 1, 202010-Q000-0621710.34/24/202010.4†First Amendment to Intel Corporation Sheltered Employee Retirement Plan Plus dated January 1, 202010-Q000-0621710.1 7/29/202210.5†Second Amendment to Intel Corporation Sheltered Employee Retirement Plan Plus dated January 1, 202310-K000-621810.5 1/27/202310.6†Intel Corporation 2006 Employee Stock Purchase Plan, as amended and restated, effective February 12, 202210-Q000-0621710.2 4/29/202210.7†Intel Corporation 2006 Deferral Plan for Outside Directors, effective November 15, 200610-K000-0621710.41 2/26/200710.8†Form of Indemnification Agreement with Directors and Executive Officers10-K000-0621710.15 2/22/2005 Exhibit Number"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Exhibit Description",
      "prior_title": "Exhibit Description",
      "current_body": "Form 10.1.8† First Amendment to Option Agreement (Performance Options) between Intel and Patrick Gelsinger, dated November 18, 2022 10.1.9† First Amendment to Restricted Stock Unit Agreement (Strategic Growth PSUs) between Intel and Patrick Gelsinger, dated November 18, 2022 10.1.10† First Amendment to Restricted Stock Unit Agreement (Outperformance PSUs) between Intel and Patrick Gelsinger, dated November 18, 2022 10.1.11† Intel Corporation Form of Stock Option Grant Agreement under the 2006 Equity Incentive Plan (for strategic growth performance-based stock options granted to executives on or after February 1, 2019) 10.1.12† Intel Corporation Form of Non-Employee Director Restricted Stock Unit Agreement under the 2006 Equity Incentive Plan (for RSUs granted to non-employee directors on or after May 12, 2022) 10.1.13† Intel Corporation 2021 Inducement Plan 10.1.14† Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for time-vesting RSUs) 10.1.15† Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for optional investment matching RSUs) 10.1.16† Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for relative TSR performance-based RSUs) 10.1.17† Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for strategic growth performance-based RSUs) 10.1.18† Intel Corporation Restricted Stock Unit Agreement under the 2021 Inducement Plan (for outperformance performance-based RSUs) 10.1.19† Intel Corporation Option Agreement under the 2021 Inducement Plan (for strategic growth performance-based stock options) 10.2† Intel Corporation Executive Annual Performance Bonus Plan, effective as of January 1, 2020 10.3† Intel Corporation Sheltered Employee Retirement Plan Plus, as amended and restated, effective January 1, 2020 10.4† First Amendment to Intel Corporation Sheltered Employee Retirement Plan Plus dated January 1, 2020 10.5† Second Amendment to Intel Corporation Sheltered Employee Retirement Plan Plus dated January 1, 2023 10-K 000-6218 10.6† Intel Corporation 2006 Employee Stock Purchase Plan, as amended and restated, effective February 12, 2022 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 Supplemental Details119 Supplemental Details119 Supplemental Details119 119 Table of Contents Table of Contents ExhibitNumberIncorporated by ReferenceFiled orFurnishedHerewithExhibit DescriptionFormFile NumberExhibitFilingDate10.9†Form of Indemnification Agreement with Directors and Executive Officers (for Directors and Executive Officers who joined Intel after July 1, 2016)10-Q000-0621710.2 10/31/201610.10Settlement Agreement Between Advanced Micro Devices, Inc. and Intel Corporation, dated November 11, 20098-K000-0621710.1 11/12/200910.11††Patent Cross License Agreement between NVIDIA Corporation and Intel Corporation, dated January 10, 20118-K000-0621710.1 1/10/201110.12^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 LLC8-K000-0621710.1 8/23/202210.13^Amended and Restated Limited Liability Company Agreement of Arizona Fab LLC by and between Arizona Fab HoldCo Inc. and Foundry JV Holdco LLC8-K000-0621710.1 11/22/202210.14†Offer Letter between Intel Corporation and Patrick Gelsinger, dated January 13, 20218-K000-0621710.1 1/14/202110.15†Offer Letter between Intel Corporation and David A. Zinsner dated January 6, 20228-K000-0621710.1 1/10/202210.16†Offer Letter between Intel Corporation and Christoph Schell dated February 11, 2022X10.17†Offer Letter between Intel Corporation and Sandra Rivera dated October 2, 20238-K000-0621710.110/05/202321.1Intel Corporation SubsidiariesX23.1Consent of Ernst & Young LLP, Independent Registered Public Accounting FirmX31.1Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange ActX31.2Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange ActX32.1Certification 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 1350X97.1†Intel Corporation Compensation Recoupment Policy, effective October 2, 2023X99.1Supplement to Present Required Information in Searchable FormatX101Inline XBRL Document Set for the consolidated financial statements and accompanying notes in Financial Statements and Supplemental DetailsX104Cover Page Interactive Data File - formatted in Inline XBRL and included as Exhibit 101X Exhibit Number"
    },
    {
      "status": "UNCHANGED",
      "current_title": "(In Millions)",
      "prior_title": "(In Millions)",
      "current_body": "Level 1 Level 2 Level 3 US Plan Assets The investment strategy for US Pension Plan assets is to manage the funded status volatility, taking into consideration the investment horizon and expected volatility to help enable sufficient assets to be available to pay pension benefits as they come due. The allocation to each asset class will fluctuate with market conditions, such as volatility and liquidity concerns, and will typically be rebalanced when outside the target ranges, which are 91% fixed income and 9% equity investments. During 2023, the US Pension Plan assets were invested in collective investment trust funds, which are measured at net asset value. 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 Non-US Plan Assets The investments of the non-US plans are managed by insurance companies, pension funds, or third-party trustees, consistent with regulations or market practice of the country where the assets are invested. The investment manager makes investment decisions within the guidelines set by Intel or local regulations. Investments managed by qualified insurance companies or pension funds under standard contracts follow local regulations, and we are not actively involved in their investment strategies. For the assets that we have the discretion to set investment guidelines, the assets are invested in developed country equity investments and fixed-income investments, either through index funds or direct investment. In general, the investment strategy is designed to accumulate a diversified portfolio among markets, asset classes, or individual securities to reduce market risk and to help enable sufficient pension assets to be available to pay benefits as they come due. The equity investments in the non-US plan assets are invested in a diversified mix of equities of developed countries, including the US, and emerging markets throughout the world. We have control over the investment strategy related to the majority of the assets measured at net asset value, which are invested in hedge funds, bond index funds, and equity index funds. The target allocation of the non-US plan assets that we have control over was approximately 40% fixed income, 40% equity, and 20% hedge fund investments in 2023. Estimated Future Benefit Payments for Pension Benefit Plans As of December 30, 2023, estimated benefit payments over the next 10 years are as follows: (In Millions)202420252026202720282029-2033Pension benefits$95 $97 $101 $106 $109 $638"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Ending fair value of plan assets2",
      "prior_title": "Ending fair value of plan assets2",
      "current_body": "Accumulated other comprehensive loss (income), before tax3 1 The projected benefit obligation was approximately 30% in the US and 70% outside of the US as of December 30, 2023 and December 31, 2022. 2 The fair value of plan assets was approximately 40% in the US and 60% outside of the US as of December 30, 2023 and December 31, 2022. 3 The accumulated other comprehensive loss (income), before tax, was approximately 70% in the US and 30% outside of the US as of December 30, 2023 (approximately 90% in the US and 10% outside of the US as of December 31, 2022). 3 Changes in actuarial gains and losses in the projected benefit obligation are generally driven by discount rate movement. We use the corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of 10% of the larger of the projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis. As of December 30, 2023, the accumulated benefit obligations were $0.8 billion and $1.9 billion for the US plan and non-US plans, respectively. As of December 30, 2023, the US plan was in the net asset position and the other non-US plans had projected benefit obligations and accumulated benefit obligations in excess of plan assets. As of December 31, 2022, the accumulated benefit obligations were $0.9 billion and $1.6 billion for the US plan and non-US plans, respectively. As of December 31, 2022, the US and Ireland plans were in the net asset position and the other non-US plans had projected benefit obligations in excess of plan assets. As of December 31, 2022, the US, Ireland, and Israel plans had assets in excess of accumulated benefit obligations, whereas the remaining non-US plans had accumulated benefit obligations in excess of plan assets. Dec 30, 2023Dec 31, 2022Plan with accumulated benefit obligation in excess of plan assetsAccumulated benefit obligation$1,857 $559 Plan assets$1,301 $97 Plan with projected benefit obligation in excess of plan assetsProjected benefit obligation$1,976 $1,048 Plan assets$1,301 $399 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 Assumptions for Pension Benefit Plans Dec 30, 2023Dec 31, 2022Weighted average actuarial assumptions used to determine benefit obligationsDiscount rate4.5 %4.9 %Rate of compensation increase3.3 %3.7 % 202320222021Weighted average actuarial assumptions used to determine costsDiscount rate4.9 %2.2 %1.9 %Expected long-term rate of return on plan assets5.0 %3.2 %2.7 %Rate of compensation increase3.7 %3.2 %3.2 % We establish the discount rate for each pension plan by analyzing current market long-term bond rates and matching the bond maturity with the average duration of the pension liabilities. We establish the expected long-term rate of return on plan assets by developing a forward-looking, long-term return assumption for each pension fund asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. Funding Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of applicable local laws and regulations. Funding for the US Retiree Medical Plan is discretionary under applicable laws and regulations. Additional funding may be provided for the pension and retiree medical plans as deemed appropriate. On a worldwide basis, our pension and retiree medical plans were 83% funded as of December 30, 2023. The US Pension Plan, which accounts for 26% of the worldwide pension and retiree medical benefit obligations, was 107% funded. Funded status is not indicative of our ability to pay ongoing pension benefits or of our obligation to fund retirement trusts. Required pension funding for US retirement plans is determined in accordance with ERISA, which sets required minimum contributions. Cumulative company funding to the US Pension Plan currently exceeds the minimum ERISA funding requirements. Net Periodic Benefit Cost The net periodic benefit cost for pension and US retiree medical benefits was $107 million in 2023 ($139 million in 2022 and $162 million in 2021). Pension Plan Assets December 30, 2023Dec 31, 2022Fair Value Measured at Reporting Date Using(In Millions)Level 1Level 2Level 3TotalTotalEquity securities$— $383 $— $383 $297 Fixed income— 139 25 164 130 Assets measured by fair value hierarchy$— $522 $25 $547 $427 Assets measured at net asset value1,648 1,683 Cash and cash equivalents17 20 Total pension plan assets at fair value$2,212 $2,130"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Number of Stock Units Outstanding (In Millions)",
      "prior_title": "Number ofStock Units(In Millions)Weighted Average Grant-Date Fair ValueDecember 25, 2021118.0 $51.29 Granted104.2 $41.12 Vested(50.3)$48.90 Forfeited(13.2)$48.99 December 31, 2022158.7 $45.56 Expected to vest142.7 $45.78",
      "current_body": "The aggregate fair value of awards that vested in 2023 was $2.2 billion ($2.0 billion in 2022 and $1.7 billion in 2021), which represents the market value of our common stock on the date that the RSUs vested. The grant-date fair value of awards that vested in 2023 was $2.7 billion ($2.5 billion in 2022 and $1.4 billion in 2021). The number of RSUs vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated future forfeitures. As of December 30, 2023, unrecognized compensation costs related to RSUs granted under our equity incentive plans were $4.0 billion. We expect to recognize those costs over a weighted average period of 1.3 years. Stock Purchase Plan The 2006 ESPP allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific dates. Under the 2006 ESPP, 523 million shares of common stock are authorized for issuance through August 2026. As of December 30, 2023, 157 million shares of common stock remained available for issuance. Employees purchased 43 million shares of common stock in 2023 for $1.0 billion under the 2006 ESPP (27 million shares of common stock for $931 million in 2022 and 22 million shares of common stock for $925 million in 2021). As of December 30, 2023, unrecognized share-based compensation costs related to rights to acquire shares of common stock under the 2006 ESPP totaled $57 million. We expect to recognize those costs over a period of approximately two months. 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 Note 19 : Commitments and Contingencies Leases We recognized operating leased assets in other long-term assets of $505 million and corresponding accrued liabilities of $142 million, and other long-term liabilities of $289 million as of December 30, 2023. Our operating leases have remaining terms of 1 to 13 years and may include options to extend the leases for up to 38 years. The weighted average remaining lease term was 6.0 years, and the weighted average discount rate was 5.0% as of December 30, 2023, for our operating leases. other long-term assets Operating lease expense was $407 million in 2023 ($729 million in 2022 and $798 million in 2021), including $213 million in variable lease expense in 2023 ($551 million in 2022 and $620 million in 2021). In 2022 and 2021, we signed finance leases for supplier capacity. The leases will commence upon start of supplier production and will have a weighted average remaining lease term of 6.0 years upon commencement. We recognized finance leased assets in property, plant, and equipment of $619 million as of December 30, 2023 ($430 million as of December 31, 2022). Discounted and undiscounted lease payments under non-cancelable leases as of December 30, 2023 were as follows: (In Millions)20242025202620272028 ThereafterTotalOperating lease payments$149 $110 $62 $44 $31 $103 $499 Finance lease payments$480 $70 $— $— $— $— $550 Present value of lease payments$978 Commitments Commitments for capital expenditures totaled $27.5 billion as of December 30, 2023, ($31.0 billion as of December 31, 2022), a substantial majority of which will be due within the next 12 months. Other purchase obligations and commitments totaled approximately $8.3 billion as of December 30, 2023 (approximately $10.7 billion as of December 31, 2022). Other purchase obligations and commitments include payments due under supply agreements and various types of licenses and agreements to purchase goods or services. Contractual obligations for purchases of goods or services relate to agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Other purchase obligations reflect the non-cancelable portion or the minimum cancellation fee under the agreement. Other purchase commitments also include our unrecognized commitment to fund our respective share of the total construction costs of $29.0 billion of Arizona Fab in connection with the definitive agreement entered into with Brookfield. Our remaining unfunded contribution was $12.3 billion as of December 30, 2023. Legal Proceedings We are regularly party to various ongoing claims, litigation, and other proceedings, including those noted in this section. As of December 30, 2023, we have accrued a charge of $1.0 billion related to litigation involving VLSI and a charge of $401 million related to an EC-imposed fine, both as described below. Excluding the VLSI claims described below, management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends; however, legal proceedings and related government investigations are subject to inherent uncertainties, and unfavorable rulings, excessive verdicts, or other events could occur. Unfavorable resolutions could include substantial monetary damages, fines, or penalties. Certain of these outstanding matters include speculative, substantial, or indeterminate monetary awards. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices, or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends. We might also conclude that settling one or more such matters is in the best interests of our stockholders, employees, and customers, and any such settlement could include substantial payments. Except as specifically described below, we have not concluded that settlement of any of the legal proceedings noted in this section is appropriate at this time. European Commission Competition Matter In 2009, the EC found that we had used unfair business practices to persuade customers to buy microprocessors in violation of Article 82 of the EC Treaty (later renumbered Article 102) and Article 54 of the European Economic Area Agreement. In general, the EC found that we violated Article 82 by offering alleged “conditional rebates and payments” that required customers to purchase all or most of their x86 microprocessors from us and by making alleged “payments to prevent sales of specific rival products.” The EC ordered us to end the alleged infringement referred to in its decision and imposed a €1.1 billion fine, which we paid in the third quarter of 2009. Financial StatementsNotes to Consolidated Financial Statements108 Financial StatementsNotes to Consolidated Financial Statements108 Financial StatementsNotes to Consolidated Financial Statements108 Notes to Consolidated Financial Statements 108 Table of Contents Table of Contents We appealed the EC decision to the European Court of Justice in 2014, after the General Court (then called the Court of First Instance) rejected our appeal of the EC decision in its entirety. In September 2017, the Court of Justice sent the case back to the General Court to examine whether the rebates at issue were capable of restricting competition. In January 2022, the General Court annulled the EC’s 2009 findings against us regarding rebates, as well as the €1.1 billion fine imposed on Intel, which was returned to us in February 2022. The General Court’s January 2022 decision did not annul the EC’s 2009 finding that we made payments to prevent sales of specific rival products. In April 2022, the EC appealed the General Court’s decision to the Court of Justice. In addition, in September 2023 the EC imposed a €376 million ($401 million) fine against us based on its finding that we made payments to prevent sales of specific rival products. We have appealed the EC’s decision. We have accrued a charge for the fine and are unable to make a reasonable estimate of the potential loss or range of losses in excess of this amount given the procedural posture and the nature of these proceedings. In a related matter, in April 2022 we filed applications with the General Court seeking an order requiring the EC to pay us approximately €593 million in default interest on the original €1.1 billion fine that was held by the EC for 12 years, which applications have been stayed pending the EC’s appeal of the General Court’s January 2022 decision. Litigation Related to Security Vulnerabilities In June 2017, a Google research team notified Intel and other companies that it had identified security vulnerabilities, the first variants of which are now commonly referred to as “Spectre” and “Meltdown,” that affect many types of microprocessors, including our products. As is standard when findings like these are presented, we worked together with other companies in the industry to verify the research and develop and validate software and firmware updates for impacted technologies. In January 2018, information on the security vulnerabilities was publicly reported, before software and firmware updates to address the vulnerabilities were made widely available. As of January 24, 2024, consumer class action lawsuits against us were pending in the US, Canada, and Argentina. The plaintiffs, who purport to represent various classes of purchasers of our products, generally claim to have been harmed by our actions and/or omissions in connection with Spectre, Meltdown, and other variants of this class of security vulnerabilities that have been identified since 2018, and assert a variety of common law and statutory claims seeking monetary damages and equitable relief. In the US, class action suits filed in various jurisdictions were consolidated for all pretrial proceedings in the US District Court for the District of Oregon, which entered final judgment in favor of Intel in July 2022 based on plaintiffs’ failure to plead a viable claim. Plaintiffs appealed, and in November 2023 the Ninth Circuit Court of Appeals affirmed the district court’s judgment. In Canada, an initial status conference has not yet been scheduled in one case relating to Spectre and Meltdown pending in the Superior Court of Justice of Ontario, and a stay of a second case pending in the Superior Court of Justice of Quebec is in effect. In Argentina, Intel Argentina was served with, and responded to, a class action complaint relating to Spectre and Meltdown in June 2022. The Argentinian court dismissed plaintiffs’ claims for lack of standing in May 2023, and plaintiffs have appealed. In November 2023, new plaintiffs filed a consumer class action complaint in the US District Court for the Northern District of California with respect to a further vulnerability variant disclosed in August 2023 and commonly referred to as “Downfall.” We moved to dismiss that complaint in January 2024. Additional lawsuits and claims may be asserted seeking monetary damages or other related relief. Given the procedural posture and the nature of these cases, including that the pending proceedings are in the early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class or classes being certified or the ultimate size of any class or classes if certified, and that there are significant factual and legal issues to be resolved, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from these matters. Litigation Related to 7nm Product Delay Announcement Multiple securities class action lawsuits were filed in the US District Court for the Northern District of California against us and certain officers following our July 2020 announcement of 7nm product delays. The court consolidated the lawsuits and appointed lead plaintiffs in October 2020, and in January 2021 plaintiffs filed a consolidated complaint. Plaintiffs purport to represent all persons who purchased or otherwise acquired our common stock from October 25, 2019 through October 23, 2020, and they generally allege that defendants violated the federal securities laws by making false or misleading statements about the timeline for 7nm products. In March 2023, the court granted the defendants’ motion to dismiss the consolidated complaint, and in April 2023 entered judgment. Plaintiffs have appealed. Given the procedural posture and the nature of the case, including that it is in the early stages, that alleged damages have not been specified, that uncertainty exists as to the likelihood of a class being certified or the ultimate size of any class if certified, and that there are significant factual and legal issues to be resolved, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from the matter. In July 2021, we introduced a new process node naming structure, and the 7nm process is now called Intel 4. Litigation Related to Patent and IP Claims We have had IP infringement lawsuits filed against us, including but not limited to those discussed below. Most involve claims that certain of our products, services, and technologies infringe others' IP rights. Adverse results in these lawsuits may include awards of substantial fines and penalties, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services. As a result, we may have to change our business practices, and develop non-infringing products or technologies, which could result in a loss of revenue for us and otherwise harm our business. In addition, certain agreements with our customers require us to indemnify them against certain IP infringement claims, which can increase our costs as a result of defending such claims, and may require that we pay significant damages, accept product returns, or supply our customers with non-infringing products if there were an adverse ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenue and adversely affect our business. Financial StatementsNotes to Consolidated Financial Statements109 Financial StatementsNotes to Consolidated Financial Statements109 Financial StatementsNotes to Consolidated Financial Statements109 Notes to Consolidated Financial Statements 109 Table of Contents Table of Contents VLSI Technology LLC v. Intel In October 2017, VLSI Technology LLC (VLSI) filed a complaint against us in the US District Court for the Northern District of California alleging that various Intel FPGA and processor products infringe eight patents VLSI acquired from NXP Semiconductors, N.V. (NXP). VLSI granted Intel a covenant not to sue on the two patents the court said can proceed to trial as it appeals losses it suffered earlier in the case on three other patents. VLSI has requested that the judge take the trial scheduled for March 2024 off calendar. In April 2019, VLSI filed three infringement suits against us in the US District Court for the Western District of Texas accusing various of our processors of infringement of eight additional patents it had acquired from NXP: ▪The first Texas case went to trial in February 2021, and the jury awarded VLSI $1.5 billion for literal infringement of one patent and $675 million for infringement of another patent under the doctrine of equivalents. In April 2022, the court entered final judgment, awarding VLSI $2.1 billion in damages and approximately $162.3 million in pre-judgment and post-judgment interest. We appealed the judgment to the Federal Circuit Court of Appeals, including the court’s rejection of Intel’s claim to have a license from Fortress Investment Group’s acquisition of Finjan. The Federal Circuit Court heard oral argument in October 2023. In December 2023, the Federal Circuit reversed the finding of infringement as to the patent for which VLSI was awarded $675 million. The Federal Circuit affirmed the finding of infringement as to the patent for which VLSI had been awarded $1.5 billion, but vacated the damages award and will send the case back to the trial court for further damages proceedings on that patent. The Federal Circuit also ruled that Intel can advance the defense that it is licensed to VLSI’s patents. In December 2021 and January 2022 the PTAB instituted IPRs on the claims found to have been infringed in the first Texas case, and in May and June 2023 found all of those claims unpatentable; VLSI has appealed the PTAB’s decision. ▪The second Texas case went to trial in April 2021, and the jury found that we do not infringe the asserted patents. VLSI had sought approximately $3.0 billion for alleged infringement, plus enhanced damages for willful infringement. The court has not yet entered final judgment. ▪The third Texas case went to trial in November 2022, with VLSI asserting one remaining patent. The jury found the patent valid and infringed, and awarded VLSI approximately $949 million in damages, plus interest and a running royalty. The court has not yet entered final judgment. In February 2023, we filed motions for a new trial and for judgment as a matter of law notwithstanding the verdict on various grounds. Further appeals are possible. In May 2019, VLSI filed a case in Shenzhen Intermediate People’s Court against Intel, Intel (China) Co., Ltd., Intel Trading (Shanghai) Co., Ltd., and Intel Products (Chengdu) Co., Ltd. VLSI asserted one patent against certain Intel Core processors. Defendants filed an invalidation petition in October 2019 with the China National Intellectual Property Administration (CNIPA) which held a hearing in September 2021. The Shenzhen court held trial proceedings in July 2021, and September 2023. VLSI sought an injunction as well as RMB 1.3 million in costs and expenses, but no damages. In September 2023, the CNIPA invalidated every claim of the asserted patent. In November 2023, the trial court dismissed VLSI’s case. In May 2019, VLSI filed a case in Shanghai Intellectual Property Court against Intel (China) Co., Ltd., Intel Trading (Shanghai) Co., Ltd., and Intel Products (Chengdu) Co., Ltd. asserting one patent against certain Intel core processors. The court held a trial hearing in December 2020, where VLSI requested expenses (RMB 300 thousand) and an injunction. In December 2022, we filed a petition to invalidate the patent at issue. The court held a second trial hearing in May 2022, and in October 2023, issued a decision finding no infringement and dismissing all claims. In November 2023, VLSI appealed the finding of non-infringement. As a result of recent developments in the VLSI litigation, we revised our loss exposure estimate and reduced our previously accrued charge of $2.2 billion to approximately $1.0 billion. While we dispute VLSI’s claims and intend to vigorously defend against them, we are unable to make a reasonable estimate of losses in excess of recorded amounts given recent developments and future proceedings. R2 Semiconductor Patent Litigation In November 2022, R2 Semiconductor, Inc. (R2) filed a lawsuit in the High Court of Justice in the UK against Intel Corporation (UK) Limited and Intel Corporation, and a lawsuit in the Dusseldorf Regional Court in Germany against Intel Deutschland GmbH and certain Intel customers. R2 asserts one European patent is infringed by Intel’s Ice Lake, Tiger Lake, Alder Lake and Ice Lake Server (Xeon) processors (the accused products), and customer servers and laptops that contain those processors. R2 seeks an injunction in both actions prohibiting the sale and requiring the recall of the alleged infringing products. Intel is indemnifying its customers in the German lawsuit. Intel disputes R2’s claims and intends to defend the lawsuits vigorously. In December 2022, Intel responded in the UK action that the asserted patent is not infringed and that the patent is invalid. In April 2023, defendants filed statements of defense in the German action that the asserted patent is not infringed and that an injunction would be a disproportionate remedy. In May 2023, defendants also filed a nullity action in the German Federal Patent Court on the ground that the asserted patent is invalid. 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 In December 2023, the German Federal Patent Court issued a preliminary opinion finding R2’s patent valid. The German Federal Patent Court’s final decision on invalidity is expected in October 2024. In December 2023, the court in Dusseldorf held a trial on the issue of infringement, and will hand down a decision in February 2024. If defendants lose at trial in Germany, the Dusseldorf Regional Court could impose an injunction and recall order prohibiting sales of some or all of the accused products, and potentially other products, in Germany. The order could take effect and remain in place unless overturned on appeal, or unless the patent is invalidated by the German Federal Patent Court. Trial in the UK matter is scheduled for April 2024. Given the procedural posture and the nature of these cases, including that there are significant factual and legal issues to be resolved and that uncertainty exists as to the scope of an injunction, if any, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from these lawsuits. Business Interruption Insurance Proceeds We received $484 million of insurance proceeds, primarily in the fourth quarter of 2022, to compensate for business interruption and property damage from a temporary electrical breakdown that occurred at one of our facilities in 2020. We recognized these receipts as a reduction of cost of sales. We received $484 million of insurance proceeds, primarily in the fourth quarter of 2022, to compensate for business interruption and property damage from a temporary electrical breakdown that occurred at one of our facilities in 2020. We recognized these receipts as a reduction of cost of sales cost of sales Financial StatementsNotes to Consolidated Financial Statements111 Financial StatementsNotes to Consolidated Financial Statements111 Financial StatementsNotes to Consolidated Financial Statements111 Notes to Consolidated Financial Statements 111 Table of Contents Table of Contents Key Terms Key Terms We use terms throughout our document that are specific to Intel or that are abbreviations that may not be commonly known or used. Below is a list of these terms used in our document. TermDefinition2006 ESPP2006 Employee Stock Purchase Plan2006 Plan2006 Equity Incentive Plan5GThe fifth-generation mobile network, which brings dramatic improvements in network speeds and latency, and which we view as a transformative technology and opportunity for many industriesADASAdvanced driver-assistance systemsAIArtificial intelligenceAMaaSAutonomous Mobility as a Service ARMAdvanced RISC machineASICApplication-specific integrated circuitASPAverage selling priceAVAutonomous vehicleAXGAdvanced Computing and Graphics operating segmentBain CapitalBain Capital Special SituationsBEPSBase Erosion and Profit ShiftingCAGRCompound annual growth rateCCGClient Computing Group operating segmentCDPA nonprofit organization that runs a global disclosure system for investors, companies, cities, states, and regions to manage their environmental impactsCEOChief executive officerCFOChief financial officerCODMChief operating decision makerCOVID-19The infectious disease caused by coronavirus (aka SARS-CoV-2), which was declared a global pandemic by the World Health OrganizationCPUProcessor or central processing unitCSPCloud service providerCXLCompute Express Link, an open standard for high-speed CPU-to-device and CPU-to-memory connectionsDCAIData Center and Artificial Intelligence operating segmentECEuropean CommissionEDAElectronic design automation, tools used to design and verify electronic systems, such as integrated circuits and printed circuit boardsEdge computing or intelligent edgeThe placement of resources to move, store, and process data closer to where data is generated and consumedEEO-1EEO-1 Component 1 report, a mandatory annual data collection that requires employers meeting certain criteria to submit demographic workforce data, including data by race/ethnicity, sex, and job categories. ERPEnterprise Resource PlanningEPSEarnings per shareERISAEmployee Retirement Income Security ActESGEnvironmental, social, and governanceEUVExtreme ultraviolet lithographyExchange ActSecurities Exchange Act of 1934Form 10-KAnnual Report on Form 10-K for the year ended December 30, 2023FoverosIntel's high-performance three-dimensional stacked chip architectureFPGAField-programmable gate arrayGenAIGenerative AI refers to deep-learning models that can generate high-quality text, images, and other content based on the data they were trained onGPUGraphics processing unitGRIGlobal Reporting InitiativeHPCHigh-performance computingIDMIntegrated device manufacturer, a semiconductor company that both designs and builds chipsIntelIntel Corporation The placement of resources to move, store, and process data closer to where data is generated and consumed ERP Enterprise Resource Planning Intel's high-performance three-dimensional stacked chip architecture GRI Global Reporting Initiative Integrated device manufacturer, a semiconductor company that both designs and builds chips Supplemental Details112 Supplemental Details112 Supplemental Details112 112 Table of Contents Table of Contents IFSIntel Foundry Services operating segmentIMSIMS Nanofabrication GmbH, a business within IFS that develops and produces electron-beam systems for the semiconductor industryInternet of ThingsThe Internet of Things market in which we sell our NEX and Mobileye productsIPIntellectual propertyIPOInitial public offeringIPUInfrastructure processing unit, a programmable networking device designed to enable cloud and communication service providers to reduce overhead and free up performance for CPUs ISVIndependent software vendorkWhKilowatt-hourMaaSMobility as a ServiceMD&AManagement's Discussion and AnalysisMG&AMarketing, general, and administrativeNANDNAND flash memoryNetwork XeonPart of the Intel Xeon processor family designed for network and edge solutionsNEXNetworking and Edge operating segmentnmNanometerNPUNeural processing unitOECDOrganization for Economic Co-operation and DevelopmentOEMOriginal equipment manufactureroneAPIOpen, cross-architecture programming model that frees developers to use a single code base across multiple architecturesOKRObjective and key results, a goal-setting method used widely across industries as a proven approach to setting and achieving challenging goalsPRQProduct release qualification, the milestone when costs to manufacture a product are included in inventory valuationPSGProgrammable Solutions GroupPSUPerformance stock unitRANRadio access networkR&DResearch and developmentRDFVReadily determinable fair valueRSU Restricted stock unitSaaSSoftware as a ServiceSASBSustainability Accounting Standards BoardSCIPSemiconductor Co-Investment ProgramSECUS Securities and Exchange CommissionSoCA system on a chip, which integrates most of the components of a computer or other electronic system into a single silicon chip. We offer a range of SoC products in CCG, DCAI, and NEX. Our DCAI and NEX businesses offer SoCs across many market segments for a variety of applications, including products targeted for 5G base stations and network infrastructureSOFRSecured Overnight Financing Rate, a benchmark interest rate for US-dollar-denominated derivatives and loans, replacing LIBORTAMTotal addressable marketTax ReformUS Tax Cuts and Jobs Act TCFDTask Force on Climate-Related Financial DisclosuresTowerTower Semiconductor LtdTSMCTaiwan Semiconductor Manufacturing CompanyTSRTotal stockholder returnUS GAAPUS Generally Accepted Accounting Principles USMAGUnited States Military, Aerospace, and GovernmentUS Pension PlanUS Intel Minimum Pension PlanUS Retiree Medical PlanUS Postretirement Medical Benefits PlanVIEVariable interest entityvRANVirtualized radio access networkxPUA term for processors that are designed for one of four major computing architectures: CPU, GPU, AI accelerator, and FPGA Organization for Economic Co-operation and Development Tower Semiconductor Ltd Supplemental Details113 Supplemental Details113 Supplemental Details113 113 Table of Contents Table of Contents Supplemental Details114 Supplemental Details114 Supplemental Details114 114 Table of Contents Table of Contents Controls and ProceduresInherent Limitations on Effectiveness of Controls Controls and Procedures Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well-designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. Evaluation of Disclosure Controls and Procedures Based on management's evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Changes in Internal Control Over Financial Reporting There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of Consolidated Financial Statements for external purposes in accordance with US GAAP. Management assessed our internal control over financial reporting as of December 30, 2023. Management based its assessment on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Management's assessment included evaluation of elements such as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies, and our overall control environment. Based on this assessment, management has concluded that our internal control over financial reporting was effective as of the end of the fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements for external reporting purposes in accordance with US GAAP. We reviewed the results of management's assessment with the Audit Committee of our Board of Directors. Our independent registered public accounting firm, Ernst & Young LLP, independently assessed the effectiveness of the company's internal control over financial reporting, as stated in the firm's attestation report, which is included within Financial Statements and Supplemental Details. Supplemental Details115 Supplemental Details115 Supplemental Details115 115 Table of Contents Table of Contents Exhibits Exhibits 1.Financial Statements: See \"Index to Consolidated Financial Statements\" within the Consolidated Financial Statements. 2.Financial Statement Schedules: Not applicable or the required information is otherwise included in the Consolidated Financial Statements and accompanying notes. 3.Exhibits: The exhibits listed in the accompanying index to exhibits are filed, furnished, or incorporated by reference as part of this Form 10-K. Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that have been made solely for the benefit of the parties to the agreement. These representations and warranties: ▪may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, which disclosures are not necessarily reflected in the agreements; ▪may apply standards of materiality that differ from those of a reasonable investor; and ▪were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed circumstances. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date that these representations and warranties were made or at any other time. Investors should not rely on them as statements of fact. Supplemental Details116 Supplemental Details116 Supplemental Details116 116 Table of Contents Table of Contents Exhibit Index ExhibitNumberIncorporated by ReferenceFiled orFurnishedHerewithExhibit DescriptionFormFile NumberExhibitFilingDate2.1Master Purchase Agreement between Intel Corporation and SK hynix Inc., dated as of October 19, 20208-K000-062172.1 10/20/20203.1Corrected Third Restated Certificate of Incorporation of Intel Corporation, dated October 23, 202310-Q000-062173.1 10/27/20233.2Intel Corporation Bylaws, as amended and restated on November 29, 20238-K000-062173.2 12/5/20234.1Indenture dated as of March 29, 2006 between Intel Corporation and Wells Fargo Bank, National Association (as successor to Citibank N.A.) (the \"Open-Ended Indenture\")S-3ASR333-1328654.4 3/30/20064.2First Supplemental Indenture to Open-Ended Indenture, dated as of December 3, 200710-K000-062174.2.42/20/20084.3Second Supplemental Indenture to Open-Ended Indenture for the Registrant's 1.95% Senior Notes due 2016, 3.30% Senior Notes due 2021, and 4.80% Senior Notes due 2041, dated as of September 19, 20118-K000-062174.01 9/19/20114.4Third Supplemental Indenture to Open-Ended Indenture for the Registrant's 1.35% Senior Notes due 2017, 2.70% Senior Notes due 2022, 4.00% Senior Notes due 2032, and 4.25% Senior Notes due 2042, dated as of December 11, 20128-K000-062174.01 12/11/20124.5Fourth Supplemental Indenture to Open-Ended Indenture for the Registrant's 4.25% Senior Notes due 2042, dated as of December 14, 20128-K000-062174.01 12/14/20124.6Fifth Supplemental Indenture to Open-Ended Indenture, dated as of July 29, 2015, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 7/29/20154.7Eighth Supplemental Indenture to Open-Ended Indenture, dated as of May 19, 2016, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 5/19/20164.8Ninth Supplemental Indenture to Open-Ended Indenture, dated as of May 11, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 5/11/20174.9Tenth Supplemental Indenture to Open-Ended Indenture, dated as of June 16, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee8-K000-062174.1 6/16/20174.10Eleventh Supplemental Indenture to Open-Ended Indenture, dated as of August 14, 2017, among Intel Corporation, Wells Fargo Bank, National Association, as successor trustee, and Elavon Financial Services DAC, UK Branch, as paying agent8-K000-062174.1 8/14/20174.11Twelfth Supplemental Indenture to Open-Ended Indenture, dated as of December 8, 2017, between Intel Corporation and Wells Fargo Bank, National Association, as successor trustee10-K000-062174.2.132/16/2018 Exhibit Number"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Property, plant, and equipment, net",
      "prior_title": "Current Title",
      "current_body": "See accompanying notes. Financial StatementsConsolidated Balance Sheets76 Financial StatementsConsolidated Balance Sheets76 Financial StatementsConsolidated Balance Sheets76 76 Table of Contents Table of Contents Consolidated Statements of Cash Flows Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Cash and cash equivalents, beginning of period$11,144 $4,827 $5,865 Cash flows provided by (used for) operating activities:Net income1,675 8,017 19,868 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation7,847 11,128 9,953 Share-based compensation3,229 3,128 2,036 Restructuring and other charges(424)1,074 2,626 Amortization of intangibles1,755 1,907 1,839 (Gains) losses on equity investments, net(42)(4,254)(1,458)(Gains) losses on divestitures— (1,059)— Changes in assets and liabilities:Accounts receivable731 5,327 (2,674)Inventories2,097 (2,436)(2,339)Accounts payable(801)(29)1,190 Accrued compensation and benefits(614)(1,533)515 Prepaid customer supply agreements— (24)(1,583)Income taxes(3,531)(4,535)(441)Other assets and liabilities(451)(1,278)(76)Total adjustments9,796 7,416 9,588 Net cash provided by operating activities11,471 15,433 29,456 Cash flows provided by (used for) investing activities:Additions to property, plant, and equipment(25,750)(24,844)(18,733)Additions to held for sale NAND property, plant, and equipment— (206)(1,596)Proceeds from capital-related government incentives1,011 246 166 Purchase of short-term investments(44,414)(43,647)(40,554)Maturities and sales of short-term investments44,077 48,730 35,299 Purchases of equity investments(399)(510)(613)Sales of equity investments472 4,961 581 Proceeds from divestitures— 6,579 — Other investing962 (1,540)1,167 Net cash used for investing activities(24,041)(10,231)(24,283)Cash flows provided by (used for) financing activities:Issuance of commercial paper, net of issuance costs— 3,945 — Repayment of commercial paper(3,944)— — Payments on finance leases(96)(345)— Partner contributions1,511 874 — Proceeds from sales of subsidiary shares2,959 1,032 — Issuance of long-term debt, net of issuance costs11,391 6,548 4,974 Repayment of debt(423)(4,984)(2,500)Proceeds from sales of common stock through employee equity incentive plans1,042 977 1,020 Repurchase of common stock— — (2,415)Payment of dividends to stockholders(3,088)(5,997)(5,644)Other financing(847)(935)(1,646)Net cash provided by (used for) financing activities8,505 1,115 (6,211)Net increase (decrease) in cash and cash equivalents(4,065)6,317 (1,038)Cash and cash equivalents, end of period$7,079 $11,144 $4,827 Supplemental disclosures:Acquisition of property, plant, and equipment included in accounts payable and accrued liabilities$4,804 $5,431 $1,619 Cash paid during the year for:Interest, net of capitalized interest$613 $459 $545 Income taxes, net of refunds$2,621 $4,282 $2,263 See accompanying notes. Financial StatementsConsolidated Statements of Cash Flows77 Financial StatementsConsolidated Statements of Cash Flows77 Financial StatementsConsolidated Statements of Cash Flows77 77 Table of Contents Table of Contents Consolidated Statements of Stockholders' Equity Common Stock and Capitalin Excess of Par ValueAccumulatedOtherComprehensiveIncome (Loss)RetainedEarningsNon-Controlling InterestsTotal(In Millions, Except Per Share Amounts)Number ofSharesAmountBalance as of December 26, 20204,062 $25,556 $(751)$56,233 $— $81,038 Adjustment to opening balance for change in accounting principle35 35 Opening Balance as of December 27, 20204,062 25,556 (751)56,268 — 81,073 Net income (loss)— — — 19,868 — 19,868 Other comprehensive income (loss)— —(129)—— (129)Employee equity incentive plans and other54 1,022 — —— 1,022 Share-based compensation— 2,036 ——— 2,036 Repurchase of common stock(40)(249) — (2,166)— (2,415)Restricted stock unit withholdings(6)(359) — (61)— (420)Cash dividends declared ($1.39 per share of common stock)— — — (5,644)— (5,644)Balance as of December 25, 20214,070 28,006 (880)68,265 — 95,391 Net income (loss)— — — 8,014 3 8,017 Other comprehensive income (loss)— —318 —— 318 Proceeds from sales of subsidiary shares and partner contributions— 75 —— 1,831 1,906 Employee equity incentive plans and other79 1,009 — —— 1,009 Share-based compensation— 3,099 — —29 3,128 Restricted stock unit withholdings(12)(609) — 123 — (486)Cash dividends declared ($1.46 per share of common stock)— — — (5,997)— (5,997)Balance as of December 31, 20224,137 31,580 (562)70,405 1,863 103,286 Net income (loss)— ——1,689 (14)1,675 Other comprehensive income (loss)— —347 —— 347 Proceeds from sales of subsidiary shares and partner contributions— 1,620 —— 2,385 4,005 Employee equity incentive plans and other107 1,044 —— — 1,044 Share-based compensation— 3,088 ——141 3,229 Restricted stock unit withholdings(16)(683)—150 — (533)Cash dividends declared ($0.74 per share of common stock)— ——(3,088)— (3,088)Balance as of December 30, 20234,228 $36,649 $(215)$69,156 $4,375 $109,965 See accompanying notes. Financial StatementsConsolidated Statements of Stockholders' Equity78 Financial StatementsConsolidated Statements of Stockholders' Equity78 Financial StatementsConsolidated Statements of Stockholders' Equity78 78 Table of Contents Table of Contents Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements Note 1 : Basis of Presentation We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal years 2023 and 2021 were 52-week fiscal years; 2022 was a 53-week fiscal year. Fiscal 2024 is a 52-week fiscal year. Our Consolidated Financial Statements include the accounts of Intel and our wholly owned and majority-owned subsidiaries, which include entities consolidated under the variable interest and voting interest models. We have eliminated intercompany accounts and transactions. We have reclassified certain prior period amounts to conform to current period presentation. Use of Estimates The preparation of Consolidated Financial Statements in conformity with US GAAP requires us to make estimates and judgments that affect the amounts reported in our Consolidated Financial Statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. Note 2 : Accounting Policies Revenue Recognition We recognize net product revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. Substantially all of our revenue is derived from product sales. Our products often include a software component, such as firmware, that is highly interdependent and interrelated with the product and is substantially accounted for as a combined performance obligation. In accordance with contract terms, the revenue for combined performance obligations and standalone product sales is recognized at the time of product shipment from our facilities or delivery to the customer location, as determined by the agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists primarily of various sales price concessions, by estimating the most likely amount of consideration we expect to receive from the customer based on historical analysis of customer purchase volumes. Sales rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued liabilities. We make payments to our customers through cooperative advertising programs for marketing activities for some of our products. We generally record the payment as a reduction in revenue in the period that the revenue is earned, unless the payment is for a distinct service, which we record as an expense when the marketing activities occur. Inventories We compute inventory cost on a first-in, first-out basis. Our process and product development life cycle corresponds with substantive engineering milestones. These engineering milestones are regularly and consistently applied in assessing the point at which our activities and associated costs change in nature from R&D to cost of sales, and when cost of sales can be capitalized as inventory. For a product to be manufactured in high volumes and sold to our customers under our standard warranty, it must meet our rigorous technical quality specifications. This milestone is known as PRQ. We have identified PRQ as the point at which the costs incurred to manufacture our products are included in the valuation of inventory. A single PRQ has previously valued inventory up to $870 million in the quarter the PRQ milestone was achieved. Prior to PRQ, costs that do not meet the criteria for R&D are included in cost of sales in the period incurred. The valuation of inventory includes determining which fixed production overhead costs can be included in inventory based on the normal capacity of our manufacturing and assembly and test facilities. We apply our historical loading compared to our total available capacity in a statistical model to determine our expectations of normal capacity level. If the factory loading is below the established normal capacity level, a portion of our fixed production overhead costs would not be included in the cost of inventory; instead, it would be recognized as cost of sales in that period. We refer to these costs as excess capacity charges. Excess capacity charges were $834 million in 2023, $423 million in 2022, and insignificant in 2021. Inventory is valued at the lower of cost or net realizable value, based upon assumptions about future demand and market conditions. Product-specific facts and circumstances reviewed in the inventory valuation process include a review of our customer base, the stage of the product life cycle, variations in market pricing, and an assessment of selling price in relation to product cost. Lower of cost or net realizable value inventory reserves fluctuate as we ramp new process technologies, with costs generally improving over time due to scale and improved yields. Additionally, inventory valuation is impacted by cyclical changes in market conditions and the associated pricing environment. Financial StatementsNotes to Consolidated Financial Statements79 Financial StatementsNotes to Consolidated Financial Statements79 Financial StatementsNotes to Consolidated Financial Statements79 Notes to Consolidated Financial Statements 79 Table of Contents Table of Contents The valuation of inventory also requires us to estimate obsolete and excess inventory, as well as inventory that is not of saleable quality. We use a demand forecast to develop our short-term manufacturing plans to enable consistency between inventory valuations and build decisions. For certain new products, we have limited historical data when developing these demand forecasts. We compare the estimate of future demand to work in process and finished goods inventory levels to determine the amount, if any, of obsolete or excess inventory. When our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, we write off amounts considered to be excess inventory. Long-Lived Assets Property, Plant, and Equipment We compute depreciation using the straight-line method over the estimated useful life of assets. We also capitalize interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together with that asset cost. At least annually, we evaluate the period over which we expect to recover the economic value of our property, plant, and equipment, considering factors such as the process technology cadence between node transitions, changes in machinery and equipment technology, and re-use of machinery and tools across each generation of process technology. As we make manufacturing process conversions and other factory planning decisions, we use assumptions involving the use of management judgments regarding the remaining useful lives of assets, primarily process-specific semiconductor manufacturing tools and building improvements. When we determine that the useful lives of assets are shorter or longer than we had originally estimated, we adjust the rate of depreciation to reflect the assets' revised useful lives. Effective January 2023, the estimated useful lives of certain machinery and equipment in our wafer fabrication facilities were increased from 5 to 8 years. This change in estimate was applied prospectively beginning in the first quarter of 2023. Assets are categorized and evaluated for impairment at the lowest level of identifiable cash flows. Factors that we consider in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in our use and fungibility of the assets. If an asset grouping carrying value is not recoverable through the related undiscounted cash flows, the asset grouping is considered to be impaired. Identified Intangible Assets We amortize acquisition-related intangible assets that are subject to amortization over their estimated useful lives. Acquisition-related, in-process R&D assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of acquisition; initially, these are classified as in-process R&D and are not subject to amortization. Once these R&D projects are completed, the asset balances are transferred from in-process R&D to acquisition-related developed technology and are subject to amortization from that point forward. The asset balances relating to projects that are abandoned after acquisition are impaired and expensed to R&D. We perform periodic reviews of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. Periodically, we also evaluate the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. We may adjust the period over which these assets are amortized to reflect the period in which they contribute to our cash flows. Goodwill Our reporting units are the same as our operating segments. We evaluate our reporting units annually or when triggered, such as upon reorganization of our operating segments. We perform an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. The reporting unit's carrying value used in an impairment assessment represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments, and debt. The impairment assessment may include both qualitative and quantitative factors to assess the likelihood of an impairment. Qualitative factors used include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting unit. We may also perform a quantitative analysis to support the qualitative factors by applying sensitivities to assumptions and inputs used in measuring a reporting unit's fair value. Our quantitative impairment assessment considers both the income approach and the market approach to estimate a reporting unit's fair value. Significant estimates include market segment growth rates, our assumed market segment share, estimated gross margins, operating expenses, and discount rates based on a reporting unit's weighted average cost of capital. We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. These estimates change from year to year based on operating results, market conditions, and other factors and could materially affect the determination of each reporting unit's fair value and potential goodwill impairment for each reporting unit. Our quantitative assessment is sensitive to changes in underlying estimates and assumptions, the most sensitive of which is the discount rate. Financial StatementsNotes to Consolidated Financial Statements80 Financial StatementsNotes to Consolidated Financial Statements80 Financial StatementsNotes to Consolidated Financial Statements80 Notes to Consolidated Financial Statements 80 Table of Contents Table of Contents We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. In 2023, the fair value for all of our reporting units exceeded their carrying value, and our annual qualitative assessment did not indicate that a more detailed quantitative analysis was necessary. Government Incentives Government incentives, including cash grants and refundable tax credits, are recognized when there is reasonable assurance that the incentive will be received and we will comply with the conditions specified in the agreement or statutory requirements. We record capital-related incentives as a reduction to property, plant, and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record operating-related incentives as a reduction to expense in the same line item on the Consolidated Statements of Income as the expenditure for which the incentive is intended to compensate. Fair Value When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions that market participants would use when pricing the asset or liability. Our financial assets are measured and recorded at fair value on a recurring basis, except for equity securities measured using the measurement alternative, equity method investments, and grants receivable. We assess fair value hierarchy levels for our issued debt and fixed-income investment portfolio based on the underlying instrument type. The three levels of inputs that may be used to measure fair value are: ▪Level 1. Quoted prices in active markets for identical assets or liabilities. We evaluate security-specific market data when determining whether a market is active. ▪Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets, or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. We use yield curves, overnight indexed swap curves, currency spot and forward rates, and credit ratings as significant inputs in our valuations. Level 2 inputs also include non-binding market consensus prices, as well as quoted prices that were adjusted for security-specific restrictions. When we use non-binding market consensus prices, we corroborate them with quoted market prices for similar instruments or compare them to output from internally developed pricing models such as discounted cash flow models. ▪Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help confirm that the fair value measurements are reasonable and consistent with market experience in similar asset classes. Level 3 inputs also include non-binding market consensus prices or non-binding broker quotes that we were unable to corroborate with observable market data. Debt Investments Debt investments include investments in corporate debt, government debt, and financial institution instruments. Unhedged debt investments with original maturities of approximately three months or less from the date of purchase are classified within cash and cash equivalents. Unhedged debt investments with original maturities at the date of purchase greater than approximately three months and all economically hedged debt investments are classified as short-term investments, as they represent the investment of cash available for current operations. Debt investments include investments in corporate debt, government debt, and financial institution instruments. Unhedged debt investments with original maturities of approximately three months or less from the date of purchase are classified within cash and cash equivalents . Unhedged debt investments with original maturities at the date of purchase greater than approximately three months and all economically hedged debt investments are classified as short-term investments 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. Gains or losses on these investments arising from changes in fair value due to interest rate and currency market fluctuations and credit market volatility, largely offset by losses or gains on the related derivative instruments and balance sheet remeasurement, are recorded in interest and other, net. 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). We determine the cost of the investment sold based on an average cost basis at the individual security level and record the interest income and realized gains or losses on the sale of these investments in interest and other, net. Unhedged debt investments are subject to periodic impairment reviews. For investments in an unrealized loss position, we determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions, and reasonable and supportable forecasts of economic conditions. We recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required or we intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in interest and other, net, and unrealized losses not related to credit losses are recognized in accumulated other comprehensive income (loss). Financial StatementsNotes to Consolidated Financial Statements81 Financial StatementsNotes to Consolidated Financial Statements81 Financial StatementsNotes to Consolidated Financial Statements81 Notes to Consolidated Financial Statements 81 Table of Contents Table of Contents Equity Investments We regularly invest in equity securities of public and private companies to promote business and strategic objectives. Equity investments are measured and recorded as follows: ▪Marketable equity securities are equity securities with RDFV that are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded through the income statement. ▪Non-marketable equity securities are equity securities without RDFV that are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. ▪Equity method investments are equity securities in investees we do not control but over which we have the ability to exercise significant influence. Equity method investments are measured at cost minus impairment, if any, plus or minus our share of equity method investee income or loss. Our proportionate share of the income or loss from equity method investments is recognized on a one-quarter lag. Realized and unrealized gains and losses resulting from changes in fair value or the sale of our equity investments are recorded in gains (losses) on equity investments, net. The carrying value of our non-marketable equity securities is adjusted for qualifying observable price changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. Non-marketable equity securities and equity method investments (collectively referred to as non-marketable equity investments) are also subject to periodic impairment reviews. Our quarterly impairment analysis considers both qualitative and quantitative factors. When indicators of impairment exist, we prepare quantitative assessments of the fair value of our non-marketable equity investments using both the market and income approaches. ▪Non-marketable equity securities are tested for impairment using a qualitative model similar to the model used for goodwill and property, plant, and equipment. Upon determining that an impairment may exist, the security's fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. ▪Equity method investments are subject to periodic impairment reviews using the other-than-temporary impairment model, which considers the severity and duration of a decline in fair value below cost and our ability and intent to hold the investment for a sufficient period of time to allow for recovery. Impairments of equity investments are recorded in gains (losses) on equity investments, net. Derivative Financial Instruments Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk, and, to a lesser extent, equity market risk, commodity price risk, and credit risk. We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We also enter into collateral security arrangements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. For presentation on our Consolidated Balance Sheets, we do not offset fair value amounts recognized for derivative instruments under master netting arrangements. Our derivative financial instruments, including related collateral amounts, are presented at fair value on a gross basis and are included in other current assets, other long-term assets, other accrued liabilities, or other long-term liabilities. Cash flow hedges use foreign currency contracts, such as currency forwards and currency interest rate swaps, to hedge exposures for variability in the US-dollar equivalent of non-US-dollar-denominated cash flows associated with our forecasted operating and capital purchases spending. The after-tax gains or losses from the effective portion of a cash flow hedge is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. For foreign currency contracts hedging our capital purchases, forward points are excluded from the hedge effectiveness assessment, and are recognized in earnings in the same income statement line item used to present the earnings effect of the hedged item. If the cash flow hedge transactions become improbable, the corresponding amounts deferred in accumulated other comprehensive income (loss) would be immediately reclassified to interest and other, net. Cash flows associated with these derivatives are classified in the Consolidated Statements of Cash Flows in the same section as the underlying item. Fair value hedges use interest rate contracts, such as interest rate swaps, to hedge against changes in the fair value on certain of our fixed-rate indebtedness attributable to changes in the benchmark interest rate. The gains or losses on these hedges, as well as the offsetting losses or gains related to the changes in the fair value of the underlying hedged item attributable to the hedged risk, are recognized in earnings in the current period, primarily in interest and other, net. Cash flows associated with these derivatives are classified in the Consolidated Statements of Cash Flows in the same section as the underlying item, primarily within net cash provided by (used for) financing activities. Financial StatementsNotes to Consolidated Financial Statements82 Financial StatementsNotes to Consolidated Financial Statements82 Financial StatementsNotes to Consolidated Financial Statements82 Notes to Consolidated Financial Statements 82 Table of Contents Table of Contents Non-designated hedges use foreign currency contracts to economically hedge the functional currency equivalent cash flows of recognized monetary assets and liabilities, and non-US-dollar-denominated debt instruments classified as hedged investments. We also use interest rate contracts to hedge interest rate risk related to our US-dollar-denominated fixed-rate debt investments classified as hedged investments. The change in fair value of these derivatives is recorded through earnings in the line item on the Consolidated Statements of Income to which the derivatives most closely relate, primarily in interest and other, net. Changes in the fair value of the underlying assets and liabilities associated with the hedged risk are generally offset by the changes in the fair value of the related derivatives. Non-designated hedges use foreign currency contracts to economically hedge the functional currency equivalent cash flows of recognized monetary assets and liabilities, and non-US-dollar-denominated debt instruments classified as hedged investments. We also use interest rate contracts to hedge interest rate risk related to our US-dollar-denominated fixed-rate debt investments classified as hedged investments. The change in fair value of these derivatives is recorded through earnings in the line item on the Consolidated Statements of Income to which the derivatives most closely relate, primarily in interest and other, net Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of investments in debt instruments, derivative financial instruments, reverse repurchase agreements, and trade and other receivables. We generally place investments with high-credit-quality counterparties and, by policy, we limit the amount of credit exposure to any one counterparty based on our analysis of that counterparty's relative credit standing. As required per our investment policy, substantially all of our investments in debt instruments are in investment-grade instruments. Credit-rating criteria for derivative instruments are similar to those for other investments. We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. Due to master netting arrangements, the amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which the counterparty's obligations exceed our obligations with that counterparty. As of December 30, 2023, our total credit exposure to any single counterparty, excluding money market funds invested in US treasury and US agency securities and reverse repurchase agreements collateralized by treasury and agency securities, did not exceed $1.6 billion. To further reduce credit risk, we enter into collateral security arrangements with certain of our derivative counterparties and obtain and secure collateral from counterparties against obligations, including securities lending transactions when we deem it appropriate. Cash collateral exchanged under our collateral security arrangements is included in other current assets, other long-term assets, other accrued liabilities, or other long-term liabilities. For reverse repurchase agreements collateralized by other securities, we do not record the collateral as an asset or a liability unless the collateral is repledged. A substantial majority of our trade receivables are derived from sales to OEMs and ODMs. We also have accounts receivable derived from sales to industrial and communications equipment manufacturers in the computing and communications industries. We believe the net accounts receivable balances from our three largest customers (50% as of December 30, 2023) do not represent a significant credit risk, based on cash flow forecasts, balance sheet analysis, and past collection experience. We have adopted credit policies and standards intended to accommodate industry growth and inherent risk. We believe credit risks are moderated by the financial stability of our major customers. We assess credit risk through quantitative and qualitative analysis. From this analysis, we establish shipping and credit limits and determine whether we will seek to use one or more credit support protection devices, such as obtaining a parent guarantee, standby letter of credit, or credit insurance. Variable Interest Entities We have economic interests in entities that are VIEs. If we conclude we are the primary beneficiary of the VIE, we are required to consolidate the entity in our financial statements. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide services to the VIE. Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether we are the primary beneficiary. Non-Controlling Interests Our Consolidated Financial Statements include the accounts of majority-owned subsidiaries consolidated under the variable interest and voting interest models. Non-controlling interests represent the portion of equity not attributable to Intel and are reported as a separate component of equity, net of tax and transaction costs, on our Consolidated Balance Sheets. Net income (loss) and comprehensive income (loss) for majority-owned subsidiaries are attributed to Intel and to non-controlling interest holders on our Consolidated Statements of Income and Consolidated Statements of Comprehensive Income based on respective ownership percentages. We account for changes in ownership of our majority-owned subsidiaries as equity transactions when we retain a controlling financial interest. Financial StatementsNotes to Consolidated Financial Statements83 Financial StatementsNotes to Consolidated Financial Statements83 Financial StatementsNotes to Consolidated Financial Statements83 Notes to Consolidated Financial Statements 83 Table of Contents Table of Contents Business Combinations We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in determining the fair value of the following: ▪inventory; property, plant, and equipment; pre-existing liabilities or legal claims; and contingent consideration; each as may be applicable; ▪intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, and our assumed market segment share, as well as the estimated useful life of intangible assets; ▪deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances, which are initially estimated as of the acquisition date; and ▪goodwill as measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. Our assumptions and estimates are based upon comparable market data and information obtained from our management and the management of the acquired companies. These assumptions and estimates are used to value assets acquired and liabilities assumed, and to allocate goodwill to the reporting units of the business that are expected to benefit from the business combination. During the measurement period, which may be up to one year from the business acquisition date, we may recognize adjustments to the assets acquired, liabilities assumed, and related goodwill. Employee Equity Incentive Plans We use the straight-line amortization method to recognize share-based compensation expense over the service period of the award, net of estimated forfeitures. Upon exercise, cancellation, forfeiture, or expiration of stock options, or upon vesting or forfeiture of RSUs, we eliminate deferred tax assets for options and RSUs with multiple vesting dates for each vesting period on a first-in, first-out basis as if each vesting period were a separate award. For the majority of RSUs granted, the number of shares of common stock issued on the date the RSUs vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. The obligation to pay the relevant taxing authority is contingent upon continued employment. In addition, the amount of the obligation is unknown, as it is based in part on the market price of our common stock when the awards vest. Income Taxes We compute the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. We measure deferred tax assets and liabilities using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. We believe that we will ultimately recover the deferred tax assets recorded on our Consolidated Balance Sheets. Recovery of a portion of our deferred tax assets is affected by management's plans with respect to holding or disposing of certain investments; therefore, such changes could also affect our future provision for taxes. We recognize tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that the tax positions will be sustained on examination by the tax authority. The tax benefits recognized in the financial statements from such positions are measured based on the largest amount that is more than 50% likely to be realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits within the provision for (benefit from) taxes on the Consolidated Statements of Income. We recognize the tax impact of including certain foreign earnings in US taxable income as a period cost. We have recognized deferred income taxes for local country income and withholding taxes that could be incurred on distributions of certain non-US earnings or for outside basis differences in our subsidiaries, because we do not plan to indefinitely reinvest such earnings and basis differences. Remittances of non-US earnings are based on estimates and judgments of projected cash flow needs, as well as the working capital and investment requirements of our non-US and US operations. Material changes in our estimates of cash, working capital, and investment needs in various jurisdictions could require repatriation of indefinitely reinvested non-US earnings, which could be subject to applicable non-US income and withholding taxes. Financial StatementsNotes to Consolidated Financial Statements84 Financial StatementsNotes to Consolidated Financial Statements84 Financial StatementsNotes to Consolidated Financial Statements84 Notes to Consolidated Financial Statements 84 Table of Contents Table of Contents Leases Leases consist of real property and machinery and equipment. Our lease terms may include options to extend when it is reasonably certain that we will exercise such options. For leases for supplier capacity, we account for the lease and non-lease components as a single lease component. For all other leases, we account for the lease and non-lease components separately and do not include the non-lease components in our leased assets and corresponding liabilities. Payments on leases may be fixed or variable, and variable lease payments are based on output of the underlying leased assets. Loss Contingencies We are subject to loss contingencies, including various legal and regulatory proceedings, asserted and potential claims, liabilities related to repair or replacement of parts in connection with product defects, as well as product warranties and potential asset impairments that arise in the ordinary course of business and are subject to change, including due to sudden or rapid developments in proceedings or claims. An estimated loss from such contingencies is recognized as a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate developments that could affect prior disclosures or previously accrued liabilities, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being, and the estimated amount of, a loss related to such matters. If one or more of these matters were resolved against us for amounts in excess of management's estimates of losses, our results of operations and financial condition could be materially adversely affected. Note 3 : Operating Segments We previously announced the organizational change to integrate AXG into CCG and DCAI. This change is intended to drive a more effective go-to-market capability and to accelerate the scale of these businesses, while also reducing costs. As a result, we modified our segment reporting in the first quarter of 2023 to align to this and certain other business reorganizations. All prior-period segment data has been retrospectively adjusted to reflect the way our CODM internally receives information and manages and monitors our operating segment performance starting in fiscal year 2023. We manage our business through the following operating segments: ▪Client Computing Group ▪Data Center and AI ▪Network and Edge ▪Mobileye ▪Intel Foundry Services We derive a substantial majority of our revenue from our principal products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package, which are based on Intel architecture. CCG, DCAI, and NEX are our reportable operating segments. Mobileye and IFS do not qualify as reportable operating segments; however, we have elected to disclose the results of these non-reportable operating segments. When we enter into federal contracts, they are aligned to the sponsoring operating segment. We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments. We have an \"all other\" category that includes revenue, expenses, and charges such as: ▪results of operations from non-reportable segments not otherwise presented, and from start-up businesses that support our initiatives; ▪historical results of operations from divested businesses; ▪amounts included within restructuring and other charges; ▪employee benefits, compensation, impairment charges, and other expenses not allocated to the operating segments; and ▪acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill. The CODM, who is our CEO, allocates resources to and assesses the performance of each operating segment using information about the operating segment's revenue and operating income (loss). The CODM does not evaluate operating segments using discrete asset information, and we do not identify or allocate assets by operating segments. Based on the interchangeable nature of our manufacturing and assembly and test assets, most of the related depreciation expense is not directly identifiable within our operating segments, as it is included in overhead cost pools and subsequently absorbed into inventory as each product passes through our manufacturing process. Because our products are then sold across multiple operating segments, it is impracticable to determine the total depreciation expense included as a component of each operating segment's operating income (loss) results. We do not allocate gains and losses from equity investments, interest and other income, share-based compensation, or taxes to our operating segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. The accounting policies for segment reporting are the same as for Intel as a whole. Financial StatementsNotes to Consolidated Financial Statements85 Financial StatementsNotes to Consolidated Financial Statements85 Financial StatementsNotes to Consolidated Financial Statements85 Notes to Consolidated Financial Statements 85 Table of Contents Table of Contents Net revenue and operating income (loss) for each period were as follows: Years Ended (In Millions)Dec 30, 2023Dec 31, 2022Dec 25, 2021Net revenue:Client ComputingDesktop$10,166 $10,661 $12,437 Notebook16,990 18,781 25,443 Other2,102 2,331 3,201 29,258 31,773 41,081 Data Center and AI$15,521 $19,445 $22,774 Network and Edge5,774 8,409 7,665 Mobileye2,079 1,869 1,386 Intel Foundry Services952 469 347 All other644 1,089 5,771 Total net revenue$54,228 $63,054 $79,024 Operating income (loss):Client Computing$6,520 $5,569 $15,523 Data Center and AI(530)1,300 7,376 Network and Edge(482)1,033 1,935 Mobileye664 690 554 Intel Foundry Services(482)(281)76 All other(5,597)(5,977)(6,008)Total operating income (loss)$93 $2,334 $19,456 In 2022, we initiated the wind-down of our Intel Optane memory business, which is part of our DCAI operating segment. While Intel Optane is a leading technology, it was not aligned to our strategic priorities. Separately, we continue to embrace the CXL standard. As a result, we recognized an inventory impairment of $723 million in cost of sales on the Consolidated Statements of Income in 2022. The impairment charge is recognized as a corporate charge in the \"all other\" category presented above."
    }
  ]
}