Intel INTC · USD

Note 3 : Operating SegmentsIn the first quarter of 2025, we made an organizational change to integrate our NEX business into CCG and DCAI and modified our segment reporting to align to this and certain other business reorganizations. All prior period segment data have been retrospectively adjusted to reflect the way our CODM internally receives information and manages and monitors our operating segment performance starting in fiscal year 2025. Additionally, effective September 12, 2025, we completed the divestiture of 51% of Altera. As of that date, Altera's results of operations are no longer included in our consolidated or segment results. Altera's financial results were included within our "all other" category for all periods presented through September 11, 2025. There are no changes to our Consolidated Financial Statements for any prior periods resulting from our organizational change in the first quarter of 2025 or the Altera transaction, which is further described below.We organize our business as follows:▪Intel Products:▪Client Computing Group (CCG)▪Data Center and AI (DCAI)▪Intel Foundry▪All Other:▪Mobileye▪OtherCCG, DCAI and Intel Foundry qualify as reportable operating segments. When we enter into federal contracts, they are aligned to the sponsoring operating segment.The accounting policies applied to our segments follow those applied to Intel as a whole. A summary of the basis for which we report our operating segment revenues and operating margin is as follows: Intel Products: CCG and DCAI▪Segment revenue: consists of revenues from external customers. Our Intel Products operating segments represent most of Intel consolidated revenue and are derived 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.▪Segment expenses: consists of intersegment charges for product manufacturing and related services from Intel Foundry, external foundry and other manufacturing expenses, product development costs, allocated expenses as described below and direct operating expenses.Intel Foundry ▪Segment revenue: consists substantially of intersegment product and services revenue for wafer fabrication, substrates and other related products and services sold to Intel Products and certain other Intel internal businesses. We recognize intersegment revenue based on the completion of performance obligations.

Note 19 : Commitments and ContingenciesLeasesWe recognized operating leased assets in other long-term assets of $421 million ($457 million in 2024) and corresponding other accrued liabilities of $110 million ($181 million in 2024), and other long-term liabilities of $281 million ($279 million in 2024) as of December 27, 2025. Our operating leases have remaining terms of 1 to 11 years and may include options to extend the leases for up to 36 years. The weighted average remaining lease term was 6.7 years (6.5 years in 2024), and the weighted average discount rate was 4.7% (4.9% in 2024) as of December 27, 2025 for our operating leases. Operating lease expense was $212 million in 2025 ($248 million in 2024 and $407 million in 2023), including $100 million in variable lease expense in 2025 ($98 million in 2024 and $213 million in 2023).We recognized finance leased assets in property, plant and equipment of $453 million as of December 27, 2025 ($470 million as of December 28, 2024) of which the majority is related to a prepaid finance lease for supplier capacity. This lease will commence upon start of supplier production and has a term of 6 years.We incurred non-cash impairment charges of $48 million in 2025 on certain leased assets as a direct result of the 2025 and 2024 Restructuring Plans ($83 million in 2024 as a result of the 2024 Restructuring Plan; see "Note 7: Restructuring and Other Charges" within Notes to Consolidated Financial Statements). These charges were included within restructuring and other.Discounted and undiscounted lease payments under non-cancelable leases as of December 27, 2025, were as follows:(In Millions)20262027202820292030 ThereafterTotalOperating lease payments$94 $74 $63 $46 $45 $100 $422 Finance lease payments$96 $6 $6 $3 $3 $19 $133 Present value of lease payments$473 CommitmentsCommitments for capital expenditures totaled $12.8 billion as of December 27, 2025 ($20.0 billion as of December 28, 2024), a majority of which will be due within the next 12 months. Other purchase obligations and commitments totaled approximately $6.7 billion as of December 27, 2025 (approximately $7.0 billion as of December 28, 2024). Other purchase obligations and commitments include payments due under supply agreements and various types of licenses and agreements to purchase goods or services.

Note 8 : Income TaxesProvision for (Benefit From) TaxesYears Ended ($ In Millions)Dec 27, 2025Dec 28, 2024Dec 30, 2023Income (losses) before taxes:U.S.$(3,231)$(13,450)$(4,749)Non-U.S.4,788 2,2415,511Total income before taxes$1,557 $(11,210)$762Provision for (benefit from) taxes:Current:Federal$310 $600$538State(18)(8)23Non-U.S.910 1,364535Total current provision for (benefit from) taxes1,202 1,9561,096Deferred:Federal245 6,192(2,048)State(11)67(21)Non-U.S.95 (192)60Total deferred provision for (benefit from) taxes329 6,067(2,009)Total provision for (benefit from) taxes$1,531 $8,023$(913)Effective tax rate98.3 %71.6 %(119.8)%We adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements To Income Tax Disclosures" on a prospective basis beginning with the year ended December 27, 2025. The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 27, 2025:Dec 27, 2025Year Ended ($ In Millions)AmountPercentU.S. federal statutory tax$327 21.0 %State and local income tax, net of federal income tax effect(23)(1.5)%Foreign tax effects: China: Withholding tax314 20.2 % Other adjustments(51)(3.3)% Other foreign jurisdictions(205)(13.2)%Effects of cross-border tax laws: Subpart F income inclusion248 15.9 % Foreign tax credit(707)(45.4)% Other145 9.3 %Tax credits:Research and development credit(977)(62.7)%Changes in valuation allowances2,629 168.9 %Nontaxable or nondeductible items: Share-based compensation120 7.7 % Altera divestiture and deconsolidation(1,357)(87.2)% Mark to market on equity securities377 24.2 % Other97 6.2 %Changes in unrecognized tax benefits334 21.5 %Other adjustments260 16.7 %Global effective tax$1,531 98.3 %The following table presents the required disclosures prior to our adoption of ASU 2023-09 and reconciles the U.S. federal statutory income tax rate to the actual global effective income tax rate for the years ended December 28, 2024 and December 30, 2023:Years EndedDec 28, 2024Dec 30, 2023Expected provision (benefit) at statutory federal income tax rate(21.0)%21.0 %Increase (reduction) in rate resulting from:Federal valuation allowance93.2 — Goodwill impairment2.1 — Share-based compensation4.2 34.3 Unrecognized tax benefits and settlements1.3 16.3 Non-U.S. income taxed at different rates(5.3)(60.6)Research and development tax credits(5.6)(99.0)Foreign derived intangible income benefit— (25.

Note 10 : Acquisitions and DivestituresAltera DivestitureOn April 14, 2025, we signed a transaction agreement with SLP VII Gryphon Aggregator, L.P., an affiliate of SLP, to sell 51% of all issued and outstanding common stock of Altera, our wholly owned subsidiary as of that date. On September 12, 2025, we completed the divestiture of 51% of Altera for net purchase consideration of $4.3 billion, consisting of: $4.3 billion in cash proceeds received at the closing; $500 million in deferred cash proceeds also received within the third quarter of 2025; $500 million in deferred cash proceeds payable to us no later than December 31, 2027; an offset of $400 million for cash transferred to Altera with the sale; an offset of approximately $469 million in separation and employee-related costs we have agreed to fund to SLP; and an offset for other direct and incremental costs incurred in connection with the sale.As of December 27, 2025, the outstanding receivable from SLP was $463 million recorded within other long-term assets for the present value of deferred consideration, which is not subject to any contingencies, and $327 million and $97 million within other accrued liabilities and other long-term liabilities, respectively, for amounts payable to SLP for separation and employee-related costs that have not yet been paid and that relate to the transaction. We continue to finalize certain customary closing adjustments with SLP which may result in adjustments to the final net cash proceeds received related to, and our gain on sale for, the transaction.Upon closing the transaction, we retained a 49% minority investment in Altera, which is accounted for under the equity method of accounting. We established the fair value of our non-marketable equity investment in reference to Altera's equity value per the terms of the transaction agreement as the transaction negotiated with SLP represented an orderly transaction between market participants. The $3.2 billion value of our non-marketable equity investment in Altera is classified within equity investments in the Consolidated Balance Sheets at December 27, 2025 and recognized as a non-cash investing activity in the year ended December 27, 2025.

We face significant and persistent cybersecurity risks as a developer of leading-edge manufacturing processes and widely utilized semiconductor products. We are committed to maintaining robust governance and oversight of cybersecurity risks and to implementing mechanisms, controls, technologies and processes designed to help us assess, identify and manage these risks. See "Risk Factors" for more information on our cybersecurity risks and product vulnerability risks. While we have not, as of the date of this Form 10-K, experienced a cybersecurity threat or incident that resulted in a material adverse impact to our business or operations, there can be no guarantee that we will not experience such an incident in the future. We have seen an increase in cyberattack volume, frequency and sophistication. Our cybersecurity program and governance approach are designed to protect our network and information systems, and we have policies, procedures, processes and controls in place to identify, manage and respond to risks from cybersecurity threats. We seek to detect and investigate unauthorized attempts and attacks against our network, products and services and to prevent their occurrence and recurrence where practicable through changes or updates to our internal processes and tools and changes or updates to our products and services; however, we remain potentially vulnerable to known or unknown threats. In some instances, we, our suppliers, our customers and the users of our products and services can be unaware of a threat or incident or its magnitude and effects. Further, there is increasing regulation regarding responses to cybersecurity incidents, including reporting to regulators, which could subject us to additional liability and reputational harm.We aim to incorporate industry best practices throughout our cybersecurity program. Our cybersecurity program includes written policies, standards and procedures for information security, product security, data protection and privacy; is designed to be aligned with applicable industry standards; and is assessed annually by independent third-party auditors. Our cybersecurity strategy focuses on implementing effective and efficient controls, technologies and other processes to assess, identify, manage and address material cybersecurity threats, risks and incidents.

Note 11 : Goodwill(In Millions)Dec 28, 2024DivestituresTransfersImpairmentsDec 27, 2025Client Computing$4,619 $— $1,865 $— $6,484 Data Center and AI7,944 — 1,001 — 8,945 Network and Edge2,780 — (2,780)— — Mobileye18,306 — — — 8,306 Altera781 (781)— — — All Other263 — (86)— 177 Total$24,693 $(781)$— $— $23,912 (In Millions)Dec 30, 2023AcquisitionsTransfersImpairmentsDec 28, 2024Client Computing$4,749 $— $(130)$— $4,619 Data Center and AI8,721 — (777)— 7,944 Network and Edge2,809 — (29)— 2,780 Intel Foundry— — 222 (222)— Mobileye110,919 — — (2,613)8,306 Altera— — 781 — 781All Other393 86 (67)(149)263 Total$27,591 $86 $— $(2,984)$24,693 1 Mobileye includes goodwill balances for both the Mobileye and Moovit reporting units. During the fourth quarter of 2025, we completed our annual goodwill impairment assessment across all of our reporting units and identified that a more detailed quantitative analysis was necessary for our Mobileye reporting unit, primarily due to the decline in Mobileye's market capitalization below the carrying value of Mobileye's net assets. Our quantitative assessment was performed by measuring Mobileye's fair value using the income approach. When using the income approach, we tested the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. As a result of this impairment test, no impairment charge was recognized as the estimated fair value was higher than the assigned carrying value. Finally, to corroborate our estimated fair value for the Mobileye reporting unit, we performed a market capitalization reconciliation as of December 27, 2025, concluding that the implied control premium was reasonable as compared to relevant market transactions in similar industries. Notwithstanding Mobileye, our annual qualitative assessment did not indicate that a more detailed quantitative analysis was necessary for our other reporting units as the most recently calculated fair value substantially exceeded the assigned carrying value for each reporting unit as of December 27, 2025.During the third quarter of 2025, we divested our Altera business, including all allocated goodwill. For further information see "Note 10: Acquisitions and Divestitures" within Notes to Consolidated Financial Statements.

Note 13 : BorrowingsShort-Term DebtShort-term debt, which primarily includes the current portion of long-term debt, was $2.5 billion as of December 27, 2025 and $3.7 billion as of December 28, 2024. 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. We issued and repaid commercial paper of $3.5 billion in 2025 and $7.3 billion in 2024 and repaid $3.9 billion of commercial paper in 2023. As of December 27, 2025 and December 28, 2024, we had no commercial paper outstanding.Long-Term DebtDec 27, 2025Dec 28, 2024($ In Millions)Effective Interest RateAmountAmountFixed-rate senior notes:3.40%, due March 2025—%$— $1,500 3.70%, due July 2025—%— 2,250 4.88%, due February 20264.93%1,500 1,500 2.60%, due May 20265.03%1,000 1,000 3.75%, due March 20273.78%1,000 1,000 3.15%, due May 20275.60%1,000 1,000 3.75%, due August 20273.81%1,250 1,250 4.88%, due February 20284.92%1,750 1,750 1.60%, due August 20281.67%1,000 1,000 4.00%, due August 20294.05%850 850 2.45%, due November 20292.38%2,000 2,000 5.13%, due February 20305.14%1,250 1,250 3.90%, due March 20303.91%1,500 1,500 5.00%, due February 20315.07%500 500 2.00%, due August 20312.02%1,250 1,250 4.15%, due August 20324.17%1,250 1,250 4.00%, due December 20325.65%750 750 5.20%, due February 20335.23%2,250 2,250 5.15%, due February 20345.18%900 900 4.60%, due March 20404.59%750 750 2.80%, due August 20412.81%750 750 4.80%, due October 20416.39%802 802 4.25%, due December 20425.89%567 567 5.63%, due February 20435.61%1,000 1,000 4.90%, due July 20456.52%772 772 4.10%, due May 20465.80%1,250 1,250 4.10%, due May 20475.76%1,000 1,000 4.10%, due August 20475.33%640 640 3.73%, due December 2047 6.17%1,967 1,967 3.25%, due November 20493.19%2,000 2,000 4.75%, due March 20504.73%2,250 2,250 3.05%, due August 20513.05%1,250 1,250 4.90%, due August 20524.89%1,750 1,750 5.70%, due February 20535.68%2,000 2,000 5.60%, due February 2054 5.59%1,150 1,150 3.10%, due February 20603.10%1,000 1,000 4.95%, due March 20604.98%1,000 1,000 3.20%, due August 20613.20%750 750 5.05%, due August 20625.03%900 900 5.90%, due February 20635.88%1,250 1,250 Dec 27, 2025Dec 28, 2024($ In Millions)Effective Interest RateAmountAmountOregon and Arizona bonds1:3.80% - 4.10%, due December 2035 - 20403.87%423 423 5.00%, due September 20423.63%131 131 4.

Note 14 : Fair ValueAssets and Liabilities Measured and Recorded at Fair Value on a Recurring BasisDecember 27, 2025December 28, 2024Fair Value Measured and Recorded at Reporting Date UsingTotalFair Value Measured and Recorded at Reporting Date UsingTotal(In Millions)Level 1Level 2Level 3Level 1Level 2Level 3AssetsCash equivalents:Corporate debt$— $150 $— $150 $—$— $—$— Financial institution instruments17,292 1,800 — 9,092 4,121 743 —4,864 Reverse repurchase agreements— 4,262 — 4,262 —2,654 —2,654 Short-term investments:Corporate debt— 7,248 — 7,248 —5,365 —5,365 Financial institution instruments1183 3,991 — 4,174 195 3,356 —3,551 Government debt25,296 6,433 — 11,729 33 4,864 —4,897 Other current assets:Derivative assets431 608 — 1,039 348 733 —1,081 Marketable equity investments484 — — 484 848 — —848 Other long-term assets:Derivative assets— 2 — 2 —1 — 1 Total assets measured and recorded at fair value$13,686 $24,494 $— $38,180 $5,545 $17,716 $— $23,261 LiabilitiesOther accrued liabilities:Derivative liabilities3$6 $1,524 $304 $1,834 $—$562 $134$696 Other long-term liabilities:Derivative liabilities3— 1,714 576 2,290 —416 7551,171 Total liabilities measured and recorded at fair value$6 $3,238 $880 $4,124 $—$978 $889$1,867 1 Level 1 investments consist of money market funds. Level 2 investments consist primarily of time deposits, notes and bonds issued by financial institutions.2 Level 1 investments consist primarily of U.S. Treasury securities. Level 2 investments consist primarily of non-U.S. government debt.3 Level 1 derivative liabilities consist of equity contracts for our deferred compensation program. Level 2 derivative liabilities include a forward contract related to Escrowed Shares held. Level 3 derivative liabilities include liquidated damage provisions related to our Ireland SCIP arrangement.Assets Measured and Recorded at Fair Value on a Non-Recurring BasisOur non-marketable equity investments and certain non-financial assets—such as intangible assets, goodwill 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 observable price adjustment or impairment is recognized on our non-marketable equity investments during the period, we classify these assets as Level 3.