Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Other Financial Statement Details

Other Financial Statement Details

6 Months Ended

Jul. 01, 2023

Other Financial Statement Details [Abstract]


Note 5 :			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 provided by operating activities in the Consolidated Condensed Statements of Cash Flows. Accounts receivable sold under non-recourse factoring arrangements were $1.0 billion during the first six months of 2023, and we did not factor accounts receivable during the first six months of 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)	Jul 1, 2023		Dec 31, 2022
Raw materials	$	1,284	$	1,517
Work in process	6,638		7,565
Finished goods	4,062		4,142
Total inventories	$	11,984	$	13,224

Other Accrued Liabilities

Other accrued liabilities include deferred compensation of $2.7 billion as of July 1, 2023 ($2.4 billion as of December 31, 2022).

Interest and Other, Net


	Three Months Ended				Six Months Ended
(In Millions)	Jul 1, 2023		Jul 2, 2022		Jul 1, 2023		Jul 2, 2022
Interest income	$	313	$	98	$	647	$	145
Interest expense	(214)		(109)		(407)		(233)
Other, net	125		(108)		125		966
Total interest and other, net	$	224	$	(119)	$	365	$	878

Interest expense is net of $381 million of interest capitalized in the second quarter of 2023 and $744 million in the first six months of 2023 ($154 million in the second quarter of 2022 and $296 million in the first six months of 2022). Other, net includes a gain in 2022 of $1.0 billion resulting from the first closing of the divestiture of our NAND memory business.

Property, Plant, and EquipmentEffective January 2023, we increased the estimated useful life of certain production machinery and equipment from 5 years to 8 years. We estimate this change resulted in an approximate $570 million increase to gross margin and an approximate $110 million decrease in R&D expense in the second quarter of 2023 when compared to what the impact would have been using the estimated useful life in place prior to this change. We estimate this change resulted in an approximate $930 million increase to gross margin and an approximate $210 million decrease in R&D expenses in the first six months of 2023. As of July 1, 2023, we estimate this change resulted in an approximate $910 million decrease in ending inventory values.