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

9 Months Ended

Sep. 30, 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 $1.5 billion during the first nine months of 2023. 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)	Sep 30, 2023		Dec 31, 2022
Raw materials	$	1,278	$	1,517
Work in process	6,266		7,565
Finished goods	3,922		4,142
Total inventories	$	11,466	$	13,224

Property, Plant, and Equipment

Effective 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 $690 million increase to gross margin and an approximate $110 million decrease in R&D expense in the third 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 $1.6 billion increase to gross margin and an approximate $320 million decrease in R&D expenses in the first nine months of 2023. As of September 30, 2023, we estimate this change resulted in an approximate $1.2 billion decrease in ending inventory values. These estimates are based on the assets in use and under construction as of the beginning of 2023.

Other Accrued Liabilities

Other accrued liabilities include deferred compensation of $2.6 billion as of September 30, 2023 ($2.4 billion as of December 31, 2022).

Interest and Other, Net


	Three Months Ended				Nine Months Ended
(In Millions)	Sep 30, 2023		Oct 1, 2022		Sep 30, 2023		Oct 1, 2022
Interest income	$	332	$	170	$	979	$	315
Interest expense	(204)		(114)		(611)		(347)
Other, net	19		82		144		1,048
Total interest and other, net	$	147	$	138	$	512	$	1,016

Interest expense is net of $395 million of interest capitalized in the third quarter of 2023 and $1.1 billion in the first nine months of 2023 ($220 million in the third quarter of 2022 and $516 million in the first nine 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.