Intel (INTC) 10-K risk factor changes: FY2021 vs FY2020

| | | | Critical accounting estimates and policies | | | Pages [removed: [52](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_244), [79](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_307)\-[84](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_379)] [added: [44](#i6c9ced68f6b24d58a3dcf326e8c3c699_208), [77](#i6c9ced68f6b24d58a3dcf326e8c3c699_268)\-[82](#i6c9ced68f6b24d58a3dcf326e8c3c699_343)] | | |

| Item 7A. | | | Quantitative and Qualitative Disclosures About Market Risk | | | [removed: Pages [46](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_217)\-[47](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_220)] [added: Page [49](#i6c9ced68f6b24d58a3dcf326e8c3c699_184)] | | |

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| | | | Results of operations | | | Pages [4](#i6c9ced68f6b24d58a3dcf326e8c3c699_28)\-[5](#i6c9ced68f6b24d58a3dcf326e8c3c699_31), [18](#i6c9ced68f6b24d58a3dcf326e8c3c699_67)\-[42](#i6c9ced68f6b24d58a3dcf326e8c3c699_4381), [45](#i6c9ced68f6b24d58a3dcf326e8c3c699_14293651165196)\-[47](#i6c9ced68f6b24d58a3dcf326e8c3c699_193) | | |

| | | | Liquidity and capital resources | | | Pages [4](#i6c9ced68f6b24d58a3dcf326e8c3c699_28)\-[5](#i6c9ced68f6b24d58a3dcf326e8c3c699_31), [42](#i6c9ced68f6b24d58a3dcf326e8c3c699_175)\-[44](#i6c9ced68f6b24d58a3dcf326e8c3c699_208), [45](#i6c9ced68f6b24d58a3dcf326e8c3c699_14293651165196)\-[47](#i6c9ced68f6b24d58a3dcf326e8c3c699_193) | | |

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| | | | Results of operations | | | Pages [4](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_34)\-[5](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_37), [17](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_76)\-[41](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_199), [48](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_223)\-[49](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_226) | | |

| | | | Liquidity | | | Pages [4](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_34)\-[5](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_37), [42](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_205)\-[44](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_211), [48](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_223)\-[49](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_226) | | |

| | | | Capital resources | | | Pages [42](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_205)\-[44](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_211) | | |

| | | | Off balance sheet arrangements | | | (a) | | |

| | | | Contractual obligations | | | Page [45](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_214) | | |

| | | | General development of business | | | Pages [removed: [2](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_28)\-[7](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_43), [18](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_94)\-[19](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_106)] [added: [2](#i6c9ced68f6b24d58a3dcf326e8c3c699_22)\-[7](#i6c9ced68f6b24d58a3dcf326e8c3c699_37), [19](#i6c9ced68f6b24d58a3dcf326e8c3c699_70)] | | |

| | | | Available information | | | Page [removed: [69](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_271)] [added: [66](#i6c9ced68f6b24d58a3dcf326e8c3c699_232)] | | |

| Item 1A. | | | Risk Factors | | | Pages [removed: [53](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_247)\-[65](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_253)] [added: [50](#i6c9ced68f6b24d58a3dcf326e8c3c699_211)\-[63](#i6c9ced68f6b24d58a3dcf326e8c3c699_214)] | | |

| | | | Description of business | | | Pages [2](#i6c9ced68f6b24d58a3dcf326e8c3c699_22)\-[36](#i6c9ced68f6b24d58a3dcf326e8c3c699_130), [48](#i6c9ced68f6b24d58a3dcf326e8c3c699_202)\-[49](#i6c9ced68f6b24d58a3dcf326e8c3c699_4122), [66](#i6c9ced68f6b24d58a3dcf326e8c3c699_229), [82](#i6c9ced68f6b24d58a3dcf326e8c3c699_343)\-[85](#i6c9ced68f6b24d58a3dcf326e8c3c699_355) | | |

| | | | Description of business | | | Pages [2](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_28)\-[36](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_175), [51](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_235)\-[52](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_241), [68](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_268), [84](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_379)\-[86](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_391) | | |

| | | | For the fiscal year ended December [removed: 26, 2020.] [added: 25, 2021.] | | |

[removed: ][added: ]

Aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant as of June [removed: 26, 2020,] [added: 25, 2021,] based upon the closing price of the common stock as reported by the Nasdaq Global Select Market on such date, was [removed: $244.5] [added: $226.8] billion.

[removed: 4,063] [added: 4,072] million shares of common stock were outstanding as of January [removed: 15, 2021.][added: 21, 2022.]

Portions of the registrant’s proxy statement related to its [removed: 2021] [added: 2022] Annual Stockholders' Meeting to be filed subsequently are incorporated by reference into Part III of this Form 10-K.

The preparation of our Consolidated Financial Statements is in conformity with [removed: U.S.] [added: US] GAAP.

| Introduction to Our Business | | | | | | [removed: [2](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_28)] [added: [2](#i6c9ced68f6b24d58a3dcf326e8c3c699_22)] | | |

| A Year in Review | | | | | | [removed: [4](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_34)] [added: [4](#i6c9ced68f6b24d58a3dcf326e8c3c699_28)] | | |

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[removed: |] How We Organize Our Business [removed: | | | | | | [18](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_94) | | |]

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| Liquidity and Capital Resources | | | | | | [removed: [42](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_205)] [added: [42](#i6c9ced68f6b24d58a3dcf326e8c3c699_175)] | | |

| Quantitative and Qualitative Disclosures About Market Risk | | | | | | [removed: [46](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_217)] [added: [49](#i6c9ced68f6b24d58a3dcf326e8c3c699_184)] | | |

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| Sales and Marketing | | | | | | [removed: [51](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_235)] [added: [48](#i6c9ced68f6b24d58a3dcf326e8c3c699_202)] | | |

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| Information About Our Executive Officers | | | | | | [removed: [68](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_268)] [added: [66](#i6c9ced68f6b24d58a3dcf326e8c3c699_229)] | | |

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| Consolidated Financial Statements | | | | | | [removed: [74](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_280)] [added: [72](#i6c9ced68f6b24d58a3dcf326e8c3c699_241)] | | |

| Notes to [removed: the] Consolidated Financial Statements | | | | | | [removed: [79](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_304)] [added: [77](#i6c9ced68f6b24d58a3dcf326e8c3c699_265)] | | |

| Form 10-K Cross-Reference Index | | | | | | [removed: [119](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_505)] [added: [120](#i6c9ced68f6b24d58a3dcf326e8c3c699_469)] | | |

Words such as [removed: "anticipates,"] [added: "anticipate,"] "expect," "intend," [added: "aim,"] "strive," [added: "objective,"] "goals," "plans," "ambitions," "opportunity," [added: "outlook," "forecast," "predict,"] "future," "to be," [added: "pending," "roadmap,"] "achieve," "grow," "committed," [removed: "believes," "seeks,"] [added: "believe," "seek,"] "targets," [added: "milestones,"] "estimated," [removed: "continues,"] [added: "continue,"] "likely," "possible," "may," "might," "potentially," "will," "would," "should," "could," [added: "accelerate," "upcoming," "positioned," "next generation," "progress,"] "on track," and variations of such words and similar expressions are intended to identify such forward-looking statements.

In addition, any statements that refer to [added: Intel’s strategy and the anticipated benefits of our strategy; manufacturing expansion plans; investment plans and impacts of investment plans; business plans; internal and external manufacturing plans, including] future [added: internal manufacturing volumes and external foundry usage; future] responses to and effects of COVID-19; projections of our future financial [removed: performance;] [added: performance, including] future [added: revenue, gross margins, capital expenditures, and cash flows; future] business, social, and environmental performance, goals, [added: measures,] and [removed: measures;] [added: strategies;] our anticipated [removed: growth] [added: growth, future market share,] and trends in our businesses and operations; projected growth and trends in markets relevant to our businesses; [removed: business] [added: future technology trends; plans] and [removed: investment plans;] [added: goals related to Intel’s foundry business, including with respect to] future [added: manufacturing capacity and foundry service offerings, including technology and IP offerings; future] products and technology, and the expected regulation, [removed: availability] [added: availability,] and benefits of such products and [removed: technology;] [added: technology, including future process nodes and technology, product roadmaps, future product architectures, expectations regarding process performance per watt parity and leadership, and expectations regarding product leadership;] projected cost and yield trends; expected timing and impact of acquisitions, divestitures, and other significant transactions, including statements relating to the [removed: pending] divestiture of our NAND memory business to SK hynix Inc. (SK [removed: hynix);] [added: hynix) and our] expected [removed: completion] [added: use] of [removed: restructuring activities;] [added: proceeds; the proposed IPO of Mobileye; future cash requirements;] availability, uses, sufficiency, and cost of capital of capital [removed: resources,] [added: resources and sources of funding,] including [added: future capital and R&D investments, and] expected returns to stockholders such as dividends and share [removed: repurchases, and the expected timing of future] repurchases; [removed: our valuation;] [added: expectations regarding government incentives;] future production capacity and product supply; [added: anticipated trends and impacts related to industry component, substrate, and foundry capacity shortages and constraints;] the future purchase, use, and availability of products, components, and services supplied by third parties, including third-party IP and [removed: manufacturing] [added: foundry] services; tax- and accounting-related expectations; LIBOR-related expectations; [added: our role in the Rapid Assured Microelectronics Prototypes - Commercial program; expectations regarding our relationships with certain sanctioned parties;] uncertain events or assumptions, including statements relating to [removed: TAM or] [added: TAM,] market opportunity, [added: or projections of future demand;] and other characterizations of future events or circumstances are forward-looking statements.

*Intel, 3D XPoint, [added: Arc,] Arria, [added: Barefoot Networks, Barefoot logo,] Celeron, Intel Agilex, Intel Atom, Intel Core, eASIC, [added: the Footsie logo,] Intel Evo, Intel Inside, the Intel logo, the Intel Inside logo, Intel Optane, Iris, Itanium, [added: Killer,] Movidius, Myriad, OpenVINO, [removed: OpenVino] [added: OpenVINO] logo, Pentium, Quark, Stratix, [removed: Thunderbolt,] [added: Thunderbolt and the Thunderbolt logo,] Tofino, Intel vPro, and Xeon are trademarks of Intel Corporation or its subsidiaries.*

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| ■ [removed: PC-centric] [added: GAAP] $B ■ [removed: Data-centric] [added: Non-GAAP] $B | | | | | | ■ GAAP $B ■ Non-GAAP $B | | | | | | ■ GAAP ■ Non-GAAP | | | | | | ■ Operating Cash Flow $B ■ Free Cash [removed: Flow1] [added: Flow2] $B | | |

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| GAAP | | | [added: non-GAAP2] | | | | | | GAAP | | | | | | [removed: non-GAAP1] [added: non-GAAP2] | | | | | | GAAP | | | | | | [removed: non-GAAP1] [added: non-GAAP2] | | | | | | GAAP | | | | | | [removed: non-GAAP1] [added: non-GAAP2] | | |

| [removed: Goal (2019 - 2021)3] | | | | | | [removed: | | | Goal (2019 - 2021)3 | | | | | | | | | Goal (2019 - 2021)3] [added: 2021] | | | | | | [added: 2020] | | | [removed: Goal (2019 - 2021)3] | | | [added: 2019] | | |

[removed: *2*] [added: *1*] *See "Our Products" within MD&A.*

| [removed: ] [added: ] | | | Fundamentals of Our Business | | | 4 | | |

| [removed:  | | |  | | |  | | |  | | | | | | | | |] [added: 5G network products] | | | | | | [added: ] | | |

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[removed: | Planned] [added: First closing of] divestiture of NAND memory business [removed: | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| How We Organize Our Business | | | | | | [19](#i6c9ced68f6b24d58a3dcf326e8c3c699_70) | | |

| Risk Factors | | | | | | [50](#i6c9ced68f6b24d58a3dcf326e8c3c699_211) | | |

| Properties | | | | | | [64](#i6c9ced68f6b24d58a3dcf326e8c3c699_217) | | |

| Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934 | | | | | | [67](#i6c9ced68f6b24d58a3dcf326e8c3c699_4101) | | |

| Auditor's Reports | | | | | | [69](#i6c9ced68f6b24d58a3dcf326e8c3c699_238) | | |

| Key Terms | | | | | | [111](#i6c9ced68f6b24d58a3dcf326e8c3c699_448) | | |

| Controls and Procedures | | | | | | [114](#i6c9ced68f6b24d58a3dcf326e8c3c699_454) | | |

| Exhibits | | | | | | [115](#i6c9ced68f6b24d58a3dcf326e8c3c699_457) | | |

[Table](#i6c9ced68f6b24d58a3dcf326e8c3c699_16) [of](#i6c9ced68f6b24d58a3dcf326e8c3c699_16) [Contents](#i6c9ced68f6b24d58a3dcf326e8c3c699_16)

| Total revenue of $79.0 billion was up year over year, with CCG revenue up 1% and DCG revenue down 1%, both amid the effects of industry-wide supply constraints. We experienced strength in notebook demand and recovery in desktop demand, partially offset by lower notebook ASPs due to strength in the consumer and education market segments. DCG was down on lower ASPs driven by product mix and a competitive environment, partially offset by higher platform1 volume from recovery in the enterprise and government market segment. IOTG and Mobileye both achieved strong results on higher demand amid recovery from the economic impacts of COVID-19. We invested $15.2 billion in R&D, made capital investments of $18.7 billion, and generated $30.0 billion in cash from operations and $11.3 billion of free cash flow. | | | | | | | | |  | | |

| | | | | | | "We achieved solid results amid a highly constrained industry-wide supply environment while continuing to maintain a strong balance sheet and liquidity position. With our IDM 2.0 strategy, we enter a phase of significant investment, positioning us for product leadership and long-term growth." —David Zinsner, *Chief Financial Officer* | | | | | |

| $79.0B | | | $74.7B | | | | | | $19.5B | | | | | | $22.2B | | | | | | $4.86 | | | | | | $5.47 | | | | | | $30.0B | | | | | | $11.3B | | |

| Revenue up 1% from 2020 | | | Revenue up 2% from 2020 | | | | | | Operating income down $4.2B or 18% from 2020; 2021 operating margin at 25% | | | | | | Operating income down $2.2B or 9% from 2020; 2021 operating margin at 30% | | | | | | Diluted EPS down $0.08 or 2% from 2020 | | | | | | Diluted EPS up $0.37 or 7% from 2020 | | | | | | Operating cash flow down $5.4B or 15% | | | | | | Free cash flow down $9.9B or 47% | | |

| Higher revenue in CCG, IOTG, Mobileye, and PSG, partially offset by declines in DCG and NSG. Non-GAAP revenue excludes NSG. | | | | | | | | | Higher gross margin from higher platform and adjacent1 revenue and Corporate revenue from a prepaid customer supply agreement, partially offset by a Corporate charge related to VLSI litigation, higher period charges from ramp of process technology, and higher operating expenses on increased R&D investment. Non-GAAP operating income incrementally excludes, amortization of acquisition-related intangibles, restructuring and the charge related to VLSI litigation. | | | | | | | | | | | | Lower operating income partially offset by equity investment gains, lower effective tax rate, and lower shares. Non-GAAP results incrementally exclude ongoing mark-to-market adjustments and tax impacts of non-GAAP adjustments. | | | | | | | | | | | | Lower operating cash flow driven by a decrease in net working capital contributions and cash paid to settle a prepaid customer supply agreement in Q1 2021, partially offset by a McAfee special dividend received in Q3 2021. Free cash flow decreased due to lower operating cash flow and higher capital expenditures. | | | | | | | | |

Investing in our IDM 2.0 strategy for the long term

To support our IDM 2.0 strategy, we are making significant capital investments to increase our manufacturing capacity and accelerate our process technology roadmap, as well as increasing our investments in R&D.

We believe these investments will position us for accelerating long-term revenue growth.

We expect our long-term revenue outlook to accelerate to a 10% to 12% year-over-year growth rate by the end of our five-year horizon as supply normalizes and our investments add capacity and drive leadership products.

We expect gross margins to be impacted by our investments in capacity and the acceleration of our process technology, resulting in expected non-GAAP gross margins percentages between 51% and 53%2 over the next several years before moving upward.

We also expect our capital expenditures to increase above historical levels for the next several years.

We expect our cash from operations to be strong, but our capital investments to pressure our free cash flow in the short term.

[Table](#i6c9ced68f6b24d58a3dcf326e8c3c699_16) [of](#i6c9ced68f6b24d58a3dcf326e8c3c699_16) [Contents](#i6c9ced68f6b24d58a3dcf326e8c3c699_16)

New CEO and leadership team changes

Our new CEO Pat Gelsinger joined Intel on February 15, 2021 and made several senior leadership changes throughout the year.

We also named our new CFO David Zinsner in January 2022.

Mr. Gelsinger returns to Intel, where he previously spent 30 years of his career, learned at the feet of Intel’s founders, and served as our first Chief Technology Officer.

IDM 2.0

On March 23, 2021, we announced our "IDM 2.0" strategy, the next evolution of our IDM model.

Our IDM 2.0 strategy combines our internal factory network, strategic use of external foundries, and our new IFS business to position us to drive technology and product leadership.

To accelerate this strategy, we announced plans to invest $20 billion to build two new fabs in Arizona, which we broke ground on in September, and we recently announced plans to invest more than $20 billion in the construction of two new leading-edge fabs in Ohio.

We also announced approximately $10.5 billion total investment to equip our Rio Rancho, New Mexico and Malaysia sites for advanced packaging manufacturing.

In August, the US Department of Defense announced that IFS will lead the first phase of its multi-phase RAMP-C program to facilitate the use of a domestic commercial foundry infrastructure.

Process and packaging technology roadmaps

At the Intel Accelerated event in July 2021, we provided an update on our manufacturing process and packaging technology roadmaps.

We introduced future nodes, including Intel 3 and Intel 20A, and discussed future process and packaging technologies, such as our PowerVia, RibbonFET, Foveros Omni, and Foveros Direct technologies.

As part of the update, we also introduced a new naming structure for our manufacturing process nodes, which includes the name changes summarized in "Key Terms" within Notes to Consolidated Financial Statements.

| 12th Gen Intel® Core™ processors | | | | | |  | | |

| We announced the 12th Gen Intel Core processor family (Alder Lake), the first on the Intel 7 process, with real-world performance for enthusiast gamers and professional creators. Alder Lake is the first processor based on our performance hybrid architecture featuring a combination of Performance-cores, the highest performing CPU cores Intel has built, and Efficient-cores designed for scalable multi-threaded workload performance. | | | | | | | | |

| We launched the 3rd Gen Intel® Xeon® Scalable CPU (Ice Lake), which boasts up to 40 cores and delivers a significant increase in performance, on average, compared to the previous generation. The chips include a set of built-in security features, cryptographic acceleration, and AI. | | | | | | | | |

| We also introduced a broad, data-centric portfolio for 5G network infrastructure, including an SoC for wireless base stations, structured ASICs for 5G network acceleration, and a 5G network-optimized Ethernet NIC. | | | | | | | | |

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To reflect our focus on transforming from a PC-centric1 company to a data-centric company, we have presented our data-centric businesses1 first in the "Segment Trends and Results" within MD&A.

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| Contractual Obligations | | | | | | [45](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_214) | | |

| Selected Financial Data | | | | | | [50](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_232) | | |

| Intellectual Property Rights and Licensing | | | | | | [52](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_241) | | |

| Risk Factors | | | | | | [53](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_247) | | |

| Properties | | | | | | [65](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_253) | | |

| Auditor's Reports | | | | | | [71](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_277) | | |

| Key Terms | | | | | | [110](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_481) | | |

| Financial Information by Quarter | | | | | | [112](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_484) | | |

| Controls and Procedures | | | | | | [113](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_487) | | |

| Exhibits | | | | | | [114](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_490) | | |

*1* *Intel's definition is included in "Key Terms" within the Financial Statements and Supplemental Details.*

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| We achieved record revenue of $77.9 billion, with 49% from our data-centric businesses, amid the effects of the COVID-19 pandemic. The dynamic of work and learn from home resulted in strong demand for notebook PCs, while demand for desktop PCs weakened. Demand in the DCG cloud service providers market segment grew, while enterprise and government declined on macroeconomic weakness. We shipped a higher volume of 10nm products than we had anticipated at the beginning of the year. The increased mix of 10nm, combined with a higher portion of revenue from lower margin adjacent businesses, offset higher platform revenue and drove a decline in gross margin of 3 percentage points. We invested $13.6 billion in R&D, reduced our spending to 25.3% of revenue, and signed an agreement to divest our NAND memory business. We made capital investments of $14.3 billion, and generated $35.4 billion cash from operations and $21.1 billion of free cash flow. We also returned $19.8 billion to stockholders, including $5.6 billion in dividends and $14.2 billion in buybacks. | | | | | | | | |  | | |

| | | | | | | "We achieved record revenue for the fifth consecutive year and maintained a strong balance sheet and liquidity position. Our results amid the challenges of a global pandemic and an uncertain economy reflect the importance of our technology and the resilience of our employees around the world." —George Davis, Chief Financial Officer | | | | | |

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| $77.9B | | | | | | | | | $23.7B | | | | | | $25.3B | | | | | | $4.94 | | | | | | $5.30 | | | | | | $35.4B | | | | | | $21.1B | | |

| Revenue up 8% from 2019; Data-centric up 9% and PC-centric up 8% | | | | | | | | | Operating income up $1.6B or 7% from 2019; 2020 operating margin at 30% | | | | | | Operating income up $1.5B or 6% from 2019; 2020 operating margin at 32% | | | | | | Diluted EPS up $0.23 or 5% from 2019 | | | | | | Diluted EPS up $0.43 or 9% from 2019 | | | | | | Operating cash flow up $2.2B or 7%; operating cash flow to net income at 169% | | | | | | Free cash flow up $4.2B or 25%; free cash flow to non-GAAP net income at 94% | | |

| Strong demand in notebook PCs and DCG cloud and communications market segments, and NAND pricing recovery, partially offset by weakened demand in desktop PCs and lower platform2 ASPs | | | | | | | | | Higher gross margin dollars driven by higher platform unit sales, NAND pricing recovery, and improved NAND unit cost, partially offset by higher platform unit cost with increased 10nm product mix, and lower platform ASPs | | | | | | | | | | | | Higher gross margin dollars, lower shares outstanding, and equity investment gains, partially offset by higher effective tax rate | | | | | | | | | | | | Working capital changes driven by accounts receivable, inventory and income taxes offset by other assets and liabilities; free cash flow up due to higher operating cash flow and lower capital spending | | | | | | | | |

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| Low single-digit growth over the next three years to $76B-$78B; data-centric businesses high single- digit growth and PC-centric business approximately flat to slightly down | | | | | | | | | Keep non-GAAP operating margin roughly flat at approximately 32% over the next three years | | | | | | | | | Grow non-GAAP diluted EPS in line with revenue over the next three years | | | | | | | | | Achieve free cash flow of approximately 80% of non-GAAP net income by 2021 | | | | | |

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| Progress | | | | | | | | | Progress | | | | | | | | | Progress | | | | | | | | | Progress | | | | | |

| Revenue grew 8% from 2019 to 2020, to $77.9B | | | | | | | | | Non-GAAP operating margin was 32% in 2020 | | | | | | | | | Non-GAAP diluted EPS grew 9% from 2019 to 2020; revenue grew 8% over the same period | | | | | | | | | Free cash flow in 2020 was 94% of non-GAAP net income | | | | | |

*3* *2019-2021 goals were announced during the May 2019 Investor Meeting.*

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| The COVID-19 pandemic has changed the lives of our employees, our customers, and our community. We are proud of how our team has responded, showing resilience, innovating in real time, and demonstrating the tremendous value of our worldwide manufacturing network to customers and partners around the world. Additionally, we launched our Pandemic Response Technology Initiative, which supports essential workers, hard-hit businesses, and students of all ages with Intel-funded projects led by employees along with our global customers and partners. We have learned vital lessons about the critical role technology can play, and has played, in so many areas during the pandemic—from healthcare and telehealth, to remote learning, to innovative technology solutions to help businesses safely reopen. Most importantly, as a company, we have learned to operate with more empathy, agility, and velocity. We look at our products not for what we know they can do, but for what they might be able to do in a changed world. | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Data-Centric Businesses Expand with New Opportunities | | | | | | | | | | | | | | | PC-Centric Business Innovates | | | | | | | | | | | |

| Data-centric portfolio for 5G network infrastructure | | | | | | | | | | | | | | | 11th Gen Intel® Core™ processors | | | | | | | | | | | |

| Item 2. | | | Properties | | | Pages [12](#i6c9ced68f6b24d58a3dcf326e8c3c699_52), [64](#i6c9ced68f6b24d58a3dcf326e8c3c699_217) | | |

| Item 3. | | | Legal Proceedings | | | Pages [105](#i6c9ced68f6b24d58a3dcf326e8c3c699_442)\-[110](#i6c9ced68f6b24d58a3dcf326e8c3c699_445) | | |

| Item 2. | | | Properties | | | Pages [12](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_4546), [65](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_253) | | |

| Item 3. | | | Legal Proceedings | | | Pages [106](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_475)\-[109](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_478) | | |

| Item 5. | | | Market for Registrant's Common Equity, Related Stockholder [removed: Matters] [added: Matters,] and Issuer Purchases of Equity Securities | | | Pages [removed: [9](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_52), [66](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_256)\-[67](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_262)] [added: [9](#i6c9ced68f6b24d58a3dcf326e8c3c699_1099511631927), [64](#i6c9ced68f6b24d58a3dcf326e8c3c699_220)\-[65](#i6c9ced68f6b24d58a3dcf326e8c3c699_226)] | | |

| Item 6. | | | Selected Financial Data | | | Page [50](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_232) | | |

| Item 9A. | | | Controls and Procedures | | | Page [removed: [113](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_487)] [added: [114](#i6c9ced68f6b24d58a3dcf326e8c3c699_454)] | | |

| | | | Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934 | | | Page [67](#i6c9ced68f6b24d58a3dcf326e8c3c699_4101) | | |

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| Part III | | | | | | | | |

| Item 10. | | | Directors, Executive Officers and Corporate Governance | | | Page [68](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_268), (b) | | |

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| Part III | | | | | | | | |

| Item 10. | | | Directors, Executive Officers, and Corporate Governance | | | Page [66](#i6c9ced68f6b24d58a3dcf326e8c3c699_229), (a) | | |

| Item 15. | | | Exhibits and Financial Statement Schedules | | | Pages [removed: [114](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_490)\-[118](#i63d840d8a6434f9ea0b4b4bad0e8d3d6_502)] [added: [115](#i6c9ced68f6b24d58a3dcf326e8c3c699_457)\-[119](#i6c9ced68f6b24d58a3dcf326e8c3c699_466)] | | |

[removed: *(b)] [added: *(a)] Incorporated by reference to "Proposal 1: Election of Directors," "Corporate Governance," [removed: and] "Code of [removed: Conduct"] [added: Conduct," and "Other Matters-Delinquent Section 16(a) Reports"] in the [removed: 2021] [added: 2022] Proxy Statement.

[removed: *(c)] [added: *(b)] Incorporated by reference to "Director Compensation," "Compensation Discussion and Analysis," "Report of the Compensation Committee," and "Executive Compensation" in the [removed: 2021] [added: 2022] Proxy Statement.*

[removed: *(d)] [added: *(c)] Incorporated by reference to "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in the [removed: 2021] [added: 2022] Proxy Statement.*

[removed: *(e)] [added: *(d)] Incorporated by reference to "Corporate Governance" and "Certain Relationships and Related Transactions" in the [removed: 2021] [added: 2022] Proxy Statement.*

[removed: *(f)] [added: *(e)] Incorporated by reference to "Report of the Audit Committee" and "Proposal 2: Ratification of Selection of Independent Registered Public Accounting Firm" in the [removed: 2021] [added: 2022] Proxy Statement.*

| [removed: ] [added: ] | | | Supplemental Details | | | [removed: 119] [added: 120] | | |

| | | | Chief Executive Officer, Director, and Principal Executive Officer | | | | | | | | | Executive Vice President, Chief Financial Officer, [removed: and] [added: Principal] | | |

| | | | January [removed: 21, 2021] [added: 26, 2022] | | | | | | | | | [removed: Principal] Financial [added: Officer, and Principal Accounting] Officer | | |

| | | | /s/ DR. OMAR ISHRAK | | | | | | | | | /s/ [removed: ANDREW WILSON] [added: FRANK D. YEARY] | | |

| | | | Dr. Omar Ishrak | | | | | | | | | [removed: Andrew Wilson] [added: Frank D. Yeary] | | |

| | | | /s/ DR. RISA LAVIZZO-MOUREY | | | | | | | | | [removed: /s/ FRANK D. YEARY] | | |

| | | | Dr. Risa Lavizzo-Mourey | | | | | | | | | [removed: Frank D. Yeary] | | |

| | | | /s/ [removed: DR. TSU-JAE KING LIU] [added: JAMES J. GOETZ] | | | | | | | | | [added: /s/ DR. TSU-JAE KING LIU] | | |

| | | | [removed: Dr. Tsu-Jae King Liu] [added: James J. Goetz] | | | | | | | | | [added: Dr. Tsu-Jae King Liu] | | |

| [removed: ] [added: ] | | | Supplemental Details | | | [removed: 120] [added: 121] | | |

| Signatures | | | | | | Page [121](#i6c9ced68f6b24d58a3dcf326e8c3c699_472) | | |

| | | | By: | | | | | | /s/ PATRICK P. GELSINGER | | |

| | | | | | | | | | Patrick P. Gelsinger | | |

| | | | | | | | | | January 26, 2022 | | |

| | | | /s/ PATRICK P. GELSINGER | | | | | | | | | /s/ DAVID ZINSNER | | |

| | | | Patrick P. Gelsinger | | | | | | | | | David Zinsner | | |

| | | | | | | | | | | | | January 26, 2022 | | |

| | | | January 26, 2022 | | | | | | | | | January 26, 2022 | | |

| | | | /s/ DR. ANDREA J. GOLDSMITH | | | | | | | | | /s/ GREGORY D. SMITH | | |

| | | | Andrea J. Goldsmith | | | | | | | | | Gregory D. Smith | | |

| | | | January 26, 2022 | | | | | | | | | January 26, 2022 | | |

| | | | January 26, 2022 | | | | | | | | | January 26, 2022 | | |

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*(a) As of December 26, 2020, we did not have any significant off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.*

| | | | By: | | | | | | /s/ ROBERT H. SWAN | | |

| | | | | | | | | | Robert H. Swan | | |

| | | | | | | | | | January 21, 2021 | | |

| | | | /s/ ROBERT H. SWAN | | | | | | | | | /s/ GEORGE S. DAVIS | | |

| | | | Robert H. Swan | | | | | | | | | George S. Davis | | |

| | | | | | | | | | | | | January 21, 2021 | | |

| | | | /s/ KEVIN T. MCBRIDE | | | | | | | | | | | |

| | | | Kevin T. McBride | | | | | | | | | | | |

| | | | Vice President of Finance, Corporate Controller, and Principal Accounting Officer | | | | | | | | | | | |

| | | | January 21, 2021 | | | | | | | | | | | |

| | | | /s/ JAMES J. GOETZ | | | | | | | | | /s/ GREGORY D. SMITH | | |

| | | | James J. Goetz | | | | | | | | | Gregory D. Smith | | |

| | | | January 21, 2021 | | | | | | | | | January 21, 2021 | | |

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