Stock Analysis on Net
Stock Analysis on Net

Intel Corp. (NASDAQ:INTC)

Analysis of Income Taxes

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Income Tax Expense (Benefit)

Intel Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Federal 1,120  1,391  2,786  10,207  1,319 
State 46  37  (11) 27  13 
Non-U.S. 1,244  1,060  1,097  899  756 
Current provision for taxes 2,410  2,488  3,872  11,133  2,088 
Federal 1,369  597  (1,389) (220) 658 
State 25  1  11  —  — 
Other 375  (76) (230) (162) (126)
Deferred provision for taxes 1,769  522  (1,608) (382) 532 
Provision for taxes 4,179  3,010  2,264  10,751  2,620 

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Item Description The company
Current provision for taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Intel Corp.’s current provision for taxes decreased from 2018 to 2019 and from 2019 to 2020.
Deferred provision for taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Intel Corp.’s deferred provision for taxes increased from 2018 to 2019 and from 2019 to 2020.
Provision for taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intel Corp.’s provision for taxes increased from 2018 to 2019 and from 2019 to 2020.

Effective Income Tax Rate (EITR)

Intel Corp., effective income tax rate (EITR) reconciliation

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Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Statutory federal income tax rate 21.00% 21.00% 21.00% 35.00% 35.00%
Non-U.S. income taxed at different rates -3.70% -3.70% -3.60% -7.60% -11.70%
Research and development tax credits -2.10% -2.30% -2.70% -2.30% -2.30%
Domestic manufacturing deduction benefit 0.00% 0.00% 0.00% -1.30% -1.40%
Foreign derived intangible income benefit -1.90% -3.20% -3.70% 0.00% 0.00%
Change in permanent reinvestment assertion 1.60% 0.00% 0.20% 0.00% 0.00%
Settlements, effective settlements, and related remeasurements 0.00% 0.00% 0.00% 0.00% -0.10%
ISecG divestiture 0.00% 0.00% 0.00% 3.30% 0.00%
Other 1.80% 0.70% -0.20% -1.10% 0.80%
Effective tax rate, before Tax Reform 16.70% 12.50% 11.00% 26.00% 20.30%
Tax Reform 0.00% 0.00% -1.30% 26.80% 0.00%
Effective tax rate 16.70% 12.50% 9.70% 52.80% 20.30%

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Item Description The company
Effective tax rate, before Tax Reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Intel Corp.’s effective tax rate, before Tax Reform increased from 2018 to 2019 and from 2019 to 2020.

Components of Deferred Tax Assets and Liabilities

Intel Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Accrued compensation and other benefits 865  740  570  711  1,182 
Share-based compensation 324  294  273  241  373 
Deferred income —  —  —  211  596 
Inventory 835  760  517  675  1,044 
State credits and net operating losses 1,829  1,511  1,297  1,081  846 
Other, net 617  515  512  887  1,187 
Gross deferred tax assets 4,470  3,820  3,169  3,806  5,228 
Valuation allowance (1,963) (1,534) (1,302) (1,171) (953)
Deferred tax assets 2,507  2,286  1,867  2,635  4,275 
Property, plant and equipment (3,109) (1,807) (878) (943) (1,574)
Licenses and intangibles (725) (720) (744) (881) (1,036)
Convertible debt —  (88) (204) (374) (1,098)
Unrealized gains on investments and derivatives (735) (292) (266) (421) (940)
Unremitted earnings of non-U.S. subsidiaries (403) (28) —  —  — 
Transition tax —  —  —  (1,850) — 
Other, net (146) (186) (318) (373) (450)
Deferred tax liabilities (5,118) (3,121) (2,410) (4,842) (5,098)
Net deferred tax assets (liabilities) (2,611) (835) (543) (2,207) (823)

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intel Corp.’s gross deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Intel Corp.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Intel Corp.’s net deferred tax assets (liabilities) decreased from 2018 to 2019 and from 2019 to 2020.

Deferred Tax Assets and Liabilities, Classification

Intel Corp., deferred tax assets and liabilities, classification

US$ in millions

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Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Deferred tax assets 1,232  1,209  1,122  840  907 
Deferred tax liabilities 3,843  2,044  1,665  3,046  1,730 

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Intel Corp.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Intel Corp.’s deferred tax liabilities increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Deferred Taxes

Intel Corp., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 153,091  136,524  127,963  123,249  113,327 
Less: Noncurrent deferred tax assets, net 1,232  1,209  1,122  840  907 
Total assets (adjusted) 151,859  135,315  126,841  122,409  112,420 
Adjustment to Total Liabilities
Total liabilities (as reported) 72,053  58,865  52,981  53,364  46,219 
Less: Noncurrent deferred tax liabilities, net 3,843  2,044  1,665  3,046  1,730 
Total liabilities (adjusted) 68,210  56,821  51,316  50,318  44,489 
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 81,038  77,504  74,563  69,019  66,226 
Less: Net deferred tax assets (liabilities) (2,611) (835) (543) (2,207) (823)
Stockholders’ equity (adjusted) 83,649  78,339  75,106  71,226  67,049 
Adjustment to Net Income
Net income (as reported) 20,899  21,048  21,053  9,601  10,316 
Add: Deferred income tax expense (benefit) 1,769  522  (1,608) (382) 532 
Net income (adjusted) 22,668  21,570  19,445  9,219  10,848 

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Intel Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Intel Corp., adjusted financial ratios

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Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 26.84% 29.25% 29.72% 15.30% 17.37%
Adjusted net profit margin 29.11% 29.97% 27.45% 14.69% 18.27%
Total Asset Turnover
Reported total asset turnover 0.51 0.53 0.55 0.51 0.52
Adjusted total asset turnover 0.51 0.53 0.56 0.51 0.53
Financial Leverage
Reported financial leverage 1.89 1.76 1.72 1.79 1.71
Adjusted financial leverage 1.82 1.73 1.69 1.72 1.68
Return on Equity (ROE)
Reported ROE 25.79% 27.16% 28.24% 13.91% 15.58%
Adjusted ROE 27.10% 27.53% 25.89% 12.94% 16.18%
Return on Assets (ROA)
Reported ROA 13.65% 15.42% 16.45% 7.79% 9.10%
Adjusted ROA 14.93% 15.94% 15.33% 7.53% 9.65%

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intel Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intel Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Intel Corp.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Intel Corp.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Intel Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Intel Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 20,899  21,048  21,053  9,601  10,316 
Net revenue 77,867  71,965  70,848  62,761  59,387 
Profitability Ratio
Net profit margin1 26.84% 29.25% 29.72% 15.30% 17.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 22,668  21,570  19,445  9,219  10,848 
Net revenue 77,867  71,965  70,848  62,761  59,387 
Profitability Ratio
Adjusted net profit margin2 29.11% 29.97% 27.45% 14.69% 18.27%

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 20,899 ÷ 77,867 = 26.84%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 22,668 ÷ 77,867 = 29.11%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Intel Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net revenue 77,867  71,965  70,848  62,761  59,387 
Total assets 153,091  136,524  127,963  123,249  113,327 
Activity Ratio
Total asset turnover1 0.51 0.53 0.55 0.51 0.52
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenue 77,867  71,965  70,848  62,761  59,387 
Adjusted total assets 151,859  135,315  126,841  122,409  112,420 
Activity Ratio
Adjusted total asset turnover2 0.51 0.53 0.56 0.51 0.53

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

2020 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 77,867 ÷ 153,091 = 0.51

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 77,867 ÷ 151,859 = 0.51

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intel Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 153,091  136,524  127,963  123,249  113,327 
Stockholders’ equity 81,038  77,504  74,563  69,019  66,226 
Solvency Ratio
Financial leverage1 1.89 1.76 1.72 1.79 1.71
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 151,859  135,315  126,841  122,409  112,420 
Adjusted stockholders’ equity 83,649  78,339  75,106  71,226  67,049 
Solvency Ratio
Adjusted financial leverage2 1.82 1.73 1.69 1.72 1.68

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

2020 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 153,091 ÷ 81,038 = 1.89

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 151,859 ÷ 83,649 = 1.82

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Intel Corp.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 20,899  21,048  21,053  9,601  10,316 
Stockholders’ equity 81,038  77,504  74,563  69,019  66,226 
Profitability Ratio
ROE1 25.79% 27.16% 28.24% 13.91% 15.58%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 22,668  21,570  19,445  9,219  10,848 
Adjusted stockholders’ equity 83,649  78,339  75,106  71,226  67,049 
Profitability Ratio
Adjusted ROE2 27.10% 27.53% 25.89% 12.94% 16.18%

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

2020 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 20,899 ÷ 81,038 = 25.79%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 22,668 ÷ 83,649 = 27.10%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Intel Corp.’s adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 20,899  21,048  21,053  9,601  10,316 
Total assets 153,091  136,524  127,963  123,249  113,327 
Profitability Ratio
ROA1 13.65% 15.42% 16.45% 7.79% 9.10%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 22,668  21,570  19,445  9,219  10,848 
Adjusted total assets 151,859  135,315  126,841  122,409  112,420 
Profitability Ratio
Adjusted ROA2 14.93% 15.94% 15.33% 7.53% 9.65%

Based on: 10-K (filing date: 2021-01-22), 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 20,899 ÷ 153,091 = 13.65%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 22,668 ÷ 151,859 = 14.93%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Intel Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.