Intel Corp. (NASDAQ:INTC)

Current Provision for Taxes

The current provision for taxes showed an increasing trend from 2410 million US$ in 2020 to 2577 million US$ in 2021. It then spiked significantly to 4909 million US$ in 2022, followed by a sharp decrease to 1096 million US$ in 2023. In 2024, it rose again to 1956 million US$, indicating considerable volatility over the five-year period.

Deferred Provision for (Benefit from) Taxes

The deferred provision for taxes exhibited considerable fluctuations. It was positive at 1769 million US$ in 2020 but turned negative in 2021 and 2022, recording -742 million US$ and -5158 million US$, respectively. This negative trend reduced somewhat in 2023 to -2009 million US$, before reversing dramatically to a significant positive value of 6067 million US$ in 2024. This suggests substantial changes in timing differences or tax planning strategies influencing deferred tax assets and liabilities.

Total Provision for (Benefit from) Taxes

The overall provision, which combines current and deferred amounts, started strong at 4179 million US$ in 2020, then declined sharply to 1835 million US$ in 2021. It turned negative in 2022 and 2023, with -249 million US$ and -913 million US$ respectively, indicating a net tax benefit in those years. However, in 2024, the total provision surged to a high level of 8023 million US$, driven primarily by the large positive deferred tax provision.

Summary

The data reflects notable volatility in both current and deferred tax provisions, with the deferred component experiencing the most dramatic swings. The significant negative deferred tax figures in 2021 through 2023 suggest periods of deferred tax benefits possibly linked to tax asset utilization or changes in tax legislation. The sharp reversal in 2024, with a large deferred tax expense, contributed to a substantial total tax expense that year. These variations highlight dynamic tax management and the impact of underlying operational or accounting changes over the period analyzed.

The analysis of the annual financial data reveals several notable trends and fluctuations in tax-related components over the five-year period under review.

Statutory Federal Income Tax Rate

The statutory federal income tax rate remains constant at 21% throughout the entire period, indicating no changes in the baseline federal tax obligation.

Federal Valuation Allowance

This metric appears only in the most recent period (Dec 28, 2024) with a significant negative value of -93.2%, suggesting a considerable reduction in valuation allowance, which could impact deferred tax assets or liabilities.

Goodwill Impairment

Goodwill impairment is reported only in 2024 at -2.1%, indicating a reduction in goodwill’s carrying amount, which may reflect asset write-downs affecting tax considerations.

Share-based Compensation

Share-based compensation shows high volatility: it was absent in the initial three years, then increased sharply to 34.3% in 2022, followed by a drastic decline to -4.2% in 2024. This indicates fluctuating impacts of equity-based payments on tax calculations.

Unrecognized Tax Benefits and Settlements

There is a consistent upward trend from 0.6% in 2020 to 16.3% in 2023, followed by a sharp decline to -1.3% in 2024. This suggests increasing uncertainty or adjustments in tax positions until 2023, then a reversal or settlement impact in 2024.

Non-US Income Taxed at Different Rates

This item shows an increasing negative trend from -3.7% in 2020 to a sharp -60.6% in 2023, before rebounding to 5.3% in 2024. The pattern indicates significant changes in international tax exposures, possibly due to tax law changes or profit shifts.

Research and Development Tax Credits

Starting with mild negative values (-2.1% in 2020), the R&D tax credits deepen substantially to -99% in 2023 before shifting positive to 5.6% in 2024. This suggests a peak in R&D credit utilization or recognition in 2023 followed by normalization or reversal.

Foreign Derived Intangible Income Benefit

This benefit shows a steady increasing negative contribution from -1.9% in 2020 through -25.1% in 2023, with no data for 2024. The negative values indicate a growing tax benefit reducing overall taxable income from intangible assets abroad.

Restructuring of Certain Non-U.S. Subsidiaries

Reported from 2021 to 2023 with negative percentages fading from -3.4% to -15.8%, this item suggests ongoing tax impacts related to international restructuring activities, with no data for 2024.

Non-Deductibility of European Commission Fine

Seen only in 2022 and 2023, the values shift from -4.1% to 11.1%, indicating a fluctuating effect of such fines on the tax expense, possibly reflecting changes in deductibility treatment or fine amounts.

Change in Permanent Reinvestment Assertion

Reported only in 2020 at 1.6%, this indicates a minor positive contribution to the effective tax rate related to changes in reinvestment assertions of foreign earnings.

Other

This category shows moderate fluctuations around zero, with 1.2% in 2020 declining to -2.7% in 2024, indicating miscellaneous effects with no clear trend.

Effective Tax Rate

The effective tax rate exhibits dramatic volatility, declining from 16.7% in 2020 to 8.5% in 2021, turning negative at -3.2% in 2022, plummeting sharply to -119.8% in 2023, and remaining significantly negative at -71.6% in 2024. This pattern points to periods of negative tax expense, possibly due to tax benefits, credits, or adjustments, greatly diverging from the statutory rate.

Overall, the data portrays a complex and volatile tax environment, heavily influenced by international operations, tax credits, and significant tax adjustments in recent years. The persistent divergence between the effective tax rate and the statutory rate highlights the considerable impact of these factors on the company’s tax obligations.

R&D Expenditures Capitalization

The R&D expenditures capitalization demonstrates a significant upward trend, increasing from 519 million in 2021 to 10,709 million by the end of 2024. This reflects escalating investment in research and development activities with a notable acceleration after 2021.

State Credits and Net Operating Losses

State credits and net operating losses have steadily increased over the period, from 1,829 million in 2020 to 2,830 million in 2024. This consistent rise suggests growing tax credits and accumulated losses available for utilization.

Inventory

Inventory levels climbed sharply from 835 million in 2020 to a peak of 1,788 million in 2022, followed by a decline to 1,054 million in 2024. The initial buildup may indicate stockpiling or production increases, while the later reduction points to inventory drawdown or improved management.

Accrued Compensation and Other Benefits

Accrued compensation and other benefits showed moderate fluctuations, rising from 865 million in 2020 to 1,031 million in 2022, then decreased to 931 million in 2023 before a slight rebound to 970 million in 2024. The pattern reflects relatively stable employee-related liabilities.

Share-based Compensation

Share-based compensation increased steadily from 324 million in 2020, peaking at 586 million in 2023, then declined to 444 million in 2024. This suggests growing use of equity-based rewards followed by a reduction in the most recent period.

Litigation Charge

The litigation charge appeared starting in 2021 at 467 million, staying relatively constant through 2022, declining to 308 million in 2023, and rising again to 447 million in 2024. This volatility indicates ongoing legal costs with fluctuating annual impacts.

Other, Net (Assets)

The "Other, net" assets increased steadily from 617 million in 2020 to 1,510 million in 2024, demonstrating continuous accrual of miscellaneous assets or income components.

Gross Deferred Tax Assets

Gross deferred tax assets nearly quadrupled, from 4,470 million in 2020 to 17,964 million in 2024, showing a strong accumulation of potential future tax benefits.

Valuation Allowance

The valuation allowance trend shows an increase in negative value from -1,963 million in 2020 to -3,047 million in 2023, then a sharp plunge to -13,974 million in 2024. The sudden increase in allowance in 2024 suggests a significant reassessment of the realizability of deferred tax assets.

Deferred Tax Assets

Deferred tax assets grew substantially from 2,507 million in 2020 to 11,484 million in 2023, followed by a sharp decline to 3,990 million in 2024. This fluctuation correlates with the substantial change in valuation allowance noted in the final year.

Property, Plant, and Equipment

Property, plant, and equipment show negative balances increasing from -3,109 million in 2020 to a peak negative of -5,156 million in 2023, then a reduction to -4,063 million in 2024, suggesting net asset disposals or depreciation effects.

Licenses and Intangibles

Licenses and intangibles remain negative throughout but with a decreasing absolute value from -725 million in 2020 to -159 million in 2024, indicating asset amortization or impairment gradually diminishing these intangible assets.

Unrealized Gains on Investments and Derivatives

Unrealized gains consistently show negative values, decreasing from -735 million in 2020 to -224 million in 2024, reflecting reduced unrealized losses on investments and derivatives over time.

Unremitted Earnings of Non-US Subsidiaries

Data for unremitted earnings of non-US subsidiaries is only available for 2020 at -403 million, with no subsequent data, making trend analysis inconclusive.

Other, Net (Liabilities)

Other net liabilities show variable negative balances, moving from -146 million in 2020 to -470 million in 2022, improving to -203 million in 2023 and then worsening again to -403 million in 2024. This volatility indicates fluctuating other liabilities or adjustments.

Deferred Tax Liabilities

Deferred tax liabilities have steadily increased in negative value from -5,118 million in 2020 to -6,211 million in 2023, before declining to -4,849 million in 2024, reflecting changing tax obligations over time.

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) shift from a significant negative balance of -2,611 million in 2020 to a positive 5,273 million in 2023, before reversing to a negative -859 million in 2024. This pattern indicates improving net tax asset positions up to 2023, then a substantial deterioration in the latest period.

Deferred tax assets

The deferred tax assets exhibit significant volatility over the observed periods. Beginning at $1,232 million in 2020, the assets decreased notably to $874 million in 2021. Following this decline, there is a substantial increase to $3,450 million in 2022 and further growth to $5,459 million in 2023. However, the value sharply declines again to $603 million in 2024. This pattern indicates pronounced fluctuations in deferred tax assets, with no clear steady upward or downward trend over the five years.

Deferred tax liabilities

The deferred tax liabilities show a general downward trend from 2020 through 2023, starting from $3,843 million in 2020 and decreasing to $2,667 million in 2021, then sharply dropping to $202 million in 2022 and $186 million in 2023. In 2024, however, there is an abrupt increase to $1,462 million. This suggests a substantial reduction in tax liabilities over several years, followed by a partial reversal in the most recent period.

Overall observations

The data reveals a high level of variability in both deferred tax assets and liabilities across the periods. Deferred tax assets increased significantly during the mid-period years before a notable decline in the final year, while deferred tax liabilities decreased consistently for several years before a sizable rebound. These fluctuations may reflect changes in tax positions, accounting adjustments, or strategic tax planning activities over time.

The data reflects the financial position and performance over five consecutive years, with adjustments to reported figures for income tax effects, allowing a more nuanced assessment of the underlying business trends.

Total Assets

Reported total assets show a consistent upward trajectory from $153.1 billion in 2020 to $196.5 billion in 2024. The adjusted total assets, which exclude deferred tax effects, generally follow the same increasing trend but remain slightly lower each year, rising from $151.9 billion to $195.9 billion over the period. This suggests overall growth in asset base, with deferred tax adjustments having a moderate reducing effect on asset valuation.

Total Liabilities

Reported liabilities increased steadily from approximately $72.1 billion in 2020 to $91.5 billion in 2024, indicating greater financial obligations over time. Adjusted liabilities track this trend closely but are consistently lower, rising from $68.2 billion to $90.0 billion. The narrowing gap between reported and adjusted liabilities in later years suggests deferred tax liabilities are diminishing or being remeasured downward.

Stockholders’ Equity

The reported stockholders’ equity increased from $81.0 billion in 2020 to a peak of $105.6 billion in 2023 but then declined to $99.3 billion in 2024. Adjusted equity figures follow a similar progression, increasing from $83.6 billion to $100.3 billion in 2023 and showing a slight decrease to $100.1 billion in 2024. The divergence between reported and adjusted equity values narrows over time, indicating changes in deferred tax treatments affecting equity components.

Net Income Attributable to Intel

Reported net income demonstrates a downward trend, with strong positive earnings in 2020 and 2021 ($20.9 billion and $19.9 billion respectively), a sharp decline in 2022 to $8.0 billion, a near breakeven outcome in 2023 ($1.7 billion), and a substantial loss of $18.8 billion in 2024. Adjusted net income shows a similar trend but with consistently lower values, and the losses in the last two years are somewhat less severe, albeit still negative ($-0.3 billion in 2023, and $-12.7 billion in 2024). This indicates significant negative impacts on profitability from operational or non-operational factors, partly mitigated after tax adjustments.

Overall, the company’s asset and liability bases have expanded steadily, demonstrating growth in scale. However, profitability has deteriorated markedly in recent years, with sharp declines culminating in sizable net losses by 2024. Adjustments for deferred taxes moderate these trends somewhat but do not alter the fundamental decline in earnings. Equity values reflect the cumulative effects of these profitability pressures and tax adjustments, showing limited growth followed by contraction in the final year reported.

Net Profit Margin Trends

The reported net profit margin shows a declining trend from 26.84% in 2020 to -35.32% in 2024, indicating a transition from significant profitability to substantial losses over the five-year period. The adjusted net profit margin follows a similar downward trajectory but exhibits greater volatility, with a smaller decrease from 29.11% in 2020 to -23.9% in 2024, and a notable dip below zero starting in 2023.

Total Asset Turnover Trends

Both reported and adjusted total asset turnover ratios decline consistently from 0.51 in 2020 to approximately 0.27 in 2024. This suggests a diminishing efficiency in generating revenue from the company’s asset base, with marginal divergence between reported and adjusted figures in 2023.

Financial Leverage Trends

Financial leverage remains relatively stable, with reported ratios fluctuating slightly from 1.89 in 2020 to 1.98 in 2024, and adjusted ratios ranging from 1.82 to 1.96 during the same period. This stability indicates that changes in profitability and returns are less influenced by significant alterations in capital structure or debt levels.

Return on Equity (ROE) Trends

Reported ROE declines sharply from 25.79% in 2020 to -18.89% in 2024, reflecting deteriorating shareholder returns and eventual negative profitability. The adjusted ROE amplifies this trend with a sharper drop, turning negative one year earlier and reaching -12.67% by 2024, highlighting the impact of adjustments such as deferred income tax on equity returns.

Return on Assets (ROA) Trends

Reported ROA decreases from 13.65% to -9.55% across the five years, pointing to a significant decline in asset profitability. Adjusted ROA follows a similar but more variable path, starting at 14.93% and turning negative by 2023, ending at -6.48% in 2024. The earlier onset of negative ROA in adjusted data underlines the influence of tax adjustments on operational efficiency measurements.

Overall Observations

The data reveals a consistent decline in profitability and efficiency metrics over the examined period. Margins, returns on equity, and assets all transition from positive to negative values, indicating financial stress. Despite maintained or slightly increased financial leverage, the declining asset turnover and profitability ratios suggest challenges in operational performance rather than capital structure changes. Adjusted figures emphasize the severity of declines, especially in recent years, reflecting the impact of deferred income tax and other adjustments on the company's financial health.

Reported Net Income (Loss) Trends

The reported net income attributable to Intel displayed a declining trajectory over the five-year span. Starting from a high of 20,899 million US dollars in 2020, it slightly decreased to 19,868 million in 2021, followed by a more pronounced reduction to 8,014 million in 2022. The decline continued sharply with reported income dropping to 1,689 million in 2023 and eventually turning negative to -18,756 million in 2024. This indicates a significant deterioration in profitability by the final year of the period under review.

Adjusted Net Income (Loss) Patterns

The adjusted net income figures also followed a downward trend, albeit with more volatility. Beginning at 22,668 million US dollars in 2020, it declined moderately to 19,126 million in 2021, then sharply dropped to 2,856 million in 2022. It turned negative in 2023 at -320 million and further decreased to -12,689 million in 2024. This pattern suggests that adjustments for reported income revealed more acute financial challenges in the latter years.

Reported Net Profit Margin Evolution

The reported net profit margin exhibited a consistent decrease over the period. From a robust 26.84% in 2020, it declined to 25.14% in 2021 and more than halved to 12.71% in 2022. The margin further dropped drastically to 3.11% in 2023, turning deeply negative at -35.32% in 2024, aligning with the net income losses and reflecting diminished profitability and likely operational or market difficulties.

Adjusted Net Profit Margin Changes

Adjusted net profit margin trends paralleled the reported margins but with greater volatility and earlier signs of stress. Starting at 29.11% in 2020, the margin dropped to 24.2% in 2021, then fell significantly to 4.53% in 2022. The metric crossed into negative territory sooner, recording -0.59% in 2023 and deteriorating severely to -23.9% in 2024. These margins indicate that once adjustments are factored in, the company’s profitability was under stress before its reported margins reflected the full impact.

Overall Insights

Across all reported and adjusted metrics, there is a clear pattern of progressive financial weakening over the analyzed period. Both income and profit margins decreased consistently year over year, with a marked escalation in losses and negative margins in the final years. Adjusted figures provide an earlier indication of financial strain compared to reported figures, suggesting that underlying challenges became increasingly material prior to their full impact on reported results. The negative outcomes in 2024 signal significant operational or market difficulties affecting the company's profitability.

Reported Total Assets

The reported total assets show a consistent upward trend over the five-year period, increasing from 153,091 million US dollars in 2020 to 196,485 million US dollars in 2024. This reflects ongoing growth in asset base, with the most significant year-over-year increases observed between 2020 and 2021, and between 2021 and 2022. Growth continues through 2023 and 2024 but at a slightly reduced pace.

Adjusted Total Assets

Adjusted total assets follow a similar upward trajectory, rising from 151,859 million US dollars in 2020 to 195,882 million US dollars in 2024. The adjustment, which accounts for deferred income tax, results in slightly lower values than the reported figures but mirrors the overall growth pattern. This suggests that deferred tax adjustments have a modest but consistent impact on the asset valuation.

Reported Total Asset Turnover

Reported total asset turnover demonstrates a declining trend, decreasing from 0.51 in 2020 to 0.27 in 2024. This indicates that despite the increasing asset base, the revenue generated per unit of asset has reduced significantly over the time span, implying either slower sales growth relative to asset growth or potentially lower efficiency in asset utilization.

Adjusted Total Asset Turnover

The adjusted total asset turnover aligns closely with the reported turnover trend, starting at 0.51 in 2020 and declining to 0.27 by 2024. There is a slight deviation in 2023 where the adjusted turnover is marginally higher at 0.29 compared to the reported 0.28, suggesting that adjustments related to deferred income tax might have a minor influence on asset efficiency calculations. Overall, the decline highlights a consistent reduction in asset productivity when measured on an adjusted basis.

Total Assets

The reported total assets show a consistent upward trend from 153,091 million US dollars in 2020 to 196,485 million US dollars in 2024. This increase indicates steady growth in the company's asset base over the five-year period.

The adjusted total assets follow a similar pattern, rising from 151,859 million US dollars in 2020 to 195,882 million US dollars in 2024. The slight difference between reported and adjusted figures suggests the presence of adjustments, but the overall growth trajectory remains consistent.

Stockholders’ Equity

Reported total Intel stockholders’ equity increased from 81,038 million US dollars in 2020 to a peak of 105,590 million US dollars in 2023 before declining to 99,270 million US dollars in 2024. The growth until 2023 reflects strengthening equity, but the drop in 2024 may indicate distribution to shareholders, revaluation, or other factors impacting equity negatively.

Adjusted stockholders’ equity shows a similar but less pronounced pattern, rising from 83,649 million US dollars in 2020 to 100,317 million US dollars in 2023, and stabilizing at 100,129 million US dollars in 2024. The smaller decrease in the adjusted figure suggests that some factors offsetting the decline in reported equity are considered in the adjustment process.

Financial Leverage

The reported financial leverage ratio generally decreased from 1.89 in 2020 to 1.77 in 2021, followed by a gradual increase to 1.98 in 2024. This pattern implies an initial reduction in leverage, potentially reflecting deleveraging efforts, succeeded by a progressive rise, indicating increased reliance on debt or other liabilities relative to equity in recent years.

Adjusted financial leverage follows a similar trajectory, declining from 1.82 in 2020 to 1.72 in 2021 and then increasing steadily to 1.96 by 2024. The close alignment with reported leverage reveals consistency in leverage trends even after accounting for tax-related adjustments.

The financial data presents several notable trends over the five-year period ending in 2024. Both reported and adjusted net income attributable to the company exhibit a significant downward trajectory. Reported net income decreases from $20,899 million in 2020 to a loss of $18,756 million in 2024. Similarly, adjusted net income declines from $22,668 million in 2020 to a loss of $12,689 million in 2024. This negative shift becomes particularly pronounced starting in 2022, where both reported and adjusted figures drop sharply, turning negative in the final two years.

Total stockholders' equity, in both reported and adjusted terms, shows a more stable trend over the same period. Reported equity grows from $81,038 million in 2020 to a peak of $105,590 million in 2023, before declining slightly to $99,270 million in 2024. Adjusted equity follows a similar pattern, increasing from $83,649 million in 2020 to $100,317 million in 2023 and remaining relatively steady at $100,129 million in 2024. This suggests the company has maintained its capital base despite declining profitability.

Return on equity (ROE), both reported and adjusted, reflects the declining profitability observed in net income. Reported ROE decreases steeply from 25.79% in 2020 to -18.89% in 2024, while adjusted ROE drops from 27.1% to -12.67% over the same period. The sharp decline in ROE, turning negative by 2024, indicates that the company is generating losses relative to its equity, signaling challenges in earnings performance and potential pressure on shareholder value.

Overall, the data illustrates a period of deteriorating earnings and returns despite relatively stable equity levels. The transition to negative net income and ROE from 2022 onwards highlights significant operational or market difficulties impacting profitability. However, the company’s equity base remains largely resilient, which could provide some capacity for financial recovery or restructuring efforts.

Net Income (Reported and Adjusted)

Consistent decline with losses emerging in 2023 and deepening in 2024.

Total Stockholders' Equity (Reported and Adjusted)

Growth observed through 2023 with minor decline or stabilization in 2024.

Return on Equity (Reported and Adjusted)

Substantial drop from high positive returns in 2020 to negative returns by 2024.

Over the examined period, reported net income attributable to the entity demonstrates a pronounced downward trajectory. Starting at a positive value of approximately 20.9 billion US dollars in late 2020, net income gradually decreased to 19.9 billion in 2021, followed by a sharper decline to roughly 8 billion in 2022. The trend continues into negative territory with reported losses reaching approximately 1.7 billion in 2023 and deepening substantially to around 18.8 billion by the end of 2024.

The adjusted net income figures, which reflect modifications for reported and deferred income tax adjustments, parallel this decline albeit with some variation. Adjusted net income begins slightly above reported net income at approximately 22.7 billion in 2020 but decreases more steadily over the years, falling to roughly 19.1 billion in 2021 and dramatically dropping to just under 3 billion in 2022. By 2023, the adjusted net income turns negative at approximately 0.3 billion and further declines into a significant loss of about 12.7 billion by the end of 2024.

Total assets, both reported and adjusted, show consistent growth throughout the period. Reported total assets rise from 153.1 billion US dollars in 2020 to reach nearly 196.5 billion by the end of 2024, marking a stable expansion. Adjusted total assets follow a similar upward pattern, starting near 151.9 billion and increasing to approximately 195.9 billion over the same timeframe. The steady increase in asset base suggests ongoing investments and accumulation of resources despite fluctuating profitability.

Return on assets (ROA), calculated on both reported and adjusted income, declines markedly over the period. Reported ROA starts at a robust 13.65% in 2020 and falls to 11.8% in 2021, followed by a substantial drop to 4.4% in 2022. The decline accelerates, reaching under 1% in 2023 and turning strongly negative to -9.55% by 2024. Adjusted ROA exhibits a similar downward trend, beginning slightly higher at 14.93% in 2020, declining to 11.42% in 2021, and falling more sharply to 1.6% in 2022. It dips just below zero in 2023 and declines further to -6.48% by 2024.

Overall, the data indicates deteriorating profitability, as reflected in both reported and adjusted net income and ROA, despite an expanding asset base. The transition into negative net income and returns by 2023 and 2024 highlights significant financial challenges. The adjustment for income tax effects consistently results in lower net income figures over time, particularly in the latter years where adjusted losses are less severe than reported losses but remain deeply negative.