01—Abstract
Summary
Summary of the 8-K filed April 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation has filed an 8-K report to disclose changes in its segment reporting structure, effective from the first quarter of 2024.
This aligns with the implementation of its internal foundry operating model and the decision to operate Altera as a standalone business. The report clarifies that these changes are primarily for reporting and operational transparency, aiming to enhance focus on costs and efficiency by creating a clear foundry relationship between Intel's product design divisions and its manufacturing/foundry services. Importantly, Intel states that these segment reporting modifications do not alter its previously reported consolidated financial statements for 2023, 2022, and 2021.
The company is furnishing Exhibit 99.1, which provides a retrospective adjustment of historical operating segment financial information to match the new structure. This exhibit revises certain sections of the Management's Discussion and Analysis (MD&A) from its 2023 Form 10-K filing. Investors should note that this exhibit reflects conditions as of the 2023 10-K filing date and doesn't incorporate subsequent events, thus requiring it to be read in conjunction with the 2023 10-K and other subsequent filings.
02—Key points
Key Highlights
- Intel has adopted a new internal foundry operating model effective Q1 2024, separating its product design business from its foundry services.
- Altera will now operate as a standalone business, previously part of the DCAI segment.
- Segment reporting has been modified to reflect these operational changes, with retrospective adjustments to prior period data.
- The purpose of these changes is to drive greater transparency, accountability, and focus on costs and efficiency.
- Crucially, these segment reporting changes do not alter Intel's previously filed consolidated financial statements for 2023, 2022, and 2021.
- Exhibit 99.1 provides retrospective recast financial information for operating segments to align with the new reporting structure.
- The provided recast information revises specific parts of the 2023 10-K's MD&A but does not include events after the 10-K filing date.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
This filing is primarily to disclose and explain changes to Intel's operating segment reporting structure, which took effect in Q1 2024. These changes are driven by the implementation of its internal foundry operating model and the decision to operate Altera as a standalone business, aiming for greater transparency and efficiency.
Do these changes affect Intel's previously reported financial results?
No, Intel explicitly states that these segment reporting modifications do not change its consolidated financial statements for 2023, 2022, and 2021, or any other prior periods. The changes are for reporting and internal management purposes.
What is the 'internal foundry operating model' mentioned?
The internal foundry operating model creates a distinct foundry relationship within Intel. It separates Intel's product design and development businesses (Intel Products) from its process engineering, manufacturing, and foundry services (Intel Foundry), treating them as separate entities for reporting and operational focus.
Where can I find the historical financial data under the new segment structure?
Exhibit 99.1 to this 8-K filing provides a retrospective adjustment of certain historical operating segment financial information and related disclosures. This exhibit revises specific sections of the MD&A from Intel's 2023 Form 10-K to align with the new reporting segments.
04—Continue