(In Millions, Except Per Share Amounts)

Jul 1, 2023

Jul 2, 2022

GAAP gross margin

$ 4,638

$ 5,587

Acquisition-related adjustments

306

329

Share-based compensation

210

190

Patent settlement

—

204

Optane inventory impairment

—

559

Non-GAAP gross margin

$ 5,154

$ 6,869

GAAP gross margin percentage

35.8 %

36.5 %

Acquisition-related adjustments

2.4 %

2.2 %

Share-based compensation

1.6 %

1.2 %

Patent settlement

— %

1.3 %

Optane inventory impairment

— %

3.6 %

Non-GAAP gross margin percentage

39.8 %

44.8 %

GAAP R&D and MG&A

$ 5,454

$ 6,200

Acquisition-related adjustments

(44)

(48)

Share-based compensation

(712)

(702)

Non-GAAP R&D and MG&A

$ 4,698

$ 5,450

GAAP operating income (loss)

$ (1,016)

$ (700)

Acquisition-related adjustments

350

377

Share-based compensation

922

892

Patent settlement

—

204

Optane inventory impairment

—

559

Restructuring and other charges

200

87

Non-GAAP operating income (loss)

$ 456

$ 1,419

GAAP operating margin (loss)

(7.8) %

(4.6) %

Acquisition-related adjustments

2.7 %

2.5 %

Share-based compensation

7.1 %

5.8 %

Patent settlement

— %

1.3 %

Optane inventory impairment

— %

3.6 %

Restructuring and other charges

1.5 %

0.6 %

Non-GAAP operating margin (loss)

3.5 %

9.3 %

GAAP tax rate

280.5 %

50.1 %

Income tax effects

(267.5) %

(37.1) %

Non-GAAP tax rate

13.0 %

13.0 %

(In Millions, Except Per Share Amounts)

Jul 1, 2023

Jul 2, 2022

GAAP net income (loss) attributable to Intel

$ 1,481

$ (454)

Acquisition-related adjustments

350

377

Share-based compensation

922

892

Patent settlement

—

204

Optane inventory impairment

—

559

Restructuring and other charges

200

87

(Gains) losses on equity investments, net

24

90

(Gains) losses from divestiture

(39)

19

Adjustments attributable to non-controlling interest

(18)

—

Income tax effects

(2,373)

(626)

Non-GAAP net income (loss) attributable to Intel

$ 547

$ 1,148

GAAP earnings (loss) per share attributable to Intel—diluted

$ 0.35

$ (0.11)

Acquisition-related adjustments

0.08

0.09

Share-based compensation

0.22

0.22

Patent settlement

—

0.05

Optane inventory impairment

—

0.14

Restructuring and other charges

0.05

0.02

(Gains) losses on equity investments, net

0.01

0.02

(Gains) losses from divestiture

(0.01)

—

Adjustments attributable to non-controlling interest

—

—

Income tax effects

(0.57)

(0.15)

Non-GAAP earnings (loss) per share attributable to Intel—diluted

$ 0.13

$ 0.28