INTC · 10-K · 2025A · Full report
Altera Divestiture
INTEL CORP · 2026-01-23 · Importance 90 · Surprise 100
Intel signed a transaction agreement on April 14, 2025 to sell 51% of Altera and completed the divestiture on September 12, 2025 for net purchase consideration of $4.3 billion (including $4.8 billion cash received in Q3 2025 and $500 million deferred cash payable no later than December 31, 2027, net of specified offsets). Upon closing Intel deconsolidated Altera, retained a 49% equity-method investment valued at $3.2 billion, recorded a pre-tax gain of $5.6 billion (approximately $2.1 billion of which resulted from remeasurement to fair value) and recorded related deferred consideration and separation‑related liabilities (e.g., $463 million other long-term asset for present value of deferred consideration, $327 million and $97 million of other accrued and long-term liabilities). The transaction materially impacted Intel's 2025 cash flows, investment balances and reported gains.
Key facts
- In 2025 interest and other, net increased primarily due to a $5.6 billion pre-tax gain recognized from sale of 51% of Altera, partially offset by $1.8 billion net loss from change in fair value of derivative liability for Escrowed Shares and $229 million charges related to sale of NAND memory business.
- On September 12, 2025 Intel completed the divestiture of 51% of Altera and as of that date Altera's results of operations were no longer included in Intel's consolidated or segment results.
- On April 14, 2025 Intel signed a transaction agreement to sell 51% of the common stock of Altera to an affiliate of SLP.
- Effective September 12, 2025, Altera was deconsolidated after sale of 51% of Altera's common stock, and Intel's retained non-marketable equity interest in Altera is accounted for as an equity method investment.
- The Altera divestiture resulted in a pre-tax gain of $5.6 billion recognized within interest and other, net.
- All other operating income was $264 million in 2025 compared to operating loss of $57 million in 2024, primarily driven by higher Mobileye 2025 revenue and improved 2025 operating income contribution from Altera.
- On September 12, 2025 Intel completed the divestiture of 51% of Altera for net purchase consideration of $4.3 billion, consisting of $4.8 billion in cash proceeds received in Q3 2025, $500 million in deferred cash payable no later than December 31, 2027, an offset of $400 million for cash transferred to Altera, and an offset of approximately $469 million in separation and employee-related costs to be funded to the purchaser.
- The $3.2 billion value of Intel's non-marketable equity method investment in Altera is classified within equity investments in the Consolidated Balance Sheets at December 27, 2025 and was recognized as a non-cash investing activity in the 2025 Consolidated Statements of Cash Flows.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +10.3% | In 2025 interest and other, net increased primarily due to a $5.6 billion pre-tax gain recognized from sale of 51% of Altera, partially… |
| net_income | positive | realized | +3.9% | Approximately $2.1 billion of the $5.6 billion pre-tax gain from the Altera divestiture resulted from the remeasurement of Intel's… |
| net_income | negative | realized | -3.3% | In 2025 interest and other, net increased primarily due to a $5.6 billion pre-tax gain recognized from sale of 51% of Altera, partially… |
| cash | positive | realized | +2.3% | On September 12, 2025 Intel completed the divestiture of 51% of Altera for net purchase consideration of $4.3 billion, consisting of $4.8… |
| cash | positive | realized | +0.8% | In 2025 Intel received $1.8 billion of cash proceeds, net of certain adjustments, related to completion of second phase of NAND memory… |
| operating_income | positive | realized | +0.6% | All other operating income was $264 million in 2025 compared to operating loss of $57 million in 2024, primarily driven by higher Mobileye… |
| net_income | negative | realized | -0.4% | In 2025 interest and other, net increased primarily due to a $5.6 billion pre-tax gain recognized from sale of 51% of Altera, partially… |
| assets | positive | committed | +0.2% | On September 12, 2025 Intel completed the divestiture of 51% of Altera for net purchase consideration of $4.3 billion, consisting of $4.8… |
| revenue | negative | realized | -0.1% | All Other revenue was $3.563 billion in 2025, down $38 million from 2024 primarily due to lower revenue from non-reportable segments… |
| revenue | negative | realized | — | On September 12, 2025 Intel completed the divestiture of 51% of Altera and as of that date Altera's results of operations were no longer… |
| assets | negative | committed | — | On April 14, 2025 Intel signed a transaction agreement to sell 51% of the common stock of Altera to an affiliate of SLP. |
| assets | negative | realized | — | Effective September 12, 2025, Altera was deconsolidated after sale of 51% of Altera's common stock, and Intel's retained non-marketable… |