Almost $4 billion of Intel plant assets in Kildare

Taxes lower now due to changes in US rates

Henry Bauress

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Henry Bauress

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editor@kildarepost.com

Almost $4 billion of Intel plant assets in Kildare

Major assets in Ireland and more on the way

 Almost 7% of the total plant and property assets of Intel Corporation was  located in Ireland at the end of last year, according to its annual financial return for the year to December 28, 2019.

The company has a total of $55.38 billion (bn) in property and plant assets.

Of this $3.85 bn is located in Ireland, much of it in Kildare.

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The main proportion is in the USA, $35.3 billion, followed by Israel, $8.46bn, and China $5.31bn, according to its 10K return to the United States Securities and Exchange Commission.

It has $2.49bn  in “other countries.”

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The figures show that while it listed assets of $128.7bn initially, $73.3bn was deducted for depreciation, leaving  $55.38bn.

Of the $128.7bn, 29% was in land and buildings, 58% was in machinery and equipment and 12% was invested in current construction.

In November, Bord Pleanala granted permission for a new $4bn (€3.63bn)plant at Leixlip. 

Three year before it got permission for another  development valued at $4bn, representing a $8bn investment. 

The company says it has invested $12.5 billion on its site at Leixlip since its arrival in  the late 1980’s.

The most recent Intel Ireland proposal is facing a legal challenge from local farmer, Thomas Reid. 

While its property assets are $55.38bn, the Corporation’s  total assets were $136.5bn. 

Intel’s net revenue or sales were $71.96bn for 2019, up from $70.85bn for 2018.

It’s income before tax was $24bn and it made a provision for tax of $3bn, which represents 4.2% of net revenue.

The equivalent figure for 2018 was 3.2% and for 2017, 17.1%.

The company said that its effective tax rate in 2019 was 12.5%, up from 9.7% in 2018, but down from 52.8% in 2017.

It made total provision for taxes of $3bn in 2019, compared to $10.7bn in 2017.

In a note, it said that in Q4 2017 it recognized a $5.4bn higher income tax as a result of one time impacts from tax reform. 

In 2018, it said, its effective tax rate benefitted from the reduction of the US statutory federal tax.

Its effective tax rate from non US income is taxed at different rates primarily from operations in China, Hong Kong, Ireland and Israel.

 The statutory rates in these jurisdictions ranged from 12.5% to 25%.

It also said it was subject to reduced tax rates in China and Israel as long as it conducts certain eligible activities and make certain capital investments.

It said these conditional reduced tax rates expire at various dates through to 2026 and it expected to apply for renewals upon when they expire.

The company’s earnings per share rose from $1.99 or almost two dollars in 2017 to  $4.48 in 2018 and $4.71 in 2019.

The return said that worldwide, the company had 110,800 employees at the end of 2019, up from 107,400 in 2018 and 102,700 in 2017, a fall from 106,000 at the end of 2016.

It spent $280 million on employee severance programmes in 2019.

Intel also reported that its three largest customers, Dell Inc, Lenovo Group and HP Inc accounted for 41% of its net revenue in 2019.

Geographically, of its $71.96bn revenue, $20bn came from China (including Hong Kong), $15.65bn from Singapore, $15.17 from the United States, $10bn from Taiwan and $10.64 from other countries.