Intel 2005 Annual Report Download - page 67

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Available-for-sale investments at December 25, 2004 were as follows:
The duration of the unrealized losses on available-for-sale investments at December 31, 2005 and December 25, 2004 did not exceed 12 months. The
company’s unrealized losses of $51 million on investments in marketable strategic equity securities at December 25, 2004 related primarily to the
company’s investment in Micron Technology, Inc. The unrealized losses were due to market-price movements. Management does not believe that any
of the unrealized losses represented an other-than-temporary impairment based on its evaluation of available evidence as of December 31, 2005 and
December 25, 2004. However, during 2005, the company took an impairment charge on its investment in Micron for $105 million reflecting the
difference between the cost basis of the investment and the price of Micron’s stock at the end of the second quarter of 2005. The impairment was
principally based on management’s assessment of Micron’s financial results and the fact that the market price of Micron’s stock had been below the
company’s cost basis for an extended period of time, as well as the competitive pricing environment for Dynamic Random Access Memory
(DRAM) products. The investment in Micron is part of the company’s strategy to support the development and supply of DRAM products.
The company sold available-for-sale securities with a fair value at the date of sale of $1.7 billion in 2005 ($1.1 billion in 2004 and $865 million in
2003). The gross realized gains on these sales totaled $96 million in 2005 ($52 million in 2004 and $16 million in 2003). For all periods presented,
gross realized losses on sales, and gains on shares exchanged in third-party merger transactions were insignificant. The company recognized
impairment losses on available-for-sale investments of $105 million in 2005 ($2 million in 2004 and none in 2003).
63
Gross
Gross
Adjusted
Unrealized
Unrealized
Estimated
(In Millions)
Cost
Gains
Losses
Fair Value
Commercial paper
$
7,992
$
—
$
(
4
)
$
7,988
Floating rate notes
2,697
—
(
1
)
2,696
Bank time deposits
1
1,866
—
—
1,866
Non
-
U.S. government securities
985
—
—
985
Corporate bonds
794
—
—
794
Marketable strategic equity securities
589
118
(51
)
656
Asset
-
backed securities
472
—
—
472
U.S. government securities
405
—
—
405
Preferred stock and other equity
200
—
—
200
Repurchase agreements
196
—
—
196
Total available
-
for
-
sale investments
$
16,196
$
118
$
(56
)
$
16,258
Carrying
Amount
Available
-
for
-
sale investments
$
16,258
Cost basis investments in loan participation notes
723
Cash on hand
299
Total
$
17,280
Reported as:
Cash and cash equivalents
$
8,407
Short
-
term investments
5,654
Marketable strategic equity investments
656
Other long
-
term investments
2,563
Total
$
17,280
1
Bank time deposits were mostly issued by U.S. institutions in 2005 and by institutions outside the U.S. in 2004.