Intel 2007 Annual Report Download - page 58

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2007, a 52-week year, ended on
December 29, 2007. Fiscal year 2006, a 52-week year, ended on December 30, 2006. Fiscal year 2005, a 53-week year, ended
on December 31, 2005. The next 53-week year will end on December 31, 2011.
Our consolidated financial statements include the accounts of Intel and our wholly owned subsidiaries. Intercompany accounts
and transactions have been eliminated. We use the equity method to account for equity investments in instances in which we
own common stock or similar interests (as described by the Emerging Issues Task Force (EITF) Issue No. 02-14, “Whether an
Investor Should Apply the Equity Method of Accounting to Investments Other Than Common Stock”), and have the ability to
exercise significant influence, but not control, over the investee.
The U.S. dollar is the functional currency for Intel and our subsidiaries; therefore, there is no translation adjustment recorded
through accumulated other comprehensive income (loss). Monetary accounts denominated in non-U.S. currencies, such as
cash or payables to vendors, have been remeasured to the U.S. dollar.
Note 2: Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make
estimates and judgments that affect the amounts reported in our consolidated financial statements and the accompanying notes.
The accounting estimates that require our most significant, difficult, and subjective judgments include:
The actual results that we experience may differ materially from our estimates.
Cash and Cash Equivalents
We consider all highly liquid debt instruments with original maturities from the date of purchase of approximately three
months or less as cash and cash equivalents.
51
•
the valuation of non
-
marketable equity investments;
•
the assessment of recoverability of long
-
lived assets;
• the recognition and measurement of current and deferred income tax assets and liabilities (including the measurement
of uncertain tax positions);
•
the valuation of inventory; and
•
the valuation and recognition of share
-
based compensation.