Intel 2008 Annual Report Download - page 70

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other-Than-Temporary Impairment
All of our available-for-sale investments and non-marketable and other equity investments are subject to a periodic
impairment review. Investments are considered to be impaired when a decline in fair value is judged to be other-than-
temporary, for the following investments:
Investments that we identify as having an indicator of impairment are subject to further analysis to determine if the investment
is other than temporarily impaired, in which case we write down the investment to its fair value. We record impairment
charges for:
62
•
Marketable equity securities
when the resulting fair value is significantly below cost basis and/or the significant
decline has lasted for an extended period of time. The evaluation that we use to determine whether a marketable equity
security is other than temporarily impaired is based on the specific facts and circumstances present at the time of
assessment, which include the consideration of general market conditions, the duration and extent to which the fair
value is below cost, and our intent and ability to hold the investment for a sufficient period of time to allow for
recovery in value in the foreseeable future. We also consider specific adverse conditions related to the financial health
of and business outlook for the investee, including industry and sector performance, changes in technology, operational
and financing cash flow factors, and changes in the investee
’
s credit rating.
•
Non
-marketable equity investments when events or circumstances are identified that would significantly harm the fair
value of the investment and the fair value is significantly below cost basis and/or the significant decline has lasted for
an extended period of time. The indicators that we use to identify those events and circumstances include:
•
the investee
’
s revenue and earning trends relative to predefined milestones and overall business prospects;
•
the technological feasibility of the investee
’
s products and technologies;
• the general market conditions in the investee’s industry or geographic area, including adverse regulatory or
economic changes;
• factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and
the rate at which the investee is using its cash; and
• the investee’s receipt of additional funding at a lower valuation. If an investee obtains additional funding at a
valuation lower than our carrying amount, or a new round of equity funding is required for the investee to
remain in business and the new round of equity does not appear imminent, it is presumed that the investment
is other than temporarily impaired, unless specific facts and circumstances indicate otherwise.
•
Marketable debt instruments
when the fair value is significantly below amortized cost and/or the significant decline
has lasted for an extended period of time and we do not have the intent and ability to hold the investment for a
sufficient period of time to allow for recovery in the foreseeable future. The evaluation that we use to determine
whether a marketable debt instrument is other than temporarily impaired is based on the specific facts and
circumstances present at the time of assessment, which include the consideration of the financial condition and
liquidity of the issuer, the issuer’s credit rating, specific events that may cause us to believe that the debt instrument
will not mature and be paid in full, and the duration and extent to which the fair value is below cost.
• marketable equity securities and non-marketable cost method investments in gains (losses) on other equity
investments, net;
•
non
-
marketable and marketable equity method investments in gains (losses) on equity method investments, net; and
•
marketable debt instruments in interest and other, net.