Intel 2008 Annual Report Download - page 84

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
included in marketable equity securities. Our investment in Clearwire LLC is accounted for under the equity method and
included within other long-term assets. As a result of the formation of the new Clearwire Corporation, our total ownership
percentage decreased from 22% to 13%, resulting in a loss upon dilution of $34 million, which we recorded to gains (losses)
on equity method investments, net. For further discussion of our equity method investment in Clearwire LLC, see “Note 6:
Equity Method and Cost Method Investments.”
We sold available-for-sale investments, primarily marketable debt instruments, for proceeds of approximately $1.2 billion in
2008. The gross realized gains on sales of available-for-sale investments totaled $38 million and were primarily related to our
sales of marketable equity securities. Impairment charges recognized on available-for-sale investments were $354 million in
2008. The impairment charges in 2008 were primarily related to a $176 million impairment charge on our investment in the
new Clearwire Corporation and $97 million of impairment charges on our investment in Micron Technology, Inc. Gross
realized losses on sales were insignificant during 2008.
We sold available-for-sale investments for proceeds of approximately $1.7 billion in 2007 and $2.0 billion in 2006. The gross
realized gains on our sales totaled $138 million in 2007 and $135 million in 2006. The gain in 2006 included a gain of
$103 million from the sale of a portion of our investment in Micron. We realized gains on third-party merger transactions that
were insignificant during 2007 and $79 million during 2006. Our recognized impairment charges on available-for-sale
investments as well as gross realized losses on sales were insignificant during 2007 and 2006.
The available-for-sale investments that were in a continuous unrealized loss position as of December 27, 2008, aggregated by
length of time that individual securities have been in a continuous loss position, were as follows:
The available-for-sale investments in a continuous unrealized loss position as of December 29, 2007 were as follows:
As of December 27, 2008, the unrealized losses on our available-for-sale investments represented an insignificant amount in
relation to our total available-for-sale portfolio. Substantially all of our unrealized losses on our available-for-sale marketable
debt instruments can be attributed to fair value fluctuations in an unstable credit environment that resulted in a decrease in the
market liquidity for debt instruments. As of December 27, 2008, a substantial majority of our available-for-sale investments in
asset-backed securities in an unrealized loss position were rated AA-/Aa2 or better, and the majority of our available-for-sale
investments in floating-rate notes and corporate bonds in an unrealized loss position were rated AA-/Aa2 or better. With the
exception of a limited amount of investments for which we have recognized other-than-temporary impairments, we have not
seen significant liquidation delays, and for those that have matured we have
75
Less than 12 Months
12 Months or Greater
Total
Gross
Gross
Gross
Unrealized
Unrealized
Unrealized
(In Millions)
Losses
Fair Value
Losses
Fair Value
Losses
Fair Value
Floating
-
rate notes
$
(67
)
$
2,771
$
(60
)
$
1,651
$
(127
)
$
4,422
Marketable equity securities
(43
)
322
—
—
(
43
)
322
Asset
-
backed securities
—
—
(
43
)
312
(43
)
312
Corporate bonds
(4
)
168
(8
)
127
(12
)
295
Total
$
(114
)
$
3,261
$
(111
)
$
2,090
$
(225
)
$
5,351
Less than 12 Months
1
Gross
Unrealized
(In Millions)
Losses
Fair Value
Floating
-
rate notes
$
(31
)
$
4,626
Asset
-
backed securities
(23
)
914
Corporate bonds
(8
)
157
Marketable equity securities
(50
)
129
Total
$
(112
)
$
5,826
1
Investments that were in a continuous unrealized loss position for 12 months or greater were not significant as of
December 29, 2007.