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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14: Interest and Other, Net
The components of interest and other, net were as follows:
Note 15: Acquisitions
Consideration for acquisitions that qualify as business combinations includes the net cash paid and the fair value of any vested
share-based awards assumed. During 2010, we completed three business acquisitions qualifying as business combinations in
exchange for aggregate net cash consideration of $218 million. Substantially all of the consideration was allocated to goodwill
and intangibles.
During the third quarter of 2009, we completed two acquisitions qualifying as business combinations for total consideration of
$885 million (net of $59 million cash acquired). Substantially all of this amount related to the acquisition of Wind River
Systems, Inc., a vendor of software for embedded devices, completed by acquiring all issued and outstanding Wind River
Systems common shares. The objective of the acquisition of Wind River Systems was to enable the introduction of products
for the embedded and handheld market segments, resulting in benefits for our existing operations.
The combined consideration for acquisitions completed during 2009 was allocated as follows:
For information on the assignment of goodwill for the acquisitions completed in 2010 and 2009, see “Note 17: Goodwill.”
The
completed acquisitions in 2010 and 2009 both individually and in the aggregate were not significant to our consolidated results
of operations.
First Quarter 2011 Acquisition of Wireless Solutions Business of Infineon Technologies AG
On January 31, 2011, we completed the acquisition of the Wireless Solutions (WLS) business of Infineon. Total net cash
consideration to acquire the WLS business is estimated at $1.4 billion. The acquired business will operate as Intel Mobile
Communications and offer mobile phone components such as baseband processors, radio frequency transceivers, and power
management chips. The objective of the acquisition is to provide solutions that enable a broad range of computing applications
to have wireless connectivity.
Due to the relatively short time from the date of acquisition to the completion of these financial statements, the initial
accounting for the acquisition is not complete. The preliminary evaluation of the fair value for certain significant assets and
liabilities, including goodwill and intangibles, is not complete. The goodwill recognized is expected to be deductible for tax
purposes. Since the pro forma revenue and earnings are dependent on the purchase price allocation, we are unable to provide
unaudited pro forma information for the year ended December 25, 2010. We will provide the preliminary purchase price
allocation and pro forma information with our 10-Q for the first quarter of 2011.
We are still evaluating the organization structure and reporting of Intel Mobile Communications, as well as its related impact
on our reportable segment disclosures.
74
(In Millions)
2010
2009
2008
Interest income
$
119
$
168
$
592
Interest expense
—
(
1
)
(8
)
Other, net
(10
)
(4
)
(96
)
Total interest and other, net
$
109
$
163
$
488
(In Millions)
Fair value of net tangible assets acquired
$
47
Goodwill
489
Acquired developed technology
148
Other identified intangible assets
169
Share
-
based awards assumed
32
Total
$
885