Intel 2010 Annual Report Download - page 93

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Our non-marketable equity investments as of December 26, 2009 included our investment in Numonyx. We sold our
ownership interest in Numonyx to Micron in the second quarter of 2010. As of December 26, 2009, the fair value was based
on management’s assessment using a combination of the income approach and the market approach. For further information,
see “Note 11: Equity Method and Cost Method Investments.”
As of December 25, 2010, we had non-marketable equity investments in an unrealized loss position of $10 million that had a
fair value of $95 million (unrealized loss position of $30 million on non-marketable equity investments with a fair value of
$205 million as of December 26, 2009).
Our marketable equity method investment is our ownership interest in SMART Technologies, Inc. The fair value of our
ownership interest in SMART was $167 million based on the quoted closing stock price as of December 25, 2010. For further
information, see “Note 11: Equity Method and Cost Method Investments.”
The carrying amount and fair value of loans receivable exclude $642 million of loans measured and recorded at fair value as of
December 25, 2010 ($249 million as of December 26, 2009). The carrying amount and fair value of long-term debt exclude
$128 million of long-term debt measured and recorded at fair value as of December 25, 2010 ($123 million as of December
26, 2009). The carrying amount and fair value of the current portion of long-term debt are included in long-term debt in the
preceding table.
The fair value of our loans receivable is determined using a discounted cash flow model, with all significant inputs derived
from or corroborated with observable market data. The fair value of our long-term debt takes into consideration variables such
as credit-rating changes and interest rate changes. The credit quality of our loans receivable remains high, with credit ratings
of A/A2 or better as of December 25, 2010.
Note 6: Trading Assets
Trading assets outstanding as of December 25, 2010 and December 26, 2009 were as follows:
Net losses on marketable debt instruments classified as trading assets still held at the reporting date were $50 million in 2010
(gains of $91 million in 2009 and losses of $132 million in 2008). Net gains on the related derivatives were $43 million in
2010 (gains of $18 million in 2009 and losses of $5 million in 2008).
In 2010, we sold our ownership in Numonyx to Micron. The Micron shares that we received in the transaction are classified as
marketable equity securities within trading assets. For further information, see “Note 11: Equity Method and Cost Method
Investments.” Net losses on marketable equity securities classified as trading assets still held at the reporting date, excluding
the impacts of the related derivatives, were $14 million in 2010.
During 2009, we sold our equity securities offsetting deferred compensation, which were classified as trading assets, and
entered into derivative instruments that seek to offset changes in liabilities related to those deferred compensation
arrangements. The deferred compensation liabilities were $646 million as of December 25, 2010 ($511 million as of
December 26, 2009) and are included in other accrued liabilities. See “Note 8: Derivative Financial Instruments” for further
information on our equity market risk management programs. Net losses on equity securities offsetting deferred compensation
arrangements still held at the reporting date were $209 million in 2008.
65
(In Millions)
2010
2009
Marketable debt instruments
$
4,705
$
4,648
Marketable equity securities
388
—
Total trading assets
$
5,093
$
4,648