Intel 2012 Annual Report Download - page 66

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Note 5: Trading Assets
As of December 29, 2012 and December 31, 2011, all of our trading assets were marketable debt instruments. Net gains
related to trading assets still held at the reporting date were $16 million in 2012 (net losses of $71 million and $50 million
in 2011 and 2010, respectively). Net gains on the related derivatives and intercompany loans were $11 million in 2012
(net gains of $58 million and $43 million in 2011 and 2010, respectively).
Note 6: Available-for-Sale Investments and Cash Equivalents
Available-for-sale investments and cash equivalents as of December 29, 2012 and December 31, 2011 were as follows:
2012
2011
(In Millions)
Adjusted
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Adjusted
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Asset-backed
securities ...............................
$ 14
$ —
$ (3)
$ 11
$ 48
$ —
$ (12)
$ 36
Bank deposits............................
1,417
1
—
1,418
1,046
1
(1)
1,046
Commercial paper .....................
4,184
1
—
4,185
3,820
—
(3)
3,817
Corporate bonds........................
635
8
(1)
642
892
14
(9)
897
Government bonds....................
2,235
—
—
2,235
3,631
—
(4)
3,627
Marketable equity
securities ...............................
3,356
1,069
(1)
4,424
189
385
(12)
562
Money market fund
deposits................................
1,086
—
—
1,086
546
—
—
546
Total available-for-
sale investments .................
$ 12,927
$ 1,079
$ (5)
$ 14,001
$ 10,172
$ 400
$ (41)
$ 10,531
Reverse repurchase
agreements ...........................
2,800
2,800
500
500
Total available-for-
sale investments
and cash
equivalents ..........................
$ 15,727
$ 1,079
$ (5)
$ 16,801
$ 10,672
$ 400
$ (41)
$ 11,031
In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government entities.
Government bonds include instruments such as U.S. Treasury securities, non-U.S. government obligations, and U.S.
agency securities as of December 29, 2012 and December 31, 2011. Bank deposits were primarily issued by institutions
outside the U.S. as of December 29, 2012 and December 31, 2011.
During the third quarter of 2012, we entered into a series of agreements with ASML Holding N.V. intended to accelerate
the development of 450-millimeter (mm) wafer technology and extreme ultra-violet (EUV) lithography. The agreements
include our purchase of ASML equity securities totaling $3.2 billion completed in the third quarter of 2012. This equity
interest has been accounted for as an available-for-sale investment and is included in marketable equity securities in the
preceding table. Intel’s ownership interest in ASML was 15% of ASML’s issued shares as of December 29, 2012 and is
subject to lock-up and voting restrictions. We also agreed to provide research and development (R&D) funding totaling
€829 million (approximately $1.0 billion as of the date of the agreement) over five years and committed to advance
purchase orders for a specified number of tools from ASML. The agreements set forth terms to determine pricing as well
as milestones related to 450mm and EUV development and production tool deliveries. In exchange for making this early
commitment, we will receive credits to be applied to future tool purchases from ASML.