Intel 2013 Annual Report Download - page 72

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67
Available-for-Sale Investments
Available-for-sale investments at the end of each period were as follows:
December 28, 2013 December 29, 2012
(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 $11 $—$(2) $ 9 $ 14 $ — $ (3) $ 11
Bank deposits 2,951 6 (1) 2,956 1,417 1 — 1,418
Commercial paper 4,464 — — 4,464 4,184 1 — 4,185
Corporate bonds 2,359 15 (3) 2,371 635 8 (1) 642
Government bonds 1,024 — — 1,024 2,235 — — 2,235
Marketable equity
securities 3,340 2,881 — 6,221 3,356 1,069 (1) 4,424
Money market fund
deposits 1,042 — (1) 1,041 1,086 — — 1,086
Total available-for-
sale investments $15,191 $2,902 $(7) $ 18,086 $ 12,927 $ 1,079 $ (5) $ 14,001
In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government
entities. Government bonds include instruments such as non-U.S. government bonds, U.S. agency securities, and
U.S. Treasury securities. Bank deposits were primarily held by institutions outside the U.S. as of December 28,
2013, and December 29, 2012.
During the third quarter of 2012, we purchased ASML Holding N.V. equity securities totaling $3.2 billion. This equity
interest has been accounted for as an available-for-sale investment and is included as marketable equity securities
in the preceding table.
For information on the unrealized holding gains (losses) on available-for-sale investments reclassified out of
accumulated other comprehensive income into the consolidated statements of income, see "Note 25: Other
Comprehensive Income (Loss)."
We sold available-for-sale investments for proceeds of $934 million in 2013 ($2.3 billion in 2012 and $9.1 billion in
2011). Proceeds received in 2013 included $142 million from the sale of our shares in Clearwire Corporation, which
are included in sales of available-for-sale investments within investing activities on the consolidated statements of
cash flows. Substantially all of the proceeds in 2011 were from debt investments primarily used to fund our
acquisition of McAfee. The gross realized gains on sales of available-for-sale investments were $146 million in 2013
($166 million in 2012 and $268 million in 2011). In 2013, we recognized a gain of $111 million on the sale of our
shares in Clearwire Corporation, previously included as marketable equity securities in the preceding table. We
determine the cost of an investment sold on an average cost basis at the individual security level. Impairment
charges recognized on available-for-sale investments were $14 million in 2013 ($36 million in 2012 and $73 million
in 2011).
The amortized cost and fair value of available-for-sale debt investments, by contractual maturity, as of
December 28, 2013, were as follows:
(In Millions) Cost Fair Value
Due in 1 year or less $ 9,170 $ 9,188
Due in 1–2 years 979 978
Due in 2–5 years 421 421
Instruments not due at a single maturity date 1,281 1,278
Total $ 11,851 $ 11,865
Instruments not due at a single maturity date in the preceding table include all asset-backed securities, most
callable government bonds, and all money market fund deposits.
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)