Intel 2013 Annual Report Download - page 76

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71
In 2010, we sold our ownership interest in Numonyx B.V. to Micron for consideration consisting of shares of Micron.
We also entered into equity option transactions that economically hedged a portion of the ownership interest in
Micron that we acquired. In the second quarter of 2011, we sold our remaining ownership interest in Micron and the
related equity options matured.
Commodity Price Risk
We operate facilities that consume commodities and have established forecasted transaction risk management
programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in
commodity prices, such as those for natural gas. These programs reduce, but do not always eliminate, the impact of
commodity price movements.
Our commodity price risk management program includes commodity derivatives with cash flow hedge accounting
designation that utilize commodity swap contracts to hedge future cash flow exposures to the variability in
commodity prices. These instruments generally mature within 12 months. For these derivatives, we report the after-
tax gain (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income
(loss) and reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings,
and in the same line item on the consolidated statements of income as the impact of the hedged transaction.
Volume of Derivative Activity
Total gross notional amounts for outstanding derivatives (recorded at fair value) at the end of each period were as
follows:
(In Millions) Dec 28,
2013 Dec 29,
2012 Dec 31,
2011
Currency forwards $ 13,404 $ 13,117 $ 11,203
Currency interest rate swaps 4,377 2,711 1,650
Embedded debt derivatives 3,600 3,600 3,600
Interest rate swaps 1,377 1,101 1,837
Total return swaps 914 807 761
Other 67 127 182
Total $ 23,739 $ 21,463 $ 19,233
The gross notional amounts for currency forwards and currency interest rate swaps (presented by currency) at the
end of each period were as follows:
(In Millions) Dec 28,
2013 Dec 29,
2012 Dec 31,
2011
British pound sterling $ 549 $ 308 $ 459
Chinese yuan 1,116 647 688
Euro 6,874 5,994 3,904
Israeli shekel 2,244 2,256 2,168
Japanese yen 4,116 4,389 3,477
Malaysian ringgit 506 442 805
Swiss franc 1,189 657 209
Other 1,187 1,135 1,143
Total $ 17,781 $ 15,828 $ 12,853
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)