Intel 2014 Annual Report Download - page 51

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As of December 27, 2014, the fair value of our marketable equity investments and our equity derivative instruments, including
hedging positions, was $7.1 billion ($6.3 billion as of December 28, 2013). Substantially all of our marketable equity investments
portfolio as of December 27, 2014 was concentrated in our investment in ASML of $6.9 billion ($5.9 billion as of December 28,
2013). Our marketable equity method investments are excluded from our analysis, as the carrying value does not fluctuate based
on market price changes unless an other-than-temporary impairment is deemed necessary. To determine reasonably possible
decreases in the market value of our marketable equity investments, we have analyzed the historical market price sensitivity of
our marketable equity investment portfolio. Assuming a decline of 30% in market prices, and after reflecting the impact of hedges
and offsetting positions, the aggregate value of our marketable equity investments could decrease by approximately $2.1 billion,
based on the value as of December 27, 2014 (a decrease in value of approximately $1.6 billion, based on the value as of
December 28, 2013 using an assumed decline of 25%).
Many of the same factors that could result in an adverse movement of equity market prices affect our non-marketable equity
investments, although we cannot always quantify the impact directly. Financial markets are volatile, which could negatively affect
the prospects of the companies we invest in, their ability to raise additional capital, and the likelihood of our ability to realize value
in our investments through liquidity events such as initial public offerings, mergers, and private sales. These types of investments
involve a great deal of risk, and there can be no assurance that any specific company will grow or become successful;
consequently, we could lose all or part of our investment. Our non-marketable equity investments, excluding investments
accounted for under the equity method, had a carrying amount of $1.8 billion as of December 27, 2014 ($1.3 billion as of
December 28, 2013). The carrying amount of our non-marketable equity method investments was $1.4 billion as of December 27,
2014 ($1.0 billion as of December 28, 2013). The majority of our non-marketable equity method investments balance as of
December 27, 2014 was concentrated in our IMFT and Cloudera (which was purchased during 2014) investments of $713 million
and $280 million, respectively ($646 million for IMFT as of December 28, 2013).
Commodity Price Risk
Although we operate facilities that consume commodities, we are not materially affected by commodity price risk. We have
established forecasted transaction risk management programs to protect against fluctuations in the fair value and the volatility of
future cash flows caused by changes in commodity prices. In addition, we have sourcing plans in place for our key commodities
that mitigate the risk of a potential supplier concentration. For further information on commodity price risk, see “Note 6: Derivative
Financial Instruments” in Part II, Item 8 of this Form 10-K.
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