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INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 9: Divestitures
During the first quarter of 2014, we completed the divestiture of the assets of Intel Media, a business division dedicated to the
development of cloud TV products and services, to Verizon Communications Inc. As a result of the transaction, we received
aggregate net cash consideration of $150 million, included within investing activities on the consolidated statements of cash
flows, and recognized a gain within interest and other, net on the consolidated statements of income.
Note 10: Goodwill
Goodwill activity for each period was as follows:
(In Millions)
Dec 28,
2013 Acquisitions Transfers
Currency
Exchange
and Other
Dec 27,
2014
PC Client Group ..................................... $ 3,058 $ — $ — $ — $ 3,058
Data Center Group ................................... 1,831 407 138 — 2,376
Internet of Things Group ............................... — — 428 — 428
Mobile and Communications Group ...................... — 19 631 — 650
Other Intel architecture operating segments ................ 1,075 — (1,075) — —
Software and services operating segments ................. 4,549 41 (140) (214) 4,236
All other ............................................ — 113 18 (18) 113
Total .............................................. $ 10,513 $ 580 $ — $ (232) $ 10,861
(In Millions)
Dec 29,
2012 Acquisitions Transfers
Currency
Exchange
and Other
Dec 28,
2013
PC Client Group ..................................... $ 2,962 $ 62 $ 34 $ — $ 3,058
Data Center Group ................................... 1,839 14 (22) — 1,831
Other Intel architecture operating segments ................ 916 171 (12) — 1,075
Software and services operating segments ................. 3,993 504 — 52 4,549
Total .............................................. $ 9,710 $ 751 $ — $ 52 $ 10,513
During 2014, we formed the Internet of Things Group (IOTG) and we changed our organizational structure to align with our critical
objectives, which included the addition of the Mobile and Communications Group (MCG) as a reportable operating segment. Due
to this reorganization, goodwill was allocated from our prior reporting units to our new reporting units, as shown in the preceding
table within “transfers.” The allocation was based on the fair value of each business group within its original reporting unit relative
to the fair value of that reporting unit.
During 2013, we completed a reorganization that transferred a portion of our wired connectivity business formerly included within
the Data Center Group (DCG) to the PC Client Group (PCCG). Due to this reorganization, goodwill was transferred from DCG to
PCCG. Also during 2013, we completed a reorganization of Intel Mobile Communications (IMC) into our Multi-Comm and existing
Phone Group operating segments. Goodwill related to the former IMC was allocated between Multi-Comm and the Phone Group
within the “other Intel architecture” operating segments.
For further information on these reorganizations, see “Note 26: Operating Segments and Geographic Information.”
During the fourth quarters of 2014, 2013, and 2012, we completed our annual impairment assessments and we concluded that
goodwill was not impaired in any of these years. The accumulated impairment losses as of December 27, 2014 were $719 million:
$352 million associated with PCCG, $275 million associated with DCG, $79 million associated with IOTG, and $13 million
associated with MCG.
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