Intel 2010 Annual Report Download - page 67

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Table of Contents
As of December 25, 2010, the fair value of our marketable equity investments and our equity derivative instruments, including
hedging positions, was $1.5 billion ($805 million as of December 26, 2009). Our marketable equity investments include our
investments in Micron, Imagination Technologies Group PLC, VMware, Inc., and Clearwire Corporation, and were carried at
a total fair market value of $968 million, or 65% of our marketable equity portfolio, as of December 25, 2010. Our marketable
equity method investment in SMART is 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 analyzed the expected market price sensitivity of our marketable
equity investment portfolio. Assuming a loss of 40% 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 $365 million, based on
the value as of December 25, 2010 (a decrease in value of approximately $405 million, based on the value as of December 26,
2009 using an assumed loss of 50%).
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 being able
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 $872 million as of December 25, 2010 ($939
million as of December 26, 2009). As of December 25, 2010, the carrying amount of our non-marketable equity method
investments was $1.8 billion ($2.5 billion as of December 26, 2009). A substantial majority of this balance as of December 25,
2010 was concentrated in our IMFT/IMFS investment of $1.5 billion ($1.6 billion as of December 26, 2009). Our investments
as of December 26, 2009 also included an investment of $453 million in Numonyx, which was sold in 2010. For further
information, see “Note 11: Equity Method and Cost Method Investments” in Part II, Item 8 of this Form 10-K.
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