Intel 2006 Annual Report Download - page 30

Table of Contents
Changes in our effective tax rate may have an adverse effect on our results of operations.
Our future effective tax rates may be adversely affected by a number of factors including:
Any significant increase in our future effective tax rates could adversely impact net income for future periods. In addition, the
U.S. Internal Revenue Service (IRS) and other tax authorities regularly examine our income tax returns. The IRS has proposed
adjustments or issued formal assessments related to amounts reflected on certain of our tax returns as a tax benefit for our
export sales. See “Note 19: Contingencies” in Part II, Item 8 of this Form 10-K. Our results of operations could be adversely
impacted if these assessments or any other assessments resulting from the examination of our income tax returns by the IRS or
other taxing authorities are not resolved in our favor.
We invest in companies for strategic reasons and may not realize a return on our investments.
We make investments in companies around the world to further our strategic objectives and support our key business
initiatives. Such investments include investments in equity securities of public companies and investments in non-marketable
equity securities of private companies, which range from early-stage companies that are often still defining their strategic
direction to more mature companies whose products or technologies may directly support an Intel product or initiative. The
success of these companies is dependent on product development, market acceptance, operational efficiency, and other key
business success factors. The private companies in which we invest may fail because they may not be able to secure additional
funding, obtain favorable investment terms for future financings, or take advantage of liquidity events such as initial public
offerings, mergers, and private sales. If any of these private companies fail, we could lose all or part of our investment in that
company. If we determine that an other-than-temporary decline in the fair value exists for the equity securities of the public
and private companies in which we invest, we write down the investment to its fair value and recognize the related write-
down
as an investment loss. Furthermore, when the strategic objectives of an investment have been achieved, or if the investment or
business diverges from our strategic objectives, we may decide to dispose of the investment. Our investments in non-
marketable equity securities of private companies are not liquid, and we may not be able to dispose of these investments on
favorable terms or at all. The occurrence of any of these events could negatively affect our results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
At December 30, 2006, our major facilities consisted of:
20
•
the jurisdictions in which profits are determined to be earned and taxed;
•
the resolution of issues arising from tax audits with various tax authorities;
•
changes in the valuation of our deferred tax assets and liabilities;
•
adjustments to estimated taxes upon finalization of various tax returns;
• increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and
development and impairment of goodwill in connection with acquisitions;
•
changes in available tax credits;
•
changes in share
-
based compensation expense;
• changes in tax laws or the interpretation of such tax laws and changes in generally accepted accounting principles;
and/or
•
the repatriation of
non
-
U.S.
earnings for which we have not previously provided for U.S. taxes.
(Square Feet in Millions)
United States Other Countries Total
Owned facilities
1
27.9
13.2
41.1
Leased facilities
2
2.2
3.4
5.6
Total facilities
30.1
16.6
46.7
1
Leases on portions of the land used for these facilities expire at varying dates through 2062.
2
These leases expire at varying dates through 2021 and generally include renewals at our option.