Intel 2007 Annual Report Download - page 82

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The components of accumulated other comprehensive income (loss), net of tax, were as follows:
In the table above, accumulated net unrealized holding gain on available-for-sale investments included $364 million as of
December 29, 2007 related to our investment in VMware, net of tax of $212 million.
For 2007, we reclassified $39 million of net deferred holding gains on derivatives from accumulated other comprehensive
income (loss) to cost of sales and operating expenses related to our non-U.S.-currency capital purchase and operating cost
hedging programs (losses of $6 million in 2006 and gains of $38 million in 2005). We estimate that we will reclassify less than
$45 million of net derivative gains included in other accumulated comprehensive income (loss) into earnings within the next
12 months. For all periods presented, the portion of hedging instruments’ gains or losses excluded from the assessment of
effectiveness and the ineffective portions of hedges had an insignificant impact on earnings for cash flow hedges.
Additionally, for all periods presented, there was no significant impact on results of operations from discontinued cash flow
hedges as a result of forecasted transactions that did not occur.
The estimated net prior service cost, actuarial loss, and transition obligation for the defined benefit plan that will be amortized
from accumulated other comprehensive income (loss) into net periodic benefit cost during fiscal year 2008 are $4 million,
$9 million, and zero, respectively.
We recorded the adjustment for initially applying SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (SFAS No. 158) in 2006, net
of tax, to accumulated other comprehensive income (loss) for $210 million as of December 30, 2006. See “Note 18:
Retirement Benefit Plans.”
Note 12: Acquisitions
Consideration for acquisitions that qualify as business combinations includes the cash paid and the value of any options
assumed, less any cash acquired, and excludes contingent employee compensation payable in cash and any debt assumed.
During 2007, we completed one acquisition qualifying as a business combination in exchange for aggregate net cash
consideration of $76 million, plus certain liabilities. We allocated a substantial majority of this consideration to goodwill. The
acquired business and related goodwill was recorded within the all other category for segment reporting purposes. During
2006, we did not complete any acquisitions qualifying as business combinations. During 2005, we completed three
acquisitions qualifying as business combinations in exchange for aggregate net cash consideration of $177 million, plus certain
liabilities. We allocated most of this consideration to goodwill. The acquired businesses and related goodwill were recorded
within the all other category for segment reporting purposes.
Note 13: Divestitures
In September 2006, we completed the divestiture of our media and signaling business and associated assets that were included
in the Digital Enterprise Group operating segment. We received $75 million in cash consideration. Approximately
375 employees of our media and signaling business became employees of the acquiring company. As a result of this
divestiture, we recorded a reduction of goodwill for $4 million. Additionally, we recorded a net gain of $52 million within
interest and other, net.
73
(In Millions)
2007
2006
Accumulated net unrealized holding gain on available
-
for
-
sale investments
$
324
$
113
Accumulated net unrealized holding gain on derivatives
100
80
Accumulated net prior service costs
(13
)
(16
)
Accumulated net actuarial losses
(148
)
(232
)
Accumulated transition obligation
(2
)
(2
)
Total accumulated other comprehensive income (loss)
$
261
$
(57
)