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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2007, we completed one acquisition that resulted in goodwill of $60 million. See “Note 12: Acquisitions” for further
discussion. During 2006, we completed three divestitures that resulted in a reduction of $12 million in goodwill. See “
Note 13:
Divestitures” for further discussion.
We concluded that goodwill was not impaired during 2007, 2006, and 2005.
Note 16: Restructuring and Asset Impairment Charges
In the third quarter of 2006, management approved several actions that were recommended by our structure and efficiency task
force as part of a restructuring plan designed to improve operational efficiency and financial results. Some of these activities
involve cost savings or other actions that do not result in restructuring charges, such as better utilization of assets, reduced
spending, and organizational efficiencies. The efficiency program includes headcount targets for various groups within the
company, and these targets are being met through ongoing employee attrition and terminations. In addition, business
divestitures further reduce our headcount.
Restructuring and asset impairment charges for the three years ended December 29, 2007 were as follows:
During 2006, we completed the divestiture of three businesses concurrently with the ongoing execution of the efficiency
program. See “Note 13: Divestitures” for further discussion. In connection with the divestiture of certain assets of our
communications and application processor business, we recorded impairment charges of $103 million related to the write-
down of manufacturing tools to their fair value, less the cost to dispose of the assets. We determined the fair value using a
market-based valuation technique. In addition, as a result of both this divestiture and a subsequent assessment of our
worldwide manufacturing capacity operations, we placed for sale the fabrication facility in Colorado Springs, Colorado. This
plan resulted in an impairment charge of $214 million to write down to fair value the land, building, and equipment asset
grouping that has been principally used to support our communications and application processor business. We determined the
fair market value of the asset grouping using an average of the results from using the cost approach and market approach
valuation techniques.
During 2007, we incurred an additional $54 million in asset impairment charges as a result of softer than anticipated market
conditions related to the Colorado Springs facility. Also, we recorded land and building write-downs related to certain
facilities in Santa Clara, California. In addition, during the fourth quarter we incurred $85 million in asset impairment charges
related to the anticipated divestiture of our NOR flash memory business. The impairment charges were determined using the
revised fair value, less selling costs, that we expected to receive upon completion of the divestiture. See “Note 13:
Divestitures” for further information on this divestiture, which is expected to be completed during the first quarter of 2008.
76
(In Millions)
2007
2006
2005
Employee severance and benefit arrangements
$
289
$
238
$
—
Asset impairments
227
317
—
Total restructuring and asset impairment charges
$
516
$
555
$
—