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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
BIAX Corporation v. Intel Corporation and Analog Devices, Inc.
In May 2005, BIAX Corporation filed a lawsuit against us and Analog Devices, Inc. in the United States District Court for the
Eastern District of Texas. The complaint alleged that certain Hyper-Threading-enabled processors, including the Intel
®
Pentium
®
and Intel
®
Xeon
®
processors supporting Hyper-Threading Technology, and Itanium
®
and Itanium
®
2 processors,
infringed four BIAX patents. The complaint sought unspecified damages, injunctive, and other relief, including enhanced
damages for alleged willful infringement. In June 2007, the parties finalized a settlement agreement pursuant to which, among
other terms, we made a payment to BIAX, and, in exchange, we received a license to BIAX’s patent portfolio. In July 2007,
the lawsuit was dismissed with prejudice.
Martin Smilow v. Craig R. Barrett et al. & Intel Corporation
On February 13, 2008, Martin Smilow, an Intel stockholder, filed a putative derivative action in the United States District
Court for the District of Delaware against members of our Board of Directors. The complaint alleges generally that the Board
allowed the company to violate antitrust and other laws, as described in AMD’s antitrust lawsuits against us, and that those
Board-sanctioned activities have harmed the company. The complaint repeats many of AMD’s allegations and references
various investigations by the European Community, Korean Fair Trade Commission, and others. We deny the allegations and
intend to defend the lawsuit vigorously.
Note 22: Operating Segment and Geographic Information
As of December 29, 2007, our operating segments included the Digital Enterprise Group, Mobility Group, NAND Products
Group, Flash Memory Group, Digital Home Group, Digital Health Group, and Software and Solutions Group. In the fourth
quarter of 2007, we made organizational changes that resulted in the formation of the NAND Products Group operating
segment, which includes the NAND flash memory business that was previously included in the Flash Memory Group
operating segment. The Flash Memory Group operating segment includes sales of NOR flash memory products. During the
first quarter of 2008, we expect to complete the divestiture of our NOR flash memory assets to Numonyx. We expect to enter
into supply and transition service agreements to provide products, services, and support to Numonyx following the close of the
transaction. See “Note 13: Divestitures” for more information on Numonyx. Prior-period amounts have been adjusted
retrospectively to reflect other minor reorganizations.
The Chief Operating Decision Maker (CODM), as defined by SFAS No. 131, “Disclosures about Segments of an Enterprise
and Related Information” (SFAS No. 131), is our President and Chief Executive Officer (CEO). The CODM allocates
resources to and assesses the performance of each operating segment using information about its revenue and operating
income (loss) before interest and taxes.
We report the financial results of the following operating segments:
The NAND Products Group, Flash Memory Group, Digital Home Group, Digital Health Group, and Software and Solutions
Group operating segments do not meet the quantitative thresholds for reportable segments as defined by SFAS No. 131 and
are included within the all other category.
89
•
Digital Enterprise Group.
Includes microprocessors and related chipsets and motherboards designed for the desktop
and enterprise computing market segments; communications infrastructure components such as network processors,
communications boards, and embedded processors; wired connectivity devices; and products for network and server
storage.
•
Mobility Group.
Includes microprocessors and related chipsets designed for the notebook market segment, wireless
connectivity products, and products designed for the ultra-mobile market segment. In the fourth quarter of 2006, we
completed the sale of certain assets of our communications and application processor business lines to Marvell.
Related to the sale, we entered into a manufacturing and transition services agreement with Marvell. As a result, our
sales of application and cellular baseband processors in 2007 were only to Marvell.