Intel 2012 Annual Report Download - page 73

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Clearwire Communications, LLC
In 2008, we invested in Clearwire Communications, LLC (Clearwire LLC). We recognized our proportionate share of
losses to the extent that our investment had a positive carrying value. We recognized equity method losses of $145 million
in 2011 and $116 million in 2010, which are included in gains (losses) on equity investments, net.
Numonyx B.V.
In 2008, we divested our NOR flash memory business in exchange for an ownership interest in Numonyx. During 2010,
we recognized $42 million of equity method gains within gains (losses) on equity investments, net.
During the second quarter of 2010, we sold our ownership interest in Numonyx to Micron and recognized a gain on the
sale of $91 million, which is included in gains (losses) on equity investments, net. In exchange for our investment in
Numonyx, we received 57.9 million shares of Micron common stock, with an additional 8.6 million shares held in escrow
for 12 months after the sale, and we issued a $72 million short-term note payable, which was subsequently paid.
In the fourth quarter of 2010, we sold 21.5 million shares of Micron common stock, which consisted of the 8.6 million
shares held in escrow and an additional 12.9 million shares received in the sale of Numonyx. In 2011, we sold the
remaining Micron shares.
Cost Method Investments
The carrying value of our non-marketable cost method investments was $1.2 billion as of December 29, 2012 and $1.1
billion as of December 31, 2011. In 2012, we recognized impairment charges on non-marketable cost method investments
of $104 million within gains (losses) on equity investments, net ($56 million in 2011 and $109 million in 2010).
Note 11: Gains (Losses) on Equity Investments, Net
Gains (losses) on equity investments, net included:
(In Millions)
2012
2011
2010
Share of equity method investee losses, net..........................................
$ (81)
$ (204)
$ (113)
Impairment charges................................................................................
(154)
(132)
(125)
Gains on sales, net.................................................................................
183
303
424
Other, net................................................................................................
193
145
162
Total gains (losses) on equity investments, net................................
$ 141
$ 112
$ 348
Note 12: Interest and Other, Net
The components of interest and other, net were as follows:
(In Millions)
2012
2011
2010
Interest income .........................................................................................
$ 97
$ 98
$ 119
Interest expense .......................................................................................
(90)
(41)
—
Other, net..................................................................................................
87
135
(10)
Total interest and other, net ..................................................................
$ 94
$ 192
$ 109
Interest expense in the preceding table is net of $240 million of interest capitalized in 2012 ($150 million in 2011 and $134
million in 2010). In 2011, we recognized a gain upon forming the Intel and GE joint venture, Care Innovations, of
$164 million, which is included within “other, net,” in the preceding table. For further information, see “Note 10: Equity
Method and Cost Method Investments.”
Note 13: Acquisitions
2012 Acquisitions
During 2012, we completed 15 acquisitions qualifying as business combinations in exchange for aggregate net cash
consideration of $638 million. Substantially all of the consideration was allocated to goodwill and acquisition-related
developed technology intangible assets. For information on the assignment of goodwill to our operating segments for our
acquisitions, see “Note 15: Goodwill,” and for information on the classification of intangible assets, see “Note 16: Identified
Intangible Assets.” The completed acquisitions in 2012, both individually and in the aggregate, were not significant to our
consolidated results of operations.