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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14: Interest and Other, Net
The components of interest and other, net were as follows:
Note 15: Acquisitions
Consideration for acquisitions that qualify as business combinations includes the net cash paid and the fair value of any vested
share-based awards assumed. During the third quarter of 2009, we completed two acquisitions qualifying as business
combinations for total consideration of $885 million (net of $59 million cash acquired). Substantially all of this amount related
to the acquisition of Wind River Systems, Inc., a vendor of software for embedded devices, completed by acquiring all issued
and outstanding Wind River Systems common shares. The objective of the acquisition of Wind River Systems was to enable
the introduction of products for the embedded and handheld market segments, resulting in benefits for our existing operations.
The combined consideration for acquisitions completed during 2009 was allocated as follows:
During 2008, we completed two acquisitions qualifying as business combinations in exchange for aggregate net cash
consideration of $16 million, plus certain liabilities. We allocated all of this consideration to goodwill. During 2007, we
completed one acquisition qualifying as a business combination in exchange for net cash consideration of $76 million, plus
assumption of certain liabilities. We allocated a substantial majority of this consideration to goodwill. During 2008 and 2007,
the acquired business and related goodwill were recorded within the “other operating segments” category for segment
reporting purposes.
The completed acquisitions in 2009, 2008, and 2007 were not significant to our consolidated results of operations.
Note 16: Divestitures
During the first quarter of 2008, we completed the divestiture of a portion of the telecommunications-related assets of our
optical platform division. Consideration for the divestiture was $85 million, including $75 million in cash and common shares
of the acquiring company, with an estimated value of $10 million at the date of purchase. We entered into an agreement with
the acquiring company to provide certain manufacturing and transition services for a limited time that has since been
completed. During the first quarter of 2008, as a result of this divestiture, we recorded a net gain of $39 million within interest
and other, net. During the second quarter of 2008, we completed the sale of the remaining portion of our optical platform
division for common shares of the acquiring company with an estimated value of $27 million at the date of purchase. Overall,
approximately 100 employees of our optical products business became employees of the acquiring company.
79
(In Millions)
2009
2008
2007
Interest income
$
168
$
592
$
804
Interest expense
(1
)
(8
)
(15
)
Other, net
(4
)
(96
)
4
Total interest and other, net
$
163
$
488
$
793
(In Millions)
Fair value of net tangible assets acquired
$
47
Goodwill
489
Acquired developed technology
148
Other identified intangible assets
169
Share
-
based awards assumed
32
Total
$
885