Intel 2012 Annual Report Download - page 71

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December 29, 2012, our total credit exposure to any single counterparty, excluding U.S. and Japan government bonds,
did not exceed $750 million. We obtain and secure available collateral from counterparties against obligations, including
securities lending transactions, when we deem it appropriate.
A substantial majority of our trade receivables are derived from sales to original equipment manufacturers and original
design manufacturers. We also have accounts receivable derived from sales to industrial and retail distributors. Our three
largest customers accounted for 43% of net revenue for 2012, 43% of net revenue for 2011, and 46% of net revenue for
2010. Additionally, these three largest customers accounted for 33% of our accounts receivable as of December 29, 2012
and 36% of our accounts receivable as of December 31, 2011. We believe that the receivable balances from these largest
customers do not represent a significant credit risk based on cash flow forecasts, balance sheet analysis, and past
collection experience.
We have adopted credit policies and standards intended to accommodate industry growth and inherent risk. We believe
that credit risks are moderated by the financial stability of our major customers. We assess credit risk through quantitative
and qualitative analysis, and from this analysis, we establish credit limits and determine whether we will seek to use one
or more credit support devices, such as obtaining a parent guarantee or standby letter of credit, or obtaining credit
insurance.
Note 9: Other Long-Term Assets
Other long-term assets as of December 29, 2012 and December 31, 2011 were as follows:
(In Millions)
2012
2011
Equity method investments .......................................................................................................
$ 992
$ 1,669
Non-marketable cost method investments ................................................................................
1,202
1,129
Non-current deferred tax assets ................................................................................................
358
335
Loans receivable .......................................................................................................................
644
715
Other..........................................................................................................................................
952
800
Total other long-term assets ..................................................................................................
$ 4,148
$ 4,648
Note 10: Equity Method and Cost Method Investments
Equity Method Investments
Equity method investments are classified within other long-term assets and as of December 29, 2012 and December 31,
2011 were as follows:
2012
2011
(Dollars In Millions)
Carrying
Value
Ownership
Percentage
Carrying
Value
Ownership
Percentage
IM Flash Technologies, LLC..........................................................
$ 642
49%
$ 863
49%
Intel-GE Care Innovations, LLC.....................................................
146
50%
167
50%
SMART Technologies, Inc.............................................................
25
14%
37
14%
Clearwire Communications, LLC...................................................
—
6%
—
7%
IM Flash Singapore, LLP ...............................................................
—
—%
466
18%
Other equity method investments..................................................
179
136
Total..............................................................................................
$ 992
$ 1,669
IM Flash Technologies, LLC and IM Flash Singapore, LLP
Micron and Intel formed IMFT and IMFS to manufacture NAND flash memory products for Micron and Intel. During the
second quarter of 2012, we entered into agreements with Micron to modify our joint venture relationship. Under the
agreements and as of December 29, 2012, we own a 49% interest in the remaining assets held by IMFT and no longer
hold an ownership interest in IMFS. We received $605 million in the second quarter of 2012 from the sale of assets of
IMFS and certain assets of IMFT to Micron, which is reflected as a sale of assets within investing activities on the
consolidated statements of cash flows.