Intel (INTC) 10-Q 2 Nov 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
Share data in Millions	9 Months Ended Sep. 26, 2009	Oct. 23, 2009
Document and Company Information [Abstract]
Entity Registrant Name	Intel Corporation
Entity Central Index Key	0000050863
Document Type	10-Q
Document Period End Date	2009-09-26
Amendment Flag	false
Company Fiscal Year End Date	--12-26
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		5,522

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 26, 2009	3 Months Ended Sep. 27, 2008	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Net revenue	$9,389	$10,217	$24,558	$29,360
Cost of sales	3,985	4,198	11,837	12,885
Gross margin	5,404	6,019	12,721	16,475
Research and development	1,430	1,471	4,050	4,406
Marketing, general and administrative	1,320	1,415	5,213	4,191
Restructuring and asset impairment charges	63	34	228	459
Amortization of acquisition-related intangibles and costs	12	1	16	4
Operating expenses	2,825	2,921	9,507	9,060
Operating income	2,579	3,098	3,214	7,415
Gains (losses) on equity method investments, net	(59)	(365)	(175)	(460)
Gains (losses) on other equity investments, net	(20)	(31)	(86)	(104)
Interest and other, net	32	131	158	466
Income before taxes	2,532	2,833	3,111	7,317
Provision for taxes	676	819	1,024	2,259
Net income	$1,856	$2,014	$2,087	$5,058
Basic earnings per common share (in dollars per share)	0.34	0.36	0.37	0.89
Diluted earnings per common share (in dollars per share)	0.33	0.35	0.37	0.87
Cash dividends declared per common share (in dollars per share)	0.28	0.28	0.56	0.548
Weighted average common shares outstanding:
Basic (shares)	5,537	5,603	5,568	5,696
Diluted (shares)	5,616	5,692	5,643	5,790

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets (Unaudited) (USD $)
In Millions	Sep. 26, 2009	Dec. 27, 2008
Current assets:
Cash and cash equivalents	$4,109	$3,350	[1]
Short-term investments	5,150	5,331	[1]
Trading assets	3,671	3,162	[1]
Accounts receivable, net	2,025	1,712	[1]
Inventories	2,490	3,744	[1]
Deferred tax assets	1,260	1,390	[1]
Other current assets	542	1,182	[1]
Total current assets	19,247	19,871	[1]
Property, plant and equipment, net of accumulated depreciation of $31,261 ($30,544 as of December 27, 2008)	17,354	17,574	[1]
Marketable equity securities	766	352	[1]
Other long-term investments	3,611	2,924	[1]
Goodwill	4,421	3,932	[1]
Other long-term assets	5,597	5,819	[1]
Total assets	50,996	50,472	[1]
Current liabilities:
Short-term debt	23	102	[1]
Accounts payable	1,907	2,390	[1]
Accrued compensation and benefits	1,758	2,015	[1]
Accrued advertising	763	807	[1]
Deferred income on shipments to distributors	602	463	[1]
Other accrued liabilities	2,225	1,901	[1]
Income taxes payable	471	140	[1]
Total current liabilities	7,749	7,818	[1]
Long-term income taxes payable	386	736	[1]
Long-term debt	2,201	1,185	[1]
Other long-term liabilities	1,627	1,187	[1]
Stockholders' equity:
Preferred stock	0	0	[1]
Common stock and capital in excess of par value, 5,520 shares issued and outstanding (5,562 as of December 27, 2008)	14,763	13,402	[1]
Accumulated other comprehensive income (loss)	233	(393)	[1]
Retained earnings	24,037	26,537	[1]
Total stockholders' equity	39,033	39,546	[1]
Total liabilities and stockholders' equity	$50,996	$50,472	[1]
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 2: Accounting Changes."

1_Consolidated Condensed Balanc

Consolidated Condensed Balance Sheets (Parenthetical) (Unaudited) (USD $)
In Millions	Sep. 26, 2009	Dec. 27, 2008
Assets
Accumulated depreciation	$31,261	$30,544	[1]
Stockholders' equity:
Common stock, shares issued	5,520	5,562	[1]
Common stock, shares outstanding	5,520	5,562	[1]
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 2: Accounting Changes."

2_Consolidated Condensed Statem

Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 26, 2009		9 Months Ended Sep. 27, 2008
Cash and cash equivalents, beginning of period	$3,350	[1]	$7,307
Cash flows provided by (used for) operating activities:
Net income	2,087		5,058
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,572		3,203
Share-based compensation	689		659
Restructuring, asset impairment, and net loss on retirement of assets	331		516
Excess tax benefit from share-based payment arrangements	(6)		(30)
Amortization of intangibles and other acquisition-related costs	219		194
(Gains) losses on equity method investments, net	175		460
(Gains) losses on other equity investments, net	86		104
(Gains) losses on divestitures	0		(59)
Deferred taxes	181		(415)
Changes in assets and liabilities:
Trading assets	299		83
Accounts receivable	(287)		(471)
Inventories	1,236		(60)
Accounts payable	(482)		146
Accrued compensation and benefits	(388)		(624)
Income taxes payable and receivable	775		(281)
Other assets and liabilities	(722)		(153)
Total adjustments	5,678		3,272
Net cash provided by operating activities	7,765		8,330
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment	(3,434)		(3,432)
Acquisitions, net of cash acquired	(853)		(9)
Purchases of available-for-sale investments	(5,375)		(5,152)
Maturities and sales of available-for-sale investments	5,084		6,519
Purchases of trading assets	(2,505)		(2,173)
Maturities and sales of trading assets	1,879		642
Loans receivable	(243)		0
Investments in non-marketable equity investments	(165)		(564)
Return of equity method investments	348		193
Proceeds from divestitures	0		75
Other investing activities	68		25
Net cash used for investing activities	(5,196)		(3,876)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net	(77)		325
Proceeds from government grants	0		2
Excess tax benefit from share-based payment arrangements	6		30
Issuance of long-term debt	1,980		0
Proceeds from sales of shares through employee equity incentive plans	367		1,103
Repurchase and retirement of common stock	(1,752)		(7,195)
Payment of dividends to stockholders	(2,334)		(2,322)
Net cash used for financing activities	(1,810)		(8,057)
Net increase (decrease) in cash and cash equivalents	759		(3,603)
Cash and cash equivalents, end of period	4,109		3,704
Cash paid during the period for:
Interest, net of capitalized interest	4		4
Income taxes, net of refunds	$52		$2,941
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 2: Accounting Changes."

Basis of Presentation

Basis of Presentation
	9 Months Ended Sep. 26, 2009 USD / shares
Basis of Presentation [Abstract]
Basis of Presentation	Note 1: Basis of Presentation We prepared our interim consolidated condensed financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December27, 2008, except for changes in the accounting for convertible debt as a result of new accounting standards. Prior year balances have been retrospectively adjusted. See Note 2: Accounting Changes and Note 18: Borrowings for further discussion. We have made estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. Our actual results may differ materially from these estimates. The accounting estimates that require our most significant, difficult, and subjective judgments include: the valuation of non-marketable equity investments and the determination of other-than-temporary impairments; the valuation of investments in debt instruments and the determination of other-than-temporary impairments; the assessment of recoverability of long-lived assets; the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions); and the valuation of inventory. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December27, 2008. We have evaluated subsequent events through the date that the financial statements were issued on November2, 2009.

Accounting Changes

Accounting Changes
	9 Months Ended Sep. 26, 2009 USD / shares
Accounting Changes [Abstract]
Accounting Changes	Note 2: Accounting Changes In the first quarter of 2009, we adopted new standards that changed the accounting for convertible debt instruments with cash settlement features. As of adoption, these new standards applied to our junior subordinated convertible debentures issued in 2005 (the 2005 debentures). Under the previous standards, our 2005 debentures were recognized entirely as a liability at historical value. In accordance with adopting these new standards, we retrospectively recognized both a liability and an equity component of the 2005 debentures at fair value. The liability component is recognized as the fair value of a similar instrument that does not have a conversion feature at issuance. The equity component, which is the value of the conversion feature at issuance, is recognized as the difference between the proceeds from the issuance of the 2005 debentures and the fair value of the liability component, after adjusting for the deferred tax impact. The 2005 debentures were issued at a coupon rate of 2.95%, which was below that of a similar instrument that does not have a conversion feature (6.45%). Therefore, the valuation of the debt component, using the income approach, resulted in a debt discount. The debt discount is reduced over the expected life of the debt, which is also the stated life of the debt. These new standards are also applicable in accounting for our convertible debt issued during the third quarter of 2009. See Note 18: Borrowings for further discussion. As a result of applying these new standards retrospectively to all periods presented, we recognized the following incremental effects on individual line items on the consolidated condensed balance sheets: December 27, 2008 Before After (In millions) Adoption Adjustments Adoption Property, plant and equipment, net $ 17,544 $ 30 $ 17,574 Other long-term assets1 $ 6,092 $ (273 ) $ 5,819 Long-term debt $ 1,886 $ (701 ) $ 1,185 Common stock and capital in excess of par value $ 12,944 $ 458 $ 13,402 1 Primarily relates to the adjustment made to the net deferred tax asset. The adoption of these new standards did not result in a change to our prior-period consolidated condensed statements of operations, as the interest associated with our debt issuances is capitalized and added to the cost of qualified assets. The adoption of these new standards did not result in a significant change to depreciation expense or earnings per common share for the third quarter or the first nine months of 2009. In the first quarter of 2009, we adopted revised standards for business combinations. These revised standards generally require an entity to recognize the assets acquired, liabilities assumed, contingencies, and contingent consideration at their fair value on the acquisition date. In circumstances where the acquisition-date fair value for a contingency cannot be determined during the measurement period and it is concluded that it is probable that an asset or liability exists as of the acquisition date and the amount can be reasona

Recent Accounting Standards

Recent Accounting Standards
	9 Months Ended Sep. 26, 2009 USD / shares
Recent Accounting Standards [Abstract]
Recent Accounting Standards	Note 3: Recent Accounting Standards In December2008, the FASB issued additional disclosure requirements for plan assets of defined benefit pension or other postretirement plans. The required disclosures include a description of our investment policies and strategies, the fair value of each major category of plan assets, the inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using significant unobservable inputs on changes in plan assets, and the significant concentrations of risk within plan assets. These additional disclosures do not change the accounting treatment for postretirement benefits plans and are effective for us for fiscal year 2009. In June2009, the FASB issued new standards for the accounting for transfers of financial assets. These new standards eliminate the concept of a qualifying special-purpose entity; remove the scope exception from applying the accounting standards that address the consolidation of variable interest entities to qualifying special-purpose entities; change the standards for derecognizing financial assets; and require enhanced disclosure. These new standards are effective for us beginning in the first quarter of fiscal year 2010 and are not expected to have a significant impact on our consolidated financial statements. In June2009, the FASB issued amended standards for determining whether to consolidate a variable interest entity. These amended standards eliminate a mandatory quantitative approach to determine whether a variable interest gives the entity a controlling financial interest in a variable interest entity in favor of a qualitatively focused analysis, and require an ongoing reassessment of whether an entity is the primary beneficiary. These amended standards are effective for us beginning in the first quarter of fiscal year 2010 and we are currently evaluating the impact that adoption will have on our consolidated financial statements. In August2009, the FASB issued amended standards for the fair value measurement of liabilities. These amended standards clarify that in circumstances in which a quoted price in an active market for the identical liability is not available, we are required to use the quoted price of the identical liability when traded as an asset, quoted prices for similar liabilities, or quoted prices for similar liabilities when traded as assets. If these quoted prices are not available, we are required to use another valuation technique, such as an income approach or a market approach. These amended standards are effective for us beginning in the fourth quarter of fiscal year 2009 and are not expected to have a significant impact on our consolidated financial statements. In October2009, the FASB issued new standards for revenue recognition with multiple deliverables. These new standards impact the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting. Additionally, these new standards modify the manner in which the transaction consideration is allocated across the separately identified deliverables by no long

Fair Value

Fair Value
	9 Months Ended Sep. 26, 2009 USD / shares
Fair Value [Abstract]
Fair Value	Note 4: Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. Our financial instruments are measured and recorded at fair value, except for equity method investments, cost method investments, and most of our long-term debt. We measure our equity method and cost method investments at fair value quarterly; however, they are only recorded at fair value when an impairment charge is recognized. Our non-financial assets, such as intangible assets and property, plant and equipment, are measured at fair value when the carrying amount exceeds the undiscounted cash flows and are recorded at fair value only when an impairment charge is recognized. Financial instruments that are not recorded at fair value are measured at fair value quarterly for disclosure purposes. The fair value of our non-marketable equity investments exceeded the carrying value by approximately $1.8billion as of September26, 2009 (the fair value exceeded the carrying value by approximately $300million as of December27, 2008). As of September26, 2009, we had non-marketable equity investments in an unrealized loss position of approximately $50million that had a fair value of approximately $280million (unrealized loss position of approximately $100 million on non-marketable equity investments with a fair value of approximately $270million as of December27, 2008). The fair value of these investments takes into account the movements of the equity and venture capital markets as well as changes in the interest rate environment, and other economic variables. The fair value of our long-term debt was approximately $140million higher than the long-term debt carrying value as of September26, 2009 on our consolidated condensed balance sheet (approximately $35million lower than the long-term debt carrying value as of December27, 2008). The fair value of our long-term debt takes into consideration credit rating changes, interest rate changes, and other economic variables. Fair Value Hierarchy The three levels of inputs that may be used to measure fair value are as follows: Level 1. Quoted prices in active markets for identical assets or liabilities. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 2 inputs also include non-binding market consensus prices that can be corroborated with observable market data as well as quoted prices that were adjusted for security-specific restrictio

Trading Assets

Trading Assets
	9 Months Ended Sep. 26, 2009 USD / shares
Trading Assets [Abstract]
Trading Assets	Note 5: Trading Assets Trading assets at fair value at the end of each period were as follows: September 26, 2009 Dec. 27, 2008 Net Net Unrealized Unrealized (In Millions) Gains (Losses) Fair Value Gains (Losses) Fair Value Marketable debt instruments $ 65 $ 3,671 $ (96 ) $ 2,863 Equity securities offsetting deferred compensation (41 ) 299 Total trading assets $ 65 $ 3,671 $ (137 ) $ 3,162 During the third quarter of 2009, we sold our equity securities offsetting deferred compensation and entered into derivative instruments that seek to offset changes in liabilities related to these deferred compensation arrangements. These deferred compensation liabilities were $496million as of September26, 2009 ($332million as of December27, 2008) and are included in other accrued liabilities. See Note 8: Derivative Financial Instruments for further information on our equity market risk management programs. Gross realized gains and losses on the sale of these equity securities offsetting deferred compensation were insignificant. Net losses on equity securities offsetting deferred compensation arrangements still held at the reporting date were $36million in the third quarter of 2008 and $96million in the first nine months of 2008. Net gains on marketable debt instruments that we classified as trading assets held at the reporting date were $73million in the third quarter of 2009 and $149million in the first nine months of 2009 (losses of $107million in the third quarter of 2008 and $98million in the first nine months of 2008). Net losses on the related derivatives were $47million in the third quarter of 2009 and $55million in the first nine months of 2009 (gains of $64million in the third quarter of 2008 and $36million in the first nine months of 2008).

Available for Sale Investments

Available for Sale Investments
	9 Months Ended Sep. 26, 2009 USD / shares
Available-for-Sale Investments [Abstract]
Available-for-Sale Investments	Note 6: Available-for-Sale Investments Available-for-sale investments as of September26, 2009 and December27, 2008 were as follows: September 26, 2009 December 27, 2008 Gross Gross Gross Gross Adjusted Unrealized Unrealized Adjusted Unrealized Unrealized (In Millions) Cost Gains Losses1 Fair Value Cost Gains Losses Fair Value Floating-rate notes $ 5,881 $ 11 $ (22 ) $ 5,870 $ 6,599 $ 3 $ (133 ) $ 6,469 Commercial paper 4,630 4,630 3,244 4 3,248 Bank time deposits2 1,215 1 1,216 606 2 608 Money market fund deposits 22 22 419 419 Marketable equity securities 405 361 766 393 2 (43 ) 352 Asset-backed securities 249 2 (54 ) 197 374 (43 ) 331 Corporate bonds 285 25 310 270 4 (6 ) 268 Total available-for-sale investments $ 12,687 $ 400 $ (76 ) $ 13,011 $ 11,905 $ 15 $ (225 ) $ 11,695 1 As of September26, 2009, unrealized non-credit components of other-than-temporary impairments recognized on available-for-sale investments were not significant. 2 Bank time deposits were primarily issued by institutions outside the U.S. as of September26, 2009 and December27, 2008. The available-for-sale investments that were in an unrealized loss position as of September26, 2009 and December27, 2008, aggregated by length of time that individual securities had been in a continuous loss position, were as follows: September 26, 2009 Less than 12 Months 12 Months or Greater Total Gross Gross Gross Unrealized Unrealized Unrealized (In Millions) Losses Fair Value Losses Fair Value Losses Fair Value Floating-rate notes $ (6 ) $ 902 $ (16 ) $ 1,788 $ (22 ) $ 2,690 Asset-backed securities (54 ) 159 (54 ) 159 Total $ (6 ) $ 902 $ (70 ) $ 1,947 $ (76 ) $ 2,849 December 27, 2008 Less than 12 Months 12 Months or Greater Total Gross Gross Gross Unrealized Unrealized Unrealized (In Millions) Losses Fair Value Losses Fair Value Losses Fair Value Floating-rate notes $ (70 ) $ 2,933 $ (63 ) $ 1,701 $ (133 ) $ 4,634 Marketable equity securities (43 ) 322 (43 ) 322 Asset-backed securities (43 ) 312 (43 ) 312 Corporate bonds

Inventories

Inventories
	9 Months Ended Sep. 26, 2009 USD / shares
Inventories [Abstract]
Inventories	Note 7: Inventories Inventories at the end of each period were as follows: Sept. 26, Dec. 27, (In Millions) 2009 2008 Raw materials $ 398 $ 608 Work in process 1,072 1,577 Finished goods 1,020 1,559 Total inventories $ 2,490 $ 3,744

Derivative Financial Instrument

Derivative Financial Instruments
	9 Months Ended Sep. 26, 2009 USD / shares
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	Note 8: Derivative Financial Instruments Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk, and to a lesser extent, equity market risk and commodity price risk. We currently do not enter into derivative instruments to manage credit risk; however, we manage our exposure to credit risk through our policies. We generally enter into derivative transactions with high-credit-quality counterparties and, by policy, limit the amount of credit exposure to any one counterparty based on our analysis of that counterpartys relative credit standing. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which a counterpartys obligations exceed our obligations with that counterparty, because we enter into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow counterparties to net settle amounts owed to each other as a result of multiple, separate derivative transactions. Currency Exchange Rate Risk We are exposed to currency exchange rate risk on our non-U.S.-dollar-denominated investments in debt instruments and loans receivable, which are generally hedged with offsetting currency forward contracts, currency options, or currency interest rate swaps. A majority of our revenue, expense, and capital purchasing activities are transacted in U.S. dollars. However, certain operating expenditures and capital purchases are incurred in or exposed to other currencies, primarily the euro, the Israeli shekel, the Chinese yuan, and the Japanese yen. We have established balance sheet and forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. These programs reduce, but do not always entirely eliminate, the impact of currency exchange movements. Our currency risk management programs include: Currency derivatives with cash flow hedge accounting designation that utilize currency forward contracts and currency options to hedge exposures to the variability in the U.S.-dollar equivalent of anticipated non-U.S.-dollar-denominated cash flows. These instruments generally mature within 12months. For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss)in stockholders equity and reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings, and within the same line item on the consolidated condensed statements of operations as the impact of the hedged transaction. Currency derivatives with fair value hedge accounting designation that utilize currency forward contracts and currency options to hedge the fair value exposure of recognized foreign-currency-denominated assets or liabilities, or previously unrecognized firm commitments. For fair value hedges, we recognize gains or losses in earnings to offset fair value changes in the hedged as

Other Long Term Assets

Other Long Term Assets
	9 Months Ended Sep. 26, 2009 USD / shares
Other Long-Term Assets [Abstract]
Other Long-Term Assets	Note 9: Other Long-Term Assets Other long-term assets at the end of each period were as follows: Sept. 26, Dec. 27, (In Millions) 2009 2008 Non-marketable equity method investments $ 2,520 $ 3,032 Non-marketable cost method investments 990 1,021 Identified intangible assets 972 775 Other 1,115 991 Total other long-term assets $ 5,597 $ 5,819 Long-term loans receivable are included in Other in the table above. See Note 4: Fair Value for further discussion on our loans receivable.

Equity Method Investments

Equity Method Investments
	9 Months Ended Sep. 26, 2009 USD / shares
Equity Method Investments [Abstract]
Equity Method Investments	Note 10: Equity Method Investments IMFT/IMFS Micron and Intel formed IM Flash Technologies, LLC (IMFT)in January2006 and IM Flash Singapore, LLP (IMFS)in February2007. We established these joint ventures to manufacture NAND flash memory products for Micron and Intel. We own a 49% interest in each of these ventures. Initial production at the IMFS fabrication facility, including the purchase and installation of manufacturing equipment, remains on hold. These joint ventures are variable interest entities. All costs of the joint ventures will be passed on to Micron and Intel through our purchase agreements. IMFT and IMFS are dependent upon Micron and Intel for any additional cash requirements. Our known maximum exposure to loss approximated our investment balances as of September26, 2009, which were $1.4billion in IMFT and $305million in IMFS ($1.7billion in IMFT and $329million in IMFS as of December27, 2008). Our investments in these ventures are classified within other long-term assets. As of September26, 2009, except for the amount due to IMFT and IMFS for product purchases and services, we did not incur any additional liabilities in connection with our interests in these joint ventures. In addition to the potential loss of our existing investments, our actual losses could be higher, as Intel and Micron are liable for other future operating costs and/or obligations of IMFT and IMFS. In addition, future cash calls could increase our investment balance and the related exposure to loss. Finally, as we are currently committed to purchasing 49% of IMFTs production output and production-related services, we may be required to purchase products at a cost in excess of realizable value. Our portion of IMFTs costs, primarily related to product purchases and start-up costs, was approximately $140million during the third quarter of 2009 and approximately $535million during the first nine months of 2009 (approximately $290million during the third quarter of 2008 and approximately $815million during the first nine months of 2008). The amount due to IMFT for product purchases and services provided was approximately $60million as of September26, 2009 and approximately $190million as of December27, 2008. During the first nine months of 2009, $324 million was returned to Intel by IMFT, which is reflected as a return of equity method investment within investing activities on the consolidated condensed statements of cash flows ($193million during the first nine months of 2008). Micron and Intel are considered related parties under the accounting standards for consolidating variable interest entities. As a result, the primary beneficiary is the entity that is most closely associated with the joint ventures. To make that determination, we reviewed several factors. The most important factors were consideration of the size and nature of the joint ventures operations relative to Micron and Intel, and which party had the majority of economic exposure under the purchase agreements. Based on those factors, we have determined that we are not most closely associated with the joint ventures; therefore, we account for our interests using the equity m

Gains

Gains (Losses) on Equity Method Investments, Net
	9 Months Ended Sep. 26, 2009 USD / shares
Gains (Losses) on Equity Method Investments, Net [Abstract]
Gains (Losses) on Equity Method Investments, Net	Note 11: Gains (Losses) on Equity Method Investments, Net Gains (losses)on equity method investments, net included: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Equity method losses, net $ (41 ) $ (120 ) $ (144 ) $ (212 ) Impairment charges (19 ) (257 ) (32 ) (261 ) Other, net 1 12 1 13 Total gains (losses)on equity method investments, net $ (59 ) $ (365 ) $ (175 ) $ (460 )

3_Gains

Gains (Losses) on Other Equity Investments, Net
	9 Months Ended Sep. 26, 2009 USD / shares
Gains (Losses) on Other Equity Investments, Net [Abstract]
Gains (Losses) on Other Equity Investments, Net	Note 12: Gains (Losses) on Other Equity Investments, Net Gains (losses)on other equity investments, net included: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Impairment charges $ (31 ) $ (55 ) $ (136 ) $ (173 ) Gains on sales 6 15 16 49 Other, net 5 9 34 20 Total gains (losses)on other equity investments, net $ (20 ) $ (31 ) $ (86 ) $ (104 )

Interest and Other, Net

Interest and Other, Net
	9 Months Ended Sep. 26, 2009 USD / shares
Interest and Other, Net [Abstract]
Interest and Other, Net	Note 13: Interest and Other, Net The components of interest and other, net were as follows: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Interest income $ 34 $ 126 $ 144 $ 461 Interest expense (1 ) (8 ) Other, net (2 ) 5 15 13 Total interest and other, net $ 32 $ 131 $ 158 $ 466

Acquisitions

Acquisitions
	9 Months Ended Sep. 26, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	Note 14: 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 $59million cash acquired). Substantially all of this amount related to the acquisition of Wind River Systems Inc., a leading vendor of software for embedded devices, completed by acquiring all issued and outstanding Wind River common shares. The acquisition of Wind River will enable the introduction of leading-edge products for the embedded and handheld market segments resulting in synergistic benefits for our existing operations. The combined consideration for acquisitions completed in the third quarter of 2009 was allocated as follows: (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 The completed acquisitions in the third quarter of 2009 were not significant to our consolidated results of operations.

Goodwill

Goodwill
	9 Months Ended Sep. 26, 2009 USD / shares
Goodwill [Abstract]
Goodwill	Note 15: Goodwill Goodwill activity by reportable operating segment for the first nine months of 2009 was as follows: Digital Enterprise Mobility (In Millions) Group Group All Other Total Goodwill, net December27, 2008 $ 3,515 $ 248 $ 169 $ 3,932 Additions due to business combinations 192 142 155 489 September26, 2009 $ 3,707 $ 390 $ 324 $ 4,421 In the third quarter of 2009, we completed the acquisition of Wind River (see Note 14: Acquisitions). Goodwill recognized from this acquisition was assigned to our Digital Enterprise Group, our Mobility Group, our Digital Home Group, and our Wind River Software Group based on the relative expected fair value provided by the acquisition. The assignment to our Digital Enterprise Group, our Mobility Group, and our Digital Home Group was based on the proportionate synergistic benefits expected to be generated for each group resulting from enhanced market presence for existing businesses. The goodwill assigned to our Wind River Software Group represents most of the amount reflected under the All Other category in the table above. No goodwill was impaired during the first nine months of 2009 and 2008, and the accumulated impairment losses as of December27, 2008 and September26, 2009 was $713million, substantially all of which was related to our Digital Enterprise Group.

Identified Intangible Assets

Identified Intangible Assets
	9 Months Ended Sep. 26, 2009 USD / shares
Identified Intangible Assets [Abstract]
Identified Intangible Assets	Note 16: Identified Intangible Assets We classify identified intangible assets within other long-term assets on the consolidated condensed balance sheets. Identified intangible assets consisted of the following as of September26, 2009: Gross Accumulated (In Millions) Assets Amortization Net Intellectual property assets $ 1,190 $ (578 ) $ 612 Acquisition-related developed technology 166 (18 ) 148 Other intangible assets 509 (297 ) 212 Total identified intangible assets $ 1,865 $ (893 ) $ 972 Identified intangible assets consisted of the following as of December27, 2008: Gross Accumulated (In Millions) Assets Amortization Net Intellectual property assets $ 1,206 $ (582 ) $ 624 Acquisition-related developed technology 22 (8 ) 14 Other intangible assets 340 (203 ) 137 Total identified intangible assets $ 1,568 $ (793 ) $ 775 During the first nine months of 2009, we acquired intellectual property assets for $99million with a weighted average life of 6years. During the first nine months of 2009, as a result of our acquisition of Wind River, we recorded acquisition-related developed technology for $148million with a weighted average life of 4years and additions to other intangible assets of $169million. The substantial majority of other intangible assets recorded were associated with customer relationships and the Wind River trade name with a weighted average life of 7years. The remaining amount included in other intangible assets is related to acquired in-process research and development. We recorded the amortization of identified intangible assets on the consolidated condensed statements of operations as follows: intellectual property assets generally in cost of sales; acquisition-related developed technology in amortization of acquisition-related intangibles and costs; and other intangible assets as either a reduction of revenue or in amortization of acquisition-related intangibles and costs. The amortization expense was as follows: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Intellectual property assets $ 37 $ 41 $ 111 $ 122 Acquisition-related developed technology $ 11 $ 2 $ 14 $ 4 Other intangible assets $ 34 $ 25 $ 94 $ 68 Based on identified intangible assets recorded as of September26, 2009, and assuming the underlying assets will not be impaired in the future, we expect amortization expense for each period to be as follows: (In Millions) 20091 2010 2011 2012 2013 Intellectual property assets $ 37 $ 147 $ 95 $ 84 $ 67 Acquisition-related developed technology $ 15 $ 54 $ 45 $ 24 $ 10 Other intangible ass

Restructuring and Asset Impairm

Restructuring and Asset Impairment Charges
	9 Months Ended Sep. 26, 2009 USD / shares
Restructuring and Asset Impairment Charges [Abstract]
Restructuring and Asset Impairment Charges	Note 17: Restructuring and Asset Impairment Charges The following table summarizes restructuring and asset impairment charges by plan: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 2009 restructuring program $ 63 $ $ 212 $ 2006 efficiency program 34 16 459 Total restructuring and asset impairment charges $ 63 $ 34 $ 228 $ 459 We may incur additional restructuring charges in the future for employee severance and benefit arrangements, and facility-related or other exit activities. 2009 Restructuring Program In the first quarter of 2009, management approved plans to restructure some of our manufacturing and assembly and test operations. These plans include closing two assembly and test facilities in Malaysia, one facility in the Philippines, and one facility in China; stopping production at a 200mm wafer fabrication facility in Oregon; and ending production at our 200mm wafer fabrication facility in California. Restructuring and asset impairment charges were as follows: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Employee severance and benefit arrangements $ 63 $ $ 205 $ Asset impairment charges 7 Total restructuring and asset impairment charges $ 63 $ $ 212 $ The following table summarizes the restructuring and asset impairment activity for the 2009 restructuring program during the first nine months of 2009: Employee Severance and Asset (In Millions) Benefits Impairments Total Accrued restructuring balance as of December27, 2008 $ $ $ Additional accruals 208 7 215 Adjustments (3 ) (3 ) Cash payments (134 ) (134 ) Non-cash settlements (7 ) (7 ) Accrued restructuring balance as of September26, 2009 $ 71 $ $ 71 We recorded the additional accruals, net of adjustments, as restructuring and asset impairment charges. The remaining accrual as of September26, 2009 was related to severance benefits that are recorded within accrued compensation and benefits. The net charges above include $205million that relate to employee severance and benefit arrangements for approximately 6,500 employees. 2006 Efficiency Program In the third quarter of 2006, management approved several actions as part of a restructuring plan designed to improve operational efficiency and financial results. Restructuring and asset impairment charges were as follows: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Employee

Borrowings

Borrowings
	9 Months Ended Sep. 26, 2009 USD / shares
Borrowings [Abstract]
Borrowings	Note 18: Borrowings We have an ongoing authorization from our Board of Directors to borrow up to $3.0billion, including through the issuance of commercial paper. Maximum borrowings under our commercial paper program during the first nine months of 2009 were approximately $610million, although no commercial paper remained outstanding as of September26, 2009. In 2005, we issued $1.6billion of junior subordinated convertible debentures (the 2005 debentures) due in 2035. During the third quarter of 2009, we issued $2.0billion of junior subordinated convertible debentures (the 2009 debentures) due in 2039. Both the 2005 and 2009 debentures pay a fixed rate of interest semiannually. We capitalized all interest associated with these debentures during the periods presented. 2005 Debentures 2009 Debentures Coupon interest rate 2.95 % 3.25 % Effective interest rate1 6.45 % 7.20 % Maximum amount of contingent interest that will accrue per year2 0.40 % 0.50 % 1 The effective rate is based on the rate for a similar instrument that does not have a conversion feature. 2 Both the 2005 and 2009 debentures have a contingent interest component that will require us to pay interest based on certain thresholds and for certain events commencing on December15, 2010 and August1, 2019, for the 2005 and 2009 debentures, respectively, as outlined in the indentures governing the 2005 and 2009 debentures. The fair value of the related embedded derivative was $27million and $16million as of September26, 2009 for the 2005 and 2009 debentures, respectively ($36million as of December27, 2008 for the 2005 debentures). Both the 2005 and 2009 debentures are convertible, subject to certain conditions, into shares of our common stock. Holders can surrender the 2005 debentures for conversion at any time. We can settle any conversion or repurchase of the 2005 debentures in cash or stock at our option. However, we will settle any conversion or repurchase of the 2009 debentures in cash up to the face value and any amount in excess of face value will be settled in cash or stock at our option. On or after December15, 2012, we can redeem, for cash, all or part of the 2005 debentures for the principal amount, plus any accrued and unpaid interest, if the closing price of Intel common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading-day period prior to the date on which we provide notice of redemption. On or after August5, 2019, we can redeem, for cash, all or part of the 2009 debentures for the principal amount, plus any accrued and unpaid interest, if the closing price of Intel common stock has been at least 150% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading-day period prior to the date on which we provide notice of redemption. If certain events occur in the future, the indentures governing the 2005 and 2009 debentures provide that each holder of the debentures can, for a pre-defined period of time, require us to repurchase the holders debentures fo

Employee Equity Incentive Plans

Employee Equity Incentive Plans
	9 Months Ended Sep. 26, 2009 USD / shares
Employee Equity Incentive Plans [Abstract]
Employee Equity Incentive Plans	Note 19: Employee Equity Incentive Plans Our equity incentive plans are broad-based, long-term retention programs intended to attract and retain talented employees and align stockholder and employee interests. In May2009, stockholders approved an extension of the 2006 Equity Incentive Plan (the 2006 Plan). Stockholders approved 134million additional shares for issuance, increasing the total shares of common stock available for issuance as equity awards to employees and non-employee directors to 428 million shares. The approval also extended the expiration date of the 2006 Plan to June2012. The maximum shares to be awarded as non-vested shares (restricted stock) or non-vested share units (restricted stock units) were increased to 253million shares. As of September26, 2009, 207 million shares remained available for future grant under the 2006 Plan. In addition, stockholders approved an employee stock option exchange program (Option Exchange). On September28, 2009, we commenced the Option Exchange to allow employees (not listed officers) the opportunity to exchange eligible stock options for a lesser number of new stock options that have approximately the same fair value as the options surrendered. The exchange offer expired at 8 p.m. Pacific Time on October30, 2009. The number of common shares subject to outstanding options will reduce as a result of the exchange offer. However, as of the date the financial statements were issued, the impact of the Option Exchange was still being determined. The new stock options granted as part of the exchange will vest in equal annual increments over a four-year period from date of grant and expire seven years from the grant date. In the second quarter of 2009, we began issuing restricted stock units with both a market condition and a service condition (market-based restricted stock units), which were referred to in our 2009 Proxy Statement as outperformance stock units, to a small group of senior officers. In the third quarter of 2009, we issued market-based restricted stock units to our non-employee directors. The number of shares of Intel common stock to be received at vesting will range from 33% to 200% of the target amount, based on total shareholder return (TSR)on Intel common stock measured against the benchmark TSR of a peer group over a three year period. TSR is a measure of stock price appreciation plus any dividends paid in this performance period. As of September26, 2009, there were 2million market-based restricted stock units outstanding. These market-based restricted stock units accrue dividend equivalents and vest three years and one month from the grant date. In connection with our completed acquisition of Wind River, we assumed Wind Rivers equity incentive plans and issued replacement awards in the third quarter of 2009. The stock options and restricted stock units issued generally retain the terms and conditions of the respective plans under which they were originally granted. We will not grant additional shares under these plans. The 2006 Stock Purchase Plan allows eligible employees to purchase shares of our common stock at 85% of the average of the high and low pric

Common Stock Repurchases

Common Stock Repurchases
	9 Months Ended Sep. 26, 2009 USD / shares
Common Stock Repurchases [Abstract]
Common Stock Repurchases	Note 20: Common Stock Repurchases Common Stock Repurchase Program We have an ongoing authorization, amended in November2005, from our Board of Directors to repurchase up to $25billion in shares of our common stock in open market or negotiated transactions. As of September26, 2009, $5.7billion remained available for repurchase under the existing repurchase authorization. We utilized the majority of the proceeds from the issuance of the 2009 debentures to repurchase 88.2million shares at a cost of $1.7billion during the third quarter and the first nine months of 2009. We repurchased 93.4million shares at a cost of $2.1 billion during the third quarter of 2008 and 324.1million shares at a cost of $7.1billion during the first nine months of 2008. We have repurchased and retired 3.4billion shares at a cost of approximately $69billion since the program began in 1990. Our repurchases in 2009 and a portion of our repurchases in 2008 were executed in privately negotiated transactions. Restricted Stock Unit Withholdings We issue restricted stock units as part of our equity incentive plans. For the majority of restricted stock units granted, the number of shares issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. During the first nine months of 2009, we withheld 5.3 million shares (3.5million shares during the first nine months of 2008) to satisfy $81million ($78million during the first nine months of 2008) of employees tax obligations. Although shares withheld are not issued, they are treated as common stock repurchases in our financial statements, as they reduce the number of shares that would have been issued upon vesting.

Earnings Per Share

Earnings Per Share
	9 Months Ended Sep. 26, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Note 21: Earnings Per Share We computed our basic and diluted earnings per common share as follows: Three Months Ended Nine Months Ended Sept. 26, Sept. 27, Sept. 26, Sept. 27, (In Millions, Except Per Share Amounts) 2009 2008 2009 2008 Net income available to common shareholders1 $ 1,856 $ 2,014 $ 2,087 $ 5,058 Weighted average common shares outstanding basic 5,537 5,603 5,568 5,696 Dilutive effect of employee equity incentive plans 28 38 24 43 Dilutive effect of convertible debt 51 51 51 51 Weighted average common shares outstanding diluted 5,616 5,692 5,643 5,790 Basic earnings per common share $ 0.34 $ 0.36 $ 0.37 $ 0.89 Diluted earnings per common share $ 0.33 $ 0.35 $ 0.37 $ 0.87 1 Net income available to participating securities was not significant for the third quarter and first nine months of 2009. We computed our basic earnings per common share using net income available to common shareholders and the weighted average number of common shares outstanding during the period. We computed diluted earnings per common share using net income available to common shareholders and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the stock purchase plan. Potentially dilutive common shares are determined by applying the if-converted method for the 2005 debentures. However, as our 2009 debentures requires settlement of the principal amount of the debt in cash upon conversion, with the conversion premium paid in cash or stock at our option, potentially dilutive common shares is determined by applying the treasury stock method for these debentures. For further details on the specific conversion features of our 2005 and 2009 debentures, see Note 18: Borrowings. For the third quarter of 2009, we excluded 540million outstanding weighted average stock options (565million for the first nine months of 2009) from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common shares (462million for the third quarter of 2008 and 473million for the first nine months of 2008). These options could be included in the calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options. We also excluded our 2009 debentures from the calculation of diluted earnings per common share because the conversion option of these debentures was antidilutive. In the future we

Comprehensive Income

Comprehensive Income
	9 Months Ended Sep. 26, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	Note 22: Comprehensive Income The components of total comprehensive income were as follows: Three Months Ended Nine Months Ended Sept 26, Sept. 27, Sept 26, Sept. 27, (In Millions) 2009 2008 2009 2008 Net income $ 1,856 $ 2,014 $ 2,087 $ 5,058 Change in net unrealized holding gain (loss)on available-for-sale investments1 201 (166 ) 348 (351 ) Change in deferred tax asset valuation allowance2 92 143 Change in net unrealized holding gain (loss)on derivatives 93 (99 ) 124 (46 ) Change in net actuarial loss 11 Total comprehensive income $ 2,242 $ 1,749 $ 2,713 $ 4,661 1 Beginning in the second quarter of 2009, non-credit-related other-than-temporary impairment losses are included as a component of other comprehensive income. 2 Amount relates to the reversal of a portion of our deferred tax asset valuation allowance attributed to changes in unrealized holding gains on our available-for-sale equity securities. The components of accumulated other comprehensive income, net of tax, at the end of each period were as follows: Sept 26, Dec. 27, (In Millions) 2009 2008 Accumulated net unrealized holding gain (loss) on available-for-sale investments1 $ 209 $ (139 ) Accumulated net change in deferred tax asset valuation allowance 143 Accumulated net unrealized holding gain (loss)on derivatives 172 48 Accumulated net prior service costs (10 ) (10 ) Accumulated net actuarial losses (279 ) (290 ) Accumulated transition obligation (2 ) (2 ) Total accumulated other comprehensive income (loss) $ 233 $ (393 ) 1 As of September26, 2009, accumulated unrealized non-credit-related other-than-temporary impairment losses on available-for-sale debt instruments were not significant.

Taxes

Taxes
	9 Months Ended Sep. 26, 2009 USD / shares
Taxes [Abstract]
Taxes	Note 23: Taxes Provision for Taxes Our effective income tax rate was 26.7% in the third quarter of 2009 compared to 28.9% in the third quarter of 2008. The effective tax rate for the third quarter of 2009 was positively impacted by a higher percentage of our profits being derived from lower-tax jurisdictions compared to the third quarter of 2008 and the U.S RD income tax credit that was reinstated in the fourth quarter of 2008. The third quarter of 2009 effective tax rate was negatively impacted by adjustments for differences between our finalized tax return and the provision recorded, and other adjustments to tax provisions from prior years, which were partially offset by settlements and effective settlements of various uncertain tax positions. Our effective income tax rate for the first nine months of 2009 was 32.9%, compared to 30.9% for the first nine months of 2008. Based on our analysis, the European Commission (EC)fine recorded in the second quarter of 2009 is not tax deductible. For further information on the EC fine, see Note 24: Contingencies. The EC fine of $1.447billion, with no associated reduction in the provision for taxes, significantly increased our effective tax rate in the first nine months of 2009. The impact of the EC fine was partially offset by a higher percentage of our profits being derived from lower-tax jurisdictions compared to the first nine months of 2008 and the U.S. RD income tax credit that was reinstated in the fourth quarter of 2008. In addition, the effective tax rate was also positively impacted by settlements and effective settlements of various uncertain tax positions, partially offset by adjustments for differences between our finalized tax return and the provision recorded, and other adjustments to tax provisions from prior years. Unrecognized Tax Benefits Our gross unrecognized tax benefits were $377million as of September26, 2009 ($744million as of December27, 2008). The decrease in gross unrecognized tax benefits is primarily related to settlements, effective settlements, and reductions in tax positions taken during prior periods related to issues settled in U.S. federal, U.S. state, and non-U.S. tax returns. Although the timing of the resolution and/or closure on audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12months. Given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. However, we can reasonably expect a minimum reduction of approximately $200million of our existing gross unrealized tax benefits upon settlement or effective settlement with the various tax authorities, the closure of certain audits, and the lapse of statute of limitations within the next 12months.

Contingencies

Contingencies
	9 Months Ended Sep. 26, 2009 USD / shares
Contingencies [Abstract]
Contingencies	Note 24: Contingencies Legal Proceedings We are currently a party to various legal proceedings, including those noted in this section. While management presently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm the companys financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include money damages or, in matters for which injunctive relief or other conduct remedies are sought, an injunction prohibiting us from selling one or more products at all or in particular ways. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our business, results of operation, financial position, and overall trends. Except as may be otherwise indicated, the outcomes in these matters are not reasonably estimable. Advanced Micro Devices, Inc. (AMD)and AMD International Sales Service, Ltd. v. Intel Corporation and Intel Kabushiki Kaisha, and Related Consumer ClassActions and Government Investigations A number of proceedings, described below, generally challenge certain of our competitive practices, contending generally that we improperly condition price rebates and other discounts on our microprocessors on exclusive or near exclusive dealing by some of our customers. We believe that we compete lawfully and that our marketing practices benefit our customers and our stockholders, and we will continue to vigorously defend ourselves. The distractions caused by challenges to our business practices, however, are undesirable, and the legal and other costs associated with defending our position have been and continue to be significant. We assume, as should investors, that these challenges could continue for a number of years and may require the investment of substantial additional management time and substantial financial resources to explain and defend our position. While management presently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm the companys financial position, cash flows, or overall trends in results of operations, these litigation matters and the related government investigations are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include substantial money damages and, in matters in which injunctive relief or other conduct remedies are sought, an injunction or other order prohibiting us from selling one or more products at all or in particular ways. Were unfavorable final outcomes to occur, our business, results of operations, financial position, and overall trends could be materially harmed. In June2005, AMD filed a complaint in the United States District Court for the District of Delaware alleging that we and our Japanese subsidiary engaged in various actions in violation of the Sherman Act and the California Business and Professions Code, including, among other things, providing discounts and rebates to our manufacturer and distributor customers conditioned

Operating Segment Information

Operating Segment Information
	9 Months Ended Sep. 26, 2009 USD / shares
Operating Segment Information [Abstract]
Operating Segment Information	Note 25: Operating Segment Information Our operating segments in effect as of September26, 2009 include the Digital Enterprise Group, Mobility Group, NAND Solutions Group, Digital Home Group, Digital Health Group, Software and Services Group, and Wind River Software Group. Prior-period amounts have been adjusted retrospectively to reflect minor reorganizations. The Chief Operating Decision Maker (CODM)is our President and Chief Executive Officer. The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss). We report the financial results of the following operating segments: Digital Enterprise Group. Includes microprocessors and related chipsets and motherboards designed for the desktop (including high-end enthusiast PCs), nettop, and enterprise computing market segments; microprocessors and related chipsets for embedded applications; network processors; wired connectivity devices; and products for network and server storage. Mobility Group. Includes microprocessors and related chipsets designed for the notebook and netbook market segments, wireless connectivity products, and products designed for the ultra-mobile market segment, which includes various handheld devices. The NAND Solutions Group, Digital Home Group, Digital Health Group, Software and Services Group, and Wind River Software Group operating segments do not qualify as reportable segments and are included within the all other category. We have sales and marketing, manufacturing, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments, and the expenses are included in the operating results reported below. Revenue for the all other category is primarily related to the sale of NAND flash memory products, software for embedded devices by our Wind River Software Group, microprocessors and related chipsets by the Digital Home Group, and NOR flash memory products. In the second quarter of 2008, we completed the divestiture of our NOR flash memory assets to Numonyx. At that time, we entered into supply and service agreements to provide products, services, and support to Numonyx following the close of the transaction. Revenue and expenses related to the supply and service agreements are included in the all other category. For further information on Numonyx, see Note 10: Equity Method Investments. In the second quarter of 2009, we incurred charges of $1.447billion (1.06billion) as result of the fine from the EC. For further information on the EC fine, see Note 24: Contingencies. This charge was included in the all other category. Additionally, the all other category includes certain corporate-level operating expenses and charges. These expenses and charges include: amounts included within restructuring and asset impairment charges; a portion of profit-dependent compensation and other expenses not allocated to the operating segments; results of operations of seed businesses that support our initiatives; and acquisition-related costs, including amortization and any impairment o