Intel (INTC) 10-K 22 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data in Millions	12 Months Ended Dec. 26, 2009	Feb. 05, 2010	Jun. 26, 2009
Document and Company Information [Abstract]
Entity Registrant Name	Intel Corporation
Entity Central Index Key	0000050863
Document Type	10-K
Document Period End Date	2009-12-26
Amendment Flag	false
Company Fiscal Year End Date	--12-26
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			91.1
Entity Common Stock Shares Outstanding		5,524

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 26, 2009	12 Months Ended Dec. 27, 2008	12 Months Ended Dec. 29, 2007
Statements of Operations [Abstract]
Net revenue	$35,127	$37,586	$38,334
Cost of sales	15,566	16,742	18,430
Gross margin	19,561	20,844	19,904
Research and development	5,653	5,722	5,755
Marketing, general and administrative	7,931	5,452	5,401
Restructuring and asset impairment charges	231	710	516
Amortization of acquisition-related intangibles	35	6	16
Operating expenses	13,850	11,890	11,688
Operating income	5,711	8,954	8,216
Gains (losses) on equity method investments, net	(147)	(1,380)	3
Gains (losses) on other equity investments, net	(23)	(376)	154
Interest and other, net	163	488	793
Income before taxes	5,704	7,686	9,166
Provision for taxes	1,335	2,394	2,190
Net income	$4,369	$5,292	$6,976
Basic earnings per common share (in dollars per share)	0.79	0.93	1.2
Diluted earnings per common share (in dollars per share)	0.77	0.92	1.18
Weighted average common shares outstanding:
Basic (shares)	5,557	5,663	5,816
Diluted (shares)	5,645	5,748	5,936

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 26, 2009	Dec. 27, 2008
Current assets:
Cash and cash equivalents	$3,987	$3,350	[1]
Short-term investments	5,285	5,331	[1]
Trading assets	4,648	3,162	[1]
Accounts receivable, net of allowance for doubtful accounts of $19 ($17 in 2008)	2,273	1,712	[1]
Inventories	2,935	3,744	[1]
Deferred tax assets	1,216	1,390	[1]
Other current assets	813	1,182	[1]
Total current assets	21,157	19,871	[1]
Property, plant and equipment, net	17,225	17,574	[1]
Marketable equity securities	773	352	[1]
Other long-term investments	4,179	2,924	[1]
Goodwill	4,421	3,932	[1]
Other long-term assets	5,340	5,819	[1]
Total assets	53,095	50,472	[1]
Current liabilities:
Short-term debt	172	102	[1]
Accounts payable	1,883	2,390	[1]
Accrued compensation and benefits	2,448	2,015	[1]
Accrued advertising	773	807	[1]
Deferred income on shipments to distributors	593	463	[1]
Other accrued liabilities	1,636	1,901	[1]
Income taxes payable	86	140	[1]
Total current liabilities	7,591	7,818	[1]
Long-term income taxes payable	193	736	[1]
Long-term debt	2,049	1,185	[1]
Long-term deferred tax liabilities	555	46	[1]
Other long-term liabilities	1,003	1,141	[1]
Stockholders' equity:
Preferred stock, $0.001 par value, 50 shares authorized; none issued	0	0	[1]
Common stock, $0.001 par value, 10,000 shares authorized; 5,523 issued and outstanding (5,562 in 2008) and capital in excess of par value	14,993	13,402	[1]
Accumulated other comprehensive income (loss)	393	(393)	[1]
Retained earnings	26,318	26,537	[1]
Total stockholders' equity	41,704	39,546	[1]
Total liabilities and stockholders' equity	$53,095	$50,472	[1]
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 3: Accounting Changes."

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions	Dec. 26, 2009	Dec. 27, 2008
Current assets:
Accounts receivable allowance for doubtful accounts	$19	$17	[1]
Stockholders' equity:
Preferred stock, par value (in dollars per share)	0.001	0.001	[1]
Preferred stock, shares authorized	50	50	[1]
Preferred stock, shares issued	0	0	[1]
Common stock, par value (in dollars per share)	0.001	0.001	[1]
Common stock, shares authorized	10,000	10,000	[1]
Common stock, shares issued	5,523	5,562	[1]
Common stock, shares outstanding	5,523	5,562	[1]
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 3: Accounting Changes."

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 26, 2009		12 Months Ended Dec. 27, 2008		12 Months Ended Dec. 29, 2007
Statements of Cash Flows [Abstract]
Cash and cash equivalents, beginning of year	$3,350	[1]	$7,307		$6,598
Cash flows provided by (used for) operating activities:
Net income	4,369		5,292		6,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,744		4,360		4,546
Share-based compensation	889		851		952
Restructuring, asset impairment, and net loss on retirement of assets	368		795		564
Excess tax benefit from share-based payment arrangements	(9)		(30)		(118)
Amortization of intangibles and other acquisition-related costs	308		256		252
(Gains) losses on equity method investments, net	147		1,380		(3)
(Gains) losses on other equity investments, net	23		376		(154)
(Gains) losses on divestitures	0		(59)		(21)
Deferred taxes	271		(790)		(443)
Changes in assets and liabilities:
Trading assets	299		193		(1,429)
Accounts receivable	(535)		260		316
Inventories	796		(395)		700
Accounts payable	(506)		29		102
Accrued compensation and benefits	247		(569)		354
Income taxes payable and receivable	110		(834)		(248)
Other assets and liabilities	(351)		(189)		279
Total adjustments	6,801		5,634		5,649
Net cash provided by operating activities	11,170		10,926		12,625
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment	(4,515)		(5,197)		(5,000)
Acquisitions, net of cash acquired	(853)		(16)		(76)
Purchases of available-for-sale investments	(8,655)		(6,479)		(11,728)
Maturities and sales of available-for-sale investments	7,756		7,993		8,011
Purchases of trading assets	(4,186)		(2,676)		0
Maturities and sales of trading assets	2,543		1,766		0
Loans receivable	(343)		0		0
Investments in non-marketable equity investments	(250)		(1,691)		(1,459)
Return of equity method investment	449		316		0
Proceeds from divestitures	0		85		32
Other investing activities	89		34		294
Net cash used for investing activities	(7,965)		(5,865)		(9,926)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net	(87)		(40)		(39)
Proceeds from government grants	0		182		160
Excess tax benefit from share-based payment arrangements	9		30		118
Issuance of long-term debt	1,980		0		125
Proceeds from sales of shares through employee equity incentive plans	400		1,105		3,052
Repurchase and retirement of common stock	(1,762)		(7,195)		(2,788)
Payment of dividends to stockholders	(3,108)		(3,100)		(2,618)
Net cash used for financing activities	(2,568)		(9,018)		(1,990)
Net increase (decrease) in cash and cash equivalents	637		(3,957)		709
Cash and cash equivalents, end of year	3,987		3,350	[1]	7,307
Cash paid during the year for:
Interest, net of amounts capitalized of $86 in 2009 ($86 in 2008 and $57 in 2007)	4		6		15
Income taxes, net of refunds	$943		$4,007		$2,762
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 3: Accounting Changes."

1_Consolidated Statements of Ca

Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 26, 2009	12 Months Ended Dec. 27, 2008	12 Months Ended Dec. 29, 2007
Cash paid during the year for:
Interest amounts capitalized	$86	$86	$57

Consolidated Statements of Stoc

Consolidated Statements of Stockholders Equity (USD $)
In Millions	Previously Reported	Previously Reported Common Stock and Capital in Excess of Par Value	Previously Reported Accumulated Other Comprehensive Income (Loss)	Previously Reported Retained Earnings	Common Stock and Capital in Excess of Par Value		Accumulated Other Comprehensive Income (Loss)	Retained Earnings		Total
Beginning Balance, shares at Dec. 31, 2005		5,766
Beginning Balance at Dec. 31, 2005	$36,752	$7,825	($57)	$28,984			($57)	$28,984
Cumulative-effect adjustments, net of tax:
Adoption of convertible debt accounting standards					458	[2]				458	[2]
Components of comprehensive income, net of tax:
Ending Balance at Dec. 30, 2006	36,752	7,825	(57)	28,984	8,283		(57)	28,984		37,210
Ending Balance, shares at Dec. 30, 2006		5,766			5,766
Cumulative-effect adjustments, net of tax:
Adoption of sabbatical leave accounting standards								(181)	[2]	(181)	[2]
Adoption of uncertain tax positions accounting standards								181	[2]	181	[2]
Components of comprehensive income, net of tax:
Net income								6,976		6,976
Other comprehensive income (loss)							318			318
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other					3,170					3,170
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other, shares					165
Share-based compensation					952					952
Repurchase and retirement of common stock					(294)			(2,494)		(2,788)
Repurchase and retirement of common stock, shares					(113)
Cash dividends declared								(2,618)		(2,618)
Ending Balance at Dec. 29, 2007					12,111		261	30,848		43,220
Ending Balance, shares at Dec. 29, 2007					5,818
Components of comprehensive income, net of tax:
Net income								5,292		5,292
Other comprehensive income (loss)							(654)			(654)
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other					1,132					1,132
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other, shares					72
Share-based compensation					851					851
Repurchase and retirement of common stock					(692)			(6,503)		(7,195)
Repurchase and retirement of common stock, shares					(328)
Cash dividends declared								(3,100)		(3,100)
Ending Balance at Dec. 27, 2008					13,402		(393)	26,537		39,546	[1]
Ending Balance, shares at Dec. 27, 2008					5,562					5,562	[1]
Components of comprehensive income, net of tax:
Net income								4,369		4,369
Other comprehensive income (loss)							786			786
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other					381					381
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit/tax deficiency, and other, shares					55
Issuance of convertible debt					603					603
Share-based compensation					889					889
Repurchase and retirement of common stock					(282)			(1,480)		(1,762)
Repurchase and retirement of common stock, shares					(94)
Cash dividends declared								(3,108)		(3,108)
Ending Balance at Dec. 26, 2009					$14,993		$393	$26,318		$41,704
Ending Balance, shares at Dec. 26, 2009					5,523					5,523
[1]As adjusted due to changes to the accounting for convertible debt instruments. See "Note 3: Accounting Changes."
[2]For further discussion of the cumulative-effect adjustments, see "Note 3: Accounting Changes."

2_Consolidated Statements of St

Consolidated Statements of Stockholders Equity (Parenthetical) (USD $)
	Retained Earnings	Total
Cash dividends declared per common share	0.45	0.45
Cash dividends declared per common share	0.5475	0.5475
Cash dividends declared per common share	0.56	0.56

Basis of Presentation

Basis of Presentation
	12 Months Ended Dec. 26, 2009 USD / shares
Basis of Presentation [Abstract]
Basis of Presentation	Note 1: Basis of Presentation We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal years 2009, 2008, and 2007 were all 52-week years. Our consolidated financial statements include the accounts of Intel Corporation and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated. We use the equity method to account for equity investments in instances in which we own common stock or similar interests, and have the ability to exercise significant influence, but not control, over the investee. The U.S. dollar is the functional currency for Intel and our subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income (loss). Customer credit balances are included in other accrued liabilities and were $293 million as of December 26, 2009 ($447 million as of December 27, 2008). We have evaluated subsequent events through the date that the financial statements were issued on February 22, 2010.

Accounting Policies

Accounting Policies
	12 Months Ended Dec. 26, 2009 USD / shares
Accounting Policies [Abstract]
Accounting Policies	Note 2: Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and judgments that affect the amounts reported in our consolidated financial statements and the accompanying notes. 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 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 actual results that we experience may differ materially from our estimates. Trading Assets Marketable debt instruments are designated as trading assets when the interest rate or foreign exchange rate risk is hedged at inception with a related derivative instrument. Investments designated as trading assets are reported at fair value. The gains or losses of these investments arising from changes in fair value due to interest rate and currency market fluctuations and credit market volatility, offset by losses or gains on the related derivative instruments, are recorded in interest and other, net. We also designate certain floating-rate securitized financial instruments, primarily asset-backed securities purchased after December 30, 2006, as trading assets. During 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. Gains or losses from changes in fair value of these equity securities were offset against losses or gains on the related liabilities and included in interest and other, net. See Note 8: Derivative Financial Instruments for further information on our equity market risk management programs. Available-for-Sale Investments We consider all liquid available-for-sale debt instruments with original maturities from the date of purchase of approximately three months or less to be cash and cash equivalents. Available-for-sale debt instruments with original maturities at the date of purchase greater than approximately three months and remaining maturities of less than one year are classified as short-term investments. Available-for-sale debt instruments with remaining maturities beyond one year are classified as other long-term investments. Investments that we designate as available-for-sale are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss), except as noted in the Other-Than-Temporary Impairment section below. We determine the cost of the investment sold based on the specific identification method. Our available-for-sale investments include: Marketable debt instruments when the interest rate and foreign currency risks are not hedged at inception of the investmen

Accounting Changes

Accounting Changes
	12 Months Ended Dec. 26, 2009 USD / shares
Accounting Changes [Abstract]
Accounting Changes	Note 3: Accounting Changes 2007 In 2007, we adopted standards that required companies to accrue the cost of compensated absences for sabbatical leave over the service period. We adopted these standards through a cumulative-effect adjustment at the beginning of 2007, resulting in an additional liability of $280 million, additional deferred tax assets of $99 million, and a reduction to retained earnings of $181 million. We also adopted standards that changed the accounting for uncertain tax positions. For further discussion, see Note 27: Taxes. 2008 In the first quarter of 2008, we adopted new standards for fair value measurements for all financial assets and liabilities recognized or disclosed at fair value in the consolidated financial statements on a recurring basis (at least annually). The standards defined fair value, established a framework for measuring fair value, and enhanced fair value measurement disclosures. The adoption of these new standards did not have a significant impact on our consolidated financial statements, and the resulting fair values calculated after adoption were not significantly different from the fair values that would have been calculated under previous guidance. As discussed below, we adopted the fair value measurement standards for our non-financial assets and liabilities in the first quarter of 2009. For further discussion of our fair value measurements, see Note 5: Fair Value. In the fourth quarter of 2008, we adopted new standards that clarified the application of fair value in a market that is not active, and addressed application issues such as the use of internal assumptions when relevant observable data does not exist, the use of observable market information when the market is not active, and the use of market quotes when assessing the relevance of observable and unobservable data. The adoption of these new standards did not have a significant impact on our consolidated financial statements or the fair values of our financial assets and liabilities. In the first quarter of 2008, we adopted new standards that permitted companies to choose to measure certain financial instruments and other items at fair value using an instrument-by-instrument election. The new standards required unrealized gains and losses to be reported in earnings for items measured using the fair value option. For further discussion, see Note 5: Fair Value. These new standards also required cash flows from purchases, sales, and maturities of trading securities to be classified based on the nature and purpose for which the securities were acquired. We assessed the nature and purpose of our trading assets and determined that our marketable debt instruments will be classified on the statement of cash flows as investing activities, as they are held with the purpose of generating returns. Activity related to equity securities offsetting deferred compensation remained classified as operating activities, as they were maintained to offset changes in liabilities related to the equity market risk of certain deferred compensation arrangements. These standards did not allow for retrospective application to

Recent Accounting Standards

Recent Accounting Standards
	12 Months Ended Dec. 26, 2009 USD / shares
Recent Accounting Standards [Abstract]
Recent Accounting Standards	Note 4: Recent Accounting Standards In June 2009, the Financial Accounting Standards Board (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 de-recognizing financial assets; and require enhanced disclosure. These new standards are effective for us beginning in the first quarter of 2010, and are not expected to have a significant impact on our consolidated financial statements. In June 2009, 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 2010 and are not expected to have a significant impact on our consolidated financial statements. In October 2009, 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 longer permitting the residual method of allocating arrangement consideration. These new standards are required to be adopted in the first quarter of 2011; however, early adoption is permitted. We do not expect these new standards to significantly impact our consolidated financial statements. In October 2009, the FASB issued new standards for the accounting for certain revenue arrangements that include software elements. These new standards amend the scope of pre-existing software revenue guidance by removing from the guidance non-software components of tangible products and certain software components of tangible products. These new standards are required to be adopted in the first quarter of 2011; however, early adoption is permitted. We do not expect these new standards to significantly impact our consolidated financial statements. In January 2010, the FASB issued amended standards that require additional fair value disclosures. These amended standards require disclosures about inputs and valuation techniques used to measure fair value as well as disclosures about significant transfers, beginning in the first quarter of 2010. Additionally, these amended standards require presentation of disaggregated activity within the reconciliation for fair value measurements using significant unobservable inputs (Level 3), beginning in the first quarter of 2011. We do not expect these new standards to significantly impact o

Fair Value

Fair Value
	12 Months Ended Dec. 26, 2009 USD / shares
Fair Value [Abstract]
Fair Value	Note 5: 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. Our financial instruments are measured and recorded at fair value, except for equity method investments, cost method investments, cost method loans receivable, and most of our liabilities. 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 restrictions. Level 3.Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. Level 3 inputs also include non-binding market consensus prices or non-binding broker quotes that we were unable to corroborate with observable market data. Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis Assets and liabilities measured and recorded at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of December 26, 2009 and December 27, 2008: December 26, 2009 December 27, 2008 Fair Value Measured and Recorded at Fair Value Measured and Recorded at Reporting Date Using Reporting Date Using (In Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Commercial paper $ $ 6,326 $ $ 6,326 $ $ 4,387 $ $ 4,387 Corporate bonds 579 3,894 369 4,842 152 5,987 555 6,694 Government bonds1 17 3,549 3,566 604 604 Bank time deposits 1,582 1,582 633 633 Marketable equity securities 676 97 773 308 44

Trading Assets

Trading Assets
	12 Months Ended Dec. 26, 2009 USD / shares
Trading Assets [Abstract]
Trading Assets	Note 6: Trading Assets Trading assets outstanding as of December 26, 2009 and December 27, 2008 were as follows: 2009 2008 Net Net Unrealized Unrealized (In Millions) Gains (Losses) Fair Value Gains (Losses) Fair Value Marketable debt instruments $ 47 $ 4,648 $ (96 ) $ 2,863 Equity securities offsetting deferred compensation (41 ) 299 Total trading assets $ 47 $ 4,648 $ (137 ) $ 3,162 During 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 $511 million as of December 26, 2009 ($332 million as of December 27, 2008) and are included in other accrued liabilities. See Note 8: Derivative Financial Instruments for further information on our equity market risk management programs. Net losses on equity securities offsetting deferred compensation arrangements still held at the reporting date were $209 million in 2008 (gains of $28 million in 2007). Net gains on marketable debt instruments that we classified as trading assets held at the reporting date were $91 million in 2009 (losses of $132 million in 2008 and gains of $19 million in 2007). Net gains on the related derivatives were $18 million in 2009 (losses of $5 million in 2008 and $37 million in 2007).

Available-for-Sale Investments

Available-for-Sale Investments
	12 Months Ended Dec. 26, 2009 USD / shares
Available-for-Sale Investments [Abstract]
Available-for-Sale Investments	Note 7: Available-for-Sale Investments Available-for-sale investments as of December 26, 2009 and December 27, 2008 were as follows: 2009 2008 Gross Gross Gross Gross Adjusted Unrealized Unrealized Adjusted Unrealized Unrealized (In Millions) Cost Gains Losses1 Fair Value Cost Gains Losses Fair Value Commercial paper $ 5,444 $ $ $ 5,444 $ 3,244 $ 4 $ $ 3,248 Corporate bonds 3,688 38 (14 ) 3,712 6,323 5 (139 ) 6,189 Government bonds2 2,205 11 (1 ) 2,215 546 2 548 Bank time deposits3 1,317 1 1,318 606 2 608 Marketable equity securities 387 386 773 393 2 (43 ) 352 Asset-backed securities 154 (18 ) 136 374 (43 ) 331 Money market fund deposits 65 65 419 419 Total available-for-sale investments $ 13,260 $ 436 $ (33 ) $ 13,663 $ 11,905 $ 15 $ (225 ) $ 11,695 1 As of December 26, 2009, unrealized non-credit components of other-than-temporary impairments recognized on available-for-sale investments were insignificant. 2 Includes bonds issued or deemed to be guaranteed by non-U.S. governments, FDIC-insured corporate bonds, U.S. agency securities, and U.S. Treasury securities. 3 Bank time deposits were primarily issued by institutions outside the U.S. as of December 26, 2009 and December 27, 2008. As of December 26, 2009, we had $33 million of gross unrealized losses on available-for-sale investments, which included $26 million of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or more. The available-for-sale investments that were in an unrealized loss position as of December 27, 2008, aggregated by the length of time that individual securities had been in a continuous loss position, were as follows: 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

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 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 hold derivative instruments for the purpose of managing credit risk since we limit the amount of credit exposure to any one counterparty and generally enter into derivative transactions with high-credit-quality counterparties. For further discussion, see Note 9: Concentrations of Credit Risk. 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. Substantially all of our revenue and a majority of our 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 Japanese yen, the euro, and the Israeli shekel. 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 12 months. 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) 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 statements of operations as the impact of the hedged transaction. Currency derivatives without hedge accounting designation that utilize currency forward contracts, currency options, or currency interest rate swaps to economically hedge the functional currency equivalent cash flows of recognized monetary assets and liabilities and non-U.S.-dollar-denominated debt instruments classified as trading assets. The maturity of these instruments generally occurs within 12 months, except for derivatives associated with certain long-term equity-related investments and our loans receivable that generally mature within five years. Changes in the U.S.-dollar-equivalent cash flows of the underlying assets and liabilities are approximately offset by the changes in fair values of the related derivatives. We record net gains or losses in the line item on the consolidated statements of operations most closely associated with the economic underlying, primarily in interest and other, net, except for equity-rel

Concentrations of Credit Risk

Concentrations of Credit Risk
	12 Months Ended Dec. 26, 2009 USD / shares
Concentrations of Credit Risk [Abstract]
Concentrations of Credit Risk	Note 9: Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of investments in debt instruments, derivative financial instruments, loans receivable, and trade receivables. We also 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. We generally place investments 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. Substantially all of our investments in debt instruments are with A/A2 or better rated issuers, and a substantial majority of the issuers are rated AA-/Aa3 or better. Our investment policy requires substantially all investments with original maturities at the time of investment of up to six months to be rated at least A-1/P-1 by Standard Poors/Moodys, and specifies a higher minimum rating for investments with longer maturities. For instance, investments with maturities of greater than three years require a minimum rating of AA-/Aa3 at the time of investment. Government regulations imposed on investment alternatives of our non-U.S. subsidiaries, or the absence of A rated counterparties in certain countries, result in some minor exceptions. Credit-rating criteria for derivative instruments are similar to those for other investments. 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. As of December 26, 2009, the total credit exposure to any single counterparty did not exceed $500 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 (OEMs) and original design manufacturers. We also have accounts receivable derived from sales to industrial and retail distributors. Our two largest customers accounted for 38% of net revenue for 2009 and 2008, and 35% of net revenue for 2007. Additionally, these two largest customers accounted for 41% of our accounts receivable as of December 26, 2009 and December 27, 2008. 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 some form of

Other Long-Term Assets

Other Long-Term Assets
	12 Months Ended Dec. 26, 2009 USD / shares
Other Long-Term Assets [Abstract]
Other Long-Term Assets	Note 10: Other Long-Term Assets Other long-term assets as of December 26, 2009 and December 27, 2008 were as follows: (In Millions) 2009 2008 Non-marketable equity method investments $ 2,472 $ 3,032 Non-marketable cost method investments 939 1,021 Identified intangible assets 883 775 Non-current deferred tax assets1 278 511 Loans receivable 249 Other 519 480 Total other long-term assets $ 5,340 $ 5,819 1 December 27, 2008 balance is as adjusted due to changes to the accounting for convertible debt instruments. See Note 3: Accounting Changes.

Non-Marketable Equity Investmen

Non-Marketable Equity Investments
	12 Months Ended Dec. 26, 2009 USD / shares
Non-Marketable Equity Investments [Abstract]
Non-Marketable Equity Investments	Note 11: Non-Marketable Equity Investments Equity Method Investments Equity method investments as of December 26, 2009 and December 27, 2008 were as follows: 2009 2008 Carrying Ownership Carrying Ownership (In Millions, Except Percentages) Value Percentage Value Percentage IMFT/IMFS $ 1,622 49 % $ 2,071 49 % Numonyx B.V. 453 45 % 484 45 % Clearwire Communications, LLC 261 7 % 238 8 % Other equity method investments 136 239 Total $ 2,472 $ 3,032 Summarized Financial Information of Equity Method Investees The following is the aggregated summarized financial information of our equity method investees, which includes summary results of operations information for 2009, 2008, and 2007 and summary balance sheet information as of December 26, 2009 and December 27, 2008: (In Millions) 2009 2008 2007 Operating results: Net revenue $ 3,307 $ 3,456 $ 1,484 Gross margin $ 305 $ 444 $ 67 Operating income (loss) $ (1,216 ) $ (702 ) $ (490 ) Net income (loss) $ (1,302 ) $ (932 ) $ (674 ) Dec. 26, Dec. 27, (In Millions) 2009 2008 Balance sheet: Current assets $ 3,835 $ 3,257 Non-current assets $ 11,174 $ 7,322 Current liabilities $ 1,048 $ 1,316 Non-current liabilities $ 2,690 $ 2,469 Redeemable preferred stock $ 16 $ 50 Non-controlling interests $ 7 $ 10 Summarized financial information for our equity method investees is presented on the basis of up to a one-quarter lag and is included for the periods in which we held an equity method ownership interest. IMFT/IMFS Micron and Intel formed IM Flash Technologies, LLC (IMFT) in January 2006 and IM Flash Singapore, LLP (IMFS) in February 2007. 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. IMFT and IMFS are each governed by a Board of Managers, with Micron and Intel initially appointing an equal number of managers to each of the boards. The number of managers appointed by each party adjusts depending on the parties ownership interests. These ventures will operate until 2016 but are subject to prior termination under certain terms and conditions. These joint ventu

Gains

Gains (Losses) on Equity Method Investments, Net
	12 Months Ended Dec. 26, 2009 USD / shares
Gains (Losses) on Equity Method Investments, Net [Abstract]
Gains (Losses) on Equity Method Investments, Net	Note 12: Gains (Losses) on Equity Method Investments, Net Gains (losses) on equity method investments, net included: (In Millions) 2009 2008 2007 Equity method losses, net $ (131 ) $ (316 ) $ (103 ) Impairment charges (42 ) (1,077 ) (28 ) Other, net 26 13 134 Total gains (losses) on equity method investments, net $ (147 ) $ (1,380 ) $ 3

3_Gains

Gains (Losses) on Other Equity Investments, Net
	12 Months Ended Dec. 26, 2009 USD / shares
Gains (Losses) on Other Equity Investments, Net [Abstract]
Gains (Losses) on Other Equity Investments, Net	Note 13: Gains (Losses) on Other Equity Investments, Net Gains (losses) on other equity investments, net included: (In Millions) 2009 2008 2007 Impairment charges $ (179 ) $ (455 ) $ (92 ) Gains on sales, net 55 60 204 Other, net 101 19 42 Total gains (losses) on other equity investments, net $ (23 ) $ (376 ) $ 154

Interest and Other, Net

Interest and Other, Net
	12 Months Ended Dec. 26, 2009 USD / shares
Interest and Other, Net [Abstract]
Interest and Other, Net	Note 14: Interest and Other, Net The components of interest and other, net were as follows: (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

Acquisitions

Acquisitions
	12 Months Ended Dec. 26, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	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: (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 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.

Divestitures

Divestitures
	12 Months Ended Dec. 26, 2009 USD / shares
Divestitures [Abstract]
Divestitures	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. During the second quarter of 2008, we completed the divestiture of our NOR flash memory business. We exchanged certain NOR flash memory assets and certain assets associated with our phase change memory initiatives with Numonyx for a note receivable with a contractual amount of $144 million and a 45.1% ownership interest in the form of common stock, together valued at $821 million. We retain certain rights to intellectual property included within the divestiture. Approximately 2,500 employees of our NOR flash memory business became employees of Numonyx. STMicroelectronics contributed certain assets to Numonyx for a note receivable with a contractual amount of $156 million and a 48.6% ownership interest in the form of common stock. Francisco Partners paid $150 million in cash in exchange for the remaining 6.3% ownership interest in the form of preferred stock and a note receivable with a contractual amount of $20 million. In addition, they received a payout right that is preferential relative to the investments of Intel and STMicroelectronics. We did not incur a gain or loss upon completion of the transaction in the second quarter of 2008, as we had recorded asset impairment charges in quarters prior to deal closure. For further discussion, see Note 19: Restructuring and Asset Impairment Charges. Subsequent to the divestiture, in the third quarter of 2008 we recorded a $250 million impairment charge on our investment in Numonyx within gains (losses) on equity method investments. In February 2010, we signed a definitive agreement with Micron and Numonyx under which Micron agreed to acquire Numonyx in an all-stock transaction. For further information, see Note11: Non-Marketable Equity Investments.

Goodwill

Goodwill
	12 Months Ended Dec. 26, 2009 USD / shares
Goodwill [Abstract]
Goodwill	Note 17: Goodwill At the end of 2009, we reorganized our business to better align our major product groups around the core competencies of Intel architecture and our manufacturing operations. See Note 29: Operating Segment and Geographic Information for further discussion. Due to this reorganization, goodwill was allocated from our prior operating segments to our new operating segments, as shown below under Transfers. The allocation was based on the fair value of each business group within its original operating segment relative to the fair value of that operating segment. Goodwill activity for the years ended December 26, 2009 and December 27, 2008 was as follows: Other Intel Digital Architecture Other Enterprise Mobility PC Client Data Center Operating Operating (In Millions) Group Group Group Group Segments Segments Total Goodwill, net December 29, 2007 $ 3,385 $ 248 $ $ $ $ 283 $ 3,916 Additions due to business combinations 9 9 18 Transfers 123 (123 ) Other (2 ) (2 ) December 27, 2008 $ 3,515 $ 248 $ $ $ $ 169 $ 3,932 Additions due to business combinations 192 142 155 489 Transfers (3,707 ) (390 ) 2,220 1,459 507 (89 ) December 26, 2009 $ $ $ 2,220 $ 1,459 $ 507 $ 235 $ 4,421 During 2009, prior to our reorganization, we completed two acquisitions, including the acquisition of Wind River Systems (see Note 15: Acquisitions for further discussion). Goodwill recognized from the Wind River Systems 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 of goodwill to our Digital Enterprise Group, our Mobility Group, and our Digital Home Group was based on the proportionate benefits expected to be generated for each group resulting from enhanced market presence for existing busine

Identified Intangible Assets

Identified Intangible Assets
	12 Months Ended Dec. 26, 2009 USD / shares
Identified Intangible Assets [Abstract]
Identified Intangible Assets	Note 18: Identified Intangible Assets We classify identified intangible assets within other long-term assets on the consolidated balance sheets. Identified intangible assets consisted of the following as of December 26, 2009: Accumulated (In Millions) Gross Assets Amortization Net Intellectual property assets $ 1,190 $ (616 ) $ 574 Acquisition-related developed technology 166 (34 ) 132 Other intangible assets 509 (332 ) 177 Total identified intangible assets $ 1,865 $ (982 ) $ 883 During 2009, we acquired intellectual property assets for $99 million with a weighted average life of six years. During 2009, as a result of our acquisition of Wind River Systems, we recorded acquisition-related developed technology for $148 million with a weighted average life of four years, and additions to other intangible assets of $169 million with a weighted average life of seven years. The substantial majority of other intangible assets recorded were associated with customer relationships and the Wind River Systems trade name. The remaining amount of other intangible assets was related to acquired in-process research and development. Identified intangible assets consisted of the following as of December 27, 2008: Accumulated (In Millions) Gross 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 2008, we acquired intellectual property assets for $68 million with a weighted average life of 10 years. We recorded the amortization of identified intangible assets on the consolidated statements of operations as cost of sales, amortization of acquisition-related intangibles, or a reduction of revenue. Amortization expenses for the three years ended December 26, 2009 were as follows: (In Millions) 2009 2008 2007 Intellectual property assets $ 149 $ 164 $ 159 Acquisition-related developed technology $ 30 $ 5 $ 1 Other intangible assets $ 129 $ 87 $ 92 Based on identified intangible assets recorded as of December 26, 2009, and assuming that the underlying assets will not be impaired in the future, we expect amortization expenses for each period to be as follows: (In Millions) 2010 2011 2012 2013 2014 Intellectual property assets $ 147 $ 95 $ 84

Restructuring and Asset Impairm

Restructuring and Asset Impairment Charges
	12 Months Ended Dec. 26, 2009 USD / shares
Restructuring and Asset Impairment Charges [Abstract]
Restructuring and Asset Impairment Charges	Note 19: Restructuring and Asset Impairment Charges The following table summarizes restructuring and asset impairment charges by plan for the three years ended December 26, 2009: (In Millions) 2009 2008 2007 2009 restructuring program $ 215 $ $ 2008 NAND plan 215 2006 efficiency program 16 495 516 Total restructuring and asset impairment charges $ 231 $ 710 $ 516 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 included 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. We do not expect significant future charges related to the 2009 plan. The following table summarizes charges for the 2009 restructuring plan during 2009: (In Millions) 2009 Employee severance and benefit arrangements $ 208 Asset impairments 7 Total restructuring and asset impairment charges $ 215 The following table summarizes the restructuring and asset impairment activity for the 2009 restructuring plan during 2009: Employee Severance Asset (In Millions) and Benefits Impairments Total Accrued restructuring balance as of December 27, 2008 $ $ $ Additional accruals 223 7 230 Adjustments (15 ) (15 ) Cash payments (182 ) (182 ) Non-cash settlements (7 ) (7 ) Accrued restructuring balance as of December 26, 2009 $ 26 $ $ 26 We recorded the additional accruals, net of adjustments, as restructuring and asset impairment charges. The remaining accrual as of December 26, 2009 was related to severance benefits that are recorded within accrued compensation and benefits. The charges above include $208 million related to employee severance and benefit arrangements for 6,500 employees. 2008 NAND Plan In the fourth quarter of 2008, management approved a plan with Micron to discontinue the supply of NAND flash memory from the 200mm facility within the IMFT manufacturing network. The agreement resulted in a $215 million restructuring charge, primarily related to the IMFT 200mm supply agreement. The restructuring charge resulted in a reduction of our investment in IMFT/IMFS of $184 million, a cash payment to Micron of $24 million, and other cash payments of $7 million. The 2008 NAND plan was completed at the end of 2008. 2006 Efficiency Progr

Borrowings

Borrowings
	12 Months Ended Dec. 26, 2009 USD / shares
Borrowings [Abstract]
Borrowings	Note 20: Borrowings Short-Term Debt Short-term debt included the current portion of long-term debt of $157 million and drafts payable of $15 million as of December 26, 2009 (drafts payable of $100 million and the current portion of long-term debt of $2 million as of December 27, 2008). We have an ongoing authorization from our Board of Directors to borrow up to $3.0 billion, including through the issuance of commercial paper. Maximum borrowings under our commercial paper program during 2009 were $610 million. We did not have outstanding commercial paper as of December 26, 2009 and December 27, 2008. Maximum borrowings under our commercial paper program during 2008 were $1.3 billion. Our commercial paper was rated A-1+ by Standard Poors and P-1 by Moodys as of December 26, 2009. Long-Term Debt Our long-term debt as of December 26, 2009 and December 27, 2008 was as follows: (In Millions) 2009 20081 2009 junior subordinated convertible debentures due 2039 at 3.25% $ 1,030 $ 2005 junior subordinated convertible debentures due 2035 at 2.95% 896 886 2005 Arizona bonds due 2035 at 4.375% 157 158 2007 Arizona bonds due 2037 at 5.3% 123 122 Other debt 21 2,206 1,187 Less: current portion of long-term debt (157 ) (2 ) Total long-term debt $ 2,049 $ 1,185 1 As adjusted due to changes to the accounting for convertible debt instruments. See Note 3: Accounting Changes. Convertible Debentures In 2005, we issued $1.6 billion of junior subordinated convertible debentures (the 2005 debentures) due in 2035. In 2009, we issued $2.0 billion 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 December 15, 2010 and August 1, 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 $24 million and $15 million as of December 26, 2009 for the 2005 and 2009 debentures, respectively ($36 million as of December 27, 2008 for the 2005 debentures). Both the 2005 and 2009 debentures are convertible, subject to certa

Retirement Benefit Plans

Retirement Benefit Plans
	12 Months Ended Dec. 26, 2009 USD / shares
Retirement Benefit Plans [Abstract]
Retirement Benefit Plans	Note 21: Retirement Benefit Plans Profit Sharing Plans We provide tax-qualified profit sharing retirement plans for the benefit of eligible employees, former employees, and retirees in the U.S. and certain other countries. The plans, which are funded by annual discretionary contributions by Intel, are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis. Our Chief Executive Officer (CEO) determines the amounts to be contributed to the U.S. Profit Sharing Plan under delegation of authority from our Board of Directors, pursuant to the terms of the Profit Sharing Plan. As of December 26, 2009, 51% of our U.S. Profit Sharing Fund was invested in equities, and 49% was invested in fixed-income instruments. Most assets are managed by external investment managers. For the benefit of eligible U.S. employees, we also provide a non-tax-qualified supplemental deferred compensation plan for certain highly compensated employees. This plan is designed to permit certain discretionary employer contributions and to permit employee deferral of a portion of compensation in excess of certain tax limits. This plan is unfunded. We expensed $260 million for the qualified and non-qualified U.S. profit sharing retirement plans in 2009 ($289 million in 2008 and $302 million in 2007). In the first quarter of 2010, we funded $265 million for the 2009 contribution to the qualified U.S. Profit Sharing Plan. Pension and Postretirement Benefit Plans U.S. Pension Benefits. We provide a tax-qualified defined-benefit pension plan for the benefit of eligible employees, former employees, and retirees in the U.S. The plan provides for a minimum pension benefit that is determined by a participants years of service and final average compensation (taking into account the participants social security wage base), reduced by the participants balance in the U.S. Profit Sharing Plan. If we do not continue to contribute to, or significantly reduce contributions to, the U.S. Profit Sharing Plan, the projected benefit obligation of the U.S. defined-benefit plan could increase significantly. Non-U.S. Pension Benefits. We also provide defined-benefit pension plans in certain other countries. Consistent with the requirements of local law, we deposit funds for certain plans with insurance companies, with third-party trustees, or into government-managed accounts, and/or accrue for the unfunded portion of the obligation. The assumptions used in calculating the obligation for the non-U.S. plans depend on the local economic environment. Postretirement Medical Benefits.Upon retirement, eligible U.S. employees are credited with a defined dollar amount based on years of service. These credits can be used to pay all or a portion of the cost to purchase coverage in an Intel-sponsored medical plan. If the available credits are not sufficient to pay the entire cost of the coverage, the remaining cost is the responsibility of the retiree. Funding Policy.Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements of U.S. federal laws and regulations or applic

Commitments

Commitments
	12 Months Ended Dec. 26, 2009 USD / shares
Commitments [Abstract]
Commitments	Note 22: Commitments A portion of our capital equipment and certain facilities are under operating leases that expire at various dates through 2028. Additionally, portions of our land are under leases that expire at various dates through 2062. Rental expense was $120 million in 2009 ($141 million in 2008 and $154 million in 2007). Minimum rental commitments under all non-cancelable leases with an initial term in excess of one year were as follows as of December 26, 2009 (in millions): Year Payable 2010 $ 102 2011 83 2012 66 2013 40 2014 20 2015 and thereafter 38 Total $ 349 Commitments for construction or purchase of property, plant and equipment totaled $1.8 billion as of December 26, 2009 ($2.9 billion as of December 27, 2008), substantially all of which will be due within the next year. Other purchase obligations and commitments totaled approximately $900 million as of December 26, 2009 ($1.2 billion as of December 27, 2008). Other purchase obligations and commitments include payments due under various types of licenses, agreements to purchase raw materials or other goods, and payments due under non-contingent funding obligations. Funding obligations include, for example, agreements to fund various projects with other companies. In addition, we have various contractual commitments with Micron and IMFT/IMFS. For further information on these contractual commitments, see Note11: Non-Marketable Equity Investments.

Employee Equity Incentive Plans

Employee Equity Incentive Plans
	12 Months Ended Dec. 26, 2009 USD / shares
Employee Equity Incentive Plans [Abstract]
Employee Equity Incentive Plans	Note 23: 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 May 2009, stockholders approved an extension of the 2006 Equity Incentive Plan (the 2006 Plan). Stockholders approved 134 million 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 June 2012. The maximum number of shares to be awarded as non-vested shares (restricted stock) or non-vested share units (restricted stock units) increased to 253 million shares. As of December 26, 2009, 226 million shares remained available for future grant under the 2006 Plan. We may assume the equity incentive plans and the outstanding equity awards of certain acquired companies. Once they are assumed, we do not grant additional shares under these plans. Also in May 2009, stockholders approved an employee stock option exchange program (Option Exchange) to give 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, as of the date of the exchange. The Option Exchange commenced on September 28, 2009 and expired on October 30, 2009. Eligible options included stock options granted under any Intel stock option or equity incentive plan between October 1, 2000 and September 28, 2008 that had an exercise price above $20.83, which was the 52-week closing-price high as of October 30, 2009. A total of 217 million eligible stock options were tendered and cancelled in exchange for 83 million new stock options granted. The new stock options have an exercise price of $19.04, which is equal to the market price of Intel common stock (defined as the average of the high and low trading prices) on October 30, 2009. The new stock options were issued under the 2006 Plan and are subject to its terms and conditions. The new stock options vest in equal annual increments over a four-year period from the date of grant and will expire seven years from the grant date. Using the Black-Scholes option pricing model, we determined that the fair value of the surrendered stock options on a grant-by-grant basis was approximately equal, as of the date of the exchange, to the fair value of the eligible stock options exchanged, resulting in insignificant incremental share-based compensation. In 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 and 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 stockholder return (TSR) on Intel common stock measured against the benchmark TSR of a peer group over a three-year period. TSR is a m

Common Stock Repurchases

Common Stock Repurchases
	12 Months Ended Dec. 26, 2009 USD / shares
Common Stock Repurchases [Abstract]
Common Stock Repurchases	Note 24: Common Stock Repurchases Common Stock Repurchase Program We have an ongoing authorization, amended in November 2005, from our Board of Directors to repurchase up to $25 billion in shares of our common stock in open market or negotiated transactions. As of December 26, 2009, $5.7 billion remained available for repurchase under the existing repurchase authorization. During 2009, we utilized the majority of the proceeds from the issuance of the 2009 debentures to repurchase 88.2 million shares of common stock at a cost of $1.7 billion (for further information on the issuance of the 2009 debentures, see Note20: Borrowings). We repurchased 324 million shares at a cost of $7.1 billion during 2008 and 111 million shares at a cost of $2.75 billion during 2007. We have repurchased and retired 3.4 billion shares at a cost of $69 billion since the program began in 1990. Our repurchases in 2009 and a portion of our purchases in 2008 and 2007 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 2009, we withheld 5.8 million shares (3.5 million shares during 2008 and 1.7 million shares during 2007) to satisfy $92 million ($78 million during 2008 and $38 million during 2007) of employees tax obligations. Although shares withheld are not issued, they are treated as common stock repurchases in our consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting.

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 26, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Note 25: Earnings Per Share We computed our basic and diluted earnings per common share as follows: (In Millions, Except Per Share Amounts) 2009 2008 2007 Net income available to common stockholders1 $ 4,369 $ 5,292 $ 6,976 Weighted average common shares outstandingbasic 5,557 5,663 5,816 Dilutive effect of employee equity incentive plans 37 34 69 Dilutive effect of convertible debt 51 51 51 Weighted average common shares outstandingdiluted 5,645 5,748 5,936 Basic earnings per common share $ 0.79 $ 0.93 $ 1.20 Diluted earnings per common share $ 0.77 $ 0.92 $ 1.18 1 Net income available to participating securities was insignificant in 2009. We computed our basic earnings per common share using net income available to common stockholders 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 stockholders 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 require 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 are determined by applying the treasury stock method for these debentures. For further discussion on the specific conversion features of our 2005 and 2009 debentures, see Note 20: Borrowings. For 2009, we excluded 486 million outstanding weighted average stock options (484 million in 2008 and 417 million in 2007) 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. 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 anti-dilutive. In the future, we could have potentially dilutive shares if the average market price is above the conversion price.

Comprehensive Income

Comprehensive Income
	12 Months Ended Dec. 26, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	Note 26: Comprehensive Income The components of total comprehensive income were as follows: (In Millions) 2009 2008 2007 Net income $ 4,369 $ 5,292 $ 6,976 Other comprehensive income (loss) 786 (654 ) 318 Total comprehensive income $ 5,155 $ 4,638 $ 7,294 The components of other comprehensive income (loss) and related tax effects were as follows: 2009 2008 2007 (In Millions) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Before Tax Tax Net of Tax Change in unrealized holding gain (loss) on investments $ 578 $ (210 ) $ 368 $ (764 ) $ 279 $ (485 ) $ 420 $ (155 ) $ 265 Less: adjustment for (gain) loss on investments included in net income 50 (18 ) 32 34 (12 ) 22 (85 ) 31 (54 ) Change in deferred tax asset valuation allowance1 146 146 Change in unrealized holding gain (loss) on derivatives 75 (4 ) 71 (23 ) 8 (15 ) 80 (21 ) 59 Less: adjustment for amortization of (gain) loss on derivatives included in net income 22 (1 ) 21 (58 ) 21 (37 ) (55 ) 16 (39 ) Change in prior service costs 20 (7 ) 13 5 (2 ) 3 4 (1 ) 3 Change in actuarial loss 157 (23 ) 134 (220 ) 78 (142 ) 106 (22 ) 84 Change in transition obligation 1 1 Total other comprehensive income (loss) $ 903 $ (117 ) $ 786 $ (1,026 ) $ 372 $ (654 ) $ 470 $ (152 ) $ 318 1 Amount is related 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 investments. The amount will be relieved as these investments are sold or mature. The components of accumulated other comprehensive income (loss), net of tax, were as follows: (In Millions) 2009 2008 Accumulated net unrealized holding gain (loss) on available-for-sale investments1 $ 261

Taxes

Taxes
	12 Months Ended Dec. 26, 2009 USD / shares
Taxes [Abstract]
Taxes	Note 27: Taxes Income before taxes and the provision for taxes consisted of the following: (Dollars in Millions) 2009 2008 2007 Income before taxes: U.S. $ 3,229 $ 6,117 $ 6,520 Non-U.S. 2,475 1,569 2,646 Total income before taxes $ 5,704 $ 7,686 $ 9,166 Provision for taxes: Current: Federal $ 604 $ 2,781 $ 1,865 State (2 ) (38 ) 111 Non-U.S. 336 345 445 Total current provision for taxes $ 938 $ 3,088 $ 2,421 Deferred: Federal 355 (668 ) (140 ) Other 42 (26 ) (91 ) Total deferred provision for taxes $ 397 $ (694 ) $ (231 ) Total provision for taxes $ 1,335 $ 2,394 $ 2,190 Effective tax rate 23.4 % 31.1 % 23.9 % The 2009 deferred provision for income taxes includes $46 million of charges due to a change in assessment of the realizability of deferred tax assets of non-U.S. subsidiaries recognized prior to 2009. The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before income taxes (effective tax rate) was as follows: (In Percentages) 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Increase (reduction) in rate resulting from: Non-U.S. income taxed at different rates (12.4 ) (4.2 ) (4.7 ) European Commission fine 8.9 Settlements, effective settlements, and related remeasurements (6.4 ) (1.3 ) (5.3 ) Research and development tax credits (2.0 ) (1.4 ) (1.3 ) Domestic manufacturing deduction benefit (1.5 ) (1.7 ) (1.1 ) Deferred tax asset valuation allowance unrealized losses 0.2 3.4 Other 1.6 1.3 1.3 Effective tax rate 23.4 % 31.1 % 23.9 % During 2009, net income tax deficiencies attributable to equity-based compensation transactions that were allocated to stockholders equity totaled $41 million (net benefits of $8 million in 2008 and $123 million in 2007). Deferred income taxes re

Contingencies

Contingencies
	12 Months Ended Dec. 26, 2009 USD / shares
Contingencies [Abstract]
Contingencies	Note 28: 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 and related government investigations are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include substantial money damages, and in matters for 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, precluding particular business practices, or requiring other remedies such as compulsory licensing of intellectual property. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our business, results of operations, financial position, and overall trends. Except as may be otherwise indicated, the outcomes in these matters are not reasonably estimable. 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. While we have settled some of these matters, the distractions caused by challenges to our business practices from the remaining matters are undesirable, and the legal and other costs associated with defending our position have been and continue to be significant. We assume 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. Advanced Micro Devices, Inc. (AMD) and AMD International Sales Service, Ltd. v. Intel Corporation and Intel Kabushiki Kaisha, and Related Consumer Class Actions and Government Investigations In June 2005, 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 on exclusive or near-exclusive dealing that allegedly unfairly interfered with AMDs ability to sell its microprocessors, interfering with certain AMD product launches, and interfering with AMDs participation in certain industry standards-setting groups. AMDs complaint sought unspecified treble damages, punitive damages, an injunction requiring Intel to cease any conduct found to be unlawful, and attorneys fees and costs. AMDs Japanese subsidiary also filed suits in the Tokyo High Court and the Tokyo District Court agai

Operating Segment and Geographi

Operating Segment and Geographic Information
	12 Months Ended Dec. 26, 2009 USD / shares
Operating Segment and Geographic Information [Abstract]
Operating Segment and Geographic Information	Note 29: Operating Segment and Geographic Information At the end of 2009, we reorganized our business to better align our major product groups around the core competencies of Intel architecture and our manufacturing operations. After the reorganization, we have nine operating segments, including PC Client Group, Data Center Group, Embedded and Communications Group, Digital Home Group, Ultra-Mobility Group, NAND Solutions Group, Wind River Software Group, Software and Services Group, and Digital Health Group. All prior-period amounts have been adjusted retrospectively to reflect the new organizational structure. 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). Our PC Client Group and our Data Center Group are reportable operating segments. We also aggregate and disclose the financial results of the following non-reportable operating segments, whose product lines are based on Intel architecture: Embedded and Communications Group, Digital Home Group, and Ultra-Mobility Group. These non-reportable operating segments are aggregated, as they have similar economic characteristics and their operations are similar in nature. These aggregated operating segments do not meet the quantitative thresholds to qualify as reportable operating segments; however, we have chosen to disclose the aggregation of these non-reportable operating segments into the other Intel architecture operating segments category. Revenue for our reportable and aggregated non-reportable operating segments is primarily related to the following product lines: PC Client Group.Includes microprocessors and related chipsets and motherboards designed for the desktop (including high-end enthusiast PCs), notebook, and netbook market segments; and wireless connectivity products. Data Center Group.Includes microprocessors and related chipsets and motherboards designed for the server, workstation, and storage computing market segments; and wired network connectivity products. Other Intel architecture operating segments.Includes microprocessors and related chipsets for embedded applications and products designed for the ultra-mobile market segment, which includes various handheld devices; and products for the consumer electronics market segments. Our NAND Solutions Group, Wind River Software Group, Software and Services Group, and Digital Health Group operating segments do not meet the quantitative thresholds to qualify as reportable segments and are included within the other operating segments category. Revenue within the corporate category is primarily related to divested businesses for which discrete operating results are not reviewed by our CODM to assess performance and allocate resources. This includes revenue related to our NOR flash memory and cellular and handheld businesses, as well as revenue and expenses related to supply and service agreements that were entered into as part of these divestitures (see Note 16: Divestiture

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 26, 2009 USD / shares
Valuation and Qualifying Accounts [Abstract]
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	Schedule Of Valuation And Qualifying Accounts Disclosure INTEL CORPORATION SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS December 26, 2009, December 27, 2008, and December 29, 2007 (In Millions) Additions Balance at Charged Net Beginning of (Credited) (Deductions) Balance at Year to Expenses Recoveries End of Year Allowance for doubtful receivables1 2009 $ 17 $ 3 $ (1 ) $ 19 2008 $ 27 $ (4 ) $ (6 ) $ 17 2007 $ 32 $ (6 ) $ 1 $ 27 Valuation allowance for deferred tax assets 2009 $ 358 $ 91 $ (120 ) $ 329 2008 $ 133 $ 267 $ (42 ) $ 358 2007 $ 87 $ 46 $ $ 133 1 Deductions represent uncollectible accounts written off, net of recoveries.