11-K 1 f20214e11vk.htm FORM 11-K e11vk
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
     
  X   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2005
     
       TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from                   to                  
Commission file number 033-63489
INTEL CORPORATION 401(k) SAVINGS PLAN
(Full title of the Plan)
INTEL CORPORATION
(Name of the issuer of the securities held pursuant to the Plan)
2200 MISSION COLLEGE BOULEVARD
SANTA CLARA, CALIFORNIA, 95054-1549
(Address of principal executive office of the issuer)

 

 

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Report of Ernst & Young LLP, Independent Registered Public Accounting Firm
The SERP Administrative Committee
Intel Corporation 401(k) Savings Plan
We have audited the accompanying statements of net assets available for benefits of the Intel Corporation 401(k) Savings Plan as of December 31, 2005 and 2004, and the related statement of changes in net assets available for benefits for the year ended December 31, 2005. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2005 and 2004, and the changes in its net assets available for benefits for the year ended December 31, 2005, in conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2005, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
     
 
  /s/ Ernst & Young LLP
San Jose, California
June 19, 2006

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Intel Corporation 401(k) Savings Plan
Statements of Net Assets Available for Benefits
                 
    December 31,  
    2005     2004  
     
Assets
                
Value of interest in the Stable Value Fund
   $ 101,857,088     $ 89,015,028  
Investments, at fair value
     3,165,678,287       2,707,286,275  
 
                
Receivables:
                
Interest and dividends receivable
     1,294       1,927,998  
Receivable from brokers for securities sold
     1,866,721       1,452,431  
Employee contributions receivable
     9,298,616       7,792,116  
     
Total receivables
     11,166,631       11,172,545  
     
Total assets
     3,278,702,006       2,807,473,848  
 
                
Liabilities
                
Other accrued liabilities
     2,074,374       2,195,990  
     
Net assets available for benefits
   $ 3,276,627,632     $ 2,805,277,858  
     
See accompanying notes.

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Intel Corporation 401(k) Savings Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2005
         
Additions
        
Employee contributions
   $ 342,796,341  
 
        
Net investment income:
        
Interest and dividend income
     106,619,279  
Net investment gain from participation in Stable Value Fund
     3,648,654  
Net realized and unrealized appreciation in fair value of investments
     134,520,224  
 
      
Total net investment income
     244,788,157  
 
      
Total additions
     587,584,498  
 
        
Deductions
        
Benefits paid to participants and participant withdrawals
     118,290,981  
Administrative fees
     266,417  
 
      
Total deductions
     118,557,398  
 
        
Transfers to/from other plans, net
     2,322,674  
 
      
Net increase
     471,349,774  
 
        
Net assets available for benefits:
        
Beginning of year
     2,805,277,858  
 
      
End of year
   $ 3,276,627,632  
 
      
See accompanying notes.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements
December 31, 2005
1. Description of the Plan
The following description of the Intel Corporation 401(k) Savings Plan (the Plan) provides only general information. Participants should refer to the plan document for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution plan covering all eligible United States (U.S.) employees of Intel Corporation (the company). Eligible employees may participate in the Plan any time on or after their date of hire.
The Plan is intended to be qualified under Section 401(a) of the U.S. Internal Revenue Code of 1986 (the Code), as amended, and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
Trustee
Mellon Bank, N.A. is the Plan’s trustee, and holds all investments of the Plan and the Intel Corporation Master Trust (the Master Trust).
Administration of the Plan
Prior to November 10, 2004, the company delegated to the Plan Administrative Committee responsibility for the general operation and administration of the Plan and for carrying out and interpreting the Plan’s provisions. Effective November 10, 2004, the SERP Administrative Committee (as appointed by the Finance Committee of the company) was named the fiduciary responsible for the general operation and administration of the Plan (but not management or control of Plan assets) and the Investment Policy Committee (as appointed by the Finance Committee of the company) was named the fiduciary responsible for the management and control of Plan assets. The company is the plan sponsor, as defined by ERISA. Fidelity Investments Institutional Operations Company provides recordkeeping services with respect to the Plan.
Plan Mergers
During 2005, the Intel Puerto Rico Retirement Savings Plan (Puerto Rico Savings Plan) and the Intel Puerto Rico Profit Sharing Retirement Plan (Puerto Rico Profit Sharing Plan) were merged into the Plan, resulting in transfers into the Plan of $2,452,484 in net assets.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Contributions and Participant Accounts
Participant Contributions
Participants may contribute up to 50% (limited to certain percentages for highly compensated individuals) of their annual compensation on a before-tax basis, provided the amounts do not exceed the annual Internal Revenue Service (IRS) limit. Such contributions are withheld by the company from each participant’s compensation and deposited in the appropriate fund in accordance with the participant’s directives. Participants who are fifty years of age or older by the end of a particular plan year and have contributed the maximum 401(k) deferral amount allowed under the Plan for that year are eligible to contribute an additional portion of their annual compensation on a before-tax basis as catch-up contributions, up to the annual IRS limit. As of December 31, 2005, participants could elect to invest in any combination of the 75 different investment options offered under the Plan. Participants may change their investment elections daily.
Participant Accounts
Separate accounts are maintained for each participant. The account balances are generally adjusted as follows:
  •   Bi-weekly or semi-monthly for participant contributions.
 
  •   Daily for a pro rata share of investment income or losses on the Plan’s investments based on the ratio that each participant’s account bears to the total of all such accounts.
Vesting
Participants are immediately 100% vested with respect to contributions to all investment options in the Plan, as well as the related earnings from such contributions.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Payment of Benefits
Participants are eligible for a distribution of Plan benefits upon termination of service, whether by disability, retirement, death or leaving the company. In the event of financial hardship (as defined by the Plan), participants may withdraw money from their Plan accounts while they are still employed. Upon termination of service, a participant or applicable beneficiary may elect to have benefits paid in a single lump-sum distribution or monthly annuity payments, or may request that the company make a direct transfer to another eligible retirement plan. Spousal consent may be required based on the value of the account balance or type of distribution.
Participants who elect monthly annuity payments will have the balance of their accounts transferred to the Intel Corporation Defined Benefit Pension Plan (Intel Pension Plan). A single annuity is paid to those participants based on the combined benefit under the terms of the two plans. There were transfers under this option of $103,443 for the year ended December 31, 2005.
Participant Loans
All participants are permitted to obtain loans of up to 50% of their vested account balances in the Plan up to a maximum of $50,000 when combined with all other loans from this Plan and the Intel Corporation Profit Sharing Retirement Plan (Intel Profit Sharing Plan). The participants’ account balances secure their loans. The interest rate is based on the prime rate plus 1% as reported in The Wall Street Journal on the last business day of each month. The loan provisions are established and administered by the recordkeeper.
Participants may choose to obtain loans from either this Plan or the Intel Profit Sharing Plan. Repayments of loans are transferred to the participants’ Plan and Intel Profit Sharing Plan accounts in the ratio in which such accounts provided funding for the loan.
Administrative Expenses
The company pays a portion of the expenses for administration of the Plan. All other administrative expenses are paid directly by the Plan.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles.
Investment Valuation and Income Recognition
A portion of the investments of the Plan are held in the Master Trust, which consists of the assets of the Plan, the Intel Profit Sharing Plan, the Intel Pension Plan, the Puerto Rico Savings Plan, the Puerto Rico Profit Sharing Plan, and the Intel Puerto Rico Defined Benefit Pension Plan. The Master Trust includes multiple investment accounts, in which different combinations of the above-mentioned plans invest. Each participating plan shares in the assets and earnings of the master trust investment accounts (see Note 3) based on its respective interest in each master trust investment account. The Plan participates in one such investment account, the Stable Value Fund, along with the Intel Profit Sharing Plan and the Puerto Rico Savings Plan.
The Plan, either directly or through investment in the Stable Value Fund, holds investments in mutual funds, common collective trust funds, debt securities, equity securities and participant loans, which are stated at fair value as of the last day of the year. The fair value for securities traded on a national securities exchange or over-the-counter market is the last reported sales price as of the valuation date. Mutual funds are valued at quoted market prices that represent the net asset values of shares held at year-end. Participation units in common collective trust funds are stated at their quoted redemption value on the last business day of the plan year. Participant loans are valued at their outstanding balances, which approximate fair value. In the absence of an actively traded market, investments in the Stable Value Fund are stated at estimated fair value, computed using discounted cash flows.
Net investment income includes the gain (loss) realized on the sale of securities and unrealized appreciation (depreciation) in the fair value of investments, which is the difference between the fair value of investments at the beginning and the end of the year.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Investment Valuation and Income Recognition (continued)
The Stable Value Fund holds guaranteed investment contracts (see Note 6) with insurance companies and banks in order to provide participants with a stable, fixed-rate return of investment and protection of principal from changes in market interest rates. The guaranteed investment contracts are allocated to the Plan, the Intel Profit Sharing Plan, and the Puerto Rico Savings Plan based on each plan’s proportionate share of participation in the Stable Value Fund. The contracts are unallocated in nature and are valued at contract value because they are fully benefit-responsive. Contract value, as reported by the respective insurance companies or bank, approximates fair value. Contract value represents cost plus contributions made under the contracts plus interest at the contract rates less withdrawals and administrative expenses. If the funds in the guaranteed investment contracts are needed for benefit payments prior to contract maturity, they may be withdrawn without penalty.
The Stable Value Fund may also hold derivative financial instruments (see Note 7) in order to manage market risks and to alter the return characteristics of underlying securities to replicate the performance of various indices. The Stable Value Fund utilizes derivatives to replicate financial market performance in situations where derivatives are more economical or practical than purchasing the underlying securities themselves. Wrapper contracts issued by insurance companies and banks are stated at contract value, which approximates fair value, as of the last day of the year and are included with the fair value of the related underlying debt securities at year-end. All of the wrapper contracts held in the Stable Value Fund are allocated to the Plan, the Intel Profit Sharing Plan, and the Puerto Rico Savings Plan based on each plan’s proportionate share of the underlying debt securities.
Standish Mellon Asset Management has discretionary authority for the purchase and sale of investments in the Stable Value Fund, subject to the general investment policies of the Investment Policy Committee of the company.
Investment transactions are recognized as of their trade dates, and collateral has been obtained and secured against investments whenever deemed necessary. Interest is accrued daily; dividends are accrued when declared. Crediting interest rates on guaranteed investment contracts and wrapper contracts may be reset periodically by the issuer, but will not be less than zero percent.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Benefit Payments
Benefits are recorded when paid.
Contributions
Participant contributions are accrued when the participants’ salary deferrals are made.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from management’s estimates.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
3. Master Trust Investment Accounts
The value of the Plan’s interest in the Stable Value Fund included in the statements of net assets available for benefits represents 89.1% of the net assets available for benefits of the Stable Value Fund at December 31, 2005 and 91.7% at December 31, 2004. The Stable Value Fund’s net assets available for benefits consisted of the following at:
                 
    December 31,  
    2005     2004  
     
Assets
                
Investments, at fair value:
                
Common collective trusts
   $ 11,647,486     $ 11,586,010  
Debt securities
     91,859,587       73,992,847  
Guaranteed investment contracts
     10,433,458       11,207,354  
     
Total investments
     113,940,531       96,786,211  
 
                
Interest and dividends receivable
     392,308       304,030  
     
Total assets
     114,332,839       97,090,241  
     
 
                
Liabilities
                
Investment advisory fees
     25,387       22,530  
     
Net assets available for benefits
   $ 114,307,452     $ 97,067,711  
     
 
The net investment gain in the Stable Value Fund for the year ended December 31, 2005, was comprised of interest and dividends in the amount of $4,051,678.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
4. Investments
Investments that represent 5% or more of the Plan’s net assets available for benefits at year-end are as follows:
                 
    December 31,  
    2005     2004  
     
Mutual funds:
                
Fidelity Low-Priced Stock Fund
   $ 298,169,802     $ 280,354,826  
Vanguard Institutional Index Fund
     259,453,265       255,876,704  
Fidelity Contrafund
     214,493,744       170,993,441  
Fidelity Growth Company Fund
     201,092,692       182,853,413  
American Funds® EuroPacific Growth Fund
     169,861,907       *  
Fidelity Growth & Income Portfolio
     *       142,279,437  
Common stock:
                
Intel Corporation
     613,888,717       599,065,229  
 
* Fair value did not exceed 5% of the Plan’s net assets available for benefits at year-end.
During 2005, the Plan’s investments (including investments purchased, sold as well as held during the year) appreciated in fair value as follows:
         
    Year ended  
    December 31,  
    2005  
Net realized and unrealized appreciation in fair value of investments:
        
Mutual funds
   $ 84,085,689  
Common collective trust funds
     11,269,554  
Intel common stock
     38,748,885  
Other common stock
     416,096  
 
      
Net realized and unrealized appreciation in fair value of investments
   $ 134,520,224  
 
      

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
5. Party-In-Interest Transactions
Approximately 19% of the Plan’s investments are shares of the company’s common stock. Transactions in shares of the company’s common stock qualify as party-in-interest transactions under the provisions of ERISA. During 2005, the Plan made purchases of the company’s common stock of $46,034,360 and sales and distributions of $69,959,757.
6. Guaranteed Investment Contracts
The Stable Value Fund holds guaranteed investment contracts with insurance companies and banks in order to provide participants with a stable, fixed-rate return of investment and protection of principal from changes in market interest rates. As of December 31, 2005, the Stable Value Fund held guaranteed investment contracts in the amount of $10,433,458 ($11,207,354 at December 31, 2004) with insurance companies that have S&P ratings of AA- or better at the time of purchase. No more than $3,231,527 of the guaranteed investment contracts were with any one insurance company at December 31, 2005 ($3,137,405 at December 31, 2004). The crediting interest rates on the guaranteed investment contracts ranged from 2.85% to 3.70% at December 31, 2005 and December 31, 2004. The average yield earned on the guaranteed investment contracts was 3.29% in 2005 (3.33% in 2004).
7. Derivative Financial Instruments
The Stable Value Fund may hold wrapper contracts in order to manage market risks and to alter the return characteristics of underlying securities to match certain fixed income fund objectives. Wrapper contracts generally change the investment characteristics of underlying securities (such as corporate debt or U.S. government securities) to those of guaranteed investment contracts. The wrapper contracts provide that benefit-responsive distributions for specific underlying securities may be withdrawn at contract or face value. Benefit-responsive distributions are generally defined as a withdrawal on account of a participant’s retirement, disability or death, or participant-directed transfers in accordance with the terms of the Plan. As of December 31, 2005, the Stable Value Fund held wrapper contracts with a positive fair value of $1,627,251 (negative fair value of $78,852 as of December 31, 2004). At December 31, 2005, the crediting interest rates on the wrapper contracts ranged from 3.37% to 4.67% (2.99% to 4.67% at December 31, 2004). The average yield earned on the wrapper contracts was 3.60% in 2005 (3.80% in 2004).

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
8. Concentration of Credit Risk
The Plan’s exposure to a concentration of credit risk is limited by the diversification of investments across 75 participant-directed fund elections. With the exception of the Intel Stock Fund, the investments within each participant-directed fund election are further diversified into varied financial instruments. The Intel Stock Fund invests in a single security. The Plan’s exposure to credit risk on the wrapper contracts is limited to the fair value of the contracts with each counterparty.
9. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service dated February 7, 2006, stating that the Plan is qualified under Section 401(a) of the Code, and therefore the related trust is exempt from taxation. To maintain its qualified status, the Plan is required to operate in conformity with the Code. The plan sponsor believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt.
10. Plan Termination
The company has the right under the Plan to amend and terminate the Plan at any time for any reason. In the event of a plan termination, participants will remain 100% vested in their accounts.

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Intel Corporation 401(k) Savings Plan
Notes to Financial Statements (continued)
11. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2004 to Form 5500:
         
    December 31,  
    2004  
 
        
Net assets available for benefits per the financial statements
   $ 2,805,277,858  
Amounts allocated to withdrawing participants
     (232,148 )
 
      
Net assets available for benefits per the Form 5500
   $ 2,805,045,710  
 
      
The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 2005, to Form 5500:
         
    Year ended  
    December 31,  
    2005  
 
        
Benefits paid to participants and participant withdrawals per the financial statements
   $ 118,290,981  
Less: Amounts allocated to withdrawing participants at December 31, 2004
     (232,148 )
 
      
Benefits paid to participants per Form 5500
   $ 118,058,833  
 
      
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, but not yet paid as of that date. There were no such amounts allocated to withdrawing participants at December 31, 2005.

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Supplemental Schedule

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Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year)
December 31, 2005
                                 
            (c)        
            Description of investment          
        (b)   including maturity date,     (e)  
        Identity of issue, borrower,   rate of interest, collateral,     Current  
(a)     lessor, or similar party   par, or maturity value     Value  
 
       
Mutual funds:
                        
       
AIM Basic Value
   31,067 shares           $ 1,085,796  
       
American Century Equity Income Fund
   336,351 shares             2,630,265  
       
American Century Real Estate Fund
   823,795 shares             20,982,049  
       
American Century Small Cap Value Fund
   1,199,288 shares             11,573,131  
       
American Century Ultra Fund
   4,065,204 shares             123,622,849  
       
Merrill Lynch Global Allocation Fund
   260,411 shares             4,411,357  
       
American Funds® EuroPacific Growth Fund
   4,133,899 shares             169,861,907  
       
Brandywine Blue Fund, Inc.
   663,780 shares             19,634,610  
       
Calvert Social Investment Bond Fund
   293,091 shares             4,645,487  
       
Calvert Social Investment Equity Fund
   51,181 shares             1,862,480  
       
American Century Small Company Fund
   2,426,961 shares             23,784,220  
       
Delaware Pooled International Equity Fund
   598,801 shares             12,317,329  
       
Dodge & Cox Stock Fund
   478,435 shares             65,650,894  
       
Evergreen International Bond Fund
   509,793 shares             5,408,901  
  *    
Fidelity Capital & Income Fund
   6,346,398 shares             53,119,353  
  *    
Fidelity Contrafund®
   3,312,133 shares             214,493,744  
  *    
Fidelity Growth & Income Portfolio
   4,085,762 shares             140,550,202  
  *    
Fidelity Growth Company Fund
   3,160,344 shares             201,092,692  
  *    
Fidelity Low-Priced Stock Fund
   7,300,926 shares             298,169,802  
  *    
Fidelity Mid-Cap Stock Fund
   276,752 shares             7,353,294  
  *    
Fidelity Puritan Fund
   3,576,497 shares             66,987,783  
  *    
Fidelity Small Cap Stock Fund
   348,374 shares             6,375,243  
       
Franklin Income Fund
   2,235,027 shares             5,341,714  
       
Gabelli Gold
   374,515 shares             7,789,903  
       
GMO Emerging Countries Fund
   2,363,937 shares             41,534,368  
       
Goldman Sachs Small Cap Value Fund
   115,940 shares             4,878,763  
       
Goldman Sachs Mid Cap Value Fund
   835,048 shares             29,418,741  

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Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date, rate     (e)  
        Identity of issue, borrower,   of interest, collateral, par, or     Current  
(a)     lessor, or similar party   maturity value     Value  
 
       
Mutual funds (continued):
                        
       
The Growth Fund of America
   357,225 shares           $ 11,020,395  
       
Legg Mason Special Investment Trust
   101,557 shares             5,320,560  
       
Legg Mason Value Trust Inc
   153,798 shares             11,631,742  
       
Longleaf Partners Fund
   136,103 shares             4,215,097  
       
Loomis Sayles Bond
   837,924 shares             11,362,243  
       
The Merger Fund
   72,678 shares             1,066,188  
       
Merrill Lynch Global Small Cap Fund Inc
   193,321 shares             4,802,084  
       
Morgan Stanley Institutional Fund Inc
   762,455 shares             18,405,675  
       
Morgan Stanley Institutional Fund Trust Value Portfolio
   126,459 shares             2,162,451  
       
Pennsylvania Mutual Fund
   705,578 shares             7,606,126  
       
PIMCO CCM Capital Appreciation Fund
   160,811 shares             3,179,243  
       
PIMCO CCM Mid Cap Fund
   189,224 shares             5,192,296  
       
PIMCO Emerging Markets Bond Fund
   935,305 shares             10,438,008  
       
PIMCO High Yield Fund
   534,690 shares             5,197,188  
       
PIMCO Long-Term U.S. Government Fund
   390,758 shares             4,298,342  
       
PIMCO Total Return Fund
   7,442,020 shares             78,141,211  
  *    
Fidelity Institutional Cash Portfolio
   117,814,438 shares             117,814,438  
       
T. Rowe Price Growth Stock Fund
   179,821 shares             5,106,914  
       
TCW Galileo Select Equities Fund
   80,389 shares             1,632,706  
       
TCW Galileo Value Opportunities Fund
   146,084 shares             3,215,301  
       
Templeton Growth Fund
   277,561 shares             6,370,033  
       
Vanguard Convertible Securities Fund
   110,304 shares             1,478,067  
       
Wells Fargo Montgomery Emerging Markets Focus Fund
   178,696 shares             5,139,298  
       
Vanguard Growth Index Fund
   153,500 shares             4,227,377  
       
Vanguard Inflation-Protected Securities Fund
   964,896 shares             9,388,435  

18

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date,     (e)  
        Identity of issue, borrower,   rate of interest, collateral,     Current  
(a)     lessor, or similar party   par, or maturity value     Value  
 
       
Mutual funds (continued):
                        
       
Vanguard Institutional Index Fund
   2,275,706 shares           $ 259,453,265  
       
Vanguard-Intermediate-Term Treasury Fund
   161,884 shares             1,769,393  
       
Vanguard International Value Fund
   597,361 shares             20,800,098  
       
Vanguard Long-Term Bond Index Fund
   430,793 shares             5,100,589  
       
Vanguard Mid-Cap Index Fund
   2,128,998 shares             37,619,402  
       
Vanguard Small-Cap Growth Index Fund
   410,765 shares             6,748,870  
       
Vanguard Small-Cap Value Index Fund
   366,045 shares             5,329,611  
       
Vanguard Strategic Equity Fund
   490,076 shares             10,747,362  
       
Vanguard Windsor Fund
   47,845 shares             2,769,275  
       
Washington Mutual Investors Fund
   133,501 shares             4,115,826  
       
 
                      
       
Total mutual funds
                   $ 2,237,441,986  
       
 
                        
       
Common collective trust funds:
                        
  *    
Pooled employee funds-daily liquidity fund
   223,576 units           $ 223,576  
       
Barclays Global Investors NASDAQ-100 Index® Fund
   4,300,872 units             28,686,815  
  *    
EB Daily Liquidity Aggregate Bond Index Fund
   2,268,659 units             24,158,494  
  *    
EB Daily Liquidity Stock Index Fund
   11,558,849 units             131,100,460  
  *    
EB Daily Liquidity International Stock Index Fund
   1,143,571 units             14,752,868  
  *    
EB Daily Liquidity Small Cap Stock Index Fund
   1,470,291 units             17,449,270  
       
Barclays Global Investors Russell 1000 Value Fund
   2,965,679 units             40,748,427  
       
 
                      
       
Total common collective trust funds
                   $ 257,119,910  

19

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date,     (e)  
        Identity of issue, borrower,   rate of interest, collateral,     Current  
(a)     lessor, or similar party   par, or maturity value     Value  
 
       
Common stock:
                        
  *    
Intel Corporation
   24,594,901 shares           $ 613,888,717  
       
Endurance Specialty Holdings, Ltd
   800 shares             28,680  
       
Ipc Holdings Ltd
   1,338 shares             36,634  
       
Platinum Underwriters Holdings
   1,848 shares             57,417  
       
AFC Enterprises Inc
   600 shares             9,072  
       
Atmi Inc
   700 shares             19,579  
       
Acuity Brands Inc
   1,000 shares             31,800  
       
Adesa Inc
   786 shares             19,194  
       
Advance American Cash Advance Centers
   411 shares             5,096  
       
Alabama National Bancorporation
   200 shares             12,952  
       
Alexandria Real Estate
   486 shares             39,123  
       
Apria Healthcare Group Inc
   210 shares             5,063  
       
Aptargroup Inc
   1,300 shares             67,860  
       
Bok Financial Corp
   625 shares             28,393  
       
Banner Corp
   300 shares             9,360  
       
Banta Corp
   2,150 shares             107,070  
       
Bel Fuse Inc
   775 shares             24,645  
       
Belden CDT Inc
   1,050 shares             25,651  
       
Borders Group Inc
   500 shares             10,835  
       
Borg Warner Inc
   1,100 shares             66,693  
       
Burlington Coat Factory
   675 shares             27,142  
       
CBRL Group Inc
   500 shares             17,575  
       
CEC Entertainment Inc
   300 shares             10,212  
       
CSG Systems International Inc
   700 shares             15,624  
       
CTS Corp
   975 shares             10,783  
       
Cabot Corp
   500 shares             17,900  
       
Cabot Oil & Gas Corp
   500 shares             22,550  
       
Cambrex Corp
   800 shares             15,016  

20

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date, rate     (e)  
        Identity of issue, borrower,   of interest, collateral, par, or     Current  
(a)     lessor, or similar party   maturity value     Value  
 
       
Common stock (continued):
                        
       
Charming Shoppes Inc
   6,050 shares           $ 79,860  
       
Checkpoint Systems Inc
   700 shares             17,255  
       
Chicago Bridge & Iron
   1,500 shares             37,815  
       
Ciber Inc
   3,966 shares             26,176  
       
Cimarex Energy Co
   807 shares             34,709  
       
Claires Stores Inc
   875 shares             25,567  
       
Clarcor Inc
   2,050 shares             60,905  
       
Columbia Banking Systems Inc
   500 shares             14,275  
       
Comstock Resources Inc
   500 shares             15,255  
       
Corn Products International Inc
   492 shares             11,754  
       
Covance Inc
   4,125 shares             200,269  
       
Dave & Busters Inc
   600 shares             10,566  
       
Duratek Inc
   2,900 shares             43,297  
       
El Paso Electric Co
   1,247 shares             26,237  
       
Elkcorp
   1,625 shares             54,697  
       
Energen Corp
   1,552 shares             56,369  
       
Energy East Corp
   2,025 shares             46,170  
       
Entercom Communications Corp
   3,175 shares             94,202  
       
Essex Property Trust Inc
   300 shares             27,660  
       
Fei Company
   1,000 shares             19,170  
       
Fairchild Semiconductor International
   4,225 shares             71,445  
       
Ferro Corp
   2,200 shares             41,272  
       
First Financial Bankshares Inc
   300 shares             10,518  
       
First Indiana Corp
   195 shares             6,704  
       
First Midwest Bancorp Inc
   400 shares             14,024  
       
First Place Financial Corp
   400 shares             9,620  
       
Forrester Research Inc
   1,200 shares             22,500  
       
4 Kids Entertainment
   1,000 shares             15,690  

21

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date, rate     (e)  
        Identity of issue, borrower,   of interest, collateral, par, or     Current  
(a)     lessor, or similar party   maturity value     Value  
 
       
Common stock (continued):
                        
       
Fuller H B Co
   1,775 shares           $ 56,924  
       
G & K Services Inc
   450 shares             17,662  
       
General Cable Corp
   4,786 shares             94,284  
       
General Communication Inc
   3,125 shares             32,281  
       
Georgia Gulf Corp
   650 shares             19,773  
       
Global Payments Inc
   1,450 shares             67,584  
       
Graco Inc
   1,350 shares             49,248  
       
Greif Inc
   150 shares             9,942  
       
Griffon Corp
   1,950 shares             46,429  
       
Harsco Corp
   2,075 shares             140,083  
       
Harte-Hanks Inc
   3,675 shares             96,983  
       
Home Properties Inc
   715 shares             29,172  
       
Houston Exploration Co
   250 shares             13,200  
       
Hyperion Solutions Corp
   600 shares             21,492  
       
ITLA Capitol Corp
   200 shares             9,770  
       
Iberiabank Corp
   350 shares             17,854  
       
Independent Bank Corp Mass
   500 shares             14,265  
       
Independent Bank Corp Mich
   315 shares             8,577  
       
Insight Enterprises Inc
   925 shares             18,139  
       
Integrated Device Technologies Inc
   5,000 shares             65,900  
       
Inter Tel Inc
   1,117 shares             21,860  
       
Interactive Data Corp
   2,500 shares             56,775  
       
Jack In The Box Inc
   500 shares             17,465  
       
Jacobs Energy Group Inc
   400 shares             27,148  
       
Journal Communications Inc
   1,200 shares             16,740  
       
Kadant Inc
   600 shares             11,100  
       
Kansas City Southern
   825 shares             20,155  
       
Kennametal Inc
   1,050 shares             53,592  

22

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
            (c)        
            Description of investment        
        (b)   including maturity date,     (e)  
        Identity of issue, borrower,   rate of interest, collateral,     Current  
(a)     lessor, or similar party   par, or maturity value     Value  
 
       
Common stock (continued):
                        
       
Lakeland Financial Corp
   300 shares           $ 12,114  
       
Landstar Systems Inc
   470 shares             19,618  
       
MAF Bancorp Inc
   300 shares             12,414  
       
MB Financial Inc
   400 shares             14,160  
       
M/I Homes Inc
   525 shares             21,326  
       
Macatawa Bank Corp
   300 shares             10,914  
       
Macerich Co
   625 shares             41,963  
       
Martin Marietta Materials Inc
   400 shares             30,688  
       
Meritage Homes Corp
   600 shares             37,752  
       
Mettler-Toledo International Inc
   1,925 shares             106,260  
       
Minerals Technologies Inc
   500 shares             27,945  
       
Molecular Devices Corp
   2,300 shares             66,539  
       
Moneygram International Inc
   1,300 shares             33,904  
       
Moog Inc
   1,188 shares             33,715  
       
Noble International Ltd
   400 shares             8,336  
       
Northwest Natural Gas Co
   1,400 shares             47,852  
       
Oceaneering International Inc
   650 shares             32,357  
       
Oxford Industries Inc
   1,000 shares             54,700  
       
Pff Bancorp Inc
   575 shares             17,549  
       
Pacer International Inc Tennessee
   2,025 shares             52,772  
       
Parkway Properties Inc
   800 shares             32,112  
       
Perot Systems Corp
   2,900 shares             41,006  
       
Philadelphia Consolidated Holdings Corp
   125 shares             12,086  
       
Prentiss Properties
   700 shares             28,476  
       
Prosperity Bancshares Inc
   365 shares             10,490  
       
RC2 Corp
   900 shares             31,968  
       
Rayonier Inc
   1,762 shares             70,216  
       
Readers Digest Association Inc
   2,800 shares             42,616  

23

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                 
              (c)              
            Description of investment        
        (b)   including maturity date,     (e)  
        Identity of issue, borrower,   rate of interest, collateral,     Current  
(a)     lessor, or similar party   par, or maturity value     Value  
 
       
Common stock (continued):
                        
       
Rehabcare Group Inc
   500 shares           $ 10,100  
       
Robbins & Myers Inc
   1,288 shares             26,211  
       
Ryder Systems Inc
   250 shares             10,255  
       
Ryland Group Inc
   450 shares             32,459  
       
Sl Green Realty Corp
   425 shares             32,466  
       
St Mary Land & Exploration Co
   800 shares             29,448  
       
Scholastic Corp
   250 shares             7,128  
       
The Scotts Miracle-Gro Company
   2,800 shares             126,672  
       
Seacoast Banking Corp of Florida
   400 shares             9,180  
       
Skechers U S A Inc
   900 shares             13,788  
       
Skywest Inc
   900 shares             24,174  
       
Smart & Final Inc
   700 shares             9,016  
       
Southwest Bancorp Inc
   731 shares             14,620  
       
Stancorp Financial Group Inc
   550 shares             27,473  
       
Standex International Corp
   2,349 shares             65,208  
       
Steak N Shake Co
   1,225 shares             20,764  
       
Swift Energy Co
   500 shares             22,535  
       
Sybase Inc
   2,500 shares             54,650  
       
Sykes Enterprises Inc
   2,175 shares             29,080  
       
Tanger Factory Outlet Center Inc
   1,950 shares             56,043  
       
Technitrol Inc
   2,425 shares             41,468  
       
Tenneco Inc
   611 shares             11,982  
       
Trustmark Corp
   800 shares             21,976  
       
URS Corp
   2,594 shares             97,560  
       
United Bankshares Inc W Virginia
   800 shares             28,192  
       
United Fire & Casualty
   300 shares             12,129  
       
United Stationers Inc
   2,225 shares             107,912  
       
Vectren Corp
   3,525 shares             95,739  

24

Table of Contents

Intel Corporation 401(k) Savings Plan
EIN: 94-1672743, Plan Number: 003
Schedule H, Line 4i — Schedule of Assets (Held At End of Year) (continued)
December 31, 2005
                                         
                    (c)        
                    Description of investment        
        (b)           including maturity date,     (e)  
        Identity of issue, borrower,           rate of interest, collateral,     Current  
(a)     lessor, or similar party           par, or maturity value     Value  
   
       
Common stock (continued):
                                
       
Viad Corp
           1,750 shares           $ 51,327  
       
WSFS Financial Corp
           300 shares             18,375  
       
Washington Group International Inc
           1,745 shares             92,433  
       
Wausu Paper Corp
           1,800 shares             21,330  
       
Werner Enterprises Inc
           2,433 shares             47,930  
       
West Coast Bancorp
           478 shares             12,643  
       
Zale Corp
           1,250 shares             31,438  
       
 
                              
       
Total common stock
                           $ 619,044,566  
       
 
                                
       
 
           Interest at 4.75% – 11.50%,                
  *    
Participant loans
           maturing through 2030           $ 52,071,825  
       
 
                              
       
Total investments
                           $ 3,165,678,287  
       
 
                              
     
Column (d) cost has been omitted as investments are participant-directed.
 
* Indicates a party-in-interest to the Plan.

25

Table of Contents

SIGNATURE
The Plan. Pursuant to the requirements of the Securities and Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
             
    INTEL CORPORATION 401(k) SAVINGS PLAN    
 
                          (Full Title of the Plan)    
 
Date: June 19, 2006
  By:   /s/ Andy D. Bryant    
 
           
 
      Andy D. Bryant    
 
      Executive Vice President,    
 
      Chief Financial and    
 
      Enterprise Services Officer and Principal Accounting Officer    

26