10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2011.

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

Commission File Number 000-06217

INTEL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-1672743
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
2200 Mission College Boulevard, Santa Clara, California	95054-1549
(Address of principal executive offices)	(Zip Code)

(408) 765-8080
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Shares outstanding of the Registrant’s common stock:

Class	Outstanding as of July 29, 2011
Common stock, $0.001 par value	5,251 million

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTEL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended					Six Months Ended
	July 2,			June 26,		July 2,			June 26,
(In Millions, Except Per Share Amounts)	2011			2010		2011			2010
Net revenue	$	13,032		$	10,765	$	25,879		$	21,064
Cost of sales		5,130			3,530		10,092			7,300
Gross margin		7,902			7,235		15,787			13,764
Research and development		1,986			1,666		3,902			3,230
Marketing, general and administrative		1,905			1,584		3,680			3,098
Amortization of acquisition-related intangibles		76			4		112			7
Operating expenses		3,967			3,254		7,694			6,335
Operating income		3,935			3,981		8,093			7,429
Gains (losses) on equity method investments, net		(66	)		76		(108	)		37
Gains (losses) on other equity investments, net		41			117		111			125
Interest and other, net		21			11		206			40
Income before taxes		3,931			4,185		8,302			7,631
Provision for taxes		977			1,298		2,188			2,302
Net income	$	2,954		$	2,887	$	6,114		$	5,329
Basic earnings per common share	$	0.56		$	0.52	$	1.14		$	0.96
Diluted earnings per common share	$	0.54		$	0.51	$	1.11		$	0.94
Cash dividends declared per common share	$	—		$	—	$	0.3624		$	0.3150
Weighted average common shares outstanding:
Basic		5,294			5,563		5,376			5,546
Diluted		5,441			5,711		5,527			5,696

See accompanying notes.

2

INTEL CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

	July 2,		Dec. 25,
(In Millions)	2011		2010
Assets
Current assets:
Cash and cash equivalents	$	4,635	$	5,498
Short-term investments		3,106		11,294
Trading assets		3,806		5,093
Accounts receivable, net		3,359		2,867
Inventories		4,030		3,757
Deferred tax assets		1,973		1,488
Other current assets		2,193		1,614
Total current assets		23,102		31,611
Property, plant and equipment, net of accumulated depreciation of $34,093 ($32,582 as of December 25, 2010)		20,778		17,899
Marketable equity securities		892		1,008
Other long-term investments		992		3,026
Goodwill		9,141		4,531
Identified intangible assets, net		6,700		860
Other long-term assets		4,484		4,251
Total assets	$	66,089	$	63,186
Liabilities and stockholders’ equity
Current liabilities:
Short-term debt	$	71	$	38
Accounts payable		2,742		2,290
Accrued compensation and benefits		2,111		2,888
Accrued advertising		1,086		1,007
Deferred income		1,824		747
Other accrued liabilities		2,520		2,357
Total current liabilities		10,354		9,327
Long-term income taxes payable		188		190
Long-term debt		2,090		2,077
Long-term deferred tax liabilities		2,215		926
Other long-term liabilities		2,519		1,236
Contingencies (Note 26)
Stockholders’ equity:
Preferred stock		—		—
Common stock and capital in excess of par value, 5,285 shares issued and outstanding (5,581 issued and 5,511 outstanding as of December 25, 2010)		16,245		16,178
Accumulated other comprehensive income (loss)		466		333
Retained earnings		32,012		32,919
Total stockholders’ equity		48,723		49,430
Total liabilities and stockholders’ equity	$	66,089	$	63,186

See accompanying notes.

3

INTEL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended
	July 2,			June 26,
(In Millions)	2011			2010
Cash and cash equivalents, beginning of period	$	5,498		$	3,987
Cash flows provided by (used for) operating activities:
Net income		6,114			5,329
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,535			2,166
Share-based compensation		562			480
Net loss on retirement of assets		56			16
Excess tax benefit from share-based payment arrangements		(26	)		(62	)
Amortization of intangibles		411			124
(Gains) losses on equity method investments, net		108			(37	)
(Gains) losses on other equity investments, net		(111	)		(125	)
(Gains) losses on divestitures		(164	)		—
Deferred taxes		31			2
Changes in assets and liabilities:
Accounts receivable		(388	)		(147	)
Inventories		(184	)		(395	)
Accounts payable		388			243
Accrued compensation and benefits		(832	)		(513	)
Income taxes payable and receivable		(466	)		(23	)
Other assets and liabilities		(50	)		507
Total adjustments		1,870			2,236
Net cash provided by operating activities		7,984			7,565
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment		(5,207	)		(1,976	)
Acquisitions, net of cash acquired		(8,291	)		(70	)
Purchases of available-for-sale investments		(5,213	)		(6,863	)
Sales of available-for-sale investments		8,754			337
Maturities of available-for-sale investments		7,087			5,625
Purchases of trading assets		(3,820	)		(4,791	)
Maturities and sales of trading assets		5,258			3,571
Origination of loans receivable		(30	)		(439	)
Investments in non-marketable equity investments		(295	)		(169	)
Return of equity method investments		113			99
Proceeds from divestitures		50			—
Other investing		167			34
Net cash used for investing activities		(1,427	)		(4,642	)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net		33			43
Proceeds from government grants		56			79
Excess tax benefit from share-based payment arrangements		26			62
Proceeds from sales of shares through employee equity incentive plans		587			386
Repurchase of common stock		(6,180	)		(219	)
Payment of dividends to stockholders		(1,955	)		(1,747	)
Net cash used for financing activities		(7,433	)		(1,396	)
Effect of exchange rate fluctuations on cash and cash equivalents		13			—
Net increase (decrease) in cash and cash equivalents		(863	)		1,527
Cash and cash equivalents, end of period	$	4,635		$	5,514
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes, net of refunds	$	2,596		$	2,359

See accompanying notes.

4

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited

Note 1: Basis of Presentation

We prepared our interim consolidated condensed financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 25, 2010.

We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2011 is a 53-week fiscal year, and the first quarter of 2011 was a 14-week quarter. Fiscal year 2010 was a 52-week fiscal year, and the first quarter of 2010 was a 13-week quarter.

In the first quarter of 2011, we completed the acquisition of McAfee, Inc. (for further information, see “Note 15: Acquisitions”). Certain of the operations acquired from McAfee have a functional currency other than the U.S. dollar. As a result, translation adjustments have been recorded through accumulated other comprehensive income (loss) beginning in 2011.

We have made estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult, and subjective judgments include:

• the valuation of non-marketable equity investments and the determination of other-than-temporary impairments;

• the assessment of recoverability of long-lived assets (property, plant and equipment; goodwill; and identified intangibles);

• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions);

• the valuation of inventory; and

• the recognition and measurement of loss contingencies.

The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2010.

Note 2: Accounting Policies

We have adopted additional revenue recognition accounting policies as they apply to the acquired McAfee business. Revenue from license agreements with our McAfee business generally includes service and support agreements for which the related revenue is deferred and recognized ratably over the performance period. Revenue derived from online subscription products is deferred and recognized ratably over the performance period. Professional services revenue is recognized as services are performed or if required, upon customer acceptance. For arrangements with multiple elements, including software licenses, maintenance, and/or services, revenue is allocated across the separately identified deliverables and may be recognized or deferred. When vendor-specific objective evidence (VSOE) does not exist for undelivered elements such as maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Direct costs, such as costs related to revenue-sharing and royalty arrangements associated with license arrangements, as well as component costs associated with product revenue, are deferred and amortized over the same period that the related revenue is recognized.

Note 3: Accounting Changes

In the first quarter of 2011, we adopted new standards for revenue recognition with multiple deliverables. These new standards change the determination of whether the individual deliverables included in a multiple-element arrangement may be treated as separate units for accounting purposes. Additionally, these new standards modify the method by which revenue is allocated to the separately identified deliverables. The adoption of these new standards did not have a significant impact on our consolidated condensed financial statements.

In the first quarter of 2011, we adopted new standards that remove certain tangible products and associated software from the scope of the software revenue recognition guidance. The adoption of these new standards did not have a significant impact on our consolidated condensed financial statements.

5

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 4: Recent Accounting Standards

In May 2011, the Financial Accounting Standards Board (FASB) issued amended standards to achieve a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. For assets and liabilities categorized as Level 3 and recognized at fair value, these amended standards require disclosure of quantitative information about unobservable inputs, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements. In addition, these amended standards require that we disclose the level in the fair value hierarchy for financial instruments disclosed at fair value but not recorded at fair value. These new standards are effective for us beginning in the first quarter of 2012; early adoption of these standards is prohibited. We do not expect these new standards to significantly impact our consolidated condensed financial statements.

In June 2011, the FASB issued amended standards to increase the prominence of items reported in other comprehensive income. These amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and require that all changes in stockholders’ equity—except investments by, and distributions to, owners—be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, these amendments require that we present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. These new standards are effective for us beginning in the first quarter of 2012 and are to be applied retrospectively. These amended standards will impact the presentation of other comprehensive income but will not impact our financial position or results of operations.

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 assets and liabilities 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.

Marketable Debt Instruments

Marketable debt instruments include instruments such as commercial paper, corporate bonds, government bonds, bank deposits, asset-backed securities, municipal bonds, and money market fund deposits. When we use observable market prices for identical securities that are traded in less active markets, we classify our marketable debt instruments as Level 2. When observable market prices for identical securities are not available, we price our marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. We corroborate non-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings.

6

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Our marketable debt instruments that are classified as Level 3 are classified as such due to the lack of observable market data to corroborate either the non-binding market consensus prices or the non-binding broker quotes. When observable market data is not available, we corroborate non-binding market consensus prices and non-binding broker quotes using available unobservable 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 consisted of the following types of instruments as of July 2, 2011 and December 25, 2010:

	July 2, 2011								December 25, 2010
	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
Cash equivalents:
Commercial paper	$	—	$	2,272	$	—	$	2,272	$	—	$	2,600	$	—	$	2,600
Bank deposits		—		889		—		889		—		560		—		560
Money market fund deposits		550		—		—		550		34		—		—		34
Government bonds		465		—		—		465		1,279		505		—		1,784
Short-term investments:
Commercial paper		—		1,505		—		1,505		—		2,712		—		2,712
Corporate bonds		107		693		8		808		121		1,378		1		1,500
Government bonds		125		451		—		576		4,890		1,320		—		6,210
Bank deposits		—		210		—		210		—		858		—		858
Asset-backed securities		—		—		7		7		—		—		14		14
Trading assets:
Government bonds		230		1,722		—		1,952		311		2,115		—		2,426
Corporate bonds		204		738		—		942		199		916		—		1,115
Municipal bonds		—		350		—		350		—		375		—		375
Commercial paper		—		305		—		305		—		488		—		488
Asset-backed securities		—		—		146		146		—		—		190		190
Bank deposits		—		69		—		69		—		108		—		108
Money market fund deposits		32		—		—		32		3		—		—		3
Marketable equity securities		10		—		—		10		388		—		—		388
Other current assets:
Derivative assets		—		209		—		209		—		330		—		330
Loans receivable		—		36		—		36		—		—		—		—
Marketable equity securities		841		51		—		892		785		223		—		1,008
Other long-term investments:
Corporate bonds		73		404		57		534		104		601		50		755
Government bonds		—		351		—		351		83		2,002		—		2,085
Bank deposits		—		55		—		55		—		133		—		133
Asset-backed securities		—		—		52		52		—		—		53		53
Other long-term assets:
Loans receivable		—		651		—		651		—		642		—		642
Derivative assets		—		2		29		31		—		19		31		50
Total assets measured and recorded at fair value	$	2,637	$	10,963	$	299	$	13,899	$	8,197	$	17,885	$	339	$	26,421
Liabilities
Other accrued liabilities:
Derivative liabilities	$	—	$	166	$	6	$	172	$	—	$	201	$	7	$	208
Long-term debt		—		—		128		128		—		—		128		128
Other long-term liabilities:
Derivative liabilities		—		85		—		85		—		47		—		47
Total liabilities measured and recorded at fair value	$	—	$	251	$	134	$	385	$	—	$	248	$	135	$	383

Government bonds include bonds issued or deemed to be guaranteed by government entities, such as instruments issued by non-U.S. governments, U.S. Treasury securities, Federal Deposit Insurance Corporation (FDIC)-insured corporate bonds, and U.S. agency securities.

7

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

The tables below present reconciliations for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended July 2, 2011 and for the twelve months ended December 25, 2010:

	Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3)
	Corporate			Asset-Backed			Derivative			Derivative			Long-term			Total Gains
(In Millions)	Bonds			Securities			Assets			Liabilities			Debt			(Losses)
Balance as of December 25, 2010	$	51		$	257		$	31		$	(7	)	$	(128	)
Total gains or losses (realized and unrealized):
Included in earnings		—			(1	)		(2	)		1			—			(2	)
Included in other comprehensive income (loss)		7			(1	)		—			—			—			6
Purchases		12			13			3			—			—
Settlements and maturities		(5	)		(63	)		—			—			—
Transfers out of Level 3		—			—			(3	)		—			—
Balance as of July 2, 2011	$	65		$	205		$	29		$	(6	)	$	(128	)
Changes in unrealized gains or losses included in earnings related to assets and liabilities still held as of July 2, 2011	$	—		$	(1	)	$	(2	)	$	1		$	—		$	(2	)
	Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3)
	Corporate			Asset-Backed			Derivative			Derivative			Long-term			Total Gains
(In Millions)	Bonds			Securities			Assets			Liabilities			Debt			(Losses)
Balance as of December 26, 2009	$	369		$	754		$	31		$	(65	)	$	(123	)
Total gains or losses (realized and unrealized):
Included in earnings		(2	)		6			(3	)		(2	)		(5	)		(6	)
Included in other comprehensive income (loss)		4			9			—			—			—			13
Purchases		6			—			7			—			—
Sales		(44	)		(28	)		(4	)		—			—
Settlements and maturities		(75	)		(484	)		—			—			—
Transfers out of Level 3		(207	)		—			—			60			—
Balance as of December 25, 2010	$	51		$	257		$	31		$	(7	)	$	(128	)
Changes in unrealized gains or losses included in earnings related to assets and liabilities still held as of December 25, 2010	$	—		$	6		$	(4	)	$	(1	)	$	(5	)	$	(4	)

For all periods presented, gains and losses (realized and unrealized) included in earnings were primarily reported outside of operating income. During 2010, we transferred corporate bonds from Level 3 to Level 2 due to improved availability of observable market data and non-binding market consensus prices to value or corroborate the value of these instruments. Our policy is to reflect transfers in and transfers out at the beginning of the quarter in which a change in circumstances resulted in the transfer.

Fair Value Option for Financial Assets/Liabilities

We elected the fair value option for loans made to third parties when the interest rate or foreign exchange rate risk was hedged at inception with a related derivative instrument. As of July 2, 2011, the fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance based on the contractual currency. These loans receivable are classified within other long-term assets and other current assets. Fair value is determined using a discounted cash flow model with all significant inputs derived from or corroborated with observable market data. Gains and losses from changes in fair value on the loans receivable and related derivative instruments, as well as interest income, are recorded in interest and other, net. During the three and six months ended July 2, 2011, changes in the fair value of our loans receivable were largely offset by changes in the related derivative instruments, resulting in an insignificant net impact on our consolidated condensed statements of income. Gains and losses attributable to changes in credit risk are determined using observable credit default spreads for the issuer or comparable companies and were insignificant during the three and six months ended July 2, 2011. We did not elect the fair value option for loans when the interest rate or foreign exchange rate risk was not hedged at inception with a related derivative instrument.

8

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

We elected this fair value option for the bonds issued in 2007 by the Industrial Development Authority of the City of Chandler, Arizona (2007 Arizona bonds). In connection with the 2007 Arizona bonds, we entered into a total return swap agreement that effectively converts the fixed-rate obligation on the bonds to a floating U.S.-dollar LIBOR-based rate. As a result, changes in the fair value of this debt are largely offset by changes in the fair value of the total return swap agreement, without the need to apply hedge accounting provisions. The 2007 Arizona bonds are included in long-term debt. As of July 2, 2011 and December 25, 2010, no other instruments were similar to the 2007 Arizona bonds for which we elected fair value treatment.

As of July 2, 2011, the fair value of the 2007 Arizona bonds did not significantly differ from the contractual principal balance. The fair value of the 2007 Arizona bonds was determined using inputs that are observable in the market or that can be derived from or corroborated with observable market data, as well as unobservable inputs that were significant to the fair value. Gains and losses on the 2007 Arizona bonds and the related total return swap are recorded in interest and other, net. We capitalize interest associated with the 2007 Arizona bonds. We add capitalized interest to the cost of qualified assets and amortize it over the estimated useful lives of the assets.

Assets Measured and Recorded at Fair Value on a Non-Recurring Basis

Our non-marketable equity investments and non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only if an impairment charge is recognized. The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during the six months ended July 2, 2011, and the gains (losses) recorded during the three and six months ended July 2, 2011 on those assets:

									Total Gains			Total Gains
									(Losses) for			(Losses) for
	Net Carrying								Three Months			Six Months
	Value as of		Fair Value Measured and Recorded Using						Ended			Ended
(In Millions)	July 2, 2011		Level 1		Level 2		Level 3		July 2, 2011			July 2, 2011
Non-marketable equity investments	$	37	$	—	$	—	$	37	$	(8	)	$	(22	)
Property, plant and equipment	$	—	$	—	$	—	$	—	$	—		$	(10	)
Total gains (losses) for assets held as of July 2, 2011									$	(8	)	$	(32	)
Gains (losses) for property, plant and equipment no longer held									$	(19	)	$	(45	)
Total gains (losses) for recorded non-recurring measurement									$	(27	)	$	(77	)

The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during the six months ended June 26, 2010, and the gains (losses) recorded during the three and six months ended June 26, 2010 on those assets:

									Total Gains			Total Gains
									(Losses) for			(Losses) for
	Net Carrying								Three Months			Six Months
	Value as of		Fair Value Measured and Recorded Using						Ended			Ended
(In Millions)	June 26, 2010		Level 1		Level 2		Level 3		June 26, 2010			June 26, 2010
Non-marketable equity investments	$	126	$	—	$	—	$	130	$	(17	)	$	(63	)
Total gains (losses) for assets held as of June 26, 2010									$	(17	)	$	(63	)
Gains (losses) for property, plant and equipment no longer held									$	(7	)	$	(40	)
Total gains (losses) for recorded non-recurring measurement									$	(24	)	$	(103	)

In the preceding tables, the carrying value of our impaired non-marketable equity investments at the end of the period may not equal our fair value measurement at the time of impairment due to the subsequent recognition of equity method adjustments. In addition, the carrying value of our impaired property, plant and equipment at the end of the period may not equal our fair value measurement at the time of impairment due to the subsequent recognition of depreciation expense.

9

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

A portion of our non-marketable equity investments were measured and recorded at fair value in the first half of 2011 and 2010 due to events or circumstances that significantly impacted the fair value of those investments, resulting in other-than-temporary impairment charges. We classified these measurements as Level 3, as we used unobservable inputs to the valuation methodologies that were significant to the fair value measurements, and the valuations required management judgment due to the absence of quoted market prices. We determine the fair value of our non-marketable equity investments using the market and income approaches. The market approach includes the use of financial metrics and ratios of comparable public companies. The selection of comparable companies requires management judgment and is based on a number of factors, including comparable companies’ sizes, growth rates, industries, development stages, and other relevant factors. The income approach includes the use of a discounted cash flow model, which requires the following significant estimates for the investee: revenue, based on assumed market segment size and assumed market segment share; costs; and discount rates based on the risk profile of comparable companies. Estimates of market segment size, market segment share, and costs are developed using historical data and available market data. The valuation of these non-marketable equity investments also takes into account variables such as conditions reflected in the capital markets, recent financing activities by the investees, the investees’ capital structure, and the terms of the investees’ issued interests.

Additionally, certain of our property, plant and equipment was measured and recorded at fair value during the first half of 2011 and 2010 due to events or circumstances we identified that indicated that the carrying value of the assets or the asset grouping was not recoverable, resulting in impairment charges. Most of these asset impairments related to manufacturing assets.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We measure the fair value of our non-marketable equity investments, marketable equity method investment, debt carried at amortized cost, and cost method loans receivable quarterly for disclosure purposes; however, they are recorded at fair value only when an impairment charge is recognized. The carrying amounts and fair values of financial instruments not recorded at fair value on a recurring basis as of July 2, 2011 and December 25, 2010 were as follows:

	July 2, 2011				December 25, 2010
	Carrying		Fair		Carrying		Fair
(In Millions)	Amount		Value		Amount		Value
Non-marketable equity investments	$	2,713	$	5,725	$	2,633	$	5,144
Marketable equity method investment	$	34	$	103	$	31	$	167
Loans receivable	$	230	$	230	$	208	$	208
Long-term debt	$	1,962	$	2,204	$	1,949	$	2,283

As of July 2, 2011 and December 25, 2010, the unrealized loss position of our non-marketable equity investments was not significant.

Our marketable equity method investment is our ownership interest in SMART Technologies, Inc. The fair value of our ownership interest in SMART was $103 million based on the quoted closing stock price as of July 2, 2011 ($167 million as of December 25, 2010).

The carrying amount and fair value of loans receivable exclude loans measured and recorded at a fair value of $687 million as of July 2, 2011 ($642 million as of December 25, 2010). The carrying amount and fair value of long-term debt exclude long-term debt measured and recorded at a fair value of $128 million as of July 2, 2011 ($128 million as of December 25, 2010).

The fair value of our loans receivable is determined using a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. The fair value of our long-term debt takes into consideration variables such as credit-rating changes and interest rate changes. The credit quality of our loans receivable remains high, with credit ratings of BBB+/A2 or better as of July 2, 2011.

In addition to the financial instruments in the table above, we incurred a liability as result of entering into a long-term patent cross-license agreement with NVIDIA Corporation in January 2011. We agreed to make payments to NVIDIA over six years. For further information on the payment terms and recognition of licensed technology intangible assets, see “Note 18: Identified Intangible Assets.” As of July 2, 2011, the carrying amount of the liability arising from the agreement was $1.1 billion and is classified within other accrued liabilities and other long-term liabilities, as applicable. The fair value of the liability arising from the NVIDIA cross-license agreement approximates the carrying amount. The fair value is determined using a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.

10

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 6: Trading Assets

Trading assets as of July 2, 2011 and December 25, 2010 were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Marketable debt instruments	$	3,796	$	4,705
Marketable equity securities		10		388
Total trading assets	$	3,806	$	5,093

Net gains on marketable debt instruments classified as trading assets still held at the reporting date were $16 million in the second quarter of 2011 and $66 million in the first half of 2011 (net losses of $173 million in the second quarter of 2010 and $234 million in the first half of 2010). Net losses on the related derivatives were $13 million in the second quarter of 2011 and $53 million in the first half of 2011 (net gains of $143 million in the second quarter of 2010 and $191 million in the first half of 2010).

Net losses on marketable equity securities classified as trading assets still held at the reporting date, excluding the impacts of the related derivatives, were insignificant in the second quarter of 2011 and in the first half of 2011 (net gains of $38 million in the second quarter of 2010 and first half of 2010).

In 2010, we sold our ownership in Numonyx B.V. to Micron Technology, Inc. The Micron common stock we received in the transaction was classified as marketable equity securities within trading assets. During the second quarter of 2011, we sold our remaining shares in Micron.

Note 7: Available-for-Sale Investments

Available-for-sale investments as of July 2, 2011 and December 25, 2010 were as follows:

	July 2, 2011									December 25, 2010
			Gross		Gross							Gross		Gross
	Adjusted		Unrealized		Unrealized			Fair		Adjusted		Unrealized		Unrealized			Fair
(In Millions)	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Commercial paper	$	3,777	$	—	$	—		$	3,777	$	5,312	$	—	$	—		$	5,312
Government bonds		1,392		1		(1	)		1,392		10,075		9		(5	)		10,079
Corporate bonds		1,332		13		(3	)		1,342		2,250		9		(4	)		2,255
Bank deposits		1,155		—		(1	)		1,154		1,550		1		—			1,551
Marketable equity securities		334		568		(10	)		892		380		629		(1	)		1,008
Asset-backed securities		69		—		(10	)		59		76		—		(9	)		67
Money market fund deposits		550		—		—			550		34		—		—			34
Total available-for-sale investments	$	8,609	$	582	$	(25	)	$	9,166	$	19,677	$	648	$	(19	)	$	20,306

In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government entities, such as instruments issued by non-U.S. governments, U.S. Treasury securities, FDIC-insured corporate bonds, and U.S. agency securities. Bank deposits were primarily issued by institutions outside the U.S. as of July 2, 2011 and December 25, 2010.

The amortized cost and fair value of available-for-sale debt investments as of July 2, 2011, by contractual maturity, were as follows:

(In Millions)	Cost		Fair Value
Due in 1 year or less	$	6,726	$	6,724
Due in 1–2 years		643		650
Due in 2–5 years		283		288
Due after 5 years		4		3
Instruments not due at a single maturity date		619		609
Total	$	8,275	$	8,274

Instruments not due at a single maturity date in the table above includes asset-backed securities and money market fund deposits.

11

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

We sold available-for-sale investments for proceeds of $1.2 billion in the second quarter of 2011 and $8.8 billion in the first half of 2011 ($44 million in the second quarter of 2010 and $337 million in the first half of 2010). Substantially all of the proceeds in the first half of 2011 were from debt investments that were primarily used to fund our acquisition of McAfee. The gross realized gains on sales of available-for-sale investments were $36 million in the second quarter of 2011 and $64 million in the first half of 2011 ($12 million in the second quarter of 2010 and $79 million in the first half of 2010) and were primarily related to our sales of marketable equity securities. We determine the cost of an investment sold on an average cost basis at the individual security level.

The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in other comprehensive income (loss) and the before-tax net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings were as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,		June 26,
(In Millions)	2011			2010			2011		2010
Net unrealized holding gains (losses) included in other comprehensive income (loss)	$	(12	)	$	(17	)	$	24	$	134
Net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings	$	44		$	7		$	88	$	74

Note 8: Inventories

Inventories at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Raw materials	$	546	$	471
Work in process		1,450		1,887
Finished goods		2,034		1,399
Total inventories	$	4,030	$	3,757

Note 9: 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. 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. For presentation on our consolidated condensed balance sheets, we do not offset fair value amounts recognized for derivative instruments under master netting arrangements.

Currency Exchange Rate Risk

We are exposed to currency exchange rate risk and generally hedge our exposures with currency forward contracts, currency options, or currency interest rate swaps. Substantially all of our revenue is transacted in U.S. dollars. However, a significant amount of our 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. Our non-U.S.-dollar-denominated investments in debt instruments and loans receivable are generally hedged with offsetting currency forward contracts or currency interest rate swaps. These programs reduce, but do not 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. All of our currency forward contracts are settled at maturity involving one cash-payment exchange. 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 in the same line item on the consolidated condensed statements of income as the impact of the hedged transaction.

12

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

• Currency derivatives without hedge accounting designation that utilize currency forward contracts, or currency interest rate swaps to economically hedge the functional currency equivalent cash flows of recognized monetary assets and liabilities, non-U.S.-dollar-denominated debt instruments classified as trading assets, and hedges of non-U.S.-dollar-denominated loans receivable recognized at fair value. The majority of these instruments mature within 12 months. The currency interest rate swaps are settled at various interest payment times involving cash payments at each interest and principal payment date with the majority of the contracts having quarterly payments. 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 condensed statements of income most closely associated with the related exposures, primarily in interest and other, net, except for equity-related gains or losses, which we primarily record in gains (losses) on other equity investments, net.

Interest Rate Risk

Our primary objective for holding investments in debt instruments is to preserve principal while maximizing yields. We generally swap the returns on our investments in fixed-rate debt instruments with remaining maturities longer than six months into U.S.-dollar three-month LIBOR-based returns, unless management specifically approves otherwise. These swaps are settled at various interest payment times involving cash payments at each interest and principal payment date, with the majority of the contracts having quarterly payments.

Our interest rate risk management programs include:

• Interest rate derivatives with cash flow hedge accounting designation that utilize interest rate swap agreements to modify the interest characteristics of debt instruments. 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 in the same line item on the consolidated condensed statements of income as the impact of the hedged transaction.

• Interest rate derivatives without hedge accounting designation that utilize interest rate swaps and currency interest rate swaps in economic hedging transactions, including hedges of non-U.S.-dollar-denominated debt instruments classified as trading assets and hedges of non-U.S.-dollar-denominated loans receivable recognized at fair value. Floating interest rates on the swaps are reset on a monthly, quarterly, or semiannual basis. Changes in fair value of the debt instruments classified as trading assets and hedges of loans receivable recognized at fair value are generally offset by changes in fair value of the related derivatives, both of which are recorded in interest and other, net.

Equity Market Risk

Our marketable investments include marketable equity securities and equity derivative instruments. To the extent that our marketable equity securities have strategic value, we typically do not attempt to reduce or eliminate our equity market exposure through hedging activities. We may enter into transactions to reduce or eliminate the equity market risks for our investments in strategic equity derivative instruments. For securities that we no longer consider strategic, we evaluate legal, market, and economic factors in our decision on the timing of disposal and whether it is possible and appropriate to hedge the equity market risk. Our equity market risk management program includes equity derivatives without hedge accounting designation that utilize warrants, equity options, or other equity derivatives. We recognize changes in the fair value of such derivatives in gains (losses) on other equity investments, net. We also utilize total return swaps to offset changes in liabilities related to the equity market risks of certain deferred compensation arrangements. Gains and losses from changes in fair value of these total return swaps are generally offset by the gains and losses on the related liabilities, which are both recorded in cost of sales and operating expenses.

In the second quarter of 2010, we sold our ownership interest in Numonyx to Micron for consideration consisting of shares of Micron. We also entered into equity option transactions that economically hedged a portion of the ownership interest in Micron that we acquired. In the second quarter of 2011, we sold our remaining ownership interest in Micron and the related equity options matured.

Commodity Price Risk

We operate facilities that consume commodities, and have established forecasted transaction risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in commodity prices, such as those for natural gas. These programs reduce, but do not always entirely eliminate, the impact of commodity price movements.

13

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Our commodity price risk management program includes commodity derivatives with cash flow hedge accounting designation that utilize commodity swap contracts to hedge future cash flow exposures to the variability in commodity prices. These instruments generally mature within 12 months. For these derivatives, we report the after-tax gain (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 condensed statements of income as the impact of the hedged transaction.

Volume of Derivative Activity

Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Currency forwards	$	8,661	$	8,502	$	6,940
Interest rate swaps		2,055		2,166		2,156
Currency interest rate swaps		1,713		2,259		2,287
Embedded debt derivatives		3,600		3,600		3,600
Total return swaps		797		627		525
Equity options		44		496		511
Currency options		—		94		94
Other		120		66		68
Total	$	16,990	$	17,810	$	16,181

The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Euro	$	4,289	$	4,445	$	4,371
Japanese yen		2,935		3,440		2,412
Israeli shekel		1,459		1,191		712
Chinese yuan		403		347		368
Malaysian ringgit		365		382		310
British pound sterling		368		424		514
Other		555		626		634
Total	$	10,374	$	10,855	$	9,321

Credit-Risk-Related Contingent Features

An insignificant amount of our derivative instruments contain credit-risk-related contingent features, such as provisions that require our debt to maintain an investment grade credit rating from each of the major credit rating agencies. As of July 2, 2011 and December 25, 2010, we did not have any derivative instruments with credit-risk-related contingent features that were in a significant net liability position.

14

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Fair Values of Derivative Instruments in the Consolidated Condensed Balance Sheets

The fair values of our derivative instruments as of July 2, 2011 and December 25, 2010 were as follows:

	July 2, 2011								Dec. 25, 2010
	Other		Other		Other		Other		Other		Other		Other		Other
	Current		Long-Term		Accrued		Long-Term		Current		Long-Term		Accrued		Long-Term
(In Millions)	Assets		Assets		Liabilities		Liabilities		Assets		Assets		Liabilities		Liabilities
Derivatives designated as hedging instruments
Currency forwards	$	171	$	2	$	9	$	1	$	120	$	3	$	43	$	3
Other		2		—		—		—		2		—		—		—
Total derivatives designated as hedging instruments	$	173	$	2	$	9	$	1	$	122	$	3	$	43	$	3
Derivatives not designated as hedging instruments
Currency forwards	$	28	$	—	$	17	$	—	$	35	$	—	$	14	$	—
Interest rate swaps		1		—		80		—		2		—		96		—
Currency interest rate swaps		7		—		60		48		64		17		47		13
Embedded debt derivatives		—		—		—		36		—		—		—		31
Total return swaps		—		5		—		—		41		6		—		—
Equity options		—		1		6		—		65		5		7		—
Other		—		23		—		—		1		19		1		—
Total derivatives not designated as hedging instruments	$	36	$	29	$	163	$	84	$	208	$	47	$	165	$	44
Total derivatives	$	209	$	31	$	172	$	85	$	330	$	50	$	208	$	47

Derivatives in Cash Flow Hedging Relationships

The before-tax effects of derivative instruments in cash flow hedging relationships for the three and six months ended July 2, 2011 and June 26, 2010 were as follows:

	Gains (Losses)
	Recognized in
	OCI on Derivatives						Gains (Losses) Reclassified from Accumulated
	(Effective Portion)						OCI Into Income by Derivative Instrument Type (Effective Portion)
(In Millions)	Q2 2011			Q2 2010			Location	Q2 2011		Q2 2010
Currency forwards	$	55		$	(126	)	Cost of sales	$	42	$	8
							Research and development		15		8
							Marketing, general and administrative		12		(1	)
Other		(1	)		3		Cost of sales		1		(1	)
Total	$	54		$	(123	)		$	70	$	14
	Gains (Losses)
	Recognized in
	OCI on Derivatives						Gains (Losses) Reclassified from Accumulated
	(Effective Portion)						OCI into Income by Derivative Instrument Type (Effective Portion)
(In Millions)	YTD 2011			YTD 2010			Location	YTD 2011		YTD 2010
Currency forwards	$	256		$	(178	)	Cost of sales	$	76	$	29
							Research and development		23		17
							Marketing, general and administrative		17		6
Other		2			3		Cost of sales		2		(3	)
Total	$	258		$	(175	)		$	118	$	49

Gains and losses on derivative instruments in cash flow hedging relationships related to hedge ineffectiveness and amounts excluded from effectiveness testing were insignificant during all periods presented in the preceding tables. We estimate that we will reclassify approximately $165 million (before taxes) of net derivative gains included in other accumulated comprehensive income (loss) into earnings within the next 12 months. For all periods presented, there was an insignificant impact on results of operations from discontinued cash flow hedges as a result of forecasted transactions that did not occur.

15

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Derivatives Not Designated as Hedging Instruments

The effects of derivative instruments not designated as hedging instruments on the consolidated condensed statements of income were as follows:

		Three Months Ended						Six Months Ended
	Location of Gains (Losses)	July 2,			June 26,			July 2,			June 26,
(In Millions)	Recognized in Income on Derivatives	2011			2010			2011			2010
Currency forwards	Interest and other, net	$	2		$	108		$	16		$	143
Interest rate swaps	Interest and other, net		(18	)		(33	)		(19	)		(46	)
Currency interest rate swaps	Interest and other, net		(18	)		144			(128	)		226
Total return swaps	Various		(3	)		(26	)		20			(2	)
Equity options	Gains (losses) on other equity investments, net		51			50			(66	)		15
Other	Gains (losses) on other equity investments, net		—			—			2			(4	)
Total		$	14		$	243		$	(175	)	$	332

Note 10: Other Long-Term Assets

Other long-term assets at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Equity method investments	$	1,738	$	1,791
Non-marketable cost method investments		1,009		872
Non-current deferred tax assets		357		289
Loans receivable		651		741
Other		729		558
Total other long-term assets	$	4,484	$	4,251

Note 11: Equity Method Investments

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. As of July 2, 2011, we owned a 49% interest in IMFT and a 14% interest in IMFS. The carrying value of our investment in IMFT/IMFS was $1.3 billion as of July 2, 2011 ($1.5 billion as of December 25, 2010) and is classified within other long-term assets. The IMFS fabrication facility began initial production in the second quarter of 2011. 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. As a result of the reduction of our ownership interest in IMFS during 2010 and 2011, Micron now appoints the majority of the managers on the IMFS board. These ventures are expected to operate until 2016 but are subject to earlier termination under certain terms and conditions.

These joint ventures are variable interest entities. All costs of the joint ventures will be passed on to Micron and Intel through our purchase agreements. IMFT and IMFS are dependent upon Micron and Intel for any additional cash requirements. Our known maximum exposure to loss approximated the carrying value of our investment balance in IMFT/IMFS as of July 2, 2011. As of July 2, 2011, except for the amount due to IMFT/IMFS for product purchases and services, we did not have any additional liabilities recognized on our consolidated condensed balance sheet in connection with our interests in these joint ventures. In addition to the potential loss of our existing investment, our actual losses could be higher, as Intel and Micron are liable for other future operating costs or obligations of IMFT/IMFS. In addition, future cash calls could increase our investment balance and the related exposure to loss. Finally, as we are currently committed to purchasing 49% of IMFT’s and 43% of IMFS’s production output and production-related services, we may be required to purchase products at a cost in excess of realizable value. Our contractual commitment to purchase product output and fund production-related services adjusts to changes in our ownership percentage on a one-year lag.

16

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Our portion of IMFT/IMFS costs, primarily related to product purchases and production-related services, was approximately $250 million during the second quarter of 2011 and approximately $470 million during the first half of 2011 (approximately $190 million during the second quarter of 2010 and approximately $380 million during the first half of 2010). The amount due to IMFT/IMFS for product purchases and services provided was approximately $110 million as of July 2, 2011 (approximately $105 million as of December 25, 2010). During the first half of 2011, $113 million was returned to Intel by IMFT/IMFS, which is reflected as a return of equity method investment within investing activities on the consolidated condensed statements of cash flows ($99 million during the first half of 2010).

Under the accounting standards for consolidating variable interest entities, the consolidating investor is the entity with the power to direct the activities of the venture that most significantly impact the venture’s economic performance and with the obligation to absorb losses or the right to receive benefits from the venture that could potentially be significant to the venture. We have determined that we do not have both of these characteristics and, therefore, we account for our interests using the equity method of accounting.

Intel-GE Care Innovations, LLC

In the first quarter of 2011, Intel and General Electric Company (GE) formed an equally owned joint venture, Intel-GE Care Innovations, LLC (Care Innovations), in the healthcare industry that focuses on independent living and delivery of health-related services via telecommunications. The company was formed by combining assets of GE Healthcare’s Home Health division and Intel’s Digital Health Group. As a result of the formation of Care Innovations, we recognized a gain of $164 million in the first quarter of 2011 that is recorded in interest and other, net. Our investment in Care Innovations was $159 million as of July 2, 2011 and is classified in other long-term assets.

Care Innovations is dependent upon Intel and GE for any additional cash requirements and, therefore, is a variable interest entity. Our known maximum exposure to loss approximated the carrying value of our investment balance in Care Innovations as of July 2, 2011. In addition to the potential loss of our existing investment, our actual losses could be higher, as we are liable to contribute additional future funding up to approximately $65 million if Care Innovations were to meet established milestones.

Intel and GE share the power to direct all of Care Innovations’ activities that most significantly impact its economic performance. As a result, we account for our interests in Care Innovations under the equity method of accounting.

Note 12: Gains (Losses) on Equity Method Investments, Net

Gains (losses) on equity method investments, net included:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
(In Millions)	2011			2010			2011			2010
Equity method losses, net	$	(67	)	$	(9	)	$	(129	)	$	(44	)
Impairment charges		—			(6	)		—			(10	)
Other, net		1			91			21			91
Total gains (losses) on equity method investments, net	$	(66	)	$	76		$	(108	)	$	37

Note 13: Gains (Losses) on Other Equity Investments, Net

Gains (losses) on other equity investments, net included:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
(In Millions)	2011			2010			2011			2010
Impairment charges	$	(9	)	$	(11	)	$	(23	)	$	(53	)
Gains on sales, net		42			20			87			103
Other, net		8			108			47			75
Total gains (losses) on other equity investments, net	$	41		$	117		$	111		$	125

17

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 14: Interest and Other, Net

The components of interest and other, net were as follows:

	Three Months Ended					Six Months Ended
	July 2,		June 26,			July 2,			June 26,
(In Millions)	2011		2010			2011			2010
Interest income	$	20	$	29		$	48		$	55
Interest expense		—		—			(6	)		—
Other, net		1		(18	)		164			(15	)
Total interest and other, net	$	21	$	11		$	206		$	40

In the first quarter of 2011, we recognized a gain upon formation of the Intel and GE joint venture, Care Innovations, of $164 million, included within “other, net,” in the table above. See “Note 11: Equity Method Investments,” for further information.

Note 15: Acquisitions

McAfee, Inc.

On February 28, 2011, we completed the acquisition of McAfee by acquiring all issued and outstanding common shares in exchange for cash. The acquired company will continue to operate as McAfee and offer products for endpoint security, system security, consumer security, network security, and risk and compliance. In addition to managing the existing McAfee business, the objective of the acquisition is to accelerate and enhance the combination of hardware and software security solutions, improving the overall security of our platforms.

Total consideration to acquire McAfee was $6.7 billion (net of $943 million of cash and cash equivalents acquired) and comprised the following:

(In Millions)
Cash	$	6,652
Share-based awards assumed		48
Total	$	6,700

The allocation of purchase consideration to assets and liabilities is not yet finalized. The preliminary allocation of the purchase price was based upon a preliminary valuation and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are the determination of the tax basis of certain assets and liabilities, the determination of certain tax carry forwards, residual goodwill, and the allocation of goodwill to our reporting units. Reporting units are equivalent to our operating segments. The preliminary fair values of the assets acquired and liabilities assumed by major class in the acquisition of McAfee were recognized as follows:

(In Millions)
Marketable debt securities	$	329
Goodwill		4,295
Identified intangible assets		3,552
Deferred tax assets		742
Other assets		417
Deferred income		(1,049	)
Deferred tax liabilities		(1,191	)
Other liabilities		(395	)
Total	$	6,700

The preliminary goodwill of $4.3 billion arising from the acquisition is primarily attributed to the assembled workforce of McAfee and synergies to enable the combination of security and hardware from a single company to protect online devices. Substantially all of the goodwill recognized is not expected to be deductible for tax purposes. For the information on the assignment of preliminary goodwill for the acquisition, see “Note 17: Goodwill.”

18

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

The identified intangible assets assumed in the acquisition of McAfee were recognized as follows based upon their fair values as of February 28, 2011:

			Estimated
	Fair Value		Useful Life
	(In Millions)		(In Years)
Developed technology	$	1,221		4
Customer relationships		1,418		2–7
Total identified intangible assets subject to amortization	$	2,639
In-process research and development		92
Trade names		821
Total identified intangible assets	$	3,552

Acquired developed technology represents the fair values of McAfee products that have reached technological feasibility and are a part of McAfee’s product offerings. Customer relationships represent the fair values of the underlying relationships and agreements with McAfee’s customers. In-process research and development represents the fair values of incomplete McAfee research and development projects that had not reached technological feasibility as of the date of acquisition. In the future, the fair value of each project at the acquisition date will be either amortized or impaired depending on whether the project is completed or abandoned. Trade names are indefinite lived intangible assets and represent the fair values of brand and name recognition associated with the marketing of McAfee’s products and services.

Other 2011 Acquisitions

During the first half of 2011, in addition to the McAfee acquisition, we completed seven acquisitions qualifying as business combinations in exchange for total consideration of $1.7 billion, substantially all cash consideration. Total net cash consideration to acquire the Wireless Solutions (WLS) business of Infineon Technologies AG, which operates as Intel Mobile Communications (IMC), was $1.4 billion. The WLS business offers mobile phone components such as baseband processors, radio frequency transceivers, and power management chips. In addition to managing the existing WLS business, the objective of the acquisition is to provide solutions that enable a broad range of computing applications to have wireless connectivity.

The allocation of purchase consideration to assets and liabilities acquired in the acquisition of the WLS business is not yet finalized. The preliminary allocation of the purchase price was based upon a preliminary valuation and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are the valuation of net tangible assets acquired, residual goodwill, and the allocation of goodwill to our reporting units. The preliminary fair values of the assets acquired and liabilities assumed by major class in the acquisitions completed during the first half of 2011, excluding McAfee, was allocated as follows:

(In Millions)
Fair value of net tangible assets acquired	$	157
Goodwill		248
Identified intangible assets		1,295
Total	$	1,700

For the information on the assignment of preliminary goodwill for the acquisitions, see “Note 17: Goodwill.”

The identified intangible assets assumed in the acquisitions completed during the first half of 2011, excluding McAfee, were recognized as follows:

			Estimated
	Fair Value		Useful Life
	(In Millions)		(In Years)
Developed technology	$	1,037		3–9
Customer relationships		96		5–8
Other intangible assets		43		2–5
Total identified intangible assets subject to amortization	$	1,176
In-process research and development		119
Total identified intangible assets	$	1,295

19

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Acquired developed technology represents the fair values of the acquirees’ products that have reached technological feasibility and are a part of the acquirees’ product lines. Customer relationships represent the fair values of the underlying relationships and agreements with the acquirees’ customers. In-process research and development represents the fair values of incomplete research and development projects that had not reached technological feasibility as of the date of acquisition.

Actual and Pro Forma Results of Acquirees

Net revenue and net income attributable to acquisitions completed during the first half of 2011 have been included in our consolidated condensed statements of income from their respective acquisition dates to the period ended July 2, 2011. The acquisitions completed during the first half of 2011 were not individually significant to our consolidated condensed results of operations, however, they were significant in the aggregate. For the three and six months ended July 2, 2011, the results of the businesses acquired in 2011 contributed approximately $1.0 billion and $1.5 billion, respectively, to our net revenue and reduced our net income by approximately $50 million and $120 million, respectively; substantially all of these impacts were attributable to McAfee and Intel Mobile Communications and include the impacts of the amortization of acquired identified intangible assets.

McAfee is a non-reportable operating segment and is aggregated with similar non-reportable operating segments within the software and services operating segments category for segment reporting purposes. Intel Mobile Communications is a non-reportable operating segment and is aggregated with similar non-reportable operating segments within the other Intel architecture operating segments category for segment reporting purposes. For further information, see “Note 27: Operating Segment Information.”

The unaudited pro forma financial results for the three and six months ended July 2, 2011 and June 26, 2010 combine the historical results of Intel for the three and six months ended July 2, 2011 and June 26, 2010, respectively, along with the historical results of the businesses acquired during the first half of 2011 for the three and six months ended June 30, 2011 and June 30, 2010, respectively (due to differences in reporting periods). The results include the effects of pro forma adjustments as if businesses acquired in the first half of 2011 were acquired on December 27, 2009. The three and six months ended June 26, 2010 pro forma results include nonrecurring adjustments of $89 million and $202 million, respectively, which reduce net income due to the revaluation of McAfee’s historic deferred revenue to fair value.

The pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisitions. This is presented for informational purposes only and is not indicative of future operations or results that would have been achieved had the acquisitions been completed as of December 27, 2009.

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net revenue	$	13,100	$	11,573	$	26,527	$	22,587
Net income	$	3,014	$	2,778	$	6,198	$	5,082
Diluted earnings per share	$	0.55	$	0.49	$	1.12	$	0.89

Note 16: Divestitures

In the first quarter of 2011, we completed the divestiture of our Digital Health Group by entering into an agreement with GE to form an equally owned joint venture to create a new healthcare company focused on independent living and delivery of health-related services via telecommunications. The new company, Care Innovations, was formed by combining assets of GE Healthcare’s Home Health division and Intel’s Digital Health Group. During the first quarter of 2011, as a result of the formation of Care Innovations, we recognized a gain of $164 million, within interest and other, net. For further information, see “Note 11: Equity Method Investments.”

20

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 17: Goodwill

Goodwill activity for the first half of 2011 was as follows:

						Other Intel		Software and
						Architecture		Services
	PC Client			Data Center		Operating		Operating
(In Millions)	Group			Group		Segments		Segments		Unallocated		Total
December 25, 2010	$	2,234		$	1,459	$	582	$	256	$	—	$	4,531
Additions due to McAfee acquisition		—			—		—		—		4,295		4,295
Additions due to other acquisitions		5			—		20		19		204		248
Transfers		(86	)		—		86		—		—		—
Effect of exchange rate fluctuations		—			—		—		1		66		67
July 2, 2011	$	2,153		$	1,459	$	688	$	276	$	4,565	$	9,141

During the first quarter of 2011, we formed the Netbook and Tablet Group, which includes microprocessors and related chipsets designed for the netbook and tablet market segments. Due to the formation of this new operating segment, goodwill was transferred from our PC Client Group to our Netbook and Tablet Group as shown in the preceding table. Our Netbook and Tablet Group is included in the other Intel architecture operating segments category in the preceding table.

During the first quarter of 2011, we completed the acquisition of McAfee. The goodwill recognized from this acquisition is unallocated to date. We will use information from our annual planning process, which will be completed later this year, to measure the synergistic value that the McAfee acquisition creates for operating segments other than McAfee. In addition to the McAfee acquisition, we completed seven other acquisitions during the first half of 2011. The substantial majority of the goodwill recognized from these seven other acquisitions is unallocated to date as we continue to measure the synergistic value that the acquisitions create for our individual operating segments. The remaining goodwill recognized from these seven other acquisitions was allocated to Intel Mobile Communications, the Software and Services Group, and our PC Client Group. Intel Mobile Communications is included in the other Intel architecture operating segments category in the preceding table, while our Software and Services Group is included in the software and services operating segments category. For further information about our acquisitions during the first half of 2011, see “Note 15: Acquisitions.”

No goodwill was impaired during the first half of 2011 and 2010, and the accumulated impairment losses as of July 2, 2011 were $713 million: $341 million associated with our PC Client Group, $279 million associated with our Data Center Group, and $93 million associated with other Intel architecture operating segments. The accumulated impairment losses as of December 25, 2010 were $713 million: $355 million associated with our PC Client Group, $279 million associated with our Data Center Group, and $79 million associated with other Intel architecture operating segments.

21

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 18: Identified Intangible Assets

Identified intangible assets consisted of the following as of July 2, 2011 and December 25, 2010:

	July 2, 2011
			Accumulated
(In Millions)	Gross Assets		Amortization			Net
Acquisition-related developed technology	$	2,534	$	(307	)	$	2,227
Acquisition-related customer relationships		1,710		(117	)		1,593
Acquisition-related trade names		65		(15	)		50
Licensed technology		2,331		(620	)		1,711
Identified intangible assets subject to amortization	$	6,640	$	(1,059	)	$	5,581
Acquisition-related trade names		828		—			828
Other intangible assets		291		—			291
Identified intangible assets not subject to amortization	$	1,119	$	—		$	1,119
Total identified intangible assets	$	7,759	$	(1,059	)	$	6,700
	December 25, 2010
			Accumulated
(In Millions)	Gross Assets		Amortization			Net
Acquisition-related developed technology	$	235	$	(97	)	$	138
Acquisition-related customer relationships		152		(10	)		142
Acquisition-related trade names		46		(10	)		36
Licensed technology		1,204		(765	)		439
Identified intangible assets subject to amortization	$	1,637	$	(882	)	$	755
Other intangible assets		105		—			105
Total identified intangible assets	$	1,742	$	(882	)	$	860

As a result of our acquisition of McAfee during the first quarter of 2011, we recorded $3.6 billion of identified intangible assets. In addition, as a result of our seven other acquisitions during the first half of 2011, we recorded $1.3 billion of identified intangible assets, of which substantially all was from the acquisition of the WLS business of Infineon. For further information about identified intangible assets recorded as a result of acquisitions during the first half of 2011, see “Note 15: Acquisitions.”

In January 2011, we entered into a long-term patent cross-license agreement with NVIDIA. Under the agreement, we received a license to all of NVIDIA’s patents while NVIDIA products are licensed to our patents, subject to exclusions for x86 products, certain chipsets, and certain flash memory technology products. The agreement also included settlement of the existing litigation between the companies as well as broad mutual general releases. We agreed to make payments totaling $1.5 billion to NVIDIA over six years ($300 million in each of January 2011, 2012, and 2013; and $200 million in each of January 2014, 2015, and 2016), which resulted in a liability totaling approximately $1.4 billion, on a discounted basis. In the fourth quarter of 2010, we recognized an expense of $100 million related to the litigation settlement. In the first quarter of 2011, we recognized the remaining amount of $1.3 billion as licensed technology which will be amortized into cost of sales over its estimated useful life of 17 years. As of July 2, 2011, the remaining liability of $1.1 billion is classified within other accrued liabilities and other long-term liabilities, based on the expected timing of the underlying payments.

For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Acquisition-related developed technology	$	137	$	16	$	210	$	32
Licensed technology		43		43		89		85
Cost of sales	$	180	$	59	$	299	$	117
Acquisition-related customer relationships	$	73	$	2	$	107	$	3
Acquisition-related trade names		3		2		5		4
Amortization of acquisition-related intangibles	$	76	$	4	$	112	$	7

22

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Based on the identified intangible assets that are subject to amortization as of July 2, 2011, we expect future amortization expense to be as follows:

	Remainder
(In Millions)	of 2011		2012		2013		2014		2015
Acquisition-related developed technology	$	271	$	522	$	506	$	487	$	208
Licensed technology		90		171		154		143		125
Cost of sales	$	361	$	693	$	660	$	630	$	333
Acquisition-related customer relationships	$	146	$	284	$	264	$	260	$	250
Acquisition-related trade names		5		10		10		10		9
Amortization of acquisition-related intangibles	$	151	$	294	$	274	$	270	$	259

Note 19: Deferred Income

Deferred income at the end of each period was as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Deferred income on shipments of components to distributors	$	759	$	622
Deferred income from software and services operating segments		1,065		125
Current deferred income	$	1,824	$	747
Non-current deferred income from software and services operating segments		361		21
Total deferred income	$	2,185	$	768

We classify non-current deferred income from the software and services operating segments in other long-term liabilities.

Note 20: Chipset Design Issue

In January 2011, as part of our ongoing quality assurance procedures, we identified a design issue with the Intel^® 6 Series Express Chipset family (formerly code-named Cougar Point). The issue affected chipsets sold in the fourth quarter of 2010 and January 2011. We subsequently implemented a silicon fix, and began shipping the updated version of the affected chipset in February 2011. We estimate that the total cost to repair and replace affected materials and systems, located with customers and in the market, will be $733 million. We recorded a charge of $311 million in the fourth quarter of 2010, which comprised $67 million in product costs for the affected chipsets and $244 million to establish a product accrual for this issue. We recognized a charge of $343 million in the first quarter of 2011, primarily related to an additional product accrual for the estimated costs to repair and replace affected materials and systems associated with products sold subsequent to December 25, 2010. In the second quarter of 2011, we recognized an additional $79 million charge as we finalized agreements with customers for reimbursement to repair and replace affected materials and systems. Therefore, we do not expect to have any significant future adjustments to our estimate. The charges incurred in the first half of 2011 are reflected in the results of the PC Client Group operating segment. As of July 2, 2011, the remaining product accrual for the chipset design issue was $346 million and is classified within other accrued liabilities.

Note 21: Borrowings

In 2005, we issued $1.6 billion of junior subordinated convertible debentures (the 2005 debentures) due in 2035. The conversion rate for the 2005 debentures adjusts for certain events outlined in the indenture governing the debentures, such as quarterly dividend distributions in excess of $0.10 per share. As of July 2, 2011, the conversion rate was 32.94 shares of common stock per $1,000 principal amount of debentures, representing an effective conversion price of approximately $30.36 per share of common stock. As of December 25, 2010, the conversion rate was 32.52 shares of common stock per $1,000 principal amount of debentures, representing an effective conversion price of approximately $30.75 per share of common stock.

23

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 22: Employee Equity Incentive Plans

Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests.

In connection with our completed acquisition of McAfee, we assumed their equity incentive plans and issued replacement awards in the first quarter of 2011. The stock options and restricted stock units issued generally retain the terms and conditions of the respective plans under which they were originally granted. We will not grant additional shares under these plans.

In May 2011, stockholders approved an extension of the 2006 Equity Incentive Plan (2006 Plan). Stockholders approved 168 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 596 million shares. The approval also extended the expiration date of the 2006 Plan to June 2014. The maximum shares to be awarded as non-vested shares (restricted stock) or non-vested share units (restricted stock units) was increased to 394 million shares. As of July 2, 2011, 309 million shares remained available for future grant under the 2006 Plan.

The 2006 Stock Purchase Plan allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific dates. Rights to purchase shares are granted during the first and third quarters of each year. In May 2011, stockholders approved an extension of the 2006 Stock Purchase Plan. Stockholders approved 133 million additional shares for issuance, increasing the total shares of common stock available for issuance to 373 million shares. The approval also extended the expiration date of the 2006 Stock Purchase Plan to August 2016. As of July 2, 2011, 263 million shares were available for issuance under the 2006 Stock Purchase Plan.

Share-Based Compensation

We recognized $262 million of share-based compensation in the second quarter of 2011 and $562 million for the first half of 2011 ($232 million in the second quarter of 2010 and $480 million for the first half of 2010).

We estimate the fair value of restricted stock unit awards with time-based vesting using the value of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting. We estimate the fair value of market-based restricted stock units using a Monte Carlo simulation model on the date of grant. We based the weighted average estimated values of restricted stock unit grants, as well as the weighted average assumptions that we used in calculating the fair value, on estimates at the date of grant, as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
	2011			2010			2011			2010
Estimated values	$	19.55		$	22.56		$	19.76		$	22.71
Risk-free interest rate		0.7	%		1.1	%		0.8	%		1.1	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.6	%
Volatility		n/a			n/a			27	%		30	%

We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:

	Stock Options												Stock Purchase Plan
	Three Months Ended						Six Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,			July 2,			June 26,
	2011			2010			2011			2010			2011			2010
Estimated values	$	3.89		$	4.87		$	3.89		$	4.83		$	4.41		$	4.57
Expected life (in years)		5.4			4.7			5.3			5.0			0.5			0.5
Risk-free interest rate		2.3	%		2.5	%		2.3	%		2.6	%		0.2	%		0.2	%
Volatility		26	%		27	%		26	%		28	%		23	%		32	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.7	%		3.4	%		3.2	%

Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each year.

24

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Restricted Stock Unit Awards

Activity with respect to outstanding restricted stock units (RSUs) for the first half of 2011 was as follows:

				Weighted
				Average
	Number of			Grant-Date
(In Millions, Except Per RSU Amounts)	RSUs			Fair Value
December 25, 2010		99.8		$	18.56
Granted		40.7		$	19.76
Assumed in acquisition		5.8		$	20.80
Vested		(33.2	)	$	18.41
Forfeited		(2.8	)	$	19.29
July 2, 2011		110.3		$	19.14

The aggregate fair value of awards that vested during the first half of 2011 was $653 million, which represents the market value of Intel common stock on the date that the restricted stock units vested. The grant date fair value of awards that vested during the first half of 2011 was $611 million. The number of restricted stock units vested includes shares that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. As of July 2, 2011, 4 million of the outstanding restricted stock units were market-based restricted stock units.

Stock Option Awards

Activity with respect to outstanding stock options for the first half of 2011 was as follows:

				Weighted
	Number of			Average
(In Millions, Except Per Option Amounts)	Options			Exercise Price
December 25, 2010		386.4		$	20.45
Granted		13.1		$	21.27
Assumed in acquisition		11.8		$	15.95
Exercised		(22.0	)	$	18.59
Cancelled and forfeited		(6.0	)	$	20.03
Expired		(16.6	)	$	25.01
July 2, 2011		366.7		$	20.25
Options exercisable as of:
December 25, 2010		263.0		$	21.03
July 2, 2011		248.7		$	20.69

During the first half of 2011, the aggregate intrinsic value of stock option exercises was $89 million, which represents the difference between the exercise price and the value of Intel common stock at the time of exercise.

Stock Purchase Plan

Employees purchased 10.3 million shares in the first half of 2011 (9.8 million shares in the first half of 2010) for $181 million ($161 million in the first half of 2010) under the 2006 Stock Purchase Plan.

Note 23: Common Stock Repurchases

Common Stock Repurchase Program

We have an ongoing authorization, since October 2005, as amended, from our Board of Directors to repurchase up to $35 billion in shares of our common stock in open market or negotiated transactions. As of July 2, 2011, $8.2 billion remained available for repurchase under the existing repurchase authorization limit. During the second quarter of 2011, we repurchased 93.3 million shares of common stock at a cost of $2.0 billion. During the first half of 2011, we repurchased 282.4 million shares of common stock at a cost of $6.0 billion. We did not make any common stock repurchases under our authorized plan during the first half of 2010. We have repurchased 3.7 billion shares at a cost of $76 billion since the program began in 1990. Our repurchases in the first half of 2011 were executed in privately negotiated transactions.

25

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Restricted Stock Unit Withholdings

We issue restricted stock units as part of our equity incentive plans. For the majority of restricted stock units granted, the number of shares issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. During the first half of 2011, we withheld 9.2 million shares (9.2 million shares during the first half of 2010) to satisfy $180 million ($219 million during the first half of 2010) of employees’ tax obligations. Although shares withheld are not issued, they are treated as common stock repurchases in our financial statements, as they reduce the number of shares that would have been issued upon vesting.

Note 24: Earnings Per Share

We computed our basic and diluted earnings per common share as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net income available to common stockholders	$	2,954	$	2,887	$	6,114	$	5,329
Weighted average common shares outstanding — basic		5,294		5,563		5,376		5,546
Dilutive effect of employee equity incentive plans		94		96		98		98
Dilutive effect of convertible debt		53		52		53		52
Weighted average common shares outstanding — diluted		5,441		5,711		5,527		5,696
Basic earnings per common share	$	0.56	$	0.52	$	1.14	$	0.96
Diluted earnings per common share	$	0.54	$	0.51	$	1.11	$	0.94

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. Net income available to participating securities was insignificant for all periods presented.

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 our 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 the second quarter of 2011, we excluded 94 million outstanding weighted average stock options (110 million for the first half of 2011) 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 (118 million for the second quarter of 2010 and 152 million for the first half of 2010). 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 the debentures was anti-dilutive. In the future, we could have potentially dilutive shares if the average market price is above the conversion price.

26

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Note 25: Comprehensive Income

The components of total comprehensive income were as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
(In Millions)	2011			2010			2011			2010
Net income	$	2,954		$	2,887		$	6,114		$	5,329
Change in net unrealized holding gain (loss) on available-for-sale investments		(36	)		(16	)		(41	)		38
Change in deferred tax asset valuation allowance		1			(6	)		(14	)		28
Change in net unrealized holding gain (loss) on derivatives		(7	)		(109	)		105			(174	)
Change in net prior service cost		—			(40	)		—			(40	)
Change in actuarial loss		(6	)		(12	)		(13	)		(14	)
Change in net foreign currency translation adjustment		33			—			96			—
Total comprehensive income	$	2,939		$	2,704		$	6,247		$	5,167

The components of accumulated other comprehensive income, net of tax, at the end of each period were as follows:

	July 2,			Dec. 25,
(In Millions)	2011			2010
Accumulated net unrealized holding gain (loss) on available-for-sale investments	$	360		$	401
Accumulated net change in deferred tax asset valuation allowance		189			203
Accumulated net unrealized holding gain (loss) on derivatives		232			127
Accumulated net prior service cost		(36	)		(36	)
Accumulated net actuarial loss		(375	)		(362	)
Accumulated net foreign currency translation adjustment		96			—
Total accumulated other comprehensive income (loss)	$	466		$	333

Note 26: 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 company’s 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 or other events could occur. Unfavorable resolutions could include substantial monetary 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. It is also possible that we could conclude it is in the best interests of our stockholders, employees, and customers to settle one or more such matters, and any such settlement could include substantial payments; however, we have not reached this conclusion with respect to any particular matter at this time.

A number of proceedings generally have challenged and continue to challenge certain of our competitive practices. The allegations in these proceedings vary and are described in more detail in the following paragraphs, but in general contend that we improperly condition price rebates and other discounts on our microprocessors on exclusive or near-exclusive dealing by some of our customers; claim that our software compiler business unfairly prefers Intel microprocessors over competing microprocessors and that, through the use of our compiler and other means, we have caused inaccurate and misleading benchmark results concerning our microprocessors to be disseminated; allege that we unfairly controlled the content and timing of release of various standard computer interfaces developed by Intel in cooperation with other industry participants; and accuse us of engaging in various acts of improper competitive activity in competing against what is referred to as general-purpose graphics processing units, including certain licensing practices and our actions in connection with developing and disclosing potentially competitive technology.

27

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

We believe that we compete lawfully and that our marketing, business, intellectual property, and other challenged practices benefit our customers and our stockholders, and we will continue to conduct a vigorous defense in these proceedings. While we have settled some of these matters, the distractions caused by challenges to these practices from the remaining matters are undesirable, and the legal and other costs associated with defending and resolving 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.

Government Competition Matters and Related Consumer Class Actions

In 2001, the European Commission (EC) commenced an investigation regarding claims by Advanced Micro Devices, Inc. (AMD) that we used unfair business practices to persuade clients to buy our microprocessors. Since that time, we have received numerous requests for information and documents from the EC, and we have responded to each of those requests. The EC issued a Statement of Objections in July 2007 and held a hearing on that Statement in March 2008. The EC issued a Supplemental Statement of Objections in July 2008.

In May 2009, the EC issued a decision finding that we had violated Article 82 of the EC Treaty and Article 54 of the European Economic Area Agreement. In general, the EC found that we violated Article 82 (later renumbered as Article 102 by a new treaty) by offering alleged “conditional rebates and payments” that required our customers to purchase all or most of their x86 microprocessors from us. The EC also found that we violated Article 82 by making alleged “payments to prevent sales of specific rival products.” The EC imposed a fine in the amount of €1.06 billion ($1.447 billion as of May 2009), which we subsequently paid during the third quarter of 2009, and also ordered us to “immediately bring to an end the infringement referred to in” the EC decision. In the second quarter of 2009, we recorded the related charge within marketing, general and administrative. We strongly disagree with the EC’s decision, and we appealed the decision to the Court of First Instance (which has been renamed the General Court) in July 2009. The EC filed an answer to our reply brief in November 2010. The court’s decision, after oral argument, is expected in late 2012 or early 2013.

The EC decision exceeds 500 pages and does not contain specific direction on whether or how we should modify our business practices. Instead, the decision states that we should “cease and desist” from further conduct that, in the EC’s opinion, would violate applicable law. We have taken steps, which are subject to the EC’s ongoing review, to comply with that decision pending appeal. We opened discussions with the EC to better understand the decision and to explain changes to our business practices. Based on our current understanding and expectations, we do not believe that any such changes will be material to our financial position, results, or cash flows.

In June 2005, we received an inquiry from the Korea Fair Trade Commission (KFTC) requesting documents from our Korean subsidiary related to marketing and rebate programs that we entered into with Korean PC manufacturers. In February 2006, the KFTC initiated an inspection of documents at our offices in Korea. In September 2007, the KFTC served on us an Examination Report alleging that sales to two customers during parts of 2002—2005 violated Korea’s Monopoly Regulation and Fair Trade Act. In December 2007, we submitted our written response to the KFTC. In February 2008, the KFTC’s examiner submitted a written reply to our response. In March 2008, we submitted a further response. In April 2008, we participated in a pre-hearing conference before the KFTC, and we participated in formal hearings in May and June 2008. In June 2008, the KFTC announced its intent to fine us approximately $25 million for providing discounts to Samsung Electronics Co., Ltd. and TriGem Computer Inc. In November 2008, the KFTC issued a final written decision concluding that our discounts had violated Korean antitrust law and imposing a fine on us of approximately $20 million, which we paid in January 2009. In December 2008, we appealed this decision by filing a lawsuit in the Seoul High Court seeking to overturn the KFTC’s decision. We expect a decision from the court in 2011.

In November 2009, the State of New York filed a lawsuit against us in the U.S. District Court for the District of Delaware. The lawsuit alleges that we violated federal antitrust laws; the New York Donnelly Act, which prohibits contracts or agreements to monopolize; and the New York Executive Law, which proscribes underlying violations of federal and state antitrust laws. The lawsuit alleges that we engaged in a systematic worldwide campaign of illegal, exclusionary conduct to maintain monopoly power and prices in the market for x86 microprocessors through the use of various alleged actions, including exclusive or near-exclusive agreements from large computer makers in exchange for “loyalty payments” and “bribes,” and other alleged threats and retaliation. The plaintiff claims that our alleged actions harmed consumers, competition, and innovation. The lawsuit seeks a declaration that our alleged actions have violated the federal and New York antitrust laws and the New York Executive Law; an injunction to prevent further alleged unlawful acts; unspecified damages in an amount to be proven at trial, trebled as provided for by law, restitution, and disgorgement; $1 million for each violation of the Donnelly Act proven by the plaintiff, and attorneys’ fees and costs. We disagree with the State of New York’s allegations and claims and we intend to conduct a vigorous defense of the lawsuit. We filed our answer in January 2010, and the court has scheduled trial to begin in this matter in February 2012.

28

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

In December 2010, the State of New York requested the court’s permission to amend its complaint to expand the scope of parties covered by its Donnelly Act and Executive Law claims. We opposed that request, and in May 2011, the court denied the State of New York permission to amend its complaint. In May 2011, we filed three motions, the first seeking partial summary judgment on the ground that the statute of limitations is four years on the plaintiff’s federal antitrust claim and three years on its Donnelly Act and Executive Law claims, the second seeking dismissal of all claims brought on behalf of non-State of New York public entities on the ground that the State of New York did not obtain proper consent to represent them, and the third seeking judgment on the pleadings on the ground that the State of New York cannot recover damages on behalf of New York consumers for certain claims. We anticipate filing additional motions that could impact some or all of the State of New York’s claims. Because fact and expert discovery are continuing and resolution of the motions may materially impact the scope and nature of plaintiff’s claims, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from this litigation.

At least 82 separate class actions have been filed in the U.S. District Courts for the Northern District of California, Southern District of California, District of Idaho, District of Nebraska, District of New Mexico, District of Maine, and District of Delaware, as well as in various California, Kansas, and Tennessee state courts. These actions generally repeat the allegations made in a now-settled lawsuit filed against Intel by AMD in June 2005 in the U.S. District Court for the District of Delaware (AMD litigation). Like the AMD litigation, these class-action suits allege that Intel engaged in various actions in violation of the Sherman Act and other laws by, among other things, providing discounts and rebates to our manufacturer and distributor customers conditioned on exclusive or near exclusive dealings that allegedly unfairly interfered with AMD’s ability to sell its microprocessors, interfering with certain AMD product launches, and interfering with AMD’s participation in certain industry standards-setting groups. The class actions allege various consumer injuries, including that consumers in various states have been injured by paying higher prices for computers containing our microprocessors. We dispute the class-action claims and intend to defend the lawsuits vigorously.

All of the federal class actions and the Kansas and Tennessee state court class actions have been transferred by the Multidistrict Litigation Panel to the U.S. District Court in Delaware for all pretrial proceedings and discovery (MDL proceedings). The Delaware district court has appointed a Special Master to address issues in the MDL proceedings, as assigned by the court. In January 2010, the plaintiffs in the Delaware action filed a motion for sanctions for our alleged failure to preserve evidence. This motion largely copies a motion previously filed by AMD in the AMD litigation, which has settled. The plaintiffs in the MDL proceedings also moved for certification of a class of members who purchased certain personal computers containing products sold by Intel. In July 2010, the Special Master issued a Report and Recommendation (Class Report) denying the motion to certify a class. The MDL plaintiffs filed objections to the Special Master’s Class Report, and a hearing on these objections was held in March 2011. The Delaware district court has not yet ruled on those objections. All California class actions have been consolidated in the Superior Court of California in Santa Clara County. The plaintiffs in the California actions have moved for class certification, which we are in the process of opposing. At our request, the court in the California actions has agreed to delay ruling on this motion until after the Delaware district court rules on the similar motion in the MDL proceedings. Based on the procedural posture and the nature of the cases, including, but not limited to, the fact that the Special Master’s Class Report is on review in the Delaware district court, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from these matters.

Lehman Matter

In November 2009, representatives of the Lehman Brothers OTC Derivatives Inc. (LOTC) bankruptcy estate advised us informally that the estate was considering a claim against us arising from a 2008 contract between Intel and LOTC. Under the terms of the 2008 contract, Intel prepaid $1.0 billion to LOTC, in exchange for which LOTC was required to purchase and deliver to Intel the number of shares of Intel common stock that could be purchased for $1.0 billion at the discounted volume-weighted average price specified in the contract for the period September 2, 2008 to September 26, 2008. LOTC’s performance under the contract was secured by $1.0 billion of cash collateral. Under the terms of the contract, LOTC was obligated to deliver approximately 50 million shares of our common stock to us on September 29, 2008. LOTC failed to deliver any shares of our common stock, and we exercised our right to setoff against the $1.0 billion collateral. LOTC has not initiated any action against us to date, but in February 2010, LOTC served a subpoena on us in connection with this transaction. In October 2010, LOTC demanded that Intel pay it at least $417 million. In September 2010, we entered into an agreement with LOTC that tolled any applicable statutes of limitations for 90 days and precluded the parties from commencing any formal proceedings to prosecute any claims against each other in any forum during that period. The tolling agreement with LOTC was extended several times, but lapsed in June 2011. We continue to believe that we acted appropriately under our agreement with LOTC, and we intend to defend any claim to the contrary. No complaint has been filed and we are in the early stages of evaluating this dispute, and accordingly are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from this matter.

29

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

Frank T. Shum v. Intel Corporation, Jean-Marc Verdiell, and LightLogic, Inc.

We acquired LightLogic, Inc. in May 2001. Frank Shum subsequently sued us, LightLogic, and LightLogic’s founder, Jean-Marc Verdiell, claiming that much of LightLogic’s intellectual property is based on alleged inventions that Shum conceived while he and Verdiell were partners at Radiance Design, Inc. Shum has alleged claims for fraud, breach of fiduciary duty, fraudulent concealment, and breach of contract. Shum also seeks alleged correction of inventorship of seven patents acquired by us as part of the LightLogic acquisition. In January 2005, the U.S. District Court for the Northern District of California denied Shum’s inventorship claim, and thereafter granted our motion for summary judgment on Shum’s remaining claims. In August 2007, the U.S. Court of Appeals for the Federal Circuit vacated the District Court’s rulings and remanded the case for further proceedings. In October 2008, the District Court granted our motion for summary judgment on Shum’s claims for breach of fiduciary duty and fraudulent concealment, but denied our motion on Shum’s remaining claims. A jury trial on Shum’s remaining claims took place in November and December 2008. In pre-trial proceedings and at trial, Shum requested monetary damages against the defendants in amounts ranging from $31 million to $931 million, and his final request to the jury was for as much as $175 million. Following deliberations, the jury was unable to reach a verdict on most of the claims. With respect to Shum’s claim that he is the proper inventor on certain LightLogic patents now assigned to us, the jury agreed with Shum on some of those claims and was unable to reach a verdict regarding the remaining claims. In April 2009, the court granted defendants’ motions for judgment as a matter of law. Shum appealed that ruling to the U.S. Court of Appeals for the Federal Circuit, which heard oral arguments in August 2010 and affirmed the trial court’s orders in favor of Intel in December 2010. In January 2011, Shum petitioned the Federal Circuit for a re-hearing and re-hearing en banc. In February 2011, the Federal Circuit denied Shum’s request. Shum petitioned the U.S. Supreme Court for review in May 2011, and we are preparing our response. We will continue to defend the lawsuit vigorously.

Note 27: Operating Segment Information

Our operating segments in effect as of July 2, 2011 include:

• PC Client Group

• Data Center Group

• Intel Mobile Communications

• Embedded and Communications Group

• Netbook and Tablet Group

• Digital Home Group

• Ultra-Mobility Group

• McAfee

• Wind River Software Group

• Software and Services Group

• Non-Volatile Memory Solutions Group

In the first quarter of 2011, we formed the Netbook and Tablet Group, which includes microprocessors and related chipsets designed for the netbook and tablet market segments, and we divested the Digital Health Group (for further information see “Note 16: Divestitures”). Prior-period amounts have been adjusted retrospectively to reflect these operating segment changes as well as other minor reorganizations. Additionally, in the first quarter of 2011, we formed the Intel Mobile Communications and McAfee operating segments as a result of acquisitions (for further information see “Note 15: Acquisitions”).

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 aggregate and disclose the financial results of the following non-reportable operating segments within “other Intel architecture operating segments”: Intel Mobile Communications, Embedded and Communications Group, Netbook and Tablet Group, Digital Home Group, and Ultra-Mobility Group. We also aggregate and disclose the financial results of the following non-reportable operating segments within “software and services operating segments”: McAfee, Wind River Software Group, and Software and Services Group. Each of these aggregated operating segments does not meet the quantitative thresholds to qualify as reportable operating segments; however, we have elected to disclose the aggregation of these non-reportable operating segments. 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 notebook and desktop (including high-end enthusiast PCs) 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 mobile phone components such as baseband processors, radio frequency transceivers, and power management chips; microprocessors and related chipsets designed for embedded applications; microprocessors and related chipsets designed for the netbook and tablet market segments; products designed for the consumer electronics market segment; and products designed for the handheld market segment.

• Software and services operating segments. Includes software products for endpoint security, system security, consumer security, network security, and risk and compliance from our McAfee business; software optimized products for the embedded and handheld market segments; and software products and services that promote Intel^® architecture as the platform of choice for software development.

30

INTEL CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS — Unaudited (Continued)

We have sales and marketing, manufacturing, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments, and the allocated expenses are included in the operating results reported below.

The “All other” category includes revenue, expenses, and charges such as:

• results of operations from our Non-Volatile Memory Solutions Group that includes NAND flash memory products for use in a variety of devices;

• a portion of profit-dependent compensation and other expenses not allocated to the operating segments;

• divested businesses for which discrete operating results are not reviewed by our CODM;

• results of operations of seed businesses that support our initiatives; and

• acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.

The CODM does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue, and, accordingly, there is none to be reported. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. The accounting policies for segment reporting are the same as for Intel as a whole.

Segment information is summarized as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
(In Millions)	2011			2010			2011			2010
Net revenue
PC Client Group
Microprocessor revenue	$	6,533		$	5,902		$	13,356		$	11,594
Chipsets, motherboard, and other revenue		1,788			1,599			3,586			3,282
		8,321			7,501			16,942			14,876
Data Center Group
Microprocessor revenue		2,054			1,797			4,115			3,349
Chipsets, motherboard, and other revenue		382			317			785			636
		2,436			2,114			4,900			3,985
Other Intel architecture operating segments		1,389			755			2,538			1,429
Software and services operating segments		511			65			751			123
All other		375			330			748			651
Total net revenue	$	13,032		$	10,765		$	25,879		$	21,064
Operating income (loss)
PC Client Group	$	3,284		$	3,333		$	6,827		$	6,420
Data Center Group		1,204			1,061			2,426			1,894
Other Intel architecture operating segments		(33	)		76			(69	)		102
Software and services operating segments		(14	)		(48	)		(66	)		(92	)
All other		(506	)		(441	)		(1,025	)		(895	)
Total operating income (loss)	$	3,935		$	3,981		$	8,093		$	7,429

31

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is provided in addition to the accompanying consolidated condensed financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. MD&A is organized as follows:

• Overview. Discussion of our business and overall analysis of financial and other highlights affecting the company in order to provide context for the remainder of MD&A.

• Strategy. Our overall strategy.

• Critical Accounting Estimates. Accounting estimates that we believe are most important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.

• Results of Operations. An analysis of our financial results comparing the three and six months ended July 2, 2011 to the three and six months ended June 26, 2010. In the first quarter of 2011, we formed the Netbook and Tablet Group (NTG), which includes microprocessors and related chipsets designed for the netbook and tablet market segments. NTG results were previously included in the results of the PC Client Group and are now included in the other Intel architecture operating segments category. The analysis of our operating segment results of operations reflects this reorganization and prior-period amounts have been adjusted retrospectively.

• Business Outlook. Our expectations for selected financial items for the third quarter of 2011 and the 2011 full year.

• Liquidity and Capital Resources. An analysis of changes in our balance sheets and cash flows, and discussion of our financial condition and potential sources of liquidity.

• Fair Value of Financial Instruments. Discussion of the methodologies used in the valuation of our financial instruments.

The various sections of this MD&A contain a number of forward-looking statements. Words such as “expects,” “goals,” “plans,” “believes,” “continues,” “may,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Such statements are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this filing and particularly in the “Business Outlook” section and in “Risk Factors” in Part II, Item 1A of this Form 10-Q. Our actual results may differ materially, and these forward-looking statements do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that had not been completed as of August 8, 2011.

Overview

Our results of operations were as follows:

(Dollars in Millions)	Q2 2011			Q1 2011			Q2 2010
Net revenue	$	13,032		$	12,847		$	10,765
Gross margin	$	7,902		$	7,885		$	7,235
Gross margin percentage		60.6	%		61.4	%		67.2	%
Operating income	$	3,935		$	4,158		$	3,981
Net income	$	2,954		$	3,160		$	2,887

The second quarter of 2011 was another record quarter for revenue as the trends of strength in our server business, increased demand from the enterprise market segment and emerging markets, offset by weakness in the mature market consumer segment have continued throughout the first half of 2011. In the second quarter of 2011 we achieved double digit percentage revenue growth in our Data Center Group and PC Client Group compared to the second quarter of 2010. Average selling prices for microprocessors in our PC Client Group have increased from last year in part from the continued successful ramp of our 2nd generation Intel^® Core^TM processor products (formerly code-named Sandy Bridge). Our second quarter results also include a full quarter of revenue for McAfee, Inc. and the Wireless Solutions (WLS) business of Infineon Technologies AG, which we acquired during the first quarter of 2011. We continue to believe we are on track for another year of revenue growth over 20 percent.

32

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Gross margin in the second quarter of 2011 was slightly down from the first quarter as start-up costs for our 22nm process technology reached an expected peak and platform (microprocessor and chipset) unit costs were higher on the ramp of additional 32nm factories. These negative impacts to our gross margin were mostly offset by lower charges to repair and replace materials and systems impacted by a design issue related to our Intel^® 6 Series Express Chipset family. We expect our gross margin percentage to increase in the third quarter on seasonally higher volume, lower start-up costs for our 22nm process technology, lack of charges related to the chipset design issue, and lower platform unit costs.

We increased our expectation for research and development and marketing and general and administrative expenses in 2011 from $15.7 billion to $16.2 billion, primarily on expected investments in areas that we believe will drive future revenue growth. These investments are focused on redefining the PC category with new form factors, such as Ultrabook^TM system designs; strengthening our server product offerings; strengthening our product offerings for tablets and smartphones; as well as extending our process technology leadership. We also increased our expectation for capital spending this year from our previous estimate of $10.2 billion to $10.5 billion, as we expect to put capabilities in place that will allow us to re-use capital in succeeding process technologies.

The cash generation from our business remained strong with cash from operations of $4.0 billion in the second quarter of 2011. From a financial condition perspective, we ended the second quarter of 2011 with an investment portfolio of $11.5 billion, consisting of cash and cash equivalents, short-term investments, and marketable debt instruments included in trading assets. During the second quarter of 2011, we purchased $2.5 billion in capital assets, repurchased $2.0 billion of common stock through our common stock repurchase program, and returned $1.0 billion to stockholders through dividends. In July, the Board of Directors declared a dividend of $0.21 per common share for the third quarter of 2011(a per share increase of 16% from the dividend paid in the second quarter).

Strategy

Our goal is to be the preeminent computing solutions company that powers the worldwide digital economy. We believe that the proliferation of the Internet and cloud computing have driven fundamental changes in the computing industry. We are transforming from a company with a primary focus on the design and manufacture of semiconductor chips for PCs and servers to a computing company that delivers complete solutions in the form of hardware and software platforms and supporting services. The number and variety of devices connected to the Internet is growing, and computing is becoming an increasingly personal experience. End users value consistency across devices that connect seamlessly and effortlessly to the Internet and to each other. We will help to enable this experience by innovating around three pillars of computing: energy-efficient performance, connectivity, and security.

• Energy-Efficient Performance. We are focusing on improved energy-efficient performance for computing and communications systems and devices. Improved energy-efficient performance involves balancing higher performance with lower power consumption.

• Connectivity. We are positioning our business to take advantage of the growth in devices that compute and connect to the Internet. In the first quarter of 2011, we acquired the WLS business of Infineon. This acquisition enables us to offer a portfolio of products that covers a broad range of wireless connectivity options by combining the Intel^® WiFi and Intel^® WiMAX technologies with WLS’ 2G and 3G technologies, and creates a combined path to accelerate industry adoption of 4G LTE.

• Security. Our goal is to enhance security features through a combination of hardware and software solutions. This may include identity protection and fraud deterrence; detection and prevention of malware; securing data and assets; as well as system recovery and enhanced security patching. In the first quarter of 2011, we acquired McAfee. We believe this acquisition accelerates and enhances our hardware and software security solutions, improving the overall security of our platforms.

To succeed in the changing computing environment, we have the following key objectives:

• Strive to ensure that Intel technology remains the best choice for the PC as well as cloud computing and the data center. Our Ultrabook^TM system designs will enable a new user experience by accelerating a new class of mobile computers that use low power processors. These computers will combine the performance and capabilities of today’s laptops and tablets in a thin and light form factor that is highly responsive, secure, and seamlessly connects to the Internet and other enabled devices.

• Expand platforms into adjacent market segments to bring compelling new solutions to the smartphone, the tablet, the TV, the car, and the embedded world.

• Enable devices that connect to the Internet and to each other to create a continuum of personal computing. This continuum would give consumers a set of secure, consistent, and personalized computing experiences.

• Positively impact the world through our actions and the application of our energy-efficient technology.

33

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

We will use our core assets to meet these objectives. Our core assets include our silicon and process technology, our architecture and platforms, our global presence, our strong relationships across the industry, and our brand recognition. We believe that applying these core assets to our key focus areas provides us with the scale, capacity, and global reach to establish new technologies and respond to customers’ needs quickly. Some of our core assets and key focus areas are:

• Silicon and Manufacturing Technology Leadership. We have long been a leader in silicon process technology and manufacturing, and we aim to continue our lead through investment and innovation in this critical area. We drive a regular two-year upgrade cycle—introducing a new microarchitecture approximately every two years and ramping the next generation of silicon process technology in the intervening years. We refer to this as our “tick-tock” technology development cadence. As we continue to drive Moore’s Law over the next several years, we believe that the value of this leadership will increase. We have accelerated the Intel^® Atom^TM processor-based system-on-chip roadmap for netbooks, smartphones, tablets, and other devices, from 32nm through 22nm to 14nm within 3 successive years. We expect that this acceleration will result in a significant reduction in transistor leakage, lower active power, and an increase of transistor density to enable more powerful smartphones, tablets, and netbooks with more features and longer battery life. Additionally, we aim to have the best process technology, and unlike most semiconductor companies, we primarily manufacture our products in our own facilities. This allows us to optimize performance, reduce our time to market, and scale new products more rapidly.

• Architecture and Platforms. We are now developing a wide range of solutions for devices that span the computing continuum, from PCs, Ultrabook systems, tablets, and smartphones to smart TVs and in-vehicle infotainment systems and beyond. Users want computing experiences that are consistent and devices that are interoperable. Users and developers value consistency of architecture, which provides a common framework that allows for reduced time to market, with the ability to leverage technologies across multiple form factors. We believe that we can meet the needs of both users and developers by offering Intel^® architecture-based computing solutions across the computing continuum. We continue to invest in improving Intel architecture so that we can deliver increased value to our customers in existing market segments and also expand the capabilities of the architecture to meet end-user and customer needs in adjacent market segments. Increasingly, we are delivering our architecture in the form of platforms. Platforms include not only the microprocessor, but other critical hardware and software ingredients that are necessary to create computing solutions. We are expanding our platform capabilities with connectivity solutions, new types of user interfaces, new features and capabilities, and complementary software.

• Software. We enable and advance the computing ecosystem by providing development tools and support to help software developers create software applications and operating systems that take advantage of our platforms. We seek to expedite growth in various market segments, such as the embedded and handheld market segments, through our software offerings. Additionally, we have collaborated with other companies to develop software platforms optimized for our Intel^® Atom^TM processors and that support multiple hardware architectures as well as multiple operating systems.

• Customer Orientation. Our strategy focuses on developing our next generation of products based on the needs and expectations of our customers. In turn, our products help enable the design and development of new form factors and usage models for businesses and consumers. We offer platforms that incorporate various components designed and configured to work together to provide an optimized solution compared to components that are used separately. Additionally, we promote industry standards that we believe will yield innovation and improved technologies for users.

• Strategic Investments. We make investments in companies around the world that we believe will generate financial returns, further our strategic objectives, and support our key business initiatives. Our investments, including those made through our Intel Capital program, generally focus on investing in companies and initiatives to stimulate growth in the digital economy, create new business opportunities for Intel, and expand global markets for our products.

• Stewardship. We are committed to developing energy-efficient technology solutions that can be used to address major global problems while reducing our environmental impact. We are also committed to helping transform education globally through our technology, program, and policy leadership, as well as funding through the Intel Foundation. In addition, we strive to cultivate a work environment where engaged, energized employees can thrive in their jobs and in their communities.

Our continued investment in developing our assets and execution on key focus areas will strengthen our competitive position as we enter and expand into new market segments. We believe that these new market segments will result in demand that is incremental to that of microprocessors designed for notebook and desktop computers. We also believe that increased Internet traffic and use of cloud computing create a need for greater server infrastructure, including server products optimized for energy-efficient performance and virtualization.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Critical Accounting Estimates

The methods, estimates, and judgments that we use in applying our accounting policies have a significant impact on the results that we report in our consolidated condensed financial statements. Some of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Our most critical accounting estimates include:

• the valuation of non-marketable equity investments and the determination of other-than-temporary impairments, which impact gains (losses) on equity method investments, net, or gains (losses) on other equity investments, net when we record impairments;

• the assessment of recoverability of long-lived assets (property, plant and equipment; goodwill; and identified intangibles), which impacts gross margin or operating expenses when we record asset impairments or accelerate their depreciation or amortization;

• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions), which impact our provision for taxes;

• the valuation of inventory, which impacts gross margin; and

• the recognition and measurement of loss contingencies, which impact gross margin or operating expenses when we recognize a loss contingency, revise the estimate for a loss contingency, or record an asset impairment.

Below, we discuss these policies further, as well as the estimates and judgments involved.

Non-Marketable Equity Investments

We regularly invest in non-marketable equity instruments of private companies, which range from early-stage companies that are often still defining their strategic direction to more mature companies with established revenue streams and business models. The carrying value of our non-marketable equity investment portfolio, excluding equity derivatives, totaled $2.7 billion as of July 2, 2011 ($2.6 billion as of December 25, 2010). Approximately half of this balance as of July 2, 2011 was concentrated in companies in the flash memory market segment. Our flash memory market segment investments include our investment in IM Flash Technologies, LLC (IMFT) and IM Flash Singapore, LLP (IMFS) of $1.3 billion ($1.5 billion as of December 25, 2010). For further information, see “Note 11: Equity Method Investments” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

Our non-marketable equity investments are recorded using the cost method or the equity method of accounting, depending on the facts and circumstances of each investment. Our non-marketable equity investments are classified within other long-term assets on the consolidated condensed balance sheets.

Non-marketable equity investments are inherently risky, and their success is dependent on product development, market acceptance, operational efficiency, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors. The companies could fail or not be able to raise additional funds when needed, or they may receive lower valuations with less favorable investment terms than previous financings. These events could cause our investments to become impaired. In addition, financial market volatility could negatively affect our ability to realize value in our investments through liquidity events such as initial public offerings, mergers, and private sales. For further information about our investment portfolio risks, see “Risk Factors” in Part II, Item 1A of this
Form 10-Q.

We determine the fair value of our non-marketable equity investments quarterly for disclosure purposes; however, the investments are recorded at fair value only if an impairment charge is recognized. We determine the fair value of our non-marketable equity investments using the market and income approaches. The market approach includes the use of financial metrics and ratios of comparable public companies, such as projected revenues, earnings, and comparable performance multiples. The selection of comparable companies requires management judgment and is based on a number of factors, including comparable companies’ sizes, growth rates, industries, development stages, and other relevant factors. The income approach includes the use of a discounted cash flow model, which may include one or multiple discounted cash flow scenarios and requires the following significant estimates for the investee: revenue, based on assumed market segment size and assumed market segment share; expenses, capital spending, and other costs; and discount rates based on the risk profile of comparable companies. Estimates of market segment size, market segment share, expenses, capital spending, and other costs are developed using historical data and available market data. The valuation of our non-marketable equity investments also takes into account variables such as conditions reflected in the capital markets, recent financing activities by the investees, the investees’ capital structures, and the terms of the investees’ issued interests.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

For non-marketable equity investments, the measurement of fair value requires significant judgment and includes quantitative and qualitative analysis of identified events or circumstances that impact the fair value of the investment, such as:

• the investee’s revenue and earnings trends relative to pre-defined milestones and overall business prospects;

• the technological feasibility of the investee’s products and technologies;

• the general market conditions in the investee’s industry or geographic area, including adverse regulatory or economic changes;

• factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and the rate at which the investee is using its cash; and

• the investee’s receipt of additional funding at a lower valuation.

If the fair value of an investment is below our carrying value, we determine if the investment is other than temporarily impaired based on our quantitative and qualitative analysis, which includes assessing the severity and duration of the impairment and the likelihood of recovery before disposal. If the investment is considered to be other than temporarily impaired, we write down the investment to its fair value. Impairments of non-marketable equity investments were $8 million in the second quarter of 2011 ($22 million in the first half of 2011). Over the past 12 quarters, including the second quarter of 2011, impairments of non-marketable equity investments ranged from $8 million to $896 million per quarter. This range included impairments of $896 million during the fourth quarter of 2008, primarily related to a $762 million impairment charge on our investment in Clearwire Communications, LLC.

IMFT/IMFS

IMFT and IMFS are variable interest entities that are designed to manufacture and sell NAND products to Intel and Micron Technology, Inc. at manufacturing cost. We determine the fair value of our investment in IMFT/IMFS using the income approach based on a weighted average of multiple discounted cash flow scenarios of our NAND Solutions Group business, which requires the use of unobservable inputs. Unobservable inputs that require us to make our most difficult and subjective judgments are the estimates for projected revenue and discount rate. Changes in management estimates for these unobservable inputs have the most significant effect on the fair value determination. We have not had an other-than-temporary impairment of our investment in IMFT/IMFS.

Long-Lived Assets

Property, Plant and Equipment

We assess property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying value of the assets or the asset grouping may not be recoverable. Factors that we consider in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in our use of the assets. We measure the recoverability of assets that will continue to be used in our operations by comparing the carrying value of the asset grouping to our estimate of the related total future undiscounted net cash flows. If an asset grouping’s carrying value is not recoverable through the related undiscounted cash flows, the asset grouping is considered to be impaired. The impairment is measured by comparing the difference between the asset grouping’s carrying value and its fair value. Property, plant and equipment is considered a non-financial asset and is recorded at fair value only if an impairment charge is recognized.

Impairments are determined for groups of assets related to the lowest level of identifiable independent cash flows. Due to our asset usage model and the interchangeable nature of our semiconductor manufacturing capacity, we must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, as we make manufacturing process conversions and other factory planning decisions, we must make subjective judgments regarding the remaining useful lives of assets, primarily process-specific semiconductor manufacturing tools and building improvements. When we determine that the useful lives of assets are shorter than we had originally estimated, we accelerate the rate of depreciation over the assets’ new, shorter useful lives. Over the past 12 quarters, including the second quarter of 2011, impairments and accelerated depreciation of long-lived assets ranged from $10 million to $75 million per quarter.

Goodwill

Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is allocated to our reporting units based on relative fair value of the future benefit of the purchased operations to our existing business units as well as the acquired business unit.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

We perform an annual review in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if the carrying value of the recorded goodwill is impaired. Our impairment review process compares the fair value of the reporting unit in which goodwill resides to its carrying value. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Our reporting units are consistent with the operating segments identified in “Note 27: Operating Segment Information” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, we would record an impairment loss equal to the difference.

Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. Our impairment review process uses the income method to estimate the reporting unit’s fair value and is based on a discounted future cash flow approach that uses the following reporting unit estimates: revenue, based on assumed market segment growth rates and Intel’s assumed market segment share; estimated costs; and appropriate discount rates based on the reporting units’ weighted average cost of capital as determined by considering the observable weighted average cost of capital of comparable companies. Our estimates of market segment growth, our market segment share and costs are based on historical data, various internal estimates and a variety of external sources, and are developed as part of our routine long-range planning process. The same estimates are also used in planning for our long-term manufacturing and assembly and test capacity needs as part of our capital budgeting process and for both long-term and short-term business planning and forecasting. We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available comparable market data. In determining the carrying value of the reporting unit, we must include an allocation of our manufacturing and assembly and test assets because of the interchangeable nature of our manufacturing and assembly and test capacity. This allocation is based on each reporting unit’s relative percentage utilization of our manufacturing and assembly and test assets.

During the fourth quarter of each of the prior two fiscal years, we completed our annual impairment reviews and concluded that goodwill was not impaired in either of these years.

Identified Intangibles

We make judgments about the recoverability of purchased finite lived intangible assets whenever events or changes in circumstances indicate that an impairment may exist. Recoverability of finite lived intangible assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. We review indefinite lived intangible assets for impairment quarterly and whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of indefinite lived intangible assets is measured by comparison of the carrying amount of the asset to the future discounted cash flows the asset is expected to generate. If it is determined that an individual asset is impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.

The assumptions and estimates used to determine future values and remaining useful lives of our intangible and other long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. Based on our impairment reviews of our intangible assets, we have not recognized any impairment charges in 2011 or 2010.

Income Taxes

We must make estimates and judgments in determining the provision for taxes for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes, as well as the interest and penalties related to uncertain tax positions. Significant changes in these estimates may result in an increase or decrease to our tax provision in a subsequent period.

We must assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. We believe that we will ultimately recover the deferred tax assets recorded on our consolidated condensed balance sheets. However, should there be a change in our ability to recover our deferred tax assets, our tax provision would increase in the period in which we determined that the recovery was not likely. Recovery of a portion of our deferred tax assets is impacted by management’s plans with respect to holding or disposing of certain investments; therefore, changes in management’s plans with respect to holding or disposing of investments could affect our future provision for taxes.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If we determine that a tax position will more likely than not be sustained on audit, the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors such as changes in facts or circumstances, changes in tax law, new audit activity, and effectively settled issues. Determining whether an uncertain tax position is effectively settled requires judgment. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Inventory

The valuation of inventory requires us to estimate obsolete or excess inventory as well as inventory that is not of saleable quality. The determination of obsolete or excess inventory requires us to estimate the future demand for our products. The estimate of future demand is compared to work-in-process and finished goods inventory levels to determine the amount, if any, of obsolete or excess inventory. As of July 2, 2011, we had total work-in-process inventory of $1.5 billion and total finished goods inventory of $2.0 billion. The demand forecast is included in the development of our short-term manufacturing plans to enable consistency between inventory valuation and build decisions. Product-specific facts and circumstances reviewed in the inventory valuation process include a review of the customer base, the stage of the product life cycle of our products, consumer confidence, and customer acceptance of our products, as well as an assessment of the selling price in relation to the product cost. If our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, we could be required to write off inventory, which would negatively impact our gross margin.

In order to determine what costs can be included in the valuation of inventory, we must determine normal capacity at our manufacturing and assembly and test facilities, based on historical loadings compared to total available capacity. If the factory loadings are below the established normal capacity level, a portion of our manufacturing overhead costs would not be included in the cost of inventory, and therefore would be recognized as cost of sales in that period, which would negatively impact our gross margin. We refer to these costs as excess capacity charges. Over the past 12 quarters, excess capacity charges ranged from zero to $680 million per quarter.

Loss Contingencies

We are subject to various legal and administrative proceedings and asserted and potential claims, accruals related to repair or replacement of parts in connection with product errata, as well as product warranties and potential asset impairments (loss contingencies) that arise in the ordinary course of business. An estimated loss from such contingencies is recognized as a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated based on the best information available at that time. A loss contingency is disclosed when there is at least a reasonable possibility that a loss has been incurred. The outcomes of legal and administrative proceedings and claims, and the estimation of product warranties and asset impairments, are subject to significant uncertainty. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. With respect to estimating the losses associated with repairing and replacing parts in connection with product errata, we make judgments with respect to customer return rates, costs to repair or replace parts, and where the product is in our customer’s manufacturing process. At least quarterly, we review the status of each significant matter, and we may revise our estimates as additional information becomes available. These revisions could have a material impact on our results of operations and financial position.

Accounting Changes and Recent Accounting Standards

For a description of accounting changes see “Note 3: Accounting Changes” and “Note 4: Recent Accounting Standards” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Results of Operations - Second Quarter of 2011 Compared to Second Quarter of 2010

The following table sets forth certain consolidated condensed statements of operations data as a percentage of net revenue for the periods indicated:

	Q2 2011						Q2 2010
				% of Net					% of Net
(Dollars in Millions, Except Per Share Amounts)	Dollars			Revenue			Dollars		Revenue
Net revenue	$	13,032			100.0	%	$	10,765		100.0	%
Cost of sales		5,130			39.4	%		3,530		32.8	%
Gross margin		7,902			60.6	%		7,235		67.2	%
Research and development		1,986			15.2	%		1,666		15.5	%
Marketing, general and administrative		1,905			14.6	%		1,584		14.7	%
Amortization of acquisition-related intangibles		76			0.6	%		4		—	%
Operating income		3,935			30.2	%		3,981		37.0	%
Gains (losses) on equity method investments, net		(66	)		(0.5	)%		76		0.7	%
Gains (losses) on other equity investments, net		41			0.3	%		117		1.1	%
Interest and other, net		21			0.2	%		11		0.1	%
Income before taxes		3,931			30.2	%		4,185		38.9	%
Provision for taxes		977			7.5	%		1,298		12.1	%
Net income	$	2,954			22.7	%	$	2,887		26.8	%
Diluted earnings per common share	$	0.54					$	0.51

The following table sets forth information of geographic regions for the periods indicated:

	Q2 2011					Q2 2010
(Dollars in Millions)	Revenue		% of Total			Revenue		% of Total
Asia-Pacific	$	7,391		57	%	$	6,166		57	%
Americas		2,909		22	%		2,173		20	%
Europe		1,564		12	%		1,294		12	%
Japan		1,168		9	%		1,132		11	%
Total	$	13,032		100	%	$	10,765		100	%

Our net revenue for Q2 2011 increased $2.3 billion, or 21%, compared to Q2 2010. The increase was due to higher platform (microprocessor and chipset) average selling prices and $1.0 billion in revenue from Intel Mobile Communications (formerly the WLS business of Infineon) and McAfee. We acquired the WLS business of Infineon and McAfee in Q1 2011. Revenue in the Americas, Europe, Asia-Pacific, and Japan regions increased by 34%, 21%, 20%, and 3%, respectively, compared to Q2 2010.

Our overall gross margin dollars for Q2 2011 increased $667 million, or 9%, compared to Q2 2010. The increase was primarily due to significantly higher revenue. The increase was partially offset by approximately $430 million of higher start-up costs compared to Q2 2010. To a lesser extent, higher platform unit costs also offset the increase to our overall gross margin dollars. The amortization of acquisition-related intangibles resulted in a $137 million reduction to our overall gross margin dollars in Q2 2011, compared to $16 million in Q2 2010, primarily due to the acquisitions of McAfee and the WLS business of Infineon.

Our overall gross margin percentage decreased to 60.6% in Q2 2011 from 67.2% in Q2 2010. The decrease in gross margin percentage was primarily attributable to the gross margin percentage decrease in the PC Client Group operating segment and, to a lesser extent, the gross margin percentage decrease in the other Intel architecture operating segments. We derived a majority of our overall gross margin dollars in Q2 2011 and a substantial majority of our overall gross margin dollars in Q2 2010 from the sale of microprocessors in the PC Client Group and Data Center Group operating segments. See “Business Outlook” for a discussion of gross margin expectations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

PC Client Group

The revenue and operating income for the PC Client Group (PCCG) operating segment for Q2 2011 and Q2 2010 were as follows:

(In Millions)	Q2 2011		Q2 2010
Microprocessor revenue	$	6,533	$	5,902
Chipset, motherboard, and other revenue		1,788		1,599
Net revenue	$	8,321	$	7,501
Operating income	$	3,284	$	3,333

Net revenue for the PCCG operating segment increased by $820 million, or 11%, in Q2 2011 compared to Q2 2010. Microprocessors and chipsets within PCCG include those designed for the notebook and desktop computing market segments. The increase in microprocessor revenue was due to significantly higher notebook average selling prices. To a lesser extent, higher desktop average selling prices and slightly higher notebook unit sales also contributed to the increase. The increase in chipset, motherboard, and other revenue was due to significantly higher chipset unit sales.

Operating income decreased by $49 million in Q2 2011 compared to Q2 2010. The decrease in operating income was due to approximately $400 million of higher start-up costs and, to a lesser extent, higher platform unit costs and higher inventory write-offs in Q2 2011 compared to Q2 2010. These decreases were partially offset by higher revenue compared to Q2 2010.

Data Center Group

The revenue and operating income for the Data Center Group (DCG) operating segment for Q2 2011 and Q2 2010 were as follows:

(In Millions)	Q2 2011		Q2 2010
Microprocessor revenue	$	2,054	$	1,797
Chipset, motherboard, and other revenue		382		317
Net revenue	$	2,436	$	2,114
Operating income	$	1,204	$	1,061

Net revenue for the DCG operating segment increased by $322 million, or 15%, in Q2 2011 compared to Q2 2010. The increase in microprocessor revenue was due to significantly higher microprocessor unit sales and, to a lesser extent, slightly higher microprocessor average selling prices. The increase in chipset, motherboard, and other revenue was due to significantly higher revenue from the sale of wired connectivity products, and slightly higher chipset unit sales.

Operating income increased by $143 million in Q2 2011 compared to Q2 2010. The increase in operating income was primarily due to higher revenue, partially offset by higher operating expenses compared to Q2 2010.

Other Intel Architecture Operating Segments

The revenue and operating income for the other Intel architecture (Other IA) operating segments, including Intel Mobile Communications (IMC), the Embedded and Communications Group (ECG), the Netbook and Tablet Group (NTG), the Digital Home Group (DHG), and the Ultra-Mobility Group (UMG), for Q2 2011 and Q2 2010 were as follows:

(In Millions)	Q2 2011			Q2 2010
Net revenue	$	1,389		$	755
Operating income (loss)	$	(33	)	$	76

Net revenue for the Other IA operating segments increased by $634 million, or 84%, in Q2 2011 compared to Q2 2010. The increase was primarily due to IMC revenue, an operating segment formed from the acquisition of the WLS business of Infineon. To a lesser extent, significantly higher ECG microprocessor unit sales and significantly higher ECG microprocessor average selling prices also contributed to the increase. These increases were partially offset by significantly lower NTG microprocessor unit sales.

Operating results for the Other IA operating segments decreased by $109 million, from an operating gain of $76 million in Q2 2010 to an operating loss of $33 million in Q2 2011. The decline in operating results was primarily due to higher operating expenses within each of the Other IA operating segments, partially offset by higher revenue.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Software and Services Operating Segments

The revenue and operating income for the Software and Services operating segments, including McAfee, Wind River Software Group, and Software and Services Group, for Q2 2011 and Q2 2010 were as follows:

(In Millions)	Q2 2011			Q2 2010
Net revenue	$	511		$	65
Operating loss	$	(14	)	$	(48	)

Net revenue for the Software and Services operating segments increased by $446 million in Q2 2011 compared to Q2 2010. The increase was primarily due to revenue from the acquisition of McAfee and, to a lesser extent, significantly higher revenue from the Wind River Software Group. Due to the revaluation of McAfee’s historic deferred revenue to fair value, we excluded $80 million of revenue that would have been reported in Q2 2011 if McAfee’s deferred revenue had not been written down due to the acquisition.

Operating loss for the Software and Services operating segments decreased by $34 million in Q2 2011 compared to Q2 2010, primarily due to higher revenue and operating expenses from the acquisition of McAfee. Due to the revaluation of McAfee’s historic deferred revenue to fair value, we excluded revenue and associated costs that would have created $75 million of operating income in Q2 2011.

Operating Expenses

Operating expenses for Q2 2011 and Q2 2010 were as follows:

(In Millions)	Q2 2011		Q2 2010
Research and development	$	1,986	$	1,666
Marketing, general and administrative	$	1,905	$	1,584
Amortization of acquisition-related intangibles	$	76	$	4

Research and Development. R&D spending increased by $320 million, or 19%, in Q2 2011 compared to Q2 2010. This increase was primarily due to the expenses of McAfee and Intel Mobile Communications, and higher compensation expense based on an increase in employees. These increases were partially offset by lower process development costs as we transition from R&D to manufacturing using our 22nm process technology.

Marketing, General and Administrative. Marketing, general and administrative expenses increased by $321 million, or 20%, in Q2 2011 compared to Q2 2010. This increase was primarily due to the expenses of McAfee and Intel Mobile Communications, and higher compensation expense based on an increase in employees.

R&D, combined with marketing, general and administrative expenses, were 30% of net revenue in Q2 2011 and Q2 2010.

Amortization of acquisition-related intangibles. The increase of $72 million was primarily due to the amortization of intangibles related to the acquisitions of McAfee and the WLS business of Infineon, both completed in the first quarter of 2011. For further information, see “Note 15: Acquisitions” and “Note 18: Identified Intangible Assets” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

Gains (Losses) on Equity Method Investments, Net

Gains (losses) on equity method investments, net were as follows:

(In Millions)	Q2 2011			Q2 2010
Equity method losses, net	$	(67	)	$	(9	)
Impairment charges		—			(6	)
Other, net		1			91
Total gains (losses) on equity method investments, net	$	(66	)	$	76

We recognized lower gains on sales and higher equity method losses in Q2 2011 compared to Q2 2010. The most significant components of our “Equity method losses, net” were Clearwire LLC ($46 million loss in Q2 2011 and $18 million loss in Q2 2010) and Numonyx B.V. ($29 million gain in Q2 2010).

During Q2 2010, we recognized a gain of $91 million on the sale of our ownership interest in Numonyx, included in “Other, net.”

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Gains (Losses) on Other Equity Investments, Net

Gains (losses) on other equity investments, net were as follows:

(In Millions)	Q2 2011			Q2 2010
Impairment charges	$	(9	)	$	(11	)
Gains on sales, net		42			20
Other, net		8			108
Total gains (losses) on other equity investments, net	$	41		$	117

We recognized lower gains on other equity transactions, partially offset by higher gains on sales of other equity investments in Q2 2011 compared to Q2 2010.

“Other, net” for Q2 2010 was primarily related to fair value gains on the equity interest in Micron we received from the sale of our ownership interest in Numonyx and gains on equity options established prior to the Numonyx sale that economically hedged a portion of our Micron equity interest. During Q2 2011, we sold our remaining ownership interest in Micron and the related equity options matured.

Interest and Other, Net

The components of interest and other, net were as follows:

(In Millions)	Q2 2011		Q2 2010
Interest income	$	20	$	29
Other, net		1		(18	)
Total interest and other, net	$	21	$	11

We recognized lower interest income in Q2 2011 compared to Q2 2010 as a result of lower average investment balances.

Provision for Taxes

Our provision for taxes and effective tax rate were as follows:

(Dollars in Millions)	Q2 2011			Q2 2010
Income before taxes	$	3,931		$	4,185
Provision for taxes		977			1,298
Effective tax rate		24.9	%		31.0	%

The effective tax rate for Q2 2011 was positively impacted by a higher percentage of profits being derived from lower tax jurisdictions, the reversal of previously accrued taxes related to the settlement of an uncertain tax position, and higher domestic manufacturing deductions compared to Q2 2010. Additionally, Q2 2011 included the U.S. research and development tax credit that was reinstated in December 2010.

42

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Results of Operations - First Half of 2011 Compared to First Half of 2010

The following table sets forth certain consolidated condensed statements of operations data as a percentage of net revenue for the periods indicated:

	YTD 2011						YTD 2010
				% of Net					% of Net
(Dollars in Millions, Except Per Share Amounts)	Dollars			Revenue			Dollars		Revenue
Net revenue	$	25,879			100.0	%	$	21,064		100.0	%
Cost of sales		10,092			39.0	%		7,300		34.7	%
Gross margin		15,787			61.0	%		13,764		65.3	%
Research and development		3,902			15.1	%		3,230		15.3	%
Marketing, general and administrative		3,680			14.2	%		3,098		14.7	%
Amortization of acquisition-related intangibles		112			0.4	%		7		—	%
Operating income		8,093			31.3	%		7,429		35.3	%
Gains (losses) on equity method investments, net		(108	)		(0.4	)%		37		0.1	%
Gains (losses) on other equity investments, net		111			0.4	%		125		0.6	%
Interest and other, net		206			0.8	%		40		0.2	%
Income before taxes		8,302			32.1	%		7,631		36.2	%
Provision for taxes		2,188			8.5	%		2,302		10.9	%
Net income	$	6,114			23.6	%	$	5,329		25.3	%
Diluted earnings per common share	$	1.11					$	0.94

The following table sets forth information of geographic regions for the periods indicated:

	YTD 2011					YTD 2010
(Dollars in Millions)	Revenue		% of Total			Revenue		% of Total
Asia-Pacific	$	14,653		57	%	$	12,054		57	%
Americas		5,624		22	%		4,079		19	%
Europe		3,209		12	%		2,698		13	%
Japan		2,393		9	%		2,233		11	%
Total	$	25,879		100	%	$	21,064		100	%

Our net revenue for the first half of 2011, which included 27 weeks, increased $4.8 billion, or 23%, compared to the first half of 2010, which included 26 weeks. The increase was primarily due to higher platform (microprocessor and chipset) average selling prices and, to a lesser extent, slightly higher microprocessor unit sales. Revenue from Intel Mobile Communications (formerly the WLS business of Infineon) and McAfee contributed $1.5 billion to Q2 2011 revenue. Revenue in the Americas, Asia-Pacific, Europe, and Japan regions increased by 38%, 22%, 19%, and 7%, respectively, compared to the first half of 2010.

Our overall gross margin dollars increased by $2.0 billion, or 15%, compared to the first half of 2010. The increase was primarily due to significantly higher revenue. The increase was partially offset by approximately $580 million of higher start-up costs compared to the first half of 2010. In addition, a charge of $422 million recorded in the first half of 2011 to repair and replace materials and systems impacted by a design issue related to our Intel^® 6 Series Express Chipset family, also offset the increase to our overall gross margin dollars. For further information, see “Note 20: Chipset Design Issue” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q. The amortization of acquisition-related intangibles resulted in a $210 million reduction to our overall gross margin dollars in the first half of 2011, compared to $32 million in the first half of 2010, primarily due to the acquisitions of McAfee and the WLS business of Infineon.

Our overall gross margin percentage decreased to 61.0% in the first half of 2011 from 65.3% in the first half of 2010. The decrease in gross margin percentage was primarily attributable to the gross margin percentage decrease in the PC Client group operating segment and, to a lesser extent, the gross margin percentage decrease in the other Intel architecture operating segments. We derived a substantial majority of our overall gross margin dollars in the first half of 2011 and first half of 2010 from the sale of microprocessors in the PC Client Group and Data Center Group operating segments. See “Business Outlook” for a discussion of gross margin expectations.

43

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

PC Client Group

The revenue and operating income for the PC Client Group (PCCG) operating segment for the first half of 2011 and the first half of 2010 were as follows:

(In Millions)	YTD 2011		YTD 2010
Microprocessor revenue	$	13,356	$	11,594
Chipset, motherboard, and other revenue		3,586		3,282
Net revenue	$	16,942	$	14,876
Operating income	$	6,827	$	6,420

Net revenue for the PCCG operating segment increased by $2.1 billion, or 14%, in the first half of 2011 compared to the first half of 2010. Microprocessors and chipsets within PCCG include those designed for the notebook and desktop computing market segments. The increase in microprocessor revenue was due to significantly higher notebook average selling prices. To a lesser extent, higher notebook unit sales, higher desktop average selling prices, and slightly higher desktop unit sales also contributed to the increase. The increase in chipset, motherboard, and other revenue was due to significantly higher chipset unit sales.

Operating income increased by $407 million in the first half of 2011 compared to the first half of 2010. The increase in operating income was primarily due to higher revenue. The increase was partially offset by approximately $580 million of higher start-up costs. In addition, a charge of $422 million recorded in the first half of 2011 to repair and replace materials and systems impacted by a design issue related to our Intel^® 6 Series Express Chipset family also contributed to the offset. To a lesser extent, inventory write-offs and platform unit costs were higher compared to the first half of 2010, which also contributed to the offset.

Data Center Group

The revenue and operating income for the Data Center Group (DCG) operating segment for the first half of 2011 and the first half of 2010 were as follows:

(In Millions)	YTD 2011		YTD 2010
Microprocessor revenue	$	4,115	$	3,349
Chipset, motherboard, and other revenue		785		636
Net revenue	$	4,900	$	3,985
Operating income	$	2,426	$	1,894

Net revenue for the DCG operating segment increased by $915 million, or 23%, in the first half of 2011 compared to the first half of 2010. The increase in microprocessor revenue was due to significantly higher microprocessor unit sales and, to a lesser extent, slightly higher microprocessor average selling prices. The increase in chipset, motherboard, and other revenue was due to significantly higher revenue from the sale of wired connectivity products and higher chipset unit sales.

Operating income increased by $532 million in the first half of 2011 compared to the first half of 2010. The increase in operating income was primarily due to higher revenue, partially offset by higher operating expenses compared to the first half of 2010.

Other Intel Architecture Operating Segments

The revenue and operating income for the other Intel architecture (Other IA) operating segments, including Intel Mobile Communications (IMC), the Embedded and Communications Group (ECG), the Netbook and Tablet Group (NTG), the Digital Home Group (DHG), and the Ultra-Mobility Group (UMG), for the first half of 2011 and the first half of 2010 were as follows:

(In Millions)	YTD 2011			YTD 2010
Net revenue	$	2,538		$	1,429
Operating income (loss)	$	(69	)	$	102

Net revenue for the Other IA operating segments increased by $1.1 billion, or 78%, in the first half of 2011 compared to the first half of 2010. The increase was primarily due to IMC revenue, an operating segment formed from the acquisition of the WLS business of Infineon. To a lesser extent, significantly higher ECG microprocessor and chipset unit sales and significantly higher ECG microprocessor average selling prices also contributed to the increase. These increases were partially offset by significantly lower NTG microprocessor unit sales.

44

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Operating results for the Other IA operating segments decreased by $171 million from an operating gain of $102 million in the first half of 2010 to an operating loss of $69 million the first half of 2011. The decline in operating results was primarily due to higher operating expenses within each of the Other IA operating segments, partially offset by higher revenue.

Software and Services Operating Segments

The revenue and operating income for the Software and Services operating segments, including McAfee, Wind River Software Group, and Software and Services Group, for the first half of 2011 and the first half of 2010 were as follows:

(In Millions)	YTD 2011			YTD 2010
Net revenue	$	751		$	123
Operating loss	$	(66	)	$	(92	)

Net revenue for the Software and Services operating segments increased by $628 million in the first half of 2011 compared to the first half of 2010. The increase was primarily due to revenue from the acquisition of McAfee and, to a lesser extent, significantly higher revenue from the Wind River Software Group. Due to the revaluation of McAfee’s historic deferred revenue to fair value, we excluded $110 million of revenue that would have been reported in the first half of 2011 if McAfee’s deferred revenue had not been written down due to the acquisition.

Operating loss for the Software and Services operating segments decreased by $26 million in the first half of 2011 compared to the first half of 2010. The impact of higher revenue was mostly offset by higher operating expenses across each of the Software and Services operating segments. Due to the revaluation of McAfee’s historic deferred revenue to fair value, we excluded revenue and associated costs that would have created $103 million of operating income in the first half of 2011.

Operating Expenses

Operating expenses for the first half of 2011 and the first half of 2010 were as follows:

(In Millions)	YTD 2011		YTD 2010
Research and development	$	3,902	$	3,230
Marketing, general and administrative	$	3,680	$	3,098
Amortization of acquisition-related intangibles	$	112	$	7

Research and Development. R&D spending increased by $672 million, or 21%, in the first half of 2011 compared to the first half of 2010. This increase was primarily due to the expenses of McAfee and Intel Mobile Communications, and higher compensation expenses based on an increase in employees, as well as an extra work week in the first half of 2011. These increases were partially offset by lower process development costs as we transition from R&D to manufacturing using our 22nm process technology.

Marketing, General and Administrative. Marketing, general and administrative expenses increased by $582 million, or 19%, in the first half of 2011 compared to the first half of 2010. This increase was primarily due to the expenses of McAfee and Intel Mobile Communications, and higher compensation expenses based on an increase in employees, as well as an extra work week in the first half of 2011.

R&D, combined with marketing, general and administrative expenses, were 29% of net revenue in the first half of 2011 (30% of net revenue in the first half of 2010).

Amortization of acquisition-related intangibles. The increase of $105 million was primarily due to the amortization of intangibles related to the acquisitions of McAfee and the WLS business of Infineon, both completed in the first quarter of 2011. For further information, see “Note 15: Acquisitions” and “Note 18: Identified Intangible Assets” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

45

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Gains (Losses) on Equity Method Investments, Net

Gains (losses) on equity method investments, net were as follows:

(In Millions)	YTD 2011			YTD 2010
Equity method losses, net	$	(129	)	$	(44	)
Impairment charges		—			(10	)
Other, net		21			91
Total gains (losses) on equity method investments, net	$	(108	)	$	37

We recognized lower gains on sales and higher equity method losses in the first half of 2011 compared to the first half of 2010.

During the first half of 2010, we recognized a gain of $91 million on the sale of our ownership interest in Numonyx, included in “Other, net.”

Our equity method losses were primarily related to Clearwire LLC ($95 million loss in the first half of 2011 and $47 million loss in the first half of 2010) and Numonyx ($42 million gain in the first half of 2010).

Gains (Losses) on Other Equity Investments, Net

Gains (losses) on other equity investments, net were as follows:

(In Millions)	YTD 2011			YTD 2010
Impairment charges	$	(23	)	$	(53	)
Gains on sales, net		87			103
Other, net		47			75
Total gains (losses) on other equity investments, net	$	111		$	125

We recognized lower gains from other equity transactions and lower gains on sales of other equity investments, partially offset by lower impairment charges in the first half of 2011 compared to the first half of 2010. Gains on sales of equity investments in the first half of 2010 included a gain of $67 million on the sale of shares in Micron.

“Other, net” in the first half of 2011 primarily related to gains in our Micron equity interest acquired in the sale of Numonyx in Q2 2010, partially offset by the change in fair value of Micron equity options that economically hedged our equity interest. “Other, net” in the first half of 2010 primarily related to fair value gains on our equity interest in Micron. During Q2 2011, we sold our remaining ownership interest in Micron, and the related equity options matured.

Interest and Other, Net

The components of interest and other, net were as follows:

(In Millions)	YTD 2011			YTD 2010
Interest income	$	48		$	55
Interest expense		(6	)		—
Other, net		164			(15	)
Total interest and other, net	$	206		$	40

Interest and other, net increased in the first half of 2011 compared to the first half of 2010, primarily due to a $164 million gain recognized upon formation of the Intel-GE Care Innovations, LLC joint venture during Q1 2011. For further information, see “Note 11: Equity Method Investments,” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

Provision for Taxes

Our provision for taxes and effective tax rate were as follows:

(Dollars in Millions)	YTD 2011			YTD 2010
Income before taxes	$	8,302		$	7,631
Provision for taxes		2,188			2,302
Effective tax rate		26.4	%		30.2	%

46

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

The effective tax rate for the first half of 2011 was positively impacted by a higher percentage of profits being derived from lower tax jurisdictions compared to the first half of 2010, as well as the reversal of previously accrued taxes in the first half of 2011 related to the settlement of an uncertain tax position. The effective tax rate for the first half of 2011 also included the U.S. research and development tax credit that was reinstated in December 2010.

Business Outlook

Our future results of operations and the topics of other forward-looking statements contained in this Form 10-Q, including this MD&A, involve a number of risks and uncertainties—in particular:

• changes in business and economic conditions;

• revenue and pricing;

• gross margin and costs;

• pending legal proceedings;

• our effective tax rate;

• marketing, general and administrative expenses;

• our goals and strategies;

• new product introductions, and product defects and errata;

• plans to cultivate new businesses;

• R&D expenses;

• divestitures, acquisitions, or similar transactions;

• net gains (losses) from equity investments;

• interest and other, net;

• capital spending;

• depreciation; and

• impairment of investments.

In addition to the various important factors discussed above, a number of other important factors could cause actual results to differ materially from our expectations. See the risks described in “Risk Factors” in Part II, Item 1A of this Form 10-Q.

Our expectations for the remainder of 2011 are as follows:

     Q3 2011

• Revenue. $14.0 billion, plus or minus $500 million.

• Gross margin percentage. 64% plus or minus a couple percentage points.

• Total spending. We expect spending on R&D, plus marketing, general and administrative expenses to be approximately $4.3 billion.

• Depreciation. Approximately $1.3 billion.

     Full Year 2011

• Gross margin percentage. 63%, plus or minus a couple percentage points.

• Total Spending. We expect spending on R&D, plus marketing, general and administrative expenses to be $16.2 billion, plus or minus $200 million.

• Capital spending. $10.5 billion, plus or minus $400 million.

• Depreciation. $5.2 billion, plus or minus $100 million.

• 2011 will have 53 weeks of business versus the typical 52 weeks.

Status of Business Outlook

We expect that our corporate representatives will, from time to time, meet publicly or privately with investors and others, and may reiterate the forward-looking statements contained in the “Business Outlook” section and elsewhere in this Form 10-Q, including any such statements that are incorporated by reference in this Form 10-Q. At the same time, we will keep this Form 10-Q and our most current business outlook publicly available on our Investor Relations web site at www.intc.com. The public can continue to rely on the business outlook published on the web site as representing our current expectations on matters covered, unless we publish a notice stating otherwise. The statements in the “Business Outlook” section and other forward-looking statements in this Form 10-Q are subject to revision during the course of the year in our quarterly earnings releases and Securities and Exchange Commission (SEC) filings and at other times.

The forward-looking statements in the “Business Outlook” section will be effective through the close of business September 16, 2011 unless earlier updated. From the close of business on September 16, 2011 until our quarterly earnings release is published, presently scheduled for October 18, 2011, we will observe a “quiet period.” During the quiet period, the “Business Outlook” section and other forward-looking statements first published in our Form 8-K filed on July 20, 2011, as reiterated or updated as applicable in this Form 10-Q, should be considered historical, speaking as of prior to the quiet period only and not subject to update. During the quiet period, our representatives will not comment on our business outlook or our financial results or expectations. The exact timing and duration of the routine quiet period, and any others that we utilize from time to time, may vary at our discretion.

47

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Liquidity and Capital Resources

	July 2,			Dec. 25,
(Dollars in Millions)	2011			2010
Cash and cash equivalents, short-term investments, and marketable debt instruments included in trading assets	$	11,537		$	21,497
Loans receivable and other long-term investments	$	1,909		$	3,876
Short-term and long-term debt	$	2,161		$	2,115
Debt as % of stockholders’ equity		4.4	%		4.3	%

In summary, our cash flows were as follows:

	Six Months Ended
	July 2,			June 26,
(In Millions)	2011			2010
Net cash provided by operating activities	$	7,984		$	7,565
Net cash used for investing activities		(1,427	)		(4,642	)
Net cash used for financing activities		(7,433	)		(1,396	)
Effect of exchange rate fluctuations on cash and cash equivalents		13			—
Net increase (decrease) in cash and cash equivalents	$	(863	)	$	1,527

Operating Activities

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities.

Cash from operations for the first half of 2011 was $8.0 billion, an increase of $419 million compared to the first half of 2010 due to adjustments for non-cash items, primarily depreciation and amortization of intangibles, and higher net income, partially offset by changes in our working capital.

Changes in assets and liabilities as of July 2, 2011 compared to December 25, 2010 included the following:

• Accrued compensation and benefits decreased due to payout of 2010 profit-dependent compensation.

• Income taxes receivable increased due to an increase in income tax prepayments.

For the first half of 2011, our two largest customers accounted for 35% of net revenue (38% for the first half of 2010) with one of those customers accounting for 19% of our net revenue, and another customer accounting for 16% of our net revenue. These two largest customers accounted for 30% of net accounts receivable at July 2, 2011 (44% at December 25, 2010).

Investing Activities

Cash used for investing activities decreased in the first half of 2011, compared to the first half of 2010, primarily due to net sales and maturities of available-for-sale investments and trading assets during the first half of 2011 as compared to net purchases of available-for-sale investments and trading assets during the first half of 2010, partially offset by higher cash paid for acquisitions and, to a lesser extent, an increase in capital expenditures as we build and equip our 22nm process technology manufacturing capacity.

Financing Activities

The increase in cash used for financing activities in the first half of 2011, compared to the first half of 2010, was primarily due to repurchases of common stock under our authorized common stock repurchase program during the first half of 2011.

Liquidity

Cash generated by operations is our primary source of liquidity. As of July 2, 2011, cash and cash equivalents, short-term investments, and marketable debt instruments included in trading assets totaled $11.5 billion ($21.5 billion as of December 25, 2010). The majority of the decrease from the fourth quarter of 2010 is due to the cash required to fund our acquisition of McAfee in the first quarter of 2011. In addition to the $11.5 billion, we have $1.9 billion in loans receivable and other long-term investments that we include when assessing our investment portfolio. 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.

48

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Our commercial paper program provides another potential source of liquidity. 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 the first half of 2011 were $200 million, although no commercial paper remained outstanding as of July 2, 2011. Our commercial paper was rated A-1+ by Standard & Poor’s and P-1 by Moody’s as of July 2, 2011. We also have an automatic shelf registration statement on file with the SEC pursuant to which we may offer an unspecified amount of debt, equity, and other securities.

We believe that we have the financial resources needed to meet business requirements for the next 12 months, including capital expenditures for worldwide manufacturing and assembly and test, working capital requirements, and potential dividends, common stock repurchases, and acquisitions or strategic investments.

Fair Value of Financial Instruments

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. See “Note 5: Fair Value” in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q.

Credit risk is factored into the valuation of financial instruments that we measure and record at fair value on a recurring basis. When fair value is determined using pricing models, such as a discounted cash flow model, the issuer’s credit risk or Intel’s credit risk is factored into the calculation of the fair value, as appropriate.

Marketable Debt Instruments

As of July 2, 2011, our assets measured and recorded at fair value on a recurring basis included $12.1 billion of marketable debt instruments. Of these instruments, $1.8 billion was classified as Level 1, $10.0 billion as Level 2, and $270 million as Level 3.

Our balance of marketable debt instruments that are measured and recorded at fair value on a recurring basis and classified as Level 1 was classified as such due to the use of observable market prices for identical securities that are traded in active markets. Management judgment was required to determine the levels for the frequency of transactions that should be met for a market to be considered active. Our assessment of an active market for our marketable debt instruments generally takes into consideration the number of days each individual instrument trades over a specified period.

Of the $10.0 billion balance of marketable debt instruments measured and recorded at fair value on a recurring basis and classified as Level 2, approximately 55% of the balance was classified as Level 2 due to the use of a discounted cash flow model and approximately 45% due to the use of non-binding market consensus prices that are corroborated with observable market data.

Our marketable debt instruments that are measured and recorded at fair value on a recurring basis and classified as Level 3 were classified as such due to the lack of observable market data to corroborate either the non-binding market consensus prices or the non-binding broker quotes. When observable market data is not available, we corroborate the non-binding market consensus prices and non-binding broker quotes using available unobservable data.

Equity Securities

As of July 2, 2011, our portfolio of assets measured and recorded at fair value on a recurring basis included $902 million of marketable equity securities. Most of these securities were classified as Level 1 because the valuations were based on quoted prices for identical securities in active markets. Our assessment of an active market for our marketable equity securities generally takes into consideration the number of days that each individual equity security trades over a specified period.

49

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information in this section should be read in connection with the information on financial market risk related to changes in non-U.S. currency exchange rates and changes in interest rates in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for the year ended December 25, 2010. All of the potential changes noted below are based on sensitivity analyses performed on our financial positions as of July 2, 2011 and December 25, 2010. Actual results may differ materially.

Equity Prices

Our marketable equity investments include marketable equity securities and equity derivative instruments such as warrants and options. To the extent that our marketable equity securities have strategic value, we typically do not attempt to reduce or eliminate our equity market exposure through hedging activities; however, for our investments in strategic equity derivative instruments, we may enter into transactions to reduce or eliminate the equity market risks. For securities that we no longer consider strategic, we evaluate legal, market, and economic factors in our decision on the timing of disposal, and whether it is possible and appropriate to hedge the equity market risk.

We hold derivative instruments that seek to offset changes in liabilities related to the equity market risks of certain deferred compensation arrangements. The gains and losses from changes in fair value of these derivatives are designed to offset the gains and losses on the related liabilities, resulting in an insignificant net exposure to loss.

As of July 2, 2011, the fair value of our marketable equity investments and our equity derivative instruments, including hedging positions, was $919 million ($1.5 billion as of December 25, 2010). Our marketable equity investments in Imagination Technologies Group PLC, VMware Inc., and Clearwire Corporation were carried at a total fair market value of $591 million, or 64% of our marketable equity portfolio, as of July 2, 2011. Our marketable equity method investment in SMART Technologies Inc. is excluded from our analysis, as the carrying value does not fluctuate based on market price changes unless an other-than-temporary impairment is deemed necessary. To determine reasonably possible decreases in the market value of our marketable equity investments, we analyzed the expected market price sensitivity of our marketable equity investment portfolio. Assuming a loss of 40% in market prices, and after reflecting the impact of hedges and offsetting positions, the aggregate value of our marketable equity investments could decrease by approximately $370 million, based on the value as of July 2, 2011 (a decrease in value of approximately $365 million, based on the value as of December 25, 2010 using an assumed loss of 40%).

Many of the same factors that could result in an adverse movement of equity market prices affect our non-marketable equity investments, although we cannot always quantify the impact directly. Financial markets are volatile, which could negatively affect the prospects of the companies we invest in, their ability to raise additional capital, and the likelihood of our being able to realize value in our investments through liquidity events such as initial public offerings, mergers, and private sales. These types of investments involve a great deal of risk, and there can be no assurance that any specific company will grow or become successful; consequently, we could lose all or part of our investment. Our non-marketable equity investments, excluding investments accounted for under the equity method, had a carrying amount of $1.0 billion as of July 2, 2011 ($872 million as of December 25, 2010). As of July 2, 2011, the carrying amount of our non-marketable equity method investments was $1.7 billion ($1.8 billion as of December 25, 2010). A substantial majority of this balance as of July 2, 2011 was concentrated in our IMFT/IMFS investment of $1.3 billion ($1.5 billion as of December 25, 2010).

50

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on management’s evaluation (with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO)), as of the end of the period covered by this report, our CEO and CFO have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including the CEO and CFO, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a discussion of legal proceedings, see “Note 26: Contingencies” in Part I, Item 1 of this Form 10-Q.

ITEM 1A. RISK FACTORS

We describe our business risk factors below. This description includes any material changes to and supersedes the description of the risk factors associated with our business previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 25, 2010.

Fluctuations in demand for our products may harm our financial results and are difficult to forecast.

If demand for our products fluctuates, our revenue and profitability could be harmed. Important factors that could cause demand for our products to fluctuate include:

• changes in business and economic conditions, including downturns in the computing industry and the overall economy;

• changes in consumer confidence or disposable income caused by changes in market conditions, including changes in government borrowing, taxation, or spending policies; the credit market; expectations for inflation, unemployment levels, and energy or other commodity prices;

• changes in the level of customers’ components inventories;

• competitive pressures, including pricing pressures, from companies that have competing products, chip architectures, manufacturing technologies, and marketing programs;

• changes in customer product needs;

• strategic actions taken by our competitors;

• market acceptance of our products; and

• potential disruptions in the high technology supply chain.

If product demand decreases or we fail to forecast demand accurately, we could be required to write off inventory or record excess capacity charges, which would have a negative impact on our gross margin. In addition, if product demand decreases, our manufacturing or assembly and test capacity could be underutilized, and we may be required to record an impairment on our long-lived assets, including facilities and equipment as well as intangible assets, which would increase our expenses. Factory-planning decisions may shorten the useful lives of long-lived assets, including facilities and equipment, and cause us to accelerate depreciation. In the long term, if product demand increases, we may not be able to add manufacturing or assembly and test capacity fast enough to meet market demand. These changes in demand for our products, and changes in our customers’ product needs, could have a variety of negative effects on our competitive position and our financial results, and, in certain cases, may reduce our revenue, increase our costs, lower our gross margin percentage, or require us to recognize impairments of our assets.

The semiconductor industry and our operations are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term, and by product demand that is highly variable and subject to significant downturns that may harm our business, results of operations, and financial condition.

The semiconductor industry and our operations are characterized by high costs, such as those related to facility construction and equipment, R&D, and employment and training of a highly skilled workforce, that are either fixed or difficult to reduce in the short term. At the same time, demand for our products is highly variable and there have been downturns, often in connection with maturing product cycles and general economic market conditions. These downturns have been characterized by reduced product demand, manufacturing overcapacity and resulting excess capacity charges, high inventory levels, and lower average selling prices. The combination of these factors may cause our revenue, gross margin, cash flow, and profitability to vary significantly in both the short and long term.

We operate in intensely competitive industries, and our failure to respond quickly to technological developments and incorporate new features into our products could harm our ability to compete.

We operate in intensely competitive industries that experience rapid technological developments, changes in industry standards, changes in customer requirements, and frequent new product introductions and improvements. If we are unable to respond quickly and successfully to these developments, we may lose our competitive position, and our products or technologies may become uncompetitive or obsolete. As new computing market segments emerge, such as netbooks, handhelds, tablets, and consumer electronics devices, we face new sources of competition, and customers that have different requirements than customers in our traditional PC business. To be successful, we need to cultivate new industry relationships in these market segments. As the number and variety of Internet-connected devices increase, we need to improve the cost, energy efficiency, and security functionality of our microprocessors to succeed in these new market segments. In addition, we need to focus on the acquisition and development of our software capabilities in order to provide customers with complete computing solutions.

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To compete successfully, we must maintain a successful R&D effort, develop new products and production processes, and improve our existing products and processes at the same pace or ahead of our competitors. Our R&D efforts are aimed at solving increasingly complex problems, and we do not expect that all of our projects will be successful. If our R&D efforts are unsuccessful, our future results of operations could be materially harmed. We may not be able to develop and market these new products successfully, the products we invest in and develop may not be well received by customers, and products developed and new technologies offered by others may affect demand for our products. These types of events could have a variety of negative effects on our competitive position and our financial results, such as reducing our revenue, increasing our costs, lowering our gross margin percentage, and requiring us to recognize impairments on our assets.

Litigation or regulatory proceedings could harm our business.

We may be subject to legal claims or regulatory matters involving stockholder, consumer, competition, and other issues on a global basis. As described in “Note 26: Contingencies” in Part I, Item 1 of this Form 10-Q, we are currently engaged in a number of litigation and regulatory matters. Litigation and regulatory proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages or, in cases for which injunctive relief is sought, an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, or requiring other remedies, such as compulsory licensing of intellectual property. If we were to receive an unfavorable ruling in a matter, our business and results of operations could be materially harmed.

Fluctuations in the mix of products sold may harm our financial results.

Because of the wide price differences among and within notebook, netbook, tablet, desktop, and server microprocessors, the mix and types of performance capabilities of microprocessors sold affect the average selling prices of our products and have a substantial impact on our revenue and gross margin. Our financial results also depend in part on the mix of other products that we sell, such as chipsets, flash memory, and other semiconductor products. In addition, more recently introduced products tend to have higher associated costs because of initial overall development and production ramp. Fluctuations in the mix and types of our products may also affect the extent to which we are able to recover the fixed costs and investments associated with a particular product, and as a result can harm our financial results.

Our global operations subject us to risks that may harm our results of operations and financial condition.

We have sales offices, R&D, manufacturing, assembly and test facilities, and other facilities in many countries, and some business activities may be concentrated in one or more geographic areas. As a result, we are subject to risks that may limit our ability to manufacture, assemble and test, design, develop, or sell products in particular countries or on a geographic basis, which could harm our results of operations and financial condition, including:

• security concerns, such as armed conflict and civil or military unrest, crime, political instability, and terrorist activity;

• health concerns;

• natural disasters;

• inefficient and limited infrastructure and disruptions, such as large-scale outages or interruptions of service from utilities, transportation, or telecommunications providers and supply chain interruptions;

• restrictions on our operations by governments seeking to support local industries, nationalization of our operations, and restrictions on our ability to repatriate earnings;

• differing employment practices and labor issues;

• local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws and regulations; and

• regulatory requirements and prohibitions that differ among jurisdictions.

Violations of these laws and regulations could result in fines; criminal sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to our reputation. Although we have implemented policies, controls, and procedures designed to ensure compliance with these laws, our employees, contractors, or agents may violate our policies.

In addition, although substantially all of our revenue is transacted in U.S. dollars, we incur a significant amount of certain types of expenses, such as payroll, utilities, tax, and marketing expenses, as well as conduct certain investing and financing activities, in local currencies. Our hedging programs reduce, but do not entirely eliminate, the impact of currency exchange rate movements; therefore, fluctuations in exchange rates could harm our results and financial condition. In addition, changes in tariff and import regulations and in U.S. and non-U.S. monetary policies may harm our results and financial condition by increasing our expenses and reducing our revenue. Varying tax rates in different jurisdictions could harm our results of operations and financial condition by increasing our overall tax rate.

We maintain a program of insurance coverage for various types of property, casualty, and other risks. We place our insurance coverage with various carriers in numerous jurisdictions. However, there is a risk that one or more of our insurance providers may be unable or unwilling to pay a claim. The types and amounts of insurance that we obtain vary from time to time and from location to location, depending on availability, cost, and our decisions with respect to risk retention. The policies are subject to deductibles and exclusions that result in our retention of a level of risk on a self-insurance basis. Losses not covered by insurance may be substantial, which could harm our results of operations and financial condition.

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Failure to meet our production targets, resulting in undersupply or oversupply of products, may harm our business and results of operations.

Production of integrated circuits is a complex process. Disruptions in this process can result from interruptions in our processes, errors, and difficulties in our development and implementation of new processes; defects in materials; disruptions in our supply of materials or resources; and disruptions at our fabrication and assembly and test facilities due to, for example, accidents, maintenance issues, or unsafe working conditions—all of which could affect the timing of production ramps and yields. We may not be successful or efficient in developing or implementing new production processes. The occurrence of any of the foregoing may result in our failure to meet or increase production as desired, resulting in higher costs or substantial decreases in yields, which could affect our ability to produce sufficient volume to meet specific product demand. The unavailability or reduced availability of certain products could make it more difficult to deliver computing platforms. The occurrence of any of these events could harm our business and results of operations.

We may have difficulties obtaining the resources or products we need for manufacturing, assembling and testing our products, or operating other aspects of our business, which could harm our ability to meet demand for our products and may increase our costs.

We have thousands of suppliers providing various materials that we use in the production of our products and other aspects of our business, and we seek, where possible, to have several sources of supply for all of those materials. However, we may rely on a single or a limited number of suppliers, or upon suppliers in a single location, for these materials. The inability of such suppliers to deliver adequate supplies of production materials or other supplies could disrupt our production processes or could make it more difficult for us to implement our business strategy. In addition, production could be disrupted by the unavailability of the resources used in production, such as water, silicon, electricity, gases, and other materials. Future environmental regulations could restrict the supply or increase the cost of certain of the materials that we currently use in our business. Environmental regulations also may make it more difficult to obtain permits to build or modify additional manufacturing capacity to meet demand. The unavailability or reduced availability of the materials or resources that we use in our business may require us to reduce production of products or may require us to incur additional costs in order to obtain an adequate supply of those materials or resources. The occurrence of any of these events could harm our business and results of operations.

Costs related to product defects and errata may harm our results of operations and business.

Costs associated with unexpected product defects and errata (deviations from published specifications) due to, for example, unanticipated problems in our design and manufacturing processes, could include:

• writing off the value of inventory of such products;

• disposing of products that cannot be fixed;

• recalling such products that have been shipped to customers;

• providing product replacements for, or modifications to, such products; and

• defending against litigation related to such products.

These costs could be substantial and may therefore increase our expenses and lower our gross margin. In addition, our reputation with our customers or users of our products could be damaged as a result of such product defects and errata, and the demand for our products could be reduced. The announcement of product defects and errata could cause customers to purchase products from our competitors as a result of anticipated shortages of Intel components or for other reasons. These factors could harm our financial results and the prospects for our business.

We may be subject to claims of infringement of third-party intellectual property rights, which could harm our business.

Third parties may assert against us or our customers alleged patent, copyright, trademark, or other intellectual property rights to technologies that are important to our business. We are currently engaged in a number of litigation matters involving intellectual property rights. We may be subject to intellectual property infringement claims from certain individuals and companies, including those who have acquired patent portfolios for the sole purpose of asserting such claims against other companies. Any claims that our products or processes infringe the intellectual property rights of others, regardless of the merit or resolution of such claims, could cause us to incur significant costs in responding to, defending, and resolving such claims, and may divert the efforts and attention of our management and technical personnel from our business. As a result of such intellectual property infringement claims, we could be required or otherwise decide that it is appropriate to:

• pay third-party infringement claims;

• discontinue manufacturing, using, or selling particular products subject to infringement claims;

• discontinue using the technology or processes subject to infringement claims;

• develop other technology not subject to infringement claims, which could be time-consuming and costly or may not be possible; or

• license technology from the third party claiming infringement, which license may not be available on commercially reasonable terms.

The occurrence of any of the foregoing could result in unexpected expenses or require us to recognize an impairment of our assets, which would reduce the value of our assets and increase expenses. In addition, if we alter or discontinue our production of affected items, our revenue could be harmed.

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We may not be able to enforce or protect our intellectual property rights, which may harm our ability to compete and harm our business.

Our ability to enforce our patents, copyrights, software licenses, and other intellectual property rights is subject to general litigation risks, as well as uncertainty as to the enforceability of our intellectual property rights in various countries. When we seek to enforce our rights, we are often subject to claims that the intellectual property right is invalid, is otherwise not enforceable, or is licensed to the party against whom we are asserting a claim. In addition, our assertion of intellectual property rights often results in the other party seeking to assert alleged intellectual property rights of its own or assert other claims against us, which could harm our business. If we are not ultimately successful in defending ourselves against these claims in litigation, we may not be able to sell a particular product or family of products due to an injunction, or we may have to license the technology or pay damages that could, in turn, harm our results of operations. In addition, governments may adopt regulations, and governments or courts may render decisions, requiring compulsory licensing of intellectual property to others, or governments may require that products meet specified standards that serve to favor local companies. Our inability to enforce our intellectual property rights under these circumstances may harm our competitive position and our business.

We may be subject to intellectual property theft or misuse, which could result in third-party claims and harm our business and results of operations.

We regularly face attempts by others to gain unauthorized access through the Internet to our information technology systems, such as when they masquerade as authorized users or surreptitiously introduce software. These attempts, which might be the result of industrial or other espionage, or actions by hackers seeking to harm the company, its products, or end users, are sometimes successful. In part because of the high profile of our McAfee subsidiary in the network and system protection business, we might become a target of computer hackers who create viruses to sabotage or otherwise attack our products and services. Hackers might attempt to penetrate our network security and gain access to our network and our data centers, misappropriate our or our customers’ proprietary information, including personally identifiable information, or cause interruptions of our internal systems and services. We seek to detect and investigate these security incidents and to prevent their recurrence, but in some cases we might be unaware of an incident or its magnitude and effects. The theft or unauthorized use or publication of our trade secrets and other confidential business information as a result of such an incident could adversely affect our competitive position and reduce marketplace acceptance of our products; the value of our investment in R&D, product development, and marketing could be reduced; and third parties might assert against us or our customers claims related to resulting losses of confidential or proprietary information or end-user data, or system reliability. Our business could be subject to significant disruption, and we could suffer monetary and other losses, including the cost of product recalls and returns and reputational harm, in the event of such incidents and claims.

Our licenses with other companies and our participation in industry initiatives may allow other companies, including our competitors, to use our patent rights.

Companies in the computing industry often rely on the ability to license patents from each other in order to compete. Many of our competitors have broad licenses or cross-licenses with us, and under current case law, some of the licenses may permit these competitors to pass our patent rights on to others. If one of these licensees becomes a foundry, our competitors might be able to avoid our patent rights in manufacturing competing products. In addition, our participation in industry initiatives may require us to license our patents to other companies that adopt certain industry standards or specifications, even when such organizations do not adopt standards or specifications proposed by us. As a result, our patents implicated by our participation in industry initiatives might not be available for us to enforce against others who might otherwise be deemed to be infringing those patents, our costs of enforcing our licenses or protecting our patents may increase, and the value of our intellectual property may be impaired.

We face risks related to our product sales through distributors and other third parties.

We sell a portion of our products through third parties such as distributors, value-added resellers, original equipment manufacturers, internet service providers, and channel partners (collectively referred to as distributors). Using third parties for distribution exposes us to numerous risks, including competitive pressure, concentration, credit risk, and compliance risks. Our distributors may sell other companies’ products that compete with our products, and we may need to provide financial and other incentives to focus distributors on the sale of our products. We may rely on one or more key distributors for a particular product, and the loss of these distributors could adversely impact our revenue. Our distributors may face financial difficulties, including bankruptcy, which could adversely impact our collection of accounts receivable and negatively affect our financial results. Violations of FCPA or similar laws by distributors or other third party intermediaries could have a material impact on our business. If we fail to manage these or other risks related to our use of distributors successfully, our sales may be reduced, our expenses may be increased, and our competitive position may be weakened.

We face risks related to our sales to government entities.

We derive a portion of our revenues from sales to U.S. and foreign federal, state, and local governments and their respective agencies. Government demand and payment for our products may be affected by public sector budgetary cycles and funding authorizations, and funding reductions or delays could negatively impact demand for our products and services. Additionally, government contracts are subject to government oversight on matters such as special rules on accounting, expenses, reviews and security, and our failure to comply with such special rules could result in civil and criminal penalties and administrative sanction, including termination of contracts, fines and suspensions, or debarment from future government business.

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We invest in companies for strategic reasons and may not realize a return on our investments.

We make investments in companies around the world to further our strategic objectives and support our key business initiatives. Such investments include equity or debt instruments of public or private companies, and many of these instruments are non-marketable at the time of our initial investment. These companies range from early-stage companies that are often still defining their strategic direction to more mature companies with established revenue streams and business models. The success of these companies is dependent on product development, market acceptance, operational efficiency, and other key business factors. The companies in which we invest may fail because they may not be able to secure additional funding, obtain favorable investment terms for future financings, or participate in liquidity events such as public offerings, mergers, and private sales. If any of these private companies fail, we could lose all or part of our investment in that company. If we determine that an other-than-temporary decline in the fair value exists for an equity or debt investment in a public or private company in which we have invested, we write down the investment to its fair value and recognize the related write-down as an investment loss. We also have significant investments in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to our investments in this market segment could result in significant impairment charges, impacting gains (losses) on equity method investments, net and gains (losses) on other equity investments, net.

When the strategic objectives of an investment have been achieved, or if the investment or business diverges from our strategic objectives, we may decide to dispose of the investment. We may incur losses on the disposal of our non-marketable investments. Additionally, for cases in which we are required under equity method accounting to recognize a proportionate share of another company’s income or loss, such income or loss may impact our earnings. Gains or losses from equity securities could vary from expectations depending on gains or losses realized on the sale or exchange of securities, gains or losses from equity method investments, and impairment charges for equity and other investments.

Our results of operations could vary as a result of the methods, estimates, and judgments that we use in applying our accounting policies.

The methods, estimates, and judgments that we use in applying our accounting policies have a significant impact on our results of operations (see “Critical Accounting Estimates” in Part I, Item 2 of this Form 10-Q). Such methods, estimates, and judgments are, by their nature, subject to substantial risks, uncertainties, and assumptions, and factors may arise over time that lead us to change our methods, estimates, and judgments. Changes in those methods, estimates, and judgments could significantly affect our results of operations.

Changes in our effective tax rate may harm our results of operations.

A number of factors may increase our future effective tax rates, including:

• the jurisdictions in which profits are determined to be earned and taxed;

• the resolution of issues arising from tax audits with various tax authorities;

• changes in the valuation of our deferred tax assets and liabilities, and changes in deferred tax valuation allowances;

• adjustments to income taxes upon finalization of various tax returns;

• increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and development and impairments of goodwill in connection with acquisitions;

• changes in available tax credits;

• changes in tax laws or the interpretation of such tax laws, including changes in the U.S. to the taxation of foreign income and expenses;

• changes in U.S. generally accepted accounting principles; and

• our decision to repatriate non-U.S. earnings for which we have not previously provided for U.S. taxes.

Any significant increase in our future effective tax rates could reduce net income for future periods.

Decisions about the scope of operations of our business could affect our results of operations and financial condition.

Changes in the business environment could lead to changes in our decisions about the scope of operations of our business, and these changes could result in restructuring and asset impairment charges. Factors that could affect our results of operations and financial condition with regard to changing the scope of our operations include:

• timing and execution of plans and programs that may be subject to local labor law requirements, including consultation with appropriate work councils;

• changes in assumptions related to severance and postretirement costs;

• future divestitures;

• new business initiatives and changes in product roadmap, development, and manufacturing;

• changes in employment levels and turnover rates;

• changes in product demand and the business environment; and

• changes in the fair value of certain long-lived assets.

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Our acquisitions, divestitures, and other transactions could disrupt our ongoing business and harm our results of operations.

In pursuing our business strategy, we routinely conduct discussions, evaluate opportunities, and enter into agreements regarding possible investments, acquisitions, divestitures, and other transactions, such as joint ventures. Acquisitions and other transactions involve significant challenges and risks, including risks that:

• we may not be able to identify suitable opportunities on terms acceptable to us;

• the transaction may not advance our business strategy;

• we may not realize a satisfactory return on the investment we make;

• we may not be able to retain key personnel of the acquired business;

• we may experience difficulty in integrating new employees, business systems, and technology;

• acquired businesses may not have adequate controls, processes, and procedures to ensure compliance with laws and regulations globally, and our due diligence process may not identify compliance issues or other liabilities that are in existence at the time of our acquisition;

• we may have difficulty entering into new market segments in which we are not experienced; or

• we may be unable to retain the customers and partners of acquired businesses following the acquisition.

When we decide to sell assets or a business, we may encounter difficulty in finding or completing divestiture opportunities or alternative exit strategies on acceptable terms in a timely manner, and the agreed terms and financing arrangements could be renegotiated due to changes in business or market conditions. These circumstances could delay the accomplishment of our strategic objectives or cause us to incur additional expenses with respect to businesses that we want to dispose of, or we may dispose of a business at a price or on terms that are less favorable than we had anticipated, resulting in a loss on the transaction.

If we do enter into agreements with respect to acquisitions, divestitures, or other transactions, we may fail to complete them due to factors such as:

• failure to obtain required regulatory or other approvals;

• intellectual property or other litigation; or

• difficulties that we or other parties may encounter in obtaining financing for the transaction.

In order to compete, we must attract, retain, and motivate key employees, and our failure to do so could harm our results of operations.

In order to compete, we must attract, retain, and motivate executives and other key employees. Hiring and retaining qualified executives, scientists, engineers, technical staff, and sales representatives are critical to our business, and competition for experienced employees in the computing industry can be intense. To help attract, retain, and motivate qualified employees, we use share-based incentive awards such as non-vested share units (restricted stock units) and employee stock options. If the value of such stock awards does not appreciate as measured by the performance of the price of our common stock, or if our share-based compensation otherwise ceases to be viewed as a valuable benefit, our ability to attract, retain, and motivate employees could be weakened, which could harm our results of operations.

Our failure to comply with applicable environmental laws and regulations worldwide could harm our business and results of operations.

The manufacturing and assembling and testing of our products require the use of hazardous materials that are subject to a broad array of EHS laws and regulations. Our failure to comply with any of those applicable laws or regulations could result in:

• regulatory penalties, fines, and legal liabilities;

• suspension of production;

• alteration of our fabrication and assembly and test processes; and

• curtailment of our operations or sales.

In addition, our failure to manage the use, transportation, emissions, discharge, storage, recycling, or disposal of hazardous materials could subject us to increased costs or future liabilities. Existing and future environmental laws and regulations could also require us to acquire pollution abatement or remediation equipment, modify our product designs, or incur other expenses associated with such laws and regulations. Many new materials that we are evaluating for use in our operations may be subject to regulation under existing or future environmental laws and regulations that may restrict our use of one or more of such materials in our manufacturing, assembly and test processes, or products. Any of these restrictions could harm our business and results of operations by increasing our expenses or requiring us to alter our manufacturing and assembly and test processes.

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Climate change poses both regulatory and physical risks that could harm our results of operations or affect the way we conduct our business.

In addition to the possible direct economic impact that climate change could have on us, climate change mitigation programs and regulations can increase our costs. For example, the cost of perfluorocompounds (PFCs), a gas that we use in manufacturing, could increase over time under some climate-change-focused emissions trading programs that may be imposed by government regulation. If the use of PFCs is prohibited, we would need to obtain substitute materials that may cost more or be less available for our manufacturing operations. In addition, air quality permit requirements for our manufacturing operations could become more burdensome and cause delays in our ability to modify or build additional manufacturing capacity. Under recently adopted greenhouse gas regulations in the U.S., many of our manufacturing facilities have become “major” sources under the Clean Air Act. At a minimum, this change in status will result in some uncertainty as the EPA adopts guidance on implementation of its greenhouse gas regulations. Due to the dynamic nature of our semiconductor manufacturing operations, it is likely these new regulations will result in increased costs for our U.S. operations. These cost increases could be associated with new air pollution control requirements, and increased or new monitoring, recordkeeping, and reporting of greenhouse gas emissions. We also see the potential for higher energy costs driven by climate change regulations. Our costs could increase if utility companies pass on their costs, such as those associated with carbon taxes, emission cap and trade programs, or renewable portfolio standards. While we maintain business recovery plans that are intended to allow us to recover from natural disasters or other events that can be disruptive to our business, we cannot be sure that our plans will fully protect us from all such disasters or events. Many of our operations are located in semi-arid regions, such as Israel and the southwestern U.S. Some scenarios predict that these regions may become even more vulnerable to prolonged droughts due to climate change.

Interest and other, net could be impacted by macroeconomic and other factors, harming our results of operations.

Factors that could cause interest and other, net in our consolidated condensed statements of income to fluctuate include:

• fixed-income, equity, and credit market volatility;

• fluctuations in foreign currency exchange rates;

• fluctuations in interest rates;

• changes in the credit standing of financial instrument counterparties; and

• changes in our cash and investment balances.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

We have an ongoing authorization, since October 2005, as amended, from our Board of Directors to repurchase up to $35 billion in shares of our common stock in open market or negotiated transactions. As of July 2, 2011, $8.2 billion remained available for repurchase under the existing repurchase authorization limit.

Common stock repurchase activity under our authorized plan during the second quarter of 2011 was as follows (in millions, except per share amounts):

					Total Number of		Dollar Value of
	Total Number				Shares Purchased as		Shares that May
	of Shares		Average Price		Part of Publicly		Yet Be Purchased
Period	Purchased		Paid per Share		Announced Plans		Under the Plans
April 3, 2011-April 30, 2011		54.6	$	20.16		54.6	$	9,131
May 1, 2011-May 28, 2011		38.7	$	23.25		38.7	$	8,231
May 29, 2011-July 2, 2011		—	$	—		—	$	8,231
Total		93.3	$	21.45		93.3

Our repurchases during the second quarter of 2011 were executed in privately negotiated transactions.

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. Although these withheld shares are not issued or considered common stock repurchases under our authorized plan and are not included in the common stock repurchase totals in the preceding table, they are treated as common stock repurchases in our financial statements, as they reduce the number of shares that would have been issued upon vesting.

ITEM 5. OTHER INFORMATION

Disclosure Regarding Frequency of Stockholder Advisory Vote on Executive Compensation

At the Annual Meeting of Stockholders held on May 19, 2011, a majority of our stockholders voted in favor of holding an advisory vote to approve executive compensation every year. The Board of Directors has carefully considered the voting results on that proposal and determined to adopt a policy providing for an annual advisory stockholder vote on executive compensation.

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ITEM 6. EXHIBITS

				Incorporated by Reference
Exhibit								Filing	Filed
Number			Exhibit Description	Form	File Number	Exhibit		Date	Herewith
	3.1		Intel Corporation Third Restated Certificate of Incorporation of Intel Corporation dated May 17, 2006	8-K	000-06217		3.1	5/22/2006
	3.2		Intel Corporation Bylaws, as amended and restated on July 26, 2011	8-K	000-06217		3.1	7/27/2011
	10.1	**	Intel Corporation 2006 Equity Incentive Plan as Amended and Restated Effective May 19, 2011	S-8	333-175123		99.1	6/24/2011
	10.2	**	Intel Corporation 2006 Stock Purchase Plan	S-8	333-175123		99.2	6/24/2011
	10.3	**	Intel Corporation 2006 Stock Purchase Plan as Amended and Restated Effective July 19, 2011						X
	12.1		Statement Setting Forth the Computation of Ratios of Earnings to Fixed Charges						X
	31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act)						X
	31.2		Certification of Chief Financial Officer and Principal Accounting Officer pursuant to Rule 13a-14(a) of the Exchange Act						X
	32.1		Certification of the Chief Executive Officer and the Chief Financial Officer and Principal Accounting Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002						X
101.INS			XBRL Instance Document						X
101.SCH			XBRL Taxonomy Extension Schema Document						X
101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document						X
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document						X
101.LAB			XBRL Taxonomy Extension Label Linkbase Document						X
101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document						X

Intel, Intel logo, Intel Atom, and Ultrabook are trademarks of Intel Corporation in the U.S. and/or other countries.
*	Other names and brands may be claimed as the property of others.
**	Management contracts or compensation plans or arrangements in which directors or executive officers are eligible to participate.

60

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTEL CORPORATION (Registrant)
Date: August 8, 2011	By:	/s/ Stacy J. Smith
		Stacy J. Smith
		Senior Vice President, Chief Financial Officer, and Principal Accounting Officer

61

EX-10.3

Exhibit 10.3

INTEL CONFIDENTIAL

INTEL CORPORATION

2006 STOCK PURCHASE PLAN

AS AMENDED AND RESTATED EFFECTIVE JULY 19, 2011

Section 1. PURPOSE

The purpose of the Plan is to provide an opportunity for Employees of Intel Corporation, a Delaware corporation (“Intel”) and its Participating Subsidiaries (collectively Intel and its Participating Subsidiaries shall be referred to as the “Company”), to purchase Common Stock of Intel and thereby to have an additional incentive to contribute to the prosperity of the Company. It is the intention of the Company that the Plan (excluding any sub-plans thereof except as expressly provided in the terms of such sub-plan) qualify as an “Employee Stock Purchase Plan” under Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the Plan shall be administered in accordance with this intent. In addition, the Plan authorizes the grant of options pursuant to sub-plans or special rules adopted by the Committee designed to achieve desired tax or other objectives in particular locations outside of the United States or to achieve other business objectives in the determination of the Committee, which sub-plans shall not be required to comply with the requirements of Section 423 of the Code or all of the specific provisions of the Plan, including but not limited to terms relating to eligibility, Subscription Periods or Purchase Price.

Section 2. DEFINITIONS

(a)	“Applicable Law” shall mean the legal requirements relating to the administration of an employee stock purchase plan under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, the Code, any stock exchange rules or regulations and the applicable laws of any other country or jurisdiction, as such laws, rules, regulations and requirements shall be in place from time to time.
(b)	“Board” shall mean the Board of Directors of Intel.
(c)	“Code” shall mean the Internal Revenue Code of 1986, as such is amended from time to time, and any reference to a section of the Code shall include any successor provision of the Code.
(d)	“Commencement Date” shall mean the last Trading Day prior to February 1 for the Subscription Period commencing on February 20 and the last Trading Day prior to August 1 for the Subscription Period commencing on August 20.
(e)	“Committee” shall mean the Compensation Committee of the Board or the subcommittee, officer or officers designated by the Compensation Committee in accordance with Section 15 of the Plan (to the extent of the duties and responsibilities delegated by the Compensation Committee of the Board).

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(f)	“Common Stock” shall mean the common stock of Intel, par value $.001 per share, or any securities into which such Common Stock may be converted.
(g)	“Compensation” shall mean the total compensation paid by the Company to an Employee with respect to a Subscription Period, including salary, commissions, overtime, shift differentials, payouts from Intel’s Employee Cash Bonus Program (ECBP), payouts from the Employee Bonus (EB) program, and all or any portion of any item of compensation considered by the Company to be part of the Employee’s regular earnings, but excluding items not considered by the Company to be part of the Employee’s regular earnings. Items excluded from the definition of “Compensation” include but are not limited to such items as relocation bonuses, expense reimbursements, certain bonuses paid in connection with mergers and acquisitions, author incentives, recruitment and referral bonuses, foreign service premiums, differentials and allowances, imputed income pursuant to Section 79 of the Code, income realized as a result of participation in any stock option, restricted stock, restricted stock unit, stock purchase or similar equity plan maintained by Intel or a Participating Subsidiary, and tuition and other reimbursements. The Committee shall have the authority to determine and approve all forms of pay to be included in the definition of Compensation and may change the definition on a prospective basis.
(h)	“Effective Date” shall mean July 31, 2006.
(i)	“Employee” shall mean an individual classified as an employee (within the meaning of Code Section 3401(c) and the regulations thereunder) by Intel or a Participating Subsidiary on Intel’s or such Participating Subsidiary’s payroll records during the relevant participation period. Notwithstanding the foregoing, no employee of Intel or a Participating Subsidiary shall be included within the definition of “Employee” if such person’s customary employment is for less than twenty (20) hours per week or for less than five (5) months per year. Individuals classified as independent contractors, consultants, advisers, or members of the Board are not considered “Employees.”
(j)	“Enrollment Period” shall mean, with respect to a given Subscription Period, that period beginning on the first (1st) day of February and August and ending on the nineteenth (19th) day of February and August during which Employees may elect to participate in order to purchase Common Stock at the end of that Subscription Period in accordance with the terms of this Plan. The duration and timing of Enrollment Periods may be changed or modified by the Committee.
(k)	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, and any reference to a section of the Exchange Act shall include any successor provision of the Exchange Act.
(l)	“Market Value” on a given date of determination (e.g., a Commencement Date or Purchase Date, as appropriate) shall mean the value of Common Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange (not including an automated quotation system), its Market Value shall be the closing sales price for a share of the Common Stock (or the closing bid, if no sales were reported) on the date of determination as quoted on such exchange on which the Common Stock has

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the highest average trading volume, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or (ii) if the Common Stock is listed on a national market system and the highest average trading volume of the Common Stock occurs through that system, its Market Value shall be the average of the high and the low selling prices reported on the date of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or (iii) if the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Market Value shall be the average of the mean of the closing bid and asked prices for the Common Stock on the date of such determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or, (iv) in the absence of an established market for the Common Stock, the Market Value thereof shall be determined in good faith by the Board.

(m)	“Offering Price” shall mean the Market Value of a share of Common Stock on the Commencement Date for a given Subscription Period.
(n)	“Participant” shall mean a participant in the Plan as described in Section 5 of the Plan.
(o)	“Participating Subsidiary” shall mean a Subsidiary that has been designated by the Committee in its sole discretion as eligible to participate in the Plan with respect to its Employees.
(p)	“Plan” shall mean this 2006 Stock Purchase Plan, including any sub-plans or appendices hereto.
(q)	“Purchase Date” shall mean the last Trading Day of each Subscription Period.
(r)	“Purchase Price” shall have the meaning set out in Section 8(b).
(s)	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended from time to time, and any reference to a section of the Securities Act shall include any successor provision of the Securities Act.
(t)	“Stockholder” shall mean a record holder of shares entitled to vote such shares of Common Stock under Intel’s by-laws.
(u)	“Subscription Period” shall mean a period of approximately six (6) months at the end of which an option granted pursuant to the Plan shall be exercised. The Plan shall be implemented by a series of Subscription Periods of approximately six (6) months duration, with new Subscription Periods commencing on each February 20 and August 20 occurring on or after the Effective Date and ending on the last Trading Day in the six (6) month period ending on the following August 19 and February 19, respectively. The duration and timing of Subscription Periods may be changed or modified by the Committee.
(v)	“Subsidiary” shall mean any entity treated as a corporation (other than Intel) in an unbroken chain of corporations beginning with Intel, within the meaning of Code Section

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424(f), whether or not such corporation now exists or is hereafter organized or acquired by Intel or a Subsidiary.

(w) “Trading Day” shall mean a day on which U.S. national stock exchanges and the NASDAQ National Market System are open for trading and the Common Stock is being publicly traded on one or more of such markets.

Section 3. ELIGIBILITY

(a)

Any Employee employed by Intel or by any Participating Subsidiary on a Commencement Date shall be eligible to participate in the Plan with respect to the Subscription Period first following such Commencement Date, provided that the Committee may establish administrative rules requiring that employment commence some minimum period (not to exceed 30 days) prior to a Commencement Date to be eligible to participate with respect to such Subscription Period. The Committee may also determine that a designated group of highly compensated Employees is ineligible to participate in the Plan so long as the excluded category fits within the definition of “highly compensated employee” in Code Section 414(q).

(b)

No Employee may participate in the Plan if immediately after an option is granted the Employee owns or is considered to own (within the meaning of Code Section 424(d)) shares of Common Stock, including Common Stock which the Employee may purchase by conversion of convertible securities or under outstanding options granted by Intel or its Subsidiaries, possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of Intel or of any of its Subsidiaries. All Employees who participate in the Plan shall have the same rights and privileges under the Plan, except for differences that may be mandated by local law and that are consistent with Code Section 423(b)(5); provided that individuals participating in a sub-plan adopted pursuant to Section 17 which is not designed to qualify under Code section 423 need not have the same rights and privileges as Employees participating in the Code section 423 Plan. No Employee may participate in more than one Subscription Period at a time.

Section 4. SUBSCRIPTION PERIODS

The Plan shall generally be implemented by a series of six (6) month Subscription Periods with new Subscription Periods commencing on each February 20 and August 20 and ending on the last Trading Day in the six (6) month periods ending on the following August 19 and February 19, respectively, or on such other date as the Committee shall determine, and continuing thereafter until the Plan is terminated pursuant to Section 14 hereof. The first Subscription Period shall commence on August 21, 2006 and shall end on the last Trading Day on or before February 19, 2007. The Committee shall have the authority to change the frequency and/or duration of Subscription Periods (including the commencement dates thereof) with respect to future Subscription Periods if such change is announced at least thirty (30) days prior to the scheduled occurrence of the first Commencement Date to be affected thereafter.

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Section 5. PARTICIPATION

(a)	An Employee who is eligible to participate in the Plan in accordance with its terms on a Commencement Date shall automatically receive an option in accordance with Section 8(a) and may become a Participant by completing and submitting, on or before the date prescribed by the Committee with respect to a given Subscription Period, a completed payroll deduction authorization and Plan enrollment form provided by Intel or its Participating Subsidiaries or by following an electronic or other enrollment process as prescribed by the Committee. An eligible Employee may authorize payroll deductions at the rate of any whole percentage of the Employee’s Compensation, not to be less than two percent (2%) and not to exceed five percent (5%) of the Employee’s Compensation (or such other percentages as the Committee may establish from time to time before a Commencement Date) of such Employee’s Compensation on each payday during the Subscription Period. All payroll deductions will be held in a general corporate account or a trust account. No interest shall be paid or credited to the Participant with respect to such payroll deductions. Intel shall maintain or cause to be maintained a separate bookkeeping account for each Participant under the Plan and the amount of each Participant’s payroll deductions shall be credited to such account. A Participant may not make any additional payments into such account, unless payroll deductions are prohibited under Applicable Law, in which case the provisions of Section 5(b) of the Plan shall apply.
(b)	Notwithstanding any other provisions of the Plan to the contrary, in locations where local law prohibits payroll deductions, an eligible Employee may elect to participate through contributions to his or her account under the Plan in a form acceptable to the Committee. In such event, any such Employees shall be deemed to be participating in a sub-plan, unless the Committee otherwise expressly provides that such Employees shall be treated as participating in the Plan. All such contributions will be held in a general corporate account or a trust account. No interest shall be paid or credited to the Participant with respect to such contributions.
(c)	Under procedures and at times established by the Committee, a Participant may withdraw from the Plan during a Subscription Period, by completing and filing a new payroll deduction authorization and Plan enrollment form with the Company or by following electronic or other procedures prescribed by the Committee. If a Participant withdraws from the Plan during a Subscription Period, his or her accumulated payroll deductions will be refunded to the Participant without interest, his or her right to participate in the current Subscription Period will be automatically terminated and no further payroll deductions for the purchase of Common Stock will be made during the Subscription Period. Any Participant who wishes to withdraw from the Plan during a Subscription Period, must complete the withdrawal procedures prescribed by the Committee before the last forty-eight (48) hours of such Subscription Period, subject to any changes to the rules established by the Committee pertaining to the timing of withdrawals, limiting the frequency with which Participants may withdraw and re-enroll in the Plan and may impose a waiting period on Participants wishing to re-enroll following withdrawal.

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INTEL CONFIDENTIAL

(d) A Participant may not increase his or her rate of contribution through payroll deductions or otherwise during a given Subscription Period. A Participant may decrease his or her rate of contribution through payroll deductions one time only during a given Subscription Period and only during an open enrollment period or such other times specified by the Committee by filing a new payroll deduction authorization and Plan enrollment form or by following electronic or other procedures prescribed by the Committee. If a Participant has not followed such procedures to change the rate of contribution, the rate of contribution shall continue at the originally elected rate throughout the Subscription Period and future Subscription Periods; unless the Committee reduces the maximum rate of contribution provided in Section 5(a) and a Participant’s rate of contribution exceeds the reduced maximum rate of contribution, in which case the rate of contribution shall continue at the reduced maximum rate of contribution. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code for a given calendar year, the Committee may reduce a Participant’s payroll deductions to zero percent (0%) at any time during a Subscription Period scheduled to end during such calendar year. Payroll deductions shall re-commence at the rate provided in such Participant’s enrollment form at the beginning of the first Subscription Period which is scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 5(c).

Section 6. TERMINATION OF EMPLOYMENT

In the event any Participant terminates employment with Intel and its Participating Subsidiaries for any reason (including death) prior to the expiration of a Subscription Period, the Participant’s participation in the Plan shall terminate and all amounts credited to the Participant’s account shall be paid to the Participant or, in the case of death, to the Participant’s heirs or estate, without interest. Whether a termination of employment has occurred shall be determined by the Committee. If a Participant’s termination of employment occurs within a certain period of time as specified by the Committee (not to exceed 30 days) prior to the Purchase Date of the Subscription Period then in progress, his or her option for the purchase of shares of Common Stock will be exercised on such Purchase Date in accordance with Section 9 as if such Participant were still employed by the Company. Following the purchase of shares on such Purchase Date, the Participant’s participation in the Plan shall terminate and all amounts credited to the Participant’s account shall be paid to the Participant or, in the case of death, to the Participant’s heirs or estate, without interest. The Committee may also establish rules regarding when leaves of absence or changes of employment status will be considered to be a termination of employment, including rules regarding transfer of employment among Participating Subsidiaries, Subsidiaries and Intel, and the Committee may establish termination-of-employment procedures for this Plan that are independent of similar rules established under other benefit plans of Intel and its Subsidiaries; provided that such procedures are not in conflict with the requirements of Section 423 of the Code.

Section 7. STOCK

Subject to adjustment as set forth in Section 11, the maximum number of shares of Common Stock which may be issued pursuant to the Plan shall be three hundred seventy-three million

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INTEL CONFIDENTIAL

(373,000,000) shares. Notwithstanding the above, subject to adjustment as set forth in Section 11, the maximum number of shares that may be purchased by any Employee in a given Subscription Period shall be seventy two thousand (72,000) shares of Common Stock. If, on a given Purchase Date, the number of shares with respect to which options are to be exercised exceeds either maximum, the Committee shall make, as applicable, such adjustment or pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.

Section 8. OFFERING

(a)

On the Commencement Date relating to each Subscription Period, each eligible Employee, whether or not such Employee has elected to participate as provided in Section 5(a), shall be granted an option to purchase that number of whole shares of Common Stock (as adjusted as set forth in Section 11) not to exceed seventy two thousand (72,000) shares (or such lower number of shares as determined by the Committee), which may be purchased with the payroll deductions accumulated on behalf of such Employee during each Subscription Period at the purchase price specified in Section 8(b) below, subject to the additional limitation that no Employee participating in the Plan shall be granted an option to purchase Common Stock under the Plan if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of Intel and its Subsidiaries to accrue at a rate which exceeds U.S. twenty-five thousand dollars (U.S. $25,000) of the Market Value of such Common Stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. For purposes of the Plan, an option is “granted” on a Participant’s Commencement Date. An option will expire upon the earliest to occur of (i) the termination of a Participant’s participation in the Plan or such Subscription Period (ii) the beginning of a subsequent Subscription Period in which such Participant is participating; or (iii) the termination of the Subscription Period. This Section 8(a) shall be interpreted so as to comply with Code Section 423(b)(8).

(b)

The Purchase Price under each option shall be with respect to a Subscription Period the lower of (i) a percentage (not less than eighty-five percent (85%)) established by the Committee (“Designated Percentage”) of the Offering Price, or (ii) the Designated Percentage of the Market Value of a share of Common Stock on the Purchase Date on which the Common Stock is purchased; provided that the Purchase Price may be adjusted by the Committee pursuant to Sections 11 or 12 in accordance with Section 424(a) of the Code. The Committee may change the Designated Percentage with respect to any future Subscription Period, but not to below eighty-five percent (85%), and the Committee may determine with respect to any prospective Subscription Period that the option price shall be the Designated Percentage of the Market Value of a share of the Common Stock on the Purchase Date.

Section 9. PURCHASE OF STOCK

Unless a Participant withdraws from the Plan as provided in Section 5(c) or except as provided in Sections 7, 12 or 14(b), upon the expiration of each Subscription Period, a Participant’s option

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shall be exercised automatically for the purchase of that number of whole shares of Common Stock which the accumulated payroll deductions credited to the Participant’s account at that time shall purchase at the applicable price specified in Section 8(b). Notwithstanding the foregoing, Intel or its Participating Subsidiary may make such provisions and take such action as it deems necessary or appropriate for the withholding of taxes and/or social insurance which Intel or its Participating Subsidiary determines is required by Applicable Law. Each Participant, however, shall be responsible for payment of all individual tax liabilities arising under the Plan. The shares of Common Stock purchased upon exercise of an option hereunder shall be considered for tax purposes to be sold to the Participant on the Purchase Date. During his or her lifetime, a Participant’s option to purchase shares of Common Stock hereunder is exercisable only by him or her.

Section 10. PAYMENT AND DELIVERY

As soon as practicable after the exercise of an option, Intel shall deliver or cause to have delivered to the Participant a record of the Common Stock purchased and the balance of any amount of payroll deductions credited to the Participant’s account not used for the purchase, except as specified below. The Committee may permit or require that shares be deposited directly with a broker designated by the Committee or to a designated agent of the Company, and the Committee may utilize electronic or automated methods of share transfer. The Committee may require that shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. Intel or its Participating Subsidiary shall retain the amount of payroll deductions used to purchase Common Stock as full payment for the Common Stock and the Common Stock shall then be fully paid and non-assessable. No Participant shall have any voting, dividend, or other Stockholder rights with respect to shares subject to any option granted under the Plan until the shares subject to the option have been purchased and delivered to the Participant as provided in this Section 10. The Committee may in its discretion direct Intel to retain in a Participant’s account for the subsequent Subscription Period any payroll deductions which are not sufficient to purchase a whole share of Common Stock or to return such amount to the Participant. Any other amounts left over in a Participant’s account after a Purchase Date shall be returned to the Participant without interest.

Section 11. RECAPITALIZATION

Subject to any required action by the Stockholders of Intel, if there is any change in the outstanding shares of Common Stock because of a merger, consolidation, spin-off, reorganization, recapitalization, dividend in property other than cash, stock split, reverse stock split, stock dividend, liquidating dividend, combination or reclassification of the Common Stock (including any such change in the number of shares of Common Stock effected in connection with a change in domicile of Intel), or any similar equity restructuring transaction (as that term is used in Accounting Standards Codification 718), the number of securities covered by each option under the Plan which has not yet been exercised and the number of securities which have been authorized and remain available for issuance under the Plan, as well as the maximum number of securities which may be purchased by a Participant in a Subscription Period, and the price per share covered by each option under the Plan which has not yet been exercised, shall be

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equitably adjusted by the Board, and the Board shall take any further actions which may be necessary or appropriate under the circumstances. The Board’s determinations under this Section 11 shall be conclusive and binding on all parties.

Section 12. MERGER, LIQUIDATION, OTHER CORPORATE TRANSACTIONS

(a)

In the event of the proposed liquidation or dissolution of Intel, the Subscription Period will terminate immediately prior to the consummation of such proposed transaction, unless otherwise provided by the Board in its sole discretion, and all outstanding options shall automatically terminate and the amounts of all payroll deductions will be refunded without interest to the Participants.

(b)

In the event of a proposed sale of all or substantially all of the assets of Intel, or the merger or consolidation or similar combination of Intel with or into another entity, then in the sole discretion of the Board, (1) each option shall be assumed or an equivalent option shall be substituted by the successor corporation or parent or subsidiary of such successor entity, (2) a date established by the Board on or before the date of consummation of such merger, consolidation, combination or sale shall be treated as a Purchase Date, and all outstanding options shall be exercised on such date, (3) all outstanding options shall terminate and the accumulated payroll deductions will be refunded without interest to the Participants, or (4) outstanding options shall continue unchanged.

Section 13. TRANSFERABILITY

Neither payroll deductions credited to a Participant’s bookkeeping account nor any rights to exercise an option or to receive shares of Common Stock under the Plan may be voluntarily or involuntarily assigned, transferred, pledged, or otherwise disposed of in any way, and any attempted assignment, transfer, pledge, or other disposition shall be null and void and without effect. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interests under the Plan, other than as permitted by the Code, such act shall be treated as an election by the Participant to discontinue participation in the Plan pursuant to Section 5(c).

Section 14. AMENDMENT OR TERMINATION OF THE PLAN

(a)

The Plan shall continue from the Effective Date until August 31, 2016, unless it is terminated in accordance with Section 14(b).

(b)

The Board may, in its sole discretion, insofar as permitted by law, terminate or suspend the Plan, or revise or amend it in any respect whatsoever, and the Committee may revise or amend the Plan consistent with the exercise of its duties and responsibilities as set forth in the Plan or any delegation under the Plan, except that, without approval of the Stockholders, no such revision or amendment shall increase the number of shares subject to the Plan, other than an adjustment under Section 11 of the Plan, or make other changes for which Stockholder approval is required under Applicable Law. Upon a termination or suspension of the Plan, the Board may in its discretion (i) return without interest, the

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payroll deductions credited to Participants’ accounts to such Participants or (ii) set an earlier Purchase Date with respect to a Subscription Period then in progress.

Section 15. ADMINISTRATION

(a)

The Board has appointed the Compensation Committee of the Board to administer the Plan (the “Committee”), who will serve for such period of time as the Board may specify and whom the Board may remove at any time. The Committee will have the authority and responsibility for the day-to-day administration of the Plan, the authority and responsibility specifically provided in this Plan and any additional duty, responsibility and authority delegated to the Committee by the Board, which may include any of the functions assigned to the Board in this Plan. The Committee may delegate to a sub-committee or to an officer or officers of Intel the day-to-day administration of the Plan. The Committee shall have full power and authority to adopt, amend and rescind any rules and regulations which it deems desirable and appropriate for the proper administration of the Plan, to construe and interpret the provisions and supervise the administration of the Plan, to make factual determinations relevant to Plan entitlements and to take all action in connection with administration of the Plan as it deems necessary or advisable, consistent with the delegation from the Board. Decisions of the Committee shall be final and binding upon all Participants. Any decision reduced to writing and signed by all of the members of the Committee shall be fully effective as if it had been made at a meeting of the Committee duly held. The Company shall pay all expenses incurred in the administration of the Plan.

(b)

In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Company, members of the Board and of the Committee shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted under the Plan, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same.

Section 16. COMMITTEE RULES FOR FOREIGN JURISDICTIONS

The Committee may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions or other contributions by Participants, payment of interest, conversion of local currency, data privacy security, payroll tax, withholding

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procedures and handling of stock certificates which vary with local requirements; however, if such varying provisions are not in accordance with the provisions of Section 423(b) of the Code, including but not limited to the requirement of Section 423(b)(5) of the Code that all options granted under the Plan shall have the same rights and privileges unless otherwise provided under the Code and the regulations promulgated thereunder, then the individuals affected by such varying provisions shall be deemed to be participating under a sub-plan and not in the Plan. The Committee may also adopt sub-plans applicable to particular Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Code section 423 and shall be deemed to be outside the scope of Code section 423 unless the terms of the sub-plan provide to the contrary. The rules of such sub-plans may take precedence over other provisions of this Plan, with the exception of Section 7, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan. The Committee shall not be required to obtain the approval of the Stockholders prior to the adoption, amendment or termination of any sub-plan unless required by the laws of the foreign jurisdiction in which Employees participating in the sub-plan are located.

Section 17. SECURITIES LAWS REQUIREMENTS

(a)

No option granted under the Plan may be exercised to any extent unless the shares to be issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations promulgated thereunder, applicable state and foreign securities laws and the requirements of any stock exchange upon which the Shares may then be listed, subject to the approval of counsel for the Company with respect to such compliance. If on a Purchase Date in any Subscription Period hereunder, the Plan is not so registered or in such compliance, options granted under the Plan which are not in material compliance shall not be exercised on such Purchase Date, and the Purchase Date shall be delayed until the Plan is subject to such an effective registration statement and such compliance, except that the Purchase Date shall not be delayed more than twelve (12) months and the Purchase Date shall in no event be more than twenty-seven (27) months from the Commencement Date relating to such Subscription Period. If, on the Purchase Date of any offering hereunder, as delayed to the maximum extent permissible, the Plan is not registered and in such compliance, options granted under the Plan which are not in material compliance shall not be exercised and all payroll deductions accumulated during the Subscription Period (reduced to the extent, if any, that such deductions have been used to acquire shares of Common Stock) shall be returned to the Participants, without interest. The provisions of this Section 17 shall comply with the requirements of Section 423(b)(5) of the Code to the extent applicable.

(b)

As a condition to the exercise of an option, Intel may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for Intel, such a representation is required by any of the aforementioned applicable provisions of law.

Intel Corporation 2006 SPP
July 19, 2011 Restatement

11

INTEL CONFIDENTIAL

Section 18. GOVERNMENTAL REGULATIONS

This Plan and Intel’s obligation to sell and deliver shares of its stock under the Plan shall be subject to the approval of any governmental authority required in connection with the Plan or the authorization, issuance, sale, or delivery of stock hereunder.

Section 19. NO ENLARGEMENT OF EMPLOYEE RIGHTS

Nothing contained in this Plan shall be deemed to give any Employee or other individual the right to be retained in the employ or service of Intel or any Participating Subsidiary or to interfere with the right of Intel or Participating Subsidiary to discharge any Employee or other individual at any time, for any reason or no reason, with or without notice.

Section 20. GOVERNING LAW

This Plan shall be governed by applicable laws of the State of Delaware and applicable federal law.

Section 21. EFFECTIVE DATE

This Plan shall be effective on the Effective Date, subject to approval of the Stockholders of Intel within twelve (12) months before or after its date of adoption by the Board.

Section 22. REPORTS

Individual accounts shall be maintained for each Participant in the Plan. Statements of account shall be made available to Participants at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.

Section 23. DESIGNATION OF BENEFICIARY FOR OWNED SHARES

With respect to shares of Common Stock purchased by the Participant pursuant to the Plan and held in an account maintained by Intel or its assignee on the Participant’s behalf, the Participant may be permitted to file a written designation of beneficiary, who is to receive any shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to the end of a Subscription Period but prior to delivery to him or her of such shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to the Purchase Date of a Subscription Period. If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective, to the extent required by local law. The Participant (and if required under the preceding sentence, his or her spouse) may change such designation of beneficiary at any time by written notice. Subject to local legal requirements, in the event of a Participant’s death, Intel or its assignee shall deliver any shares of Common Stock and/or cash to the designated beneficiary. Subject to local law, in the event of the death of a Participant and in the absence of a beneficiary validly designated who is living at the time of such Participant’s death,

Intel Corporation 2006 SPP
July 19, 2011 Restatement

12

INTEL CONFIDENTIAL

Intel shall deliver such shares of Common Stock and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of Intel), Intel in its sole discretion, may deliver (or cause its assignee to deliver) such shares of Common Stock and/or cash to the spouse, or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to Intel, then to such other person as Intel may determine. The provisions of this Section 23 shall in no event require Intel to violate local law, and Intel shall be entitled to take whatever action it reasonably concludes is desirable or appropriate in order to transfer the assets allocated to a deceased Participant’s account in compliance with local law.

Section 24. ADDITIONAL RESTRICTIONS OF RULE 16b-3.

The terms and conditions of options granted hereunder to, and the purchase of shares of Common Stock by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the shares of Common Stock issued upon exercise thereof shall be subject to, such additional conditions and restrictions, if any, as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.

Section 25. NOTICES

All notices or other communications by a Participant to Intel or the Committee under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by Intel or the Committee at the location, or by the person, designated by Intel for the receipt thereof.

Intel Corporation 2006 SPP
July 19, 2011 Restatement

13

EX-12.1

Exhibit 12.1

INTEL CORPORATION

STATEMENT SETTING FORTH THE COMPUTATION

OF RATIOS OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

	Six Months Ended
	July 2,			June 26,
	2011			2010
Earnings1	$	8,470		$	7,704
Adjustments:
Add — Fixed charges		121			95
Subtract — Capitalized interest		(83	)		(68	)
Earnings and fixed charges (net of capitalized interest)	$	8,508		$	7,731
Fixed charges:
Interest2	$	6		$	—
Capitalized interest		83			68
Estimated interest component of rental expense		32			27
Total	$	121		$	95
Ratio of earnings before taxes and fixed charges, to fixed charges		70	x		81	x

1	After adjustments required by Item 503(d) of the U.S. Securities and Exchange Regulation S-K.
2	Interest within provision for taxes on the consolidated condensed statements of income is not included.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Paul S. Otellini, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Intel Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2011	By:	/s/ Paul S. Otellini
		Paul S. Otellini
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Stacy J. Smith, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Intel Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2011	By:	/s/ Stacy J. Smith
		Stacy J. Smith
		Senior Vice President, Chief Financial Officer, and Principal Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Each of the undersigned hereby certifies, for the purposes of section 1350 of chapter 63 of title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as an officer of Intel Corporation (Intel), that, to his knowledge, the Quarterly Report of Intel on Form 10-Q for the period ended July 2, 2011, fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Intel. This written statement is being furnished to the Securities and Exchange Commission as an exhibit to such Form 10-Q. A signed original of this statement has been provided to Intel and will be retained by Intel and furnished to the Securities and Exchange Commission or its staff upon request.

Date: August 8, 2011	By:	/s/ Paul S. Otellini
		Paul S. Otellini
		President and Chief Executive Officer
Date: August 8, 2011	By:	/s/ Stacy J. Smith
		Stacy J. Smith
		Senior Vice President, Chief Financial Officer, and Principal Accounting Officer

XML



Operating Segment Information (Tables)

6 Months Ended

Jul. 02, 2011

Operating Segment Information (Tables) [Abstract]

Schedule of Segment Reporting Information, by Segment [Text Block]

Segment information is summarized as follows:

			Three Months Ended				Six Months Ended
			July 2,		June 26,		July 2,		June 26,
(In Millions)			2011		2010		2011		2010
Net revenue
PC Client Group
	Microprocessor revenue		$	6,533	$	5,902	$	13,356	$	11,594
	Chipsets, motherboard, and other revenue			1,788		1,599		3,586		3,282
				8,321		7,501		16,942		14,876
Data Center Group
	Microprocessor revenue			2,054		1,797		4,115		3,349
	Chipsets, motherboard, and other revenue			382		317		785		636
				2,436		2,114		4,900		3,985
Other Intel architecture operating segments				1,389		755		2,538		1,429
Software and services operating segments				511		65		751		123
All other				375		330		748		651
		Total net revenue	$	13,032	$	10,765	$	25,879	$	21,064
Operating income (loss)
	PC Client Group		$	3,284	$	3,333	$	6,827	$	6,420
	Data Center Group			1,204		1,061		2,426		1,894
	Other Intel architecture operating segments			(33)		76		(69)		102
	Software and services operating segments			(14)		(48)		(66)		(92)
	All other			(506)		(441)		(1,025)		(895)
		Total operating income (loss)	$	3,935	$	3,981	$	8,093	$	7,429

XML



Consolidated Condensed Balance Sheets (USD $) In Millions	6 Months Ended	12 Months Ended
	Jul. 02, 2011	Dec. 25, 2010
Current assets:
Cash and cash equivalents	$ 4,635	$ 5,498
Short-term investments	3,106	11,294
Trading assets	3,806	5,093
Accounts receivable, net	3,359	2,867
Inventories	4,030	3,757
Deferred tax assets	1,973	1,488
Other current assets	2,193	1,614
Total current assets	23,102	31,611
Property, plant and equipment, net of accumulated depreciation of $34,093 ($32,582 as of December 25, 2010)	20,778	17,899
Marketable equity securities	892	1,008
Other long-term investments	992	3,026
Goodwill	9,141	4,531
Identified intangible assets, net	6,700	860
Other long-term assets	4,484	4,251
Total assets	66,089	63,186
Current liabilities:
Short-term debt	71	38
Accounts payable	2,742	2,290
Accrued compensation and benefits	2,111	2,888
Accrued advertising	1,086	1,007
Deferred Income	1,824	747
Other accrued liabilities	2,520	2,357
Total current liabilities	10,354	9,327
Long-term income taxes payable	188	190
Long-term debt	2,090	2,077
Long-term deferred tax liabilities	2,215	926
Other long-term liabilities	2,519	1,236
Contingencies (Note 26)
Stockholders' equity:
Preferred stock	0	0
Common stock and capital in excess of par value, 5,285 shares issued and outstanding (5,581 issued and 5,511 outstanding as of December 25, 2010)	16,245	16,178
Accumulated other comprehensive income (loss)	466	333
Retained earnings	32,012	32,919
Total stockholders' equity	48,723	49,430
Total liabilities and stockholders' equity	$ 66,089	$ 63,186

XML



Consolidated Condensed Balance Sheets (Parenthetical) (USD $) In Millions	Jul. 02, 2011	Dec. 25, 2010
Current assets:
Accumulated depreciation	$ 34,093	$ 32,582
Stockholders' equity:
Common stock, shares issued	5,285	5,581
Common stock, shares outstanding	5,285	5,511

XML



Comprehensive Income (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010
Comprehensive Income (Loss), Net of Tax [Abstract]
Net income	$ 2,954	$ 2,887	$ 6,114	$ 5,329
Change in net unrealized holding gain (loss) on available-for-sale investments	(36)	(16)	(41)	38
Change in deferred tax asset valuation allowance	1	(6)	(14)	28
Change in net unrealized holding gain (loss) on derivatives	(7)	(109)	105	(174)
Change in net prior service cost		(40)		(40)
Change in actuarial loss	(6)	(12)	(13)	(14)
Change in net foreign currency translation adjustment	33		96
Total comprehensive income	2,939	2,704	6,247	5,167
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated net unrealized holding gain (loss) on available-for-sale investments	360		360		401
Accumulated net change in deferred tax asset valuation allowance	189		189		203
Accumulated net unrealized holding gain (loss) on derivatives	232		232		127
Accumulated net prior service cost	(36)		(36)		(36)
Accumulated net actuarial loss	(375)		(375)		(362)
Accumulated net foreign currency translation adjustment	96		96
Total accumulated other comprehensive income (loss)	$ 466		$ 466		$ 333

XML



Available For Sale Investments (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010
Available-For-Sale Investments [Abstract]
Adjusted Cost	$ 8,609		$ 8,609		$ 19,677
Gross Unrealized Gains			582		648
Gross Unrealized Losses			(25)		(19)
Fair Value	9,166		9,166		20,306
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	1,200	44	8,800	337
Available-for-sale Securities, Gross Realized Gains	36	12	64	79
Available-For-Sale Investments, Debt Maturities [Abstract]
Due in 1 year or less, Cost	6,726		6,726
Due in 1-2 years, Cost	643		643
Due in 2-5 years, Cost	283		283
Due after 5 years, Cost	4		4
Instruments not due at a single maturity date, Cost	619		619
Cost, Total	8,275		8,275
Due in 1 year or less, Fair Value	6,724		6,724
Due in 1-2 years, Fair Value	650		650
Due in 2-5 years, Fair Value	288		288
Due after 5 years, Fair Value	3		3
Instruments not due at a single maturity date, Fair Value	609		609
Fair Value, Total	8,274		8,274
Net unrealized holding gains (losses) included in other comprehensive income (loss)	(12)	(17)	24	134
Net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings	44	7	88	74
Bank Deposits [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	1,155		1,155		1,550
Gross Unrealized Gains					1
Gross Unrealized Losses			(1)
Fair Value	1,154		1,154		1,551
Marketable Equity Securities [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	334		334		380
Gross Unrealized Gains			568		629
Gross Unrealized Losses			(10)		(1)
Fair Value	892		892		1,008
Corporate Bonds [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	1,332		1,332		2,250
Gross Unrealized Gains			13		9
Gross Unrealized Losses			(3)		(4)
Fair Value	1,342		1,342		2,255
Asset-Backed Securities [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	69		69		76
Gross Unrealized Losses			(10)		(9)
Fair Value	59		59		67
Government Bonds [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	1,392		1,392		10,075
Gross Unrealized Gains			1		9
Gross Unrealized Losses			(1)		(5)
Fair Value	1,392		1,392		10,079
Commercial Paper [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	3,777		3,777		5,312
Fair Value	3,777		3,777		5,312
Money Market Fund Deposits [Member]
Available-For-Sale Investments [Abstract]
Adjusted Cost	550		550		34
Fair Value	$ 550		$ 550		$ 34

XML



Identified Intangible Assets

6 Months Ended

Jul. 02, 2011

Identified Intangible Assets [Abstract]

Identified Intangible Assets

Note 18: Identified Intangible Assets

Identified intangible assets consisted of the following as of July 2, 2011and December 25, 2010:

	July 2, 2011
			Accumulated
(In Millions)	Gross Assets		Amortization		Net
Acquisition-related developed technology	$	2,534	$	(307)	$	2,227
Acquisition-related customer relationships		1,710		(117)		1,593
Acquisition-related trade names		65		(15)		50
Licensed technology		2,331		(620)		1,711
Identified intangible assets subject to amortization	$	6,640	$	(1,059)	$	5,581
Acquisition-related trade names		828		—		828
Other intangible assets		291		—		291
Identified intangible assets not subject to amortization	$	1,119	$	—	$	1,119
Total identified intangible assets	$	7,759	$	(1,059)	$	6,700
	December 25, 2010
			Accumulated
(In Millions)	Gross Assets		Amortization		Net
Acquisition-related developed technology	$	235	$	(97)	$	138
Acquisition-related customer relationships		152		(10)		142
Acquisition-related trade names		46		(10)		36
Licensed technology		1,204		(765)		439
Identified intangible assets subject to amortization	$	1,637	$	(882)	$	755
Other intangible assets		105		—		105
Total identified intangible assets	$	1,742	$	(882)	$	860

As a result of our acquisition of McAfee during the first quarter of 2011, we recorded $3.6 billion of identified intangible assets. In addition, as a result of our seven other acquisitions during the first half of 2011, we recorded $1.3 billion of identified intangible assets, of which substantially all was from the acquisition of the WLS business of Infineon. For further information about identified intangible assets recorded as a result of acquisitions during the first half of 2011, see “Note 15: Acquisitions.”

In January 2011, we entered into a long-term patent cross-license agreement with NVIDIA. Under the agreement, we received a license to all of NVIDIA's patents while NVIDIA products are licensed to our patents, subject to exclusions for x86 products, certain chipsets, and certain flash memory technology products. The agreement also included settlement of the existing litigation between the companies as well as broad mutual general releases. We agreed to make payments totaling $1.5 billion to NVIDIA over six years ($300 million in each of January 2011, 2012, and 2013; and $200 million in each of January 2014, 2015, and 2016), which resulted in a liability totaling approximately $1.4 billion, on a discounted basis. In the fourth quarter of 2010, we recognized an expense of $100 million related to the litigation settlement. In the first quarter of 2011, we recognized the remaining amount of $1.3 billion as licensed technology which will be amortized into cost of sales over its estimated useful life of 17 years. As of July 2, 2011, the remaining liability of $1.1 billion is classified within other accrued liabilities and other long-term liabilities, based on the expected timing of the underlying payments.

For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Acquisition-related developed technology	$	137	$	16	$	210	$	32
Licensed technology		43		43		89		85
Cost of sales	$	180	$	59	$	299	$	117
Acquisition-related customer relationships	$	73	$	2	$	107	$	3
Acquisition-related trade names		3		2		5		4
Amortization of acquisition-related intangibles	$	76	$	4	$	112	$	7

Based on the identified intangible assets that are subject to amortization as of July 2, 2011, we expect future amortization expense to be as follows:

	Remainder
(In Millions)	of 2011		2012		2013		2014		2015
Acquisition-related developed technology	$	271	$	522	$	506	$	487	$	208
Licensed technology		90		171		154		143		125
Cost of sales	$	361	$	693	$	660	$	630	$	333
Acquisition-related customer relationships	$	146	$	284	$	264	$	260	$	250
Acquisition-related trade names		5		10		10		10		9
Amortization of acquisition-related intangibles	$	151	$	294	$	274	$	270	$	259

XML



Document and Entity Information In Millions	6 Months Ended
	Jul. 02, 2011	Jul. 29, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	Intel Corporation
Entity Central Index Key	0000050863
Document Type	10-Q
Document Period End Date	Jul. 02, 2011
Amendment Flag	false
Company Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		5,251
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

XML



Earnings Per Share (Tables)

6 Months Ended

Jul. 02, 2011

Earnings Per Share [Abstract]

Earnings Per Share Basic and Diluted [Text Block]

We computed our basic and diluted earningsper common share as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net income available to common stockholders	$	2,954	$	2,887	$	6,114	$	5,329
Weighted average common shares outstanding — basic		5,294		5,563		5,376		5,546
Dilutive effect of employee equity incentive plans		94		96		98		98
Dilutive effect of convertible debt		53		52		53		52
Weighted average common shares outstanding — diluted		5,441		5,711		5,527		5,696
Basic earnings per common share	$	0.56	$	0.52	$	1.14	$	0.96
Diluted earnings per common share	$	0.54	$	0.51	$	1.11	$	0.94

XML



Borrowings

6 Months Ended

Jul. 02, 2011

Borrowings [Abstract]

Borrowings

Note 21: Borrowings

In 2005, we issued $1.6billion of junior subordinated convertible debentures (the 2005 debentures) due in 2035. The conversion rate for the 2005 debentures adjusts for certain events outlined in the indenture governing the debentures, such as quarterly dividend distributions in excess of $0.10 per share. As of July 2, 2011, the conversion rate was 32.94 shares of common stock per $1,000 principal amount of debentures, representing an effective conversion price of approximately $30.36 per share of common stock. As of December 25, 2010, the conversion rate was 32.52 shares of common stock per $1,000 principal amount of debentures, representing an effective conversion price of approximately $30.75 per share of common stock.

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Employee Equity Incentive Plans (Tables)

6 Months Ended

Jul. 02, 2011

Employee Equity Incentive Plans (Tables) [Abstract]

Restricted Stock Units Estimated Values And Weighted Average Assumptions [Text Block]

We estimate the fair value of restricted stock unit awards with time-based vesting using the value of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting. We estimate the fair value of market-based restricted stock units using a Monte Carlo simulation model on the date of grant. We based the weighted average estimated values of restricted stock unit grants, as well as the weighted average assumptions that we used in calculating the fair value, on estimates at the date of grant, as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
	2011			2010			2011			2010
Estimated values	$	19.55		$	22.56		$	19.76		$	22.71
Risk-free interest rate		0.7	%		1.1	%		0.8	%		1.1	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.6	%
Volatility		n/a			n/a			27	%		30	%

Stock Options And Stock Purchase Plan Estimated Values And Weighted Average Assumptions [Text Block]

We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:

	Stock Options												Stock Purchase Plan
	Three Months Ended						Six Months Ended							Six Months Ended
	July 2,			June 26,			July 2,			June 26,				July 2,			June 26,
	2011			2010			2011			2010				2011			2010
Estimated values	$	3.89		$	4.87		$	3.89		$	4.83			$	4.41		$	4.57
Expected life (in years)		5.4			4.7			5.3			5.0				0.5			0.5
Risk-free interest rate		2.3	%		2.5	%		2.3	%		2.6	%			0.2	%		0.2	%
Volatility		26	%		27	%		26	%		28	%			23	%		32	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.7	%			3.4	%		3.2	%

Restricted Stock Unit Activity [Text Block]

Activity with respect to outstanding restricted stock units (RSUs) for the first halfof 2011was as follows:

		Weighted
		Average
	Number of	Grant-Date
(In Millions, Except Per RSU Amounts)	RSUs	Fair Value
December 25, 2010	99.8	$	18.56
Granted	40.7	$	19.76
Assumed in acquisition	5.8	$	20.80
Vested	(33.2)	$	18.41
Forfeited	(2.8)	$	19.29
July 2, 2011	110.3	$	19.14

Stock Options Activity [Text Block]

Activity with respect to outstanding stock options for the first half of 2011 was as follows:

			Weighted
		Number of	Average
(In Millions, Except Per Option Amounts)		Options	Exercise Price
December 25, 2010		386.4	$	20.45
Granted		13.1	$	21.27
Assumed in acquisition		11.8	$	15.95
Exercised		(22.0)	$	18.59
Cancelled and forfeited		(6.0)	$	20.03
Expired		(16.6)	$	25.01
July 2, 2011		366.7	$	20.25
Options exercisable as of:
	December 25, 2010	263.0	$	21.03
	July 2, 2011	248.7	$	20.69

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Available-for-Sale Investments

6 Months Ended

Jul. 02, 2011

Available-for-Sale Securities [Abstract]

Available-for-Sale Investments

Note 7: Available-for-Sale Investments

Available-for-sale investments as of July 2, 2011and December 25, 2010 were as follows:

	July 2, 2011								December 25, 2010
			Gross		Gross						Gross		Gross
	Adjusted		Unrealized		Unrealized		Fair		Adjusted		Unrealized		Unrealized		Fair
(In Millions)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Commercial paper	$	3,777	$	—	$	—	$	3,777	$	5,312	$	—	$	—	$	5,312
Government bonds		1,392		1		(1)		1,392		10,075		9		(5)		10,079
Corporate bonds		1,332		13		(3)		1,342		2,250		9		(4)		2,255
Bank deposits		1,155		—		(1)		1,154		1,550		1		—		1,551
Marketable equity securities		334		568		(10)		892		380		629		(1)		1,008
Asset-backed securities		69		—		(10)		59		76		—		(9)		67
Money market fund deposits		550		—		—		550		34		—		—		34
Total available-for-sale
investments	$	8,609	$	582	$	(25)	$	9,166	$	19,677	$	648	$	(19)	$	20,306

In the preceding table, government bonds include bonds issued or deemed to be guaranteed by government entities, such as instruments issued by non-U.S. governments, U.S. Treasury securities, FDIC-insured corporate bonds, and U.S. agency securities. Bank deposits were primarily issued by institutions outside the U.S. as of July 2, 2011 and December 25, 2010.

The amortized cost and fair value of available-for-sale debt investments as of July 2, 2011, by contractual maturity, were as follows:

(In Millions)	Cost		Fair Value
Due in 1 year or less	$	6,726	$	6,724
Due in 1–2 years		643		650
Due in 2–5 years		283		288
Due after 5 years		4		3
Instruments not due at a single maturity date		619		609
Total	$	8,275	$	8,274

Instruments not due at a single maturity date in the table above includes asset-backed securities and money market fund deposits.

We sold available-for-sale investments for proceeds of $1.2 billion in the second quarter of 2011 and $8.8 billion in the first half of 2011 ($44 million in the second quarter of 2010 and $337 million in the first half of 2010). Substantially all of the proceeds in the first half of 2011 were from debt investments that were primarily used to fund our acquisition of McAfee. The gross realized gains on sales of available-for-sale investments were $36 million in the second quarter of 2011and $64 million in the first half of 2011($12 million in the second quarter of 2010 and $79 million in the first half of 2010) and were primarily related to our sales of marketable equity securities. We determine the cost of an investment sold on an average cost basis at the individual security level.

The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in other comprehensive income (loss) and the before-tax net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings were as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Net unrealized holding gains (losses) included in
other comprehensive income (loss)	$	(12)	$	(17)	$	24	$	134
Net gains (losses) reclassified from accumulated other
comprehensive income (loss) into earnings	$	44	$	7	$	88	$	74

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Employee Equity Incentive Plans

6 Months Ended

Jul. 02, 2011

Employee Equity Incentive Plans [Abstract]

Employee Equity Incentive Plans

Note 22: Employee Equity Incentive Plans

Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests.

In connection with our completed acquisition of McAfee, we assumed their equity incentive plans and issued replacement awards in the first quarter of 2011. The stock options and restricted stock units issued generally retain the terms and conditions of the respective plans under which they were originally granted. We will not grant additional shares under these plans.

In May 2011, stockholders approved an extension of the 2006 Equity Incentive Plan (2006 Plan). Stockholders approved 168million additional shares for issuance, increasing the total shares of common stock available for issuance as equity awards to employees and non-employee directors to 596 million shares. The approval also extended the expiration date of the 2006 Plan to June 2014. The maximum shares to be awarded as non-vested shares (restricted stock) or non-vested share units (restricted stock units) was increased to 394 million shares. As of July 2, 2011, 309 million shares remained available for future grant under the 2006 Plan.

The 2006 Stock Purchase Plan allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific dates. Rights to purchase shares are granted during the first and third quarters of each year. In May 2011, stockholders approved an extension of the 2006 Stock Purchase Plan. Stockholders approved 133 million additional shares for issuance, increasing the total shares of common stock available for issuance to373 million shares. The approval also extended the expiration date of the 2006 Stock Purchase Plan to August 2016. As of July 2, 2011, 263 million shares were available for issuance under the 2006 Stock Purchase Plan.

Share-Based Compensation

We recognized $262 million of share-based compensation in the second quarter of 2011 and $562 million for the first half of 2011 ($232 million in the second quarter of 2010 and $480 million for the first half of 2010).

We estimate the fair value of restricted stock unit awards with time-based vesting using the value of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting. We estimate the fair value of market-based restricted stock units using a Monte Carlo simulation model on the date of grant. We based the weighted average estimated values of restricted stock unit grants, as well as the weighted average assumptions that we used in calculating the fair value, on estimates at the date of grant, as follows:

	Three Months Ended						Six Months Ended
	July 2,			June 26,			July 2,			June 26,
	2011			2010			2011			2010
Estimated values	$	19.55		$	22.56		$	19.76		$	22.71
Risk-free interest rate		0.7	%		1.1	%		0.8	%		1.1	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.6	%
Volatility		n/a			n/a			27	%		30	%

We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:

	Stock Options												Stock Purchase Plan
	Three Months Ended						Six Months Ended							Six Months Ended
	July 2,			June 26,			July 2,			June 26,				July 2,			June 26,
	2011			2010			2011			2010				2011			2010
Estimated values	$	3.89		$	4.87		$	3.89		$	4.83			$	4.41		$	4.57
Expected life (in years)		5.4			4.7			5.3			5.0				0.5			0.5
Risk-free interest rate		2.3	%		2.5	%		2.3	%		2.6	%			0.2	%		0.2	%
Volatility		26	%		27	%		26	%		28	%			23	%		32	%
Dividend yield		3.4	%		2.6	%		3.4	%		2.7	%			3.4	%		3.2	%

Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each year.

Restricted Stock Unit Awards

Activity with respect to outstanding restricted stock units (RSUs) for the first halfof 2011was as follows:

		Weighted
		Average
	Number of	Grant-Date
(In Millions, Except Per RSU Amounts)	RSUs	Fair Value
December 25, 2010	99.8	$	18.56
Granted	40.7	$	19.76
Assumed in acquisition	5.8	$	20.80
Vested	(33.2)	$	18.41
Forfeited	(2.8)	$	19.29
July 2, 2011	110.3	$	19.14

The aggregate fair value of awards that vested during the first half of 2011 was $653 million, which represents the market value of Intel common stock on the date that the restricted stock units vested. The grant date fair value of awards that vested during the first half of 2011 was $611 million. The number of restricted stock units vested includes shares that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. As of July 2, 2011, 4 million of the outstanding restricted stock units were market-based restricted stock units.

Stock Option Awards

Activity with respect to outstanding stock options for the first half of 2011 was as follows:

			Weighted
		Number of	Average
(In Millions, Except Per Option Amounts)		Options	Exercise Price
December 25, 2010		386.4	$	20.45
Granted		13.1	$	21.27
Assumed in acquisition		11.8	$	15.95
Exercised		(22.0)	$	18.59
Cancelled and forfeited		(6.0)	$	20.03
Expired		(16.6)	$	25.01
July 2, 2011		366.7	$	20.25
Options exercisable as of:
	December 25, 2010	263.0	$	21.03
	July 2, 2011	248.7	$	20.69

During the first half of 2011, the aggregate intrinsic value of stock option exercises was $89 million, which represents the difference between the exercise price and the value of Intel common stock at the time of exercise.

Stock Purchase Plan

Employees purchased 10.3 million shares in the first half of 2011 (9.8 million shares in the first half of 2010) for $181 million ($161million in the first half of 2010) under the 2006 Stock Purchase Plan.

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Acquisitions (Tables)

6 Months Ended

Jul. 02, 2011

Acquisitions (Tables) [Abstract]

Consideration To Acquire McAfee, Inc. [Text Block]

Total consideration to acquire McAfee was $6.7billion (net of $943 million of cash and cash equivalents acquired) and comprised the following:

(In Millions)
Cash	$	6,652
Share-based awards assumed		48
Total	$	6,700

Purchase Price Allocation McAfee, Inc. [Text Block]

Thepreliminary fair values of the assets acquired and liabilities assumed by major class in the acquisition of McAfee were recognized as follows:

(In Millions)
Marketable debt securities	$	329
Goodwill		4,295
Identified intangible assets		3,552
Deferred tax assets		742
Other assets		417
Deferred income		(1,049)
Deferred tax liabilities		(1,191)
Other liabilities		(395)
Total	$	6,700

Schedule Of Intangible Assets Acquired As Part Of Business Combination, McAfee, Inc. [Text Block]

The identified intangible assets assumed in the acquisition of McAfee were recognized as follows based upon their fair values as of February 28, 2011:

				Estimated
		Fair Value		Useful Life
		(In Millions)		(In Years)
Developed technology		$	1,221	4
Customer relationships			1,418	2–7
	Total identified intangible assets subject to amortization	$	2,639
In-process research and development			92
Trade names			821
Total identified intangible assets		$	3,552

Purchase Price Allocation For Series Of Individually Immaterial Business Acquisitions [Text Block]

The preliminary fair values of the assets acquired and liabilities assumed by major class in the acquisitions completed during the first half of 2011, excluding McAfee, was allocated as follows:

(In Millions)
Fair value of net tangible assets acquired	$	157
Goodwill		248
Identified intangible assets		1,295
Total	$	1,700

Schedule Of Intangible Assets Acquired As Part Of Business Combination For Series Of Individually Immaterial Business Acquisitions [Text Block]

The identified intangible assets assumed in the acquisitions completed during the first half of 2011, excluding McAfee, were recognized as follows:

				Estimated
		Fair Value		Useful Life
		(In Millions)		(In Years)
Developed technology		$	1,037	3–9
Customer relationships			96	5–8
Other intangible assets			43	2–5
	Total identified intangible assets subject to amortization	$	1,176
In-process research and development			119
Total identified intangible assets		$	1,295

Business Acquisition, Pro Forma Information [Text Block]

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net revenue	$	13,100	$	11,573	$	26,527	$	22,587
Net income	$	3,014	$	2,778	$	6,198	$	5,082
Diluted earnings per share	$	0.55	$	0.49	$	1.12	$	0.89

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Derivative Financial Instruments (Tables)

6 Months Ended

Jul. 02, 2011

Derivative Financial Instruments (Tables) [Abstract]

Gross Notional Amounts for Outstanding Derivatives [Text Block]

Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Currency forwards	$	8,661	$	8,502	$	6,940
Interest rate swaps		2,055		2,166		2,156
Currency interest rate swaps		1,713		2,259		2,287
Embedded debt derivatives		3,600		3,600		3,600
Total return swaps		797		627		525
Equity options		44		496		511
Currency options		—		94		94
Other		120		66		68
Total	$	16,990	$	17,810	$	16,181

Gross Notional Amounts for Currency Forwards, Currency Interest Rate Swaps, and Currency Options, Presented by Currency [Text Block]

The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Euro	$	4,289	$	4,445	$	4,371
Japanese yen		2,935		3,440		2,412
Israeli shekel		1,459		1,191		712
Chinese yuan		403		347		368
Malaysian ringgit		365		382		310
British pound sterling		368		424		514
Other		555		626		634
Total	$	10,374	$	10,855	$	9,321

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Text Block]

The fair values of our derivative instruments as of July 2, 2011 and December 25, 2010 were as follows:

		July 2, 2011								Dec. 25, 2010
		Other		Other		Other		Other		Other		Other		Other		Other
		Current		Long-Term		Accrued		Long-Term		Current		Long-Term		Accrued		Long-Term
(In Millions)		Assets		Assets		Liabilities		Liabilities		Assets		Assets		Liabilities		Liabilities
Derivatives designated as
	hedging instruments
Currency forwards		$	171	$	2	$	9	$	1	$	120	$	3	$	43	$	3
Other			2		—		—		—		2		—		—		—
Total derivatives designated as
	hedging instruments	$	173	$	2	$	9	$	1	$	122	$	3	$	43	$	3
Derivatives not designated as
	hedging instruments
Currency forwards		$	28	$	—	$	17	$	—	$	35	$	—	$	14	$	—
Interest rate swaps			1		—		80		—		2		—		96		—
Currency interest rate swaps			7		—		60		48		64		17		47		13
Embedded debt derivatives			—		—		—		36		—		—		—		31
Total return swaps			—		5		—		—		41		6		—		—
Equity options			—		1		6		—		65		5		7		—
Other			—		23		—		—		1		19		1		—
Total derivatives not designated
	as hedging instruments	$	36	$	29	$	163	$	84	$	208	$	47	$	165	$	44
Total derivatives		$	209	$	31	$	172	$	85	$	330	$	50	$	208	$	47

Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Text Block]

The before-tax effects of derivative instruments in cash flow hedging relationships for the three and six months endedJuly 2, 2011 and June 26, 2010 were as follows:

	Gains (Losses) Recognized
	in OCI on Derivatives				Gains (Losses) Reclassified from Accumulated OCI Into
	(Effective Portion)				Income by Derivative Instrument Type (Effective Portion)
(In Millions)	Q2 2011		Q2 2010		Location	Q2 2011		Q2 2010
Currency forwards	$	55	$	(126)	Cost of sales	$	42	$	8
					Research and development		15		8
					Marketing, general and administrative		12		(1)
Other		(1)		3	Cost of sales		1		(1)
Total	$	54	$	(123)		$	70	$	14
	Gains (Losses) Recognized
	in OCI on Derivatives				Gains (Losses) Reclassified from Accumulated
	(Effective Portion)				OCI into Income by Derivative Instrument Type (Effective Portion)
(In Millions)	YTD 2011		YTD 2010		Location	YTD 2011		YTD 2010
Currency forwards	$	256	$	(178)	Cost of sales	$	76	$	29
					Research and development		23		17
					Marketing, general and administrative		17		6
Other		2		3	Cost of sales		2		(3)
Total	$	258	$	(175)		$	118	$	49

Schedule of Derivative Instruments Not Designated as Hedging Instruments [Text Block]

The effects of derivative instruments not designated as hedging instruments on the consolidated condensed statements of income were as follows:

			Three Months Ended				Six Months Ended
	Location of Gains (Losses)		July 2,		June 26,		July 2,		June 26,
(In Millions)	Recognized in Income on Derivatives		2011		2010		2011		2010
Currency forwards	Interest and other, net		$	2	$	108	$	16	$	143
Interest rate swaps	Interest and other, net			(18)		(33)		(19)		(46)
Currency interest rate swaps	Interest and other, net			(18)		144		(128)		226
Total return swaps	Various			(3)		(26)		20		(2)
Other	Interest and other, net
Equity options	Gains (losses) on other equity
		investments, net		51		50		(66)		15
Other	Gains (losses) on other equity
		investments, net		—		—		2		(4)
Total			$	14	$	243	$	(175)	$	332

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Chipset Design Issue

6 Months Ended

Jul. 02, 2011

Chipset Design Issue [Abstract]

Chipset Design Issue

Note 20: Chipset Design Issue

In January 2011, as part of our ongoing quality assurance procedures, we identified a design issue with the Intel® 6 Series Express Chipset family (formerly code-named Cougar Point). The issue affected chipsets sold in the fourth quarter of 2010 and January 2011. We subsequently implemented a silicon fix, and began shipping the updated version of the affected chipset in February 2011. We estimate that the total cost to repair and replace affected materials and systems, located with customers and in the market, will be $733 million. We recorded a charge of $311 million in the fourth quarter of 2010, which comprised $67 million in product costs for the affected chipsets and $244 million to establish a product accrual for this issue. We recognized acharge of $343 million in the first quarterof 2011,primarily related to an additional product accrual for the estimated costs to repair and replace affected materials and systems associated with products sold subsequent to December 25, 2010.In the second quarter of 2011, we recognized an additional $79 million charge as we finalized agreements with customers for reimbursement to repair and replace affected materials and systems. Therefore, we do not expect to have any significant future adjustments to our estimate. The charges incurred in the first half of 2011 are reflected in the results of the PC Client Group operating segment. As of July 2, 2011,the remaining product accrual for the chipset design issue was $346 million and is classified within other accrued liabilities.

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Gains (Losses) on Equity Method Investments, Net

6 Months Ended

Jul. 02, 2011

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:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Equity method losses, net	$	(67)	$	(9)	$	(129)	$	(44)
Impairment charges		—		(6)		—		(10)
Other, net		1		91		21		91
Total gains (losses) on equity method investments, net	$	(66)	$	76	$	(108)	$	37

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Accounting Changes

6 Months Ended

Jul. 02, 2011

Accounting Changes [Abstract]

Accounting Changes

Note 3: Accounting Changes

In the first quarter of 2011, we adopted new standards for revenue recognition with multiple deliverables. These new standards change the determination of whether the individual deliverables included in a multiple-element arrangement may be treated as separate units for accounting purposes. Additionally, these new standards modify the method by which revenue is allocated to the separately identified deliverables. The adoption of these new standards did not have a significant impact on our consolidated condensed financial statements.

In the first quarter of 2011, we adopted new standards that remove certain tangible products and associated software from the scope of the software revenue recognition guidance. The adoption of these new standards did not have a significant impact on our consolidated condensed financial statements.

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Trading Assets (Tables)

6 Months Ended

Jul. 02, 2011

Trading Assets (Tables) [Abstract]

Trading Assets Table [Text Block]

Trading assets as of July 2, 2011 and December 25, 2010were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Marketable debt instruments	$	3,796	$	4,705
Marketable equity securities		10		388
Total trading assets	$	3,806	$	5,093

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Derivative Financial Instruments

6 Months Ended

Jul. 02, 2011

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 9: 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. 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. For presentation on our consolidated condensed balance sheets, we do not offset fair value amounts recognized for derivative instruments under master netting arrangements.

Currency Exchange Rate Risk

We are exposed to currency exchange rate risk and generally hedge our exposures with currency forward contracts, currency options, or currency interest rate swaps. Substantially all of our revenue is transacted in U.S. dollars. However, a significant amount of our 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. Our non-U.S.-dollar-denominated investments in debt instruments and loans receivable are generally hedged with offsetting currency forward contracts or currency interest rate swaps. These programs reduce, but do not 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. All of our currency forward contracts are settled at maturity involving one cash-payment exchange. 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 in the same line item on the consolidated condensed statements of income as the impact of the hedged transaction.
• Currency derivatives without hedge accounting designation that utilize currency forward contracts, or currency interest rate swaps to economically hedge the functional currency equivalent cash flows of recognized monetary assets and liabilities, non-U.S.-dollar-denominated debt instruments classified as trading assets, and hedges of non-U.S.-dollar-denominated loans receivable recognized at fair value. The majority of these instruments mature within 12 months. The currency interest rate swaps are settled at various interest payment times involving cash payments at each interest and principal payment date with the majority of the contracts having quarterly payments. 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 condensed statements of income most closely associated with the related exposures, primarily in interest and other, net, except for equity-related gains or losses, which we primarily record in gains (losses) on other equity investments, net.

Interest Rate Risk

Our primary objective for holding investments in debt instruments is to preserve principal while maximizing yields. We generally swap the returns on our investments in fixed-rate debt instruments with remaining maturities longer than six months into U.S.-dollar three-month LIBOR-based returns, unless management specifically approves otherwise. These swaps are settled at various interest payment times involving cash payments at each interest and principal payment date, with the majority of the contracts having quarterly payments.

Our interest rate risk management programs include:

• Interest rate derivatives with cash flow hedge accounting designation that utilizeinterest rate swap agreements to modify the interest characteristics of debt instruments. 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 in the same line item on the consolidated condensed statements of income as the impact of the hedged transaction.
• Interest rate derivatives without hedge accounting designation that utilize interest rate swaps and currency interest rate swaps in economic hedging transactions, including hedges of non-U.S.-dollar-denominated debt instruments classified as trading assets and hedges of non-U.S.-dollar-denominated loans receivable recognized at fair value. Floating interest rates on the swaps are reset on a monthly, quarterly, or semiannual basis. Changes in fair value of the debt instruments classified as trading assets and hedges of loans receivable recognized at fair value are generally offset by changes in fair value of the related derivatives, both of which are recorded in interest and other, net.

Equity Market Risk

Our marketable investments include marketable equity securities and equity derivative instruments. To the extent that our marketable equity securities have strategic value, we typically do not attempt to reduce or eliminate our equity market exposure through hedging activities. We may enter into transactions to reduce or eliminate the equity market risks for our investments in strategic equity derivative instruments. For securities that we no longer consider strategic, we evaluate legal, market, and economic factors in our decision on the timing of disposal and whether it is possible and appropriate to hedge the equity market risk. Our equity market risk management program includes equity derivatives without hedge accounting designation that utilize warrants, equity options, or other equity derivatives. We recognize changes in the fair value of such derivatives in gains (losses) on other equity investments, net. We also utilize total return swaps to offset changes in liabilities related to the equity market risks of certain deferred compensation arrangements. Gains and losses from changes in fair value of these total return swaps are generally offset by the gains and losses on the related liabilities, which are both recorded in cost of sales and operating expenses.

In the second quarter of 2010, we sold our ownership interest in Numonyxto Micronfor consideration consisting of shares of Micron. We also entered into equity option transactions that economically hedgeda portion of the ownership interest in Micron that we acquired.In the second quarter of 2011, we sold ourremaining ownership interest in Micron and the related equity options matured.

Commodity Price Risk

We operate facilities that consume commodities, and have established forecasted transaction risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in commodity prices, such as those for natural gas. These programs reduce, but do not always entirely eliminate, the impact of commodity price movements.

Our commodity price risk management program includes commodityderivatives with cash flow hedge accounting designationthat utilizecommodity swap contracts to hedge future cash flow exposures to the variability in commodity prices. These instruments generally mature within 12 months. For these derivatives, we report the after-tax gain (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 condensed statements of income as the impact of the hedged transaction.

Volume of Derivative Activity

Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Currency forwards	$	8,661	$	8,502	$	6,940
Interest rate swaps		2,055		2,166		2,156
Currency interest rate swaps		1,713		2,259		2,287
Embedded debt derivatives		3,600		3,600		3,600
Total return swaps		797		627		525
Equity options		44		496		511
Currency options		—		94		94
Other		120		66		68
Total	$	16,990	$	17,810	$	16,181

The gross notional amounts for currency forwards, currency interest rate swaps, and currency options (presented by currency) were as follows:

	July 2,		Dec. 25,		June 26,
(In Millions)	2011		2010		2010
Euro	$	4,289	$	4,445	$	4,371
Japanese yen		2,935		3,440		2,412
Israeli shekel		1,459		1,191		712
Chinese yuan		403		347		368
Malaysian ringgit		365		382		310
British pound sterling		368		424		514
Other		555		626		634
Total	$	10,374	$	10,855	$	9,321

Credit-Risk-Related Contingent Features

An insignificant amount of our derivative instruments contain credit-risk-related contingent features, such as provisions that require our debt to maintain an investment grade credit rating from each of the major credit rating agencies. As of July 2, 2011 and December 25, 2010, we did not have any derivative instruments with credit-risk-related contingent features that were in a significant net liability position.

Fair Values of Derivative Instruments in the Consolidated Condensed Balance Sheets

The fair values of our derivative instruments as of July 2, 2011 and December 25, 2010 were as follows:

		July 2, 2011								Dec. 25, 2010
		Other		Other		Other		Other		Other		Other		Other		Other
		Current		Long-Term		Accrued		Long-Term		Current		Long-Term		Accrued		Long-Term
(In Millions)		Assets		Assets		Liabilities		Liabilities		Assets		Assets		Liabilities		Liabilities
Derivatives designated as
	hedging instruments
Currency forwards		$	171	$	2	$	9	$	1	$	120	$	3	$	43	$	3
Other			2		—		—		—		2		—		—		—
Total derivatives designated as
	hedging instruments	$	173	$	2	$	9	$	1	$	122	$	3	$	43	$	3
Derivatives not designated as
	hedging instruments
Currency forwards		$	28	$	—	$	17	$	—	$	35	$	—	$	14	$	—
Interest rate swaps			1		—		80		—		2		—		96		—
Currency interest rate swaps			7		—		60		48		64		17		47		13
Embedded debt derivatives			—		—		—		36		—		—		—		31
Total return swaps			—		5		—		—		41		6		—		—
Equity options			—		1		6		—		65		5		7		—
Other			—		23		—		—		1		19		1		—
Total derivatives not designated
	as hedging instruments	$	36	$	29	$	163	$	84	$	208	$	47	$	165	$	44
Total derivatives		$	209	$	31	$	172	$	85	$	330	$	50	$	208	$	47

Derivatives in Cash Flow Hedging Relationships

The before-tax effects of derivative instruments in cash flow hedging relationships for the three and six months endedJuly 2, 2011 and June 26, 2010 were as follows:

	Gains (Losses) Recognized
	in OCI on Derivatives				Gains (Losses) Reclassified from Accumulated OCI Into
	(Effective Portion)				Income by Derivative Instrument Type (Effective Portion)
(In Millions)	Q2 2011		Q2 2010		Location	Q2 2011		Q2 2010
Currency forwards	$	55	$	(126)	Cost of sales	$	42	$	8
					Research and development		15		8
					Marketing, general and administrative		12		(1)
Other		(1)		3	Cost of sales		1		(1)
Total	$	54	$	(123)		$	70	$	14
	Gains (Losses) Recognized
	in OCI on Derivatives				Gains (Losses) Reclassified from Accumulated
	(Effective Portion)				OCI into Income by Derivative Instrument Type (Effective Portion)
(In Millions)	YTD 2011		YTD 2010		Location	YTD 2011		YTD 2010
Currency forwards	$	256	$	(178)	Cost of sales	$	76	$	29
					Research and development		23		17
					Marketing, general and administrative		17		6
Other		2		3	Cost of sales		2		(3)
Total	$	258	$	(175)		$	118	$	49

Gains and losses on derivative instruments in cash flow hedging relationships related to hedge ineffectiveness and amounts excluded from effectiveness testing were insignificant during all periods presented in the preceding tables. We estimate that we will reclassify approximately $165 million (before taxes) of net derivative gains included in other accumulated comprehensive income (loss) into earnings within the next 12 months. For all periods presented, there was an insignificant impact on results of operations from discontinued cash flow hedges as a result of forecasted transactions that did not occur.

Derivatives Not Designated as Hedging Instruments

The effects of derivative instruments not designated as hedging instruments on the consolidated condensed statements of income were as follows:

			Three Months Ended				Six Months Ended
	Location of Gains (Losses)		July 2,		June 26,		July 2,		June 26,
(In Millions)	Recognized in Income on Derivatives		2011		2010		2011		2010
Currency forwards	Interest and other, net		$	2	$	108	$	16	$	143
Interest rate swaps	Interest and other, net			(18)		(33)		(19)		(46)
Currency interest rate swaps	Interest and other, net			(18)		144		(128)		226
Total return swaps	Various			(3)		(26)		20		(2)
Other	Interest and other, net
Equity options	Gains (losses) on other equity
		investments, net		51		50		(66)		15
Other	Gains (losses) on other equity
		investments, net		—		—		2		(4)
Total			$	14	$	243	$	(175)	$	332

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Interest and Other, Net

6 Months Ended

Jul. 02, 2011

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:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Interest income	$	20	$	29	$	48	$	55
Interest expense		—		—		(6)		—
Other, net		1		(18)		164		(15)
Total interest and other, net	$	21	$	11	$	206	$	40

In the first quarter of 2011, we recognized a gain upon formation of the Intel and GE joint venture, Care Innovations, of $164 million, included within “other, net,” in the table above. See “Note 11: Equity Method Investments,” for further information.

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Operating Segment Information (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	$ 13,032	$ 10,765	$ 25,879	$ 21,064
Operating income (loss)	3,935	3,981	8,093	7,429
PC Client Group [Member] | Microprocessor Revenue [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	6,533	5,902	13,356	11,594
Data Center Group [Member] | Microprocessor Revenue [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	2,054	1,797	4,115	3,349
PC Client Group [Member] | Chipset, Motherboard, and Other Revenue [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	1,788	1,599	3,586	3,282
Data Center Group [Member] | Chipset, Motherboard, and Other Revenue [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	382	317	785	636
PC Client Group [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	8,321	7,501	16,942	14,876
Operating income (loss)	3,284	3,333	6,827	6,420
Data Center Group [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	2,436	2,114	4,900	3,985
Operating income (loss)	1,204	1,061	2,426	1,894
Other Intel Architecture Operating Segments [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	1,389	755	2,538	1,429
Operating income (loss)	(33)	76	(69)	102
Software and Services Operating Segments [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	511	65	751	123
Operating income (loss)	(14)	(48)	(66)	(92)
All Other [Member]
Schedule of Segment Reporting Information, by Segment [Abstract]
Net Revenue	375	330	748	651
Operating income (loss)	$ (506)	$ (441)	$ (1,025)	$ (895)

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Other Long-Term Assets

6 Months Ended

Jul. 02, 2011

Other Long-Term Assets [Abstract]

Other Long-Term Assets

Note 10: Other Long-Term Assets

Other long-term assets at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Equity method investments	$	1,738	$	1,791
Non-marketable cost method investments		1,009		872
Non-current deferred tax assets		357		289
Loans receivable		651		741
Other		729		558
Total other long-term assets	$	4,484	$	4,251

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Operating Segment Information

6 Months Ended

Jul. 02, 2011

Operating Segment Information [Abstract]

Operating Segment Information

Note 27: Operating Segment Information

Our operating segments in effect as of July 2, 2011 include:

•  
• PC Client Group
• Data Center Group
• Intel Mobile Communications
• Embedded and Communications Group
• Netbook and Tablet Group
• Digital Home Group
• Ultra-Mobility Group
• McAfee
• Wind River Software Group
• Software and Services Group
• Non-Volatile Memory Solutions Group

In the first quarter of 2011, we formed the Netbook and Tablet Group, which includes microprocessors and related chipsets designed for the netbook and tablet market segments, and we divested the Digital Health Group (for further information see “Note 16: Divestitures”). Prior-period amounts have been adjusted retrospectively to reflect these operating segment changes as well as other minor reorganizations. Additionally, in the first quarter of 2011, we formed the Intel Mobile Communications and McAfee operating segments as a result of acquisitions (for further information see “Note 15: Acquisitions”).

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 aggregate and disclose the financial results of the following non-reportable operating segments within “other Intel architecture operating segments”: Intel Mobile Communications, Embedded and Communications Group, Netbook and Tablet Group, Digital Home Group, and Ultra-Mobility Group. We also aggregate and disclose the financial results of the following non-reportable operating segments within “software and services operating segments”: McAfee, Wind River Software Group, and Software and Services Group. Each of these aggregated operating segments does not meet the quantitative thresholds to qualify as reportable operating segments; however, we have elected to disclose the aggregation of these non-reportable operating segments. 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 notebook and desktop (including high-end enthusiast PCs) 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 mobile phone components such as baseband processors, radio frequency transceivers, and power management chips;microprocessors and related chipsets designed for embedded applications; microprocessors and related chipsets designed for the netbook and tablet market segments; products designed for the consumer electronics market segment; and products designed for the handheld market segment.
• Software and services operating segments. Includes software products for endpoint security, system security, consumer security, network security, and risk and compliance from our McAfee business; software optimized products for the embedded and handheld market segments; and software products and services that promote Intel® architecture as the platform of choice for software development.

We have sales and marketing, manufacturing, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments, and the allocated expenses are included in the operating results reported below.

The “All other” category includes revenue, expenses, and charges such as:

• results of operations from our Non-Volatile Memory Solutions Group that includes NAND flash memory products for use in a variety of devices;
• a portion of profit-dependent compensation and other expenses not allocated to the operating segments;
• divested businesses for which discrete operating results are not reviewed by our CODM;
• results of operations of seed businesses that support our initiatives; and
• acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.

The CODM does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue, and, accordingly, there is none to be reported. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. The accounting policies for segment reporting are the same as for Intel as a whole.

Segment information is summarized as follows:

			Three Months Ended				Six Months Ended
			July 2,		June 26,		July 2,		June 26,
(In Millions)			2011		2010		2011		2010
Net revenue
PC Client Group
	Microprocessor revenue		$	6,533	$	5,902	$	13,356	$	11,594
	Chipsets, motherboard, and other revenue			1,788		1,599		3,586		3,282
				8,321		7,501		16,942		14,876
Data Center Group
	Microprocessor revenue			2,054		1,797		4,115		3,349
	Chipsets, motherboard, and other revenue			382		317		785		636
				2,436		2,114		4,900		3,985
Other Intel architecture operating segments				1,389		755		2,538		1,429
Software and services operating segments				511		65		751		123
All other				375		330		748		651
		Total net revenue	$	13,032	$	10,765	$	25,879	$	21,064
Operating income (loss)
	PC Client Group		$	3,284	$	3,333	$	6,827	$	6,420
	Data Center Group			1,204		1,061		2,426		1,894
	Other Intel architecture operating segments			(33)		76		(69)		102
	Software and services operating segments			(14)		(48)		(66)		(92)
	All other			(506)		(441)		(1,025)		(895)
		Total operating income (loss)	$	3,935	$	3,981	$	8,093	$	7,429

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Inventories

6 Months Ended

Jul. 02, 2011

Inventories [Abstract]

Inventories

Note 8: Inventories

Inventories at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Raw materials	$	546	$	471
Work in process		1,450		1,887
Finished goods		2,034		1,399
Total inventories	$	4,030	$	3,757

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Trading Assets (Detail) (USD $) In Millions			3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Dec. 25, 2010	Jun. 26, 2010 Marketable Equity Securities [Member]	Jun. 26, 2010 Marketable Equity Securities [Member]	Jul. 02, 2011 Marketable Debt Instruments [Member]	Jun. 26, 2010 Marketable Debt Instruments [Member]	Jul. 02, 2011 Marketable Debt Instruments [Member]	Jun. 26, 2010 Marketable Debt Instruments [Member]
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Marketable debt instruments	$ 3,796	$ 4,705
Marketable equity securities	10	388
Total trading assets	3,806	5,093
Net gains (losses) on derivatives related to trading securities					(13)	143	(53)	191
Net gains (losses) on trading assets, held			$ 38	$ 38	$ 16	$ (173)	$ 66	$ (234)

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Basis of Presentation

6 Months Ended

Jul. 02, 2011

Basis of Presentation [Abstract]

Basis of Presentation

Note 1: Basis of Presentation

We prepared our interim consolidated condensed financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 25, 2010.

We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2011 is a 53-week fiscal year, and the first quarter of 2011 was a 14-week quarter. Fiscal year 2010 was a 52-week fiscal year, and the first quarter of 2010 was a 13-week quarter.

In the first quarter of 2011, we completed the acquisition of McAfee, Inc. (for further information, see “Note 15: Acquisitions”). Certain of the operations acquired from McAfee have a functional currency other than the U.S. dollar. As a result, translation adjustments have been recorded through accumulated other comprehensive income (loss) beginning in 2011.

We have made estimates and judgments affecting the amounts reported in our consolidated condensed financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult, and subjective judgments include:

• the valuation of non-marketable equity investments and the determination of other-than-temporary impairments;
• the assessment of recoverability of long-lived assets (property, plant and equipment; goodwill; and identified intangibles);
• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions);
• the valuation of inventory; and
• the recognition and measurement of loss contingencies.

The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2010.

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Recent Accounting Standards

6 Months Ended

Jul. 02, 2011

Recent Accounting Standards [Abstract]

Recent Accounting Standards

Note 4: Recent Accounting Standards

In May 2011, the Financial Accounting Standards Board (FASB) issued amended standards to achieve a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. For assets and liabilities categorized as Level 3 and recognized at fair value, these amended standards require disclosure of quantitative information about unobservable inputs, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements. In addition, these amended standards require that we disclose the level in the fair value hierarchy for financial instruments disclosed at fair value but not recorded at fair value. These new standards are effective for us beginning in the first quarter of 2012; early adoption of these standards is prohibited. We do not expect these new standards to significantly impact our consolidated condensed financial statements.

In June 2011, the FASB issued amended standards to increase the prominence of items reported in other comprehensive income. These amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity and require that all changes in stockholders' equity—except investments by, and distributions to, owners—be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, these amendments require that we present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. These new standards are effective for us beginning in the first quarter of 2012 and are to be applied retrospectively. These amended standards will impact the presentation of other comprehensive income but will not impact our financial position or results of operations.

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Gains (Losses) on Equity Method Investments, Net (Tables)

6 Months Ended

Jul. 02, 2011

Gains (Losses) on Equity Method Investments, Net (Tables) [Abstract]

Schedule Of Gains (Losses) On Equity Method Investments, Net [Text Block]

Gains (losses) on equity method investments, net included:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Equity method losses, net	$	(67)	$	(9)	$	(129)	$	(44)
Impairment charges		—		(6)		—		(10)
Other, net		1		91		21		91
Total gains (losses) on equity method investments, net	$	(66)	$	76	$	(108)	$	37

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Contingencies

6 Months Ended

Jul. 02, 2011

Contingencies [Abstract]

Contingencies

Note 26: 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 company's 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 or other events could occur. Unfavorable resolutions could include substantial monetary 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. It is also possible that we could conclude it is in the best interests of our stockholders, employees, and customers to settle one or more such matters, and any such settlement could include substantial payments; however, we have not reached this conclusion with respect to any particular matter at this time.

A number of proceedings generally have challenged and continue to challenge certain of our competitive practices. The allegations in these proceedings vary and are described in more detail in the following paragraphs, but in general contend that we improperly condition price rebates and other discounts on our microprocessors on exclusive or near-exclusive dealing by some of our customers; claim that our software compiler business unfairly prefers Intel microprocessors over competing microprocessors and that, through the use of our compiler and other means, we have caused inaccurate and misleading benchmark results concerning our microprocessors to be disseminated; allege that we unfairly controlled the content and timing of release of various standard computer interfaces developed by Intel in cooperation with other industry participants; and accuse us of engaging in various acts of improper competitive activity in competing against what is referred to as general-purpose graphics processing units, including certain licensing practices and our actions in connection with developing and disclosing potentially competitive technology.

We believe that we compete lawfully and that our marketing, business, intellectual property, and other challenged practices benefit our customers and our stockholders, and we will continue to conduct a vigorous defense in these proceedings. While we have settled some of these matters, the distractions caused by challenges to these practices from the remaining matters are undesirable, and the legal and other costs associated with defending and resolving 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.

Government Competition Matters and Related Consumer Class Actions

In 2001, the European Commission (EC) commenced an investigation regarding claims by Advanced Micro Devices, Inc. (AMD) that we used unfair business practices to persuade clients to buy our microprocessors. Since that time, we have received numerous requests for information and documents from the EC, and we have responded to each of those requests. The EC issued a Statement of Objections in July 2007 and held a hearing on that Statement in March 2008. The EC issued a Supplemental Statement of Objections in July 2008.

In May 2009, the EC issued a decision finding that we had violated Article 82 of the EC Treaty and Article 54 of the European Economic Area Agreement. In general, the EC found that we violated Article 82 (later renumbered as Article 102 by a new treaty) by offering alleged “conditional rebates and payments” that required our customers to purchase all or most of their x86 microprocessors from us. The EC also found that we violated Article 82 by making alleged “payments to prevent sales of specific rival products.” The EC imposed a fine in the amount of €1.06 billion ($1.447 billion as of May 2009), which we subsequently paid during the third quarter of 2009, and also ordered us to “immediately bring to an end the infringement referred to in” the EC decision. In the second quarter of 2009, we recorded the related charge within marketing, general and administrative. We strongly disagree with the EC's decision, and we appealed the decision to the Court of First Instance (which has been renamed the General Court) in July 2009. The EC filed an answer to our reply brief in November 2010. The court's decision, after oral argument, is expected in late 2012 or early 2013.

The EC decision exceeds 500 pages and does not contain specific direction on whether or how we should modify our business practices. Instead, the decision states that we should “cease and desist” from further conduct that, in the EC's opinion, would violate applicable law. We have taken steps, which are subject to the EC's ongoing review, to comply with that decision pending appeal. We opened discussions with the EC to better understand the decision and to explain changes to our business practices. Based on our current understanding and expectations, we do not believe that any such changes will be material to our financial position, results, or cash flows.

In June 2005, we received an inquiry from the Korea Fair Trade Commission (KFTC) requesting documents from our Korean subsidiary related to marketing and rebate programs that we entered into with Korean PC manufacturers. In February 2006, the KFTC initiated an inspection of documents at our offices in Korea. In September 2007, the KFTC served on us an Examination Report alleging that sales to two customers during parts of 2002–2005 violated Korea's Monopoly Regulation and Fair Trade Act. In December 2007, we submitted our written response to the KFTC. In February 2008, the KFTC's examiner submitted a written reply to our response. In March 2008, we submitted a further response. In April 2008, we participated in a pre-hearing conference before the KFTC, and we participated in formal hearings in May and June 2008. In June 2008, the KFTC announced its intent to fine us approximately $25 million for providing discounts to Samsung Electronics Co., Ltd. and TriGem Computer Inc. In November 2008, the KFTC issued a final written decision concluding that our discounts had violated Korean antitrust law and imposing a fine on us of approximately $20 million, which we paid in January 2009. In December 2008, we appealed this decision by filing a lawsuit in the Seoul High Court seeking to overturn the KFTC's decision. We expect a decision from the court in 2011.

In November 2009, the State of New York filed a lawsuit against us in the U.S. District Court for the District of Delaware. The lawsuit alleges that we violated federal antitrust laws; the New York Donnelly Act, which prohibits contracts or agreements to monopolize; and the New York Executive Law, which proscribes underlying violations of federal and state antitrust laws. The lawsuit alleges that we engaged in a systematic worldwide campaign of illegal, exclusionary conduct to maintain monopoly power and prices in the market for x86 microprocessors through the use of various alleged actions, including exclusive or near-exclusive agreements from large computer makers in exchange for “loyalty payments” and “bribes,” and other alleged threats and retaliation. The plaintiff claims that our alleged actions harmed consumers, competition, and innovation. The lawsuit seeks a declaration that our alleged actions have violated the federal and New York antitrust laws and the New York Executive Law; an injunction to prevent further alleged unlawful acts; unspecified damages in an amount to be proven at trial, trebled as provided for by law, restitution, and disgorgement; $1 million for each violation of the Donnelly Act proven by the plaintiff, and attorneys' fees and costs. We disagree with the State of New York's allegations and claims and we intend to conduct a vigorous defense of the lawsuit. We filed our answer in January 2010, and the court has scheduled trial to begin in this matter in February 2012.

In December 2010, the State of New York requested the court's permission to amend its complaint to expand the scope of parties covered by its Donnelly Act and Executive Law claims. We opposed that request, and in May 2011, the court denied the State of New York permission to amend its complaint. In May 2011, we filed three motions, the first seeking partial summary judgment on the ground that the statute of limitations is four years on the plaintiff's federal antitrust claim and three years on its Donnelly Act and Executive Law claims, the second seeking dismissal of all claims brought on behalf of non-State of New York public entities on the ground that the State of New York did not obtain proper consent to represent them, and the third seeking judgment on the pleadings on the ground that the State of New York cannot recover damages on behalf of New York consumers for certain claims. We anticipate filing additional motions that could impact some or all of the State of New York's claims. Because fact and expert discovery are continuing and resolution of the motions may materially impact the scope and nature of plaintiff's claims, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from this litigation.

At least 82 separate class actions have been filed in the U.S. District Courts for the Northern District of California, Southern District of California, District of Idaho, District of Nebraska, District of New Mexico, District of Maine, and District of Delaware, as well as in various California, Kansas, and Tennessee state courts. These actions generally repeat the allegations made in a now-settled lawsuit filed against Intel by AMD in June 2005 in the U.S. District Court for the District of Delaware (AMD litigation). Like the AMD litigation, these class-action suits allege that Intel engaged in various actions in violation of the Sherman Act and other laws by, among other things, providing discounts and rebates to our manufacturer and distributor customers conditioned on exclusive or near exclusive dealings that allegedly unfairly interfered with AMD's ability to sell its microprocessors, interfering with certain AMD product launches, and interfering with AMD's participation in certain industry standards-setting groups. The class actions allege various consumer injuries, including that consumers in various states have been injured by paying higher prices for computers containing our microprocessors. We dispute the class-action claims and intend to defend the lawsuits vigorously.

All of the federal class actions and the Kansas and Tennessee state court class actions have been transferred by the Multidistrict Litigation Panel to the U.S. District Court in Delaware for all pretrial proceedings and discovery (MDL proceedings). The Delaware district court has appointed a Special Master to address issues in the MDL proceedings, as assigned by the court. In January 2010, the plaintiffs in the Delaware action filed a motion for sanctions for our alleged failure to preserve evidence. This motion largely copies a motion previously filed by AMD in the AMD litigation, which has settled. The plaintiffs in the MDL proceedings also moved for certification of a class of members who purchased certain personal computers containing products sold by Intel. In July 2010, the Special Master issued a Report and Recommendation (Class Report) denying the motion to certify a class. The MDL plaintiffs filed objections to the Special Master's Class Report, and a hearing on these objections was held in March 2011. The Delaware district court has not yet ruled on those objections. All California class actions have been consolidated in the Superior Court of California in Santa Clara County. The plaintiffs in the California actions have moved for class certification, which we are in the process of opposing. At our request, the court in the California actions has agreed to delay ruling on this motion until after the Delaware district court rules on the similar motion in the MDL proceedings. Based on the procedural posture and the nature of the cases, including, but not limited to, the fact that the Special Master's Class Report is on review in the Delaware district court, we are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from these matters.

Lehman Matter

In November 2009, representatives of the Lehman Brothers OTC Derivatives Inc. (LOTC) bankruptcy estate advised us informally that the estate was considering a claim against us arising from a 2008 contract between Intel and LOTC. Under the terms of the 2008 contract, Intel prepaid $1.0 billion to LOTC, in exchange for which LOTC was required to purchase and deliver to Intel the number of shares of Intel common stock that could be purchased for $1.0 billion at the discounted volume-weighted average price specified in the contract for the period September 2, 2008 to September 26, 2008. LOTC's performance under the contract was secured by $1.0 billion of cash collateral. Under the terms of the contract, LOTC was obligated to deliver approximately 50 million shares of our common stock to us on September 29, 2008. LOTC failed to deliver any shares of our common stock, and we exercised our right to setoff against the $1.0 billion collateral. LOTC has not initiated any action against us to date, but in February 2010, LOTC served a subpoena on us in connection with this transaction. In October 2010, LOTC demanded that Intel pay it at least $417 million. In September 2010, we entered into an agreement with LOTC that tolled any applicable statutes of limitations for 90 days and precluded the parties from commencing any formal proceedings to prosecute any claims against each other in any forum during that period. The tolling agreement with LOTC was extended several times, but lapsed in June 2011. We continue to believe that we acted appropriately under our agreement with LOTC, and we intend to defend any claim to the contrary. No complaint has been filed and we are in the early stages of evaluating this dispute, and accordingly are unable to make a reasonable estimate of the potential loss or range of losses, if any, arising from this matter.

Frank T. Shum v. Intel Corporation, Jean-Marc Verdiell, and LightLogic, Inc.

We acquired LightLogic, Inc. in May 2001. Frank Shum subsequently sued us, LightLogic, and LightLogic's founder, Jean-Marc Verdiell, claiming that much of LightLogic's intellectual property is based on alleged inventions that Shum conceived while he and Verdiell were partners at Radiance Design, Inc. Shum has alleged claims for fraud, breach of fiduciary duty, fraudulent concealment, and breach of contract. Shum also seeks alleged correction of inventorship of seven patents acquired by us as part of the LightLogic acquisition. In January 2005, the U.S. District Court for the Northern District of California denied Shum's inventorship claim, and thereafter granted our motion for summary judgment on Shum's remaining claims. In August 2007, the U.S. Court of Appeals for the Federal Circuit vacated the District Court's rulings and remanded the case for further proceedings. In October 2008, the District Court granted our motion for summary judgment on Shum's claims for breach of fiduciary duty and fraudulent concealment, but denied our motion on Shum's remaining claims. A jury trial on Shum's remaining claims took place in November and December 2008. In pre-trial proceedings and at trial, Shum requested monetary damages against the defendants in amounts ranging from $31 million to $931 million, and his final request to the jury was for as much as $175 million. Following deliberations, the jury was unable to reach a verdict on most of the claims. With respect to Shum's claim that he is the proper inventor on certain LightLogic patents now assigned to us, the jury agreed with Shum on some of those claims and was unable to reach a verdict regarding the remaining claims. In April 2009, the court granted defendants' motions for judgment as a matter of law. Shum appealed that ruling to the U.S. Court of Appeals for the Federal Circuit, which heard oral arguments in August 2010 and affirmed the trial court's orders in favor of Intel in December 2010. In January 2011, Shum petitioned the Federal Circuit for a re-hearing and re-hearing en banc. In February 2011, the Federal Circuit denied Shum's request. Shum petitioned the U.S. Supreme Court for review in May 2011, and we are preparing our response.We will continue to defend the lawsuit vigorously.

XML



Gains (Losses) on Equity Method Investments, Net (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010
Gains (Losses) on Equity Method Investments, Net Detail [Abstract]
Equity method losses, net	$ (67)	$ (9)	$ (129)	$ (44)
Impairment charges		(6)		(10)
Other, net	1	91	21	91
Total gains (losses) on equity method investments, net	$ (66)	$ 76	$ (108)	$ 37

XML



Interest and Other, Net (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended		3 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Apr. 02, 2011 Intel-GE Care Innovations, LLC [Member]
Interest and Other, Net (Textuals)
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal			$ 164	$ 0	$ 164
Interest income	20	29	48	55
Interest expense			(6)
Other, net	1	(18)	164	(15)
Total interest and other, net	$ 21	$ 11	$ 206	$ 40

XML



Fair Value (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended																																																																																															6 Months Ended	12 Months Ended								6 Months Ended	12 Months Ended										6 Months Ended	12 Months Ended																																		6 Months Ended	12 Months Ended		12 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010	Jul. 02, 2011 Cash Equivalents [Member] Commercial Paper [Member]	Dec. 25, 2010 Cash Equivalents [Member] Commercial Paper [Member]	Jul. 02, 2011 Cash Equivalents [Member] Commercial Paper [Member] Level 2 [Member]	Dec. 25, 2010 Cash Equivalents [Member] Commercial Paper [Member] Level 2 [Member]	Jul. 02, 2011 Cash Equivalents [Member] Bank Deposits [Member]	Dec. 25, 2010 Cash Equivalents [Member] Bank Deposits [Member]	Jul. 02, 2011 Cash Equivalents [Member] Bank Deposits [Member] Level 2 [Member]	Dec. 25, 2010 Cash Equivalents [Member] Bank Deposits [Member] Level 2 [Member]	Jul. 02, 2011 Cash Equivalents [Member] Government Bonds [Member]	Dec. 25, 2010 Cash Equivalents [Member] Government Bonds [Member]	Jul. 02, 2011 Cash Equivalents [Member] Government Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Cash Equivalents [Member] Government Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Cash Equivalents [Member] Government Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Cash Equivalents [Member] Money Market Fund Deposits [Member]	Dec. 25, 2010 Cash Equivalents [Member] Money Market Fund Deposits [Member]	Jul. 02, 2011 Cash Equivalents [Member] Money Market Fund Deposits [Member] Level 1 [Member]	Dec. 25, 2010 Cash Equivalents [Member] Money Market Fund Deposits [Member] Level 1 [Member]	Jul. 02, 2011 Other Long-Term Liabilities [Member]	Dec. 25, 2010 Other Long-Term Liabilities [Member]	Jul. 02, 2011 Other Long-Term Liabilities [Member] Level 2 [Member]	Dec. 25, 2010 Other Long-Term Liabilities [Member] Level 2 [Member]	Jul. 02, 2011 Other Accrued Liabilities [Member]	Dec. 25, 2010 Other Accrued Liabilities [Member]	Jul. 02, 2011 Other Accrued Liabilities [Member] Level 2 [Member]	Dec. 25, 2010 Other Accrued Liabilities [Member] Level 2 [Member]	Jul. 02, 2011 Other Accrued Liabilities [Member] Level 3 [Member]	Dec. 25, 2010 Other Accrued Liabilities [Member] Level 3 [Member]	Jul. 02, 2011 Other Long-Term Assets [Member]	Dec. 25, 2010 Other Long-Term Assets [Member]	Jul. 02, 2011 Other Long-Term Assets [Member] Level 2 [Member]	Dec. 25, 2010 Other Long-Term Assets [Member] Level 2 [Member]	Jul. 02, 2011 Other Long-Term Assets [Member] Level 3 [Member]	Dec. 25, 2010 Other Long-Term Assets [Member] Level 3 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Corporate Bonds [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Corporate Bonds [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Corporate Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Corporate Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Corporate Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Corporate Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Corporate Bonds [Member] Level 3 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Corporate Bonds [Member] Level 3 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Asset-Backed Securities [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Asset-Backed Securities [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Asset-Backed Securities [Member] Level 3 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Asset-Backed Securities [Member] Level 3 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Bank Deposits [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Bank Deposits [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Bank Deposits [Member] Level 2 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Bank Deposits [Member] Level 2 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Government Bonds [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Government Bonds [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Government Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Other Long-term Investments [Member] Government Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Other Long-term Investments [Member] Government Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Short-term Investments [Member] Corporate Bonds [Member]	Dec. 25, 2010 Short-term Investments [Member] Corporate Bonds [Member]	Jul. 02, 2011 Short-term Investments [Member] Corporate Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Short-term Investments [Member] Corporate Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Short-term Investments [Member] Corporate Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Short-term Investments [Member] Corporate Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Short-term Investments [Member] Corporate Bonds [Member] Level 3 [Member]	Dec. 25, 2010 Short-term Investments [Member] Corporate Bonds [Member] Level 3 [Member]	Jul. 02, 2011 Short-term Investments [Member] Asset-Backed Securities [Member]	Dec. 25, 2010 Short-term Investments [Member] Asset-Backed Securities [Member]	Jul. 02, 2011 Short-term Investments [Member] Asset-Backed Securities [Member] Level 3 [Member]	Dec. 25, 2010 Short-term Investments [Member] Asset-Backed Securities [Member] Level 3 [Member]	Jul. 02, 2011 Short-term Investments [Member] Commercial Paper [Member]	Dec. 25, 2010 Short-term Investments [Member] Commercial Paper [Member]	Jul. 02, 2011 Short-term Investments [Member] Commercial Paper [Member] Level 2 [Member]	Dec. 25, 2010 Short-term Investments [Member] Commercial Paper [Member] Level 2 [Member]	Jul. 02, 2011 Short-term Investments [Member] Bank Deposits [Member]	Dec. 25, 2010 Short-term Investments [Member] Bank Deposits [Member]	Jul. 02, 2011 Short-term Investments [Member] Bank Deposits [Member] Level 2 [Member]	Dec. 25, 2010 Short-term Investments [Member] Bank Deposits [Member] Level 2 [Member]	Jul. 02, 2011 Short-term Investments [Member] Government Bonds [Member]	Dec. 25, 2010 Short-term Investments [Member] Government Bonds [Member]	Jul. 02, 2011 Short-term Investments [Member] Government Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Short-term Investments [Member] Government Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Short-term Investments [Member] Government Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Short-term Investments [Member] Government Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Other Current Assets [Member]	Dec. 25, 2010 Other Current Assets [Member]	Jul. 02, 2011 Other Current Assets [Member] Level 2 [Member]	Dec. 25, 2010 Other Current Assets [Member] Level 2 [Member]	Jul. 02, 2011 Marketable Equity Securities Receivable [Member]	Dec. 25, 2010 Marketable Equity Securities Receivable [Member]	Jul. 02, 2011 Marketable Equity Securities Receivable [Member] Level 1 [Member]	Dec. 25, 2010 Marketable Equity Securities Receivable [Member] Level 1 [Member]	Jul. 02, 2011 Marketable Equity Securities [Member]	Dec. 25, 2010 Marketable Equity Securities [Member]	Jul. 02, 2011 Marketable Equity Securities [Member] Level 1 [Member]	Dec. 25, 2010 Marketable Equity Securities [Member] Level 1 [Member]	Jul. 02, 2011 Marketable Equity Securities [Member] Level 2 [Member]	Dec. 25, 2010 Marketable Equity Securities [Member] Level 2 [Member]	Jul. 02, 2011 Derivative Assets [Member]	Dec. 25, 2010 Derivative Assets [Member]	Jul. 02, 2011 Derivative Assets [Member]	Jul. 02, 2011 Corporate Bonds [Member]	Dec. 25, 2010 Corporate Bonds [Member]	Jul. 02, 2011 Corporate Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Corporate Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Corporate Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Corporate Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Corporate Bonds [Member]	Dec. 25, 2010 Corporate Bonds [Member]	Jul. 02, 2011 Corporate Bonds [Member]	Jul. 02, 2011 Municipal Bonds [Member]	Dec. 25, 2010 Municipal Bonds [Member]	Jul. 02, 2011 Municipal Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Municipal Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Asset-Backed Securities [Member]	Dec. 25, 2010 Asset-Backed Securities [Member]	Jul. 02, 2011 Asset-Backed Securities [Member] Level 3 [Member]	Dec. 25, 2010 Asset-Backed Securities [Member] Level 3 [Member]	Jul. 02, 2011 Asset-Backed Securities [Member]	Dec. 25, 2010 Asset-Backed Securities [Member]	Jul. 02, 2011 Asset-Backed Securities [Member]	Jul. 02, 2011 Commercial Paper [Member]	Dec. 25, 2010 Commercial Paper [Member]	Jul. 02, 2011 Commercial Paper [Member] Level 2 [Member]	Dec. 25, 2010 Commercial Paper [Member] Level 2 [Member]	Jul. 02, 2011 Bank Deposits [Member]	Dec. 25, 2010 Bank Deposits [Member]	Jul. 02, 2011 Bank Deposits [Member] Level 2 [Member]	Dec. 25, 2010 Bank Deposits [Member] Level 2 [Member]	Jul. 02, 2011 Government Bonds [Member]	Dec. 25, 2010 Government Bonds [Member]	Jul. 02, 2011 Government Bonds [Member] Level 1 [Member]	Dec. 25, 2010 Government Bonds [Member] Level 1 [Member]	Jul. 02, 2011 Government Bonds [Member] Level 2 [Member]	Dec. 25, 2010 Government Bonds [Member] Level 2 [Member]	Jul. 02, 2011 Money Market Fund Deposits [Member]	Dec. 25, 2010 Money Market Fund Deposits [Member]	Jul. 02, 2011 Money Market Fund Deposits [Member] Level 1 [Member]	Dec. 25, 2010 Money Market Fund Deposits [Member] Level 1 [Member]	Jul. 02, 2011 Level 1 [Member]	Dec. 25, 2010 Level 1 [Member]	Jul. 02, 2011 Level 2 [Member]	Dec. 25, 2010 Level 2 [Member]	Jul. 02, 2011 Level 2 [Member]	Dec. 25, 2010 Level 2 [Member]	Jul. 02, 2011 Level 3 [Member]	Jun. 26, 2010 Level 3 [Member]	Jul. 02, 2011 Level 3 [Member]	Dec. 25, 2010 Level 3 [Member]	Jul. 02, 2011 Level 3 [Member]	Dec. 25, 2010 Level 3 [Member]	Jul. 02, 2011 Net Carrying Value [Member]	Jun. 26, 2010 Net Carrying Value [Member]	Jul. 02, 2011 Derivative Liabilities [Member]	Dec. 25, 2010 Derivative Liabilities [Member]	Dec. 26, 2009 Derivative Liabilities [Member]	Dec. 25, 2010 Long-term Debt [Member]	Jul. 02, 2011 Long-term Debt [Member]	Dec. 26, 2009 Long-term Debt [Member]	Jul. 02, 2011 SMART Technologies, Inc. [Member]	Dec. 25, 2010 SMART Technologies, Inc. [Member]	Jul. 02, 2011 NVIDIA [Member]	Jan. 31, 2011 NVIDIA [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Fair Value, Measured on Recurring Basis, Investments						$ 2,272,000,000	$ 2,600,000,000	$ 2,272,000,000	$ 2,600,000,000	$ 889,000,000	$ 560,000,000	$ 889,000,000	$ 560,000,000	$ 465,000,000	$ 1,784,000,000	$ 465,000,000	$ 1,279,000,000	$ 505,000,000	$ 550,000,000	$ 34,000,000	$ 550,000,000	$ 34,000,000																	$ 534,000,000	$ 755,000,000	$ 73,000,000	$ 104,000,000	$ 404,000,000	$ 601,000,000	$ 57,000,000	$ 50,000,000	$ 52,000,000	$ 53,000,000	$ 52,000,000	$ 53,000,000	$ 55,000,000	$ 133,000,000	$ 55,000,000	$ 133,000,000	$ 351,000,000	$ 2,085,000,000	$ 83,000,000	$ 351,000,000	$ 2,002,000,000	$ 808,000,000	$ 1,500,000,000	$ 107,000,000	$ 121,000,000	$ 693,000,000	$ 1,378,000,000	$ 8,000,000	$ 1,000,000	$ 7,000,000	$ 14,000,000	$ 7,000,000	$ 14,000,000	$ 1,505,000,000	$ 2,712,000,000	$ 1,505,000,000	$ 2,712,000,000	$ 210,000,000	$ 858,000,000	$ 210,000,000	$ 858,000,000	$ 576,000,000	$ 6,210,000,000	$ 125,000,000	$ 4,890,000,000	$ 451,000,000	$ 1,320,000,000									$ 892,000,000	$ 1,008,000,000	$ 841,000,000	$ 785,000,000	$ 51,000,000	$ 223,000,000
Fair Value, Assets Measured on Recurring Basis, Trading Assets																																																																																										10,000,000	388,000,000	10,000,000	388,000,000										942,000,000	1,115,000,000	204,000,000	199,000,000	738,000,000	916,000,000				350,000,000	375,000,000	350,000,000	375,000,000	146,000,000	190,000,000	146,000,000	190,000,000				305,000,000	488,000,000	305,000,000	488,000,000	69,000,000	108,000,000	69,000,000	108,000,000	1,952,000,000	2,426,000,000	230,000,000	311,000,000	1,722,000,000	2,115,000,000	32,000,000	3,000,000	32,000,000	3,000,000
Loans receivable	687,000,000		687,000,000																														651,000,000	642,000,000	651,000,000	642,000,000																																																		36,000,000		36,000,000
Derivative assets																																	31,000,000	50,000,000	2,000,000	19,000,000	29,000,000	31,000,000																																																209,000,000	330,000,000	209,000,000	330,000,000
Total assets measured and recorded at fair value; recurring	13,899,000,000		13,899,000,000		26,421,000,000																																																																																																																																								2,637,000,000	8,197,000,000	10,963,000,000	17,885,000,000					299,000,000	339,000,000
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Non-Marketable Equity Investments																																																																																																																																																			37,000,000	130,000,000					37,000,000	126,000,000
Fair Value, Non-Marketable Equity Investments Measured on Non-Recurring Basis, Gains (Losses)	(8,000,000)	(17,000,000)	(22,000,000)	(63,000,000)
Fair Value, Property, Plant and Equipment Measured on Non-Recurring Basis, Gains (Losses)			(10,000,000)
Total gains (losses) for assets held	(8,000,000)	(17,000,000)	(32,000,000)	(63,000,000)
Gains (losses) for property, plant and equipment no longer held	(19,000,000)	(7,000,000)	(45,000,000)	(40,000,000)
Total gains (losses) for recorded non-recurring measurement	(27,000,000)	(24,000,000)	(77,000,000)	(103,000,000)
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value																																																																																																				31,000,000	31,000,000	29,000,000							51,000,000	369,000,000	65,000,000									257,000,000	754,000,000	205,000,000
Total gains or losses (realized and unrealized): Included in earnings																																																																																																				(2,000,000)	(3,000,000)									(2,000,000)										(1,000,000)	6,000,000
Total gains or losses (realized and unrealized): Included in other comprehensive income (loss)																																																																																																													7,000,000	4,000,000										(1,000,000)	9,000,000
Purchases																																																																																																				3,000,000	7,000,000								12,000,000	6,000,000										13,000,000
Sales																																																																																																					(4,000,000)									(44,000,000)											(28,000,000)
Settlements and maturities																																																																																																													(5,000,000)	(75,000,000)										(63,000,000)	(484,000,000)
Transfers out of Level 3																																																																																																				(3,000,000)										(207,000,000)
Changes in unrealized gains or losses included in earnings related to assets still held																																																																																																				(2,000,000)	(4,000,000)																			(1,000,000)	6,000,000
Fair Value Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items]
Long-term debt	128,000,000		128,000,000		128,000,000																																																																																																																																																		128,000,000	128,000,000
Derivative liabilities																							85,000,000	47,000,000	85,000,000	47,000,000	172,000,000	208,000,000	166,000,000	201,000,000	6,000,000	7,000,000
Total liabilities measured and recorded at fair value; recurring	385,000,000		385,000,000		383,000,000																																																																																																																																												251,000,000	248,000,000					134,000,000	135,000,000
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value																																																																																																																																																											(6,000,000)	(7,000,000)	(65,000,000)	(128,000,000)	(128,000,000)	(123,000,000)
Total gains or losses (realized and unrealized):Included in earnings																																																																																																																																																											1,000,000	(2,000,000)		(5,000,000)
Transfers out of Level 3																																																																																																																																																												60,000,000
Changes in unrealized gains or losses included in earnings related to liabilities still held																																																																																																																																																											1,000,000	(1,000,000)		(5,000,000)
Total Gains (Losses), Realized and Unrealized, Included In Earnings			(2,000,000)		(6,000,000)
Total Gains (Losses), Realized and Unrealized, Included In Other Comprehensive Income (Loss)			6,000,000		13,000,000
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	1,738,000,000		1,738,000,000		1,791,000,000																																																																																																																																																												34,000,000	31,000,000
Marketable equity method investment, Fair Value																																																																																																																																																																	103,000,000	167,000,000
Loss Contingencies [Line Items]
Loss Contingency, Cross License Liability																																																																																																																																																																			1,100,000,000	1,400,000,000
Notes Payable, Fair Value Disclosure																																																																																																																																																																			1,100,000,000
Financial Instruments Not Recorded at Fair Value on a Recurring Basis [Abstract]
Non-marketable equity investments, Carrying Amount	2,713,000,000		2,713,000,000		2,633,000,000
Non-marketable equity investments, Fair Value	5,725,000,000		5,725,000,000		5,144,000,000
Loans receivable, Carrying Amount	230,000,000		230,000,000		208,000,000
Loans receivable, Fair Value	230,000,000		230,000,000		208,000,000
Long-term debt, Carrying Amount	1,962,000,000		1,962,000,000		1,949,000,000
Long-term debt, Fair Value	2,204,000,000		2,204,000,000		2,283,000,000
Changes in unrealized gains or losses included in earnings related to assets and liabilities still held			$ (2,000,000)		$ (4,000,000)

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Identified Intangible Assets (Detail) (USD $)			6 Months Ended				3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended						3 Months Ended		6 Months Ended						3 Months Ended			3 Months Ended		6 Months Ended							3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		6 Months Ended
	Jul. 02, 2011	Dec. 25, 2010	Jul. 02, 2011 Acquisition-Related Developed Technology [Member] Series of Individually Immaterial Business Acquisitions [Member]	Feb. 28, 2011 Acquisition-Related Developed Technology [Member] McAfee, Inc. [Member]	Jul. 02, 2011 Acquisition-Related Developed Technology [Member] Subject To Amortization [Member]	Dec. 25, 2010 Acquisition-Related Developed Technology [Member] Subject To Amortization [Member]	Jul. 02, 2011 Acquisition-Related Developed Technology [Member] Cost of Sales [Member]	Jun. 26, 2010 Acquisition-Related Developed Technology [Member] Cost of Sales [Member]	Jul. 02, 2011 Acquisition-Related Developed Technology [Member] Cost of Sales [Member]	Jun. 26, 2010 Acquisition-Related Developed Technology [Member] Cost of Sales [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Customer Relationships [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Customer Relationships [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Customer Relationships [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Customer Relationships [Member]	Jul. 02, 2011 Acquisition-Related Customer Relationships [Member] Series of Individually Immaterial Business Acquisitions [Member]	Feb. 28, 2011 Acquisition-Related Customer Relationships [Member] McAfee, Inc. [Member]	Jul. 02, 2011 Acquisition-Related Customer Relationships [Member] Subject To Amortization [Member]	Dec. 25, 2010 Acquisition-Related Customer Relationships [Member] Subject To Amortization [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Trade Names [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Trade Names [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Trade Names [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member] Acquisition-Related Trade Names [Member]	Jul. 02, 2011 Acquisition-Related Trade Names [Member] Subject To Amortization [Member]	Dec. 25, 2010 Acquisition-Related Trade Names [Member] Subject To Amortization [Member]	Feb. 28, 2011 Acquisition-Related Trade Names [Member] McAfee, Inc. [Member]	Jul. 02, 2011 Acquisition-Related Trade Names [Member] Not Subject To Amortization [Member]	Apr. 02, 2011 NVIDIA [Member] Licensed Technology [Member] Y	Jul. 02, 2011 Licensed Technology [Member] Subject To Amortization [Member]	Dec. 25, 2010 Licensed Technology [Member] Subject To Amortization [Member]	Jul. 02, 2011 Licensed Technology [Member] Cost of Sales [Member]	Jun. 26, 2010 Licensed Technology [Member] Cost of Sales [Member]	Jul. 02, 2011 Licensed Technology [Member] Cost of Sales [Member]	Jun. 26, 2010 Licensed Technology [Member] Cost of Sales [Member]	Jul. 02, 2011 Subject To Amortization [Member]	Dec. 25, 2010 Subject To Amortization [Member]	Jul. 02, 2011 Other Intangible Assets [Member] Not Subject To Amortization [Member]	Dec. 25, 2010 Other Intangible Assets [Member] Not Subject To Amortization [Member]	Jul. 02, 2011 Not Subject To Amortization [Member]	Jul. 02, 2011 Cost of Sales [Member]	Jun. 26, 2010 Cost of Sales [Member]	Jul. 02, 2011 Cost of Sales [Member]	Jun. 26, 2010 Cost of Sales [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member]	Jul. 02, 2011 Amortization Of Acquisition-Related Intangibles [Member]	Jun. 26, 2010 Amortization Of Acquisition-Related Intangibles [Member]	Dec. 25, 2010 NVIDIA [Member]	Jul. 02, 2011 NVIDIA [Member]	Jan. 31, 2011 NVIDIA [Member]	Jul. 02, 2011 Series of Individually Immaterial Business Acquisitions [Member]	Feb. 28, 2011 McAfee, Inc. [Member]
Identified Intangible Assets By Major Class [Abstract]
Gross Assets					$ 2,534,000,000	$ 235,000,000											$ 1,710,000,000	$ 152,000,000					$ 65,000,000	$ 46,000,000				$ 2,331,000,000	$ 1,204,000,000					$ 6,640,000,000	$ 1,637,000,000
Accumulated Amortization					(307,000,000)	(97,000,000)											(117,000,000)	(10,000,000)					(15,000,000)	(10,000,000)				(620,000,000)	(765,000,000)					(1,059,000,000)	(882,000,000)
Net					2,227,000,000	138,000,000											1,593,000,000	142,000,000					50,000,000	36,000,000				1,711,000,000	439,000,000					5,581,000,000	755,000,000
Identified Intangible Assets, Amortization Expenses [Abstract]
Finite-Lived Intangible Assets, Amortization Expense							137,000,000	16,000,000	210,000,000	32,000,000	73,000,000	2,000,000	107,000,000	3,000,000					3,000,000	2,000,000	5,000,000	4,000,000								43,000,000	43,000,000	89,000,000	85,000,000						180,000,000	59,000,000	299,000,000	117,000,000	76,000,000	4,000,000	112,000,000	7,000,000
Identified Intangible Assets, Future Amortization Expenses [Abstract]
Future Amortization Expense, Remainder of 2011									271,000,000				146,000,000								5,000,000											90,000,000									361,000,000				151,000,000
Future Amortization Expense, 2012									522,000,000				284,000,000								10,000,000											171,000,000									693,000,000				294,000,000
Future Amortization Expense, 2013									506,000,000				264,000,000								10,000,000											154,000,000									660,000,000				274,000,000
Future Amortization Expense, 2014									487,000,000				260,000,000								10,000,000											143,000,000									630,000,000				270,000,000
Future Amortization Expense, 2015									208,000,000				250,000,000								9,000,000											125,000,000									333,000,000				259,000,000
Loss Contingencies [Line Items]
Loss Contingency, Cross License Payment Amount Total, 2011-2016																																																1,500,000,000
Loss Contingency, Cross License Annual Payment Amount, 2011-2013																																																300,000,000
Loss Contingency, Cross License Annual Payment Amount, 2014-2016																																																200,000,000
Loss Contingency, Cross License Expense																																															100,000,000
Loss Contingency, Cross License Liability																																																1,100,000,000	1,400,000,000
Acquired Identified Intangible Asset, Amount																											1,300,000,000
Acquired Identified Intangible Asset, Weighted Average Useful Life (in years)																											17
Indefinite-lived Intangible Assets by Major Class [Line Items]
Gross Assets																										828,000,000
Identified Intangible Assets Textual Details [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangibles				1,221,000,000												1,418,000,000									821,000,000																										3,552,000,000
Business Combinations, During Period, Recognized Identifiable Assets Acquired And Liabilities Assumed, Intangibles			1,037,000,000												96,000,000																																			1,295,000,000
Gross Assets	7,759,000,000	1,742,000,000																																		291,000,000	105,000,000	1,119,000,000
Net	$ 6,700,000,000	$ 860,000,000

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Fair Value

6 Months Ended

Jul. 02, 2011

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 assets and liabilities 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.

Marketable Debt Instruments

Marketable debt instruments include instruments such as commercial paper, corporate bonds, government bonds, bank deposits, asset-backed securities, municipal bonds, and money market fund deposits. When we use observable market prices for identical securities that are traded in less active markets, we classify our marketable debt instruments as Level 2. When observable market prices for identical securities are not available, we price our marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. We corroborate non-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings.

Our marketable debt instruments that are classified as Level 3 are classified as such due to the lack of observable market data to corroborate either the non-binding market consensus prices or the non-binding broker quotes. When observable market data is not available, we corroborate non-binding market consensus prices and non-binding broker quotes using available unobservable 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 consisted of the following types of instruments as of July 2, 2011 and December 25, 2010:

		July 2, 2011								December 25, 2010
		Fair Value Measured and								Fair Value Measured and
		Recorded at Reporting Date Using								Recorded at Reporting Date Using
(In Millions)		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
	Commercial paper	$	—	$	2,272	$	—	$	2,272	$	—	$	2,600	$	—	$	2,600
	Bank deposits		—		889		—		889		—		560		—		560
	Money market fund deposits		550		—		—		550		34		—		—		34
	Government bonds		465		—		—		465		1,279		505		—		1,784
Short-term investments:
	Commercial paper		—		1,505		—		1,505		—		2,712		—		2,712
	Corporate bonds		107		693		8		808		121		1,378		1		1,500
	Government bonds		125		451		—		576		4,890		1,320		—		6,210
	Bank deposits		—		210		—		210		—		858		—		858
	Asset-backed securities		—		—		7		7		—		—		14		14
Trading assets:
	Government bonds		230		1,722		—		1,952		311		2,115		—		2,426
	Corporate bonds		204		738		—		942		199		916		—		1,115
	Municipal bonds		—		350		—		350		—		375		—		375
	Commercial paper		—		305		—		305		—		488		—		488
	Asset-backed securities		—		—		146		146		—		—		190		190
	Bank deposits		—		69		—		69		—		108		—		108
	Money market fund deposits		32		—		—		32		3		—		—		3
	Marketable equity securities		10		—		—		10		388		—		—		388
Other current assets:
	Marketable equity securities
	Derivative assets		—		209		—		209		—		330		—		330
	Loans receivable		—		36		—		36		—		—		—		—
Marketable equity securities			841		51		—		892		785		223		—		1,008
Other long-term investments:
	Corporate bonds		73		404		57		534		104		601		50		755
	Government bonds		—		351		—		351		83		2,002		—		2,085
	Bank deposits		—		55		—		55		—		133		—		133
	Asset-backed securities		—		—		52		52		—		—		53		53
Other long-term assets:
	Loans receivable		—		651		—		651		—		642		—		642
	Derivative assets		—		2		29		31		—		19		31		50
Total assets measured and
	recorded at fair value	$	2,637	$	10,963	$	299	$	13,899	$	8,197	$	17,885	$	339	$	26,421
Liabilities
Other accrued liabilities:
	Derivative liabilities	$	—	$	166	$	6	$	172	$	—	$	201	$	7	$	208
Long-term debt			—		—		128		128		—		—		128		128
Other long-term liabilities:
	Derivative liabilities		—		85		—		85		—		47		—		47
Total liabilities measured and
	recorded at fair value	$	—	$	251	$	134	$	385	$	—	$	248	$	135	$	383

Government bonds include bonds issued or deemed to be guaranteed by government entities, such as instruments issued by non-U.S. governments, U.S. Treasury securities, Federal Deposit Insurance Corporation (FDIC)-insured corporate bonds, and U.S. agency securities.

The tables below present reconciliations for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months endedJuly 2, 2011 and for the twelve months ended December 25, 2010:

		Fair Value Measured and Recorded Using
		Significant Unobservable Inputs (Level 3)
		Corporate		Asset-Backed		Derivative		Derivative		Long-term		Total Gains
(In Millions)		Bonds		Securities		Assets		Liabilities		Debt		(Losses)
Balance as of December 25, 2010		$	51	$	257	$	31	$	(7)	$	(128)
Total gains or losses (realized and unrealized):
	Included in earnings		—		(1)		(2)		1		—		(2)
	Included in other comprehensive income (loss)		7		(1)		—		—		—		6
Purchases			12		13		3		—		—
Settlements and maturities			(5)		(63)		—		—		—
Transfers out of Level 3			—		—		(3)		—		—
Balance as of July 2, 2011		$	65	$	205	$	29	$	(6)	$	(128)
Changes in unrealized gains or losses included in
	earnings related to assets and liabilities still held
	as of July 2, 2011	$	—	$	(1)	$	(2)	$	1	$	—	$	(2)
		Fair Value Measured and Recorded Using
		Significant Unobservable Inputs (Level 3)
		Corporate		Asset-Backed		Derivative		Derivative		Long-term		Total Gains
(In Millions)		Bonds		Securities		Assets		Liabilities		Debt		(Losses)
Balance as of December 26, 2009		$	369	$	754	$	31	$	(65)	$	(123)
Total gains or losses (realized and unrealized):
	Included in earnings		(2)		6		(3)		(2)		(5)		(6)
	Included in other comprehensive income (loss)		4		9		—		—		—		13
Purchases			6		—		7		—		—
Sales			(44)		(28)		(4)		—		—
Settlements and maturities			(75)		(484)		—		—		—
Transfers out of Level 3			(207)		—		—		60		—
Balance as of December 25, 2010		$	51	$	257	$	31	$	(7)	$	(128)
Changes in unrealized gains or losses included in
	earnings related to assets and liabilities still held
	as of December 25, 2010	$	—	$	6	$	(4)	$	(1)	$	(5)	$	(4)

For all periods presented, gains and losses (realized and unrealized) included in earnings were primarily reported outside of operating income. During 2010, we transferred corporate bonds from Level 3 to Level 2 due to improved availability of observable market data and non-binding market consensus prices to value or corroborate the value of these instruments. Our policy is to reflect transfers in and transfers out at the beginning of the quarter in which a change in circumstances resulted in the transfer.

Fair Value Option for Financial Assets/Liabilities

We elected the fair value option for loans made to third parties when the interest rate or foreign exchange rate risk was hedged at inception with a related derivative instrument.As of July 2, 2011, the fair value of our loans receivable for which we elected the fair value option did not significantly differ from the contractual principal balance based on the contractual currency. These loans receivable are classified within other long-term assets and other current assets. Fair value is determined using a discounted cash flow model with all significant inputs derived from or corroborated with observable market data. Gains and losses from changes in fair value on the loans receivable and related derivative instruments, as well as interest income, are recorded in interest and other, net. During the three and six months ended July 2, 2011, changes in the fair value of our loans receivable were largely offset by changes in the related derivative instruments, resulting in an insignificant net impact on our consolidated condensed statements of income. Gains and losses attributable to changes in credit risk are determined using observable credit default spreads for the issuer or comparable companies and were insignificant during the three and six months ended July 2, 2011. We did not elect the fair value option for loans when the interest rate or foreign exchange rate risk was not hedged at inception with a related derivative instrument.

We elected this fair value option for the bonds issued in 2007 by the Industrial Development Authority of the City of Chandler, Arizona (2007 Arizona bonds). In connection with the 2007 Arizona bonds, we entered into a total return swap agreement that effectively converts the fixed-rate obligation on the bonds to a floating U.S.-dollar LIBOR-based rate. As a result, changes in the fair value of this debt are largely offset by changes in the fair value of the total return swap agreement, without the need to apply hedge accounting provisions. The 2007 Arizona bonds are included in long-term debt. As of July 2, 2011 and December 25, 2010, no other instruments were similar to the 2007 Arizona bonds for which we elected fair value treatment.

As of July 2, 2011, the fair value of the 2007 Arizona bonds did not significantly differ from the contractual principal balance. The fair value of the 2007 Arizona bonds was determined using inputs that are observable in the market or that can be derived from or corroborated with observable market data, as well as unobservable inputs that were significant to the fair value. Gains and losses on the 2007 Arizona bonds and the related total return swap are recorded in interest and other, net. We capitalize interest associated with the 2007 Arizona bonds. We add capitalized interest to the cost of qualified assets and amortize it over the estimated useful lives of the assets.

Assets Measured and Recorded at Fair Value on a Non-Recurring Basis

Our non-marketable equity investments and non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only if an impairment charge is recognized. The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during thesix months endedJuly 2, 2011, and the gains (losses) recorded during the three and six months ended July 2, 2011 on those assets:

										Total Gains		Total Gains
										(Losses) for		(Losses) for
		Net Carrying								Three Months		Six Months
		Value as of		Fair Value Measured and Recorded Using						Ended		Ended
(In Millions)		July 2, 2011		Level 1		Level 2		Level 3		July 2, 2011		July 2, 2011
Non-marketable equity investments		$	37	$	—	$	—	$	37	$	(8)	$	(22)
Property, plant and equipment		$	—	$	—	$	—	$	—	$	—	$	(10)
Total gains (losses) for assets held
	as of July 2, 2011									$	(8)	$	(32)
Gains (losses) for non-marketable equity
Gains (losses) for property, plant and equipment
	no longer held									$	(19)	$	(45)
Total gains (losses) for recorded non-recurring
	measurement									$	(27)	$	(77)

The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during the six months endedJune 26, 2010, and the gains (losses) recorded during the three and six months endedJune 26, 2010 on those assets:

										Total Gains		Total Gains
										(Losses) for		(Losses) for
		Net Carrying								Three Months		Six Months
		Value as of		Fair Value Measured and Recorded Using						Ended		Ended
(In Millions)		June 26, 2010		Level 1		Level 2		Level 3		June 26, 2010		June 26, 2010
Non-marketable equity investments		$	126	$	—	$	—	$	130	$	(17)	$	(63)
Total gains (losses) for assets held
	as of June 26, 2010									$	(17)	$	(63)
Gains (losses) for property, plant and equipment
	no longer held									$	(7)	$	(40)
Gains (losses) for non-marketable equity
Total gains (losses) for recorded non-recurring
	measurement									$	(24)	$	(103)

In the preceding tables, the carrying value of our impaired non-marketable equity investments at the end of the period may not equal our fair value measurement at the time of impairment due to the subsequent recognition of equity method adjustments. In addition, the carrying value of our impaired property, plant and equipment at the end of the period may not equal our fair value measurement at the time of impairment due to the subsequent recognition of depreciation expense.

A portion of our non-marketable equity investments were measured and recorded at fair value in thefirst half of 2011 and 2010due to events or circumstances that significantly impacted the fair value of those investments, resulting in other-than-temporary impairment charges. We classified these measurements as Level 3, as we used unobservable inputs to the valuation methodologies that were significant to the fair value measurements, and the valuations required management judgment due to the absence of quoted market prices. We determine the fair value of our non-marketable equity investments using the market and income approaches. The market approach includes the use of financial metrics and ratios of comparable public companies. The selection of comparable companies requires management judgment and is based on a number of factors, including comparable companies' sizes, growth rates, industries, development stages, and other relevant factors. The income approach includes the use of a discounted cash flow model, which requires the following significant estimates for the investee: revenue, based on assumed market segment size and assumed market segment share; costs; and discount rates based on the risk profile of comparable companies. Estimates of market segment size, market segment share, and costs are developed using historical data and available market data. The valuation of these non-marketable equity investments also takes into account variables such as conditions reflected in the capital markets, recent financing activities by the investees, the investees' capital structure, and the terms of the investees' issued interests.

Additionally, certain of our property, plant and equipment was measured and recorded at fair value during the first half of 2011 and 2010due to events or circumstances we identified that indicated that the carrying value of the assets or the asset grouping was not recoverable, resulting in impairment charges. Most of these asset impairments related to manufacturing assets.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We measure the fair value of our non-marketable equity investments, marketable equity method investment, debt carried at amortized cost, and cost method loans receivable quarterly for disclosure purposes; however, they are recorded at fair value only when an impairment charge is recognized. The carrying amounts and fair values of financial instruments not recorded at fair value on a recurring basis as of July 2, 2011 and December 25, 2010 were as follows:

	July 2, 2011				December 25, 2010
	Carrying		Fair		Carrying		Fair
(In Millions)	Amount		Value		Amount		Value
Non-marketable equity investments	$	2,713	$	5,725	$	2,633	$	5,144
Marketable equity method investment	$	34	$	103	$	31	$	167
Loans receivable	$	230	$	230	$	208	$	208
Long-term debt	$	1,962	$	2,204	$	1,949	$	2,283

As of July 2, 2011 and December 25, 2010, the unrealized loss position of our non-marketable equity investments was not significant.

Our marketable equity method investment is our ownership interest in SMART Technologies, Inc. The fair value of our ownership interest in SMART was $103 million based on the quoted closing stock price as of July 2, 2011 ($167 million as of December 25, 2010).

The carrying amount and fair value of loans receivable exclude loans measured and recorded at a fair value of $687 million as of July 2, 2011 ($642 million as of December 25, 2010). The carrying amount and fair value of long-term debt exclude long-term debt measured and recorded at a fair value of $128 million as of July 2, 2011 ($128 million as of December 25, 2010).

The fair value of our loans receivable is determined using a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. The fair value of our long-term debt takes into consideration variables such as credit-rating changes and interest rate changes. The credit quality of our loans receivable remains high, with credit ratings of BBB+/A2 or better as of July 2, 2011.

In addition to the financial instruments in the table above, we incurred a liability as result of entering into a long-term patent cross-license agreement with NVIDIA Corporation in January 2011. We agreed to make payments to NVIDIA over six years. For further information on the payment terms and recognition of licensed technology intangible assets, see “Note 18: Identified Intangible Assets.” As of July 2, 2011, the carrying amount of the liability arising from the agreement was $1.1 billion and is classified within other accrued liabilities and other long-term liabilities, as applicable. The fair value of the liability arising from the NVIDIA cross-license agreement approximates the carrying amount. The fair value is determined using a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.

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Interest and Other, Net (Tables)

6 Months Ended

Jul. 02, 2011

Interest and Other, Net (Tables) [Abstract]

Interest and Other, Net Table [Text Block]

The components of interest and other, net were as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Interest income	$	20	$	29	$	48	$	55
Interest expense		—		—		(6)		—
Other, net		1		(18)		164		(15)
Total interest and other, net	$	21	$	11	$	206	$	40

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Common Stock Repurchases

6 Months Ended

Jul. 02, 2011

Common Stock Repurchases [Abstract]

Common Stock Repurchases

Note 23: Common Stock Repurchases

Common Stock Repurchase Program

We have an ongoing authorization, since October 2005, as amended, from our Board of Directors to repurchase up to $35 billion in shares of our common stock in open market or negotiated transactions. As of July 2, 2011, $8.2 billion remained available for repurchase under the existing repurchase authorization limit. During the second quarter of 2011, we repurchased 93.3 million shares of common stock at a cost of $2.0billion.During the first half of 2011, we repurchased 282.4 million shares of common stock at a cost of $6.0billion.We did not make any common stock repurchases under our authorized plan during the first half of 2010.We have repurchased 3.7billion shares at a cost of $76 billion since the program began in 1990. Our repurchases in the first halfof 2011 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 thefirst half of 2011, we withheld 9.2 million shares (9.2 million shares during the first half of 2010) to satisfy $180 million ($219 million during the first half of 2010) of employees' tax obligations. Although shares withheld are not issued, they are treated as common stock repurchases in our financial statements, as they reduce the number of shares that would have been issued upon vesting.

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Chipset Design Issue (Detail) (Chipset Design Issue [Member], USD $) In Millions	3 Months Ended			9 Months Ended
	Jul. 02, 2011	Apr. 02, 2011	Dec. 25, 2010	Jul. 02, 2011
Chipset Design Issue [Member]
Loss Contingencies [Line Items]
Loss Contingency and Inventory Write-down, Estimate of Total Loss				$ 733
Loss Contingency, Loss in Period			244
Inventory Write-down			67
Loss Contingency and Inventory Write-Down Charge to Cost of Sales	79	343	311
Loss Contingency Accrual, at Carrying Value	$ 346			$ 346

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Divestitures (Detail) (USD $) In Millions	6 Months Ended		3 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Apr. 02, 2011 Intel-GE Care Innovations, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	$ 164	$ 0	$ 164

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Accounting Policies (Policies)

6 Months Ended

Jul. 02, 2011

Accounting Policies (Policies) [Abstract]

Additional Revenue Recognition Policy [Text Block]

We have adopted additional revenue recognition accounting policies as they apply to the acquired McAfee business. Revenue from license agreements with our McAfee business generally includes service and support agreements for which the related revenue is deferred and recognized ratably over the performance period. Revenue derived from online subscription products is deferred and recognized ratably over the performance period. Professional services revenue is recognized as services are performed or if required, upon customer acceptance. For arrangements with multiple elements, including software licenses, maintenance, and/or services, revenue is allocated across the separately identified deliverables and may be recognized or deferred. When vendor-specific objective evidence (VSOE) does not exist for undelivered elements such as maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Direct costs, such as costs related to revenue-sharing and royalty arrangements associated with license arrangements, as well as component costs associated with product revenue, are deferred and amortized over the same period that the related revenue is recognized.

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Gains (Losses) on Other Equity Investments, Net (Tables)

6 Months Ended

Jul. 02, 2011

Gains (Losses) on Other Equity Investments, Net (Tables) [Abstract]

Schedule of Gains (Losses) on Other Equity Investments, Net [Text Block]

Gains (losses) on other equity investments, net included:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Impairment charges	$	(9)	$	(11)	$	(23)	$	(53)
Gains on sales, net		42		20		87		103
Other, net		8		108		47		75
Total gains (losses) on other equity investments, net	$	41	$	117	$	111	$	125

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Comprehensive Income

6 Months Ended

Jul. 02, 2011

Comprehensive Income [Abstract]

Comprehensive Income

Note 25: Comprehensive Income

The components of total comprehensive income were as follows:

		Three Months Ended				Six Months Ended
		July 2,		June 26,		July 2,		June 26,
(In Millions)		2011		2010		2011		2010
Net income		$	2,954	$	2,887	$	6,114	$	5,329
Change in net unrealized holding gain (loss) on
	available-for-sale investments		(36)		(16)		(41)		38
Change in deferred tax asset valuation allowance			1		(6)		(14)		28
Change in net unrealized holding gain (loss) on derivatives			(7)		(109)		105		(174)
Change in net prior service cost			—		(40)		—		(40)
Change in actuarial loss			(6)		(12)		(13)		(14)
Change in net foreign currency translation adjustment			33		—		96		—
Total comprehensive income		$	2,939	$	2,704	$	6,247	$	5,167

The components of accumulated other comprehensive income, net of tax, at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Accumulated net unrealized holding gain (loss) on available-for-sale investments	$	360	$	401
Accumulated net change in deferred tax asset valuation allowance		189		203
Accumulated net unrealized holding gain (loss) on derivatives		232		127
Accumulated net prior service cost		(36)		(36)
Accumulated net actuarial loss		(375)		(362)
Accumulated net foreign currency translation adjustment		96		—
Total accumulated other comprehensive income (loss)	$	466	$	333

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Gains (Losses) on Other Equity Investments, Net

6 Months Ended

Jul. 02, 2011

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:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Impairment charges	$	(9)	$	(11)	$	(23)	$	(53)
Gains on sales, net		42		20		87		103
Other, net		8		108		47		75
Total gains (losses) on other equity investments, net	$	41	$	117	$	111	$	125

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Other Long Term Assets (Detail) (USD $) In Millions	Jul. 02, 2011	Dec. 25, 2010
Other Long-Term Assets Detail [Abstract]
Equity Method Investments	$ 1,738	$ 1,791
Non-marketable cost method investments	1,009	872
Non-current deferred tax assets	357	289
Loans Receivable	651	741
Other	729	558
Total other long-term assets	$ 4,484	$ 4,251

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Acquisitions (Detail) (USD $)	6 Months Ended	2 Months Ended	6 Months Ended	2 Months Ended	6 Months Ended				6 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jul. 02, 2011 Acquisition-Related Developed Technology [Member] Series of Individually Immaterial Business Acquisitions [Member] Y	Feb. 28, 2011 Acquisition-Related Developed Technology [Member] McAfee, Inc. [Member] Y	Jul. 02, 2011 Acquisition-Related Customer Relationships [Member] Series of Individually Immaterial Business Acquisitions [Member] Y	Feb. 28, 2011 Acquisition-Related Customer Relationships [Member] McAfee, Inc. [Member] Y	Jul. 02, 2011 Other Intangible Assets [Member] Series of Individually Immaterial Business Acquisitions [Member] Y	Jul. 02, 2011 Total Finite Lived Intangible Assets [Member] Series of Individually Immaterial Business Acquisitions [Member]	Feb. 28, 2011 Total Finite Lived Intangible Assets [Member] McAfee, Inc. [Member]	Feb. 28, 2011 Acquisition-Related Trade Names [Member] McAfee, Inc. [Member]	Jul. 02, 2011 In-Process Research And Development [Member] Series of Individually Immaterial Business Acquisitions [Member]	Feb. 28, 2011 In-Process Research And Development [Member] McAfee, Inc. [Member]	Jul. 02, 2011 Series of Individually Immaterial Business Acquisitions [Member]	Jan. 31, 2011 Infineon's Wireless Solutions Business [Member]	Apr. 02, 2011 McAfee, Inc. [Member]	Jun. 26, 2010 McAfee, Inc. [Member]	Jun. 26, 2010 McAfee, Inc. [Member]	Feb. 28, 2011 McAfee, Inc. [Member]	Jul. 02, 2011 McAfee, Inc. and Series of Individually Immaterial Business Acquisitions [Member]	Jun. 26, 2010 McAfee, Inc. and Series of Individually Immaterial Business Acquisitions [Member]	Jul. 02, 2011 McAfee, Inc. and Series of Individually Immaterial Business Acquisitions [Member]	Jun. 26, 2010 McAfee, Inc. and Series of Individually Immaterial Business Acquisitions [Member]
Acquisitions [Abstract]
Date of business acquisition													Feb. 28, 2011
Cash Acquired From Acquisition													$ 943,000,000
Cash												1,400,000,000				6,652,000,000
Share-based awards assumed																48,000,000
Total Consideration																6,700,000,000
Marketable debt securities																329,000,000
Goodwill																4,295,000,000
Identified intangible assets		1,221,000,000		1,418,000,000			2,639,000,000	821,000,000		92,000,000						3,552,000,000
Deferred tax assets																742,000,000
Other assets																417,000,000
Deferred income																(1,049,000,000)
Deferred tax liabilities																(1,191,000,000)
Other liabilities																(395,000,000)
Total fair value of the assets acquired and liabilities assumed																6,700,000,000
Estimated useful life (in years)		4
Estimated useful life (in years)	3		5	2	2
Estimated useful life (in years)	9		8	7	5
Total Consideration											1,700,000,000
Fair value of net tangible assets acquired											157,000,000
Goodwill											248,000,000
Identified intangible assets	1,037,000,000		96,000,000		43,000,000	1,176,000,000			119,000,000		1,295,000,000
Total fair value of the assets acquired and liabilities assumed											1,700,000,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual																	1,000,000,000		1,500,000,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual																	(50,000,000)		(120,000,000)
Nonrecurring adjustment included in pro forma results which reduces net income due to revaluation of acquiree's historic deferred revenue														89,000,000	202,000,000
Net revenue																	13,100,000,000	11,573,000,000	26,527,000,000	22,587,000,000
Net income																	$ 3,014,000,000	$ 2,778,000,000	$ 6,198,000,000	$ 5,082,000,000
Diluted earnings per share																	$ 0.55	$ 0.49	$ 1.12	$ 0.89

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Trading Assets

6 Months Ended

Jul. 02, 2011

Trading Assets [Abstract]

Trading Assets

Note 6: Trading Assets

Trading assets as of July 2, 2011 and December 25, 2010were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Marketable debt instruments	$	3,796	$	4,705
Marketable equity securities		10		388
Total trading assets	$	3,806	$	5,093

Net gains on marketable debt instruments classified as trading assets still held at the reporting date were $16 million in the second quarter of 2011 and $66 million in the first half of 2011(net losses of $173 million in the second quarter of 2010 and $234 million in the first half of 2010). Net losses on the related derivatives were $13 million in the second quarter of 2011 and $53 million in the first half of 2011(net gains of $143 million in the second quarter of 2010 and $191 million in the first half of 2010).

Net losses on marketable equity securities classified as trading assets still held at the reporting date, excluding the impacts of the related derivatives, were insignificantinthe second quarter of 2011 and inthe first half of 2011(net gains of $38 million in the second quarter of 2010 and first half of 2010).

In 2010, we sold our ownership in Numonyx B.V. to Micron Technology, Inc. The Micron common stock we received in the transaction was classified as marketable equity securities within trading assets. During the second quarter of 2011, we sold our remaining shares in Micron.

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Divestitures

6 Months Ended

Jul. 02, 2011

Divestitures [Abstract]

Divestitures

Note 16: Divestitures

In the first quarter of 2011, we completed the divestiture of our Digital Health Group by entering into an agreement with GE to form an equally owned joint venture to create a new healthcare company focused on independent living and delivery of health-related services via telecommunications. The new company, Care Innovations, was formed by combining assets of GE Healthcare's Home Health division and Intel's Digital Health Group. During the first quarter of 2011, as a result of the formation of Care Innovations, we recognized a gain of $164 million, within interest and other, net. For further information, see “Note 11: Equity Method Investments.”

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Deferred Income (Detail) (USD $) In Millions	Jul. 02, 2011	Dec. 25, 2010
Deferred Income Detail [Abstract]
Deferred income on shipments of components to distributors	$ 759	$ 622
Deferred income from software and services operating segments	1,065	125
Current deferred income	1,824	747
Non-current deferred income from software and services operating segments	361	21
Total deferred income	$ 2,185	$ 768

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Goodwill (Detail) (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Dec. 25, 2010
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 4,531
Goodwill - Effect of exchange rate fluctuations	67
Goodwill, Ending Balance	9,141
Goodwill- accumulated impairment losses	713	713
Series of Individually Immaterial Business Acquisitions [Member] | PC Client Group [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	5
PC Client Group [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	2,234
Goodwill - Transfers	(86)
Goodwill, Ending Balance	2,153
Goodwill- accumulated impairment losses	341	355
Data Center Group [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance		1,459
Goodwill, Ending Balance	1,459	1,459
Goodwill- accumulated impairment losses	279	279
Series of Individually Immaterial Business Acquisitions [Member] | Other Intel Architecture Operating Segments [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	20
Other Intel Architecture Operating Segments [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	582
Goodwill - Transfers	86
Goodwill, Ending Balance	688
Goodwill- accumulated impairment losses	93	79
Series of Individually Immaterial Business Acquisitions [Member] | Software and Services Operating Segments [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	19
Software and Services Operating Segments [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	256
Goodwill - Effect of exchange rate fluctuations	1
Goodwill, Ending Balance	276
Series of Individually Immaterial Business Acquisitions [Member] | Unallocated [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	204
McAfee, Inc. [Member] | Unallocated [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	4,295
Unallocated [Member]
Goodwill [Line Items]
Goodwill - Effect of exchange rate fluctuations	66
Goodwill, Ending Balance	4,565
Series of Individually Immaterial Business Acquisitions [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	248
McAfee, Inc. [Member]
Goodwill [Line Items]
Goodwill - Additions due to acquisitions	$ 4,295

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Other Long-Term Assets (Tables)

6 Months Ended

Jul. 02, 2011

Other Long-Term Assets (Tables) [Abstract]

Schedule of Other Long-Term Assets [Text Block]

Other long-term assets at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Equity method investments	$	1,738	$	1,791
Non-marketable cost method investments		1,009		872
Non-current deferred tax assets		357		289
Loans receivable		651		741
Other		729		558
Total other long-term assets	$	4,484	$	4,251

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Earnings Per Share (Detail) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Net income available to common stockholders	$ 2,954	$ 2,887	$ 6,114	$ 5,329
Weighted average common shares outstanding-basic	5,294	5,563	5,376	5,546
Dilutive effect of employee equity incentive plans (shares)	94	96	98	98
Dilutive effect of convertible debt (shares)	53	52	53	52
Weighted average common shares outstanding-diluted	5,441	5,711	5,527	5,696
Basic earnings per common share (in dollars per share)	$ 0.56	$ 0.52	$ 1.14	$ 0.96
Diluted earnings per common share (in dollars per share)	$ 0.54	$ 0.51	$ 1.11	$ 0.94
Stock Option Awards [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (shares)	94	118	110	152

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Earnings Per Share

6 Months Ended

Jul. 02, 2011

Earnings Per Share [Abstract]

Earnings Per Share

Note 24: Earnings Per Share

We computed our basic and diluted earningsper common share as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net income available to common stockholders	$	2,954	$	2,887	$	6,114	$	5,329
Weighted average common shares outstanding — basic		5,294		5,563		5,376		5,546
Dilutive effect of employee equity incentive plans		94		96		98		98
Dilutive effect of convertible debt		53		52		53		52
Weighted average common shares outstanding — diluted		5,441		5,711		5,527		5,696
Basic earnings per common share	$	0.56	$	0.52	$	1.14	$	0.96
Diluted earnings per common share	$	0.54	$	0.51	$	1.11	$	0.94

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. Net income available to participating securities was insignificant for all periods presented.

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 our 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 the second quarter of 2011, we excluded 94 million outstanding weighted average stock options (110 million for the first half of 2011) 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 (118 million for the second quarter of 2010and 152 million for the first half of 2010). 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 the debentures was anti-dilutive. In the future, we could have potentially dilutive shares if the average market price is above the conversion price.

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Consolidated Condensed Statements of Cash Flows (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010
Consolidated Condensed Statements of Cash Flows [Abstract]
Cash and cash equivalents, beginning of period	$ 5,498	$ 3,987
Cash flows provided by (used for) operating activities:
Net income	6,114	5,329
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,535	2,166
Share-based compensation	562	480
Net loss on retirement of assets	56	16
Excess tax benefit from share-based payment arrangements	(26)	(62)
Amortization of intangibles	411	124
(Gains) losses on equity method investments, net	108	(37)
(Gains) losses on other equity investments, net	(111)	(125)
(Gains) losses on divestitures	(164)	0
Deferred taxes	31	2
Changes in assets and liabilities:
Accounts receivable	(388)	(147)
Inventories	(184)	(395)
Accounts payable	388	243
Accrued compensation and benefits	(832)	(513)
Income taxes payable and receivable	(466)	(23)
Other assets and liabilities	(50)	507
Total adjustments	1,870	2,236
Net cash provided by operating activities	7,984	7,565
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment	(5,207)	(1,976)
Acquisitions, net of cash acquired	(8,291)	(70)
Purchases of available-for-sale investments	(5,213)	(6,863)
Sales of available-for-sale investments	8,754	337
Maturities of available-for-sale investments	7,087	5,625
Purchases of trading assets	(3,820)	(4,791)
Maturities and sales of trading assets	5,258	3,571
Origination of loans receivable	(30)	(439)
Investments in non-marketable equity investments	(295)	(169)
Return of equity method investments	113	99
Proceeds from divestitures	50	0
Other investing	167	34
Net cash used for investing activities	(1,427)	(4,642)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net	33	43
Proceeds from government grants	56	79
Excess tax benefit from share-based payment arrangements	26	62
Proceeds from sales of shares through employee equity incentive plans	587	386
Repurchase of common stock	(6,180)	(219)
Payment of dividends to stockholders	(1,955)	(1,747)
Net cash used for financing activities	(7,433)	(1,396)
Effect of exchange rate fluctuations on cash and cash equivalents	13	0
Net increase (decrease) in cash and cash equivalents	(863)	1,527
Cash and cash equivalents, end of period	4,635	5,514
Cash paid during the period for:
Income taxes, net of refunds	$ 2,596	$ 2,359

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Goodwill

6 Months Ended

Jul. 02, 2011

Goodwill [Abstract]

Goodwill

Note 17: Goodwill

Goodwill activity for the first half of 2011 was as follows:

					Other Intel		Software and
					Architecture		Services
	PC Client		Data Center		Operating		Operating
(In Millions)	Group		Group		Segments		Segments		Unallocated		Total
December 25, 2010	$	2,234	$	1,459	$	582	$	256	$	—	$	4,531
Additions due to McAfee acquisition		—		—		—		—		4,295		4,295
Additions due to other acquisitions		5		—		20		19		204		248
Transfers		(86)		—		86		—		—		—
Effect of exchange rate fluctuations		—		—		—		1		66		67
July 2, 2011	$	2,153	$	1,459	$	688	$	276	$	4,565	$	9,141

During the first quarter of2011, we formed the Netbook and Tablet Group, which includes microprocessors and related chipsets designed for the netbook and tablet market segments. Due to the formation of this new operating segment, goodwill was transferred from our PC Client Group to our Netbook and Tablet Group as shown in the preceding table. Our Netbook and Tablet Group is included in the other Intel architecture operating segments category in the preceding table.

During the first quarter of 2011,we completedthe acquisition of McAfee. The goodwill recognized from this acquisition is unallocated to date. We will use information from our annual planning process, which will be completed later this year, to measure the synergistic value that the McAfee acquisition creates for operating segments other than McAfee. In addition to the McAfee acquisition, we completed seven other acquisitions during the first half of 2011. The substantial majority of the goodwill recognized from these seven other acquisitions is unallocated to date as we continue to measure the synergistic value that the acquisitions create for our individual operating segments. The remaining goodwill recognized from these seven other acquisitions was allocated to Intel Mobile Communications,the Software and Services Group, and our PC Client Group. Intel Mobile Communications is included in the other Intel architecture operating segments category in the preceding table, while our Software and Services Group is included in the software and services operating segments category. For further information about our acquisitions during the first half of 2011, see “Note 15: Acquisitions.”

No goodwill was impaired during the first half of 2011 and 2010, and the accumulated impairment losses as of July 2, 2011 were $713 million: $341 million associated with our PC Client Group,$279million associated with our Data Center Group, and $93 million associated with other Intel architecture operating segments. The accumulated impairment losses as of December 25, 2010 were $713 million: $355 million associated with our PC Client Group, $279 million associated with our Data Center Group, and $79 million associated with other Intel architecture operating segments.

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Goodwill (Tables)

6 Months Ended

Jul. 02, 2011

Goodwill (Tables) [Abstract]

Schedule of Goodwill [Text Block]

Goodwill activity for the first half of 2011 was as follows:

					Other Intel		Software and
					Architecture		Services
	PC Client		Data Center		Operating		Operating
(In Millions)	Group		Group		Segments		Segments		Unallocated		Total
December 25, 2010	$	2,234	$	1,459	$	582	$	256	$	—	$	4,531
Additions due to McAfee acquisition		—		—		—		—		4,295		4,295
Additions due to other acquisitions		5		—		20		19		204		248
Transfers		(86)		—		86		—		—		—
Effect of exchange rate fluctuations		—		—		—		1		66		67
July 2, 2011	$	2,153	$	1,459	$	688	$	276	$	4,565	$	9,141

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Deferred Income

6 Months Ended

Jul. 02, 2011

Deferred Income [Abstract]

Deferred Income

Note 19: Deferred Income

Deferred income at the end of each period was as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Deferred income on shipments of components to distributors	$	759	$	622
Deferred income from software and services operating segments		1,065		125
Current deferred income	$	1,824	$	747
Non-current deferred income from software and services operating segments		361		21
Total deferred income	$	2,185	$	768

We classify non-current deferred income from the software and services operating segments in other long-term liabilities.

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Contingencies (Detail) Share data in Millions	1 Months Ended	0 Months Ended	12 Months Ended	1 Months Ended					2 Months Ended
	Oct. 31, 2010 Lehman Matter [Member] USD ($)	Sep. 26, 2008 Lehman Matter [Member] USD ($)	Dec. 31, 2008 Lehman Matter [Member] USD ($)	Nov. 30, 2009 State of New York Lawsuit [Member] USD ($)	May 31, 2009 EC Fine [Member] USD ($)	May 31, 2009 EC Fine [Member] EUR (€)	Nov. 30, 2008 Korea Fair Trade Commission Antitrust Violation Inquiry [Member] USD ($)	Jun. 30, 2008 Korea Fair Trade Commission Antitrust Violation Inquiry [Member] USD ($)	Dec. 31, 2008 Frank T. Shum Versus Intel Corporation, Jean-Marc Verdiell And LightLogic, Inc. [Member] USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Fine					$ 1,447,000,000	€ 1,060,000,000	$ 20,000,000
Loss Contingency, Announced Fine Intention								25,000,000
Loss Contingency, Amount Sought For Each Proven Donnely Act Violation				1,000,000
Loss Contingency, Lawsuit Preliminary Alleged Damages, Low Estimate									31,000,000
Loss Contingency, Lawsuit Preliminary Alleged Damages, High Estimate									931,000,000
Loss Contingency, Pre-Payment Amount For Forward-Purchase Agreement			1,000,000,000
Loss Contingency, Value of Shares Of Intel Common Stock Required To Be Purchased Under Forward-Purchase Agreement		1,000,000,000
Loss Contingency, Cash Collateral Received For Forward-Purchase Agreement			1,000,000,000
Loss Contingency, Shares Of Intel Common Stock Required To Be Delivered Under Forward-Purchase Agreement			50
Loss Contingency, Cash Collateral Foreclosed On In Forward-Purchase Agreement			1,000,000,000
Loss Contingency, Lawsuit Alleged Damages	$ 417,000,000								$ 175,000,000

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Employee Equity Incentive Plans (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended						3 Months Ended	6 Months Ended			3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010	Jul. 02, 2011 Restricted Stock or Stock Units, 2006 Plan [Member]	Jul. 02, 2011 2006 Equity Incentive Plan [Member]	May 31, 2011 2006 Equity Incentive Plan [Member]	Jul. 02, 2011 Stock Purchase Plan [Member]	Jul. 02, 2011 Stock Purchase Plan [Member] Y	Jun. 26, 2010 Stock Purchase Plan [Member] Y	May 31, 2011 Stock Purchase Plan [Member]	Jul. 02, 2011 Restricted Stock Units [Member]	Jun. 26, 2010 Restricted Stock Units [Member]	Jul. 02, 2011 Restricted Stock Units [Member]	Jun. 26, 2010 Restricted Stock Units [Member]	Dec. 25, 2010 Restricted Stock Units [Member]	Jul. 02, 2011 Stock Option Awards [Member] Y	Jun. 26, 2010 Stock Option Awards [Member] Y	Jul. 02, 2011 Stock Option Awards [Member] Y	Jun. 26, 2010 Stock Option Awards [Member] Y	Jul. 02, 2011 Market-based restricted stock units [Member]
Employee Equity Incentive Plans, (Textual) (Details) [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number Of Additional Shares Approved By Stockholders For Issuance								168				133
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						394	596		373	373
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant							309		263	263
Share-based Compensation Arrangement by Share-based Payment Award, Percent of Market Price									85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period										10.3	9.8
Employee Purchases, Amount										$ 181	$ 161
Share-based Compensation	262	232	562	480
Restricted Stock Units, Stock Options, And Stock Purchase Plan Estimated Values And Weighted Average Assumptions [Abstract]
Estimated values (in dollars per share)													$ 19.55	$ 22.56	$ 19.76	$ 22.71
Risk-free interest rate													0.70%	1.10%	0.80%	1.10%
Dividend yield													3.40%	2.60%	3.40%	2.60%
Volatility (in decimal ratio)										23.00%	32.00%				27.00%	30.00%		26.00%	27.00%	26.00%	28.00%
Estimated values (in dollars per share)										$ 4.41	$ 4.57							$ 3.89	$ 4.87	$ 3.89	$ 4.83
Expected life (in years)										0.5	0.5							5.4	4.7	5.3	5.0
Risk-free interest rate										0.20%	0.20%							2.30%	2.50%	2.30%	2.60%
Dividend yield										3.40%	3.20%							3.40%	2.60%	3.40%	2.70%
Restricted Stock Unit Activity [Abstract]
Number of RSUs outstanding, beginning balance															99.8							4.0
Number of RSUs granted															40.7
Number of RSUs assumed in acquisition															5.8
Number of RSUs vested															(33.2)
Number of RSUs forfeited															(2.8)
Number of RSUs outstanding, ending balance													110.3		110.3							4.0
Weighted-average grant date fair value of RSU balance (in dollars per share)													$ 19.14		$ 19.14		$ 18.56
Weighted-average grant date fair value of RSUs assumed in acquisition (in dollars per share)															$ 20.80
Weighted-average grant date fair value of vested RSUs (in dollars per share)															$ 18.41
Weighted-average grant date fair value of forfeited RSUs (in dollars per share)															$ 19.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value															653
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value Amount															611
Stock Option Activity [Abstract]
Number of options outstanding, beginning balance			386.4
Number of options granted			13.1
Number of options assumed in acquisition			11.8
Number of options exercised			(22.0)
Number of options cancelled and forfeited			(6.0)
Number of options expired			(16.6)
Number of options outstanding, ending balance	366.7		366.7
Weighted-average exercise price of stock options (in dollars per share)	$ 20.25		$ 20.25		$ 20.45
Weighted-average exercise price for stock option grants during the year (in dollars per share)			$ 21.27
Weighted-average exercise price for stock option assumed in acquisition during the year (in dollars per share)			$ 15.95
Weighted-average exercise price for stock option exercises during the year (in dollars per share)			$ 18.59
Weighted-average exercise price for stock option cancellations and forfeitures during the year (in dollars per share)			$ 20.03
Weighted-average exercise price for stock option expirations during the year (in dollars per share)			$ 25.01
Options exercisable	248.7		248.7		263.0
Weighted-average exercise price for options exercisable (in dollars per share)	$ 20.69		$ 20.69		$ 21.03
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value			$ 89

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Accounting Policies

6 Months Ended

Jul. 02, 2011

Accounting Policies [Abstract]

Accounting Policies

Note 2: Accounting Policies

We have adopted additional revenue recognition accounting policies as they apply to the acquired McAfee business. Revenue from license agreements with our McAfee business generally includes service and support agreements for which the related revenue is deferred and recognized ratably over the performance period. Revenue derived from online subscription products is deferred and recognized ratably over the performance period. Professional services revenue is recognized as services are performed or if required, upon customer acceptance. For arrangements with multiple elements, including software licenses, maintenance, and/or services, revenue is allocated across the separately identified deliverables and may be recognized or deferred. When vendor-specific objective evidence (VSOE) does not exist for undelivered elements such as maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Direct costs, such as costs related to revenue-sharing and royalty arrangements associated with license arrangements, as well as component costs associated with product revenue, are deferred and amortized over the same period that the related revenue is recognized.

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Equity Method Investments

6 Months Ended

Jul. 02, 2011

Equity Method and Cost Method Investments [Abstract]

Equity Method Investments

Note 11: Equity Method Investments

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. As of July 2, 2011, we owned a 49% interest in IMFT and a14% interest in IMFS. The carrying value of our investment in IMFT/IMFS was $1.3 billion as of July 2, 2011 ($1.5 billion as of December 25, 2010) and is classified within other long-term assets. The IMFS fabrication facility began initial productionin the second quarter of 2011. 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. As a result of the reduction of our ownership interest in IMFS during 2010 and 2011, Micron now appoints the majority of the managers on the IMFS board. These ventures are expected to operate until 2016 but are subject to earlier termination under certain terms and conditions.

These joint ventures are variable interest entities. All costs of the joint ventures will be passed on to Micron and Intel through our purchase agreements. IMFT and IMFS are dependent upon Micron and Intel for any additional cash requirements. Our known maximum exposure to loss approximated the carrying value of our investment balance in IMFT/IMFS as of July 2, 2011. As of July 2, 2011, except for the amount due to IMFT/IMFS for product purchases and services, we did not have any additional liabilities recognized on our consolidated condensed balance sheet in connection with our interests in these joint ventures. In addition to the potential loss of our existing investment, our actual losses could be higher, as Intel and Micron are liable for other future operating costs or obligations of IMFT/IMFS. In addition, future cash calls could increase our investment balance and the related exposure to loss. Finally, as we are currently committed to purchasing 49% of IMFT's and 43% of IMFS's production output and production-related services, we may be required to purchase products at a cost in excess of realizable value. Our contractual commitment to purchase product output and fund production-related services adjusts to changes in our ownership percentage on a one-year lag.

Our portion of IMFT/IMFS costs, primarily related to product purchases and production-related services, was approximately $250 millionduring the second quarter of 2011and approximately $470million during the first half of 2011 (approximately $190 million during the second quarter of 2010and approximately$380million during the first half of 2010). The amount due to IMFT/IMFS for product purchases and services provided was approximately $110 million as of July 2, 2011 (approximately $105 million as of December 25, 2010). During the first half of 2011, $113 million was returned to Intel by IMFT/IMFS, which is reflected as a return of equity method investment within investing activities on the consolidated condensed statements of cash flows ($99 million during the first half of 2010).

Under the accounting standards for consolidating variable interest entities, the consolidating investor is the entity with the power to direct the activities of the venture that most significantly impact the venture's economic performance and with the obligation to absorb losses or the right to receive benefits from the venture that could potentially be significant to the venture. We have determined that we do not have both of these characteristics and, therefore, we account for our interests using the equity method of accounting.

Intel-GE Care Innovations, LLC

In the first quarter of 2011, Intel and General Electric Company (GE) formed an equally owned joint venture, Intel-GE Care Innovations, LLC (Care Innovations), in the healthcare industry that focuses on independent living and delivery of health-related services via telecommunications. The company was formed by combining assets of GE Healthcare's Home Health division and Intel's Digital Health Group. As a result of the formation of Care Innovations, we recognized a gain of $164 millionin the first quarter of 2011 that is recorded in interest and other, net. Our investment in Care Innovations was $159 million as of July 2, 2011 and is classified in other long-term assets.

Care Innovations is dependent upon Intel and GE for any additional cash requirements and, therefore, is a variable interest entity. Our known maximum exposure to loss approximated the carrying value of our investment balance in Care Innovations as of July 2, 2011. In addition to the potential loss of our existing investment, our actual losses could be higher, as we are liable to contribute additional future funding up to approximately $65 million if Care Innovations were to meet established milestones.

Intel and GE share the power to direct all of Care Innovations' activities that most significantly impact its economic performance. As a result, we account for our interests in Care Innovations under the equity method of accounting.

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Derivative Financial Instruments (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	$ 16,990	$ 16,181	$ 16,990	$ 16,181	$ 17,810
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Recognized in OCI on Derivatives (Effective Portion)	54	(123)	258	(175)
Gains (Losses) Reclassified From Accumulated OCI Into Income by Derivative Instrument Type (Effective Portion)	70	14	118	49
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			165
Cost of Sales [Member] | Currency Forwards [Member]
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Reclassified From Accumulated OCI Into Income by Derivative Instrument Type (Effective Portion)	42	8	76	29
Cost of Sales [Member] | Other Derivative Instruments [Member]
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Reclassified From Accumulated OCI Into Income by Derivative Instrument Type (Effective Portion)	1	(1)	2	(3)
Research and Development [Member] | Currency Forwards [Member]
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Reclassified From Accumulated OCI Into Income by Derivative Instrument Type (Effective Portion)	15	8	23	17
Marketing, General and Administrative [Member] | Currency Forwards [Member]
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Reclassified From Accumulated OCI Into Income by Derivative Instrument Type (Effective Portion)	12	(1)	17	6
Interest and other, net [Member] | Nondesignated [Member] | Currency Forwards [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	2	108	16	143
Interest and other, net [Member] | Nondesignated [Member] | Interest Rate Swaps [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	(18)	(33)	(19)	(46)
Interest and other, net [Member] | Nondesignated [Member] | Currency Interest Rate Swaps [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	(18)	144	(128)	226
Gains (Losses) On Other Equity Investments, Net [Member] | Nondesignated [Member] | Equity Options [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	51	50	(66)	15
Gains (Losses) On Other Equity Investments, Net [Member] | Nondesignated [Member] | Other Derivative Instruments [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income			2	(4)
Various [Member] | Nondesignated [Member] | Total Return Swaps [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	(3)	(26)	20	(2)
Nondesignated [Member]
Schedule of Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gains (Losses) Recognized in Income	14	243	(175)	332
Other Current Assets [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Designated as Hedging Instrument, Fair Value	173		173		122
Derivative Asset Not Designated as Hedging Instrument, Fair Value	36		36		208
Derivative assets, fair value	209		209		330
Other Current Assets [Member] | Currency Forwards [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Designated as Hedging Instrument, Fair Value	171		171		120
Derivative Asset Not Designated as Hedging Instrument, Fair Value	28		28		35
Other Current Assets [Member] | Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value	1		1		2
Other Current Assets [Member] | Currency Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value	7		7		64
Other Current Assets [Member] | Total Return Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value					41
Other Current Assets [Member] | Equity Options [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value					65
Other Current Assets [Member] | Other Derivative Instruments [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Designated as Hedging Instrument, Fair Value	2		2		2
Derivative Asset Not Designated as Hedging Instrument, Fair Value					1
Other Long-Term Assets [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Designated as Hedging Instrument, Fair Value	2		2		3
Derivative Asset Not Designated as Hedging Instrument, Fair Value	29		29		47
Derivative assets, fair value	31		31		50
Other Long-Term Assets [Member] | Currency Forwards [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Designated as Hedging Instrument, Fair Value	2		2		3
Other Long-Term Assets [Member] | Currency Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value					17
Other Long-Term Assets [Member] | Total Return Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value	5		5		6
Other Long-Term Assets [Member] | Equity Options [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value	1		1		5
Other Long-Term Assets [Member] | Other Derivative Instruments [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Asset Not Designated as Hedging Instrument, Fair Value	23		23		19
Other Accrued Liabilities [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Designated as Hedging Instrument, Fair Value	9		9		43
Derivative Liability Not Designated as Hedging Instrument, Fair Value	163		163		165
Derivative liabilities, fair value	172		172		208
Other Accrued Liabilities [Member] | Currency Forwards [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Designated as Hedging Instrument, Fair Value	9		9		43
Derivative Liability Not Designated as Hedging Instrument, Fair Value	17		17		14
Other Accrued Liabilities [Member] | Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value	80		80		96
Other Accrued Liabilities [Member] | Currency Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value	60		60		47
Other Accrued Liabilities [Member] | Equity Options [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value	6		6		7
Other Accrued Liabilities [Member] | Other Derivative Instruments [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value					1
Other Long-Term Liabilities [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Designated as Hedging Instrument, Fair Value	1		1		3
Derivative Liability Not Designated as Hedging Instrument, Fair Value	84		84		44
Derivative liabilities, fair value	85		85		47
Other Long-Term Liabilities [Member] | Currency Forwards [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Designated as Hedging Instrument, Fair Value	1		1		3
Other Long-Term Liabilities [Member] | Embedded Debt Derivatives [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value	36		36		31
Other Long-Term Liabilities [Member] | Currency Interest Rate Swaps [Member]
Derivative Instruments in Statement of Financial Position, Fair Value [Abstract]
Derivative Liability Not Designated as Hedging Instrument, Fair Value	48		48		13
Currency Forwards [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	8,661	6,940	8,661	6,940	8,502
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Recognized in OCI on Derivatives (Effective Portion)	55	(126)	256	(178)
Embedded Debt Derivatives [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	3,600	3,600	3,600	3,600	3,600
Interest Rate Swaps [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	2,055	2,156	2,055	2,156	2,166
Currency Interest Rate Swaps [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	1,713	2,287	1,713	2,287	2,259
Total Return Swaps [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	797	525	797	525	627
Equity Options [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	44	511	44	511	496
Currency Options [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount		94		94	94
Other Derivative Instruments [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	120	68	120	68	66
Schedule of Derivative Instruments in Cash Flow Hedging Relationships [Abstract]
Gains (Losses) Recognized in OCI on Derivatives (Effective Portion)	(1)	3	2	3
Other Currencies [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	555	634	555	634	626
Euro [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	4,289	4,371	4,289	4,371	4,445
Japanese Yen [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	2,935	2,412	2,935	2,412	3,440
Israeli Shekel [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	1,459	712	1,459	712	1,191
British Pound Sterling [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	368	514	368	514	424
Chinese Yuan [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	403	368	403	368	347
Malaysian Ringgit [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	365	310	365	310	382
Currency Forwards, Currency Interest Rate Swaps And Currency Options [Member]
Gross Notional Amounts [Abstract]
Derivative, Notional Amount	$ 10,374	$ 9,321	$ 10,374	$ 9,321	$ 10,855

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Gains (Losses) on Other Equity Investments, Net (Detail) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010
Gains (Losses) on Other Equity Investments, Net Detail [Abstract]
Impairment charges	$ (9)	$ (11)	$ (23)	$ (53)
Gains on sales, net	42	20	87	103
Other, net	8	108	47	75
Total gains (losses) on other equity investments, net	$ 41	$ 117	$ 111	$ 125

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Common Stock Repurchases (Detail) (USD $)	6 Months Ended		3 Months Ended	6 Months Ended
	Jul. 02, 2011 Restricted Stock Unit Withholdings [Member]	Jun. 26, 2010 Restricted Stock Unit Withholdings [Member]	Jul. 02, 2011 Common Stock Repurchase Program [Member]	Jul. 02, 2011 Common Stock Repurchase Program [Member]
Common Stock Repurchases (Textuals) [Abstract]
Repurchase of Common Stock, Shares	9,200,000	9,200,000
Repurchase of Common Stock, Value	$ 180,000,000	$ 219,000,000
Total Stock Repurchase Authorization End of Current Period, Value			35,000,000,000	35,000,000,000
Remaining Stock Repurchase Authorization End of Current Period, Value			8,200,000,000	8,200,000,000
Accumulated Stock Repurchased During Program, Total Shares			3,700,000,000	3,700,000,000
Accumulated Stock Repurchased During Program, Total Value			76,000,000,000	76,000,000,000
Stock Repurchased and Retired During Period, Shares			93,300,000	282,400,000
Stock Repurchased and Retired During Period, Value			$ 2,000,000,000	$ 6,000,000,000

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Fair Value (Tables)

6 Months Ended

Jul. 02, 2011

Fair Value (Tables) [Abstract]

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Types of Instruments) [Text Block]

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments as of July 2, 2011 and December 25, 2010:

		July 2, 2011								December 25, 2010
		Fair Value Measured and								Fair Value Measured and
		Recorded at Reporting Date Using								Recorded at Reporting Date Using
(In Millions)		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
	Commercial paper	$	—	$	2,272	$	—	$	2,272	$	—	$	2,600	$	—	$	2,600
	Bank deposits		—		889		—		889		—		560		—		560
	Money market fund deposits		550		—		—		550		34		—		—		34
	Government bonds		465		—		—		465		1,279		505		—		1,784
Short-term investments:
	Commercial paper		—		1,505		—		1,505		—		2,712		—		2,712
	Corporate bonds		107		693		8		808		121		1,378		1		1,500
	Government bonds		125		451		—		576		4,890		1,320		—		6,210
	Bank deposits		—		210		—		210		—		858		—		858
	Asset-backed securities		—		—		7		7		—		—		14		14
Trading assets:
	Government bonds		230		1,722		—		1,952		311		2,115		—		2,426
	Corporate bonds		204		738		—		942		199		916		—		1,115
	Municipal bonds		—		350		—		350		—		375		—		375
	Commercial paper		—		305		—		305		—		488		—		488
	Asset-backed securities		—		—		146		146		—		—		190		190
	Bank deposits		—		69		—		69		—		108		—		108
	Money market fund deposits		32		—		—		32		3		—		—		3
	Marketable equity securities		10		—		—		10		388		—		—		388
Other current assets:
	Marketable equity securities
	Derivative assets		—		209		—		209		—		330		—		330
	Loans receivable		—		36		—		36		—		—		—		—
Marketable equity securities			841		51		—		892		785		223		—		1,008
Other long-term investments:
	Corporate bonds		73		404		57		534		104		601		50		755
	Government bonds		—		351		—		351		83		2,002		—		2,085
	Bank deposits		—		55		—		55		—		133		—		133
	Asset-backed securities		—		—		52		52		—		—		53		53
Other long-term assets:
	Loans receivable		—		651		—		651		—		642		—		642
	Derivative assets		—		2		29		31		—		19		31		50
Total assets measured and
	recorded at fair value	$	2,637	$	10,963	$	299	$	13,899	$	8,197	$	17,885	$	339	$	26,421
Liabilities
Other accrued liabilities:
	Derivative liabilities	$	—	$	166	$	6	$	172	$	—	$	201	$	7	$	208
Long-term debt			—		—		128		128		—		—		128		128
Other long-term liabilities:
	Derivative liabilities		—		85		—		85		—		47		—		47
Total liabilities measured and
	recorded at fair value	$	—	$	251	$	134	$	385	$	—	$	248	$	135	$	383

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Significant Unobservable Inputs [Level 3]) [Text Block]

The tables below present reconciliations for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months endedJuly 2, 2011 and for the twelve months ended December 25, 2010:

		Fair Value Measured and Recorded Using
		Significant Unobservable Inputs (Level 3)
		Corporate		Asset-Backed		Derivative		Derivative		Long-term		Total Gains
(In Millions)		Bonds		Securities		Assets		Liabilities		Debt		(Losses)
Balance as of December 25, 2010		$	51	$	257	$	31	$	(7)	$	(128)
Total gains or losses (realized and unrealized):
	Included in earnings		—		(1)		(2)		1		—		(2)
	Included in other comprehensive income (loss)		7		(1)		—		—		—		6
Purchases			12		13		3		—		—
Settlements and maturities			(5)		(63)		—		—		—
Transfers out of Level 3			—		—		(3)		—		—
Balance as of July 2, 2011		$	65	$	205	$	29	$	(6)	$	(128)
Changes in unrealized gains or losses included in
	earnings related to assets and liabilities still held
	as of July 2, 2011	$	—	$	(1)	$	(2)	$	1	$	—	$	(2)
		Fair Value Measured and Recorded Using
		Significant Unobservable Inputs (Level 3)
		Corporate		Asset-Backed		Derivative		Derivative		Long-term		Total Gains
(In Millions)		Bonds		Securities		Assets		Liabilities		Debt		(Losses)
Balance as of December 26, 2009		$	369	$	754	$	31	$	(65)	$	(123)
Total gains or losses (realized and unrealized):
	Included in earnings		(2)		6		(3)		(2)		(5)		(6)
	Included in other comprehensive income (loss)		4		9		—		—		—		13
Purchases			6		—		7		—		—
Sales			(44)		(28)		(4)		—		—
Settlements and maturities			(75)		(484)		—		—		—
Transfers out of Level 3			(207)		—		—		60		—
Balance as of December 25, 2010		$	51	$	257	$	31	$	(7)	$	(128)
Changes in unrealized gains or losses included in
	earnings related to assets and liabilities still held
	as of December 25, 2010	$	—	$	6	$	(4)	$	(1)	$	(5)	$	(4)

Assets Measured and Recorded at Fair Value on a Non-Recurring Basis [Text Block]

Our non-marketable equity investments and non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only if an impairment charge is recognized. The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during thesix months endedJuly 2, 2011, and the gains (losses) recorded during the three and six months ended July 2, 2011 on those assets:

										Total Gains		Total Gains
										(Losses) for		(Losses) for
		Net Carrying								Three Months		Six Months
		Value as of		Fair Value Measured and Recorded Using						Ended		Ended
(In Millions)		July 2, 2011		Level 1		Level 2		Level 3		July 2, 2011		July 2, 2011
Non-marketable equity investments		$	37	$	—	$	—	$	37	$	(8)	$	(22)
Property, plant and equipment		$	—	$	—	$	—	$	—	$	—	$	(10)
Total gains (losses) for assets held
	as of July 2, 2011									$	(8)	$	(32)
Gains (losses) for non-marketable equity
Gains (losses) for property, plant and equipment
	no longer held									$	(19)	$	(45)
Total gains (losses) for recorded non-recurring
	measurement									$	(27)	$	(77)

The following table presents the financial instruments and non-financial assets that were measured and recorded at fair value on a non-recurring basis during the six months endedJune 26, 2010, and the gains (losses) recorded during the three and six months endedJune 26, 2010 on those assets:

										Total Gains		Total Gains
										(Losses) for		(Losses) for
		Net Carrying								Three Months		Six Months
		Value as of		Fair Value Measured and Recorded Using						Ended		Ended
(In Millions)		June 26, 2010		Level 1		Level 2		Level 3		June 26, 2010		June 26, 2010
Non-marketable equity investments		$	126	$	—	$	—	$	130	$	(17)	$	(63)
Total gains (losses) for assets held
	as of June 26, 2010									$	(17)	$	(63)
Gains (losses) for property, plant and equipment
	no longer held									$	(7)	$	(40)
Gains (losses) for non-marketable equity
Total gains (losses) for recorded non-recurring
	measurement									$	(24)	$	(103)

Financial Instruments Not Recorded at Fair Value on a Recurring Basis [Text Block]

We measure the fair value of our non-marketable equity investments, marketable equity method investment, debt carried at amortized cost, and cost method loans receivable quarterly for disclosure purposes; however, they are recorded at fair value only when an impairment charge is recognized. The carrying amounts and fair values of financial instruments not recorded at fair value on a recurring basis as of July 2, 2011 and December 25, 2010 were as follows:

	July 2, 2011				December 25, 2010
	Carrying		Fair		Carrying		Fair
(In Millions)	Amount		Value		Amount		Value
Non-marketable equity investments	$	2,713	$	5,725	$	2,633	$	5,144
Marketable equity method investment	$	34	$	103	$	31	$	167
Loans receivable	$	230	$	230	$	208	$	208
Long-term debt	$	1,962	$	2,204	$	1,949	$	2,283

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Acquisitions

6 Months Ended

Jul. 02, 2011

Acquisitions [Abstract]

Acquisitions

Note 15: Acquisitions

McAfee, Inc.

On February 28, 2011, we completed the acquisition of McAfee by acquiring all issued and outstanding common shares inexchange for cash. The acquired company will continue to operate as McAfee and offer products for endpoint security, system security, consumer security, network security, and risk and compliance. In addition to managing the existing McAfee business, the objective of the acquisition is to accelerate and enhance the combination of hardware and software security solutions, improving the overall security of our platforms.

Total consideration to acquire McAfee was $6.7billion (net of $943 million of cash and cash equivalents acquired) and comprised the following:

(In Millions)
Cash	$	6,652
Share-based awards assumed		48
Total	$	6,700

The allocation of purchase consideration to assets and liabilities is not yet finalized. The preliminary allocation of the purchase price was based upon a preliminary valuation and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are the determination of the tax basis of certain assets and liabilities, the determination of certain tax carry forwards, residual goodwill, and the allocation of goodwill to our reporting units.Reporting units are equivalent to our operating segments. Thepreliminary fair values of the assets acquired and liabilities assumed by major class in the acquisition of McAfee were recognized as follows:

(In Millions)
Marketable debt securities	$	329
Goodwill		4,295
Identified intangible assets		3,552
Deferred tax assets		742
Other assets		417
Deferred income		(1,049)
Deferred tax liabilities		(1,191)
Other liabilities		(395)
Total	$	6,700

The preliminary goodwill of $4.3billion arising from the acquisitionis primarily attributed to the assembled workforce of McAfee and synergies to enable the combination of security and hardware from a single company to protect online devices.Substantially all of the goodwill recognized is not expected to be deductible for tax purposes. For the information on the assignment of preliminary goodwill for the acquisition, see “Note 17: Goodwill.”

The identified intangible assets assumed in the acquisition of McAfee were recognized as follows based upon their fair values as of February 28, 2011:

				Estimated
		Fair Value		Useful Life
		(In Millions)		(In Years)
Developed technology		$	1,221	4
Customer relationships			1,418	2–7
	Total identified intangible assets subject to amortization	$	2,639
In-process research and development			92
Trade names			821
Total identified intangible assets		$	3,552

Acquired developed technology represents the fair values of McAfee products that have reached technological feasibility and are a part of McAfee's product offerings. [Customer relationships represent the fair values of the underlying relationships and agreements with McAfee's customers. In-process research and development represents the fair values of incomplete McAfee research and development projects that had not reached technological feasibility as of the date of acquisition. In thefuture,the fair value of each project at the acquisition date willbe either amortized or impaired depending on whether the project is completed or abandoned. Trade namesare indefinite lived intangible assets and represent the fair values of brand and name recognition associated with the marketing of McAfee's products and services.

Other2011 Acquisitions

During the first half of 2011, in addition to the McAfee acquisition, we completed seven acquisitions qualifying as business combinations in exchange for total consideration of $1.7 billion, substantially all cash consideration.Total net cash consideration to acquire the Wireless Solutions (WLS) business of Infineon Technologies AG, which operates as Intel Mobile Communications (IMC), was $1.4billion. The WLS business offers mobile phone components such as baseband processors, radio frequency transceivers, and power management chips. In addition to managing the existing WLS business, the objective of the acquisition is to provide solutions that enable a broad range of computing applications to have wireless connectivity.

The allocation of purchase consideration to assets and liabilities acquired in the acquisition of the WLS business is not yet finalized. The preliminary allocation of the purchase price was based upon a preliminary valuation and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are the valuation of net tangible assets acquired, residual goodwill, and the allocation of goodwill to ourreporting units. The preliminary fair values of the assets acquired and liabilities assumed by major class in the acquisitions completed during the first half of 2011, excluding McAfee, was allocated as follows:

(In Millions)
Fair value of net tangible assets acquired	$	157
Goodwill		248
Identified intangible assets		1,295
Total	$	1,700

For the information on the assignment of preliminary goodwill for the acquisitions, see “Note 17: Goodwill.”

The identified intangible assets assumed in the acquisitions completed during the first half of 2011, excluding McAfee, were recognized as follows:

				Estimated
		Fair Value		Useful Life
		(In Millions)		(In Years)
Developed technology		$	1,037	3–9
Customer relationships			96	5–8
Other intangible assets			43	2–5
	Total identified intangible assets subject to amortization	$	1,176
In-process research and development			119
Total identified intangible assets		$	1,295

Acquired developed technology represents the fair values of the acquirees' products that have reached technological feasibility and are a part of the acquirees' product lines. [Customer relationships represent the fair values of the underlying relationships and agreements with the acquirees' customers. In-process research and development represents the fair values of incomplete research and development projects that had not reached technological feasibility as of the date of acquisition.

Actual and Pro Forma Results of Acquirees

Net revenue and net income attributable to acquisitions completed during the first half of 2011 have been included in our consolidated condensed statements of income from their respective acquisition dates to the period endedJuly 2, 2011. The acquisitions completed during the first half of 2011 were not individually significant to our consolidated condensed results of operations, however, they were significant in the aggregate. For the three and six months ended July 2, 2011, the results of the businesses acquired in 2011 contributed approximately $1.0 billion and $1.5billion, respectively, to our net revenue and reduced our net income by approximately $50million and$120million, respectively; substantially all of these impacts were attributable to McAfee and Intel Mobile Communications and include the impacts of the amortization of acquired identified intangible assets.

McAfee is a non-reportable operating segment and is aggregated with similar non-reportable operating segments within the software and services operating segments category for segment reporting purposes. Intel Mobile Communications is a non-reportable operating segment and is aggregated with similar non-reportable operating segments within the other Intel architecture operating segments category for segment reporting purposes.For further information, see “Note 27: Operating Segment Information.”

The unaudited pro forma financial results for the three and six months endedJuly 2, 2011 and June 26, 2010 combine the historical results of Intel for the three and six months endedJuly 2, 2011 and June 26, 2010, respectively, along with the historical results of the businesses acquired during the first half of 2011 for the three and six months endedJune 30, 2011 and June 30, 2010, respectively (due to differences in reporting periods). The results include the effects of pro forma adjustments as if businesses acquired in the first half of 2011 were acquired on December 27, 2009.The three and six months endedJune 26, 2010 pro forma results include nonrecurring adjustments of $89 million and $202 million, respectively, which reduce net income due to the revaluation of McAfee's historic deferred revenue to fair value.

The pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisitions. This is presented for informational purposes only and is not indicative of future operations or results that would have been achieved had the acquisitions been completed as of December 27, 2009.

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions, Except Per Share Amounts)	2011		2010		2011		2010
Net revenue	$	13,100	$	11,573	$	26,527	$	22,587
Net income	$	3,014	$	2,778	$	6,198	$	5,082
Diluted earnings per share	$	0.55	$	0.49	$	1.12	$	0.89

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Consolidated Condensed Statements of Income (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Jul. 02, 2011	Jun. 26, 2010
Net revenue	$ 13,032	$ 10,765	$ 25,879	$ 21,064
Cost of sales	5,130	3,530	10,092	7,300
Gross margin	7,902	7,235	15,787	13,764
Research and development	1,986	1,666	3,902	3,230
Marketing, general and administrative	1,905	1,584	3,680	3,098
Operating expenses	3,967	3,254	7,694	6,335
Operating income	3,935	3,981	8,093	7,429
Gains (losses) on equity method investments, net	(66)	76	(108)	37
Gains (losses) on other equity investments, net	41	117	111	125
Interest and other, net	21	11	206	40
Income before taxes	3,931	4,185	8,302	7,631
Provision for taxes	977	1,298	2,188	2,302
Net income	2,954	2,887	6,114	5,329
Basic earnings per common share (in dollars per share)	$ 0.56	$ 0.52	$ 1.14	$ 0.96
Diluted earnings per common share (in dollars per share)	$ 0.54	$ 0.51	$ 1.11	$ 0.94
Cash dividends declared per common share (in dollars per share)	$ 0	$ 0	$ 0.3624	$ 0.3150
Weighted average common shares outstanding:
Basic (shares)	5,294	5,563	5,376	5,546
Diluted (shares)	5,441	5,711	5,527	5,696
Amortization Of Acquisition-Related Intangibles [Member]
Finite-Lived Intangible Assets, Amortization Expense	$ 76	$ 4	$ 112	$ 7

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Available-for-Sale Investments (Tables)

6 Months Ended

Jul. 02, 2011

Available-for-Sale Investments (Tables) [Abstract]

Available-For-Sale Investments [Text Block]

Available-for-sale investments as of July 2, 2011and December 25, 2010 were as follows:

	July 2, 2011								December 25, 2010
			Gross		Gross						Gross		Gross
	Adjusted		Unrealized		Unrealized		Fair		Adjusted		Unrealized		Unrealized		Fair
(In Millions)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Commercial paper	$	3,777	$	—	$	—	$	3,777	$	5,312	$	—	$	—	$	5,312
Government bonds		1,392		1		(1)		1,392		10,075		9		(5)		10,079
Corporate bonds		1,332		13		(3)		1,342		2,250		9		(4)		2,255
Bank deposits		1,155		—		(1)		1,154		1,550		1		—		1,551
Marketable equity securities		334		568		(10)		892		380		629		(1)		1,008
Asset-backed securities		69		—		(10)		59		76		—		(9)		67
Money market fund deposits		550		—		—		550		34		—		—		34
Total available-for-sale
investments	$	8,609	$	582	$	(25)	$	9,166	$	19,677	$	648	$	(19)	$	20,306

Available-For-Sale Debt Investments Contractual Maturities [Text Block]

The amortized cost and fair value of available-for-sale debt investments as of July 2, 2011, by contractual maturity, were as follows:

(In Millions)	Cost		Fair Value
Due in 1 year or less	$	6,726	$	6,724
Due in 1–2 years		643		650
Due in 2–5 years		283		288
Due after 5 years		4		3
Instruments not due at a single maturity date		619		609
Total	$	8,275	$	8,274

Available-For-Sale Investments, Accumulated Other Comprehensive Income Activity [Text Block]

The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in other comprehensive income (loss) and the before-tax net gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings were as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Net unrealized holding gains (losses) included in
other comprehensive income (loss)	$	(12)	$	(17)	$	24	$	134
Net gains (losses) reclassified from accumulated other
comprehensive income (loss) into earnings	$	44	$	7	$	88	$	74

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Comprehensive Income (Tables)

6 Months Ended

Jul. 02, 2011

Comprehensive Income (Tables) [Abstract]

Components Of Total Comprehensive Income [Text Block]

The components of total comprehensive income were as follows:

		Three Months Ended				Six Months Ended
		July 2,		June 26,		July 2,		June 26,
(In Millions)		2011		2010		2011		2010
Net income		$	2,954	$	2,887	$	6,114	$	5,329
Change in net unrealized holding gain (loss) on
	available-for-sale investments		(36)		(16)		(41)		38
Change in deferred tax asset valuation allowance			1		(6)		(14)		28
Change in net unrealized holding gain (loss) on derivatives			(7)		(109)		105		(174)
Change in net prior service cost			—		(40)		—		(40)
Change in actuarial loss			(6)		(12)		(13)		(14)
Change in net foreign currency translation adjustment			33		—		96		—
Total comprehensive income		$	2,939	$	2,704	$	6,247	$	5,167

Components Of Accumulated Other Comprehensive Income (Loss), Net Of Tax [Text Block]

The components of accumulated other comprehensive income, net of tax, at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Accumulated net unrealized holding gain (loss) on available-for-sale investments	$	360	$	401
Accumulated net change in deferred tax asset valuation allowance		189		203
Accumulated net unrealized holding gain (loss) on derivatives		232		127
Accumulated net prior service cost		(36)		(36)
Accumulated net actuarial loss		(375)		(362)
Accumulated net foreign currency translation adjustment		96		—
Total accumulated other comprehensive income (loss)	$	466	$	333

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Equity Method Investments (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended						3 Months Ended		6 Months Ended			6 Months Ended				3 Months Ended
	Jul. 02, 2011	Jun. 26, 2010	Dec. 25, 2010	Jul. 02, 2011 IM Flash Technologies, LLC [Member]	Jul. 02, 2011 SMART Technologies, Inc. [Member]	Dec. 25, 2010 SMART Technologies, Inc. [Member]	Jul. 02, 2011 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jun. 26, 2010 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jul. 02, 2011 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jun. 26, 2010 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Dec. 25, 2010 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jul. 02, 2011 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jun. 26, 2010 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Dec. 25, 2010 IM Flash Technologies, LLC and IM Flash Singapore, LLP [Member]	Jul. 02, 2011 IM Flash Singapore, LLP [Member]	Apr. 02, 2011 Intel-GE Care Innovations, LLC [Member]	Jul. 02, 2011 Intel-GE Care Innovations, LLC [Member]	Jul. 02, 2011 Intel-GE Care Innovations, LLC [Member] Future Funding Required Upon Equity Investee Meeting Established Milestones [Member]
Equity Method Investments Textual Details [Abstract]
Ownership Percentage				49.00%											14.00%
Carrying Value	$ 1,738		$ 1,791		$ 34	$ 31						$ 1,300		$ 1,500			$ 159
Return of equity method investments	113	99										113	99
Percentage of purchase commitment of production output and production-related services				49.00%											43.00%
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	164	0														164
Loss Contingency, Range of Possible Loss, Maximum																		65
Related Party Transactions [Line Items]
Related Party Transactions, Purchases and Production-Related Services							250	190	470	380
Due to Related Parties							$ 110		$ 110		$ 105

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Borrowings (Detail) (2005 Junior Subordinated Convertible Debentures Due 2035 At 2.95% [Member], USD $)	6 Months Ended
	Jul. 02, 2011	Dec. 25, 2010
2005 Junior Subordinated Convertible Debentures Due 2035 At 2.95% [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Dec. 15, 2035
Debt Instrument, Face Amount	$ 1,600,000,000
Principal Amount Per Debenture Used In Conversion Rate	1,000
Conversion rate (shares of common stock per $1,000 principal amount of debentures)	32.94	32.52
Effective conversion price (per share of common stock)	$ 30.36	$ 30.75
Conversion Rate Adjustments, Quarterly Dividend Distributions Excess Per Share	$ 0.10

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Identified Intangible Assets (Tables)

6 Months Ended

Jul. 02, 2011

Identified Intangible Assets (Tables) [Abstract]

Identified Intangible Assets [Text Block]

Identified intangible assets consisted of the following as of July 2, 2011and December 25, 2010:

	July 2, 2011
			Accumulated
(In Millions)	Gross Assets		Amortization		Net
Acquisition-related developed technology	$	2,534	$	(307)	$	2,227
Acquisition-related customer relationships		1,710		(117)		1,593
Acquisition-related trade names		65		(15)		50
Licensed technology		2,331		(620)		1,711
Identified intangible assets subject to amortization	$	6,640	$	(1,059)	$	5,581
Acquisition-related trade names		828		—		828
Other intangible assets		291		—		291
Identified intangible assets not subject to amortization	$	1,119	$	—	$	1,119
Total identified intangible assets	$	7,759	$	(1,059)	$	6,700
	December 25, 2010
			Accumulated
(In Millions)	Gross Assets		Amortization		Net
Acquisition-related developed technology	$	235	$	(97)	$	138
Acquisition-related customer relationships		152		(10)		142
Acquisition-related trade names		46		(10)		36
Licensed technology		1,204		(765)		439
Identified intangible assets subject to amortization	$	1,637	$	(882)	$	755
Other intangible assets		105		—		105
Total identified intangible assets	$	1,742	$	(882)	$	860

Identified Intangible Assets, Amortization Expenses [Text Block]

For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows:

	Three Months Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
(In Millions)	2011		2010		2011		2010
Acquisition-related developed technology	$	137	$	16	$	210	$	32
Licensed technology		43		43		89		85
Cost of sales	$	180	$	59	$	299	$	117
Acquisition-related customer relationships	$	73	$	2	$	107	$	3
Acquisition-related trade names		3		2		5		4
Amortization of acquisition-related intangibles	$	76	$	4	$	112	$	7

Identified Intangible Assets, Future Amortization Expenses [Text Block]

Based on the identified intangible assets that are subject to amortization as of July 2, 2011, we expect future amortization expense to be as follows:

	Remainder
(In Millions)	of 2011		2012		2013		2014		2015
Acquisition-related developed technology	$	271	$	522	$	506	$	487	$	208
Licensed technology		90		171		154		143		125
Cost of sales	$	361	$	693	$	660	$	630	$	333
Acquisition-related customer relationships	$	146	$	284	$	264	$	260	$	250
Acquisition-related trade names		5		10		10		10		9
Amortization of acquisition-related intangibles	$	151	$	294	$	274	$	270	$	259

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Deferred Income (Tables)

6 Months Ended

Jul. 02, 2011

Deferred Income (Tables) [Abstract]

Deferred income by arrangement disclosure [Text Block]

Deferred income at the end of each period was as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Deferred income on shipments of components to distributors	$	759	$	622
Deferred income from software and services operating segments		1,065		125
Current deferred income	$	1,824	$	747
Non-current deferred income from software and services operating segments		361		21
Total deferred income	$	2,185	$	768

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Inventories (Detail) (USD $) In Millions	Jul. 02, 2011	Dec. 25, 2010
Inventories [Abstract]
Raw materials	$ 546	$ 471
Work in process	1,450	1,887
Finished goods	2,034	1,399
Total Inventories	$ 4,030	$ 3,757

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Inventories (Tables)

6 Months Ended

Jul. 02, 2011

Inventories (Tables) [Abstract]

Inventories Table [Text Block]

Inventories at the end of each period were as follows:

	July 2,		Dec. 25,
(In Millions)	2011		2010
Raw materials	$	546	$	471
Work in process		1,450		1,887
Finished goods		2,034		1,399
Total inventories	$	4,030	$	3,757