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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 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.