Intel Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Investments

Investments

12 Months Ended

Dec. 30, 2023


Note 9 :			Investments

Short-term Investments

Short-term investments include marketable debt investments in corporate debt, government debt, and financial institution instruments, and are recorded within cash and cash equivalents and short-term investments on the Consolidated Balance Sheets. Government debt includes instruments such as non-US government bills and bonds and US agency securities. Financial institution instruments include instruments issued or managed by financial institutions in various forms, such as commercial paper, fixed- and floating-rate bonds, money market fund deposits, and time deposits. As of December 30, 2023 and December 31, 2022, substantially all time deposits were issued by institutions outside the US.

The fair value of our economically hedged marketable debt investments was $17.1 billion as of December 30, 2023 ($16.2 billion as of December 31, 2022). For hedged investments still held at the reporting date, we recorded net gains of $534 million in 2023 (net losses of $748 million in 2022 and net losses of $606 million in 2021). Net losses on the related derivatives were $472 million in 2023 (net gains of $752 million in 2022 and net gains of $609 million in 2021).

Our remaining unhedged marketable debt investments are reported at fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). The adjusted cost of our unhedged investments was $4.7 billion as of December 30, 2023 ($10.2 billion as of December 31, 2022), which approximated the fair value for these periods.

The fair value of marketable debt investments, by contractual maturity, as of December 30, 2023, was as follows:


(In Millions)	Fair Value
Due in 1 year or less	$	9,575
Due in 1–2 years	2,375
Due in 2–5 years	7,134
Due after 5 years	442
Instruments not due at a single maturity date	2,274
Total	$	21,800

Equity Investments


(In Millions)	Dec 30, 2023		Dec 31, 2022
Marketable equity securities1	$	1,194	$	1,341
Non-marketable equity securities	4,630		4,561
Equity method investments	5		10
Total	$	5,829	$	5,912

1 Over 90% of our marketable equity securities are subject to trading-volume or market-based restrictions, which limit the number of shares we may sell in a specified period of time, impacting our ability to liquidate these investments. The trading volume restrictions generally apply for as long as we own more than 1% of the outstanding shares. Market-based restrictions result from the rules of the respective exchange.

The components of gains (losses) on equity investments, net for each period were as follows:


Years Ended (In Millions)	Dec 30, 2023		Dec 31, 2022		Dec 25, 2021
Ongoing mark-to-market adjustments on marketable equity securities	$	(36)	$	(787)	$	(130)
Observable price adjustments on non-marketable equity securities	17		299		750
Impairment charges	(214)		(190)		(154)
Sale of equity investments and other 1	273		4,946		2,263
Total gains (losses) on equity investments, net	$	40	$	4,268	$	2,729

1 Sale of equity investments and other includes initial fair value adjustments recorded upon a security becoming marketable, realized gains (losses) on sales of non-marketable equity investments and equity method investments, and our share of equity method investee gains (losses) and distributions.

As of December 30, 2023, the cumulative amount of impairments for equity securities without readily determinable fair value was $1.1 billion ($955 million as of December 31, 2022) and upward observable price adjustments were $1.4 billion ($1.4 billion as of December 31, 2022).

Net unrealized gains and losses for our marketable and non-marketable equity securities during each period still held at the reporting date were as follows:



(In Millions)	Dec 30, 2023		Dec 31, 2022		Dec 25, 2021
Net gains (losses) recognized during the period on equity securities	$	19	$	(314)	$	1,210
Less: Net (gains) losses recognized during the period on equity securities sold during the period	(5)		1		(259)
Net unrealized gains (losses) recognized during the period on equity securities still held at the reporting date	$	14	$	(313)	$	951

McAfee Corp.

During 2022, the sale of McAfee's consumer business was completed and we received $4.6 billion in cash for the sale of our remaining share of McAfee, recognizing a $4.6 billion gain in sale of equity investments and other. In 2021, we recognized McAfee dividends of $1.3 billion, which included a special dividend of $1.1 billion paid in connection with the sale of McAfee's enterprise business, and recognized $228 million related to the partial sale of our investment in McAfee.

Beijing Unisoc Technology Ltd.

We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. During 2021, we recognized $471 million in observable price adjustments in our investment in Unisoc and as of December 30, 2023, the net book value of the investment was $1.1 billion ($1.1 billion as of December 31, 2022).