Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 29, 2012
Goodwill [Abstract]  
Goodwill [Text Block]

Note 15: Goodwill


Goodwill activity for the years ended December 29, 2012 and December 31, 2011 was as follows:

              Other Intel   Software and      
              Architecture   Services      
  PC Client   Data Center   Operating   Operating      
(In Millions) Group   Group   Segments   Segments   Total
December 25, 2010 $ 2,234   $ 1,459   $ 582   $ 256   $ 4,531
Additions due to McAfee acquisition   746             3,553     4,299
Additions due to other acquisitions   24     94     176     223     517
Transfers   (86)         86        
Effect of exchange rate fluctuations               (93)     (93)
December 31, 2011 $ 2,918   $ 1,553   $ 844   $ 3,939   $ 9,254
Additions due to other acquisitions   44     286     78     44     452
Impairments           (6)         (6)
Effect of exchange rate fluctuations               10     10
December 29, 2012 $ 2,962   $ 1,839   $ 916   $ 3,993   $ 9,710

We completed the acquisition of McAfee during the first quarter of 2011. The goodwill recognized from this acquisition was allocated between the McAfee operating segment and our PC Client Group based on the relative expected fair value provided by the acquisition, which reflected the estimated synergistic value generated within the PC Client Group from incorporating McAfee's security expertise, reputation, and customer base. The goodwill recognized from our other acquisitions during 2011 was allocated to McAfee, the Software and Services Group, Intel Mobile Communications, the Data Center Group, the Phone Group (formerly the Ultra-Mobility Group), and the PC Client Group. McAfee and the Software and Services Group are included in the software and services operating segments category in the preceding table, while Intel Mobile Communications and the Phone Group are included in the other Intel architecture operating segments category. For further information about our acquisitions during 2011 see “Note 13: Acquisitions.”


During the first quarter of 2011, we formed the Netbook and Tablet Group, which included platforms designed for the netbook and tablet market segments and was included in the other Intel architecture operating segments. Due to the formation of this new operating segment, goodwill was transferred from our PC Client Group to the Netbook and Tablet Group. In 2012, we reorganized and allocated goodwill from the Netbook and Tablet Group into three operating segments: Netbook Group, Tablet Group, and Service Provider Group. These three new operating segments are included in the other Intel architecture operating segments. Additionally, the former Ultra-Mobility Group is now the Phone Group. For further information see “Note 28: Operating Segments and Geographic Information.”


During the fourth quarters of 2012, 2011, and 2010, we completed our annual impairment assessments and we concluded that goodwill was not impaired in any of these years. The accumulated impairment losses as of December 29, 2012 were $719 million: $341 million associated with our PC Client Group, $279 million associated with our Data Center Group, and $99 million associated with other Intel architecture operating segments.