Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Investments

Investments

9 Months Ended

Sep. 25, 2021


Note 7 :			Investments

Debt Investments

Trading Assets

For trading assets still held at the reporting date we recorded net losses of $144 million in the third quarter of 2021 and $329 million in the first nine months of 2021 ($205 million of net gains in the third quarter of 2020 and $347 million of net gains in the first nine months of 2020). Net gains on the related derivatives were $156 million in the third quarter of 2021 and $346 million in the first nine months of 2021 ($163 million of net losses in the third quarter of 2020 and $334 million of net losses in the first nine months of 2020).

Available-for-Sale Debt Investments

Available-for-sale investments include corporate debt, government debt, and financial institution instruments. Government debt includes instruments such as non-U.S. government bonds and U.S. 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 September 25, 2021 and December 26, 2020, substantially all time deposits were issued by institutions outside the U.S. The adjusted cost of our available-for-sale investments was $10.8 billion as of September 25, 2021 and $7.8 billion as of December 26, 2020. The adjusted cost of our available-for-sale investments approximated the fair value for these periods.

The fair value of available-for-sale debt investments, by contractual maturity, as of September 25, 2021, was as follows:


(In Millions)	Fair Value
Due in 1 year or less	$	7,823
Due in 1–2 years	631
Due in 2–5 years	322
Due after 5 years	—
Instruments not due at a single maturity date	2,035
Total	$	10,811

Equity Investments


(In Millions)	Sep 25, 2021		Dec 26, 2020
Marketable equity securities	$	2,064	$	1,830
Non-marketable equity securities	3,970		3,304
Equity method investments	16		18
Total	$	6,050	$	5,152

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


	Three Months Ended				Nine Months Ended
(In Millions)	Sep 25, 2021		Sep 26, 2020		Sep 25, 2021		Sep 26, 2020
Ongoing mark-to-market adjustments on marketable equity securities	$	(192)	$	(146)	$	(345)	$	(84)
Observable price adjustments on non-marketable equity securities	79		5		702		142
Impairment charges	(38)		(40)		(111)		(233)
Sale of equity investments and other¹	1,858		237		2,124		387
Total gains (losses) on equity investments, net	$	1,707	$	56	$	2,370	$	212

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

Gains and losses for our marketable and non-marketable equity securities for each period were as follows:


	Three Months Ended				Nine Months Ended
(In Millions)	Sep 25, 2021		Sep 26, 2020		Sep 25, 2021		Sep 26, 2020
Net gains (losses) recognized during the period on equity securities	$	346	$	19	$	883	$	102
Less: Net (gains) losses recognized during the period on equity securities sold during the period	(46)		(12)		(189)		(87)
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	300	$	7	$	694	$	15

Sale of equity investments and other during the third quarter of 2021 includes $447 million of initial fair value adjustments related to four companies that went public, and a McAfee special dividend of $1.1 billion paid in connection with the sale of McAfee's Enterprise Business to Symphony Technology Group.

Beijing Unisoc Technology Ltd.

We account for our interest in Beijing Unisoc Technology Ltd. (Unisoc) as a non-marketable equity security. In the first quarter of 2021, we recognized $471 million in observable price adjustments in our investment in Unisoc and as of September 25, 2021, the net book value of the investment was $1.1 billion ($658 million as of December 26, 2020).