Note 16: Goodwill

Goodwill activity for the years ended December 31, 2011 and December 25, 2010 was as follows:

The goodwill recognized from our acquisitions during 2010 was assigned to our Digital Home Group (combined within the Netbook and Tablet Group in 2011), our Software and Services Group, our Ultra-Mobility Group, our PC Client Group, and our Intelligent Systems Group (formerly known as the Embedded and Communications Group). Our Software and Services Group is included in the software and services operating segments category in the preceding table, while our Netbook and Tablet Group, our Ultra-Mobility Group, and our Intelligent Systems Group are all included in the other Intel architecture operating segments category.

During the first quarter of 2011, we formed the Netbook and Tablet Group, which includes platforms 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 was allocated between the McAfee operating segment and the 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 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 Ultra-Mobility Group are included in the other Intel architecture operating segments category. For further information about our acquisitions during 2011, see “Note 14: Acquisitions.”

During the fourth quarters of 2011, 2010, and 2009, we completed our annual impairment assessments, and impairment tests when necessary, and concluded that goodwill was not impaired in any of these years. The accumulated impairment losses as of December 31, 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.