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. 25, 2021


Note 9 :			Investments

Debt Investments

Trading Assets

For trading assets still held at the reporting date, we recorded net losses of $606 million in 2021 (net gains of $694 million in 2020 and net gains of $26 million in 2019). Net gains on the related derivatives were $609 million in 2021 (net losses of $667 million in 2020 and net gains of $22 million in 2019).

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-US government 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 25, 2021 and December 26, 2020, substantially all time deposits were issued by institutions outside the US. The adjusted cost of our available-for-sale investments was $5.0 billion as of December 25, 2021 ($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 values of available-for-sale debt investments by contractual maturity as of December 25, 2021 were as follows:


(In Millions)	Fair Value
Due in 1 year or less	$	2,931
Due in 1–2 years	559
Due in 2–5 years	281
Due after 5 years	—
Instruments not due at a single maturity date	1,216
Total	$	4,987

Equity Investments


(In Millions)	Dec 25, 2021		Dec 26, 2020
Marketable equity securities	$	2,171	$	1,830
Non-marketable equity securities	4,111		3,304
Equity method investments	16		18
Total	$	6,298	$	5,152

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


Years Ended (In Millions)	Dec 25, 2021		Dec 26, 2020		Dec 28, 2019
Ongoing mark-to-market adjustments on marketable equity securities	$	(130)	$	(133)	$	277
Observable price adjustments on non-marketable equity securities	750		176		293
Impairment charges	(154)		(303)		(122)
Sale of equity investments and other 1	2,263		2,164		1,091
Total gains (losses) on equity investments, net	$	2,729	$	1,904	$	1,539

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 our share of equity method investee gains (losses) and distributions.

In 2021, we recognized impairments of $154 million on non-marketable equity securities ($290 million in 2020 and $122 million in 2019).

As of December 25, 2021 the cumulative amount of impairments for equity securities without readily determinable fair value is $916 million and upward observable price adjustments were $1.1 billion.

Net unrealized gains and losses for our marketable and non-marketable equity securities during each period were as follows:



(In Millions)	Dec 25, 2021		Dec 26, 2020		Dec 28, 2019
Net gains (losses) recognized during the period on equity securities	$	1,210	$	1,679	$	734
Less: Net (gains) losses recognized during the period on equity securities sold during the period	(259)		(254)		(424)
Net unrealized gains (losses) recognized during the period on equity securities still held at the reporting date	$	951	$	1,425	$	310

McAfee Corp.

McAfee completed its initial public offering in October 2020. Due to our 41% ownership and significant influence as of December 25, 2021, we account for it as an equity method investment. We had no accounting carrying value as of December 25, 2021 and as of December 26, 2020. During 2021, we recognized McAfee dividends of $1.3 billion, which includes a special dividend of $1.1 billion paid in connection with the sale of McAfee's Enterprise Business to Symphony Technology Group and $228 million related to the partial sale of our investment in McAfee. We recognized McAfee dividends of $126 million in 2020 and $632 million in 2019.

In November 2021, McAfee announced an agreement to be acquired by an investor group, which is subject to closing conditions.

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 December 25, 2021, the net book value of the investment was $1.1 billion ($658 million as of December 26, 2020).