Quarterly report pursuant to Section 13 or 15(d)

Goodwill

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Goodwill
9 Months Ended
Oct. 01, 2011
Goodwill [Abstract]  
Goodwill [Text Block]

Note 17: Goodwill

 

Goodwill activity for the first nine months of 2011 was as follows:

              Other Intel   Software and          
              Architecture   Services          
  PC Client   Data Center   Operating   Operating          
(In Millions) Group   Group   Segments   Segments   Unallocated   Total
December 25, 2010 $ 2,234   $ 1,459   $ 582   $ 256   $   $ 4,531
Additions due to McAfee acquisition                   4,299     4,299
Additions due to other acquisitions   14     94     177     28     40     353
Transfers   (86)         86            
Effect of exchange rate fluctuations                   (45)     (45)
October 1, 2011 $ 2,162   $ 1,553   $ 845   $ 284   $ 4,294   $ 9,138

During the first quarter of 2011, we formed the Netbook and Tablet Group, which includes microprocessors and related chipsets 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 is unallocated to date. We will use information from our annual planning process, which will be completed later this year, to measure the synergistic value that the McAfee acquisition creates for operating segments other than McAfee. The substantial majority of goodwill recognized from other acquisitions was allocated to Intel Mobile Communications, the Data Center Group, the Ultra-Mobility Group, the Software and Services Group, and the PC Client Group. Intel Mobile Communications and the Ultra-Mobility Group are included in the other Intel architecture operating segments category in the preceding table, while our Software and Services Group is included in the software and services operating segments category. The remaining goodwill from other acquisitions is unallocated to date as we continue to measure the synergistic value that the acquisitions create for our individual operating segments. For further information about our acquisitions during the first nine months of 2011, see “Note 15: Acquisitions.”

 

No goodwill was impaired during the first nine months of 2011 and 2010, and the accumulated impairment losses as of October 1, 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. The accumulated impairment losses as of December 25, 2010 were $713 million: $355 million associated with our PC Client Group, $279 million associated with our Data Center Group, and $79 million associated with other Intel architecture operating segments.