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

Quarterly report pursuant to Section 13 or 15(d)

Investments

Investments

6 Months Ended

Jun. 26, 2021


Note 7 :			Investments

Debt Investments

Trading Assets

For trading assets still held at the reporting date we recorded net gains of $2 million in the second quarter of 2021 and net losses of $226 million in the first six months of 2021 ($347 million of net gains in the second quarter of 2020 and $183 million of net gains in the first six months of 2020). Net gains on the related derivatives were $23 million in the second quarter of 2021 and net gains of $245 million in the first six months of 2021 ($251 million of net losses in the second quarter of 2020 and $204 million of net losses in the first six 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 June 26, 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 $6.8 billion as of June 26, 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 June 26, 2021, was as follows:


(In Millions)	Fair Value
Due in 1 year or less	$	4,826
Due in 1–2 years	247
Due in 2–5 years	1,015
Due after 5 years	—
Instruments not due at a single maturity date	829
Total	$	6,917

Equity Investments


(In Millions)	Jun 26, 2021		Dec 26, 2020
Marketable equity securities	$	1,615	$	1,830
Non-marketable equity securities	4,023		3,304
Equity method investments	17		18
Total	$	5,655	$	5,152

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


	Three Months Ended				Six Months Ended
(In Millions)	Jun 26, 2021		Jun 27, 2020		Jun 26, 2021		Jun 27, 2020
Ongoing mark-to-market adjustments on marketable equity securities	$	138	$	165	$	(153)	$	62
Observable price adjustments on non-marketable equity securities	72		58		623		137
Impairment charges	(35)		(51)		(73)		(193)
Sale of equity investments and other¹	120		95		266		150
Total gains (losses) on equity investments, net	$	295	$	267	$	663	$	156

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				Six Months Ended
(In Millions)	Jun 26, 2021		Jun 27, 2020		Jun 26, 2021		Jun 27, 2020
Net gains (losses) recognized during the period on equity securities	$	226	$	223	$	537	$	83
Less: Net (gains) losses recognized during the period on equity securities sold during the period	(26)		(55)		(125)		(58)
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	200	$	168	$	412	$	25

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