Consolidated Balance Sheet (page 76),

Consolidated Statement of Cash Flows (page 77),

Note 2 Accounting Polices (starts on page 81),

Note 7: Other Financial Statement Details (page 94)

Note 11: Acquisitions and Diverstitures (page 100)

Note 12: Goodwill (Page 102)

Note 13: Identifiable Intangible Assets (page 103-104).

1. As of December 29, 2018, how much had Intel originally paid for their tangible property, plant & equipment?

1. 2. Answer the three questions below. a. As of December 29, 2018, how much had Intel depreciated to date on their tangible property, plant and equipment?
2. b. How does Intel calculate depreciation?
3. c. What was the current year depreciation expense recorded by Intel? (Hint: you will need the statement of cash flows to find depreciation expense.)

3. Calculate the percent-depreciated ratio as of December 29, 2018 and December 30, 2017 using the formula on page 385/386 of the textbook. Discuss what this tells you about Intels long-term operating assets.

4. Answer the two questions below: a. Using the statement of cash flows, determine the amount of property, plant and equipment acquired during 2016, 2017, and 2018. b. Compare the depreciation expense for each year to the PP&E acquisitions (capital expenditures) for the same period. What does the comparison indicate?

5. What types of intangibles does Intel report? Are they amortized? If so, how is the estimated useful life determined?

6. Answer the three questions below: a. Does Intel carry any goodwill? b. If so, what event(s) resulted in Intel recording goodwill? c. Describe the causes of the change in goodwill during 2017 and 2018.

CONSOLIDATED BALANCE SHEETS Dec 29, 2018 Dec 30 2017 n Millions, Exoept Par Value) Assets Cunent aeeta Cash and cah equlvaients 3019 3433 Shon-em investrents 2788 1,814 Trading ass 5,843 8755 Accounts receivable, net of allowance for doubdul accounts of $33 (325 in 2017) 6,722 5e07 Inventories 7253 e083 Oher curent assets 3162 2908 20.500 Total eurrent assets 28,787 41.109 Property, plant and equipment net 48976 Equity investments 6,0425 8570 other long-term investments 3,388 3712 Goodwill 24,513 24.380 ldenfied Intangible sts, n 11,838 12745 Other long-term assets 4421 3215 Tolal assats 127,063 123,240 Liabilities, temporary equity, and stockholders equity Cunent isbilles 1,281 Shon-lem debt 1,778 Accounts payabie 3824 2928 Accrued compersadon and benefts s622 3526 Daferred inoome 1,856 Oher accrued liabities 7,01 16,626 7.535 Total current liabities 17.421 Debt 25,008 25037 Contract liabilies 2040 Income taxes payable, non-current 4807 4080 Deferred income taxes 1665 3046 other long-term liablities 2646 3791 Commitments and Contingencies (Note 21) Temporary equity Steckholders quity 888 419 Prefened stock, s0.001 par vaue, 50 shares authofzed none issued Common stock, s0.001 par value, 10,000 shares authorized 4,518shares iued and oustanding (4,687 isued and outstanding in 2017) and capital in cess of par value 25.385 28.074 882 Accumulated other comprahensive income loss) (074) Retined eaming 50,1725 42083 ea019 Total stockhokders quity 74 563 127,63 123.240 Total llabilities, temporary equity, and stockholders' equity See accompanying nates. CONSOLIDATED STATEMENTS OF CASH FLOWS Yeara Ended On Millons Cash and eash equivalents, begining of period Dec 29 2018 Dec 30 2017 Dec 31, 2016 6.580 3.433 15.308 Csh fows provided by (used for) operaing activities: Net income 21,053 9601 10318 Adjustmants to recandle net income to met cash provided by aperaing activises: Depreciation 8268 7520 8752 Share-bedcompansdon Amortion of intangibies Gain) losses on equity investmens, net 1,548 1,358 1,444 1.565 1,377 1524 155 (2583) (432) Loss on debt convarsion and angishment 280 478 Gain) losses on divesttures (407) (387) (1,740) Deferred tces 1,548 253 Changes in asses and bite (1,714) (214 (781) Accounts receivble Imventories (1.300M 115 182 211 191 Accounts paysble Accued compension and bernet (280) 311 29 Customer deposits and prepaid supply agreament 1387 1,105 148 5230 1382 Income tas paysble nd receivable 41 788% Other sets nd isbtes 394 Tobl adustment 8379 29.432 12 509 11.402 21808 Net cash provided by operating activities 22.110 Csh fows provided by (used for) investing actvites: Addions to property, plant and equipmant (15,181) (11,778) 9825) Acquitons, nat of cash acquired ( (14,49 (15,470) (9289) (2748) Purchses of aalsble-lor-sale debt investmens (3,843) s af availble-ar-aale debt investments 195 1,833 2,847 Mtues of welble-daae debt inestment 2968 3887 5854 Purchases of treding sse 503) (13700 (1223 Mausand sales of trading se 12,111 13970 10.88 Purchases of equity invetments (874) 2802 (1,81 (983) Ses of equity investments 5,238 1080 Proceads from diveure 548 3,124 (272) 1268 ceer inveing 730 Net cash used for invesdng activites (11,230) (15,782) (25,817) Csh fows provided by (used for) financing activites: Incresse (decrese) in short-tarm debt, net 480 (15) 423 7.718 2,734 ssuance of lang-erm debt, net of snce cost Repayment of debt and debt comvension (3,028) 555 (8080) (1.500) Proceads from ssies of comman tock through employes equity incentivee plans T70 1.108 (10.730) (3815 Repurchse of cmmon stock 2587) Payment of dividends to stockholders (5,541) (5,072) (4.925 ceer financng Net cash provided by used for) fnancing actvites Net inerease (decrease) In cash and cash equlvalents Cash and cash equivalents, and of period 48) (18.807) 04140 (208w (554) (5.730) B,475) 2.127) 9748) 6,50 3.0198 3433 Supplemantal disciosures Acquiiton of praperty, plant and equipment indluded in sccounts payable and scrued Bbises 2340 1,417 979 Non-markeable equity invetment in MoAlee tom dvestiure 1,078 Cash paid during the year for Interest, net of capitalced interest e24 682 448 Income ta net of refunds 3813 $ s24 NOTE 2: ACCOUNTING POLICIES REVENUE RECOGNITION We recognize net product revanus when we saty performance obligtions evidenced by the transfer af contral of our products or services to customers Subetanaly aof our revenue is derived from product sales. In sccordance with contract term revenue for product sales is recognied at the Sme of product thet ilowed for price protecdons or right of retum unt the ctbutor sold through the merchandse, we defamed product revanue and reied cows of sales. We include shipping charges billed to customars in net revanue, nd include the reluted shipping coss in cost of sales We measure revenue besed on the amount af consideration we expect to be anied to in euchange for products or sarvices Variable considenadon is estimated and reected an adjustment to the trnsaction price. We detrmine vasble comsidention, which cosists primarly af various sales price concessions, by evdmating the most likly amount of consideration we expect to receive from the customer besed on historicl anysis of cuatomar purchese volumes Sals rebtes emed by customers are offet agaist thair receivable baiances Rebates eamed by customers whan they do not have outnding recaivable balences ecorded within oher accrued ibilities. The impacts of distibutor sales price reductionsresulng from price protection agreemants se aso edmted bsed an hitorical analyis of such actvity and are retected s areduction in net revanue We make paymants to our customers through cooparative advertising programs for markatng activides for certain of our products. We general ly record the payment as a reduction in reverue in the period that the revenue is med, unless the payment is for a didinct senice, which we record s apense when the marketing actvies occur. During the second half of 2017, we transitioned customers trom previous offerings under the Intel Inside program to cooperatve adverting offerings more sailored to customas and their marketing sudences. These cooperative advertising costs ae recorded a reduction of revenue begiening in the second haif of 2017, a we no longer meet the arfteris for recording these sn expense INVENTORIES We compute inventory cost on a first-in, frst-out basis Our process and product development life cycle comesponda with substentive engineering milestones These enginsering miestones are reglely and consistenty applied in sssessing the point st which our activises and socisted costs change in ure from reserch and development (R&D) to cost of ss, and when cot of sales can be cepitized s inventory For a product to be mnufctured in high volumes and sold to our customers under our astarnderd wamnty, it mut meet our igorous technical quality out products are induded in the valustion of inventary. Priar to PRQ costa that do mot meet the areria for R&D are included in cost of sales in the period incured the point at which we estmate thet inventory meets PRO ere changes in the ture, the sming and recognition of costs wouid shit between R&D ieventory, and costs of sales. A single PRQ ha previoualy nanged up to $770 illion and is depandent on product type The valustion of imventary includes determining which foed production overheed costs can be indluded in inventory besed on the normal capacity of our manufecturing and sambly and test ficities. We spply our historical loadings compared to our totl aille cacity in a sical model to determine our normal capacity level. If the fctory losdings are below the ebihed nomal capacity level, a porton af our foed production overhead costs would not be included in the cost of inventory, instead, it would be recognied as cost of saies in that period We refer to these costs s acess capadty charges. Excess capacity charpes ae insignificant in the years preserted. Charges in certain priar years have ranged from $48 milion to $1.1 billian. The high end of the range would be $540 milion when exdluding the $1.1 billon chage tacan in connection with the 2009 conomic recession Invantory is vlued at the lowar of cost or met realble valus, besed upon sumpions about future demand snd market condisons Product-pecific fects and droumatnces reviewed in the imventory valuon process include aeviw of our customer bese, the stage of the product e cycle, and n sessmant of saling price in raition to product cost Inventory reserves increased by pprodmately $295 million in 2018 compaed to 2017 The valution of inventary wso requires us to exdmate obsolete and exces inventory, s wel am inventory that is nat of saiesble quality. We use the demand forecast to develop our ahort-em manufcturing plans to ansble consiency between imventory valuors and build decsions We compare the estmate of future demand to work in process and frished goods invantory levels to determine the amount, if any, of obeolete or excess inventory. If aour demend forecest for specific products is grester an ctul demand and we fel to reduce manfacturing output sccordingy, we could be required to wite offinventory PROPERTY, PLANT AND EQUIPMENT We compute deprecistion using the siwight-ine method over the imaed useful life of asses We so capitalze interest on borowings relsted to eligbie capal epandtures Cepitaed intereat is added to the cost of quaifed sets and depreciated together wih that asset cost We record capite-reltec government grants earmed sareduction to proparty, plant and equipment Annualy, we avaluste the pariod over which we axpect to recover the economic value of our property, plant nd equipment, considering factors such the process technology cadence bebween node tritons, changes in machinary and equipmert technology, and re-as of machinary and toals across each genaration of process technology. As we make menufecturing process comversions and oher factory plarning decisions, we use sumptons involving the use af management judgmants regarding the remaining usetul lives af sssebs, primarily processspecite samiconductor manufacturing toos and building improvements When we determine that the uset lives of ssets are shorter or langer than we had ariginaly estmated, we adjuat the nete of deprecistion to reect the assea revised usetal lives Assats ae grouped and evalusted for impaimant st the lowet level of identfiable cash fows. We asess property, pant and equipment for impaiment when avents or changes in circumatnces indicte that the caying value of the asets or the sset grouping may not be recoverable. Fctors that we consider in deciding whan to perform an impairment reviaw include significant undar-performance of a business or product line in reludon to expectations, significant negative indusiry or economic trends, and signfcant changes or pianned changes in our use of the ssss We messure the recoverability of se that w will continue to use in our opertions by comparing the carying ue of the asset grouping to our etimate of the reled totl ture undiscounted net cash fows wing from the use of that sset grouping an sst grouping camying vaus is not recoverable trough the related undiscounted cash fows, the asset grouping is considered to be impaired. We measure the impairment by comparing the diference beteeen the set grouping camying value and its rvlue We may have certain facities, incuded within constucion in progress, being held in a sale sn nd nat curranty in use that we plan to place into service at WE are in the transition of products an our rosdmap. Management maks judgmants sbout te iming of when these facites wil be readiaed for their intended use d plced into service for the manuctuing of our products. Depreciation is not recogriced on these ssts and tey ae net eligble for capibalzed interest when construction is on hold FAIR VALUE Whan datarnining fair valce, we conaider the principal or most acvanageous market in which we would tansact wel umptons that markat participants would use when pricing the set or lability. our financial ts are mesured and recorded st fair vlue on arecuring besis, encept for equity securises messured using he messurement aematve, equity method investmants, cot method loas receivabe, grnts recaivble, and reverse repurcha agreaments wth original maurises greater than three month We ssess fir vae herrchy levais for our issued debt and fandincome investment portolio based on the underlying instrument type The three levels of inpus that may be used to messure fir value are Level 1. Quoted prices in ctive markats for idendcal s or libilises. We evalute security-specific market deta when determining whether a market is Level 2. Cbsarvable inputs cher than Level 1 prices, such quoted prices for similer sets or lisbilises, quoted prices in less actve markets, or model derived valutions All significant inputs used in our valuations, such s discounted cash fows, are observable or can be derived principaly from ar comoborted with obsarvable markat de for substantaly the fall erm of the ets or ibiles We use LIBORd yeld curves, currency spat and forward ntes, and aredit ndngs s signiicat inputs in our valuadons Leval 2 inputs lso include non-binding market consensus prices, mwell quoted prices thet ware sdjuated for secuity-apecife restictions When we use non-binding market consansus prices, we comrobonate them with quoted market Level 3. Uncbservable inpus to the valution methodology that re signiicant to the mesurement of the far value of asses or liblises. We moritar nd reviaw the irputs and results of these valuation modeis to help ensure he fr value mesurements are reascnable and consistent with markat exparience in srt ss Lavel 3 inputs sso incdude non-binding marlkat comsersus prices or non-binding broker quotes that we were unsble to comobonate with absarvable market dt DEBT INVESTMENTS We comaider allhighly liuid debt investments with arigil mtes trom te dete of purchase of three months or less a csh equivalents Ch equivaents can indlude investments such as corporate deb, finandial instution instruments, govemment debt, and reverse repurchese agreemants Markatable debt investmnts re generaly designated an treding asets when a market iskis economicaly hedged t inception with a related derivatve instrumant, or when the marketable debt investment self is used to economicaly hedge currency eschange ne risk from remeurement Invesments designated as trading ts are reported st f vlu. Gains or loses on these invetments wriing from changes in fair vlue due to interest re nd curency markst fuctuations and aredit markat voletity, lrgely offset by losses or gains on the reited derivadve instruments and balance sheet remessurement, recorded in interest and oher, net Marketble debt investmants are considered availble-far-aale investments when the interest re snd foreign cumency risls are not hedged at the inception of the investment or when our crteria for designon s trading ws are not met Available-a-ale debt imvestmena with ariginal matuites of spprodmataly three months ar less from the de of purchs are cied within cash and cash equivaierts Available-for- debt invastments wih original maturies at the dats of purchase greater tan sppraimately three months and remaning maturites of less than one year are cassifed s shar-irm invetments Available-for saie debt investmants wh remining mturides beyond ane year are classifed as other lang-erm investments Availsble-for-sale dabt invesments are reparted t fair value, with unreazed gains or losses, net of recorded in aCumuated oher comprehansive income (oss) We determine te cost of the investment sold based on an avarage coat besis set the individual security level, and record the interest income and reazed gas or losses on the sale of these imvestments in interest and other, net Our available-for-sale debt investments re subject to parodic impaimant reviews For these investments, we consider whether it is more likaly tan not that we wil be required to sal te invement bafare recovery of its martized cot basis, or whether recovery af the antre amartced cot basis of the investmant is unlikaly because a credt loss exits Whan we do not espact to recover the entire amortired cost besis of the investment we separate othar-an-amponary impairments into amounts representing aredt lowses, which are recogriced in interest and oher, net, and amounts not reied to credit losses, which are recognized in other comprehensive inceme (loss EQUITY INVESTMENTS We regularly invest in equity securises of public and private companies to promcte business and strategic objectives Equity inestments are messured and recorded s follows Markeble equity securises are equity securities with readily determinable fir value (RDFV) re mesured and recorded at ir value on a recuring basis with changes in tervlue, whether rezed or unrealred, recorded through the income sttement Prior to 2018, these securises were clssifed i wble-for-esecurites snd mesured and recorded at fair value with unreared changes in fir value recorded through other compreahansive income Non-markatble equty securites are equity securibes without RDFV thet are mesured and recorded using a messurement mtve that mesures the scurises at cost mins impaiment, ay, plus or minus changes resuting from qualitying obeervable price changes. Prior to facal 2018, these securities were sccounted for using the cost method of wccounting, meured t cot less other-than-emponry impairmernt Equity method investments are equty securities in investees we do net control but over which we have the sbility to eercise significat infuance. Equity method investments e mesured t cost inus imparment ifany, plus or minus our share of equity method investeo income or loss Our proportionats share of the income ar loss from oquity method investments is recogniced on a one-quater lag Realized and unreazed gairs and losses resulng from changes in fair value or the sale of our equity investments are recorded in gans (osses) on equity investmants, net Pior to 2018, we recorded unrealced gains and losses through other comprehensive income (los) and realced gairs and losses on the sale ahange, or impairment of these equity invesments through gains(loss) an equity invesients, net. The camying vailue of our non-markaie equty securies is adusted for qualitying observabile price changs reulting fom the issuance of simr or identcal seutes by the same issuer. Detarining whether an observed transaction is simlr to a security within our portolo requires judgment besed on the rights and preferences of the securites Recording upward and dowmwd adjustments to the camying value of our equity securites s a reut of observable price changes requires quantttve essments of the f value of our securises using various valuation methodologies and invalves the use of esdmates Non-marketabie equity securises and equity method invesimentis (col lectively referred to as non-markatabile equity investmenta) are iso subject to periode impairment reviews Our quarty impaiment anlyis considers both qualitive and quanttve factors that may have a signifcant impact on the invetee's far vaus. Qualbtive factors considered include the investe's iandial candition and business autlook, industry and sector parfarmancs, market for technology aperational and Sancing csh flow actvites, and other relevnt events and factorsecting the investne. When indicators of impairment exist, we prepars quanttatve ssaments of the fair value of our non-markatable equity investments using both the markat and income spproaches, which require judgment and the use of estmates, indluding discount nates, investe revenue and costs, and comparable markat dets of private and puble companies, among others NOTE 7 OTHER FINANCIAL STATEMENT DETAILS INVENTORIES Dec 29, 2018 813 Dec 30, 2017 in Millions) Rw maes 738 Work in process 4,511 4213 Finished goeds 1,29 2032 7,253 6,983 Total Inventorles PROPERTY, PLANT AND EQUIPMENT Dec 2, 2018 Dec 30, n Milliona) Land and buildings 2017 30,054 27301 Machinery and equipment 8721 57,192 Conructon in pregres 18843 15812 114318 100,36 Total property, plant and equipment gross Leas wccumusted deprecietion 5342 50288 48976 41,00 Total property, plant and equipment, net Subtandaly of our deprecibile property, plant and equipment sts ware depreciated over the following estimated usefu ives machinery and equipme nt, 2 to 5 years, and buidings, 10 to 30 y ears Net property, plant and equipment by county t the end of each pariod was tolow Dec 29, 2018 Dec 30, Dec 31, 2016 n Millions) 2017 United Swes 27512 24,45 23,506 8,881 ,501 323 Isra Chins 6417 4275 2308 and 3947 3,938 485 cer countries 2239 1,38 1479 ,976 41,10 38,171 Total property, plant and equipment, net OTHER ACCRUED LIABILITIES ceer scued liabilies indude defemed compensaion of $1.7 bilin as of December 29, 2018($1.7billon md December 30, 2017) ADVERTISING Advertsing cos, including drect marketing, recorded within marketing general and administative (MGSA)peses ware $12 bllion in 2018 ($1.4 bilion in 2017 and $1.8 bln in 2010) INTEREST AND OTHER, NET The companents of interest and other, net for esch period were s follows Years Ended Dec 2 2018 438 Dec 30, 2017 Dec 31, 2016 n Milons) Interest income 441 222 Intert pense (468) 48) ceat 158 (192) (144) 126 40) Total Iinterest and other, net Interest expense in the preceding tbie is net of $4 millin of interest captaized in 2018 ($313 mion in 2017 and $135 mion in 2018) NOTE 11: ACQUISITIONS AND DIVESTITURES ACQUISITIONS During 2018, we completed Sve acquisitions qualying business combiniona that were not matel to our operatons During 2017, in addion to the Mobilaye acquisition shown belaw, we completed two acquisitions qualitying business combinations During 2018, we scquired Alters for $14.5 billion, and, in addison, completed 11 squiaions qualitying business combinations for aggregate considendon of $1.1 billion. ceer acquisitions completed in 2018, 2017, and 2016, beth individualy and in the aggregatn, were not significant to our reus of operations, and subsiantialy of the consideration, which primarily consisted of cash, was octed to goodwill and idenfhble intangible asses Far informaion on the asignment of goodwill to our operatingsegments, see Note 12: Geodwill,and for information on the cleification of intngbie t see Note 13 ldentified Intangible A Mobleye Aa of August 21, 2017, upon the completion of our tender offer, we cqured 07.3% of the outstanding ardinary shares of Mobleyn, a gobal eader in the diving This acquisiton combines Mabileye's leading computer vision expertise with Intel's high-performance computing and connectivity expartse to crea wtomated driving soltons from car to cloud. The combinad on is expected to sccelerate innovdion for the wutomatve industry and positan Intel leading echnology provider in the fi-growing markeat for highly and tuly tonomous vehides. The transscton aso actands Intel's stgy to inest in dats-intensive market opportunises that build on our strenghs in computing and conmectivity from the cloud, through the natwork, to the device. We acquired the remaining 27% of Mobleye sheres in April 2018. Tol conaiderdon to acquire Mobileye was $14.9 biion (net of $388 millon of cash and cah equivlents cquired), of which $14.5 billion was paid in 2017 and the remainder in 2018 The fir values of the sets acquired and isbilies asumed in the acquisition of Mobileye, by major dess, were recegnized em follow n Mllons) Short-am invetmen nd marketable securises 370 Tangbie sets 227 Goodwil 10,283 Identified intangibie assts 442 Curent lisbilises Deferred tex abies and other (418) 1487 Total We ssumed outstanding unvested Mableye stock optons and RSUs granted undeer two Mobileye equity plans We will not gnt addsonal equty wrds under these two Mobileys equity plans In consection with the acquisition, we recogniced share-based compensation expense of $71 million for csh-sted wards Goodwil of $10.3bln arsing from the scquisition is buted to the expected smergies and other benefts that wil be ganerted trom the combination of Inte ed Mobleye Sutetantily of the goodwllrecogniced is net espected to be deducole for t purposs The goodwll recogniced trom the scquisiion i included within "l other The identfed intangible asts umed in the sequiation of Mobileye were recognized as foliows Welghted Average Estimated Usetul u n Years) Fair Value On Millions) 2348 Developed technologyY Customer retionships and brands 3,123 ldentified Intangible assets subject to amortization 1,3 1,30 4482 In-process resesrch and development Identifed Intangible assets not subject to amortization Total Identified Intangible assets DIVESTITURES Wind River Sycteme, Ina. (Wind Rlver) During the second quarter of 201, we completed the divestiture of Wnd Rver and recegnized a pre- pn of $404 million Intel Seourty Group On Apil 3, 2017, we closed the trarsecdon wih TPG VI Manta Holding, LP., now known Mants Holdings, LP. (TPG) tsfering certain ssets and abilises relating to 1SecG to a newty formad, jointly owned, separats cybarsecurity company clled McAlee Totl conidendon received ws $4.2 billion,comisting of $24 milon in csh proceeds, $1.1 billion in the form of equity represanting a40% ownanhip interest in McAee, and $22 bllion in the form of promsory notes isued by McAlee and TPG During the tird quarter of 2017, McAee and TPGrepaid he $22 billion af promissory notes, which are indluded within proceeds from divesure The carying amounts of the major clesses of 1SecG ts and lisbilites a of the transaction dose dete induded the folowing Apr 1, 2017 317 in Millons) Accounts receivble Goodwl 3,801 Identifed intangible asets 9e5 ceer aes 278 6,150 Total assets Deferred income 1,553 ceer iabilses 278 Total Babitles s29 As of the trasacdon close dee, we recognized a pre-bex gain of $387 millian within Teterest and other, net" which is net of $507 milon of cumency transistion adjustment losses recsifed trom accumulated other comprehensive income (lo) aociated with cumency charges on the carying values of SecG goodwill nd identfed intangible asse In addition, we recagnized a b experse of $822 milion NOTE 12: GOODWILL Goodwill actvity for ech period was s folow Dec 30 2017 Dec 2, 2018 440 n MIllions) Clnt Computing Group Acquaions Transers other 4,35 Dets Center Group 5,421 5,424 Intermet of Things Group 1,128 (43) 1,579 2400 Programmable Soluion Group 2579 All oer 10,0 (480) 10,528 24513 24,389 182 Total Dec 31, 2016 Dec 30, 2017 4358 Acquisions Transrs n Millions) Other Clent Computing Group 4,35 Oets Center Group 5412 5421 Intemet of Things Greup 1,123 1,12 Programmable Soluiona Group 2400 2,400 Al oer 718 10278 10,8 14,000 10,200 24380 Total During the tird quarter of 2018, we made an oranialange to combine our tfice inteligence invesment in edge computing wh OTa crdingl. ppraeimately $480 million of goodwill ws redlocated from ll other to the IOTG opentingg segmant During the fourth quarters of 2018,2017, and 2018, we completed our annual impaiment sessmants and we concluded that goodwill was not impaired in any af these years. The accumulted impaiment losses s of December 29, 2018 were $719 million: $385 mllion ocited with CCG, $275 millian ssociated with oca, nd $79 ion associaled with IOTG NOTE 13: IDENTIFIED INTANGIBLE ASSETS December 2, 2018 Gross Accumulated In Millons) Aquitiond develioped technolegy Aasets Amortization Net 9811 021) .500 Acquation-elted austomer relationships and brands 2,179 (527 1,852 Licensed technolegy and patents 292 1,52 9,768 1,407 (1408) (4.054) Identifed Intanglble assets subject to amortiza Bion 14,722 In-process research nd development ceer intangble assets 571 571 2,068 2,068 16,700 Identfied Intangible assets not subject to amortization (4.954) Total ldentfed Indanglible assets December 30, 2017 Gross Accumulated Amortizatlon n Millons) Aasets Net 8912 Acquitioneed developed techndlogy 1,822) 0 Acquation-elted austomer relationships and brands 2,95 342 1,853 Licensed technology and patents 3,104 14,211 2,168 2188 18,37 1,30 634 1,734 10,577 2,168 2188 12,746 dentfed Intangible asseta subject to amortizaBion In-process reserch and development Identifed Intangible assets not subject to amortication R634 Total Identifed Intarngible assets dentfied intangble aets subject to amortcation recorded for each period and ther respective estimated weighted verage usefal ives were s folow December 2, 2018 Estmated Useful December 30, 2017 Estimated Useful LUN n Yeara) Gross Gross Assets LN n Years) Assets n Mllions) 2346 n Milliona) Acquition-eled deveioped technology 35 Acquiition-eied customer reletionahips and brand Licensed technology and patents 182 Amortition expanses recorded for identifed intengible sssets in the consolidaded statements of income for each period and the estmated useful ife ranges were s folows Esdmated Years Ended Dec 2 2018 Dec 30, 2017 Dec 31, 2016 Usetal Lfe Range In Yeara) n Millions) Location Acqutioneed deveoped echnalogy Coat of sles 1,105 912 s37 5-11 Amartation of acquisiton-eisted Intangbies Acquation-elted austomer rohips and brands 17 24 812 Licensed technolegy and paents Cost of sas 280 288 293 2- 17 1,377 $ 1,565 1,824 Total amertiaadon expenses We xpect future amortzation expense for the net five yeurs to be m follows n Millions) 2020 2021 2022 2023 201 Acquisition-eied developed technlegy 1,047 1,114 1,0e2 1,008 1,005 200 199 199 177 173 Acquaition-elted customer relationahips and brands Licensed technology and patents 240 218 204 198 130 1,381 Total fture amortzation expanses 1,63 1,409 1,450 1,317 CONSOLIDATED BALANCE SHEETS Dec 29, 2018 Dec 30 2017 n Millions, Exoept Par Value) Assets Cunent aeeta Cash and cah equlvaients 3019 3433 Shon-em investrents 2788 1,814 Trading ass 5,843 8755 Accounts receivable, net of allowance for doubdul accounts of $33 (325 in 2017) 6,722 5e07 Inventories 7253 e083 Oher curent assets 3162 2908 20.500 Total eurrent assets 28,787 41.109 Property, plant and equipment net 48976 Equity investments 6,0425 8570 other long-term investments 3,388 3712 Goodwill 24,513 24.380 ldenfied Intangible sts, n 11,838 12745 Other long-term assets 4421 3215 Tolal assats 127,063 123,240 Liabilities, temporary equity, and stockholders equity Cunent isbilles 1,281 Shon-lem debt 1,778 Accounts payabie 3824 2928 Accrued compersadon and benefts s622 3526 Daferred inoome 1,856 Oher accrued liabities 7,01 16,626 7.535 Total current liabities 17.421 Debt 25,008 25037 Contract liabilies 2040 Income taxes payable, non-current 4807 4080 Deferred income taxes 1665 3046 other long-term liablities 2646 3791 Commitments and Contingencies (Note 21) Temporary equity Steckholders quity 888 419 Prefened stock, s0.001 par vaue, 50 shares authofzed none issued Common stock, s0.001 par value, 10,000 shares authorized 4,518shares iued and oustanding (4,687 isued and outstanding in 2017) and capital in cess of par value 25.385 28.074 882 Accumulated other comprahensive income loss) (074) Retined eaming 50,1725 42083 ea019 Total stockhokders quity 74 563 127,63 123.240 Total llabilities, temporary equity, and stockholders' equity See accompanying nates. CONSOLIDATED STATEMENTS OF CASH FLOWS Yeara Ended On Millons Cash and eash equivalents, begining of period Dec 29 2018 Dec 30 2017 Dec 31, 2016 6.580 3.433 15.308 Csh fows provided by (used for) operaing activities: Net income 21,053 9601 10318 Adjustmants to recandle net income to met cash provided by aperaing activises: Depreciation 8268 7520 8752 Share-bedcompansdon Amortion of intangibies Gain) losses on equity investmens, net 1,548 1,358 1,444 1.565 1,377 1524 155 (2583) (432) Loss on debt convarsion and angishment 280 478 Gain) losses on divesttures (407) (387) (1,740) Deferred tces 1,548 253 Changes in asses and bite (1,714) (214 (781) Accounts receivble Imventories (1.300M 115 182 211 191 Accounts paysble Accued compension and bernet (280) 311 29 Customer deposits and prepaid supply agreament 1387 1,105 148 5230 1382 Income tas paysble nd receivable 41 788% Other sets nd isbtes 394 Tobl adustment 8379 29.432 12 509 11.402 21808 Net cash provided by operating activities 22.110 Csh fows provided by (used for) investing actvites: Addions to property, plant and equipmant (15,181) (11,778) 9825) Acquitons, nat of cash acquired ( (14,49 (15,470) (9289) (2748) Purchses of aalsble-lor-sale debt investmens (3,843) s af availble-ar-aale debt investments 195 1,833 2,847 Mtues of welble-daae debt inestment 2968 3887 5854 Purchases of treding sse 503) (13700 (1223 Mausand sales of trading se 12,111 13970 10.88 Purchases of equity invetments (874) 2802 (1,81 (983) Ses of equity investments 5,238 1080 Proceads from diveure 548 3,124 (272) 1268 ceer inveing 730 Net cash used for invesdng activites (11,230) (15,782) (25,817) Csh fows provided by (used for) financing activites: Incresse (decrese) in short-tarm debt, net 480 (15) 423 7.718 2,734 ssuance of lang-erm debt, net of snce cost Repayment of debt and debt comvension (3,028) 555 (8080) (1.500) Proceads from ssies of comman tock through employes equity incentivee plans T70 1.108 (10.730) (3815 Repurchse of cmmon stock 2587) Payment of dividends to stockholders (5,541) (5,072) (4.925 ceer financng Net cash provided by used for) fnancing actvites Net inerease (decrease) In cash and cash equlvalents Cash and cash equivalents, and of period 48) (18.807) 04140 (208w (554) (5.730) B,475) 2.127) 9748) 6,50 3.0198 3433 Supplemantal disciosures Acquiiton of praperty, plant and equipment indluded in sccounts payable and scrued Bbises 2340 1,417 979 Non-markeable equity invetment in MoAlee tom dvestiure 1,078 Cash paid during the year for Interest, net of capitalced interest e24 682 448 Income ta net of refunds 3813 $ s24 NOTE 2: ACCOUNTING POLICIES REVENUE RECOGNITION We recognize net product revanus when we saty performance obligtions evidenced by the transfer af contral of our products or services to customers Subetanaly aof our revenue is derived from product sales. In sccordance with contract term revenue for product sales is recognied at the Sme of product thet ilowed for price protecdons or right of retum unt the ctbutor sold through the merchandse, we defamed product revanue and reied cows of sales. We include shipping charges billed to customars in net revanue, nd include the reluted shipping coss in cost of sales We measure revenue besed on the amount af consideration we expect to be anied to in euchange for products or sarvices Variable considenadon is estimated and reected an adjustment to the trnsaction price. We detrmine vasble comsidention, which cosists primarly af various sales price concessions, by evdmating the most likly amount of consideration we expect to receive from the customer besed on historicl anysis of cuatomar purchese volumes Sals rebtes emed by customers are offet agaist thair receivable baiances Rebates eamed by customers whan they do not have outnding recaivable balences ecorded within oher accrued ibilities. The impacts of distibutor sales price reductionsresulng from price protection agreemants se aso edmted bsed an hitorical analyis of such actvity and are retected s areduction in net revanue We make paymants to our customers through cooparative advertising programs for markatng activides for certain of our products. We general ly record the payment as a reduction in reverue in the period that the revenue is med, unless the payment is for a didinct senice, which we record s apense when the marketing actvies occur. During the second half of 2017, we transitioned customers trom previous offerings under the Intel Inside program to cooperatve adverting offerings more sailored to customas and their marketing sudences. These cooperative advertising costs ae recorded a reduction of revenue begiening in the second haif of 2017, a we no longer meet the arfteris for recording these sn expense INVENTORIES We compute inventory cost on a first-in, frst-out basis Our process and product development life cycle comesponda with substentive engineering milestones These enginsering miestones are reglely and consistenty applied in sssessing the point st which our activises and socisted costs change in ure from reserch and development (R&D) to cost of ss, and when cot of sales can be cepitized s inventory For a product to be mnufctured in high volumes and sold to our customers under our astarnderd wamnty, it mut meet our igorous technical quality out products are induded in the valustion of inventary. Priar to PRQ costa that do mot meet the areria for R&D are included in cost of sales in the period incured the point at which we estmate thet inventory meets PRO ere changes in the ture, the sming and recognition of costs wouid shit between R&D ieventory, and costs of sales. A single PRQ ha previoualy nanged up to $770 illion and is depandent on product type The valustion of imventary includes determining which foed production overheed costs can be indluded in inventory besed on the normal capacity of our manufecturing and sambly and test ficities. We spply our historical loadings compared to our totl aille cacity in a sical model to determine our normal capacity level. If the fctory losdings are below the ebihed nomal capacity level, a porton af our foed production overhead costs would not be included in the cost of inventory, instead, it would be recognied as cost of saies in that period We refer to these costs s acess capadty charges. Excess capacity charpes ae insignificant in the years preserted. Charges in certain priar years have ranged from $48 milion to $1.1 billian. The high end of the range would be $540 milion when exdluding the $1.1 billon chage tacan in connection with the 2009 conomic recession Invantory is vlued at the lowar of cost or met realble valus, besed upon sumpions about future demand snd market condisons Product-pecific fects and droumatnces reviewed in the imventory valuon process include aeviw of our customer bese, the stage of the product e cycle, and n sessmant of saling price in raition to product cost Inventory reserves increased by pprodmately $295 million in 2018 compaed to 2017 The valution of inventary wso requires us to exdmate obsolete and exces inventory, s wel am inventory that is nat of saiesble quality. We use the demand forecast to develop our ahort-em manufcturing plans to ansble consiency between imventory valuors and build decsions We compare the estmate of future demand to work in process and frished goods invantory levels to determine the amount, if any, of obeolete or excess inventory. If aour demend forecest for specific products is grester an ctul demand and we fel to reduce manfacturing output sccordingy, we could be required to wite offinventory PROPERTY, PLANT AND EQUIPMENT We compute deprecistion using the siwight-ine method over the imaed useful life of asses We so capitalze interest on borowings relsted to eligbie capal epandtures Cepitaed intereat is added to the cost of quaifed sets and depreciated together wih that asset cost We record capite-reltec government grants earmed sareduction to proparty, plant and equipment Annualy, we avaluste the pariod over which we axpect to recover the economic value of our property, plant nd equipment, considering factors such the process technology cadence bebween node tritons, changes in machinary and equipmert technology, and re-as of machinary and toals across each genaration of process technology. As we make menufecturing process comversions and oher factory plarning decisions, we use sumptons involving the use af management judgmants regarding the remaining usetul lives af sssebs, primarily processspecite samiconductor manufacturing toos and building improvements When we determine that the uset lives of ssets are shorter or langer than we had ariginaly estmated, we adjuat the nete of deprecistion to reect the assea revised usetal lives Assats ae grouped and evalusted for impaimant st the lowet level of identfiable cash fows. We asess property, pant and equipment for impaiment when avents or changes in circumatnces indicte that the caying value of the asets or the sset grouping may not be recoverable. Fctors that we consider in deciding whan to perform an impairment reviaw include significant undar-performance of a business or product line in reludon to expectations, significant negative indusiry or economic trends, and signfcant changes or pianned changes in our use of the ssss We messure the recoverability of se that w will continue to use in our opertions by comparing the carying ue of the asset grouping to our etimate of the reled totl ture undiscounted net cash fows wing from the use of that sset grouping an sst grouping camying vaus is not recoverable trough the related undiscounted cash fows, the asset grouping is considered to be impaired. We measure the impairment by comparing the diference beteeen the set grouping camying value and its rvlue We may have certain facities, incuded within constucion in progress, being held in a sale sn nd nat curranty in use that we plan to place into service at WE are in the transition of products an our rosdmap. Management maks judgmants sbout te iming of when these facites wil be readiaed for their intended use d plced into service for the manuctuing of our products. Depreciation is not recogriced on these ssts and tey ae net eligble for capibalzed interest when construction is on hold FAIR VALUE Whan datarnining fair valce, we conaider the principal or most acvanageous market in which we would tansact wel umptons that markat participants would use when pricing the set or lability. our financial ts are mesured and recorded st fair vlue on arecuring besis, encept for equity securises messured using he messurement aematve, equity method investmants, cot method loas receivabe, grnts recaivble, and reverse repurcha agreaments wth original maurises greater than three month We ssess fir vae herrchy levais for our issued debt and fandincome investment portolio based on the underlying instrument type The three levels of inpus that may be used to messure fir value are Level 1. Quoted prices in ctive markats for idendcal s or libilises. We evalute security-specific market deta when determining whether a market is Level 2. Cbsarvable inputs cher than Level 1 prices, such quoted prices for similer sets or lisbilises, quoted prices in less actve markets, or model derived valutions All significant inputs used in our valuations, such s discounted cash fows, are observable or can be derived principaly from ar comoborted with obsarvable markat de for substantaly the fall erm of the ets or ibiles We use LIBORd yeld curves, currency spat and forward ntes, and aredit ndngs s signiicat inputs in our valuadons Leval 2 inputs lso include non-binding market consensus prices, mwell quoted prices thet ware sdjuated for secuity-apecife restictions When we use non-binding market consansus prices, we comrobonate them with quoted market Level 3. Uncbservable inpus to the valution methodology that re signiicant to the mesurement of the far value of asses or liblises. We moritar nd reviaw the irputs and results of these valuation modeis to help ensure he fr value mesurements are reascnable and consistent with markat exparience in srt ss Lavel 3 inputs sso incdude non-binding marlkat comsersus prices or non-binding broker quotes that we were unsble to comobonate with absarvable market dt DEBT INVESTMENTS We comaider allhighly liuid debt investments with arigil mtes trom te dete of purchase of three months or less a csh equivalents Ch equivaents can indlude investments such as corporate deb, finandial instution instruments, govemment debt, and reverse repurchese agreemants Markatable debt investmnts re generaly designated an treding asets when a market iskis economicaly hedged t inception with a related derivatve instrumant, or when the marketable debt investment self is used to economicaly hedge currency eschange ne risk from remeurement Invesments designated as trading ts are reported st f vlu. Gains or loses on these invetments wriing from changes in fair vlue due to interest re nd curency markst fuctuations and aredit markat voletity, lrgely offset by losses or gains on the reited derivadve instruments and balance sheet remessurement, recorded in interest and oher, net Marketble debt investmants are considered availble-far-aale investments when the interest re snd foreign cumency risls are not hedged at the inception of the investment or when our crteria for designon s trading ws are not met Available-a-ale debt imvestmena with ariginal matuites of spprodmataly three months ar less from the de of purchs are cied within cash and cash equivaierts Available-for- debt invastments wih original maturies at the dats of purchase greater tan sppraimately three months and remaning maturites of less than one year are cassifed s shar-irm invetments Available-for saie debt investmants wh remining mturides beyond ane year are classifed as other lang-erm investments Availsble-for-sale dabt invesments are reparted t fair value, with unreazed gains or losses, net of recorded in aCumuated oher comprehansive income (oss) We determine te cost of the investment sold based on an avarage coat besis set the individual security level, and record the interest income and reazed gas or losses on the sale of these imvestments in interest and other, net Our available-for-sale debt investments re subject to parodic impaimant reviews For these investments, we consider whether it is more likaly tan not that we wil be required to sal te invement bafare recovery of its martized cot basis, or whether recovery af the antre amartced cot basis of the investmant is unlikaly because a credt loss exits Whan we do not espact to recover the entire amortired cost besis of the investment we separate othar-an-amponary impairments into amounts representing aredt lowses, which are recogriced in interest and oher, net, and amounts not reied to credit losses, which are recognized in other comprehensive inceme (loss EQUITY INVESTMENTS We regularly invest in equity securises of public and private companies to promcte business and strategic objectives Equity inestments are messured and recorded s follows Markeble equity securises are equity securities with readily determinable fir value (RDFV) re mesured and recorded at ir value on a recuring basis with changes in tervlue, whether rezed or unrealred, recorded through the income sttement Prior to 2018, these securises were clssifed i wble-for-esecurites snd mesured and recorded at fair value with unreared changes in fir value recorded through other compreahansive income Non-markatble equty securites are equity securibes without RDFV thet are mesured and recorded using a messurement mtve that mesures the scurises at cost mins impaiment, ay, plus or minus changes resuting from qualitying obeervable price changes. Prior to facal 2018, these securities were sccounted for using the cost method of wccounting, meured t cot less other-than-emponry impairmernt Equity method investments are equty securities in investees we do net control but over which we have the sbility to eercise significat infuance. Equity method investments e mesured t cost inus imparment ifany, plus or minus our share of equity method investeo income or loss Our proportionats share of the income ar loss from oquity method investments is recogniced on a one-quater lag Realized and unreazed gairs and losses resulng from changes in fair value or the sale of our equity investments are recorded in gans (osses) on equity investmants, net Pior to 2018, we recorded unrealced gains and losses through other comprehensive income (los) and realced gairs and losses on the sale ahange, or impairment of these equity invesments through gains(loss) an equity invesients, net. The camying vailue of our non-markaie equty securies is adusted for qualitying observabile price changs reulting fom the issuance of simr or identcal seutes by the same issuer. Detarining whether an observed transaction is simlr to a security within our portolo requires judgment besed on the rights and preferences of the securites Recording upward and dowmwd adjustments to the camying value of our equity securites s a reut of observable price changes requires quantttve essments of the f value of our securises using various valuation methodologies and invalves the use of esdmates Non-marketabie equity securises and equity method invesimentis (col lectively referred to as non-markatabile equity investmenta) are iso subject to periode impairment reviews Our quarty impaiment anlyis considers both qualitive and quanttve factors that may have a signifcant impact on the invetee's far vaus. Qualbtive factors considered include the investe's iandial candition and business autlook, industry and sector parfarmancs, market for technology aperational and Sancing csh flow actvites, and other relevnt events and factorsecting the investne. When indicators of impairment exist, we prepars quanttatve ssaments of the fair value of our non-markatable equity investments using both the markat and income spproaches, which require judgment and the use of estmates, indluding discount nates, investe revenue and costs, and comparable markat dets of private and puble companies, among others NOTE 7 OTHER FINANCIAL STATEMENT DETAILS INVENTORIES Dec 29, 2018 813 Dec 30, 2017 in Millions) Rw maes 738 Work in process 4,511 4213 Finished goeds 1,29 2032 7,253 6,983 Total Inventorles PROPERTY, PLANT AND EQUIPMENT Dec 2, 2018 Dec 30, n Milliona) Land and buildings 2017 30,054 27301 Machinery and equipment 8721 57,192 Conructon in pregres 18843 15812 114318 100,36 Total property, plant and equipment gross Leas wccumusted deprecietion 5342 50288 48976 41,00 Total property, plant and equipment, net Subtandaly of our deprecibile property, plant and equipment sts ware depreciated over the following estimated usefu ives machinery and equipme nt, 2 to 5 years, and buidings, 10 to 30 y ears Net property, plant and equipment by county t the end of each pariod was tolow Dec 29, 2018 Dec 30, Dec 31, 2016 n Millions) 2017 United Swes 27512 24,45 23,506 8,881 ,501 323 Isra Chins 6417 4275 2308 and 3947 3,938 485 cer countries 2239 1,38 1479 ,976 41,10 38,171 Total property, plant and equipment, net OTHER ACCRUED LIABILITIES ceer scued liabilies indude defemed compensaion of $1.7 bilin as of December 29, 2018($1.7billon md December 30, 2017) ADVERTISING Advertsing cos, including drect marketing, recorded within marketing general and administative (MGSA)peses ware $12 bllion in 2018 ($1.4 bilion in 2017 and $1.8 bln in 2010) INTEREST AND OTHER, NET The companents of interest and other, net for esch period were s follows Years Ended Dec 2 2018 438 Dec 30, 2017 Dec 31, 2016 n Milons) Interest income 441 222 Intert pense (468) 48) ceat 158 (192) (144) 126 40) Total Iinterest and other, net Interest expense in the preceding tbie is net of $4 millin of interest captaized in 2018 ($313 mion in 2017 and $135 mion in 2018) NOTE 11: ACQUISITIONS AND DIVESTITURES ACQUISITIONS During 2018, we completed Sve acquisitions qualying business combiniona that were not matel to our operatons During 2017, in addion to the Mobilaye acquisition shown belaw, we completed two acquisitions qualitying business combinations During 2018, we scquired Alters for $14.5 billion, and, in addison, completed 11 squiaions qualitying business combinations for aggregate considendon of $1.1 billion. ceer acquisitions completed in 2018, 2017, and 2016, beth individualy and in the aggregatn, were not significant to our reus of operations, and subsiantialy of the consideration, which primarily consisted of cash, was octed to goodwill and idenfhble intangible asses Far informaion on the asignment of goodwill to our operatingsegments, see Note 12: Geodwill,and for information on the cleification of intngbie t see Note 13 ldentified Intangible A Mobleye Aa of August 21, 2017, upon the completion of our tender offer, we cqured 07.3% of the outstanding ardinary shares of Mobleyn, a gobal eader in the diving This acquisiton combines Mabileye's leading computer vision expertise with Intel's high-performance computing and connectivity expartse to crea wtomated driving soltons from car to cloud. The combinad on is expected to sccelerate innovdion for the wutomatve industry and positan Intel leading echnology provider in the fi-growing markeat for highly and tuly tonomous vehides. The transscton aso actands Intel's stgy to inest in dats-intensive market opportunises that build on our strenghs in computing and conmectivity from the cloud, through the natwork, to the device. We acquired the remaining 27% of Mobleye sheres in April 2018. Tol conaiderdon to acquire Mobileye was $14.9 biion (net of $388 millon of cash and cah equivlents cquired), of which $14.5 billion was paid in 2017 and the remainder in 2018 The fir values of the sets acquired and isbilies asumed in the acquisition of Mobileye, by major dess, were recegnized em follow n Mllons) Short-am invetmen nd marketable securises 370 Tangbie sets 227 Goodwil 10,283 Identified intangibie assts 442 Curent lisbilises Deferred tex abies and other (418) 1487 Total We ssumed outstanding unvested Mableye stock optons and RSUs granted undeer two Mobileye equity plans We will not gnt addsonal equty wrds under these two Mobileys equity plans In consection with the acquisition, we recogniced share-based compensation expense of $71 million for csh-sted wards Goodwil of $10.3bln arsing from the scquisition is buted to the expected smergies and other benefts that wil be ganerted trom the combination of Inte ed Mobleye Sutetantily of the goodwllrecogniced is net espected to be deducole for t purposs The goodwll recogniced trom the scquisiion i included within "l other The identfed intangible asts umed in the sequiation of Mobileye were recognized as foliows Welghted Average Estimated Usetul u n Years) Fair Value On Millions) 2348 Developed technologyY Customer retionships and brands 3,123 ldentified Intangible assets subject to amortization 1,3 1,30 4482 In-process resesrch and development Identifed Intangible assets not subject to amortization Total Identified Intangible assets DIVESTITURES Wind River Sycteme, Ina. (Wind Rlver) During the second quarter of 201, we completed the divestiture of Wnd Rver and recegnized a pre- pn of $404 million Intel Seourty Group On Apil 3, 2017, we closed the trarsecdon wih TPG VI Manta Holding, LP., now known Mants Holdings, LP. (TPG) tsfering certain ssets and abilises relating to 1SecG to a newty formad, jointly owned, separats cybarsecurity company clled McAlee Totl conidendon received ws $4.2 billion,comisting of $24 milon in csh proceeds, $1.1 billion in the form of equity represanting a40% ownanhip interest in McAee, and $22 bllion in the form of promsory notes isued by McAlee and TPG During the tird quarter of 2017, McAee and TPGrepaid he $22 billion af promissory notes, which are indluded within proceeds from divesure The carying amounts of the major clesses of 1SecG ts and lisbilites a of the transaction dose dete induded the folowing Apr 1, 2017 317 in Millons) Accounts receivble Goodwl 3,801 Identifed intangible asets 9e5 ceer aes 278 6,150 Total assets Deferred income 1,553 ceer iabilses 278 Total Babitles s29 As of the trasacdon close dee, we recognized a pre-bex gain of $387 millian within Teterest and other, net" which is net of $507 milon of cumency transistion adjustment losses recsifed trom accumulated other comprehensive income (lo) aociated with cumency charges on the carying values of SecG goodwill nd identfed intangible asse In addition, we recagnized a b experse of $822 milion NOTE 12: GOODWILL Goodwill actvity for ech period was s folow Dec 30 2017 Dec 2, 2018 440 n MIllions) Clnt Computing Group Acquaions Transers other 4,35 Dets Center Group 5,421 5,424 Intermet of Things Group 1,128 (43) 1,579 2400 Programmable Soluion Group 2579 All oer 10,0 (480) 10,528 24513 24,389 182 Total Dec 31, 2016 Dec 30, 2017 4358 Acquisions Transrs n Millions) Other Clent Computing Group 4,35 Oets Center Group 5412 5421 Intemet of Things Greup 1,123 1,12 Programmable Soluiona Group 2400 2,400 Al oer 718 10278 10,8 14,000 10,200 24380 Total During the tird quarter of 2018, we made an oranialange to combine our tfice inteligence invesment in edge computing wh OTa crdingl. ppraeimately $480 million of goodwill ws redlocated from ll other to the IOTG opentingg segmant During the fourth quarters of 2018,2017, and 2018, we completed our annual impaiment sessmants and we concluded that goodwill was not impaired in any af these years. The accumulted impaiment losses s of December 29, 2018 were $719 million: $385 mllion ocited with CCG, $275 millian ssociated with oca, nd $79 ion associaled with IOTG NOTE 13: IDENTIFIED INTANGIBLE ASSETS December 2, 2018 Gross Accumulated In Millons) Aquitiond develioped technolegy Aasets Amortization Net 9811 021) .500 Acquation-elted austomer relationships and brands 2,179 (527 1,852 Licensed technolegy and patents 292 1,52 9,768 1,407 (1408) (4.054) Identifed Intanglble assets subject to amortiza Bion 14,722 In-process research nd development ceer intangble assets 571 571 2,068 2,068 16,700 Identfied Intangible assets not subject to amortization (4.954) Total ldentfed Indanglible assets December 30, 2017 Gross Accumulated Amortizatlon n Millons) Aasets Net 8912 Acquitioneed developed techndlogy 1,822) 0 Acquation-elted austomer relationships and brands 2,95 342 1,853 Licensed technology and patents 3,104 14,211 2,168 2188 18,37 1,30 634 1,734 10,577 2,168 2188 12,746 dentfed Intangible asseta subject to amortizaBion In-process reserch and development Identifed Intangible assets not subject to amortication R634 Total Identifed Intarngible assets dentfied intangble aets subject to amortcation recorded for each period and ther respective estimated weighted verage usefal ives were s folow December 2, 2018 Estmated Useful December 30, 2017 Estimated Useful LUN n Yeara) Gross Gross Assets LN n Years) Assets n Mllions) 2346 n Milliona) Acquition-eled deveioped technology 35 Acquiition-eied customer reletionahips and brand Licensed technology and patents 182 Amortition expanses recorded for identifed intengible sssets in the consolidaded statements of income for each period and the estmated useful ife ranges were s folows Esdmated Years Ended Dec 2 2018 Dec 30, 2017 Dec 31, 2016 Usetal Lfe Range In Yeara) n Millions) Location Acqutioneed deveoped echnalogy Coat of sles 1,105 912 s37 5-11 Amartation of acquisiton-eisted Intangbies Acquation-elted austomer rohips and brands 17 24 812 Licensed technolegy and paents Cost of sas 280 288 293 2- 17 1,377 $ 1,565 1,824 Total amertiaadon expenses We xpect future amortzation expense for the net five yeurs to be m follows n Millions) 2020 2021 2022 2023 201 Acquisition-eied developed technlegy 1,047 1,114 1,0e2 1,008 1,005 200 199 199 177 173 Acquaition-elted customer relationahips and brands Licensed technology and patents 240 218 204 198 130 1,381 Total fture amortzation expanses 1,63 1,409 1,450 1,317