Accounting for non-current assets Intel - solution

1. What is the property, plant and equipment balance at the end of 2017 and which is the largest
category by cost?

PPE stood at $41,109 at the end of 2017 (Balance sheet, page 62). The largest category
was Machinery and equipment at a cost of $57,192m (Page 77)

2. What is the period over which PPE is depreciated?

Note 6 states that “Substantially all of our depreciable property, plant and equipment
assets were depreciated over the following estimated useful lives: machinery and
equipment, 2 to 5 years, and buildings, 10 to 25 years” (page 77).

3. Where are the majority of assets held geographically?

$24,459 out of $41,109 is in the US. That represents 59% of PPE.( Page 77)

4. Is there any goodwill on the balance sheet? What can you find out about it?

There is a figure of $24,389 for goodwill. (Balance sheet page 62) which is a large increase
on the previous year. The increase is due to the acquisition of Mobileye in August 2017 -
discussed in note 10 (page 85). Goodwill from previous acquisitions is shown in note 11
(page 88).

5. What are Intel’s ‘Identified Intangible Assets’? Are these amortized?

Note 12 (page 89) outlines the intangibles assets. They include purchased intangibles
(development technology, customer relationships and brands) and Intel R&D and licensed
technology and patents. All categories (except R&D) are amortized over a range from 2
years to 17 years. (Page 89).

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