Edgar Filing: INTEL CORP

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 11-K

X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2009

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to

Commission file number 000-06217

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

INTEL CORPORATION 401(k) SAVINGS PLAN

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office

INTEL CORPORATION
2200 MISSION COLLEGE BOULEVARD
SANTA CLARA, CALIFORNIA, 95054-1549

INTEL CORPORATION 401(k) SAVINGS PLAN
Financial Statements and Supplemental Schedule
As of December 31, 2009 and 2008, and for the Year Ended December 31, 2009

Contents


	Page
Report of Independent Registered Public Accounting Firm		1

Audited Financial Statements:

Statements of Net Assets Available for Benefits at December 31, 2009 and 2008		2

Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2009		3

Notes to Financial Statements		4

Supplemental Schedule at December 31, 2009:

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)		41

Signatures		44

Exhibit 23 - Consent of Independent Registered Public Accounting Firm		45

Report of Independent Registered Public Accounting Firm

The SERP Administrative Committee
Intel Corporation 401(k) Savings Plan

We have audited the accompanying statements of net assets available for benefits of Intel Corporation 401(k) Savings Plan as of December 31, 2009 and 2008, and the related statement of changes in net assets available for benefits for the year ended December 31, 2009. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2009 and 2008, and the changes in its net assets available for benefits for the year ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2009, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young, LLP

San Jose, California
June 24, 2010

Intel Corporation 401(k) Savings Plan

Statements of Net Assets Available for Benefits


	December 31
	2009			2008

Assets
Value of interest in master trust investment accounts, at fair value	$	777,079,961		$	551,294,424
Investments, at fair value		3,322,984,469			2,394,162,737

Receivables:
Interest and dividends receivable		3,271			1,442
Receivable from brokers for securities sold		367,862			943,570
Employee contributions receivable		6,438,988			5,219,022

Total receivables		6,810,121			6,164,034

Total assets, at fair value		4,106,874,551			2,951,621,195

Liabilities
Other accrued liabilities		6,079,784			5,527,328

Total liabilities, at fair value		6,079,784			5,527,328

Net assets available for benefits, at fair value		4,100,794,767			2,946,093,867

Adjustment from fair value to contract value for fully benefit-responsive investment contracts held by the Stable Value Fund master trust investment account		(2,282,924	)		6,604,779

Net assets available for benefits	$	4,098,511,843		$	2,952,698,646

See accompanying notes.

Intel Corporation 401(k) Savings Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2009


Additions to/(deductions from) net assets attributed to:
Employee contributions	$	369,631,473
Interest and dividend income		67,423,239
Net investment income from participation in master trust investment accounts		132,153,048
Net realized and unrealized appreciation in fair value of investments		722,248,304
Benefits paid to participants and participant withdrawals		(145,155,679	)
Administrative fees		(477,825	)
Transfers to other plan		(9,363	)


Net increase		1,145,813,197

Net assets available for benefits:
Beginning of year		2,952,698,646

End of year	$	4,098,511,843

See accompanying notes.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements

December 31, 2009

1. Description of the Plan

The following description of the Intel Corporation 401(k) Savings Plan (the Plan) provides only general information. Participants should refer to the summary plan description for a more complete description of the Plan’s provisions. The Plan document contains the definitive legal provisions governing the Plan.

General

The Plan is a defined contribution plan covering all eligible U.S. employees of Intel Corporation (the company). Eligible employees may participate in the Plan any time on or after their date of hire. All employees who become eligible to participate are automatically enrolled in the Plan unless they make an affirmative election not to participate. Participants who are automatically enrolled will initially have 3% of their compensation withheld and deposited in the appropriate LifeStage Fund, which invests in varying percentages of equity securities and fixed-income debt instruments based on the participants’ age.

The Plan is intended to be qualified under Section 401(a) of the U.S. Internal Revenue Code of 1986 (the Code), as amended, and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

Trustee

For 2009 and 2008, the Bank of New York Mellon, N.A. (Mellon) was the Plan’s trustee, and held all investments of the Plan and the Intel Corporation Master Trust (the Master Trust) directly or through a subtrust for which Fidelity Management Trust Company is subtrustee. Effective January 1, 2010, State Street Bank and Trust Company became the trustee for the Plan and Master Trust.

Administration of the Plan

The Sheltered Employee Retirement Plan (SERP) Administrative Committee (as appointed by the Finance Committee of the company) is the fiduciary responsible for the general operation and administration of the Plan (but not management or control of Plan assets) and the Investment Policy Committee (as appointed by the Finance Committee of the company) is the fiduciary responsible for the management and control of Plan assets. The company is the plan sponsor, as defined by ERISA. Fidelity Investments Institutional Operations Company provides recordkeeping services with respect to the Plan.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

Contributions and Participant Accounts

Participant Contributions

Effective January 1, 2008, the Plan was amended to allow participants to make Roth 401(k) contributions, as well as Roth 401(k) catch-up contributions for participants who are 50 years of age or older. Participants may make pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of both, up to 50% of their annual compensation, provided the amounts do not exceed the annual Internal Revenue Service (IRS) limits. Such contributions are withheld by the company from each participant’s compensation and deposited in the appropriate investment option in accordance with the participant’s directives. Participants who are 50 years of age or older by the end of a particular plan year and have contributed the maximum amount allowed under the Plan for that year are eligible to contribute an additional portion of their annual compensation as catch-up contributions, up to the annual IRS limit. Participants can elect to invest in any combination of the available investment options offered under the Plan; however, participants may not elect to invest more than 20% of their account in the Intel Stock Fund. Participants may change their investment elections daily.

Participant Accounts

Separate accounts are maintained for each participant. The account balances are generally adjusted as follows:

	•		Bi-weekly or semi-monthly for participant contributions.

	•		Daily for a pro rata share of investment income or losses on the Plan’s investments based on the ratio that each participant’s account bears to the total of all such accounts.

ESOP

Under the terms of the Plan, the Intel Stock Fund is an employee stock ownership plan (ESOP) in accordance with Code section 4975(e)(7). As such, participants will have the option to receive dividends on their shares of stock held in the Intel Stock Fund distributed in cash or reinvested within the Intel Stock Fund.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

Vesting

Participants are immediately 100% vested with respect to contributions to all investment options in the Plan, as well as the related earnings from such contributions.

Payment of Benefits

Participants are eligible for a distribution of Plan benefits upon termination of service, whether by disability, retirement, death or leaving the company. In the event of financial hardship (as defined by the Plan), participants may withdraw money from their Plan accounts while they are still employed. Upon termination of service, a participant or applicable beneficiary may elect to have benefits paid in a single lump-sum distribution or monthly annuity payments, or may request that the Plan make a direct transfer to another eligible retirement plan.

Participants who elect monthly annuity payments will have the balance of their accounts transferred to the Intel Corporation Defined Benefit Pension Plan (Intel Pension Plan). An annuity is paid to those participants based on the value of their Plan accounts in accordance with the terms of the two plans. There were transfers under this option of $9,363 for the year ended December 31, 2009.

Participant Loans

All participants are permitted to obtain loans of up to 50% of their vested account balances in the Plan up to a maximum of $50,000 when combined with all other loans from this Plan and the Intel Corporation Profit Sharing Retirement Plan (Intel Profit Sharing Plan). The participants’ account balances secure their loans. The interest rate is based on the prime rate plus 1% as reported in The Wall Street Journal on the last business day of each month. The loan provisions are established by the SERP Administrative Committee and administered by the record keeper.

Participants may choose to obtain loans from either this Plan or the Intel Profit Sharing Plan. Repayments of loans are transferred to the participants’ Plan and Intel Profit Sharing Plan accounts in the ratio in which such accounts provided funding for the loan.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

1. Description of the Plan (continued)

Administrative Expenses

A portion of the expenses for administration of the Plan is paid from asset based credits received from certain mutual funds or directly by the Plan. Any remaining administrative expenses are paid by the company.

2. Summary of Significant Accounting Policies

Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles.

Investment Valuation

A portion of the investments of the Plan are held in the Master Trust, which consists of the assets of the Plan, the Intel Profit Sharing Plan, and the Intel Pension Plan. The Master Trust includes multiple master trust investment accounts, in which different combinations of the above-mentioned plans invest. Each participating plan shares in the assets and earnings of the master trust investment accounts based on its respective interest in each master trust investment account. See Note 3: Master Trust Investment Accounts for the detail of the investments held and investment income of the master trust investment accounts. The investments and activities of each master trust investment account are specified; however, not all of the master trust investment accounts will engage in all of the investments or activities described. In 2009 and 2008, the Plan, along with the Intel Profit Sharing Plan, participated in the Stable Value Fund, as well as the Alternative Investments Fund, which invests in commodity futures, U.S. government bonds, marketable limited partnerships and corporations, and non-marketable limited partnerships, through a LifeStage Fund. In 2009 and 2008, the Plan, along with the Intel Profit Sharing Plan and the Intel Pension Plan, participated in the U.S. Large Cap Stock Fund, the International Stock Fund, the Global Bond Fund, and the U.S. Small Cap Stock Fund.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

The Plan, either directly or through investment in master trust investment accounts, holds investments in registered mutual funds, common collective trust funds, equity securities, exchange traded funds, fixed-income debt instruments, derivative financial instruments, marketable limited partnerships or corporations, non-marketable limited partnerships, and participant loans, all of which are stated at fair value as of the last day of the plan year. The fair value for securities traded on a national securities exchange or over-the-counter market is determined using the last reported sales price as of the valuation date. Registered mutual funds are valued at quoted market prices that represent the net asset values of shares held at year-end. Participation units in common collective trust funds are stated at their unit price based on the fair values of underlying assets in the common collective trust funds on the last business day of the plan year. Marketable limited partnerships and corporations are valued at their unit price based on the fair value of underlying assets in the partnership or corporation. Non-marketable limited partnerships are valued at their unit price, or equivalent, based on the fair value of underlying assets in the partnership. Participant loans are valued at fair value.

The Global Bond Fund may engage in repurchase agreement transactions. Under the terms of a repurchase agreement, the Global Bond Fund takes possession of an underlying fixed-income debt instrument (collateral) subject to an obligation of the seller to repurchase, and the Global Bond Fund to resell, the fixed-income debt instrument at an agreed-upon price and date in the future. Fixed-income debt instruments purchased under repurchase agreements are reflected as assets and the obligations to resell as liabilities. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Generally, in the event of counterparty default, the Global Bond Fund has the right to use the collateral to offset losses incurred.

The Global Bond Fund may purchase or sell securities on a delayed delivery or when-issued basis. These transactions involve a commitment by the Global Bond Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When purchasing a security, the Global Bond Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. The Global Bond Fund may dispose of or renegotiate delivery of the security after entering into the transaction, and may sell the security before it is delivered, which may result in a realized gain or loss. When the Global Bond Fund has sold a security on a delayed delivery basis, the Global Bond Fund does not participate in future gains and losses with respect to the security.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

The Global Bond Fund may enter into short sales transactions. A short sale is a transaction in which the Global Bond Fund sells securities it borrows in anticipation of a decline in the market price of the securities, and a subsequent repurchase of the securities. Securities sold in short sale transactions are reflected as a liability. The Global Bond Fund is obligated to deliver securities at the market price at the date the short position is closed. Possible losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.

Within the Stable Value Fund, traditional Guaranteed Investment Contracts (GICs) and Variable Synthetic (VS) GICs are stated at fair value, computed using discounted cash flows. Wrapper contracts related to Fixed Maturity Synthetic (FMS) GICs and Constant Duration Synthetic (CDS) GICs also held in the Stable Value Fund are stated at fair value, based on a replacement cost determined by Standish Mellon Asset Management (Standish), the Stable Value Fund’s investment manager. The Stable Value Fund is allocated to the Plan and the Intel Profit Sharing Plan based on each plan’s proportionate share of the underlying assets.

Investment contracts held by a defined contribution plan are reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. Contract value represents the cost plus contributions made under the contracts plus interest at the contract rates less withdrawals and administrative expenses. The statements of net assets available for benefits present the fair value of the investment in the Stable Value Fund as well as the adjustment from fair value to contract value for the Plan’s proportionate share of fully benefit-responsive investment contracts within the Stable Value Fund. The statement of changes in net assets available for benefits is prepared on a contract value basis.

Income Recognition

Net investment income includes the gain/(loss) realized on the sale of securities and unrealized appreciation/(depreciation) in the fair value of investments. Unrealized appreciation/(depreciation) is calculated as the difference between the fair value of investments at the beginning and the end of the year for investments held the entire year, and the difference between the purchase price and the fair value of investments at the end of the year for investments acquired during the year.

Investment transactions are recognized as of their trade dates. Interest is accrued daily; dividends are accrued on the ex-dividend date.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Benefit Payments

Benefits are recorded when paid.

Contributions

Participant contributions are accrued when the participants’ salary deferrals are withheld.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from management’s estimates.

Accounting Changes

In 2009, the Plan adopted new standards that provide guidance on how to determine the fair value of assets and liabilities when the volume and level of activity for the asset/liability have significantly decreased. These new standards also provide guidance on identifying circumstances that indicate a transaction is not orderly. In addition, the Plan is required to disclose the inputs and valuation techniques used to measure fair value and a discussion of changes in valuation techniques. The adoption of these new standards did not have a significant impact on the Plan’s financial statements.

In 2009, the Plan adopted amended standards for fair value measurements and disclosures. This amended standard clarified that as a practical expedient, an entity holding investments in certain entities that calculate net asset value per share for which fair value is not readily determinable, could measure the fair value of such investments on the basis of that net asset value per share without adjustment. The adoption of these amended standards did not have a significant impact on the Plan’s financial statements. For further discussion of the Plan’s fair value measurements, see Note 4: Fair Value.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

Recent Accounting Pronouncements

In June 2009, the Financial Accounting Standards Board (FASB) issued new standards for the accounting for transfers of financial assets. These new standards eliminate the concept of a qualifying special-purpose entity; remove the scope exception from applying the accounting standards that address the consolidation of variable interest entities to qualifying special-purpose entities; change the standards for de-recognizing financial assets; and require enhanced disclosure. These new standards are effective for the Plan in 2010, and are not expected to have a significant impact on the Plan’s financial statements.

In January 2010, the FASB issued amended standards that require additional fair value disclosures. These amended standards require disclosures about inputs and valuation techniques used to measure fair value as well as disclosures about significant transfers, beginning in 2010. Additionally, these amended standards require presentation of disaggregated activity within the reconciliation for fair value measurements using significant unobservable inputs (Level 3), beginning in 2011. The adoption of these standards is not expected to have a significant impact on the Plan’s financial statements.

3. Master Trust Investment Accounts

A substantial majority of the Plan’s investments are included in “Investments, at fair value” in the statements of net assets available for benefits. A smaller portion of the Plan’s investments are in master trust investment accounts.

The value of the Plan’s interest in the master trust investment accounts included in the statements of net assets available for benefits represents the following percentages of the net assets available for benefits of the asset class master trust investment accounts:


	December 31
	2009			2008
U.S. Large Cap Stock Fund		28.9	%		15.3	%
International Stock Fund		14.8	%		8.5	%
Global Bond Fund		5.9	%		7.5	%
U.S. Small Cap Stock Fund		21.6	%		14.4	%
Stable Value Fund		72.0	%		80.5	%
Alternative Investments Fund ¹		0.1	%		0.0	%


¹		Rounded to zero as of December 31, 2008.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

3. Master Trust Investment Accounts (continued)

The following table presents the net assets available for benefits of the six master trust investment accounts as of December 31, 2009:


	U.S. Large										Alternative
	Cap Stock		International		Global Bond		U.S. Small Cap		Stable Value		Investments
	Fund		Stock Fund		Fund		Stock Fund		Fund		Fund		Total

Assets
Cash	$	—	$	—	$	11,773,325	$	806,230	$	—	$	35,919,442	$	48,498,997
Subscriptions paid in advance		—		—		—		—		—		199,000,000		199,000,000
Common collective trust funds		847,516,500		1,100,509,900		999,777,177		7,805,488		172,248,011		3,367,340		3,131,224,416
U.S. corporate bonds		—		—		280,637,001		—		—		—		280,637,001
International corporate bonds		—		—		63,529,036		—		—		—		63,529,036
U.S. government bonds		—		—		219,286,740		—		35,464,052		57,477,589		312,228,381
International government bonds		—		—		205,550,172		—		—		—		205,550,172
Municipal bonds		—		—		4,710,668		—		—		—		4,710,668
Residential mortgage-backed securities		—		—		3,178,242		—		—		—		3,178,242
Commercial mortgage-backed securities		—		—		83,372,351		—		11,453,130		—		94,825,481
Collateralized debt obligations		—		—		59,523,778		—		20,406,473		—		79,930,251
Other fixed-income debt instruments		—		—		27,298,317		—		—		—		27,298,317
Mutual fund		108,621,212		—		—		—		—		—		108,621,212
Exchange traded fund		—		—		—		198,077,700		—		—		198,077,700
Traditional guaranteed investment contracts		—		—		—		—		6,166,156		—		6,166,156
Variable synthetic guaranteed investment contracts		—		—		—		—		2,601,975		—		2,601,975
Interest and dividends receivable		—		—		11,312,620		98,942		281,363		11,075		11,704,000
Receivable from brokers for securities sold		—		—		853,991		—		—		—		853,991
Receivable for investments sold on a delayed delivery basis		—		—		226,328,014		—		—		—		226,328,014
Wrapper contracts		—		—		—		—		69,266		—		69,266
Derivative assets		—		—		13,177,584		—		—		6,347,094		19,524,678
Marketable limited partnerships and corporations		—		—		—		—		—		384,310,404		384,310,404
Non-marketable limited partnerships		—		—		—		—		—		83,767,266		83,767,266
Investment of securities lending collateral		—		—		87,009,370		191,412,909		—		26,528,160		304,950,439

Total assets, at fair value		956,137,712		1,100,509,900		2,297,318,386		398,201,269		248,690,426		796,728,370		5,797,586,063

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

3. Master Trust Investment Accounts (continued)


	U.S. Large											Alternative
	Cap Stock		International		Global Bond		U.S. Small Cap		Stable Value			Investments
	Fund		Stock Fund		Fund		Stock Fund		Fund			Fund		Total

Liabilities
Accrued administrative fees	$	23,787	$	167,290	$	450,249	$	702	$	51,717		$	260,787	$	954,532
Payable to brokers for securities purchased		—		—		1,855,311		—		—			—		1,855,311
Payable for investments sold on a delayed delivery basis		—		—		102,789,615		—		—			—		102,789,615
Payable to brokers for collateral on deposit		—		—		4,380,000		—		—			—		4,380,000
Derivative liabilities		—		—		14,791,533		—		—			853,652		15,645,185
Securities sold, not yet purchased		—		—		152,048,004		—		—			—		152,048,004
Payable for securities lending collateral		—		—		96,992,049		191,412,909		—			26,528,160		314,933,118

Total liabilities, at fair value		23,787		167,290		373,306,761		191,413,611		51,717			27,642,599		592,605,765

Net assets available for benefits, at fair value		956,113,925		1,100,342,610		1,924,011,625		206,787,658		248,638,709			769,085,771		5,204,980,298
Adjustment from fair value to contract value for fully benefit-responsive investment contracts held		—		—		—		—		(3,170,728	)		—		(3,170,728	)

Net assets available for benefits	$	956,113,925	$	1,100,342,610	$	1,924,011,625	$	206,787,658	$	245,467,981		$	769,085,771	$	5,201,809,570

The following table presents the net assets available for benefits of the six master trust investment accounts as of December 31, 2008:


	U.S. Large										Alternative
	Cap Stock		International		Global Bond		U.S. Small Cap		Stable Value		Investments
	Fund		Stock Fund		Fund		Stock Fund		Fund		Fund		Total

Assets
Cash	$	—	$	—	$	33,975,280	$	1,442,382	$	—	$	17,500,000	$	52,917,662
Common collective trust funds		1,461,369,070		979,906,271		35,631,845		9,534,097		108,418,033		1,009,762		2,595,869,078
Fixed-income debt instruments		—		—		1,050,055,930		—		63,061,401		—		1,113,117,331
Exchange traded fund		—		—		—		198,239,914		—		—		198,239,914
Variable synthetic guaranteed investment contracts		—		—		—		—		2,561,092		—		2,561,092
Interest and dividends receivable		—		—		12,755,395		122,301		253,780		813		13,132,289
Receivable from brokers for securities sold		—		—		1,774,653		—		—		—		1,774,653
Receivable for investments sold on a delayed delivery basis		—		—		158,342,564		—		—		—		158,342,564
Wrapper contracts		—		—		—		—		183,707		—		183,707
Derivative assets		—		—		26,601,040		—		—		—		26,601,040
Marketable limited partnerships and corporations		—		—		—		—		—		185,174,113		185,174,113
Non-marketable limited partnerships		—		—		—		—		—		40,282,019		40,282,019
Investment of securities lending collateral		—		—		311,980,940		197,442,891		—		—		509,423,831

Total assets, at fair value		1,461,369,070		979,906,271		1,631,117,647		406,781,585		174,478,013		243,966,707		4,897,619,293

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

3. Master Trust Investment Accounts (continued)


	U.S. Large										Alternative
	Cap Stock		International		Global Bond		U.S. Small Cap		Stable Value		Investments
	Fund		Stock Fund		Fund		Stock Fund		Fund		Fund		Total

Liabilities
Accrued administrative fees	$	173,558	$	214,295	$	569,925	$	87,256	$	99,187	$	782,500	$	1,926,721
Payable to brokers for securities purchased		—		—		2,737,172		1,440,963		—		—		4,178,135
Payable for investments sold on a delayed delivery basis		—		—		245,027,573		—		—		—		245,027,573
Payable to brokers for collateral on deposit		—		—		9,830,030		—		—		—		9,830,030
Derivative liabilities		—		—		36,836,142		—		—		—		36,836,142
Securities sold, not yet purchased		—		—		20,795,253		—		—		—		20,795,253
Payable for securities lending collateral		—		—		340,075,155		197,442,891		—		—		537,518,046

Total liabilities, at fair value		173,558		214,295		655,871,250		198,971,110		99,187		782,500		856,111,900

Net assets available for benefits, at fair value		1,461,195,512		979,691,976		975,246,397		207,810,475		174,378,826		243,184,207		4,041,507,393
Adjustment from fair value to contract value for fully benefit- responsive investment contracts held		—		—		—		—		8,206,017		—		8,206,017

Net assets available for benefits	$	1,461,195,512	$	979,691,976	$	975,246,397	$	207,810,475	$	182,584,843	$	243,184,207	$	4,049,713,410

The following is a summary of the net investment income/(loss) in the master trust investment accounts for the year ended December 31, 2009:


																Alternative
	U.S. Large Cap			International			Global Bond			U.S. Small Cap			Stable Value			Investments
	Stock Fund			Stock Fund			Fund			Stock Fund			Fund			Fund			Total

Net realized and unrealized appreciation in fair value of investments	$	230,843,729		$	367,608,065		$	119,504,544		$	50,539,246		$	5,029,923		$	42,742,187		$	816,267,694
Interest and dividends		239,849			229,259			47,293,426			3,720,468			3,190,941			27,862			54,701,805
Administrative fees		(580,309	)		(899,684	)		(2,192,202	)		(66,639	)		(444,965	)		(3,639,828	)		(7,823,627	)

Net investment income	$	230,503,269		$	366,937,640		$	164,605,768		$	54,193,075		$	7,775,899		$	39,130,221		$	863,145,872

4. Fair Value

The Plan’s financial instruments and the master trust investment accounts are stated at fair value. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Plan considers the principal or most advantageous market in which the Plan would transact, and the Plan considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, redemption restrictions, and risk of non-performance.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)

The Plan’s financial instruments stated at fair value are detailed in the tables below, and the fair value of the Plan’s master trust investment accounts within the Master Trust are separately disclosed below the Plan’s investments.

Fair Value Hierarchy

The three levels of inputs that may be used to measure fair value are as follows:

Level 1. Quoted prices in active markets for identical assets or liabilities.

Level 1 assets and liabilities consist of certain of the Plan’s marketable fixed-income debt and equity instruments, registered mutual funds, exchange-traded derivative financial instruments, bonds held in the FMS GICs, and exchange traded funds that are traded in an active market with sufficient volume and frequency of transactions.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.

Level 2 assets consist of certain of the Plan’s marketable fixed-income debt instruments with quoted market prices that are traded in less active markets or priced using a quoted market price for similar instruments. Level 2 assets also include marketable fixed-income debt instruments priced using non-binding market consensus prices that can be corroborated with observable market data, as well as fixed-income debt instruments and derivative financial instruments priced using inputs that are observable in the market or can be derived principally from or corroborated with observable market data. Other marketable instruments in this category generally include certain of the Plan’s common collective trust funds, registered mutual funds, certain marketable limited partnerships or corporations that are redeemable in the near term, GICs, CDS GICs, and VS GICs.

Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

Fair Value (continued)

Level 3 assets and liabilities include certain of the Plan’s marketable limited partnerships or corporations that are not redeemable in the near term, non-marketable limited partnership investments that are not redeemable in the near term, wrapper contracts for both the FMS GICs and CDS GICs, participant loans, common collective trust funds with significant redemption restrictions, and fixed-income debt instruments whose values are determined using inputs that are both unobservable and significant to the values of the instruments being measured.

Assets Measured at Fair Value on a Recurring Basis

The Plan’s assets measured at fair value on a recurring basis, excluding accrued interest and dividends, cash, and administrative fees, consisted of the following types of instruments as of December 31, 2009:


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets for		Significant		Significant
	Identical		Other Observable		Unobservable
	Instruments		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets
Common collective trust funds:
Fixed-income funds	$	—	$	388,248	$	—	$	388,248
U.S. large cap equity funds		—		71,134,126		—		71,134,126
International equity funds		—		56,225,029		43,168,057		99,393,086
Intel Corporation common stock		350,848,143		—		—		350,848,143
Registered mutual funds:
Fixed-income funds		601,223,014		10,726,155		—		611,949,169
Balanced funds		113,775,762		—		—		113,775,762
U.S. large cap equity funds		1,001,292,506		—		—		1,001,292,506
U.S. small cap equity funds		483,486,390		—		—		483,486,390
International equity funds		419,989,254		—		—		419,989,254
Specialty funds		110,864,443		—		—		110,864,443
Participant loans		—		—		59,863,342		59,863,342

Total assets measured at fair value ¹	$	3,081,479,512	$	138,473,558	$	103,031,399	$	3,322,984,469


¹		For further fair value information on the assets held in the master trust investment accounts, see master trust investment accounts fair value disclosure below.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets for		Significant		Significant
	Identical		Other Observable		Unobservable
	Instruments		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets
Common collective trust funds	$	—	$	104,263,403	$	—	$	104,263,403
Intel Corporation common stock		257,883,169		—		—		257,883,169
Registered mutual funds		1,914,326,899		63,191,195		—		1,977,518,094
Participant loans		—		—		54,498,071		54,498,071

Total assets measured at fair value ¹	$	2,172,210,068	$	167,545,598	$	54,498,071	$	2,394,162,737


¹		For further fair value information on the assets held in the master trust investment accounts, see master trust investment accounts fair value disclosure below.

The table below presents a reconciliation for the Plan’s assets and liabilities measured at fair value on a recurring basis, excluding accrued interest and dividends, cash, and administrative fees, using significant unobservable inputs (Level 3) for 2009:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
			Common
	Participant		Collective Trust
	Loans		Funds			Total

Balance as of December 31, 2008	$	54,498,071	$	—		$	54,498,071
Total gains/(losses) (realized and unrealized)		—		18,340,040			18,340,040
Purchases, sales, issuances, and settlements, net		5,365,271		(433,513	)		4,931,758
Transfers in (out) of Level 3		—		25,261,530			25,261,530

Balance as of December 31, 2009	$	59,863,342	$	43,168,057		$	103,031,399

The Plan did not have any financial liabilities as of December 31, 2009 and 2008. The Plan did not have any assets or liabilities that are measured at fair value on a non-recurring basis as of December 31, 2009 and 2008.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)

The master trust investment accounts’ assets and liabilities measured at fair value on a recurring basis, excluding accrued interest and dividends, cash, and administrative fees, consisted of the following types of instruments as of December 31, 2009 for the six asset class master trust investment accounts:


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets
Subscriptions paid in advance	$	199,000,000	$	—	$	—	$	199,000,000
Common collective trust funds:
Fixed-income funds		—		1,175,392,528		—		1,175,392,528
U.S. large cap equity funds		—		847,516,500		—		847,516,500
U.S. small cap equity funds		—		7,805,488		—		7,805,488
International equity funds		—		1,011,843,110		88,666,790		1,100,509,900
U.S. corporate bonds		2,447,042		274,122,511		4,067,448		280,637,001
International corporate bonds		—		63,036,917		492,119		63,529,036
U.S. government bonds		212,543,835		99,684,546		—		312,228,381
International government bonds		—		205,550,172		—		205,550,172
Municipal bonds		—		4,710,668		—		4,710,668
Residential mortgage-backed securities		—		3,178,242		—		3,178,242
Commercial mortgage-backed securities		—		93,844,841		980,640		94,825,481
Collateralized debt obligations		—		79,930,251		—		79,930,251
Other fixed-income debt instruments		17,113,698		10,184,619		—		27,298,317
Exchange traded fund		198,077,700		—		—		198,077,700
Mutual fund		108,621,212		—		—		108,621,212
Traditional guaranteed investment contracts		—		6,166,156		—		6,166,156
Variable synthetic guaranteed investment contracts		—		2,601,975		—		2,601,975
Receivable from brokers for securities sold		853,991		—		—		853,991
Receivable for investments sold on a delayed delivery basis		226,328,014		—		—		226,328,014
Wrapper contracts		—		—		69,266		69,266
Derivative assets		11,428,802		8,095,876		—		19,524,678
Marketable limited partnerships or corporations		—		381,961,010		2,349,394		384,310,404
Non-marketable limited partnerships		—		—		83,767,266		83,767,266
Investments of securities lending collateral		—		304,950,439		—		304,950,439

Total assets measured at fair value	$	976,414,294	$	4,580,575,849	$	180,392,923	$	5,737,383,066

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Liabilities
Payable to brokers for securities purchased	$	1,855,311	$	—	$	—	$	1,855,311
Payable for investments purchased on a delayed delivery basis		102,789,615		—		—		102,789,615
Payable to brokers for collateral on deposit		4,380,000		—		—		4,380,000
Derivative liabilities		4,492,018		11,153,167		—		15,645,185
Securities sold, not yet purchased		152,048,004		—		—		152,048,004
Payable for securities lending collateral		314,933,118		—		—		314,933,118

Total liabilities measured at fair value	$	580,498,066	$	11,153,167	$	—	$	591,651,233


The master trust investment accounts’ assets and liabilities measured at fair value on a recurring basis, excluding accrued interest and dividends, cash, and administrative fees, consisted of the following types of instruments as of December 31, 2008 for the six asset class master trust investment accounts:

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

Assets
Common collective trust funds	$	—	$	2,595,869,078	$	—	$	2,595,869,078
Fixed-income debt instruments		300,209,381		809,148,743		3,759,207		1,113,117,331
Exchange traded fund		198,239,914		—		—		198,239,914
Variable synthetic guaranteed investment contracts		—		2,561,092		—		2,561,092
Receivable from brokers for securities sold		1,774,653		—		—		1,774,653
Receivable for investments sold on a delayed delivery basis		158,342,564		—		—		158,342,564
Wrapper contracts		—		—		183,707		183,707
Derivative assets		1,713,330		24,887,710		—		26,601,040
Marketable limited partnerships or corporations		—		151,516,830		33,657,283		185,174,113
Non-marketable limited partnerships		—		—		40,282,019		40,282,019
Investments of securities lending collateral		—		509,423,831		—		509,423,831

Total assets measured at fair value	$	660,279,842	$	4,093,407,284	$	77,882,216	$	4,831,569,342

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)


	Fair Value Measurements at Reporting Date Using
	Quoted Prices in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total

Liabilities
Payable to brokers for securities purchased	$	4,178,135	$	—	$	—	$	4,178,135
Payable for investments purchased on a delayed delivery basis		245,027,573		—		—		245,027,573
Payable to brokers for collateral on deposit		9,830,030		—		—		9,830,030
Derivative liabilities		—		36,836,142		—		36,836,142
Securities sold, not yet purchased		—		20,795,253		—		20,795,253
Payable for securities lending collateral		537,518,046		—		—		537,518,046

Total liabilities measured at fair value	$	796,553,784	$	57,631,395	$	—	$	854,185,179

The table below provides a summary of each of the master trust investment accounts by the fair value inputs, excluding accrued interest and dividends, cash, and administrative fees, used in the measurement as of December 31, 2009.


											Alternative
	U.S. Large Cap		International		Global Bond		U.S. Small Cap		Stable Value		Investments
	Stock Fund		Stock Fund		Fund		Stock Fund		Fund		Fund		Total

Assets
Level 1	$	108,621,212	$	—	$	406,890,699	$	198,077,700	$	—	$	262,824,683	$	976,414,294
Level 2		847,516,500		1,011,843,110		1,861,801,535		199,218,397		248,339,797		411,856,510		4,580,575,849
Level 3		—		88,666,790		5,540,207		—		69,266		86,116,660		180,392,923

Total assets measured at fair value	$	956,137,712	$	1,100,509,900	$	2,274,232,441	$	397,296,097	$	248,409,063	$	760,797,853	$	5,737,383,066


Liabilities
Level 1	$	—	$	—	$	361,703,345	$	191,412,909	$	—	$	27,381,812	$	580,498,066
Level 2		—		—		11,153,167		—		—		—		11,153,167

Total liabilities measured at fair value	$	—	$	—	$	372,856,512	$	191,412,909	$	—	$	27,381,812	$	591,651,233

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)


											Alternative
	U.S. Large Cap		International		Global Bond		U.S. Small Cap		Stable Value		Investments
	Stock Fund		Stock Fund		Fund		Stock Fund		Fund		Fund		Total

Assets
Level 1	$	—	$	—	$	462,039,928	$	198,239,914	$	—	$	—	$	660,279,842
Level 2		1,461,369,070		979,906,271		1,118,587,837		206,976,988		174,040,526		152,526,592		4,093,407,284
Level 3		—		—		3,759,207		—		183,707		73,939,302		77,882,216

Total assets measured at fair value	$	1,461,369,070	$	979,906,271	$	1,584,386,972	$	405,216,902	$	174,224,233	$	226,465,894	$	4,831,569,342


Liabilities
Level 1	$	—	$	—	$	597,669,930	$	198,883,854	$	—	$	—	$	796,553,784
Level 2		—		—		57,631,395		—		—		—		57,631,395

Total liabilities measured at fair value	$	—	$	—	$	655,301,325	$	198,883,854	$	—	$	—	$	854,185,179

The table below presents a reconciliation for the master trust investment accounts’ assets and liabilities measured at fair value on a recurring basis, excluding accrued interest and dividends, cash, and administrative fees, using significant unobservable inputs (Level 3) for 2009:


	Fair Value Measurements Using Significant Unobservable Inputs
	(Level 3)
										Marketable
	Fixed-Income						Common			Limited			Non-Marketable
	Debt			Wrapper			Collective Trust			Partnerships or			Limited		Total Gains/
	Instruments			Contracts			Funds			Corporations			Partnerships		(Losses)

Balance as of December 31, 2008	$	3,759,207		$	183,707		$	—		$	33,657,283		$	40,282,019
Total gains/(losses) (realized and unrealized)		(368,715	)		(114,441	)		43,526,181			5,941,261			2,597,016	$	51,581,302
Purchases, sales, issuances, and settlements, net		2,234,319			—			(16,154,549	)		(22,799,395	)		40,888,231
Transfers in/(out) of Level 3		(84,604	)		—			61,295,158			(14,449,755	)		—

Balance as of December 31, 2009	$	5,540,207		$	69,266		$	88,666,790		$	2,349,394		$	83,767,266


The amount of total gains/(losses) for the period included in changes in net assets attributable to the changes in unrealized gains/(losses) related to assets and liabilities still held as of December 31, 2009	$	(27,232	)	$	(114,441	)	$	50,401,826		$	1,703,892		$	2,149,802	$	54,113,847

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)

Changes in net assets are included in the master trust investment accounts net increase/(decrease) for the year ended December 31, 2009 and are disclosed in net investment income/(loss) as follows:


	Level 3
	Net Investment
	Income/(Loss)
Total gains/(losses) included in net change in assets	$	51,581,302
Change in unrealized gains/(losses) related to assets and liabilities still held as of December 31, 2009		54,113,847

The master trust investment accounts did not have any assets or liabilities that are measured at fair value on a non-recurring basis as of December 31, 2009 and 2008.

Fair Value Estimated using Net Asset Value per Share

The Plan and master trust investment accounts invest in funds that calculate net asset value per share and primarily consist of investments in funds where they co-invest with third-party investors. The investments consist of common collective trust funds, marketable limited partnerships or corporations, and non-marketable limited partnership investments. The private equity, private energy and real estate funds are primarily closed-end funds, which are not eligible for redemption until a date in the future that currently cannot be determined. The liquidation of these investments are likely to occur at different times over the next 10 years.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)

The following table presents the Plan’s and the master trust investment accounts’ fair values, future investment commitments, and redemption conditions for funds that calculate net asset value per share as of December 31, 2009:

Future

Redemption

Type

Fair Value

Commitments

Frequency

Notice Period

Absolute return hedge funds (a)

216,444,462

Monthly to annual

5 to 90 days

Long/short equity hedge funds (b)

167,865,942

Quarterly to annual

30 to 65 days

Private real estate funds (c)

12,739,933

47,000,000

None

Private energy and natural resource funds (d)

14,778,982

42,000,000

None

Private equity and venture capital funds (e)

56,248,351

112,000,000

None

Fixed-income common collective trust funds (f)

1,175,780,776

Daily

1 to 3 days

U.S. large cap equity common collective trust funds (g)

918,650,626

Daily

1 to 3 days

U.S. small cap equity common collective trust funds (h)

7,805,488

Daily

1 to 3 days

International equity common collective trust funds (i)

1,068,068,139

Daily

1 to 5 days

International equity common collective trust funds (i)

131,834,847

2% maximum monthly

5 days

Total

3,770,217,546

201,000,000


(a)		The absolute return hedge fund category generally involves strategies such as relative value, event driven and directional. Relative value strategy seeks return by capitalizing on perceived mis-pricing of related securities or financial instruments, and generally avoids taking a directional bias with regard to price movement of securities and markets overall. Event driven strategy focuses on identifying and analyzing securities that can benefit from occurrence of an extraordinary transaction or event (e.g., restructurings, takeovers, mergers, spin-offs, bankruptcy). Directional strategy takes a bias based on price movement of securities and/or markets.

(b)		The long/short equity hedge fund category maintains some level of market exposure (either net long or net short). Portfolios are built based on positive and negative views on equities. Examples include U.S., dedicated non-U.S., global, regional, sector focused or short-biased funds.

(c)		Private real estate funds seek out value added and opportunistic positions. These funds typically will include global exposure which includes emerging markets.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

4. Fair Value (continued)


(d)		Private energy and natural resource funds’ strategies focus in areas such as hydrocarbon reserves, infrastructure, timber, mining or minerals. These funds invest across the globe.

(e)		Private equity and venture capital funds utilize strategies that include venture capital funding of exceptional growth potential enterprises, U.S. and global private equity investments in non-publicly traded securities and special situations such as distressed, opportunist or secondary market positions.

(f)		The fixed-income funds invest in short-term and long-term U.S. government bonds and some of the funds seek to replicate the performance of the Barclays Capital 1–3 Year Treasury Bond Index and Barclays Capital 1–3 Year Agency Bond Index over the long term.

(g)		The funds seek to match or exceed the performance of the Russell 1000 Index. The Russell 1000 Index focuses on the large and mid capitalization segment of the market, with approximately 90 percent coverage of U.S. stocks.

(h)		The funds seek to match or exceed the performance of the Russell 2000 Index, a free float-adjusted market capitalization index representing 2000 small company stocks of U.S. domiciled companies.

(i)		The funds seek to provide exposure to developed and emerging market stocks outside the U.S. Approximately 80% of the funds are invested in developed international stocks, as represented by the MSCI EAFE Index. The residual 20% is invested in emerging market stocks as represented by the MSCI EM Index.

5. Investments

The fair value of individual investments that represent 5% or more of the fair value of the Plan’s net assets available for benefits at year-end are as follows:


	December 31
	2009		2008

Mutual funds:
American Funds EuroPacific Growth Fund	$	214,800,077	$	148,626,143
Fidelity Contrafund		254,887,193		187,521,542
Fidelity Low-Priced Stock Fund		238,150,567		167,803,318
Fidelity U.S. Treasury Money Market ¹		—		156,231,113
Vanguard Institutional Index Fund		215,438,518		163,155,571
Common stock:
Intel Corporation		350,848,143		257,883,169


¹		The Fidelity U.S. Treasury Money Market was not an investment option as of December 31, 2009.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

5. Investments (continued)

During 2009, the Plan’s investments (including investments purchased, sold, and held during the year) increased in fair value as follows:


	Year Ended
	December 31
	2009
Net realized and unrealized appreciation in fair value of investments:
Registered mutual funds	$	560,947,192
Common collective trust funds		58,696,863
Intel Corporation common stock		102,604,249

Net realized and unrealized appreciation in fair value of investments	$	722,248,304

6. Investment Contracts

The Stable Value Fund holds investment contracts with insurance companies and banks in order to provide participants with a stable, fixed-rate return on investment and protection of principal from changes in market interest rates. Standish has discretionary authority for the purchase and sale of investments in the Stable Value Fund, subject to the general investment policies of the Investment Policy Committee.

The Traditional GICs crediting rate is based upon the rate that is agreed to when the insurance company writes the contract and is generally fixed for the life of the contract. The initial crediting rate for both the CDS GICs and the FMS GICs is set based on the market interest rates at the time that the initial asset is purchased and is guaranteed to have an interest crediting rate not less than zero percent. The CDS GICs crediting rate and the FMS GICs crediting rate reset every quarter based on the book value of the contract, the market value of the underlying assets, and the average duration of the underlying assets. The crediting rate for CDS GICs aims at converging the book value of the contract and the market value of the contract and therefore will be affected by interest rate and market changes. The VS GICs crediting rate is reset every quarter based on the then current market index rates and investment spread. The investment spread is established when the contract is issued and is guaranteed by the issuer for the life of the investment.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

6. Investment Contracts (continued)

Certain events may limit the ability of the Stable Value Fund to transact at contract value with the issuers. Such events include the following:

	•		default of wrap provider;

	•		default of an underlying bond issuer with material impact on the fund;

	•		employer initiated events that are within the control of the plan sponsor that would have a material and adverse impact on the fund;

	•		employer communications designed to induce participants to transfer from the fund;

	•		competing fund transfer or violation of equity wash or equivalent rules in place; and

	•		changes in qualification status of the employer or the plans participating in the fund.

If any such event occurs, market value would likely be used in determining the payouts to the participants.

In general, issuers may terminate the contract and settle at other than contract value if there is a change in the qualification status of the employer or the Plan, if there is a breach of material obligations under the contract and misrepresentations by the contract holder, if the market and book values diverge dramatically, or if there is a failure of the underlying portfolio to conform to the pre-established investment guidelines.

The FMS GICs and CDS GICs use wrapper contracts in order to manage market risks and to alter the return characteristics of the underlying portfolio of securities owned by the Stable Value Fund to match certain fixed-income fund objectives. Wrapper contracts generally change the investment characteristics of underlying securities (such as corporate debt or U.S. government securities) to those of traditional GICs. The wrapper contracts provide that benefit-responsive distributions for specific underlying securities may be withdrawn at contract or face value. Benefit-responsive distributions are generally defined as a withdrawal on account of a participant’s retirement, disability, or death, or participant-directed transfers in accordance with the terms of the Plan.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

6. Investment Contracts (continued)

The investment contracts owned by the Stable Value Fund earned the following average yields:


	Years Ended
	December 31
	2009		2008

Earned by the Plan		3.41%		4.47%
Credited to participants		3.27%		4.34%

7. Party-In-Interest Transactions

Approximately 9% of the Plan’s net assets available for benefits are shares of the company’s common stock. Transactions in shares of the company’s common stock qualify as party-in-interest transactions under the provisions of ERISA. During 2009, the Plan made purchases of the company’s common stock of $17,237,412 and sales and distributions of $26,876,687.

As a result of the turmoil in the financial markets in 2008, the net asset value of the Reserve Primary Institutional Fund, a money market registered mutual fund, dropped below $1.00 per share. The Reserve Primary Institutional Fund did not meet redemption requests and received approval from the Securities and Exchange Commission to temporarily suspend payments to investors. The fund subsequently proceeded with a complete liquidation. In 2008, the company decided to guarantee at least 75% of every participant’s investment in this fund. To accomplish this, the company made a loan to the Plan in the amount of $118,183,075, which was 75% of the amount participants had invested in the Reserve Primary Institutional Fund as of September 15, 2008. The loan was unsecured with interest free repayments to be paid solely from future distributions from the Reserve Primary Institutional Fund. The loan proceeds were used to transfer 75% of each participant’s investment in the Reserve Primary Institutional Fund to the Fidelity U.S. Treasury Money Market Fund. The distributions from the Reserve Primary Institutional Fund were sufficient to completely repay the loan before the end of 2008. In addition, the company agreed that if the per share price it receives for company-owned shares of the Reserve Primary Institutional Fund in the liquidation exceeds the per share price received by the Plan for its shares, it will make a payment to the Plan equal to the difference. During 2009, the Plan received pro-rata distributions from the liquidation of the Reserve Primary Institutional Fund. As of January 29, 2010, the Plan has received $.987 per share and approximately 99% of the assets of the Reserve Primary Institutional Fund has been returned to investors.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

7. Party-In-Interest Transactions (continued)

In 2008, the net asset value of the Mellon Trust of New England, N.A. Pooled Employee Daily Liquidity Fund (Liquidity Fund), a short-term investment vehicle which the Plan, the Intel Profit Sharing Plan, the Intel Pension Plan, and the master trust investment accounts utilize to hold operating cash, fell below $1.00 per unit in September 2008 due to the Liquidity Fund’s exposure to Lehman Brothers Holdings Inc. (Lehman). In 2008, Mellon, a related party to the Plan, reimbursed the Liquidity Fund for its losses due to the Lehman bankruptcy. The portion of the amount Mellon reimbursed the Liquidity Fund attributed to the Plan, the Intel Profit Sharing Plan, the Intel Pension Plan, and the master trust investment accounts was $381,181.

8. Derivative Financial Instruments

The Plan, either directly or through the master trust investment accounts, invests in common collective trust funds, marketable limited partnerships or corporations, and non-marketable limited partnerships, which can purchase derivatives consistent with their offering documents and prospectuses. The Plan does not directly hold any derivatives that are designated as hedging instruments.

During 2008, the Plan added the Global Bond Fund which consists of separately managed accounts. The investment managers of these accounts may use derivatives, consistent with the objective of the account, to hedge a portion of the investments to limit or minimize exposure to certain risks and to gain access to markets more efficiently. During 2009, the Alternative Investments Fund added a separately managed account to gain exposure to the commodities market. The investment manager of that account invests in commodity futures, consistent with the objective of the account, to provide investment diversification and inflation protection. The investment managers do not employ leverage in the use of derivatives. Following is a summary of the significant accounting policies associated with the use of derivatives by the Alternative Investments Fund and Global Bond Fund.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Currency Forward Contracts

The Global Bond Fund has investments that are denominated in foreign currencies and utilizes currency forward contracts to hedge a portion of the currency exposure for these investments. Currency forward contracts are generally marked-to-market at the prevailing forward exchange rate of the underlying currencies, and the difference between contract value and market value is recorded as unrealized appreciation/(depreciation). When the currency forward contract is closed, the Global Bond Fund transfers the unrealized appreciation/(depreciation) to a realized gain/(loss) equal to the change in the value of the currency forward contract when it was opened and the value at the time it was closed. Sales and purchases of currency forward contracts having the same settlement date and broker are offset, and any gain/(loss) is realized on that date. At the end of the year, open currency forward contracts are recorded as a derivative asset if the market value of the contract has appreciated or as a derivative liability if depreciated.

Certain risks may arise upon entering into a currency forward contract from the potential inability of counterparties to meet the terms of their contracts. The Global Bond Fund seeks to control this risk by evaluating the creditworthiness of potential counterparties and establishing credit limits. Additionally, when utilizing currency forward contracts, the Global Bond Fund gives up the opportunity to profit from favorable exchange rate movements during the term of the contract.

Futures Contracts

A futures contract is a contractual agreement to deliver or receive a commodity or financial instrument at a specific date in the future at an agreed upon price. The Global Bond Fund uses fixed-income futures contracts to manage exposure to the market. The Alternative Investments Fund uses commodity futures contracts to manage inflation risk and provide investment diversification. Buying futures typically increases the exposure to the underlying instrument. Selling futures typically decreases the exposure to the underlying instrument held, or hedges the fair value of the other investments.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Futures contracts are valued at the last settlement price at the end of each day on the exchange upon which they are traded. Upon entering into a futures contract, the Global Bond Fund and the Alternative Investments Fund are required to deposit either in cash or securities an amount (“initial margin”) equal to a certain percentage of the nominal value of the contract. Pursuant to the futures contract, the Global Bond Fund and the Alternative Investments Fund agree to receive from, or to pay to, the broker an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments, known as “variation margin,” are generally settled daily and are included in the unrealized appreciation/(depreciation) on futures contracts. Each separately managed account maintains its own variation margin accounts, and there is a separate variation margin account for each exchange used in the separately managed account. At the end of the year, the net amount of the variation margin accounts is recorded as a derivative asset if it has a positive balance or as a derivative liability if it has a negative balance.

Futures contracts involve, to varying degrees, credit and market risks. The Global Bond Fund and the Alternative Investments Fund enter into exchange traded futures contracts where the broker acts as the clearinghouse for and counterparty to the transactions. Thus, credit risk on such transactions is mitigated by having an exchange that regulates margin requirements for futures contracts and capital requirements for clearinghouses, and by the ability of clearinghouses to net customer trades. The daily settlement process on the futures contracts serves to greatly reduce credit risk. Losses in value may arise from changes in the value of the underlying instruments or if there is an illiquid secondary market for the contracts. In addition, there is the risk that there may not be an exact correlation between a futures contract and the underlying index, commodity, or security.

The Global Bond Fund had securities pledged as collateral for futures contracts with a fair value of $3,446,003 as of December 31, 2009 and $3,500,564 as of December 31, 2008.

Swap Agreements

The Global Bond Fund enters into swap agreements to exchange or swap investment cash flows, assets, or market-linked returns at specified future intervals with counterparties. The Global Bond Fund has entered into interest rate and credit default swap agreements to manage its exposure to interest rates and credit risk. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Swaps are marked-to-market daily based on quotations supplied by an exchange, a pricing service, or a major market maker (or dealer), and the change in value, if any, is recorded as unrealized appreciation/(depreciation). Realized gain/(loss) is recorded upon termination or maturity of the swap. At the end of the year, outstanding swaps with a positive fair value are recorded as a derivative asset, and those with a negative fair value are recorded as a derivative liability.

Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized in the statements of net assets available for benefits. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.

The Global Bond Fund has entered into various derivative transactions that are considered credit derivatives. The Global Bond Fund writes and purchases credit default swaps primarily through credit default swap indices, but may also do so on a single name or basket basis. The use of credit default swaps provides the Global Bond Fund with flexibility in adjusting the yield curve and credit characteristics of the portfolio. Credit default swaps can provide access to exposure that may not be available in the financial markets.

The following table contains the notional value of the Global Bond Fund’s written credit derivatives as of December 31, 2009:


	Notional Value of Credit Default Swaps
							Total Written
Credit Spread on					10 Years or		Credit
Underlying (Basis Points)¹	0-5 Years		5-10 Years		Greater		Derivatives²

Less than 1,000	$	2,100,000	$	—	$	—	$	2,100,000
Between 1,000 and 2,000		—		—		—		—
Greater than 2,000		—		—		7,453,290		7,453,290

Total	$	2,100,000	$	—	$	7,453,290	$	9,553,290


¹		Credit spread on the underlying, together with the period of expiration are indicators of payment/performance risk. The likelihood of payment or performance is greater as credit spread on the underlying and period of expiration increase.

²		All credit default swaps written are investment grade quality.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

The following table contains the notional value of the Global Bond Fund’s written credit derivatives as of December 31, 2008:


	Notional Value of Credit Default Swaps
							Total Written
Credit Spread on					10 Years or		Credit
Underlying (Basis Points)¹	0-5 Years		5-10 Years		Greater		Derivatives²

Less than 1,000	$	1,800,000	$	292,800	$	—	$	2,092,800
Between 1,000 and 2,000		—		1,000,000		2,777,711		3,777,711
Greater than 2,000		—		—		4,800,000		4,800,000

Total	$	1,800,000	$	1,292,800	$	7,577,711	$	10,670,511


¹		Credit spread on the underlying, together with the period of expiration are indicators of payment/performance risk. The likelihood of payment or performance is greater as credit spread on the underlying and period of expiration increase.

²		All credit default swaps written are investment grade quality.

The maximum payouts for contracts are limited to the notional values of each derivative contract. Typical credit events include bankruptcy, failure to pay, debt restructuring, obligation default, and repudiation. The settlement terms of credit default swaps are determined when the credit default swap contract is written.

The Global Bond Fund did not have any securities pledged as collateral for swap agreements as of December 31, 2009. The Global Bond Fund had assets pledged as collateral for swap agreements with a fair value of $8,391,959 as of December 31, 2008.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Options Contracts

The Global Bond Fund writes call and put options on futures, swaps (swaptions), securities, or currencies it owns or in which it may invest. Writing put options increases the Global Bond Fund’s exposure to the underlying instrument. Writing call options decreases the Global Bond Fund’s exposure to the underlying instrument. When the Global Bond Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. These liabilities are reflected as derivative liabilities in the statements of net assets available for benefits. Premiums received from writing options which expire out of the money are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security, or currency transaction to determine the realized gain or loss. As a writer of an option, the Global Bond Fund has no control over whether the underlying future, swap, security, or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, swap, security, or currency underlying the written option. There is a risk that the Global Bond Fund may not be able to enter into a closing transaction because of an illiquid market.

The Global Bond Fund also purchases put and call options. Purchasing call options increases the Global Bond Fund’s exposure to the underlying instrument. Purchasing put options decreases the Global Bond Fund’s exposure to the underlying instrument. The Global Bond Fund pays a premium which is included in the Global Bond Fund’s statement of net assets available for benefits as an investment and subsequently marked-to-market to reflect the current value of the options. Premiums paid for purchasing options which expire out of the money are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future, swap, security, or currency transaction to determine the realized gain or loss.

At the end of the year, the total fair value of the open options is recorded as a derivative asset if the fair value is positive, or as a derivative liability if the fair value is negative.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Volume of Derivative Activity

Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:


	December 31, 2009				December 31, 2008
			Alternative
	Global Bond		Investments
	Fund		Fund		Global Bond Fund
Currency forward contracts	$	371,170,311	$	—	$	265,500,793
Financial futures		763,094,906		—		114,686,038
Commodity futures		—		78,943,831		—
Interest rate swaps		148,233,599		—		294,816,400
Credit default swaps		56,388,490		—		107,785,711
Options on financial futures		639,391,276		—		695,591,477
Swaptions		43,100,000		—		—

Total	$	2,021,378,582	$	78,943,831	$	1,478,380,419

The gross notional amounts for currency forward contracts by currency were as follows:


	December 31
	2009		2008

Australian dollar	$	25,436,856	$	10,186,135
Brazil real		20,232,415		633,760
British pound sterling		42,271,052		37,747,257
Canadian dollar		18,164,761		7,780,895
Chinese yuan		13,412,839		1,681,417
Danish krone		12,423,735		11,027,092
Euro		116,739,021		76,508,666
Hong Kong dollar		1,768,997		1,768,655
Indian rupee		15,948		937,768
Japanese yen		98,170,321		92,627,722
Malaysian ringgit		3,766		151,189
Mexican peso		86,691		—
New Zealand dollar		5,307,064		—
Norwegian krone		1,519,633		—
Polish zloty		—		5,285,895
Russian rubel		—		6,947,028
South Korean won		3,784,098		2,276,320
Swedish krona		8,944,885		9,940,994
Swiss franc		1,168,723		—
Taiwan dollar		1,719,506		—

Total	$	371,170,311	$	265,500,793

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

Credit-Risk-Related Contingent Features

None of the derivative instruments contain credit-risk-related contingent features. Credit ratings are not applicable to the Plan and the master trust investment accounts.

Fair Values of Derivative Instruments

None of the derivative instruments used in the Alternative Investments Fund and the Global Bond Fund were designated as hedging instruments.

The fair values of the derivative instruments included in the net assets available for benefits of the Global Bond Fund and the Alternative Investments Fund as of December 31, 2009 were as follows:


					Alternative Investments
	Global Bond Fund				Fund
	Derivative		Derivative		Derivative		Derivative
	Asset		Liability		Asset		Liability

Currency forward contracts	$	4,083,084	$	4,466,536	$	—	$	—
Financial futures		5,041,582		3,461,493		—		—
Commodity futures		—		—		6,347,094		853,652
Interest rate swaps		2,405,361		1,541,502		—		—
Credit default swaps		1,607,431		4,711,596		—		—
Options on financial futures		40,126		176,873		—		—
Swaptions		—		433,533		—		—

Total	$	13,177,584	$	14,791,533	$	6,347,094	$	853,652

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

8. Derivative Financial Instruments (continued)

The fair values of the derivative instruments included in the net assets available for benefits of the Global Bond Fund as of December 31, 2008 were as follows:


	Global Bond Fund
	Derivative		Derivative
	Asset		Liability

Currency forward contracts	$	11,672,623	$	8,787,606
Financial futures		142,229		—
Interest rate swaps		7,521,900		23,390,560
Credit default swaps		5,693,188		4,657,976
Options on financial futures		1,571,100		—

Total	$	26,601,040	$	36,836,142

All derivative gains/(losses) were recorded as net realized and unrealized appreciation/(depreciation) in fair value of investments and related interest income was excluded. The effects of derivative instruments on the net realized and unrealized appreciation/(depreciation) in fair value of investments for the Global Bond Fund and the Alternative Investments Fund for the year ended December 31, 2009 were as follows:


				Alternative
	Global Bond			Investments
	Fund			Fund

Currency forward contracts	$	1,127,308		$	—
Financial futures		(924,695	)		—
Commodity futures		—			3,943,508
Interest rate swaps		7,302,589			—
Credit default swaps		(1,912,957	)		—
Options on financial futures		(168,498	)		—
Swaptions		655,348			—

Total	$	6,079,095		$	3,943,508

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

9. Securities Lending

The Master Trust has securities lending agreements with Mellon relating to the assets in the Global Bond Fund and the Alternative Investments Fund, and a securities lending agreement with BlackRock Institutional Trust Company (BlackRock) relating to the assets in the U.S. Small Cap Stock Fund. The master trust investment accounts lend securities to other qualified financial institutions, provided such loans are callable at any time and are at all times fully secured by cash, cash equivalents, or securities issued or guaranteed by the U.S. government or its agencies. The master trust investment accounts may bear the risk of delay in recovery of, or even of rights in, the securities loaned if the borrower of the securities fails financially. Consequently, loans of securities are only made to firms deemed to be creditworthy. The master trust investment accounts are also subject to investment risk in connection with investment of the collateral. The master trust investment accounts receive compensation for lending their securities, either in the form of fees or by retaining a portion of the return on the investment of any cash received as collateral.

Cash collateral is recorded as an asset with a corresponding liability on the statements of net assets available for benefits. For lending agreements collateralized by securities, the collateral is not recorded as an asset or a liability, unless the collateral is repledged. All collateral received will be in an amount equal to at least 102% of the fair value of the U.S. loaned securities and 105% of the fair value of foreign loaned securities. It is intended that the collateral will be maintained at that level during the period of the loan. The fair value of the loaned securities is determined at the close of business, and any additional required collateral is delivered the next business day. The master trust investment accounts do not have the right to sell or repledge securities pledged as collateral. During the loan period, the funds continue to retain rights of ownership, including dividends and interest of the loaned securities.

The following is a summary of the collateral held and the fair value of securities on loan for the master trust investment accounts as of December 31, 2009:


			Securities				Fair Value of
	Cash		Held as		Total		Loaned
	Collateral		Collateral		Collateral		Securities

Global Bond Fund	$	87,009,370	$	—	$	87,009,370	$	94,917,527
U.S. Small Cap Stock Fund		191,412,909		—		191,412,909		187,525,298
Alternative Investments Fund		26,528,160		—		26,528,160		25,998,446

Total	$	304,950,439	$	—	$	304,950,439	$	308,441,271

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

9. Securities Lending (continued)

The following is a summary of the collateral held and the fair value of securities on loan as of December 31, 2008:


			Securities				Fair Value
	Cash		Held as		Total		of Loaned
	Collateral		Collateral		Collateral		Securities

Global Bond Fund	$	311,980,940	$	5,296,414	$	317,277,354	$	338,962,494
U.S. Small Cap Stock Fund		197,442,891		—		197,442,891		192,332,691

Total	$	509,423,831	$	5,296,414	$	514,720,245	$	531,295,185

A gain was generated from securities lending arrangements totaling $20,280,799 for the year ended December 31, 2009. The $20,280,799 gain was comprised of $2,169,262 of securities lending income and a $18,111,537 gain recorded to the Global Bond Fund. The gain was a result of the change in the value of its securities lending program’s collateral pool. The loss decreased to $9,982,678 at December 31, 2009 from $28,094,215 at December 31, 2008. The gain was included in the net realized and unrealized appreciation/(depreciation) in fair value of investments in the summary of net investment income in the asset class master trust investment accounts as disclosed in Note 3: Master Trust Investment Accounts.

On April 7, 2009, Mellon terminated the collective securities lending collateral pool and the Global Bond Fund received its pro rata interest in the collateral pool to be held as a separate account within the Master Trust. Subsequently, the Investment Policy Committee has discretionary authority over the investment policy for the separate account, and they revised the investment policy to conform to the U.S. Securities and Exchange Commission guidelines for money market funds. Effective January 1, 2010, State Street Bank and Trust Company became the investment manager for the securities lending collateral pool for the Global Bond Fund and the Alternatives Investment Fund.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

10. Concentration of Credit Risk

The Plan’s exposure to a concentration of credit risk is limited by the diversification of investments across multiple participant-directed fund elections. With the exception of the Intel Stock Fund, the investments within each participant-directed fund election are further diversified into varied financial instruments. The Intel Stock Fund invests in a single security. The Plan’s exposure to credit risk on the wrapper contracts is limited to the fair value of the contracts with each counterparty. Collateral has been obtained and secured against investments whenever deemed necessary. The Plan has exposure to currency exchange rate risk on non-U.S.-dollar-denominated investments in debt and equity instruments which are generally managed through offsetting derivative instruments to reduce foreign currency exposure.

11. Income Tax Status

The Plan has received a determination letter from the IRS dated February 7, 2006, stating that the Plan is qualified under Section 401(a) of the Code, and therefore the related trust is exempt from taxation. Subsequent to this issuance of the determination letter, the Plan was amended and restated. A new application for a favorable determination letter was timely filed; however, a final letter has not yet been issued by the IRS. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan sponsor believes the Plan is being operated in compliance with the applicable requirements of the Code and has indicated that it will take the necessary steps, if any, to maintain the qualified status of the Plan. Therefore, the plan sponsor believes that the Plan, as amended and restated, is qualified and the related trust is tax-exempt.

12. Plan Termination

The company has the right under the Plan to amend and terminate the Plan at any time for any reason. In the event of a plan termination, participants will remain 100% vested in their accounts.

Intel Corporation 401(k) Savings Plan

Notes to Financial Statements (continued)

13. Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:


	December 31
	2009		2008

Net assets available for benefits per the financial statements	$	4,098,511,843	$	2,952,698,646
Adjustment between fair value and contract value related to fully benefit-responsive investment contracts held by the Stable Value Fund master trust investment account		2,282,924		(6,604,779	)

Net assets available for benefits per the Form 5500	$	4,100,794,767	$	2,946,093,867

The following is a reconciliation of net investment income per the financial statements for the year ended December 31, 2009, to the Form 5500:


Net investment income from participation in master trust investment accounts per the financial statements	$	132,153,048
Change in adjustment between fair value and contract value related to fully benefit-responsive investment contracts held by the Stable Value Fund master trust investment account		8,887,703

Net investment income from master trust investment accounts per the Form 5500	$	141,040,751

Supplemental Schedule

Intel Corporation 401(k) Savings Plan

EIN 94-1672743, Plan Number: 003

Schedule H, Line 4i — Schedule of Assets (Held at End of Year)

December 31, 2009


			(c)
			Description of Investment,
		(b)	Including Maturity Date,		(e)
		Identity of Issue, Borrower,	Rate of Interest, Collateral,		Current
(a)		Lessor, or Similar Party	Par, or Maturity Value		Value


		Mutual funds:
		AIM Basic Value Fund	140,858	shares	$	2,845,337
		Allianz CCM Capital Appreciation Fund	237,799	shares		3,538,445
		Allianz CCM Mid Cap Fund	371,261	shares		7,373,236
		American Century Equity Income Fund	1,895,138	shares		12,432,105
		American Century Real Estate Fund	1,831,306	shares		26,462,369
		American Century Small Cap Value Fund	2,226,443	shares		16,342,090
		American Century Small Company Fund	1,926,661	shares		11,926,033
		American Funds EuroPacific Growth Fund	5,611,287	shares		214,800,077
		American Funds Growth Fund of America	1,244,499	shares		33,949,929
	*	Blackrock Global Small Cap Fund, Inc.	1,331,185	shares		26,424,022
	*	Blackrock Global Allocation Fund	1,572,441	shares		28,241,045
		Brandywine Blue Fund, Inc.	1,406,873	shares		30,374,394
		Calvert Social Investment Bond Fund	534,751	shares		8,101,473
		Calvert Social Investment Equity Fund	132,438	shares		4,287,007
		Delaware Pooled International Equity Fund	1,584,301	shares		21,055,361
		Dodge & Cox Stock Fund	1,150,090	shares		110,569,679
		Evergreen International Bond Fund	2,253,574	shares		25,420,316
	*	Fidelity Capital & Income Fund	8,691,717	shares		74,922,602
	*	Fidelity Contrafund	4,373,493	shares		254,887,193
	*	Fidelity Growth Company Fund	2,880,158	shares		198,673,267
	*	Fidelity Low-Priced Stock Fund	7,456,186	shares		238,150,567
	*	Fidelity Mid-Cap Stock Fund	1,396,242	shares		32,699,996
	*	Fidelity Puritan Fund	4,014,566	shares		64,473,926
		Franklin Income Fund	6,618,070	shares		13,633,225
		GAMCO Gold AAA Fund	2,669,687	shares		80,010,526
		GMO Emerging Countries Fund	5,662,627	shares		55,437,120
	*	Goldman Sachs Mid Cap Value Fund	1,382,359	shares		40,323,422
	*	Goldman Sachs Small Cap Value Fund	219,134	shares		7,218,265
		Invesco AIM Government & Agency Portfolio	170,002,395	shares		170,002,395
		Legg Mason Special Investment Trust	311,514	shares		10,831,340

Intel Corporation 401(k) Savings Plan

EIN 94-1672743, Plan Number: 003

Schedule H, Line 4i — Schedule of Assets (Held at End of Year) (continued)

December 31, 2009


			(c)
			Description of Investment,
		(b)	Including Maturity Date,		(e)
		Identity of Issue, Borrower,	Rate of Interest, Collateral,		Current
(a)		Lessor, or Similar Party	Par, or Maturity Value		Value


		Legg Mason Value Trust, Inc.	256,473	shares	$	10,846,254
		Longleaf Partners Fund	553,398	shares		13,331,346
		Loomis Sayles Bond Fund	3,228,309	shares		43,065,638
		Merger Fund	282,596	shares		4,391,549
		Morgan Stanley Institutional Fund
		International Small Cap	1,230,681	shares		14,731,256
		Morgan Stanley Institutional Fund
		Trust Value Portfolio	340,648	shares		4,591,933
		Pennsylvania Mutual Fund	2,569,338	shares		24,280,244
	*	PIMCO Emerging Markets Bond Fund	2,306,206	shares		23,800,041
	*	PIMCO High Yield Fund	1,587,672	shares		13,971,514
	*	PIMCO Long-Term U.S. Government Fund	1,896,816	shares		20,239,023
	*	PIMCO Total Return Fund	12,114,319	shares		130,834,643
		Reserve Primary Institutional Fund	12,743,204	shares		10,726,155
		T Rowe Price Growth Stock Fund	589,620	shares		16,220,444
		TCW Galileo Value Opportunities Fund	188,916	shares		2,862,078
		Templeton Growth Fund	714,412	shares		12,002,120
		Vanguard Convertible Securities Fund	591,367	shares		7,427,567
		Vanguard Growth Index Fund	3,019,820	shares		82,501,483
		Vanguard Inflation-Protected Securities Fund	3,146,257	shares		31,588,417
		Vanguard Institutional Index Fund	2,112,557	shares		215,438,518
		Vanguard International Value Fund	2,467,798	shares		75,539,297
		Vanguard Long-Term Bond Index Fund	1,258,624	shares		14,549,695
		Vanguard Mid-Cap Index Fund	2,487,732	shares		40,798,809
		Vanguard Small-Cap Growth Index Fund	1,512,610	shares		25,487,472
		Vanguard Small-Cap Value Index Fund	1,042,230	shares		13,642,792
		Vanguard Strategic Equity Fund	755,893	shares		11,550,047
		Vanguard Windsor Fund	169,283	shares		6,805,168
		Vanguard-Intermediate-Term Treasury Fund	4,033,116	shares		44,727,259

		Total mutual funds				2,741,357,524

Intel Corporation 401(k) Savings Plan

EIN 94-1672743, Plan Number: 003

Schedule H, Line 4i — Schedule of Assets (Held at End of Year) (continued)

December 31, 2009

(c)

Description of Investment,

(b)

Including Maturity Date,

(e)

Identity of Issue, Borrower,

Rate of Interest, Collateral,

Current

(a)

Lessor, or Similar Party

Par, or Maturity Value

Value

Common collective trust funds:

BlackRock Russell 1000 Value Fund

3,119,043

units

41,108,987

Lazard Emerging Markets Institutional Fund

4,010,344

units

56,225,030

Pooled Employee Funds Daily Liquidity Fund

388,248

units

388,248

SSgA Daily Active Emerging Markets Non-Lending Series Fund

3,264,619

units

43,168,057

SSgA NASDAQ 100 Index Non-Lending Series Fund

2,578,372

units

30,025,138

Total common collective trust funds

170,915,460

Common stock:

Intel Corporation

17,198,438

350,848,143

Participant loans

Interest at 4.50% – 11.5%, maturing through 2029

59,863,342

Total investments

3,322,984,469


Column (d) for Cost has been omitted as investments are participant-directed

*		Indicates a party-in-interest

SIGNATURES

The Plan. Pursuant to the requirements of the Securities and Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.


	INTEL CORPORATION 401(k) SAVINGS PLAN (Name of Plan)
Date: June 24, 2010	By:	/s/ Stacy J. Smith
		Stacy J. Smith
		Senior Vice President, Chief Financial Officer and Principal Accounting Officer