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(In Millions) | | Dec 30, 2023 | | Acquisitions | | Transfers | | Impairments | | Dec 28, 2024 |
| Client Computing | | $ | 4,749 | | | $ | — | | | $ | (130) | | | $ | — | | | $ | 4,619 | |
| Data Center and AI | | 8,721 | | | — | | | (777) | | | — | | | 7,944 | |
| Network and Edge | | 2,809 | | | — | | | (29) | | | — | | | 2,780 | |
| Intel Foundry | | — | | | — | | | 222 | | | (222) | | | — | |
| Mobileye | | 10,919 | | | — | | | — | | | (2,613) | | | 8,306 | |
| Altera | | — | | | — | | | 781 | | | — | | | 781 | |
| All Other | | 393 | | | 86 | | | (67) | | | (149) | | | 263 | |
| Total | | $ | 27,591 | | | $ | 86 | | | $ | — | | | $ | (2,984) | | | $ | 24,693 | |
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| (In Millions) | | Dec 31, 2022 | | Acquisitions | | Transfers | | Other | | Dec 30, 2023 |
| Client Computing | | $ | 4,254 | | | $ | — | | | $ | 495 | | | $ | — | | | $ | 4,749 | |
| Data Center and AI | | 9,013 | | | — | | | (292) | | | — | | | 8,721 | |
| Network and Edge | | 2,809 | | | — | | | — | | | — | | | 2,809 | |
| Mobileye | | 10,919 | | | — | | — | | | — | | | 10,919 | |
| Accelerated Computing Systems and Graphics | | 596 | | | — | | (596) | | | — | | | — | |
| All other | | — | | | — | | | 393 | | | — | | | 393 | |
| Total | | $ | 27,591 | | | $ | — | | | $ | — | | | $ | — | | | $ | 27,591 | |
Our quarterly qualitative impairment assessment for the third quarter of 2024 indicated that a more detailed quantitative analysis was necessary for certain of our reporting units, primarily due to the decline in our market capitalization below the carrying value of our net assets, as well as the decline in our Mobileye reporting unit's market capitalization below the carrying value of Mobileye's net assets. Our quantitative assessment was performed by measuring each reporting unit's fair value using the income approach, the market approach, or a combination of both. When using the income approach, we tested the reasonableness of the inputs and outcomes of our discounted cash flow analysis against available market data. As a result of our impairment tests, we recognized a non-cash goodwill impairment charge of $2.8 billion in the third quarter of 2024 within restructuring and other, most of which related to our Mobileye reporting unit, as the estimated fair value of the reporting unit was lower than the assigned carrying value. The process of valuing each reporting unit is inherently subjective as valuation models require the application of significant estimates and the use of unobservable inputs, including market segment share, projected financial information, and discount rates. No impairment was required for our other reporting units, even when considering a hypothetical increase in the discount rate of 1%, which would cause a significant decrease in the estimated fair value of the respective non-impaired reporting units. Finally, to corroborate our estimated fair value, we performed a market capitalization reconciliation as of September 28, 2024, concluding that the implied control premium was reasonable. The accumulated impairment loss as of December 28, 2024 was $3.9 billion: $2.6 billion associated with Mobileye, $364 million associated with CCG, $275 million associated with DCAI, $79 million associated with NEX, and the remainder associated with other reporting units.
In the first quarter of 2024, as a result of modifying our segment reporting, we reallocated goodwill among our affected reporting units on a relative fair value basis. We performed a quantitative goodwill impairment assessment for each of our reporting units immediately before and after our business reorganization. We concluded, based on our pre-reorganization impairment test, that goodwill was not impaired. As a result of our post-reorganization impairment test, we recognized a non-cash goodwill impairment loss of $222 million within restructuring and other in the first quarter of 2024 related to our Intel Foundry reporting unit, as the estimated fair value of the new reporting unit was lower than the assigned carrying value, which includes substantially all of our allocated property, plant, and equipment. The Intel Foundry reporting unit has no remaining goodwill. At the conclusion of our impairment assessment performed during the first quarter of 2024, the fair value substantially exceeded the carrying value for all remaining reporting units.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.