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Technology Stocks : INPR - Inprise to Borland (BORL)
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To: smallaxe who wrote (4154)1/28/2000 9:18:00 AM
From: i-node   of 5102
 
The most significan writedown, and the puzzling one is the real estate. I think what they did was writedown the value of the unused portion of the Borland campus. It's no secret that a large part of the campus lies empty.

This could be a plausible explanation for the writedown. If an asset is essentially "scrapped" -- decommissioned without an intent to either use it or sell it, then it might be appropriate to expense it even if it is real estate. In particular, if you have a chunk of empty space that you know you're not going to lease out to someone else AND you know YOU'RE not going to use it, then why not? We do this all the time with personal property. Computers are a great example. They're frequently scrapped before being fully depreciated.

It also makes sense from Dale's point of view. As is often done, the incoming CEO wants to get all the red ink behind him. So when in doubt, charge it off. Given what you're saying, that the SV facility had a lot of empty space, I suspect your explanation makes a lot of sense...
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