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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%3:59 PM EST

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To: COMMON_SENSE who wrote (138782)7/7/2001 7:02:07 PM
From: Dan3  Read Replies (1) of 186894
 
Re: Amortization often includes a whole basket of intangibles like the value of the good will

Intel has separate line items for goodwill and other intangibles.

AMD doesn't seem to have much goodwill

:-(

All kidding aside, it may make sense to include Intel's goodwill charges, in which case their shortfall is closer to $4 Billion per year than $6.5 Billion per year.

OTOH, did you notice what happened to their accounting for their inventories in the last reported quarter?

Inventories:
Raw materials 406 384
Work in process 1,367 1,057
Finished goods 879 800
2,652 2,241


The value of those goods may well have dropped $200 million rather than risen $411 million, which uses up the cashflow benefit of that "intangibles" charge they did take. That wouldn't have been intentionally deceitful of them - how could they have expected the Q2 crunch?

Dan
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