What's happened over the past year?
Intel
June 30, 2001 July 1, 2000
Cash and equivalents 3,205 7,308
Short term investments 6,135 5,902
Marketable equity securities 649 6,201
Total liquid assets 9,989 19,411
Undepreciated Capex 17,828 12,324
Goodwill, etc. 6,277 6,240
Debt and lease obligations 928 870
Total unaccounted costs 25,033 19,434
AMD
Cash and equivalents 1,057 1,080
Joint venture 377 267
Total liquid assets 1,434 1,347
Undepreciated Capex 2,668 2,588
Debt and lease obligations 754 1,482
Total unaccounted costs 3,422 4,070
Unaccounted costs represent money spent, but not yet accounted for. In other words, eventually, AMD will have to pay off $928 Milllion in Dresden loans and leases - paying money out in that quarter, but not getting anything for it. In the same way, sooner or later Intel will have to charge some account for the $25,033 Million it spent but didn't expense for goodwill and other assets. (AMD has undepreciated capex and Intel has some debt, but those are less important to the respective companies). A year ago, Intel had as much cash as it had yet-to-be expensed obligations - now it has less than half. AMD's long term position has actually improved while it will take $15 Billion in earnings to repair the damage done to Intel's balance sheet during the last year - and $10 Billion of that is after taxes (Intel must expense an extra $5 Billion to pay off the Goodwill etc. and keep $10 Billion to get cash back up to where it was). And they're in the middle of a price war in the midst of a down market. And a Y2K spending splurge won't happen again anytime soon... |
