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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 236.73

-6.1%

Jan 30 9:30 AM EST

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To: niceguy767 who wrote (59680)	10/22/2001 9:34:08 PM
From: ptanner	Read Replies (2) of 275872

Niceguy, Re: Intel's Goodwill You wrote: "It'd be interesting to know what comprises the goodwill and what a conservative valuation would peg goodwill at...(It's not wholly improbable that INTC might need to write off $2 or $3 billion in goodwill over the next while and it is not improbable that long term investment contributions might be finished for a while...tough year shaping up particularly if the P4 doesn't fly)...It almost defies any belief system that INTC goodwill could rationally increase by $5.4 billion in the worst downturn in semi history" I think this topic is a dead horse. Intel made a lot of acquisitions over the least few years (prior to the recent semi downturn) to expand its presence in the communications sector. While it is possible that some of these assets are over-valued at present, I believe that Intel is acting in accordance with common accounting standards in this area. The nearly 10.75% drop in goodwill during the most recent quarter was far more substantial than what I believe the normal depreciation rate would be (30? 40 years?) so it seems there was some "mark to market" adjustment. [Disclaimer: I didn't study Intel's earnings press release or the CC nor do I try to follow the arcane lore of financial accountability.] Even if Intel were to write the whole thing off as a one-time charge (a la Nortel and others after their aggressive acquisitions and subsequent comms crash) it is still only accounting entries and relatively modest compared to the goodwill "held" by other companies. You also wrote: "From q1/99 to q3/01, INTC's goodwill has increased by $5.4 billion and long term investments have declined by $2.5 billion" It may also be appropriate to note that the value of "Property, plant and equipment, net" increased by nearly $7B and shareholder equity by more than $11B over the same time period. Please stop beating this dead horse. -PT

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