Robgera, from the same 10Q: "SFAS 142 is effective for fiscal years beginning after December 15, 2001; however, the Company has elected to early-adopt the standard effective the beginning of fiscal 2002. In accordance with SFAS 142, the Company ceased amortizing goodwill totaling $3.2 billion as of the beginning of fiscal 2002,
including $55 million of acquired workforce intangible previously classified as purchased intangible assets, net of related deferred tax liabilities. As a result, in the first quarter of fiscal 2002, the Company did not recognize $199
million of goodwill amortization expense that would have been recognized had the previous standards been in effect. Add to that an "excess benefit" of $290 MM (or is it $477 MM?, I sure can't say <g>) from reversal of prior charge off of inventory, and the real "operating income" was negative in the last quarter (not taking into account the negative $688 in "interest and other income, whatever that is, maybe "write down of investments?), about $150 MM negative.
Zeev |
