Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 45.51

+10.6%

3:59 PM EST

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To: Elmer Phud who wrote (178348)	6/22/2004 6:10:22 PM
From: brushwud	Read Replies (1) of 186894

Looking at 2003, it appears to me that Intel repurchased or otherwise retired 176 million shares while distributing 88 million through various stock plans, presumably employee options and stock purchase plans. See lines 198 and 201 of the spread sheet. Am I reading this correctly? If I am then the average purchase price was $11.73 and the average sale price was $13.44. How can Intel purchase shares at $11.73? They couldn't, and didn't. According to their 10-K, "During 2003, the company repurchased 176 million shares of common stock at a cost of $4 billion." That's about $22.80 per share. You have to read all the way across line 201. About half of the $4 billion was charged to retained earnings and the rest was charged to paid-in capital. With respect to the latter, I surmise that the repurchased shares are taken to undo the most-recent shares issued, kind of like LIFO inventory accounting in reverse.

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