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To: JDN who wrote (90305)10/14/1999 7:41:00 PM
From: Dan3  Read Replies (1) | Respond to of 186894
 
Re: you are Incorrect to say that Goodwill means I paid more than it was worth....

Intellectual property, patent rights, customer lists, and contract values are all considered tangible items that can be accounted for. Goodwill is the amount that was paid over and above the value of all of those things mentioned plus property, plant, and equipment. It makes sense for something like Quaker's purchase of Snapple where the theory was that Quaker could make lots of money on the difference between the value of apple juice from stodgy old Quaker Oats and apple juice from hip and trendy Snapple.

Do you think that the chance to label products Level 1 or Softcom instead of labeling them Intel is worth $2.2 billion dollars? Because that is what was paid - and what will be hitting the income statement at $110 million a quarter for the next five years. Is Intel's name really that bad?

Dan

PS. As good an idea as it seemed to be at the time, the Quaker-Snapple thing didn't work out :-)