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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Saturn V who wrote (87857)	1/18/2000 2:12:00 AM
From: Petz	Respond to of 1572780

Saturn V, re:<I do not think that the book value [of Vantis] could be near zero> Well, according the Q3 earnings report, there was a 420M profit on the sale. I was quite sure that the sales price was $500M. There could have been a writeoff, or maybe Paul doesn't remember the purchase price of MMI right. <The goodwill part of a takeover is written off in 30 years.So even the goodwill cannot be zero, probably only half its value in 1987> I doubt AMD had to write off much good will. I was an MMI shareholder at the time and the acquisition was not much above book value. The capital equipment part of the acquisition price was certainly written off over 5 years, so there shouldn't have been much book value left. AMD would have no reason to exaggerate the gain on the sale of Vantis -- it was ignored by the street because the operating loss anyway, and they actually had to pay taxes on the profit. Petz

To: Saturn V who wrote (87857)	1/18/2000 7:29:00 PM
From: Dan3	Read Replies (1) \| Respond to of 1572780

Re: The goodwill part of a takeover is written off in 30 years... 5 years is not uncommon for Goodwill. Intel has added approx. 4 Billion in Goodwill in the last year and is amortizing it over 2-6 years. edgar-online.com Goodwill and other acquisition-related intangibles consisted of the following (in millions): SEPT. 25, DEC. 26, LIFE IN YEARS 1999 1998 ------------- ---- ---- Goodwill 2-6 $ 2,477 $ 52 Developed technology 3-6 486 33 Other intangibles 2-6 151 26 ------- ----- $ 3,114 $ 111 ------- ----- ------- ----- Dan PS - Intel has decided to exclude these depreciation charges from its public statements (though it must, of course include them in its actual quarterly reports - to not do so would be to contravene GAAP)