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

To: tejek who wrote (115072)	6/8/2000 7:12:00 PM
From: ptanner	Respond to of 1572507

ted, <my point was that the tax bite will be much bigger next year (because of this years big earnings)and will cut into next year's earnings which may account for the smaller consensus estimate for 2001> I believe company's account for taxes on a quarter by quarter basis. Like estimated taxes for individuals. If their estimates are a little off then they are adjusted the next quarter of when they make their final filing for the year. So taxable earnings will be reflected within the corresponding quarter and not be a bomb waiting to depress future earnings while artificially increasing current income. (Unlike when I underpaid my estimated taxes and got bombed one year.) PT

To: tejek who wrote (115072)	6/8/2000 7:15:00 PM
From: Joe NYC	Respond to of 1572507

Ted, I know and I agree...my point was that the tax bite will be much bigger next year (because of this years big earnings)and will cut into next year's earnings which may account for the smaller consensus estimate for 2001....that, of course, is not good news. I hope someone with accounting background can correct me if I am wrong, but I don't think the taxes work that way. The tax amount reported this quarter will accrued tax from operations this quarter (minus tax credits). There is no lag. There may be adjustments when actual tax returns are filed, but those ar minor. Joe