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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: kash johal who wrote (2204)	7/25/2000 1:38:51 PM
From: Petz	Read Replies (1) \| Respond to of 275872

kash (& pete) - the question of how Intel's treats disti shipments came up in context of their reported IAG (PS, no longer called IABG) income and IAG profits. The Intel income statement makes clear that sales to distributors are booked to the IAG group immediately, and the "reserve" for these sales is booked simultaneously (and with the opposite sign, since it is a reserve) to the AllOther (AO) group. If a disti sale gets cancelled, I assume IAG keeps the sale and AO keeps the reserve -- for no net sale -- while if a disti sale "sells through," the reserve is cancelled in AO. In addition, "all other" includes... reserves* for deferred income on shipments to distributors...* So, while Intel's bottom line number does follow stardard accounting practice, the IAG revenues and profits are exaggerated whenever reserves increase. Petz