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To: Dan3 who wrote (25401)1/17/2001 10:36:46 PM
From: Joe NYCRead Replies (1) | Respond to of 275872
 
Dan,

What happened to the the $5 Billion in earnings they reported in those 9 months?

$4 billion went to share buyback (which has a tendency to just leak out of the balance sheet, without leaving any trace on P/L). Anyway, the $billion bought 73.5 million shares at average price of $53.33. With current closing price of $30 1/2, the $billion expenditure would be worth $2.28 billion, or $1.71 billion less than the purchase price.

I hope that the Intel employees who received these shares sold them right away.

Joe



To: Dan3 who wrote (25401)1/18/2001 3:40:15 AM
From: GoutamRespond to of 275872
 
Dan3,

<Thank You, Goutama, that was a great post!

You are welcome.

<Is the $7.5 Billion drop in unrealized gains included in the marketable equities number?>

Yes. Marketable securities number is also adjusted for the realized gains.

<What happened to the the $5 Billion in earnings they reported in those 9 months?>

(Capital expenditure + Stock buy back + | decrease in the unrealized gains| ) - [ Earnings(operational + investment gains + interest) after tax + Depreciation + Employees stock purchase proceeds & tax benefits + unrealized gains ] ~= $5.7 Billion in Y2K

Goutama