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To: Dan3 who wrote (138747)	7/6/2001 4:39:02 PM
From: COMMON_SENSE	Read Replies (1) \| Respond to of 186894

What is the figure for AMD depreciation for Q1? (remember they lease their Dresden plant and I don't know what they do in Austin but I think it is owned outright)

To: Dan3 who wrote (138747)	7/7/2001 6:11:31 PM
From: Windsock	Read Replies (2) \| Respond to of 186894

Dan - Re: "Then look at AMD's quarterly capital costs, and what percentage of those are covered by the expenses they account for in their income statement as depreciation - e.g. breakeven for AMD includes the costs of building new FABs." You are wrong. Capital costs do not get booked in expenses. And depreciation costs do not start on a fab until the fab goes into production. So none of the capital expenses made during Q2 will reduce AMD's Q2 earnings.

To: Dan3 who wrote (138747)	7/8/2001 7:39:21 AM
From: Dave	Read Replies (1) \| Respond to of 186894

Dan, Your arguments of depreciation are noted, however.... When AMD builds a $5B fab, they must come up with the $5B. Of course, if the fab could be built in a day, they could expense the entire $5B that Q, but why do that? The purpose of depreciation is to expense the cost of the useful life of the PP&E.... If I was an AMD investor, I would be worried about the Interest Expense AMD has. That is a 20M cash outflow ever quarter and if you look at AMD's Quarterlies, their interest expense has been growing each Q. Remember that their LT Debt will also come due. As an AMD investor, I would worry if AMD will be able to re-float their debt...