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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: COMMON_SENSE who wrote (138782)	7/7/2001 12:41:34 AM
From: The Duke of URL©	Read Replies (1) \| Respond to of 186894

" This depreciation and amortization should be held in reserve as a cash item to use on buying future assets. " That, if I may, would be called a sinking fund. Depreciation is an expense account to reflect the wasting cost of an asset, to reflect by approximating the cash previously used, not for future assets to be purchased.

To: COMMON_SENSE who wrote (138782)	7/7/2001 7:02:07 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: Amortization often includes a whole basket of intangibles like the value of the good will Intel has separate line items for goodwill and other intangibles. AMD doesn't seem to have much goodwill :-( All kidding aside, it may make sense to include Intel's goodwill charges, in which case their shortfall is closer to $4 Billion per year than $6.5 Billion per year. OTOH, did you notice what happened to their accounting for their inventories in the last reported quarter? Inventories: Raw materials 406 384 Work in process 1,367 1,057 Finished goods 879 800 2,652 2,241 The value of those goods may well have dropped $200 million rather than risen $411 million, which uses up the cashflow benefit of that "intangibles" charge they did take. That wouldn't have been intentionally deceitful of them - how could they have expected the Q2 crunch? Dan