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


To: Dave who wrote (139046)7/11/2001 4:16:39 PM
From: brushwud  Read Replies (2) | Respond to of 186894
 
Acquisition costs are consider "one time" or "extraordinary" charges, therefore they are not included in Net Income...

Some are, some aren't. According to Intel's most recent 10-Q, most aren't:

"Amortization of goodwill and other acquisition-related intangibles and costs was $585 million for the first three months of 2001, including a one-time write-off of $88 million."

Intel has over $6 billion of these intangibles yet to be written off, so it'll be years before they're all gone, unless they're recognized to be "impaired" sooner.



To: Dave who wrote (139046)7/12/2001 2:54:56 AM
From: Joe NYC  Read Replies (1) | Respond to of 186894
 
Dave,

Acquisition costs are consider "one time" or "extraordinary" charges, therefore they are not included in Net Income.....

Suppose Intel buys a company for $10 million, and spends another $2 million on accountants, lawyers and investment bankers, for total of $12 million.

Which number is considered the acquisition cost (charge, expense), the whole $12 million, $10 to $2?

Joe