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

To: Dan3 who wrote (52137)	8/23/2001 2:27:42 PM
From: tejek	Respond to of 275872

Re: How can they show a profit and still be burning their cash-on-hand? Cash expended on plant doesn't count as an expense when calculating profit or loss. The assumption is that the plant or acquisition is worth almost as much as was paid for it. But a percentage of these accumulated capital expenditures are deducted in each reporting period, (depreciated or amortized) to account for the fact that plant and the assets from the acquisition are slowly wearing out, effectively being "used up." Dan, thanks. So the only way to get what was spent on an acquisition or a plant expansion is to back into by looking at the depreciation? I recognize that its hard to treat acquisitions or expansions as ongoing operating expenses but I thought they would be thrown into extraordinary expense category. NT had a $19 Billion writedown recently, Intel probably faces, at most, half of that, perhaps a quarter, perhaps none at all. Wasn't NT's writedown due primarily to the slowdown and its loss of market valuation, not just market share? If things pick up in the second half for Intel as expected won't they skirt the problem? ted