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To: niceguy767 who wrote (58978)10/17/2001 10:13:07 PM
From: Joe NYCRead Replies (1) | Respond to of 275872
 
ng,

I don't have the INTC statements at hand...Did INTC's goodwill increase significantly between 1999 and 2001?

Goodwill never increases on the books. It just gets depreciated to zero. What CAN increase the total goodwill on the books of the company is if the company makes an acquisition and pay more than the book value of the acquired company.

Jo



To: niceguy767 who wrote (58978)10/18/2001 12:03:45 PM
From: PetzRespond to of 275872
 
...duplicate



To: niceguy767 who wrote (58978)10/18/2001 12:03:45 PM
From: PetzRespond to of 275872
 
ng, re:<Did INTC's goodwill increase significantly between 1999 and 2001?>
Good point, from 10/1/99 to 10/1/01, Intel's "goodwill" increased almost $2.5B. Using the more conservative accounting of removing it from Book Value, we have the following comparison between AMD and Intel for the past two years:

......................................1999..............2001...............Intel 1999............Intel 2001
Sales.................................662.............766......................7,328..................6,545
Tangible Book Value....1,919.........3,631....................26,068................30,300
Cash+ST Investments......377............904....................11,891..................9,158
LongTermDebt..............1,449............796..........................884.....................972

This gives Intel a mediocre annual return on equity of 7.75% and AMD a spectacular 37.6%, even after this quarter's loss.

Petz