Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dan3 who wrote (146189)	10/29/2001 9:02:13 AM
From: Dave	Read Replies (1) \| Respond to of 186894

Dan, When a company purchases an item that is classified as PP&E, it is not "expensed" that quarter. Instead, it will be depreciated over time. In all honesty, I still do not understand why you continue to look @ Depreciation. You should be worried about AMD's debt situation.... Dan, another comment, you appear to thing that Depreciation/Amortization affects gross margins.. It does not... Gross margins are defined by: (Revenue - Cost of Goods sold)/Revenue...

To: Dan3 who wrote (146189)	10/29/2001 9:05:41 AM
From: willcousa	Respond to of 186894

Jeez, they had a 7.5 bil capex you know.

To: Dan3 who wrote (146189)	10/29/2001 2:42:56 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 186894

> If they hadn't increased the value of their PP&E on paper Let me say this again: You seem to be implying that the accountants at Intel just randomly added value to their existing PP&E. That's not legal, and it's not what they did. PP&E value is influenced by only three things: * Purchases of new PP&E. Intel did lots of this, which is why the value is up. * Depreciation of existing PP&E. Intel did some of this too. But they depreciated less than they added, so the net number is up. * One time writedowns. When you decide that something is worth a lot less than you are carrying it on the books, even after depreciation. Intel did not do this with PP&E anytime recently that I can recall. You CANNOT "write up" the value of existing assets. EVER! Your suggestion that Intel did this is pure BS. I do share your concern about Intel (and other companies) carrying lots of goodwill on paper that will never turn out to be worth anything. mg