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

To: wanna_bmw who wrote (76140)	4/2/2002 12:44:59 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 275872

wbmw, Sounds like you need an economics professor. Businesses want the fastest possible depreciation.100% first year is best, 120% even better(it happens as an incentive) In the semi business we are constantly faced with a need to depreciate the fab in real terms. 5 year old fabs have little resale value, except for the structure and some of the infrastructure. The computer business is just as bad. 5 year old desktops are scrap. They cost $5000 new and now are woth $100 after 3 years, yet only 60% depreciated. So they get scrapped and written off all at once, no big deal. True there is some value in old 100Mm fabs for some companies, but not for Intel/AMD. Bill

To: wanna_bmw who wrote (76140)	4/2/2002 12:51:53 AM
From: Mani1	Respond to of 275872

Re <<The monetary benefits of depreciating equipment over 5 years are immense. >> Sorry BMW, you got that 100% backwards. A quick depreciation means you get to keep your money (and its interest) away from IRS. Too bad it is not allowed under current accounting laws. <<You don't need to be an economics professor to know that.>> LOL. Care to explain? Mani

To: wanna_bmw who wrote (76140)	4/2/2002 8:28:01 AM
From: Dan3	Read Replies (1) \| Respond to of 275872

Re: Do you have proof of this? As long as your job (self - appointed or otherwise) is to post here, 7x24, why don't you take a few moments to glance over the SEC filings of the two companies - you'll find them very enlightening.... For the most part, AMD depreciates about as fast as it spends on Capex - the only honest way to report costs in an industry in which capex must be ongoing. Does Intel think it's in the brick business, so it can build a kiln and then not make any more capital investments for 10 years? Because that's how it accounts for its costs.