Intel may owe Uncle Sam billions

http://www.marketwatch.com/News/St [...] &dist=yhoo

2.2. billion yet they claim it will have little adverse financial effect????

Add a reply

Register or log in to remove.

If this is true , this dwarfs the AMD loss. And if this happens, Intel's board should all be fired. Dont go messin with uncle sam OUCH

Reply to jaydeejohn

you look at it from your view, or AMDs view, where 2.2 billion is a crippleing loss, not from Intrels view, who is worth hundreds of billions, and has an operating profit of 30 billion a year, so yeah, in the long term and short term,2.2billion is a drop in the bucket

Reply to jackxlj

My point of view is that 2.4 billion dollars plus interest from 1999 is alot more than those board members make and then some. Time to clean house

Reply to jaydeejohn

Even at your stated profits , thats 10% right off the top for the fiscal year OUCH

Reply to jaydeejohn

With price wars and lots of money being dumped into R&D, $2.2 is far from a drop in the bucket. It wouldn't cripple them long-term by any means, but it would devastate a quarterly report.

Reply to ajfink

Reading the article, I see that if uncle sam wins theyll go after another 200 million, plus as mentioned the interest from 1999 to current. Thats alot of c2d's!!!! Better start buying Intel chips......doesnt look good

Reply to jaydeejohn

Woof, that's interesting news.

2.4 billion + interest. If we assume a standard government interest rate of 4%, that's really like 2.5-3.0 billion dollars depending on when the majority of the money is being accounted for.

The important part of the article is...

Quote :

The outcome is not likely to have an impact on its financial position, cash flows or overall trends in results of operations

Reply to wolverinero79

You may as well cross out any profit from the c2d line ...period. If this happens, thats more than Intel will ever gain in profits from them. Like I said, time to dump the board

Reply to jaydeejohn

Quote :

http://www.marketwatch.com/News/St [...] &dist=yhoo

2.2. billion yet they claim it will have little adverse financial effect????

A huge impact indeed.
http://media.corporate-ir.net/medi [...] _Final.pdf
Intel earned about $1.5B last quarter.

A $2.2B fine will make Intel a quarterly loss, even without the price war.

Reply to qcmadness

This is gonna impact on Intel's shares one way or another. Not good for investor assurance. I'm sure Intel will ride this out like all the other troubles in the past, but of course, not without its damage. I expect some board members to be fired and stock shares to fall in reaction to this news.

Reply to Bluefinger

Guys, you should be mad at the US government for punishing a successful American company who brings in cash from abroad and grabbing so much from it. Also, the IRS tax code is the nastiest and thickest book ever written, or in the top 100 anyway. Why blame the Intel board for it? That would just hurt the company more, and result in new CPUs arriving later and more expensive...

I see that the INTC stock is at 0.5% down. That's absolutely negligible and it shows that the mutual fund managers who drive the market don't really care about this news.

Reply to dsidious

Quote :

Reading the article, I see that if uncle sam wins theyll go after another 200 million, plus as mentioned the interest from 1999 to current. Thats alot of c2d's!!!! Better start buying Intel chips......doesnt look good

"Doesn't look good"? What, do you think Intel will fold because of this small (in relative terms) fine? :roll: About as likely as AMD folding due to their fine.

Even if Intel do make a quarterly loss, they're still en route to a healthy yearly profit and have the technological base for many more, fine or no fine.

Synergy6

Reply to Synergy6

Quote :

Better start buying Intel chips......doesnt look good

Either that or vote people in that don't "tax 'n spend."

Reply to MU_Engineer

Quote :

This is gonna impact on Intel's shares one way or another. Not good for investor assurance. I'm sure Intel will ride this out like all the other troubles in the past, but of course, not without its damage. I expect some board members to be fired and stock shares to fall in reaction to this news.

wow, and some intel followers were saying that AMD was lamme for hiding and then lowering their expectations of money...
because we know intel is sooooo clean XD

Reply to tamalero

Intel being clean? HA! HAHAHAHA!! Sorry, before collapse in laughter. Yeah, AMD were a bit stupid with that, but Intel's no better. Hell, I'm sure Microsoft is pretty dirty themselves.... Just shows that all the big companies don't always play things by the rules.

And nice pic! :lol:

Reply to Bluefinger

I'm sure the US goverment will allow Intel to repay the debt over 5-10 years and won't expect 1 lump sum payment.

Intel won't even feel it.

Reply to vertigo_2000

Quote :

I'm sure the US goverment will allow Intel to repay the debt over 5-10 years and won't expect 1 lump sum payment.

Intel won't even feel it.

Intel if found to owe this money will have to deduct the amounts from their operating costs from the years where the infraction occured as well as the interest and fines if any.

Intel can and will offset some of the costs by every means if they are found to owe this money. Showing a loss where there is already a loss can save them tax dollars.

Reply to intelamduser

Quote :

I'm sure the US goverment will allow Intel to repay the debt over 5-10 years and won't expect 1 lump sum payment.

Intel won't even feel it.

Intel will probably settle with Uncle Sam for 15-25 cents on the dollar.
This has happened repeatedly with IRS. The deep pockets of Intel can buy many government officials.

_________________
No matter where you go or what you do, you live your entire life within the confines of your head”. ~Terry Josephson

Reply to Sirfiroth

Quote :

I'm sure the US goverment will allow Intel to repay the debt over 5-10 years and won't expect 1 lump sum payment.

Intel won't even feel it.

Intel will probably settle with Uncle Sam for 15-25 cents on the dollar.
This has happened repeatedly with IRS. The deep pockets of Intel can buy many government officials.

_________________
No matter where you go or what you do, you live your entire life within the confines of your head”. ~Terry Josephson

I concur.

If anybody on wall street who really understands the implications of this were to think it a was big deal, the stock would have dropped like a rock this morning.

Reply to gr8mikey

Quote :

I concur.

If anybody on wall street who really understands the implications of this were to think it a was big deal, the stock would have dropped like a rock this morning.

Opened at 20.81 this morning, dropped to 20.52 by 10am. But, bounced back to 20.97 by mid-noon. Currently (4pm) at 20.85, 0.5% above opening. In terms of the stock market so far, a non-event.
Synergy6

Reply to Synergy6

Quote :

I concur.

If anybody on wall street who really understands the implications of this were to think it a was big deal, the stock would have dropped like a rock this morning.

Opened at 20.81 this morning, dropped to 20.52 by 10am. But, bounced back to 20.97 by mid-noon. Currently (4pm) at 20.85, 0.5% above opening. In terms of the stock market so far, a non-event.
Synergy6

This is a non-event as the stock closed above previous close. They are likely to cut a deal for 20 cents on the dollar which makes it .5B which is just a speed bump on a quarterly statements.

Reply to baldeagle

Quote :

you look at it from your view, or AMDs view, where 2.2 billion is a crippleing loss, not from Intrels view, who is worth hundreds of billions, and has an operating profit of 30 billion a year, so yeah, in the long term and short term,2.2billion is a drop in the bucket

I had multiple aneurysm and seizures, when I read this. Slammed my head on my desk and passed out for a few hours.

Quote :

Intel Corporation
Revenue $35.7 billion USD
Operating income $5.7 billion USD
Net income $5 billion USD

Reply to RandMcnally

Quote :

Guys, you should be mad at the US government for punishing a successful American company who brings in cash from abroad and grabbing so much from it. Also, the IRS tax code is the nastiest and thickest book ever written, or in the top 100 anyway. Why blame the Intel board for it? That would just hurt the company more, and result in new CPUs arriving later and more expensive...

I see that the INTC stock is at 0.5% down. That's absolutely negligible and it shows that the mutual fund managers who drive the market don't really care about this news.

You cannot be serious. Why is this in any way the government's fault? Either Intel did this intentionally or it was an honest mistake (most likely a mistake). In any case, it is still Intel's fault. Taxes is a fact of life... get used to it. You should be mad at Intel for not paying the government its share (fair or not). It is an injustice to all of the other honest businesses that pay their taxes. Why should Intel be given a pass? :?

But... I am all for a "flat tax". Who needs that big 'ol tax code?

Reply to Ranman68k

your right,i went back,and reread,i was tired when i wrote it,Im sorry. Either way, over a six year span,2.2,or 3.4 which is what is will come out to be around if they pay on it for 6 years,is a small amount for such a company...one also wonders how many new intel processors the IRS will be getting this year as a special "donation" from Intel to help out good ol' Uncle Sam...

Reply to jackxlj

Those of you trying to downplay the significance, that's still a huge amount of money and is going to hurt their year.

Reply to Heyyou27

yay more fanboy propaganda. let the flamewar begin

Reply to angry_ducky

This whole topic is being overrun by idiots who have no knowledge of economics nor accounting. -_-

If you think that this will hurt Intel, then you're really naive.

Also, someone said that this would make all of C2D's sales moot... Please, that statement is beyond backwardness. :roll:

Reply to InteliotInside

OK, lets just say this never happened. So Intel makes the same amount of money? And lets see, as stated earlier, taking losses for unpaid taxes (if thats allowable) means spending more money appending the new revenues plus all things applied plus the adjustments of any further such practices. To me a 2 or 3 billion dollar loss, whether you write some if not most off is still a loss, and in so doing it costs you more money just to do so. This isnt going to cripple Intel, not in the least, but a pothole is a pothole. I chose 1 product from a huge, highly competitive company and used it to show that those profits will suffer, yes the exaggeration was on my part, but if this happens the loss WILL be there, and its no small loss

Reply to jaydeejohn

Sure, it's worse for them than not having the fine. But then, so is selling 4,586,987 C2Duos instead of 4,586,989. Neither are particularly exciting, nor will they have any tangible impact on the company beyond the short-term.

After all, for everybody on this forum NOT an Intel employee/shareholder, what does it matter whether they make a $5billion or $50billion profit?

Synergy6

P.S. "no small loss" "huge amount of money". Huge + small are still relative terms, no matter the quantities involved.

Reply to Synergy6

Forum CPU & Components : CPUs - Intel may owe Uncle Sam billions

Please mind

Focus On

Intel may owe Uncle Sam billions

Forum CPU & Components : CPUs - Intel may owe Uncle Sam billions

Please mind