Investments may be classified into the following categories: Trading assets, Available-for-sale investments and Non-marketable equity securities and other investments. Certain marketable debt and equity securities are considered trading assets. They are subject to exchange rate and interest rate modifications, so the generated risk is mitigated through the use of derivative instruments.
The 'available-for-sale' includes another category of marketable debt and equity securities. These investments are reported at fair value on the balance sheet with unrealized gains and losses recorded in stockholders' equity, net of tax. If the securities are sold, their cost is calculated using a specific identification method. The gains and losses incurred as a result of selling debt securities are recorded in interest and other (net value). Should the available-for-sale investments be equity securities, they would be recorded in gains (losses) on equity securities. However, every decrease of the value of such securities (stocks) has to be considered permanent in order to be included in this category. The Intel 2001 report provides the criteria for making such a decision: "Marketable equity securities are presumed to be impaired if the fair value is less than the cost basis for six months, absent compelling evidence to the contrary."
Short-term investments is the technical term used to indicate debt securities with original maturities greater than three months and remaining maturities less than one year. Debt securities with remaining maturities greater than one year are included in other long-term investments. The importance of short-term investments is rather large, since companies could use this type of securities to create an additional profit, should the available amount of cash exceed the sums the company needs for growth. The technology sector is well-known for preferring not to pay dividends and for gathering huge amounts of cash. Microsoft and Cisco are excellent examples. Although Intel has a tradition of paying some dividends, it still likes to have a cash reserve. Short-term securities have a very high liquidity, because of their short maturity, and are often used the same way cash is....
Intel Creating Sound Technology-Focused Initiatives for Intel Intel, a manufacturer and designer of microprocessor chips, is one of the leading technology companies critical in the global evolution of electronic products. But how so? What strategic initiatives are in place that allows Intel to execute its business strategy, remain competitive in an ever-growing competitive market, and continue to innovate? If Intel's strategies are in place, how do they propel Intel's products that
Source: Intel 2007 Annual Report However the company's budgets are undisclosed to the general public, Intel emphasizes on the increasing value of the R&D Department. For instance, a decade ago, this budget had a value of $2.5 million; by 2008, the value had more than doubled, reaching $5.8 million Source: Intel 2007 Annual Report The process of budget planning within Intel is briefly explained in the following quotation. "The company's budget and planning
Intel was able to show the PC companies the ways in which their microprocessors would be beneficial and the PC companies knew that the products would be of high quality because Intel had a good reputation. Overall this type of strength has assisted the company greatly in promoting and selling its products. 6. Manufacturing Efficiencies- One of the major strengths of the company is that is has a close relationship with
Accounting and Finance: Financial Statement Analysis Project Intel Corporation is situated in California and is regarded as one of the major innovators and trailblazers in the creation and advancement of technology. Intel was founded in the year 1968 and in the year 1970, the company finalized its initial public offer (IPO) and became a publicly traded company. It trades as INTC in the NASDAQ stock exchange. This project seeks to provide
business, worldwide, profit --profit, score performance progress. While ways a business entity evaluated, common measures financial scope. All businesses understand poorly operations performing times, end pre-determined fiscal time period. AMD Financials AMD, short for Advanced Micro Devices, is notable as it is the single company to be able to withstand some competition to Intel's central processing units. Aside from this product however, AMD produces and sells a wide array of other
RAM and What it Does Random Access Memory (RAM) Analysis and Overview The intent of this analysis and overview of Random Access Memory (RAM) is to define its various types and how they are used in system configurations. Included in this analysis is an overview of the operational characteristics of RAM including how to install and use dual in-line memory modules (DIMMs) and single in-line memory modules (SIMMs). Memory modules of
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