Intel Corp (INTC)

[fastpathguru]

All of Intel's depreciation on plant and equipment in a quarter is applied to either inventory produced in the quarter or expensed directly as cost of goods in the quarter. Since the inventory flows out as a cost of goods against shipment revenue in the income statement, all depreciation of plant and equipment is part of Intel's cost of goods.

Either Intel's depreciation schedule is "light" then or Intels R&D is where all the cost of their process goes. Actually that makes sense; A) Intel's "special sauce" is literally in their process/recipe, not so much in specialized equipment, and B) Q3'13 R&D +MG&A was $4.7B while depreciation was $1.7B.

And from what I've heard here on this board, Intel's 14nm fab expenses haven't even started depreciating yet...

fpg