Replies to post #84513 on Intel Corp (INTC)

[jay1000]

<< I estimated the value of the missing shares to be $600 million. ..... I wonder who ended up with the $600 million.>>

Are you saying/insinuating that the senior executivss and employees got (roughly) $600 million in the quarter??
IF this is true .... and then (theoretically speaking); IF this $600 million was used or added to earnings etc .... The earnings results would have been out of this world, and the stock would have exploded !

That sounds astounding....
Intel has 80,800 employees and that amounts to $74,257 per employee for the quarter (IF divided equally ...which of course won't happen.
($600,000,000 / 80,080)...

[Windsock]

The number of shares outstanding is affected by several things but bonus money is not one of those things.

A major factor in the variation of outstanding shares is the movement of vested stock options into or out of the money. Vested stock option shares are counted as outstanding shares if they are in the money or not if they are out of the money.

When in the money shares are exercised they permanently become outstanding shares. Intel receives the strike price for the option shares -- option shares are not delivered for free -- and the funds are entered as increased capital.

Perhaps you are suggesting that stock options are a bonus even though this characterization is not accurate. If you want to misuse the term "bonus" to include the value of stock options your calculation has no relation to the value of a stock option.

The GAAP standard requires companies to expense options using a Black Scholes calculation. Other calculation methods exist but your calculation using stock buyback and outstanding shares is totally off the mark.