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@ 2008/12/31AMD, depending on your viewpoint, is either incapable of ever catching a break or it possesses an uncanny ability to snatch defeat from the jaws of victory. The company has now announced that it has cut 600 employees, 100 more than expected. Adding insult to injury, the Sunnyvale-based company will take a further, unspecified goodwill impairment charge related to its 2006 acquisition of ATI.
A goodwill impairment charge is essentially an admission by the company that it paid too much for an asset. Current federal regulations require that companies test the reported value of goodwill at least annually.
AMD already took one of these charges last summer; after this new impairment charge is calculated, it will have written down over 50 percent of the $5.4 billion value it assigned to ATI when it purchased the company.
A goodwill impairment charge is essentially an admission by the company that it paid too much for an asset. Current federal regulations require that companies test the reported value of goodwill at least annually.
AMD already took one of these charges last summer; after this new impairment charge is calculated, it will have written down over 50 percent of the $5.4 billion value it assigned to ATI when it purchased the company.
