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Applied Micro Circuits (Applied Micro Circuits) Depreciation, Depletion and Amortization : $7.1 Mil (TTM As of Sep. 2016)


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What is Applied Micro Circuits Depreciation, Depletion and Amortization?

Applied Micro Circuits's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $1.6 Mil. Its depreciation, depletion and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $7.1 Mil.


Applied Micro Circuits Depreciation, Depletion and Amortization Historical Data

The historical data trend for Applied Micro Circuits's Depreciation, Depletion and Amortization can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Micro Circuits Depreciation, Depletion and Amortization Chart

Applied Micro Circuits Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Depreciation, Depletion and Amortization
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.19 14.19 10.76 8.66 7.59

Applied Micro Circuits Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Depreciation, Depletion and Amortization Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.83 2.03 1.89 1.57 1.57

Applied Micro Circuits Depreciation, Depletion and Amortization Calculation

Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.

Depletion and amortization are synonyms for depreciation.

Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets

Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.1 Mil.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Applied Micro Circuits  (NAS:AMCC) Depreciation, Depletion and Amortization Explanation

One of the key tenets of Generally Accepted Accounting Principles (GAAP) is the matching principle. The matching principle states that companies should report associated costs and benefits at the same time.

For example:

If a company buys a $300 million cruise ship in 1982 and then sells tickets to passengers for the next 30 years, the company should not report a $300 million expense in 1982 and then ticket sales for 1982 through 2012. Instead, the company should spread the purchase price of the ship (the cost) over the same time period it sells tickets (the benefit).

To create income statements that meet the matching principle, accountants use an expense called depreciation.

So, instead of reporting a $300 million purchase expense in 1982, the company might:

Report a $30 million depreciation expense in 1982, 1983, 1984...and every year after that for the 30 years the company expects to sell tickets to passengers on this cruise ship.

To calculate depreciation, a company must make estimates and choices such as:

The cost of the asset
The useful life of the asset
The salvage value of the asset at the end of its useful life
And a way of spreading the cost of the asset to match the time when the asset provides benefits

The range of different ways of spreading the cost under GAAP accounting is too long to list. However, public companies in the United States explain their depreciation choices to shareholders in a note to their financial statements. It is critical that investors read this note. Investors can find this note in the company's 10-K.

Past depreciation expenses accumulate on the balance sheet. Most public companies choose not to show this contra asset account on the balance sheet they present to shareholders. Instead, they simply show a single item. This single asset item may be marked Net. Such as Property, Plant, and Equipment - Net. It is actually the asset account netted against the contra asset account.

A contra asset account is an account that offsets an asset account. So, for example a company might have:

Property, Plant, and Equipment - Gross: $150 million
Accumulated Depreciation: $120 million
Property, Plant, and Equipment - Net: $30 million

In this case, the only item likely to be shown on the balance sheet is Property, Plant, and Equipment - Net. This is the cost of the company's property, plant, and equipment (asset account) minus the accumulated depreciation (the contra asset account). It means the company's assets cost $150 million, the company has reported $120 million in depreciation expense over the years, and the company is now reporting the assets have a book value of $30 million.

It is possible for a company to have fully depreciated assets on its balance sheet. This means the company's estimate of the useful life of the asset was shorter than the asset's actual useful life. As a result, the asset - although it is still being used - is carried on the balance sheet at its salvage value.

This is a reminder that depreciation involves estimates and choices. It is not an infallible process.

Companies do not have cash layout for depreciation. Therefore, depreciation is added back in the cash flow statement.

Although depreciation is not a cash cost, it is a real business cost because the company has to pay for the fixed assets when it purchases them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because depreciation is not included as an expense. Warren Buffett even jokingly said We prefer earnings before everything when criticizing the abuse of EDITDA.


Be Aware

Depreciation estimates make the calculation of net income susceptible to management's accounting choices. These choices can be either overly aggressive or overly conservative.


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Applied Micro Circuits (Applied Micro Circuits) Business Description

Industry
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Applied Micro Circuits Corp was incorporated and commenced operations in California in 1979 and was reincorporated in Delaware in 1987. The Company is engaged in providing silicon solutions for next-generation cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. Its products include the X-Gene ARM 64-bit Server on a Chip solution, or X-Gene. The X-Gene family of products targets existing and emerging hyperscale cloud, scientific and high-performance computing and enterprise applications. It also offers embedded computing products based on Power Architecture, sometimes referred to as PowerPC products. The Company's HeliX family of embedded products is based on the ARM Instruction Set Architecture. The Company's embedded processor products are deployed in applications such as control- and data-plane management, wireless access points, residential gateways, wireless base stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company's connectivity portion provides high-speed, high-bandwidth, high-reliability communications products. Its connectivity products include devices for Optical Transport Network (OTN) equipment and physical layer (PHY) devices that transmit and receive signals in a very high speed serial format. Its embedded computing products are deployed in applications in markets such as control- and data-plane functionality, wireless access points, residential gateways, wireless base-stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company holds approximately 348 issued patents which cover aspects of the design and architecture of its integrated circuit ("IC") and enterprise storage products. The Company's registered trademarks include AppliedMicro, AMCC, APM, X-Gene, Server on a Chip, Cloud Server, OTNsec, Arming the Cloud and Hard Silicon, among others. It is subject to a variety of federal, state and local governmental regulations related to the use, storage, discharge and disposal of toxic, volatile or otherwise hazardous chemicals that were used in its manufacturing process.
Executives
Duston Williams director C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Paul R Gray director 63 LA CUESTA ORINDA CA 94563
Martin S Mcdermut officer: Vice President and CFO C/O RESONANT INC. 10900 STONELAKE BLVD., SUITE 100, OFFICE 02-130, AUSTIN TX 78759
Karen M Rogge officer: Interim CFO APPLIED MICRO CIRCUITS CORP, 4555 GREAT AMERICA PARKWAY, SUITE 601, SANTA CLARA CA 95054
Shiva Kumar Natarajan officer: VP Corporate Controller 215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Hk Desai director 26650 ALISO VIEJO PARKWAY, ALISO VIEJO CA 92656
Mark Wadlington officer: VP Worldwide Sales 215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Donald A Colvin director ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Julie Sullivan director 6290 SEQUENCE DRIVE SAN DIEGO CA 92121
Hooshmand Kambiz officer: President & CEO 6290 SEQUENCE DRIVE, SAN DIEGO CA 92121
David B Wright director C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Harvey White director
Johnson Franklin P Jr director
David Rickey director, officer: COB and CEO
Stephen M Smith officer: CFO

Applied Micro Circuits (Applied Micro Circuits) Headlines

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