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Dole Food Company, Inc Common S Message Board

  • mtheis17 mtheis17 Mar 1, 2013 10:40 AM Flag

    time to buy

    Doles book value is around $10/share but i notice a massive amount of intangible/goodwill on the balance sheet. Discounting these, the book value is nonexistent. Does dole consider its land an intangible asset for some reason? Was this land acquired through acquisitions that would place it on the books as intangible? Land is QUITE tangible and infact is the best long term asset you could possibly have. Anyone know anything about this?

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    • "Goodwill" the the dollars paid for an asset above the intrinsic or book value.
      For example, if Dole bought Company Z for $2B, and the company book value was only $1B, then $1B would show on the Dole balance sheet as "goodwill".
      Goodwill is BS on a balance sheet, in my opinion, but over time the company makes money and writes off the goodwill as the profits from the overpaid-for asset roll in. For example, Proctor & Gamble.
      On the other hand, sometimes the acquisition turns out to be a dog. For example, Hewlett-Packard wrote off billions in goodwill for acquisitions gone bad.
      How the goodwill got onto the Dole balance sheet? Need to do some research into annual and quarterly reports.