AMD 2011 Annual Report Download - page 102

net of an increase in U.S. deferred tax assets, primarily for foreign tax credits arising from withholding taxes. In
2009, the net valuation allowance decreased by $93 million primarily for decreases in deferred tax assets related
to tax deductible goodwill, intangibles and discount of convertible notes.
As of December 31, 2011 and December 25, 2010, the Company had $202 million and $213 million,
respectively, of deferred tax assets subject to a valuation allowance that related to excess stock option deductions,
which are not presented in the deferred tax asset balances. As of December 31, 2011 and December 25, 2010,
$10 million of deferred tax assets subject to valuation allowance related to a deductible discount for tax only
associated with the Company’s 6.00% Convertible Senior Notes due 2015 (the 6.00% Notes). The tax benefit
from these deductions will increase capital in excess of par when realized.
The following is a summary of the various tax attribute carryforwards the Company had as of December 31,
2011. The amounts presented below include amounts related to excess stock option deductions, as discussed above.
Carryforward Federal
State /
Provincial Expiration
(In millions)
US-net operating loss carryovers ................................... $2,703 $224 2012 to 2031
US-credit carryovers ............................................. $ 462 $162 2012 to 2031
Canada-net operating loss carryovers ................................ $ 187 $187 2025 to 2028
Canada-credit carryovers ......................................... $ 367 $ 22 2012 to 2031
Canada-R&D pools .............................................. $ 339 $339 no expiration
Barbados-net operating loss carryovers .............................. $ 305 N/A 2012 to 2017
Other foreign net operating loss carryovers ........................... $ 15 N/A various
Utilization of $81 million of the Company’s U.S. federal net operating loss carryforwards are subject to
annual limitations as a result of the ATI acquisition and prior purchase transactions.
The table below displays reconciliation between statutory federal income taxes and the total provision
(benefit) for income taxes.
Tax Rate
(In millions except for percentages)
2011
Statutory federal income tax expense ..................... $172 35.0%
State taxes, net of federal benefit ........................ 1 0.2%
Foreign income at other than U.S. rates ................... (2) (0.4)%
US valuation allowance utilized ......................... (171) (34.8)%
Credit monetization ................................... (4) (0.8)%
$ (4) (0.8)%
2010
Statutory federal income tax expense ..................... $178 35.0%
State taxes, net of federal benefit ........................ 1 0.2%
Foreign income at other than U.S. rates ................... (24) (4.7)%
Foreign losses not benefited ............................ 51 10.0%
US valuation allowance utilized ......................... (164) (32.3)%
Alternative minimum tax .............................. (2) (0.4)%
Credit monetization ................................... (2) (0.4)%
$ 38 7.4%
2009
Statutory federal income tax expense ..................... $147 35.0%
State taxes, net of federal benefit ........................ 1 0.2%
Foreign income at other than U.S. rates ................... (63) (15.0)%
Foreign losses not benefited ............................ 306 73.1%
Foreign benefits not realized ............................ 122 29.1%
US special deduction under IRC 186 ..................... (396) (94.5)%
Credit monetization ................................... (5) (1.2)%
$ 112 26.7%
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