AMD 2013 Annual Report Download - page 60

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Interest Income
Interest income was $5 million in 2013 compared to $8 million in 2012. The decrease was primarily due to a
decrease in average investments in marketable securities during 2013.
Interest income was $8 million in 2012 compared to $10 million in 2011. The decrease was primarily due to
a decrease in cash, cash equivalents and marketable securities and a decrease in the weighted-average interest
rate during 2012.
Interest Expense
Interest expense of $177 million in 2013 was relatively flat as compared to $175 million in 2012 and $180
million in 2011.
Other Income (Expense), Net
Other expense, net, in 2013 was $5 million compared to $6 million of other income, net, in 2012 and $199
million of other expense, net, in 2011.
In 2013, we recognized $5 million of other expense, net, primarily due to a $2 million loss from foreign
currency exchange rate fluctuations and a $2 million realized loss on sale of our auction rate securities (ARS)
investments.
In 2012, we recognized $6 million of other income, net, primarily due to other income recorded in the third
quarter of 2012, partially offset by a $5 million loss from foreign currency exchange rate fluctuations and a $4
million other-than-temporary impairment charge related to one of our ARS investments.
In 2011, we recognized an impairment charge on our investment in GF of approximately $209 million and a
$6 million loss related to our repurchase of $200 million in principal amount of our 6.00% Convertible Senior
Notes due 2015 (6.00% Notes), which is a portion of our outstanding 6.00% Notes, partially offset by an $8
million gain on foreign currency exchange rate fluctuations.
Income Taxes
We recorded an income tax provision of $9 million in 2013 and an income tax benefit of $34 million and $4
million in 2012 and 2011, respectively.
The income tax provision in 2013 was primarily due to $9 million of foreign taxes in profitable locations
and $3 million related to the reversal of previously recognized tax benefits associated with other comprehensive
income, offset by $3 million of tax benefits for Canadian co-op credits and the monetization of certain U.S. tax
credits.
The income tax benefit in 2012 was primarily due to a tax benefit of $36 million relating to our SeaMicro
acquisition, a $1 million tax benefit for the tax effects of items credited directly to other comprehensive income,
a $2 million tax benefit for Canadian co-op tax credits and a $9 million tax benefit associated with the successful
negotiation of a tax holiday in a foreign jurisdiction net of $14 million of foreign taxes in profitable locations.
The income tax benefit in 2011 was primarily due to tax benefits of $4 million from the monetization of
U.S. and Canadian tax credits, a $4 million reversal of unrecognized tax benefits in foreign jurisdictions,
primarily due to a favorable audit resolution in a foreign jurisdiction, net of $4 million of foreign taxes in
profitable locations.
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