AMD 2013 Annual Report Download - page 95

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Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax
purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 28, 2013
and December 29, 2012 are as follows:
December 28,
2013
December 29,
2012
(In millions)
Deferred tax assets:
Net operating loss carryovers ....................... $1,701 $ 1,455
Deferred distributor income ........................ 49 55
Inventory valuation .............................. 32 53
Accrued expenses not currently deductible ............ 113 118
Acquired intangibles ............................. 343 385
Tax deductible goodwill .......................... 271 323
Federal and state tax credit carryovers ............... 321 395
Foreign capitalized research and development costs ..... 22 36
Foreign research and development ITC credits ......... 305 316
Discount of convertible notes ...................... 65 40
Other ......................................... 217 291
Total deferred tax assets ....................... 3,439 3,467
Less: valuation allowance ......................... (3,375) (3,401)
Total deferred tax assets, net of valuation
allowance ................................ 64 66
Deferred tax liabilities:
Acquired intangibles ............................. (28) (33)
Other ......................................... (17) (16)
Total deferred tax liabilities .................... (45) (49)
Net deferred tax assets ................................ $ 19 $ 17
The breakdown between current and long-term deferred tax assets and deferred tax liabilities as of
December 28, 2013 and December 29, 2012 is as follows:
December 28,
2013
December 29,
2012
(In millions)
Current deferred tax assets ............................. $ 2 $ 1
Non-current deferred tax assets ......................... 18 16
Current deferred tax liabilities .......................... (1) —
Net deferred tax assets ................................ $19 $ 17
Current deferred tax assets and current deferred tax liabilities are included in captions “Prepaid expenses
and other current assets” and “Accrued and other current liabilities,” respectively, on the consolidated balance
sheets. Non-current deferred tax assets are included in the caption “Other assets” on the consolidated balance
sheets.
As of December 28, 2013, substantially all of the Company’s U.S. and foreign deferred tax assets, net of
deferred tax liabilities, continued to be subject to a valuation allowance. The realization of these assets is
dependent on substantial future taxable income which, at December 28, 2013, in management’s estimate, is not
more likely than not to be achieved. In 2013, the net valuation allowance decreased by $26 million primarily for
decreases in deferred tax assets related to the utilization of net operating losses due to pre-tax book income in
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