AMD 2014 Annual Report Download - page 90

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the Company, thus creating a receivable risk for the Company. Based upon certain factors, including a review of
the credit default swap rates for the Company’s counterparties, the Company determined its counterparty credit
risk to be immaterial. At December 27, 2014, the Company’s obligations under the contracts exceeded the
counterparties’ obligations by $7 million.
The Company is dependent on certain equipment and materials from a limited number of suppliers and
relies on a limited number of foreign companies to supply the majority of certain types of integrated circuit
packages for its internal back-end manufacturing operations. Similarly, certain non-proprietary materials or
components such as memory, PCBs, substrates and capacitors used in the manufacture of the Company’s
graphics products are currently available from only a limited number of sources. Interruption of supply or
increased demand in the industry could cause shortages and price increases in various essential materials. If the
Company or its third-party manufacturing suppliers are unable to procure certain of these materials, or its
foundries are unable to procure materials for manufacturing its products, its business would be materially
adversely affected.
NOTE 9: Income Taxes
The provision (benefit) for income taxes consists of:
2014 2013 2012
(In millions)
Current:
U.S. Federal ....................................... $ (1) $ (2) $—
U.S. State and Local ................................. — — —
Foreign National and Local ........................... 6 10 6
Total ......................................... 5 8 6
Deferred:
U.S. Federal ....................................... — 3 (37)
Foreign National and Local ........................... — (2) (3)
Total ......................................... — 1 (40)
Provision (benefit) for income taxes ........................ $ 5 $ 9 $ (34)
Loss before income taxes consists of the following:
2014 2013 2012
(In millions)
U.S. ............................................ $ (621) $ (397) $ (1,242)
Foreign ......................................... 223 323 25
Total pre-tax loss ............................. $ (398) $ (74) $ (1,217)
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