AMD 2014 Annual Report Download - page 91

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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 27, 2014
and December 28, 2013 are as follows:
December 27,
2014
December 28,
2013
(In millions)
Deferred tax assets:
Net operating loss carryovers ....................... $1,978 $ 1,701
Deferred distributor income ........................ 28 49
Inventory valuation .............................. 22 32
Accrued expenses not currently deductible ............ 107 113
Acquired intangibles ............................. 248 343
Tax deductible goodwill .......................... 295 271
Federal and state tax credit carryovers ............... 391 321
Foreign capitalized research and development costs ..... 41 22
Foreign research and development ITC credits ......... 282 305
Discount of convertible notes ...................... 11 65
Other ......................................... 167 217
Total deferred tax assets ....................... 3,570 3,439
Less: valuation allowance ......................... (3,495) (3,375)
Total deferred tax assets, net of valuation
allowance ................................ 75 64
Deferred tax liabilities:
Acquired intangibles ............................. (37) (28)
Other ......................................... (19) (17)
Total deferred tax liabilities .................... (56) (45)
Net deferred tax assets ................................ $ 19 $ 19
The breakdown between current and non-current deferred tax assets and deferred tax liabilities as of
December 27, 2014 and December 28, 2013 is as follows:
December 27,
2014
December 28,
2013
(In millions)
Current deferred tax assets ............................. $ 2 $ 2
Non-current deferred tax assets ......................... 33 18
Current deferred tax liabilities .......................... (16) (1)
Net deferred tax assets ................................ $19 $19
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 27, 2014, 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 27, 2014, in management’s estimate, is not
more likely than not to be achieved. In 2014, the net valuation allowance increased by $120 million primarily for
increases in deferred tax assets related to the net operating losses generated from pre-tax book losses in the
85