AMD 1993 Annual Report Download - page 376

10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Under SFAS 96, the components of the deferred (prepaid) taxes for 1992 and 1991
consist of:
Thousands 1992 1991
- ----------------------------------------------------------------------------------------------------------------------
Deferred distributor income $ (22,402) $ -
Inventory reserves (16,690) -
Accrued expenses not currently deductible (31,686) -
Depreciation 41,502 2,347
Other (1,963) 173
---------- -------
$ (31,239) $ 2,520
- ----------------------------------------------------------------------------------------------------------------------
Pretax income from foreign operations was $40.0 million in 1993, $32.0 million
in 1992, and $18.9 million in 1991.
The following is a reconciliation between statutory federal income taxes and
the total provision for taxes on income.
1993 SFAS 109 METHOD 1992 SFAS 96 METHOD 1991 SFAS 96 METHOD
-------------------- ------------------- -------------------
Thousands except percent TAX RATE TAX RATE TAX RATE
- ----------------------------------------------------------------------------------------------------------------------
Statutory federal income tax provision $ 111,213 35.0% $ 92,355 34.0% $ 49,398 34.0%
Operating losses utilized - - (46,534) (17.1) (30,392) (20.9)
State taxes net of federal benefit 3,535 1.1 5,228 1.9 4,611 3.2
Tax exempt Foreign Sales
Corporation income (7,236) (2.3) (6,175) (2.3) (5,040) (3.5)
Tax credits utilized (5,004) (1.5) (12,306) (4.5) - -
Foreign income at other than U.S. rates (10,398) (3.3) (5,948) (2.2) (6,301) (4.3)
Adjustment of previously provided taxes - - - - (12,276) (8.5)
Other (3,139) (1.0) - - - -
---------- -------- -------- ------- -------- --------
$ 88,971 28.0% $ 26,620 9.8% $ - -%
- -----------------------------------------------------------------------------------------------------------------------
No provision has been made for income taxes on approximately $203 million of
cumulative undistributed earnings of certain foreign subsidiaries because it is
the company's intention to permanently invest such earnings. If such earnings
were distributed, additional taxes of $71 million would accrue.
For federal income tax purposes, the company has general business credit
carryforwards of $19.0 million which will expire from 2000 to 2002. The company
also has alternative minimum tax credits of $11.3 million that can be carried
forward indefinitely.
The company's Far East assembly and test plants in Singapore and Thailand are
operated under various tax holidays which expire in whole or in part during
1994 and 1998. Possible extensions of the holiday period, as well as other tax
incentives, are anticipated to result in minimal tax liabilities in these
countries through 1998. The net impact of these tax holidays was an increase to
net income of approximately $5.1 million ($.05 per share) in 1993.
6. DEBT
The company has certain debt agreements that contain provisions regarding
restrictions on cash dividends, maintenance of specified working capital and
net worth levels and specific financial ratio requirements. At December 26,
1993, the company was in compliance with all restrictive covenants of such debt
agreements and all retained earnings were restricted as to payments of cash
dividends on common stock.
Significant elements of committed and uncommitted, unsecured revolving
lines of credit are:
Thousands except percent 1993 1992 1991
- ----------------------------------------------------------------------------------
Total lines of credit $ 188,200 $ 100,946 $ 105,780
Portion of lines of credit
available to foreign
subsidiaries 83,200 100,946 105,650
Amounts outstanding at
year-end: Short-term 30,994 40,659 51,421
Short-term borrowings:
Average daily borrowings 35,783 45,381 50,612
Maximum amount
outstanding at any
month-end 38,009 52,026 52,278
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1994