AMD 1994 Annual Report Download - page 413

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Under SFAS No. 109, deferred income taxes reflect the net tax effects of tax
carryforwards and temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for income
tax purposes. Significant components of the company's deferred tax assets and
liabilities as of December 25, 1994, December 26, 1993, and December 28, 1992 as
restated under SFAS No. 109, are as follows:
- - -------------------------------------------------------------------------------------------------
(Thousands) 1994 1993 1992
-------- -------- --------
Deferred tax assets:
Deferred distributor income $31,396 $31,349 $22,402
Inventory reserves 18,809 14,935 16,690
Accrued expenses not currently deductible 39,467 21,799 33,995
Federal tax credit carryovers 2,873 30,888 52,208
Other 39,081 27,569 31,600
-------- -------- --------
Total deferred tax assets 131,626 126,540 156,895
Less: valuation allowance - (26,415) (47,427)
-------- -------- --------
Net deferred tax assets 131,626 100,125 109,468
-------- -------- --------
Deferred tax liabilities:
Depreciation (59,614) (44,886) (43,742)
Other (15,855) (20,154) (30,993)
-------- -------- --------
Total deferred tax liabilities (75,469) (65,040) (74,735)
-------- -------- --------
Net deferred tax assets $56,157 $35,085 $34,733
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The 1993 and 1992 valuation allowances for deferred tax assets, attributable to
stock option deductions, were credited to equity upon realization in 1994 and
1993.
Under SFAS No. 96, the components of the deferred taxes for 1992 consisted
of:
- - -----------------------------------------------------------------------
(Thousands) 1992
--------
Deferred distributor income $(22,402)
Inventory reserves (16,690)
Accrued expenses not currently deductible (31,686)
Depreciation 41,502
Other (1,963)
--------
$(31,239)
========
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Pretax income from foreign operations was $45.7 million in 1994, $40.0 million
in 1993, and $32.0 million in 1992.
The following is a reconciliation between statutory federal income
taxes and the total provision for income taxes.
- - ------------------------------------------------------------------------------------------------------------------------------
1994 1993 1992
SFAS 109 Method SFAS 109 Method SFAS 96 Method
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(Thousands except percent) Tax Rate Tax Rate Tax Rate
--------------------------------------------------------------------------
Statutory federal income tax provision $164,344 35.0% $111,522 35.0% $92,355 34.0%
Operating losses utilized - - - - (46,534) (17.1)
State taxes net of federal benefit 6,601 1.4 3,535 1.1 5,228 1.9
Tax exempt foreign sales corporation income (8,955) (1.9) (7,236) (2.3) (6,175) (2.3)
Tax credits utilized - - (5,004) (1.5) (12,306) (4.5)
Foreign income at other than U.S. rates (9,633) (2.1) (10,398) (3.3) (5,948) (2.2)
Other 1,346 0.3 (3,201) (1.0) - -
-------- ---- -------- ---- ------- -----
$153,703 32.7% $ 89,218 28.0% $26,620 9.8%
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995