AMD 1995 Annual Report Download - page 240

notes
TO CONSOLIDATED FINANCIAL STATEMENTS
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were surrendered for conversion which resulted in the issuance of 6,824,694
shares of the company's common stock. Pursuant to previous arrangements, on
March 14, 1995, the company sold 28,518 shares of its common stock to certain
institutions and used the proceeds to fund the redemption of 1,435 shares of
preferred stock which were not converted.
NOTE 8 STOCKHOLDER RIGHTS PLAN
In February 1990, the company adopted a stockholder rights plan and declared a
dividend distribution of preferred stock purchase rights at the rate of one
right for each share of common stock held as of the close of business on
February 20, 1990. The rights were not exercisable, or transferable apart from
the common stock, until certain events occurred. The rights were redeemable at
any time at the option of the company.
On May 3, 1995, the company redeemed all its preferred stock purchase
rights for a redemption price of $.01 per right (approximately $1 million) paid
on May 24, 1995, to the holders of the company's common stock as of the
redemption date.
NOTE 9 INCOME TAXES
Provision for income taxes consists of:
(Thousands) 95 94 93
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Current:
U.S. Federal $ 58,683 $154,425 $83,598
U.S. State and Local 1,855 13,001 3,640
Foreign National and
Local 10,594 7,350 2,332
Deferred:
U.S. Federal 43,827 (18,239) (1,947)
U.S. State and Local (3,167) (2,820) 1,798
Foreign National and
Local 946 (14) (203)
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Provision for income taxes $112,738 $153,703 $89,218
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Tax benefits resulting from the exercise of nonqualified stock options and the
disqualifying disposition of shares acquired under the company's incentive stock
option and stock purchase plans reduced taxes currently payable as shown above
by $15.2 million, $37.4 million, and $43.4 million in 1995, 1994, and 1993,
respectively. Such benefits were credited to capital in excess of par value when
realized.
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 31, 1995, December 25, 1994, and December 26,
1993 are as follows:
(Thousands) 95 94 93
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Deferred tax assets:
Deferred distributor
income $ 40,583 $ 31,396 $ 31,349
Inventory reserves 29,665 18,809 14,935
Accrued expenses not
currently deductible 16,717 39,467 21,799
Federal and state tax
credit carryovers 6,249 2,873 30,888
Other 49,850 39,081 27,569
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Total deferred tax assets 143,064 131,626 126,540
Less: valuation allowance -- -- (26,415)
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Net deferred tax assets 143,064 131,626 100,125
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Deferred tax liabilities:
Depreciation (109,141) (59,614) (44,886)
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996