AMD 1995 Annual Report Download - page 242

notes
TO CONSOLIDATED FINANCIAL STATEMENTS
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The following is a reconciliation between statutory federal income taxes and the
total provision for income taxes:
95 94 93
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(Thousands except percent) Tax Rate Tax Rate Tax Rate
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Statutory federal income tax provision $132,417 35.0% $164,344 35.0% $111,522 35.0%
State taxes net of federal benefit 216 0.1 6,601 1.4 3,535 1.1
Tax exempt Foreign Sales Corporation income (6,848) (1.8) (8,955) (1.9) (7,236) (2.3)
Tax credits utilized -- -- -- -- (5,004) (1.5)
Foreign income at other than U.S. rates (11,503) (3.1) (9,633) (2.1) (10,398) (3.3)
Other (1,544) (0.4) 1,346 0.3 (3,201) (1.0)
------- ---- ------- ---- ------- ----
$112,738 29.8% $153,703 32.7% $ 89,218 28.0%
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No provision has been made for income taxes on approximately $264.6 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 $92.6 million would accrue.
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
1996 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 in
net income of approximately $6.2 million ($0.06 per share) in 1995.
NOTE 10 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 31, 1995,
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 uncommitted, unsecured revolving lines of credit
are:
(Thousands except percent) 95 94
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Total lines of credit $345,801 $378,182
Portion of lines of credit available to
foreign subsidiaries 95,801 128,182
Amounts outstanding at year-end:
Short-term 27,070 32,459
Short-term borrowings:
Average daily borrowings 29,666 33,449
Maximum amount outstanding at
any month-end 36,105 35,384
Weighted monthly average interest rate 4.19% 4.32%
Average interest rate on amounts
outstanding at year-end 4.41% 4.42%
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Interest on foreign and short-term domestic borrowings is negotiated at the time
of the borrowing.
Information with respect to the company's long-term debt and capital lease
obligations at year-end is:
(Thousands) 95 94
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Term loan with variable interest at 7.06%
at December 31, 1995 payable quarterly
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996