AMD 2000 Annual Report Download - page 408

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
assets and liabilities as of December 31, 2000 and December 26, 1999 are as
follows:
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(Thousands) 2000 1999
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Deferred tax assets:
Net operating loss carryovers $ 3,934 $ 231,542
Deferred distributor income 32,848 32,759
Inventory reserves 22,327 27,974
Accrued expenses not currently deductible 46,400 28,149
Federal and state tax credit carryovers 120,938 81,671
Other 82,246 67,686
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Total deferred tax assets 308,693 469,781
Less: valuation allowance - (215,391)
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308,693 254,390
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Deferred tax liabilities:
Depreciation (222,355) (188,879)
Other (71,797) (70,046)
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Total deferred tax liabilities (294,152) (258,925)
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Net deferred tax assets (liabilities) $ 14,541 $ (4,535)
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The valuation allowance for deferred tax assets decreased $215.4 million in 2000
from 1999 primarily due to the realization of tax benefits from operating losses
incurred during 1999.
Pre-tax income from foreign operations was approximately $83 million in 2000 and
$62 million in 1999. Pre-tax loss from foreign operations was approximately $36
million in 1998.
The federal and state tax credit and net operating loss carryovers expire
beginning in the year 2002 through 2020.
The table below displays a reconciliation between statutory federal income taxes
and the total provision (benefit) for income taxes.
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2000
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(Thousands except percent) Tax Rate
--- ----
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Statutory federal income tax expense $438,165 35.0 %
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State taxes, net of federal benefit 9,292 0.7
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Tax-exempt foreign sales corporation income (1,756) (0.2)
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Foreign income at other than U.S. rates (9,091) (0.7)
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Valuation allowance (utilized)/provided (177,008) (14.1)
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Tax credits (5,000) (0.4)
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001