AMD 2001 Annual Report Download - page 241

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
institution. The Company acquires investments in time deposits and certificates
of deposit from banks having combined capital, surplus and undistributed profits
of not less than $200 million. Investments in commercial paper and money market
auction rate preferred stocks of industrial firms and financial institutions are
rated A1, P1 or better. Investments in tax-exempt securities, including
municipal notes and bonds are rated AA, Aa or better, and investments in
repurchase agreements must have securities of the type and quality listed above
as collateral.
Concentrations of credit risk with respect to trade receivables are limited
because a large number of geographically diverse customers make up the Company's
customer base, thus spreading the trade credit risk. The Company controls credit
risk through credit approvals, credit limits and monitoring procedures. The
Company performs in-depth credit evaluations of all new customers and requires
letters of credit, bank guarantees and advance payments, if deemed necessary.
The counterparties to the agreements relating to the Company's derivative
financial instruments consist of a number of large international financial
institutions. The Company does not believe that there is significant risk of
nonperformance by these counterparties because the Company monitors their credit
ratings and limits the financial exposure and the amount of agreements entered
into with any one financial institution. While the notional amounts of financial
instruments are often used to express the volume of these transactions, the
potential accounting loss on these transactions if all counterparties failed to
perform is limited to the amounts, if any, by which the counterparties'
obligations under the contracts exceed the Company's obligations to the
counterparties.
NOTE 6: INCOME TAXES
The provision (benefit) for income taxes consists of:
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(Thousands) 2001 2000 1999
---- ---- ----
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Current:
U.S. Federal $ - $251,849 $ (7,072)
U.S. State and Local (6) 3,599 363
Foreign National and Local 21,595 20,496 14,095
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Total 21,589 275,944 7,386
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Deferred:
U.S. Federal (30,192) 25,163 134,050
U.S. State and Local (7,321) (43,789) 26,178
Foreign National and Local 1,461 (450) (264)
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Total (36,052) (19,076) 159,964
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Provision (benefit) for income taxes $(14,463) $ 256,868 $167,350
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002