AMD 2004 Annual Report Download - page 93

Table of Contents
The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes.
(In thousands except percent) Tax Rate
2004
Statutory federal income tax expense $ 33,948 35.0%
State taxes, net of federal benefit — 0.0%
Foreign income at other than U.S. rates (20,689) -21.3%
Foreign losses not benefited 22,482 23.1%
Benefit for net operating losses utilized (38,513) -39.7%
Tax on repatriated dividends 8,610 8.9%
Other — —
$5,838 6.0%
2003
Statutory federal income tax expense $ (97,113) -35.0%
State taxes, net of federal benefit — 0.0%
Foreign income at other than U.S. rates (21,579) -7.7%
Net operating losses not currently benefited 118,464 42.7%
Other 3,164 1.1%
$2,936 1.1%
2002
Statutory federal income tax expense $ (442,611) -35.0%
State taxes, net of federal benefit 24,602 1.9%
Net operating losses not currently benefited 462,595 36.6%
Other — —
$44,586 3.5%
The Company has made no provision for U.S. income taxes on approximately $500 million of cumulative undistributed earnings of certain foreign
subsidiaries through December 26, 2004 because it is the Company’s intention to permanently reinvest such earnings. If such earnings were distributed, the
Company would accrue additional income tax expense of approximately $104 million.
NOTE 7: Debt
Revolving Credit Facilities
AMD Revolving Credit Facility
The Company’s revolving credit facility provides for a secured revolving line of credit of up to $100 million that expires in July 2007. The Company can
borrow, subject to amounts set aside by the lenders, up to 85 percent of the Company’s eligible accounts receivable from OEMs and 50 percent of its eligible
accounts receivable from distributors. As of December 26, 2004, no borrowings were outstanding under this revolving credit facility.
Pursuant to the terms of this revolving credit facility, the Company has to comply, among other things, with the following financial covenants if its net
domestic cash (as defined in the revolving credit facility) declines below $125 million:
• restrictions on the Company’s ability to pay cash dividends on its common stock;
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005