AMD 2007 Annual Report Download - page 118

Table of Contents
NOTE 8: Income Taxes
The provision (benefit) for income taxes consists of:
2007 2006 2005
(In millions)
Current:
U.S. Federal $ — $ 1 $ (4)
U.S. State and Local — 1 1
Foreign National and Local 42 23 12
Total 42 25 9
Deferred:
U.S. Federal (15) 15 (2)
U.S. State and Local — — —
Foreign National and Local (4) (17) (14)
Total (19) (2) (16)
Provision for income taxes $ 23 $ 23 $ (7)
Pre-tax loss from foreign operations was $1.6 billion in 2007. Pre-tax loss from foreign operations was $365 million in 2006. Pre-tax loss from foreign
operations was $202 million in 2005 after elimination of minority interest.
Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of
December 29, 2007 and December 31, 2006 are as follows:
2007 2006
(In millions)
Deferred tax assets:
Net operating loss carryovers $ 836 $ 217
Deferred distributor income 57 88
Inventory valuation 64 21
Accrued expenses not currently deductible 134 135
Acquired intangibles 338 152
Tax deductible goodwill 337 —
Investments 66 27
Federal and state tax credit carryovers 229 157
Foreign capitalized research and development costs 185 138
Foreign research and development ITC credits 217 140
Other 175 156
Total deferred tax assets 2,638 1,231
Less: valuation allowance (2,286) (1,046)
352 185
Deferred tax liabilities:
Property, plant and equipment (17) (33)
Capitalized interest (15) (18)
Acquired intangibles (30) (71)
Tax deductible goodwill — (15)
Unrealized translation gain (166) (1)
Other (48) (50)
Total deferred tax liabilities (276) (188)
Net deferred tax assets (liabilities) $ 76 $ (3)
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008