AMD 2007 Annual Report Download - page 71

Table of Contents
during the year ended December 29, 2007, primarily due to the receipt of a retroactive tax holiday during the fourth quarter of the current year.
Interest and penalties related to unrecognized tax benefits decreased by a net $12 million and a net two million, respectively, for the year ended
December 29, 2007. Substantially all of the net reduction in interest and penalties occurred in the third quarter of 2007 and was primarily due to the expiration of
the statute of limitations in certain foreign jurisdictions.
During the 12 months beginning December 30, 2007, we expect to reduce our unrecognized tax benefits by approximately $43 million primarily from the
expiration of certain statutes of limitation and audit resolutions. We do not believe it is reasonably possible that other unrecognized tax benefits will materially
change in the next 12 months. However, the resolution of and/or closure on open audits is highly uncertain.
As of December 29, 2007, the Canadian Revenue Agency, or CRA, is auditing ATI for the years 2000—2004. The audit has been completed and currently
is in the review process. As of December 29, 2007, we were not under audit by the U.S. Internal Revenue Service. However, an IRS audit of AMD’s tax years
2004 and 2005 is scheduled to commence in March 2008. AMD and its subsidiaries have several foreign, foreign provincial, and U.S. state audits in process at
any one point in time. We have provided for uncertain tax positions that require a FIN 48 liability.
As a result of the application of FIN 48, we have recognized $61 million of current and long-term deferred tax assets, previously under a valuation
allowance, with $61 million of liabilities for unrecognized tax benefits as of December 29, 2007.
66
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008