AMD 2008 Annual Report Download - page 131

The following is a summary of the various tax attribute carryforwards the Company had as of December 27,
2008. The amounts presented below include amounts related to excess stock option deductions, as discussed
above.
Carryforward Federal
State/
Provincial Expiration
(millions)
US-net operating loss carryovers ................................... $1,890 $149 2009 to 2028
US-credit carryovers ............................................ $ 412 $165 2009 to 2028
German-net operating loss carryovers ............................... $ 495 $341 No expiration
Canada-investment tax credit carryovers ............................. $ 124 N/A 2024 to 2028
Canada-R&D pools ............................................. $ 420 $182 No expiration
Barbados-net operating loss carryovers .............................. $ 305 N/A 2012 to 2017
Utilization of $94 million of the Company’s U.S. federal net operating loss carry-forwards are subject to
annual limitations as a result of the ATI acquisition and prior purchase transactions. Utilization of net operating
losses in Germany is limited to 60 percent of taxable income in any one year. Upon consummation of the
transactions contemplated by the Master Transaction Agreement, the Company will lose its existing net operating
losses in Germany because the Company’s ownership interest in the German subsidiaries that generated these net
operating loses will be transferred to The Foundry Company upon consummation of the transactions.
The Company also had other aggregate foreign loss carry-forwards totaling approximately $23 million in
other countries with various expiration dates.
The table below displays reconciliation between statutory federal income taxes and the total provision
(benefit) for income taxes.
Tax Rate
(In millions except
for percentages)
2008
Statutory federal income tax expense .............................. $(821) 35.0%
State taxes, net of federal benefit ................................. 1 0.0%
Foreign income at other than U.S. rates ............................ (74) 3.2%
Foreign losses not benefited ..................................... 670 (28.6)%
US net operating losses not benefited .............................. 298 (12.7)%
Research and development credit monetization ...................... (6) 0.2%
$ 68 (2.9)%
2007
Statutory federal income tax expense .............................. $(979) 35.0%
State taxes, net of federal benefit ................................. — %
Foreign income at other than U.S. rates ............................ (65) 2.3%
Foreign operating losses and deductions utilized ..................... (74) 2.6%
Foreign operating losses not benefited ............................. 558 (19.9)%
US net operating losses not benefited .............................. 587 (21.0)%
$ 27 (1.0)%
2006
Statutory federal income tax expense .............................. $ (50) 35%
State taxes, net of federal benefit ................................. 1 (0.9)%
Foreign income at other than U.S. rates ............................ (4) 2.9%
Benefit for foreign operating losses and deductions utilized ............ (58) 40.5%
US net operating losses not benefited .............................. 134 (93.5)%
$ 23 (16.0)%
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