AMD 2009 Annual Report Download - page 112

As of December 26, 2009 and December 27, 2008, non-current deferred tax assets of approximately $102
million and $92 million, respectively, were included in the caption “Other assets” on the Company’s
consolidated balance sheet. As of December 27, 2008, non-current deferred tax assets on the balance sheet
include $5 million of prepaid tax. As of December 26, 2009, current deferred tax liabilities of approximately
$9 million were included in the caption “Accrued liabilities” on the Company’s consolidated balance sheet.
As of December 26, 2009, substantially all of the Company’s U.S. and foreign deferred tax assets other than
German deferred tax assets, net of deferred tax liabilities, are subject to a full valuation allowance. The
realization of these assets is dependent on substantial future taxable income which, at December 26, 2009, in
management’s estimate, is not more likely than not to be achieved. In 2009, the net valuation allowance
decreased by $93 million primarily for decreases in deferred tax assets related to tax deductible goodwill,
intangibles and discount of convertible notes. In 2008 the net valuation allowance increased by $1.1 billion
primarily to provide valuation allowance for deferred tax assets related to tax deductible goodwill, intangibles
and discount of convertible notes.
As of December 26, 2009 and December 27, 2008, the Company had $257 million and $251 million,
respectively, of deferred tax assets subject to a valuation allowance that related to excess stock option deductions,
which are not presented in the deferred tax asset balances. As of December 26, 2009 and December 27, 2008,
$10 million of deferred tax assets subject to valuation allowance related to a deductible discount for tax only
associated with the Company’s convertible notes. The tax benefit from these deductions will increase capital in
excess of par when realized.
The following is a summary of the various tax attribute carryforwards the Company had as of December 26,
2009. 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 ................................... $1,872 $152 2015 to 2029
US-credit carryovers ............................................ 403 161 2010 to 2029
German-net operating loss carryovers ............................... 63 62 Noexpiration
Canada-net operating loss carryovers ............................... 52 51 2018
Canada-investment tax credit carryovers ............................. 368 N/A 2024 to 2028
Canada-R&D pools ............................................. 138 185 Noexpiration
Barbados-net operating loss carryovers .............................. 305 N/A 2012 to 2017
Utilization of $81 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. The Company also had other
aggregate foreign loss carry-forwards totaling approximately $40 million in other countries with various
expiration dates.
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