AMD 2010 Annual Report Download - page 108

As of December 25, 2010, substantially all of the Company’s U.S. and foreign deferred tax assets, net of
deferred tax liabilities, continued to be subject to a valuation allowance. The realization of these assets is
dependent on substantial future taxable income which, at December 25, 2010, in management’s estimate, is not
more likely than not to be achieved. In 2010, the net valuation allowance decreased by $56 million primarily for
decreases in deferred tax assets related to the utilization of net operating losses due to pre-tax book income and
the utilization of foreign research and development credits to offset prior period audit adjustments, net of an
increase in U.S. deferred tax assets, primarily for foreign tax credits arising from withholding taxes. 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 25, 2010 and December 26, 2009, the Company had $213 million and $257 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 25, 2010 and December 26, 2009,
$10 million of deferred tax assets subject to valuation allowance related to a deductible discount for tax only
associated with the Company’s 6.00% Convertible Senior Notes due 2015 (the 6.00% 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 25,
2010. The amounts presented below include amounts related to excess stock option deductions, as discussed
above.
Carryforward Federal
State/
Provincial Expiration
(In millions)
US-net operating loss carryovers ................................... $2,497 $ 110 2012 to 2030
US-credit carryovers ............................................. $ 440 $158 2011 to 2030
Canada-net operating loss carryovers ................................ $ 24 $ 0 2018
Canada-credit carryovers ......................................... $ 347 $ 30 2011 to 2030
Canada-R&D pools .............................................. $ 235 $134 noexpiration
Barbados-net operating loss carryovers .............................. $ 305 N/A 2012 to 2017
Other foreign net operating loss carryovers ........................... $ 17 N/A various
Utilization of $81 million of the Company’s U.S. federal net operating loss carryforwards are subject to
annual limitations as a result of the ATI acquisition and prior purchase transactions.
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