AMD 2010 Annual Report Download - page 109

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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)
2010
Statutory federal income tax expense .............................. $178 35.0%
State taxes, net of federal benefit ................................. 1 0.2%
Foreign income at other than U.S. rates ............................ (24) (4.7)%
Foreign losses not benefited ..................................... 51 10.0%
US valuation allowance utilized .................................. (164) (32.3)%
Alternative minimum tax ........................................ (2) (0.4)%
Research & development credit monetization ........................ (2) (0.4)%
$ 38 7.4%
2009
Statutory federal income tax expense .............................. $147 35.0%
State taxes, net of federal benefit ................................. 1 0.2%
Foreign income at other than U.S. rates ............................ (63) (15.0)%
Foreign losses not benefited ..................................... 306 73.1%
Foreign benefits not realized ..................................... 122 29.1%
US special deduction under IRC 186 .............................. (396) (94.5)%
Research & development credit monetization ........................ (5) (1.2)%
$ 112 26.7%
2008
Statutory federal income tax expense .............................. $(832) 35.0%
State taxes, net of federal benefit ................................. 1 0.0%
Foreign income at other than U.S. rates ............................ (74) 3.1%
Foreign losses not benefited ..................................... 670 (28.2)%
US net operating losses not benefited .............................. 309 (13.0)%
Research & development credit monetization ........................ (6) 0.2%
$ 68 (2.9)%
The Company has made no provision for U.S. income taxes on approximately $406 million of cumulative
undistributed earnings of certain foreign subsidiaries through December 25, 2010 because it is the Company’s
intention to permanently reinvest such earnings. If such earnings were distributed, the Company would incur
additional income taxes of approximately $131 million (after an adjustment for foreign tax credits). These
additional income taxes may not result in income tax expense or a cash payment to the Internal Revenue Service,
but may result in the utilization of deferred tax assets that are currently subject to a valuation allowance.
The Company’s operations in Singapore and Malaysia currently operate under tax holidays, which will
expire in whole or in part at various dates through 2014. Certain of the tax holidays may be extended if specific
conditions are met. The net impact of these tax holidays was to increase the Company’s net income by $7 million
in 2010 (less than $.01 per share, diluted). Due to losses, the tax holidays did not impact the Company’s net
income in 2009 and decreased the Company’s net loss by approximately $7 million in 2008.
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