AMD 2011 Annual Report Download - page 62

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Interest Expense
2011 2010 2009
(In millions)
Total interest charges ....................................................... $180 $199 $439
Less: interest capitalized ..................................................... — — (1)
Interest expense ............................................................ $180 $199 $438
Total interest charges of $180 million in 2011 decreased by $19 million from $199 million in 2010. Interest
expense decreased primarily due to the net reduction in the principal amount of our outstanding debt.
Total interest charges of $199 million in 2010 decreased by $240 million from $439 million in 2009. Of this
decrease, $153 million was attributable to the deconsolidation of GF and $77 million was attributable to a net
reduction in the principal amount of our outstanding debt.
Other Income (Expense), Net
Other expense, net in 2011 was $199 million compared to $311 million of other income, net in 2010 and
$166 million of other income, net in 2009.
In 2011, we recognized an impairment charge on our investment in GF of approximately $209 million and a
$6 million loss related to our repurchase of $200 million aggregate principal amount of our 6.00% Notes,
partially offset by $8 million gain on foreign currency exchange rate fluctuations.
In 2010, we recognized a one-time, non-cash gain related to the deconsolidation of GF of approximately
$325 million, a $17 million gain from the sale of our marketable securities and an $8 million gain related to an
earn-out payment that we received in connection with the acquisition of a company that we had invested in,
partially offset by a $24 million loss related to our repurchase of $1,016 million principal amount of our 6.00%
Notes and $14 million loss due to foreign currency exchange rate fluctuations.
In 2009, we repurchased $344 million principal amount of our 6.00% Notes, resulting in a gain of $174
million, and we repurchased $1,015 million principal amount of our 5.75% Notes, resulting in a gain of $6
million. In addition, we recognized a gain of $15 million on settlement of a liability related to certain foreign
currency exchange contracts, a gain of $28 million on the sale of certain Handheld assets, and a $25 million gain
from a class action legal settlement with DRAM manufacturers. These gains were partially offset by a $27
million foreign exchange loss, a $17 million charge for real estate transfer taxes in connection with the GF
manufacturing joint venture transaction and a $10 million charge related to the AMTC joint venture. During
2009, we also redeemed the remaining outstanding principal amount of our 7.75% Notes resulting in a net loss of
$11 million and recorded other than temporary impairment charge of $3 million relating to our investment in
Spansion Inc.
Income Taxes
We recorded an income tax benefit of $4 million in 2011 and an income tax provision of $38 million and
$112 million in 2010 and 2009, respectively.
The income tax benefit in 2011 was primarily due to tax benefits of $4 million from the monetization of
U.S. and Canadian tax credits, a $4 million reversal of unrecognized tax benefits in foreign jurisdictions,
primarily due to a favorable audit resolution in a foreign jurisdiction, net of $4 million of taxes in profitable
foreign locations.
The income tax provision in 2010 was primarily due to withholding taxes paid to the Korean tax authorities
in connection with the payment we received from Samsung in December 2010 pursuant to the Patent License and
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