AMD 2012 Annual Report Download - page 99

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Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax
purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 29, 2012
and December 31, 2011 are as follows:
December 29,
2012
December 31,
2011
(In millions)
Deferred tax assets:
Net operating loss carryovers ....................... $1,455 $ 991
Deferred distributor income ........................ 55 63
Inventory valuation .............................. 53 25
Accrued expenses not currently deductible ............ 118 111
Acquired intangibles ............................. 385 427
Tax deductible goodwill .......................... 323 375
Federal and state tax credit carryovers ............... 395 358
Foreign capitalized research and development costs ..... 36 85
Foreign research and development ITC credits ......... 316 272
Discount of convertible notes ...................... 40 59
Other ......................................... 291 275
Total deferred tax assets ....................... 3,467 3,041
Less: valuation allowance ......................... (3,401) (2,978)
66 63
Deferred tax liabilities:
Capitalized interest ............................... — (1)
Acquired intangibles ............................. (33) —
Investments .................................... — (31)
Other ......................................... (16) (17)
Total deferred tax liabilities .................... (49) (49)
Net deferred tax assets ................................ $ 17 $ 14
The breakdown between current and long-term deferred tax assets and deferred tax liabilities as of
December 29, 2012 and December 31, 2011 is as follows:
December 29,
2012
December 31,
2011
(In millions)
Current deferred tax assets ............................. $ 1 $ 1
Non-current deferred tax assets ......................... 16 13
Net deferred tax assets ................................ $17 $14
Current deferred tax assets and current deferred tax liabilities are included in captions “Prepaid expenses
and other current assets” and “Accrued Liabilities,” respectively, on the consolidated balance sheet. Non-current
deferred tax assets and non-current deferred tax liabilities are included in captions “Other assets” and “Other
long-term liabilities,” respectively, on the consolidated balance sheet.
As of December 29, 2012, 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 29, 2012, in management’s estimate, is not
more likely than not to be achieved. In 2012, the net valuation allowance increased by $423 million primarily for
91