AMD 2015 Annual Report Download - page 60

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In September 2013, we also sold an office building in Austin, Texas. We received net cash proceeds of $10
million in connection with the sale and recorded a $5 million gain in the third quarter of 2013.
In March 2013, we sold and leased back certain land and office buildings in Austin, Texas. We received net
cash proceeds of $164 million in connection with the sale and recorded a $52 million charge in the first quarter of
2013. The operating lease expires in March 2025 and provides for one 10-year optional renewal.
In March 2013, we also sold an office building in Markham, Ontario, Canada and leased back a portion of
the original space through June 2013. We received net cash proceeds of $13 million in connection with the sale
and recorded a $6 million gain in the first quarter of 2013.
The net charge of $24 million recognized in 2013 related to the real estate transactions described above is
recorded in the “Restructuring and other special charges, net” line item on the consolidated statements of
operations.
Interest Expense
Interest expense of $160 million in 2015 decreased by $17 million compared to $177 million in 2014,
primarily due to timing of issuances of new debt and repurchases of other debt in 2014.
Interest expense of $177 million in 2014 was flat compared to $177 million in 2013.
Other Expense, Net
Other expense, net, in 2015 was $5 million compared to $66 million of other expense, net, in 2014 and $0
million of other expense, net, in 2013.
In 2015, we recognized $5 million of other expense, net, primarily due to a loss from foreign currency
exchange rate fluctuations.
In 2014, we recognized $66 million of other expense, net, primarily due to a $61 million loss from debt
repurchases and a $7 million loss from foreign currency exchange rate fluctuations, partially offset by $3 million
interest income.
In 2013, we recognized $0 million of other expense, net, primarily due to a $2 million loss from foreign
currency exchange rate fluctuations and a $2 million realized loss on sale of our auction rate securities (ARS)
investments, offset by $5 million interest income.
Income Taxes
We recorded an income tax provision of $14 million, $5 million and $9 million in 2015, 2014 and 2013,
respectively.
The income tax provision in 2015 was primarily due to $16 million of foreign taxes in profitable locations,
offset by $2 million of tax benefits for Canadian tax credits and the monetization of certain U.S. tax credits.
The income tax provision in 2014 was primarily due to $7 million of foreign taxes in profitable locations,
offset by $2 million of tax benefits for Canadian tax credits and the monetization of certain U.S. tax credits.
The income tax provision in 2013 was primarily due to $9 million of foreign taxes in profitable locations
and $3 million related to the reversal of previously recognized tax benefits associated with other comprehensive
income, offset by $3 million of tax benefits for Canadian tax credits and the monetization of certain U.S. tax
credits.
54