AMD 2015 Annual Report Download - page 61

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As of December 26, 2015, substantially all of our 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 26, 2015, in management’s estimate, is not more likely
than not to be achieved.
As of December 26, 2015, the Italian tax authorities had concluded their audit of our subsidiaries’ activities
in Italy for the years 2003 through 2013. We have agreed to a settlement of $11 million in taxes and penalties,
which was reflected in full in the 2015 tax provision, and $2 million in interest.
Stock-Based Compensation Expense
We allocated stock-based compensation expense related to employee stock options, restricted stock and
restricted stock units for the years ended December 26, 2015, December 27, 2014 and December 28, 2013 in our
consolidated statements of operations as follows:
2015 2014 2013
(In millions)
Cost of sales ................................................................. $ 3 $ 3 $ 5
Research and development ...................................................... 36 44 48
Marketing, general and administrative ............................................ 24 34 38
Total stock-based compensation expense, net of tax of $0 ............................. $63 $81 $91
During 2015, 2014 and 2013, we did not realize any excess tax benefits related to stock-based compensation
and therefore we did not record any effects relating to financing cash flows.
Stock-based compensation expense of $63 million in 2015 decreased by $18 million as compared to $81
million in 2014. The decrease was primarily due to a lower weighted average grant date fair value and the effect
of the 2015 and 2014 Restructuring Plans.
Stock-based compensation expense of $81 million in 2014 decreased by $10 million as compared to $91
million in 2013. The decrease was primarily due to lower expense related to stock options and restricted stock
granted in connection with our SeaMicro acquisition as most awards became fully vested during 2014 and lower
stock compensation expense as a result of our 2014 Restructuring Plan.
As of December 26, 2015, we had $11 million of total unrecognized compensation expense, net of estimated
forfeitures, related to stock options that will be recognized over a weighted-average period of 2.30 years. Also, as
of December 26, 2015, we had $88 million of total unrecognized compensation expense, net of estimated
forfeitures, related to restricted stock and restricted stock units including performance-based restricted stock units
that will be recognized over a weighted-average period of 1.99 years.
International Sales
International sales as a percentage of net revenue were 75% in 2015, 81% in 2014 and 85% in 2013. The
decrease in international sales as a percentage of net revenue in 2015 compared 2014 was primarily driven by a
decrease in sales in China. The decrease in international sales as a percentage of net revenue in 2014 compared to
2013 was primarily driven by an increase in net revenue from domestic sales of our semi-custom SoC products.
We expect that international sales will continue to be a significant portion of total sales in the foreseeable future.
Substantially all of our sales transactions were denominated in U.S. dollars.
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