Advanced Micro Devices, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012



	2012			2011			2010
	(In millions)
Current:
U.S. Federal	$	—		$	(3	)	$	(4	)
U.S. State and Local	—			1			—
Foreign National and Local	6			4			47
Total	$	6		$	2		$	43
Deferred:
U.S. Federal	(37		)	—			—
Foreign National and Local	(3		)	(6		)	(5		)
Total	$	(40	)	$	(6	)	$	(5	)
Provision (benefit) for income taxes	$	(34	)	$	(4	)	$	38



	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



	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



Carryforward	Federal		State / Provincial		Expiration
	(In millions)
US-net operating loss carryovers	$	3,907	$	251	2013 to 2032
US-credit carryovers	$	478	$	177	2018 to 2031
Canada-net operating loss carryovers	$	347	$	347	2025 to 2028
Canada-credit carryovers	$	404	$	24	2012 to 2032
Canada-R&D pools	$	135	$	135	no expiration
Barbados-net operating loss carryovers	$	299	N/A		2013 to 2017
Other foreign net operating loss carryovers	$	12	N/A		various



	Tax			Rate
	(In millions except for percentages)
2012
Statutory federal income tax expense	$	(426	)	35.0	%
State taxes, net of federal benefit	1			(0.1	)%
Foreign income at other than U.S. rates	(13		)	1.1	%
US valuation allowance generated	406			(33.4	)%
Credit monetization	(2		)	0.2	%
	$	(34	)	2.8	%
2011
Statutory federal income tax expense	$	172		35.0	%
State taxes, net of federal benefit	1			0.2	%
Foreign income at other than U.S. rates	(2		)	(0.4	)%
US valuation allowance utilized	(171		)	(34.8	)%
Credit monetization	(4		)	(0.8	)%
	$	(4	)	(0.8	)%
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	)%
Credit monetization	(2		)	(0.4	)%
	$	38		7.4	%



	2012			2011			2010
	(In millions)
Balance at beginning of year	$	69		$	42		$	166
Increases for tax positions taken in prior years	3			28			—
Decreases for tax positions taken in prior years	(4		)	(4		)	(8		)
Increases for tax positions taken in the current year	3			8			7
Decreases for settlements with taxing authorities	(15		)	(5		)	(119		)
Decreases for lapsing of the statute of limitations	—			—			(4		)
Balance at end of year	$	56		$	69		$	42