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

Income Taxes (Tables)

12 Months Ended

Dec. 27, 2014



	2014			2013			2012
	(In millions)
Current:
U.S. Federal	$	(1	)	$	(2	)	$	—
U.S. State and Local	—			—			—
Foreign National and Local	6			10			6
Total	5			8			6
Deferred:
U.S. Federal	—			3			(37		)
Foreign National and Local	—			(2		)	(3		)
Total	—			1			(40		)
Provision (benefit) for income taxes	$	5		$	9		$	(34	)



	December 27, 2014			December 28, 2013
	(In millions)
Deferred tax assets:
Net operating loss carryovers	$	1,978		$	1,701
Deferred distributor income	28			49
Inventory valuation	22			32
Accrued expenses not currently deductible	107			113
Acquired intangibles	248			343
Tax deductible goodwill	295			271
Federal and state tax credit carryovers	391			321
Foreign capitalized research and development costs	41			22
Foreign research and development ITC credits	282			305
Discount of convertible notes	11			65
Other	167			217
Total deferred tax assets	3,570			3,439
Less: valuation allowance	(3,495		)	(3,375		)
Total deferred tax assets, net of valuation allowance	75			64
Deferred tax liabilities:
Acquired intangibles	(37		)	(28		)
Other	(19		)	(17		)
Total deferred tax liabilities	(56		)	(45		)
Net deferred tax assets	$	19		$	19



	December 27, 2014			December 28, 2013
	(In millions)
Current deferred tax assets	$	2		$	2
Non-current deferred tax assets	33			18
Current deferred tax liabilities	(16		)	(1		)
Net deferred tax assets	$	19		$	19



Carryforward	Federal		State / Provincial		Expiration
	(In millions)
U.S.-net operating loss carryovers	$	5,432	$	231	2015 to 2034
U.S.-credit carryovers	$	403	$	193	2018 to 2034
Canada-net operating loss carryovers	$	217	$	217	2025 to 2028
Canada-credit carryovers	$	357	$	31	2021 to 2034
Canada-R&D pools	$	154	$	154	no expiration
Barbados-net operating loss carryovers	$	198	N/A		2015 to 2017
Other foreign net operating loss carryovers	$	5	N/A		various



	2014			2013			2012
	(In millions)
Statutory federal income tax benefit at 35% rate	$	(139	)	$	(26	)	$	(426	)
State taxes, net of federal benefit	1			1			1
Foreign (income) expense at other than U.S. rates	1			15			(13		)
U.S. valuation allowance generated	144			22			406
Credit monetization	(2		)	(3		)	(2		)
Provision (benefit) for income taxes	$	5		$	9		$	(34	)



	2014			2013			2012
	(In millions)
Balance at beginning of year	$	52		$	56		$	69
Increases for tax positions taken in prior years	1			1			3
Decreases for tax positions taken in prior years	—			(2		)	(4		)
Increases for tax positions taken in the current year	2			4			3
Decreases for settlements with taxing authorities	(27		)	(7		)	(15		)
Balance at end of year	$	28		$	52		$	56