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

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 26, 2015

The provision (benefit) for income taxes consists of:



	2015			2014			2013
	(In millions)
Current:
U.S. Federal	$	(1	)	$	(1	)	$	(2	)
U.S. State and Local	—			—			—
Foreign National and Local	16			6			10
Total	15			5			8
Deferred:
U.S. Federal	—			—			3
Foreign National and Local	(1		)	—			(2		)
Total	(1		)	—			1
Provision for income taxes	$	14		$	5		$	9

Schedule of Loss before Income Tax

Loss before income taxes consists of the following:



	2015			2014			2013
	(In millions)
U.S.	$	(1,100	)	$	(621	)	$	(397	)
Foreign	454			223			323
Total pre-tax loss	$	(646	)	$	(398	)	$	(74	)

Schedule of Deferred Tax Assets and Liabilities

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 26, 2015 and December 27, 2014 are as follows:



	December 26, 2015			December 27, 2014
	(In millions)
Deferred tax assets:
Net operating loss carryovers	$	2,342		$	1,978
Deferred distributor income	20			28
Inventory valuation	39			22
Accrued expenses not currently deductible	74			107
Acquired intangibles	257			248
Tax deductible goodwill	192			295
Federal and state tax credit carryovers	400			391
Foreign capitalized research and development costs	60			41
Foreign research and development ITC credits	231			282
Discount of convertible notes	1			11
Other	119			167
Total deferred tax assets	3,735			3,570
Less: valuation allowance	(3,669		)	(3,495		)
Total deferred tax assets, net of valuation allowance	66			75
Deferred tax liabilities:
Undistributed foreign earnings	(33		)	(37		)
Other	(23		)	(19		)
Total deferred tax liabilities	(56		)	(56		)
Net deferred tax assets	$	10		$	19

Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent

The breakdown between current and non-current deferred tax assets and deferred tax liabilities as of December 26, 2015 and December 27, 2014 is as follows:



	December 26, 2015			December 27, 2014
	(In millions)
Current deferred tax assets	$	8		$	2
Non-current deferred tax assets	48			33
Current deferred tax liabilities	(46		)	(16		)
Net deferred tax assets	$	10		$	19

Summary of Tax Attribute Carryforwards

The following is a summary of the various tax attribute carryforwards the Company had as of December 26, 2015. The amounts presented below include amounts related to excess stock option deductions, as discussed above.



Carryforward	Federal		State / Provincial		Expiration
	(In millions)
U.S.-net operating loss carryovers	$	6,478	$	335	2016 to 2035
U.S.-credit carryovers	$	401	$	204	2016 to 2035
Canada-net operating loss carryovers	$	173	$	173	2027 to 2028
Canada-credit carryovers	$	302	$	32	2021 to 2035
Canada-R&D pools	$	225	$	225	no expiration
Barbados-net operating loss carryovers	$	143	N/A		2016 to 2017
Other foreign net operating loss carryovers	$	19	N/A		various

Schedule of Effective Income Tax Rate Reconciliation

The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes.



	2015			2014			2013
	(In millions)
Statutory federal income tax benefit at 35% rate	$	(226	)	$	(139	)	$	(26	)
State taxes, net of federal benefit	1			1			1
Foreign (income) expense at other than U.S. rates	9			1			15
U.S. valuation allowance generated	232			144			22
Credit monetization	(2		)	(2		)	(3		)
Provision for income taxes	$	14		$	5		$	9

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the gross unrecognized tax benefits is as follows:



	2015			2014			2013
	(In millions)
Balance at beginning of year	$	28		$	52		$	56
Increases for tax positions taken in prior years	11			1			1
Decreases for tax positions taken in prior years	(1		)	—			(2		)
Increases for tax positions taken in the current year	2			2			4
Decreases for settlements with taxing authorities	(2		)	(27		)	(7		)
Balance at end of year	$	38		$	28		$	52