AMD Announces Estimated Restructuring and Other Special Charges in Fourth Quarter; Company Expects to Record Non-Cash Charge to Eliminate Net Deferred Tax Assets.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 18, 2002 AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. (NYSE NYSE See: New York Stock Exchange :AMD) today announced that it currently estimates that restructuring and other special charges in its fourth quarter will be in the range of $300 million to $600 million, inclusive of inclusive of prep. Taking into consideration or account; including. charges associated with the Company's restructuring and cost-cutting initiatives announced on November 14, 2002. AMD stated that the Company also expects to record a charge to income tax expense in the fourth quarter in order to establish a 100% valuation allowance against its net deferred tax assets, which were $263 million as of the third quarter ended September 29, 2002. This charge to income tax expense would reduce after-tax results of operations but would not affect cash, cash flows or pre-tax results of operations for the quarter. The Company estimates that the impact of these two sets of charges in the fourth quarter would be $300 to $600 million on a pre-tax basis and $563 million to $863 million on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. (consisting of the $300 to $600 million pre-tax charges for restructuring and other special charges and a $263 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to tax expense for the 100% valuation allowance). The Company plans to announce results for the fourth quarter and the year on January 16, 2003. About AMD AMD is a global supplier of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. for the personal and networked computer and communications markets with manufacturing facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD). AMD on the Web For more AMD news and product information, please visit our virtual pressroom at www.amd.com/news/virtualpress/index.html. Additional press releases are available at www.amd.com/news/news.html. Note to Editors: AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and other jurisdictions. |
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