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To: John Hull who wrote (168426)	7/17/2002 6:11:04 PM
From: L. Adam Latham	Read Replies (2) \| Respond to of 186894

John: We discussed this several days (weeks?) ago. AMD can use the tax benefit to offset taxes paid from the past two years, and/or up to 20 years into the future. They paid about $250M in income taxes in 2000, so I believe they could either refile the 2000 return and get a cash refund, or use the benefit in the future to offset taxes paid. Looks like AMD has about $1B in cash and short-term investments, along with $1.1B in total current liabilities. So it looks like they might need that cash refund. The detail I don't know about is whether AMD has to wait until the full-year results are in to file an amended return for 2000, or whether they could do it now. Qgambit helped on this before - do you know? Adam

To: John Hull who wrote (168426)	7/17/2002 7:01:01 PM
From: qgambit	Respond to of 186894

<what I don't know is the "shelf-life" of those accruals. How long can they be carried before they expire? Anyone?> Up to 20 years if future profit is "more likely than not." If it is more likely than not that the company will NOT be profitable over the 20 years then the tax benefit must be reversed. I believe this reversal would be recorded as tax expense on the income statement and reduce deferred tax assets on the balance sheet (not 100% sure here).