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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: jjayxxxx who wrote (92396)	1/16/2003 10:04:06 PM
From: qgambit	Read Replies (2) \| Respond to of 275872

<<Could you explain why AMD would not take a tax credit in their results today? Is it a choice they can make to make next year (2003) look better? (i.e. put all the rotten eggs in the 2002 basket.) Or is there a maximum credit which they've already exhausted or something?>> Because its more likely than not that such a tax credit would not be used (ie no profits to use it against) in the near future. The NOL rule allows the credit to be claimed if the firm feels that it will use it over the 20 year carryforward however most firms arent so agressivley optimistic. Even though the credit is not in the results today, its still there so that when profits return they will be tax free until the credit is used up.