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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: jonpcar who wrote (27851)	1/13/1998 6:47:00 PM
From: Petz	Read Replies (1) \| Respond to of 1572282

John C, re: Income Taxes Benefit and joint venture This is easier to follow on the 2nd income statement, the one marked "INFORMATION ONLY", where you'll see a line: Income from equity investment in FASL (16,770) This is shown as a negative cost rather than a positive profit, but it is, indeed, a profit from the joint venture. Including this investment, the net operating loss is 28.2M To this we add interest expense of 5.232M to get the line LOSS BEFORE INCOME TAXES (33,474) (thousands) The next two lines show a benefit from a tax credit and a cost for taxes on the joint venture. Net-Net, theres a tax benefit of (21,140), which amounts to 63% of the pre-tax loss. Why is the credit so large? Maybe someone else can explain that. Petz