by Anton Shilov
11/18/2002 | 07:28 PM
AMD 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 charges associated with the Company’s restructuring and cost-cutting initiatives announced on November 14, 2002.
AMD stated that it 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. <%BANNER[article]%>
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 (consisting of the $300 to $600 million pre-tax charges for restructuring and other special charges and a $263 million non-cash charge 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.
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