SanDisk 2007 Annual Report Download - page 110

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value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the
Company’s intent and ability to hold an investment for a period of time sufficient to allow for any anticipated
recovery in market value.
Gross realized gains and losses on sales of available-for-sale securities during the fiscal year ended
December 30, 2007 were immaterial.
Debt securities at December 30, 2007 by contractual maturity are shown below (in thousands). Actual
maturities may differ from contractual maturities because issuers of the securities may have the right to prepay
obligations.
Cost
Estimated
Fair Value
Short and long-term investments:
Due in one year or less .................................. $ 980,157 $ 981,513
Due after one year through five years ....................... 984,536 995,541
Total................................................ $1,964,693 $1,977,054
Accounts Receivable from Product Revenues, net. Accounts receivable from product revenues, net, were as
follows (in thousands):
December 30,
2007
December 31,
2006
Trade accounts receivable .................................. $1,027,588 $1,056,616
Related party accounts receivable ............................ 4,725 41,708
Allowance for doubtful accounts ............................. (13,790) (11,452)
Price protection, promotions and other activities ................. (555,540) (475,132)
Total accounts receivable from product revenues, net ............ $ 462,983 $ 611,740
See Note 13, “Related Parties and Strategic Investments,” for additional information on related party accounts
receivable.
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in
thousands):
December 30,
2007
December 31,
2006
January 1,
2006
Balance, beginning of period ..................... $ 11,452 $ 8,050 $ 8,462
Additions charged to costs and expenses ............. 3,519 6,142 376
Deductions (write-offs) .......................... (1,181) (2,740) (788)
Balance, end of period .......................... $ 13,790 $ 11,452 $ 8,050
Inventory. Inventories, net of reserves, were as follows (in thousands):
December 30,
2007
December 31,
2006
Raw material ............................................ $ 197,077 $ 157,163
Work-in-process .......................................... 94,283 64,009
Finished goods ........................................... 263,717 274,812
Total inventory ......................................... $ 555,077 $ 495,984
F-14
Notes to Consolidated Financial Statements — (Continued)