SanDisk 2007 Annual Report Download - page 124

Download and view the complete annual report

Please find page 124 of the 2007 SanDisk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 157

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157

Note 10: Income Taxes
The provision for income taxes consists of the following (in thousands):
December 30,
2007
December 31,
2006
January 1,
2006
Fiscal Years Ended
Current:
Federal ..................................... $108,636 $174,320 $159,147
State ....................................... 19,958 27,788 24,592
Foreign ..................................... 81,442 63,841 32,323
210,036 265,949 216,062
Deferred:
Federal ..................................... (22,670) (22,623) 15,663
State ....................................... (654) (9,585) (3,413)
Foreign ..................................... (11,864) (3,548) (1,389)
(35,188) (35,756) 10,861
Provision for income taxes ........................ $174,848 $230,193 $226,923
Current foreign income taxes includes $66.5 million, $59.2 million and $28.3 million of taxes withheld on
royalties received for the fiscal years ended December 30, 2007, December 31, 2006 and January 1, 2006,
respectively.
Income before provision for income taxes consisted of the following (in thousands):
December 30,
2007
December 31,
2006
January 1,
2006
Fiscal Years Ended
United States .................................. $454,147 $193,845 $500,727
International ................................... (55,731) 236,863 112,580
Total......................................... $398,416 $430,708 $613,307
The Company’s provision for income taxes differs from the amount computed by applying the federal statutory
rates to income before taxes as follows:
December 30,
2007
December 31,
2006
January 1,
2006
Fiscal Years Ended
U.S. federal statutory rate ......................... 35.0% 35.0% 35.0%
State taxes, net of federal benefit .................... 3.7 3.1 2.2
Non-deductible share-based compensation expense ....... 5.0 2.9 —
Write-off of acquired in-process technology ............ — 18.3 —
Tax-exempt interest income ........................ (5.7) (2.7) (0.8)
Foreign earnings at other than U.S. rates .............. (4.0) (2.9) —
Foreign losses not benefited........................ 7.8 0.6 —
Other ........................................ 2.1 (0.8) 0.6
43.9% 53.5% 37.0%
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for income tax return reporting purposes.
F-28
Notes to Consolidated Financial Statements — (Continued)