SanDisk 2008 Annual Report Download - page 81

Notes To Consolidated Financial Statements
The following table summarizes at December 28, 2008, those securities that have been in an unrealized loss
position, the fair value and gross unrealized losses on the available-for-sale investments aggregated by type of
investment instrument, and the length of time that individual securities have been in a continuous unrealized loss
position. All unrealized losses on available-for-sale securities have been in a continuous unrealized loss position
for less than 12 months. See Note 14, “Related Parties and Strategic Investments—Tower Semiconductor,” for
discussion on the other than temporary impairment in the Tower equity securities. Available-for-sale securities
that were in an unrealized gain position have been excluded from the table (in thousands):
Unrealized Loss for Less than 12 Months
Market
Value
Gross
Unrealized Losses
U.S. corporate and municipal notes and bonds ..................... $132,018 $ (1,690)
Equity investments .......................................... 35,165 (32,999)
Total ................................................. $167,183 $(34,689)
The gross unrealized losses related to U.S. corporate and municipal notes and bonds were primarily due to
changes in interest rates. The gross unrealized loss related to publicly traded equity investments were due to
changes in market prices. The Company has cash flow hedges designated to mitigate risk from these equity
investments as of December 28, 2008, as discussed in Note 6, “Derivatives and Hedging Activities.” Gross
unrealized losses on all available-for-sale fixed income securities at December 28, 2008 are considered
temporary in nature. Factors considered in determining whether a loss is temporary include the length of time and
extent to which fair 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 28, 2008 were immaterial.
Fixed income securities at December 28, 2008 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
Due in one year or less .................................................. $ 472,023 $ 475,234
Due after one year through five years ....................................... 1,012,595 1,030,151
Total ............................................................ $1,484,618 $1,505,385
Note 4: Balance Sheet Information
Accounts Receivable from Product Revenues, net. Accounts receivable from product revenues, net, were as
follows (in thousands):
December 28,
2008
December 30,
2007
Trade accounts receivable ............................................... $ 584,262 $1,027,588
Related party accounts receivable ......................................... — 4,725
Allowance for doubtful accounts .......................................... (13,881) (13,790)
Price protection, promotions and other activities ............................. (448,289) (555,540)
Total accounts receivable from product revenues, net ..................... $ 122,092 $ 462,983
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