SanDisk 2010 Annual Report Download - page 173

This is a TAB type table. Insert
conts here. Annual Report
General and Administrative.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
General and administrative .......................... $ 166.5 (3)% $ 171.4 (16)% $ 204.8
Percent of revenue ................................. 3.5% 4.8% 6.1%
Our fiscal year 2010 general and administrative expense declined from fiscal year 2009 primarily due to
lower legal costs of ($14) million, outside advisor costs of ($6) million and bad debt expense of ($2) million,
partially offset by a non-cash charge of $17 million related to the modification of stock awards and a cash charge
of $4 million related to certain provisions and benefits pursuant to the retirement agreement of our former Chief
Executive Officer.
Our fiscal year 2009 general and administrative expense was reduced from fiscal year 2008 primarily due to
lower intellectual property legal costs of ($29) million and lower bad debt expense of ($9) million, partially
offset by an increase in employee-related costs of $5 million.
Impairment of Goodwill.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
Impairment of goodwill ............................. n/a n/a n/a n/a $ 845.5
Percent of revenue ................................. n/a n/a 25.2%
In the fourth quarter of fiscal year 2008, we concluded that there were sufficient indicators based on a
combination of factors, including the economic environment, current and forecasted operating results, NAND
flash memory industry pricing conditions and a sustained decline in our market capitalization, to require an
interim goodwill impairment analysis. As a result of the interim goodwill impairment analysis, we recognized an
impairment charge of $846 million. As of December 28, 2008, we have no goodwill remaining on our
Consolidated Balance Sheet.
Impairment of Acquisition-Related Intangible Assets.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
Impairment of acquisition-related intangible assets ........ n/a n/a n/a n/a $ 175.8
Percent of revenue ................................. n/a n/a 5.3%
In the fourth quarter of fiscal year 2008, we recorded a $176 million impairment on acquisition-related
intangible assets. This impairment was based upon forecasted discounted cash flows which considered factors
including a reduced business outlook primarily due to NAND flash memory industry pricing conditions. There
were no such impairments or impairment indicators in fiscal years 2010 and 2009.
Amortization of Acquisition-Related Intangible Assets.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
Amortization of acquisition-related intangible assets ...... $ 1.6 33% $ 1.2 (93)% $ 17.1
Percent of revenue ................................. 0.0% 0.0% 0.5%
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