SanDisk 2010 Annual Report Download - page 174

Amortization of acquisition-related intangible assets in fiscal year 2010 compared to fiscal year 2009 was
higher due to the acceleration of amortization expense in the third quarter of fiscal year 2010 related to the
remaining intangible asset acquired from MusicGremlin, Inc. Amortization of acquisition-related intangible
assets related to the intangible assets acquired from Matrix will continue to be amortized through the first quarter
of fiscal year 2012.
Amortization of acquisition-related intangible assets in fiscal year 2009 compared to fiscal year 2008 was
lower due to the impairment of certain Matrix and msystems acquisition-related intangible assets in the fourth
quarter of fiscal year 2008.
Restructuring Charges and Other.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
Restructuring and other ............................. n/a n/a $ — (100%) $ 35.5
Percent of revenue ................................. n/a 0.0% 1.1%
During fiscal years 2008, we implemented several restructuring plans which included reductions of our
workforce and consolidation of operations. We recorded no charge in fiscal year 2010 compared with negligible
restructuring charges and other in fiscal year 2009. The goal of these restructuring and other charges was to bring
our operational expenses to more appropriate levels relative to our net revenues, while simultaneously
implementing extensive company-wide expense-control programs. All expenses, including adjustments,
associated with our restructuring plans are included in Restructuring and Other in the Consolidated Statements of
Operations. For further discussion of our restructuring plans, refer to Note 9, “Restructuring Plans,” in the Notes
to Consolidated Financial Statements of this Form 10-K included in Part II, Item 8 of this report.
Other Income (Expense), net.
FY 2010
Percent
Change FY 2009
Percent
Change FY 2008
(In millions, except percentages)
Interest income .................................... $ 53.4 (16%) $ 63.3 (33%) $ 94.4
Interest expense ................................... (88.1) 33% (68.6) 4% (65.8)
Other income (expense), net .......................... 30.5 424% (10.3) (37%) (7.5)
Total other income (expense), net ................. $ (4.2) 73% $ (15.6) (174)% $ 21.1
Our fiscal year 2010 “Total other income (expense), net” was a lower net expense compared to fiscal year
2009 primarily due to non-recurring gains on the sale of assets and investments reflected in “Other income
(expense), net,” offset by increased interest expense related to the issuance of the 1.5% Notes due 2017 in August
2010 and lower interest income due to lower interest rates earned on our cash investments. “Other income
(expense), net” in fiscal year 2010 included a gain of $13 million related to the sale of the net assets of our
mobile phone SIM card business and the sale of certain public equity securities. “Other income (expense), net”
was a net expense for fiscal year 2009 due to bank charges and fees of ($11) million related to the restructuring
of the Flash Ventures’ master equipment leases and impairment of our equity investment in FlashVision of
($8) million.
Our fiscal year 2009 “Total other income (expense), net” decreased compared to fiscal year 2008 primarily
due to lower foreign currency gains and transaction costs incurred in fiscal year 2009 related to the sale of
equipment and transfer of lease obligations resulting from the restructuring of Flash Ventures, reflected in “Other
income (expense), net.” In addition, interest income in fiscal year 2009 declined by ($31) million compared to
fiscal year 2008, reflecting lower interest rates and lower average cash balances during the year.
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