SanDisk 2010 Annual Report Download - page 204

Notes To Consolidated Financial Statements
The impact of the ineffective portion and amount excluded from effectiveness testing on designated cash
flow derivative contracts on the Company’s results of operations recognized in other income (expense) were as
follows (in thousands):
January 2,
2011
January 3,
2010
December 28,
2008
Foreign exchange contracts .................................. $ (583) $ (1,047) $ (9,696)
Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations. The effect
of non-designated derivative contracts on the Company’s results of operations recognized in other income
(expense) were as follows (in thousands):
January 2,
2011
January 3,
2010
December 28,
2008
Gain (loss) on foreign exchange contracts including forward point
income ................................................. $ (41,095) $ 92,291 $ (137,927)
Gain (loss) from revaluation of foreign currency exposures by foreign
exchange contracts ....................................... 41,514 (88,342) 180,466
Note 4: Balance Sheet Information
Accounts Receivable from Product Revenues, net. Accounts receivable from product revenues, net, were as
follows (in thousands):
January 2,
2011
January 3,
2010
Trade accounts receivable ............................................... $ 621,822 $ 534,549
Allowance for doubtful accounts .......................................... (8,416) (12,348)
Price protection, promotions and other activities ............................. (245,622) (287,794)
Total accounts receivable from product revenues, net ..................... $ 367,784 $ 234,407
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in
thousands):
January 2,
2011
January 3,
2010
December 28,
2008
Balance, beginning of period ................................. $ 12,348 $ 13,881 $ 13,790
Additions (reductions) charged to costs and expenses .......... (2,575) (719) 8,778
Deductions/write-offs ................................... (1,357) (814) (8,687)
Balance, end of period ...................................... $ 8,416 $ 12,348 $ 13,881
During the first quarter of fiscal year 2008, the Company recorded an additional provision for doubtful
accounts as well as a reversal of $12.0 million of product revenues associated with receivable balances related to
a customer having severe financial difficulties.
Inventory. Inventory was as follows (in thousands):
January 2,
2011
January 3,
2010
Raw material ......................................................... $ 314,027 $ 329,966
Work-in-process ...................................................... 48,889 63,767
Finished goods ........................................................ 146,669 202,760
Total inventory ................................................... $ 509,585 $ 596,493
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