SanDisk 2010 Annual Report Download - page 220

Notes To Consolidated Financial Statements
employees in fiscal years 2008 and 2009, respectively, in all functions, primarily in the U.S., Israel and Spain.
Contract termination fees and other charges of $21.0 million included restructuring charges for marketing
contract termination costs, technology license impairments and fixed asset impairments related to outsourcing
certain manufacturing activities. In addition to the restructuring charge, Contract termination fees and other
charges include an accrual for unrelated litigation settlements.
The following table sets forth the activity in the accrued restructuring balances related to the Fourth Quarter
of Fiscal 2008 Restructuring Plan and Other (in millions).
Severance
and Benefits
Contract
Termination
Fees
and Other
Charges Total
Restructuring and other provisions ............................... $ 10.4 $ 21.0 $ 31.4
Cash paid ................................................... (4.1) (2.4) (6.5)
Non-cash utilization ........................................... — (4.6) (4.6)
Accrual balance at December 28, 2008 ........................ 6.3 14.0 20.3
Restructuring ................................................ 2.2 — 2.2
Cash paid ................................................... (7.9) (13.1) (21.0)
Accrual adjustments .......................................... (0.5) (0.9) (1.4)
Accrual balance at January 3, 2010 ........................... 0.1 — 0.1
Accrual adjustments .......................................... (0.1) — (0.1)
Accrual balance at January 2, 2011 ........................... $ — $ — $ —
During fiscal year 2010, the Company completed the final phase of the Fourth Quarter of Fiscal 2008
Restructuring plan and adjusted the remaining accrued amounts.
Note 10: Income Taxes
The provision for income taxes consists of the following (in thousands):
Fiscal Years Ended
January 2,
2011
January 3,
2010
December 28,
2008
Current:
Federal ............................................... $ 268,571 $ 15,531 $ (245,361)
State ................................................. 20,557 7,354 7,246
Foreign .............................................. 40,490 78,490 46,925
329,618 101,375 (191,190)
Deferred:
Federal ............................................... (143,406) (11,271) 213,980
State ................................................. (23,931) 139 36,655
Foreign .............................................. (4,990) (1,752) (25,195)
(172,327) (12,884) 225,440
Provision for income taxes ................................... $ 157,291 $ 88,491 $ 34,250
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