SanDisk 2013 Annual Report Download - page 151

Amortization of Acquisition-related Intangible Assets.
Percent Percent
FY 2013 Change FY 2012 Change FY 2011
(In millions, except percentages)
Amortization of acquisition-related intangible
assets ............................ $ 11.2 24% $ 9.0 105% $ 4.4
Percent of revenue .................... 0.2% 0.2% 0.1%
Amortization of acquisition-related intangible assets in fiscal year 2013, compared to fiscal year 2012,
reflected higher amortization of intangible assets from our SMART Storage acquisition which was
completed in the third quarter of fiscal year 2013, partially offset by lower amortization of intangible assets
from our Pliant acquisition, which were impaired in fiscal year 2013.
Amortization of acquisition-related intangible assets in fiscal year 2012, compared to fiscal year 2011,
was higher due to increased amortization of intangible assets from the acquisitions of FlashSoft
Corporation, or FlashSoft, and Schooner Information Technology, Inc., or Schooner, as well as a full year
of amortization related to the acquisition of Pliant, offset by a reduction in the amortization of intangible
assets from a prior acquisition, which became fully amortized during the first quarter of fiscal year 2012.
Amortization of acquisition-related intangible assets associated with these acquisitions will continue
to be amortized through fiscal year 2016.
Impairment of Acquisition-related Intangible Assets.
Percent Percent
FY 2013 Change FY 2012 Change FY 2011
(In millions, except percentages)
Impairment of acquisition-related intangible
assets ............................ $ 83.2 ** $ 0.9 ** $ —
Percent of revenue .................... 1.4% —% —%
** Amount not meaningful
Impairment of acquisition-related intangible assets in fiscal year 2013, compared to fiscal year 2012,
reflected an impairment of in-process research and development, or IPR&D, and amortizable intangible
assets from our Pliant acquisition.
Other Income (Expense), net.
Percent Percent
FY 2013 Change FY 2012 Change FY 2011
(In millions, except percentages)
Interest income ...................... $ 48.8 (17%) $ 59.0 (2%) $ 60.4
Interest expense ...................... (91.5) 24% (119.7) 3% (123.3)
Other income (expense), net ............. (3.4) ** (8.5) ** 9.6
Total other income (expense), net ........ $ (46.1) ** $ (69.2) ** $ (53.3)
** Amount not meaningful
‘‘Total other income (expense), net’’ for the fiscal year 2013 reflected a lower net expense, compared
to fiscal year 2012, due primarily to lower interest expense as a result of lower average convertible debt
balances, lower interest income due to lower average interest income yield on our cash and investments, a
53
Annual Report