SanDisk 2013 Annual Report Download - page 187

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
borrower, where material or known. Impairments, when required for credit worthiness, are recorded in
other income (expense). The Company makes or will make long-term loans to Flash Ventures to fund new
process technologies and additional wafer capacities. The Company aggregates its Flash Ventures notes
receivable into one class of financing receivables due to the similar ownership interest and common
structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no
loan impairments were recorded.
Other Non-current Assets. Other non-current assets were as follows (in thousands):
December 29, December 30,
2013 2012
Prepaid tax on intercompany transactions .............................. $ 37,747 $ 42,118
Prepayment to Flash Forward Ltd. .................................. — 5,144
Convertible note issuance costs ..................................... 20,612 8,708
Long-term prepaid income tax ...................................... 66,176 63,008
Other non-current assets .......................................... 42,895 34,832
Total other non-current assets ................................... $ 167,430 $ 153,810
Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands):
December 29, December 30,
2013 2012
Accrued payroll and related expenses ................................. $ 227,779 $ 102,269
Derivative contract payables ....................................... 45,741 13,584
Taxes payable ................................................. 59,618 25,476
Other accrued liabilities .......................................... 176,594 116,210
Total other current accrued liabilities .............................. $ 509,732 $ 257,539
Non-current Liabilities. Non-current liabilities were as follows (in thousands):
December 29, December 30,
2013 2012
Deferred tax liabilities ........................................... $ 3,482 $ 28,672
Income tax liabilities ............................................ 205,266 208,629
Deferred credits on intercompany transactions ........................... 15,065 58,548
Other non-current liabilities ....................................... 83,270 112,098
Total non-current liabilities ..................................... $ 307,083 $ 407,947
Warranties. The liability for warranty expense is included in Other current accrued liabilities and
Non-current liabilities in the accompanying Consolidated Balance Sheets, and the activity was as follows
(in thousands):
Fiscal years ended
December 29, December 30, January 1,
2013 2012 2012
Balance, beginning of period ............................. $ 38,787 $ 26,957 $ 24,702
Additions and adjustments to cost of revenue .............. 35,763 33,247 29,444
Usage ......................................... (30,926) (21,417) (27,189)
Balance, end of period ................................. $ 43,624 $ 38,787 $ 26,957
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Annual Report