SanDisk 2013 Annual Report Download - page 188

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The majority of the Company’s products have a warranty of less than three years, with a small number
of products having a warranty ranging up to ten years or more. For warranties ten years or greater,
including lifetime warranties, the Company uses the estimated useful life of the product to calculate the
warranty exposure. A provision for the estimated future cost related to warranty expense is recorded at the
time of customer invoice. The Company’s warranty liability is affected by customer and consumer returns,
product failures, number of units sold and repair or replacement costs incurred. Should actual product
failure rates, or repair or replacement costs, differ from the Company’s estimates, increases or decreases to
its warranty liability would be required.
Accumulated Other Comprehensive Income (Loss). AOCI presented in the accompanying Consolidated
Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency
translation and hedging activities, net of tax, for all periods presented (in thousands):
December 29, December 30,
2013 2012
Accumulated net unrealized gain (loss) on:
Available-for-sale investments ................................... $ 10,479 $ 15,919
Foreign currency translation .................................... (47,440) 155,389
Hedging activities ........................................... (39,498) (6,187)
Total accumulated other comprehensive income (loss) ...................... $ (76,459) $ 165,121
The amount of income tax (benefit) expense allocated to the unrealized gain (loss) on
available-for-sale investments, foreign currency translation and hedging activities was as follows (in
thousands):
Fiscal years ended
December 29, December 30, January 1,
2013 2012 2012
Available-for-sale investments ............................ $ (3,383) $ 3,121 $ 3,342
Foreign currency translation ............................. (38,006) (23,791) 10,315
Hedging activities .................................... — — 2,504
$ (41,389) $ (20,670) $ 16,161
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