SanDisk 2003 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2003 SanDisk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
substantially equal to their carrying value, excluding the Company's short-term investments in foundries, at
December 28, 2003 and December 29, 2002.
Management classiÑes its entire investment portfolio as available-for-sale at the time of purchase and
periodically reevaluates such designation. Debt securities classiÑed as available-for-sale are reported at fair
value. Unrecognized gains or losses on available-for-sale securities are included in equity until their
disposition. As of December 28, 2003, the amount of unrecognized gain related to the Company's available-
for-sale investment portfolio was approximately $0.6 million. Realized gains and losses and declines in value
judged to be other than temporary on available-for-sale securities are included in other income (expense). The
cost of securities sold is based on the speciÑc identiÑcation method.
The Company's unrestricted investments as of December 28, 2003 and December 29, 2002 are as follows
(in thousands):
December 28, December 29,
2003 2002
Cash and Cash equivalents:
Cash ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 12,660 $ 18,488
Money market fund ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 501,876 103,418
Commercial paper ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 157,979 96,879
Government agencies ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 61,964 2,000
Total cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 734,479 $220,785
Short term investments:
U.S. government agency obligationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 101,725 $ 47,627
Municipal notes/bondsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 335,102 110,491
Corporate notes/bonds ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42,290 27,738
Commercial paper ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì
Auction rate preferred stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 49,000 49,850
Marketable equity securities* ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 36,976 110,069
TotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 565,093 $345,775
Total cash, cash equivalents and short-term investmentsÏÏÏÏÏÏ $1,299,572 $566,560
* Includes Investment in Foundries, short-term, which also includes a warrant to purchase ordinary shares of
Tower Semiconductor Ltd., with an approximate fair value of $1.2 million as of December 28, 2003 and an
approximate value of $537 thousand as of December 29, 2002.
The total net unrealized gain on the available-for-sale securities at December 28, 2003 was $39.1 million
and includes an unrealized gain of $35.5 million on the Company's investment in UMC of $4.1 million and
Tower of $31.4 million and deferred tax expense of $3.2 million, and a $0.4 million unrealized gain on short-
term investments. The net unrealized (loss) on the available-for-sale securities at December 29, 2002 was
($43.0) million and includes an unrealized (loss) of ($6.6) million on the Company's investment in UMC
and deferred tax beneÑt of $37.5 million, oÅset by a $1.1 million unrealized gain on short-term investments.
Fair value of available-for-sale securities is based upon quoted market prices. Gross realized gains and losses
on sales of available-for-sale securities during the years ended December 28, 2003 and December 29, 2002
were immaterial.
68