SanDisk 2003 Annual Report Download - page 95

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
term portion of the Company's investments in UMC and Tower, net of the related tax eÅects, for all periods
presented (in thousands).
For the Twelve Months Ended
December 28, December 29, December 30,
2003 2002 2001
(In thousands)
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $168,859 $ 36,240 $(297,944)
Unrealized gain (loss) on foundries(1) ÏÏÏÏÏÏÏÏÏÏ 82,741 (89,728) 95,927
Unrealized gain (loss) on available-for-sale
securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (622) 292 908
Comprehensive income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $250,978 $(53,196) $(201,109)
(1) For Ñscal 2003, excludes a reversal of approximately $24.4 million in deferred tax expense included in
prior periods as a component of accumulated other comprehensive income associated with the UMC
shares that were subsequently embezzled and fraudulently sold in the third quarter of 2003 and
approximately $8.9 million in a similar reversal of deferred tax expense previously included in
accumulated other comprehensive income associated with the 35 million UMC shares that the Company
sold in its authorized sale in the third quarter of 2003.
Accumulated other comprehensive income (loss) presented in the accompanying consolidated balance
sheet consists of the accumulated gains and losses on available-for-sale marketable securities, net of taxes, for
all periods presented (in thousands):
2003 2002
Accumulated net unrealized gain (loss) on:
Available-for-sale short-term investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 433 $ 1,055
Available-for-sale investments in foundriesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38,673 (44,068)
Total accumulated other comprehensive income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $39,106 $(43,013)
Total accumulated other comprehensive income (loss) was $39.1 million and ($43.0) million at
December 28, 2003 and December 29, 2002, respectively and included gains (losses), net of taxes, on the
Company's investment in (i) UMC of $4.7 million at December 28, 2003 and ($44.0) million at
December 29, 2002 and (ii) Tower of $34.0 million and approximately ($50,000) at the same dates,
respectively. The amount of income tax expense (beneÑt) allocated to unrealized gain/loss on investments
was ($3.2) million and $37.4 million at December 28, 2003 and December 29, 2002, respectively. The amount
of income tax expense allocated to unrealized gain on available-for-sale securities was immaterial at
December 28, 2003 and December 29, 2002, respectively.
Note 13: Related Parties
The Company has entered into a joint venture agreement with Toshiba, under which they formed
FlashVision, to produce advanced NAND Öash memory wafers. (See Note 8.) In addition, the Company and
Toshiba will jointly develop and share the research and development expenses of future generations of
advanced NAND Öash memory products. The Company also purchases NAND Öash memory card products
from Toshiba. In 2003, the Company purchased NAND Öash memory wafers and card products from
FlashVision and Toshiba and made payments for shared research and development expenses totaling
approximately $223.5 million and $124.7 million in 2002. At December 28, 2003 and December 29, 2002, the
Company had accounts payable balances due to FlashVision of $30.4 million and $16.8 million respectively,
and balances due to Toshiba of $14.6 million and $9.5 million, respectively. At December 28, 2003 and
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