SanDisk 2004 Annual Report Download - page 59

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Table of Contents
Notes to Consolidated Financial Statements — (Continued)
The total net unrealized loss on available−for−sale securities at January 2, 2005 was $1.8 million and includes an unrealized gain
of $0.8 million on the Company’s investment in United Microelectronics Corporation (UMC) and deferred tax expense of
$0.3 million, and $2.3 million of unrealized losses on short−term investments. The total net unrealized gain on available−for−sale
securities at December 28, 2003 was $39.1 million and includes an unrealized gain of $4.1 million on the Company’s investment in
UMC and $31.4 million on the Company’s investment in Tower and deferred tax expense of $3.2 million, and a $0.4 million
unrealized gain on short−term investments. Gross realized gains and losses on sales of available−for−sale securities during the years
ended January 2, 2005, December 28, 2003 and December 29, 2002 were immaterial. The cost (including amortized cost of debt
instruments) of the Company’s available for sale securities was $1.32 billion and $1.26 billion on January 2, 2005 and December 28,
2003, respectively.
Debt securities at January 2, 2005 and December 28, 2003, by contractual maturity, are shown below (in thousands). Actual
maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations.
January 2, December 28,
2005 2003
Short−term investments:
Due in one year or less $ 554,440 $ 371,276
Due after one year through five years 304,735 156,841
Total(b) $ 859,175 $ 528,117
(b) Excludes Investment in Foundries, short−term.
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in thousands):
Additions
Balance at Charged to Balance at
Beginning Costs and Deductions End of
of Period Expenses (Write−Offs) Period
For the year ended:
December 29, 2002 $ 4,919 $ 1,795 $ (2,151) $ 4,563
December 28, 2003 $ 4,563 $ 1,400 $ (1,081) $ 4,882
January 2, 2005 $ 4,882 $ 4,581 $ (1,001) $ 8,462
Inventories. Inventories were as follows (in thousands): January 2, December 28,
2005 2003
Raw material $ 53,681 $ 12,265
Work−in−process 23,508 40,246
Finished goods 119,233 64,385
Total inventories $ 196,422 $ 116,896
In 2004, 2003 and 2002, the Company sold $10.2 million, $16.3 million and $11.9 million, respectively, of inventory that had been
fully written off in previous periods. F−13