SanDisk 2005 Annual Report Download - page 133

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The following table summarizes the fair value and gross unrealized losses of our available-for-sale investments
aggregated by type of investment instrument and length of time that individual securities have been in a continuous
unrealized loss position, at January 1, 2006:
Market
Value
Gross
Unrealized
Losses
Market
Value
Gross
Unrealized
Losses
Market
Value
Gross
Unrealized
Losses
Less Than 12 Months 12 Months or Greater Total
(In thousands)
Money market funds . . .... $ 300,833 $ — $ — $ — $ 300,833 $ —
Commercial paper........ 284,455 — — — 284,455 —
U.S. government agency . . . 378,914 (1,449) 204,747 (2,242) 583,661 (3,691)
Municipal notes/bonds .... 107,628 (171) 19,146 (48) 126,774 ( 219)
Corporate notes/bonds. .... 18,754 (96) 39,957 (226) 58,711 ( 322)
Auction instruments . . .... 162,074 (1) 145,965 — 308,039 ( 1)
Total ................. $1,252,658 $(1,717) $409,815 $(2,516) $1,662,473 $(4,233)
The unrealized losses were primarily caused by interest rate increases.
Gross realized gains and losses on sales of available-for-sale securities during the years ended January 1, 2006,
January 2, 2005 and December 28, 2003 were immaterial.
Debt securities at January 1, 2006 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.
Cost
Estimated
Fair Value
Short-term investments:
Due in one year or less ...................................... $251,167 $250,975
Due after one year through five years ............................ 688,704 684,662
Total .................................................... $939,871 $935,637
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in
thousands):
Balance at
Beginning
of Period
Additions
Charged to
Costs and
Expenses
Deductions
(Write-Offs)
Balance at
End of
Period
For the year ended:
December 28, 2003 ..................... $4,563 1,400 (1,081) $4,882
January 2, 2005 ........................ $4,882 4,581 (1,001) $8,462
January 1, 2006 ........................ $8,462 376 (788) $8,050
Inventories. Inventories were as follows (in thousands):
January 1,
2006
January 2,
2005
Raw material................................................ $ 99,006 $ 53,681
Work-in-process ............................................. 61,900 23,508
Finished goods .............................................. 170,678 119,233
Total inventories ............................................. $331,584 $196,422
F-14
Notes to Consolidated Financial Statements — (Continued)