SanDisk 2006 Annual Report Download - page 122

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recognized the expense of share-based compensation in the condensed consolidated statement of income, additional
paid-in capital would have increased by a corresponding amount, net of applicable taxes.
January 1,
2006
January 2,
2005
(In thousands, except per
share amounts)
Net income, as reported ........................................ $386,384 $266,616
Fair value method expense, net of related tax ...................... (52,629) (39,550)
Pro forma net income ......................................... $333,755 $227,066
Earnings per share as reported:
Basic.................................................... $ 2.11 $ 1.63
Diluted .................................................. $ 2.00 $ 1.44
Pro forma earnings per share:
Basic.................................................... $ 1.82 $ 1.38
Diluted .................................................. $ 1.73 $ 1.23
Note 6: Concentrations of Risk and Segment Information
Geographic Information and Major Customers. The Company markets and sells flash-based memory
products in the United States and in foreign countries through its sales personnel, dealers, distributors, retailers
and its subsidiaries. The Company’s Chief Operating Decision Maker, the Chief Executive Officer, evaluates
performance of the Company and makes decisions regarding allocation of resources based on total Company
results. Since the Company operates in one segment, all financial segment information can be found in the
accompanying consolidated financial statements.
Other than sales in North America, Japan and Europe, Middle East and Africa, or EMEA, international sales
were not material individually in any other international locality. Intercompany sales between geographic areas
have been eliminated.
Information regarding geographic areas for fiscal years 2006, 2005 and 2004 are as follows (in thousands):
December 31,
2006
January 1,
2006
January 2,
2005
Years Ended
Revenues:
NorthAmerica .............................. $1,311,726 $1,058,234 $ 771,659
Japan ..................................... 231,835 138,507 191,686
EMEA .................................... 728,355 500,998 420,645
Other foreign countries ........................ 985,609 608,330 393,065
Total........................................ $3,257,525 $2,306,069 $1,777,055
Long Lived Assets:
NorthAmerica .............................. $ 182,749 $ 126,346 $ 86,024
Japan ..................................... 397,011 286,859 263,248
Israel ..................................... 50,355 8,868 14,737
Other foreign countries ........................ 29,704 608 472
Total........................................ $ 659,819 $ 422,681 $ 364,481
Revenues are attributed to countries based on the geographic location of the customers. Long-lived assets are
attributed to the geographic location in which they are located. The Company includes in long-lived assets, property
Annual Report
F-23
Notes to Consolidated Financial Statements — (Continued)