SanDisk 2007 Annual Report Download - page 109

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application would not be permitted. The guidance in the proposed FSP would be applied retrospectively to all
periods presented. While the proposed FSP has not yet been finalized by the FASB, the Company’s initial estimate
based upon the current interpretations by the FASB, is that the Company would be required to report an additional
before tax, non-cash interest expense of approximately $400 million over the life of the 1% Senior Convertible
Notes due 2013, including approximately $50 million to $55 million in fiscal year 2008. However, these amounts
are subject to material change based upon finalization of the proposed FSP.
Note 3: Balance Sheet Information
Available-for-Sale Investments. Available-for-sale investments for the fiscal years ended December 30, 2007
and December 31, 2006 were as follows (in thousands):
Book Value
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Market
Value Book Value
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Market
Value
December 30, 2007 December 31, 2006
U.S. Treasury and agency securities . . $ 142,667 $ 269 $ $ 142,936 $ 846,560 $ 257 $ (962) $ 845,855
U.S. Corporate notes and bonds. .... 340,458 11 340,469 975,597 (423) 975,174
Municipal notes and bonds . . . .... 2,094,585 12,203 (109) 2,106,679 1,207,611 224 (200) 1,207,635
Equity investments . . . ......... 89,678 6,266 (10,965) 84,979 90,350 14,528 (4,938) 99,940
Total available-for-sale investments . . $2,667,388 $ 18,749 $ (11,074) $2,675,063 $3,120,118 $ 15,009 $ (6,523) $3,128,604
A summary of the carrying values and balance sheet classification for the fiscal years ended December 30,
2007 and December 31, 2006 were as follows (in thousands):
December 30,
2007
December 31,
2006
Cash on hand ............................................ $ 220,720 $ 160,773
Cash equivalents ......................................... 613,029 1,419,927
Short-term investments ..................................... 1,001,641 1,251,493
Long-term investment...................................... 1,060,393 457,184
Total .................................................. $2,895,783 $3,289,377
The following table summarizes at December 30, 2007, those securities that have been in an unrealized loss
position, the fair value and gross unrealized losses on the available-for-sale investments aggregated by type of
investment instrument, and the length of time that individual securities have been in a continuous unrealized loss
position. All unrealized losses on available-for-sale securities have been in a continuous unrealized loss position for
less than 12 months. Available-for-sale securities that were in an unrealized gain position have been excluded from
the table (in thousands):
Market Value
Gross
Unrealized
Losses
Less than 12 Months
U.S. Treasury and agency securities ........................... $ 39,859 $
Municipal notes and bonds .................................. 66,034 (109)
Equity investments ........................................ 60,436 (10,965)
Total .................................................. $ 166,329 $ (11,074)
The gross unrealized losses related to fixed income securities were primarily due to changes in interest rates.
The gross unrealized loss related to publicly traded equity securities were due to changes in market prices. Gross
unrealized losses on all available-for-sale securities at December 30, 2007 are considered temporary in nature.
Factors considered in determining whether a loss is temporary include the length of time and extent to which fair
F-13
Notes to Consolidated Financial Statements — (Continued)