SanDisk 2007 Annual Report Download - page 111
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Other Current Assets. Other current assets were as follows (in thousands):
December 30,
2007
December 31,
2006
Royalty and other receivables ................................ $ 103,802 $ 97,130
Prepaid expenses ......................................... 21,874 22,276
Other current assets ....................................... 108,276 6,531
Total other current assets ................................. $ 233,952 $ 125,937
Property and Equipment. Property and equipment consisted of the following (in thousands):
December 30,
2007
December 31,
2006
Machinery and equipment .................................. $ 649,075 $ 483,134
Software ............................................... 68,664 54,411
Building ............................................... 32,972 24,148
Capital land lease......................................... 7,272 3,197
Furniture and fixtures ...................................... 6,382 5,604
Leasehold improvements ................................... 33,419 13,957
Property and equipment, at cost .............................. 797,784 584,451
Accumulated depreciation and amortization ..................... (374,889) (266,486)
Property and equipment, net ............................... $ 422,895 $ 317,965
Depreciation expense of property, plant and equipment totaled $146.8 million, $102.5 million and
$63.1 million in fiscal years 2007, 2006 and 2005, respectively.
Notes Receivable and Investments in the Flash Ventures with Toshiba. Notes receivable and investments in
the flash ventures with Toshiba were as follows (in thousands):
December 30,
2007
December 31,
2006
Notes receivable, FlashVision Ltd. ............................ $ — $ 38,229
Notes receivable, Flash Partners Ltd. .......................... 639,834 92,421
Investment in FlashVision Ltd. .............................. 159,146 159,144
Investment in Flash Partners Ltd. ............................. 177,529 168,210
Investment in Flash Alliance Ltd. ............................ 132,396 4,303
Total notes receivable and investments in the flash ventures with
Toshiba ............................................ $1,108,905 $ 462,307
In the fourth quarter of fiscal year 2007, the Company recorded a $10.0 million impairment charge related to its
equity investment in FlashVision. The Company is currently in negotiations with Toshiba regarding the future of the
FlashVision venture which may include Toshiba purchasing the Company’s shares, sale and distribution of the
venture’s equipment and underlying assets or a combination thereof. The impairment charge is based upon the
expected outcome of these negotiations and related cash flows. There can be no assurance of a positive outcome to
these negotiations which could lead to additional impairment charges.
F-15
Notes to Consolidated Financial Statements — (Continued)