SanDisk 2007 Annual Report Download - page 112

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Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands):
December 30,
2007
December 31,
2006
Accrued payroll and related expenses .......................... $ 94,220 $ 61,050
Income taxes payable ...................................... 56,945 110,009
Research and development liability, related party.................. 8,000 5,850
Other accrued liabilities .................................... 127,685 134,091
Total other current accrued liabilities......................... $286,850 $311,000
Non-current liabilities. Non-current liabilities were as follows (in thousands):
December 30,
2007
December 31,
2006
Deferred tax liability ...................................... $ 14,479 $ 27,257
Income taxes payable ...................................... 79,608 —
Accrued restructuring ...................................... 11,891 13,799
Other non-current liabilities ................................. 29,274 31,170
Total non-current liabilities ................................ $135,252 $ 72,226
Warranties. Liability for warranty expense is included in other accrued liabilities in the accompanying
consolidated balance sheets and the activity was as follows (in thousands):
December 30,
2007
December 31,
2006
January 1,
2006
Balance, beginning of period ..................... $ 15,338 $ 11,257 $ 11,380
Additions and adjustments to cost of product revenues . . 8,303 6,606 6,033
Usage ...................................... (4,979) (2,525) (6,156)
Balance, end of period ......................... $ 18,662 $ 15,338 $ 11,257
The majority of the Company’s products have a warranty ranging from one to five years. A provision for the
estimated future cost related to warranty expense is recorded at the time of customer invoice. The Company’s
warranty liability is affected by customer and consumer returns, product failures and repair or replacement costs
incurred. Should actual product failure rates, or repair or replacement costs differ from the Company’s estimates,
increases or decreases to its warranty liability would be required.
Accumulated Other Comprehensive Income. Accumulated other comprehensive income presented in the
accompanying consolidated balance sheets consists of the foreign currency translation and unrealized gains and
losses on available-for-sale investments, net of taxes, for all periods presented (in thousands):
December 30,
2007
December 31,
2006
Accumulated net unrealized gain (loss) on:
Available-for-sale investments .............................. $ 8,657 $ (2,528)
Foreign currency translation ............................... 23,818 8,021
Total accumulated other comprehensive income .................. $ 32,475 $ 5,493
The amount of income tax expense allocated to unrealized gain (loss) on available-for-sale investments was
immaterial at December 30, 2007 and December 31, 2006, respectively.
F-16
Notes to Consolidated Financial Statements — (Continued)