SanDisk 2008 Annual Report Download - page 78

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Notes To Consolidated Financial Statements
Amortization of bond discount, as described above, net of tax for the fiscal years ended December 28, 2008,
December 30, 2007 and December 31, 2006, respectively, is estimated as follows (in thousands, except for per
share amounts):
Fiscal Years Ended
December 28,
2008
December 30,
2007
December 31,
2006
Net income (loss), as reported ................................ $(2,056,776) $ 218,357 $ 198,896
Amortization of bond discount ............................... (50,514) (46,985) (28,131)
Tax effect of amortization of bond discount ..................... 18,732 17,819 10,362
Valuation allowance reversal ................................ 98,615 — —
Pro forma net income (loss) ................................. $(1,989,943) $ 189,191 $ 181,127
Basic net income (loss) per share
As reported .......................................... $ (9.13) $ 0.96 $ 1.00
Pro forma ............................................ $ (8.83) $ 0.83 $ 0.91
Diluted net income (loss) per share
As reported .......................................... $ (9.13) $ 0.93 $ 0.96
Pro forma ............................................ $ (8.83) $ 0.80 $ 0.87
Upon adoption of FSP APB 14-1, the Company will record certain deferred tax liabilities which can be
offset against deferred tax assets and result in the reversal of a portion of the valuation allowance.
The amortization of bond discount required under FSP APB 14-1 is a non-cash expense and has no impact
on the total operating, investing and financing cash flows in the prior period or future Consolidated Statements of
Cash Flows. May 2006 was the date of first issuance of convertible debt by the Company that is subject to the
provisions of FSP APB 14-1.
F-13