SanDisk 2008 Annual Report Download - page 82

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Notes To Consolidated Financial Statements
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in
thousands):
December 28,
2008
December 30,
2007
December 31,
2006
Balance, beginning of period ................................. $13,790 $11,452 $ 8,050
Additions charged to costs and expenses .................... 8,778 3,519 6,142
Deductions (write-offs) .................................. (8,687) (1,181) (2,740)
Balance, end of period ....................................... $13,881 $13,790 $11,452
During the first quarter of fiscal year 2008, the Company recorded an additional provision for doubtful
accounts as well as a reversal of $12.0 million of product revenues associated with receivable balances related to
a customer having severe financial difficulties.
Inventory. Inventories, net of reserves, were as follows (in thousands):
December 28,
2008
December 30,
2007
Raw material ......................................................... $309,436 $197,077
Work-in-process ....................................................... 90,544 94,283
Finished goods ........................................................ 198,271 263,717
Total inventory .................................................... $598,251 $555,077
Other Current Assets. Other current assets were as follows (in thousands):
December 28,
2008
December 30,
2007
Royalty and other receivables ............................................ $ 81,451 $103,802
Prepaid expenses ...................................................... 20,321 15,109
Tax related receivables ................................................. 294,906 40,354
Other current assets .................................................... 73,283 74,687
Total other current assets ............................................ $469,961 $233,952
Property and Equipment. Property and equipment consisted of the following (in thousands):
December 28,
2008
December 30,
2007
Machinery and equipment ............................................... $659,881 $ 649,075
Software ............................................................. 113,190 68,664
Building ............................................................. 33,759 32,972
Capital land lease ...................................................... 7,885 7,272
Furniture and fixtures ................................................... 6,766 6,382
Leasehold improvements ................................................ 44,311 33,419
Property and equipment, at cost ........................................... 865,792 797,784
Accumulated depreciation and amortization ................................. (468,805) (374,889)
Property and equipment, net ......................................... $396,987 $ 422,895
Depreciation expense of property and equipment totaled $175.2 million, $146.8 million and $102.5 million
in fiscal years 2008, 2007 and 2006, respectively.
F-17