SanDisk 2008 Annual Report Download - page 98

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Notes To Consolidated Financial Statements
Fiscal 2007 Restructuring Plan
In the first quarter of fiscal year 2007, the Company initiated a restructuring plan to better align its
organizational workforce and close redundant facilities in order to reduce the Company’s cost structure. The
Company incurred a total cost of $6.7 million, of which $6.0 million was related to involuntary termination of
149 employees in all functions in the U.S. and Israel. Substantially all of the fiscal year 2007 restructuring plan
was paid out in cash during fiscal year 2007. The Company anticipates that the remaining accrued restructuring
balance of $0.7 million will be substantially paid out in cash through the first quarter of fiscal year 2010, in
connection with long-term facility leases. The remaining restructuring accrual balance is reflected in Other
Current Accrued Liabilities and Non-current Liabilities in the Consolidated Balance Sheets.
Note 11: Income Taxes
The provision for income taxes consists of the following (in thousands):
Fiscal Years Ended
December 28,
2008
December 30,
2007
December 31,
2006
Current:
Federal ............................................... $(245,361) $ 108,636 $ 174,320
State ................................................. 7,246 19,958 27,788
Foreign .............................................. 46,925 81,442 63,841
(191,190) 210,036 265,949
Deferred:
Federal ............................................... 323,365 (22,670) (22,623)
State ................................................. 46,762 (654) (9,585)
Foreign .............................................. (25,195) (11,864) (3,548)
344,932 (35,188) (35,756)
Provision for income taxes ................................... $153,742 $ 174,848 $ 230,193
Deferred federal income taxes includes taxes withheld on royalties and interest received of $79.4 million for
the fiscal year ended December 28, 2008. Current foreign income taxes includes taxes withheld on royalties
received of $66.5 million and $59.2 million for the fiscal years ended December 30, 2007 and December 31,
2006, respectively.
Income (loss) before provision for income taxes consisted of the following (in thousands):
Fiscal Years Ended
December 28,
2008
December 30,
2007
December 31,
2006
United States ............................................. $(1,858,680) $ 454,147 $ 193,845
International ............................................. (44,354) (55,731) 236,863
Total ............................................... $(1,903,034) $ 398,416 $ 430,708
F-33