SanDisk 2009 Annual Report Download - page 130

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Notes To Consolidated Financial Statements
Foreign Exchange and Equity Market Risk Contracts Designated as Cash Flow Hedges. The effective
portion of designated cash flow derivative contracts on the results of operations was as follows (in thousands):
Accumulated OCI Balance at
Amount of gain (loss) reclassified from
OCI to the Statements of
Operations during the year ended
January 3, 2010
December 28,
2008
January 3,
2010
December 28,
2008
Foreign exchange contracts ................ $ (10,837) $ 60,511 $ 60,730 $ (13,701)
Equity market risk contract ................ (31,262) 27,572 — —
Foreign exchange contracts designated as cash flow hedges relate primarily to wafer purchases and the
associated gains and losses are expected to be recorded in cost of product revenues when reclassified out of
accumulated OCI. Gains and losses from the equity market risk contract are expected to be recorded in other
income (expense) when reclassified out of accumulated OCI. The Company expects to realize the accumulated
OCI balance related to foreign exchange contracts within the next twelve months and realize the accumulated
OCI balance related to the equity market risk contract in fiscal year 2011.
The impact of the ineffective portion and amount excluded from effectiveness testing on designated cash
flow derivative contracts on the Company’s results of operations recognized in other income (expense) were as
follows (in thousands):
January 3,
2010
December 28,
2008
December 30,
2007
Foreign exchange contracts ................................ $ (1,047) $ (9,696) $ —
Equity market risk contract ................................. — — —
Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations. The effect
of non-designated derivative contracts on the Company’s results of operations recognized in other income
(expense) were as follows (in thousands):
January 3,
2010
December 28,
2008
December 30,
2007
Gain (loss) on foreign exchange contracts including forward point
income ............................................... $ 92,291 $(137,927) $ —
Gain (loss) from revaluation of foreign currency exposures by
foreign exchange contracts ............................... (88,342) 180,466 —
Note 5: Balance Sheet Information
Accounts Receivable from Product Revenues, net. Accounts receivable from product revenues, net, were as
follows (in thousands):
January 3,
2010
December 28,
2008
Trade accounts receivable ............................................... $534,549 $ 584,262
Allowance for doubtful accounts ......................................... (12,348) (13,881)
Price protection, promotions and other activities ............................. (287,794) (448,289)
Total accounts receivable from product revenues, net ..................... $234,407 $ 122,092
F-18