SanDisk 2009 Annual Report Download - page 131

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This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in
thousands):
January 3,
2010
December 28,
2008
December 30,
2007
Balance, beginning of period ................................. $ 13,881 $ 13,790 $ 11,452
Additions (reductions) charged to costs and expenses .......... (719) 8,778 3,519
Deductions (write-offs) .................................. (814) (8,687) (1,181)
Balance, end of period ....................................... $ 12,348 $ 13,881 $ 13,790
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. Inventory was as follows (in thousands):
January 3,
2010
December 28,
2008
Raw material ......................................................... $329,966 $ 309,436
Work-in-process ...................................................... 63,767 90,544
Finished goods ........................................................ 202,760 198,271
Total inventory ................................................... $596,493 $ 598,251
Other Current Assets. Other current assets were as follows (in thousands):
January 3,
2010
December 28,
2008
Royalty and other receivables ............................................ $ 53,864 $ 81,451
Prepaid expenses ...................................................... 14,309 20,321
Tax related receivables ................................................. 25,758 294,906
Other current assets .................................................... 3,708 73,283
Total other current assets ........................................... $ 97,639 $ 469,961
Property and Equipment. Property and equipment consisted of the following (in thousands):
January 3,
2010
December 28,
2008
Machinery and equipment ............................................... $656,046 $ 659,881
Software ............................................................ 136,558 113,190
Buildings and building improvements ..................................... 57,327 52,939
Capital land lease ..................................................... 6,593 7,885
Furniture and fixtures .................................................. 7,223 6,766
Leasehold improvements ................................................ 23,998 25,131
Property and equipment, at cost .......................................... 887,745 865,792
Accumulated depreciation and amortization ................................. (586,748) (468,805)
Property and equipment, net ......................................... $300,997 $ 396,987
Depreciation and amortization expense of property and equipment totaled $152.6 million, $175.2 million
and $146.8 million in fiscal years 2009, 2008 and 2007, respectively.
F-19