SanDisk 2009 Annual Report Download - page 133

This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Non-current liabilities. Non-current liabilities were as follows (in thousands):
January 3,
2010
December 28,
2008
Deferred tax liability ................................................... $ 35,470 $ 87,688
Income taxes payable ................................................... 206,464 145,432
Accrued restructuring .................................................. 9,228 11,070
Other non-current liabilities ............................................. 36,316 30,126
Total non-current liabilities .......................................... $287,478 $274,316
Warranties. The liability for warranty expense is included in Other current accrued liabilities and
Non-current liabilities in the accompanying Consolidated Balance Sheets and the activity was as follows (in
thousands):
January 3,
2010
December 28,
2008
December 30,
2007
Balance, beginning of period ................................. $36,469 $ 18,662 $ 15,338
Additions and adjustments to cost of product revenues ......... 23,129 74,282 48,424
Usage ............................................... (33,689) (56,475) (45,100)
Balance, end of period ...................................... $25,909 $ 36,469 $ 18,662
The majority of the Company’s products have a warranty ranging up to ten years. A provision for the
estimated future cost related to warranty expense is recorded at the time of customer invoice. The Company’s
warranty liability is affected by customer and consumer returns, product failures, number of units sold, and repair
or replacement costs incurred. Should actual product failure rates, or repair or replacement costs differ from the
Company’s estimates, increases or decreases to its warranty liability would be required. Warranty usage for fiscal
years 2008 and 2007 has been reclassified to current year presentation to reflect gross additions and usage for
certain warranty activity.
Accumulated Other Comprehensive Income. Accumulated other comprehensive income presented in the
accompanying Consolidated Balance Sheets consists of foreign currency translation, hedging activities, and
unrealized gains and losses on available-for-sale investments, net of taxes, for all periods presented (in
thousands):
January 3,
2010
December 28,
2008
Accumulated net unrealized gain (loss) on:
Available-for-sale investments ....................................... $ 26,920 $ (18,408)
Foreign currency translation ........................................ 98,424 101,186
Hedging activities ................................................. 3,369 106,199
Total accumulated other comprehensive income ............................. $128,713 $188,977
The amount of income tax expense allocated to unrealized gain (loss) on available-for-sale investments and
hedging activities was $6.8 million and $4.2 million at January 3, 2010 and December 28, 2008, respectively.
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