SanDisk 2011 Annual Report Download - page 145

This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Non-Current Assets. Other non-current assets were as follows (in thousands):
January 1,
2012
January 2,
2011
Prepaid tax on intercompany transactions ........................................... $ 46,489 $ —
Prepayment to Flash Forward ..................................................... 29,396 —
Convertible note issuance costs ................................................... 12,992 18,091
Deposits ..................................................................... 6,375 6,648
Other non-current assets ......................................................... 27,363 37,205
Total other non-current assets ................................................. $ 122,615 $ 61,944
Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands):
January 1,
2012
January 2,
2011
Accrued payroll and related expenses .............................................. $ 132,182 $ 143,260
Derivative contract payables ...................................................... 40,045 33,606
Income taxes payable ........................................................... 61,144 9,751
Other accrued liabilities ......................................................... 104,146 98,092
Total other current accrued liabilities ........................................... $ 337,517 $ 284,709
Non-current liabilities. Non-current liabilities were as follows (in thousands):
January 1,
2012
January 2,
2011
Deferred tax liability ............................................................ $ 44,262 $ 37,210
Income tax liabilities ............................................................ 218,994 200,579
Deferred credits on intercompany transactions ....................................... 67,926 —
Other non-current liabilities ...................................................... 84,342 88,387
Total non-current liabilities .................................................. $ 415,524 $ 326,176
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 1,
2012
January 2,
2011
January 3,
2010
Balance, beginning of period ......................................... $ 24,702 $ 25,909 $ 36,469
Additions and adjustments to cost of product revenues ................. 29,444 30,732 23,129
Usage ....................................................... (27,189) (31,939) (33,689)
Balance, end of period .............................................. $ 26,957 $ 24,702 $ 25,909
The majority of the Company’s products have a warranty of less than three years, with a small number of
products having a warranty ranging up to ten years or more. For 100-year or lifetime warranties, the Company
uses the estimated useful life of the product to calculate the warranty exposure. 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.
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