SanDisk 2011 Annual Report Download - page 159

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This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Share-based compensation expense of $1.4 million and $0.9 million related to manufacturing personnel was
capitalized into inventory as of January 1, 2012 and January 2, 2011, respectively.
The total grant date fair value of options and RSUs vested was as follows (in thousands):
Fiscal years ended
January 1,
2012
January 2,
2011
January 3,
2010
Fair value of options vested .......................................... $ 33,868 $ 40,509 $ 59,207
Fair value of RSUs vested ........................................... 11,747 15,868 14,755
Total fair value of options and RSUs vested ......................... $ 45,615 $ 56,377 $ 73,962
Modification of Stock Awards and Other Adjustments. In fiscal year 2010, the Company recognized
$17.3 million of expense related to the modification of stock awards, pursuant to the retirement agreement with
the Company’s former Chief Executive Officer.
In fiscal year 2009, the Company identified that its third-party equity software contained a feature that
resulted in incorrect share-based compensation expense. This software feature affected the Company’s share-
based compensation expense reported for the nine months ended September 27, 2009 and the three fiscal years
ended December 28, 2008. The Company determined that the impact of the underreported share-based
compensation expense was not material to any of the previously issued financial statements. Accordingly, fiscal
year 2009 included a cumulative non-cash adjustment of $16.2 million to increase share-based compensation,
allocated to multiple expense categories. The Company has modified its implementation of the software to
prevent this error going forward.
Note 10: Income Taxes
The provision for income taxes consists of the following (in thousands):
Fiscal years ended
January 1,
2012
January 2,
2011
January 3,
2010
Current:
Federal ...................................................... $ 447,126 $ 268,571 $ 15,531
State ........................................................ 12,708 20,557 7,354
Foreign ...................................................... 104,760 40,490 78,490
564,594 329,618 101,375
Deferred:
Federal ...................................................... (60,934) (143,406) (11,271)
State ........................................................ (49) (23,931) 139
Foreign ...................................................... (13,847) (4,990) (1,752)
(74,830) (172,327) (12,884)
Provision for income taxes ........................................... $ 489,764 $ 157,291 $ 88,491
F-35