SanDisk 2012 Annual Report Download - page 185

This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands):
December 30,
2012
January 1,
2012
Accrued payroll and related expenses .............................................. $ 102,269 $ 132,182
Derivative contract payables ...................................................... 13,584 40,045
Taxes payable ................................................................. 25,476 61,144
Other accrued liabilities ......................................................... 116,210 104,146
Total other current accrued liabilities ........................................... $ 257,539 $ 337,517
Non-current liabilities. Non-current liabilities were as follows (in thousands):
December 30,
2012
January 1,
2012
Deferred tax liabilities .......................................................... $ 28,672 $ 44,262
Income tax liabilities ............................................................ 208,629 218,994
Deferred credits on intercompany transactions ....................................... 58,548 67,926
Other non-current liabilities ...................................................... 112,098 84,342
Total non-current liabilities .................................................. $ 407,947 $ 415,524
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):
Fiscal years ended
December 30,
2012
January 1,
2012
January 2,
2011
Balance, beginning of period ......................................... $ 26,957 $ 24,702 $ 25,909
Additions and adjustments to cost of product revenues ................. 33,247 29,444 30,732
Usage ....................................................... (21,417) (27,189) (31,939)
Balance, end of period .............................................. $ 38,787 $ 26,957 $ 24,702
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.
Accumulated Other Comprehensive Income. Accumulated other comprehensive income presented in the
accompanying Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale
investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in
thousands):
December 30,
2012
January 1,
2012
Accumulated net unrealized gain (loss) on:
Available-for-sale investments ................................................ $ 15,919 $ 10,849
Foreign currency translation .................................................. 155,389 300,788
Hedging activities .......................................................... (6,187) 21,064
Total accumulated other comprehensive income ...................................... $ 165,121 $ 332,701
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