SanDisk 2013 Annual Report Download - page 189

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The significant amounts reclassified out of each component of AOCI were as follows (in thousands):
Fiscal years ended
December 29, December 30, January 1,
AOCI Component 2013 2012 2012 Statement of Operations Line Item
Unrealized gain on Interest (expense) and other
available-for-sale investments . . . $ 2,375 $ 2,969 $ 34,549 income (expense), net
Tax impact ................. (1,122) (1,051) (2,119) Provision for income taxes
Unrealized gain on
available-for-sale investments, net
of tax ................... 1,253 1,918 32,430
Unrealized holding gains (losses)
on derivatives:
Foreign exchange contracts . . . (41,523) (10,946) 27,985 Cost of revenue
Interest (expense) and other
Equity market risk contract . . — — (9,885) income (expense), net
Tax impact ................. — — 2,504 Provision for income taxes
Gain (loss) on cash flow hedging
activities, net of tax .......... (41,523) (10,946) 20,604
Total reclassifications for the
period, net of tax ........ $ (40,270) $ (9,028) $ 53,034
Note 5: Goodwill and Intangible Assets
Goodwill. Goodwill balances and activity during fiscal year 2013 were as follows (in thousands):
Carrying
Amount
Balance as of December 30, 2012 .............................................. $ 201,735
Acquisition .......................................................... 115,775
Adjustment ......................................................... 601
Balance as of December 29, 2013 .............................................. $ 318,111
Goodwill increased by approximately $115.8 million due to the Company’s acquisition of SMART
Storage Systems (‘‘SMART Storage’’) during the third quarter of fiscal year 2013. See Note 15, ‘‘Business
Acquisition’’ regarding this acquisition. In addition, goodwill increased by $0.6 million during the first
quarter of fiscal year 2013 due to the resolution of a legal contingency matter during the measurement
period for an acquisition from fiscal year 2012.
Goodwill is not amortized, but is reviewed and tested for impairment at least annually, on the first day
of the Company’s fourth quarter and whenever events or circumstances occur that indicate that goodwill
might be impaired. Impairment of goodwill is tested at the Company’s reporting unit level. The Company
has the option to first assess qualitative factors to determine whether events and circumstances indicate
that it is more likely than not that the goodwill is impaired and determine whether further action is needed
(‘‘Step 0’’). For the year ended December 29, 2013, the Company performed a Step 0 qualitative
assessment of its goodwill and did not identify any events or circumstances that would indicate an
impairment of goodwill. As such, the Company did not perform any further goodwill impairment testing.
F-23
Annual Report