SanDisk 2014 Annual Report Download - page 124

Amortization of Acquisition-related Intangible Assets.
Percent Percent
FY 2014 Change FY 2013 Change FY 2012
(In millions, except percentages)
Amortization of acquisition-related intangible
assets ............................ $ 26.4 136% $ 11.2 24% $ 9.0
% of revenue ........................ —% —% —%
Amortization of acquisition-related intangible assets in fiscal year 2014, compared to fiscal year 2013,
was higher due to a full year of amortization of intangible assets from our acquisition of SMART Storage,
which was completed in the third quarter of fiscal year 2013, and from our Fusion-io acquisition which was
completed in the third quarter of fiscal year 2014.
Amortization of acquisition-related intangible assets in fiscal year 2013, compared to fiscal year 2012,
reflected higher amortization of intangible assets from our SMART Storage acquisition which was
completed in the third quarter of fiscal year 2013, partially offset by lower amortization of intangible assets
from our Pliant acquisition, which were impaired in fiscal year 2013.
Impairment and Write-off of Acquisition-related Intangible Assets.
Percent Percent
FY 2014 Change FY 2013 Change FY 2012
(In millions, except percentages)
Impairment and write-off of acquisition-related
intangible assets .................... $ — ** $ 83.2 ** $ 0.9
Percent of revenues .................... —% 1% —%
** Amount not meaningful
In fiscal year 2013, we impaired and wrote off $83 million of IPR&D and amortizable intangible assets
related to our Pliant acquisition.
Restructuring and Other.
Percent Percent
FY 2014 Change FY 2013 Change FY 2012
(In millions, except percentages)
Restructuring and other ................. $ 33.0 ** $ — ** $ —
Percent of revenues .................... —% —% —%
** Amount not meaningful
During fiscal year 2014, we implemented a restructuring plan, which primarily consisted of reductions
in workforce in certain functions of the organization worldwide because of redundant activities due to the
Fusion-io acquisition, as well as realignment of certain projects. The restructuring plan included severance
and benefits related to involuntary terminations of personnel in manufacturing operations, research and
development, sales and marketing, and general and administrative functions of the organization, primarily
in the U.S. and certain foreign countries. In addition, we recorded other expense related to the acquisition
of Fusion-io, which primarily consisted of legal, banker, accounting and tax fees, certain employee change
of control charges and employee retention bonus payments, and litigation and integration expenses. See
Note 11, ‘‘Restructuring and Other,’’ in the Notes to Consolidated Financial Statements of this Form 10-K
included in Item 8, ‘‘Financial Statement and Supplementary Data’’ of this report.
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