SanDisk 2014 Annual Report Download - page 155

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Level 2 securities are primarily valued using quoted market prices for similar instruments and non-binding
market prices that are corroborated by observable market data. The Company uses inputs such as actual
trade data, benchmark yields, broker/dealer quotes and other similar data, which are obtained from
independent pricing vendors, quoted market prices or other sources to determine the ultimate fair value of
the Company’s assets and liabilities. The inputs and fair value are reviewed for reasonableness and may be
further validated by comparison to publicly available information or compared to multiple independent
valuation sources. In addition, the Company reviews third-party valuation models, independently
calculates the fair value of selective financial instruments and assesses the controls at its third-party
valuation service providers in determining the overall reasonableness of the fair value of its Level 2
financial instruments.
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of
the following types of instruments (in thousands):
December 28, 2014 December 29, 2013
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Money market funds . . $ 533,133 $ — $ — $ 533,133 $ 760,363 $ — $ — $ 760,363
Fixed income securities . 25,162 4,213,599 — 4,238,761 160,194 4,985,059 — 5,145,253
Derivative assets ..... — 4,800 — 4,800 — 777 — 777
Total financial
assets ........ $558,295 $ 4,218,399 $ — $ 4,776,694 $ 920,557 $ 4,985,836 $ — $ 5,906,393
Derivative liabilities . . . $ — $ 8,224 $ — $ 8,224 $ — $ 45,859 $ — $ 45,859
Total financial
liabilities ..... $ — $ 8,224 $ — $ 8,224 $ — $ 45,859 $ — $ 45,859
Financial assets and liabilities measured and recorded at fair value on a recurring basis were
presented on the Company’s Consolidated Balance Sheets as follows (in thousands):
December 28, 2014 December 29, 2013
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Cash equivalents(1) .... $533,133 $ 24,777 $ — $ 557,910 $ 773,435 $ 33,099 $ — $ 806,534
Short-term marketable
securities ......... 3,327 1,452,182 — 1,455,509 15,090 1,904,521 — 1,919,611
Long-term marketable
securities ......... 21,835 2,736,640 — 2,758,475 132,032 3,047,439 — 3,179,471
Other current assets . . . — 4,800 — 4,800 — 777 — 777
Total financial
assets ........ $558,295 $ 4,218,399 $ — $ 4,776,694 $ 920,557 $ 4,985,836 $ — $ 5,906,393
Other current accrued
liabilities ......... $ — $ 8,224 $ — $ 8,224 $ — $ 45,741 $ — $ 45,741
Non-current liabilities . . — — — — — 118 — 118
Total financial
liabilities ..... $ — $ 8,224 $ — $ 8,224 $ — $ 45,859 $ — $ 45,859
(1) Cash equivalents exclude cash holdings of $251.1 million and $179.7 million included in Cash and cash
equivalents on the Company’s Consolidated Balance Sheets as of December 28, 2014 and December 29, 2013,
respectively.
F-15
Annual Report