SanDisk 2014 Annual Report Download - page 163

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Non-current Liabilities. Non-current liabilities were as follows (in thousands):
December 28, December 29,
2014 2013
Income tax liabilities ............................................ $ 132,320 $ 205,266
Deferred revenue .............................................. 31,066 35,346
Deferred tax liabilities ........................................... 22,360 3,482
Other non-current liabilities ....................................... 59,808 62,989
Total non-current liabilities ..................................... $ 245,554 $ 307,083
Warranties. The liability for warranty expense is included in Other current accrued liabilities and
Non-current liabilities in the Consolidated Balance Sheets, and the activity was as follows (in thousands):
Fiscal years ended
December 28, December 29, December 30,
2014 2013 2012
Balance, beginning of year .............................. $ 43,624 $ 38,787 $ 26,957
Additions and adjustments to cost of revenue .............. 21,315 33,400 33,247
Warranty liability assumed from acquisition ............... 3,794 2,363 —
Usage ........................................ (20,178) (30,926) (21,417)
Balance, end of year .................................. $ 48,555 $ 43,624 $ 38,787
The majority of the Company’s products have a warranty of five years or less, with a small number of
products having a warranty ranging up to ten years or more. For warranties ten years or greater, including
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. Additions and adjustments to cost of revenue in the fiscal year ended
December 28, 2014 included adjustments to certain warranty assumptions, related to future potential
claims, resulting in a $5.7 million reduction to the overall future warranty exposure.
Accumulated Other Comprehensive Income (Loss). AOCI presented in the 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 28, December 29,
2014 2013
Accumulated net unrealized gain (loss) on:
Available-for-sale investments .................................... $ 3,359 $ 10,479
Foreign currency translation ..................................... (197,252) (47,440)
Hedging activities ............................................. (14,179) (39,498)
Total accumulated other comprehensive loss ......................... $ (208,072) $ (76,459)
F-23
Annual Report