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Note 13. Commitments and Contingencies
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Mar. 31, 2013
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| Commitments and Contingencies Disclosure [Text Block] |
13.
Commitments and Contingencies
Purchase
Commitments
The
Company had $199.7 million of purchase commitments with
certain suppliers, primarily for inventory items as of March
31, 2013.
Guarantees
In
the normal course of business, the Company is a party to a
variety of agreements pursuant to which it may be obligated
to indemnify the other party. It is not possible to predict
the maximum potential amount of future payments under these
types of agreements due to the conditional nature of our
obligations and the unique facts and circumstances involved
in each particular agreement. Historically, payments under
these types of agreements have not had a material adverse
effect on business, results of operations or financial
condition.
Income
Taxes
The
Company is subject to audit by the Internal Revenue Service
(IRS) and various other tax authorities. The Company has
reserved for potential adjustments to the provision for
income taxes that may result from examinations by, or any
negotiated agreements with, these tax authorities, and the
Company believes that the final outcome of these examinations
or agreements will not have a material effect on the
Company’s results of operations. If events occur which
indicate payment of these amounts is unnecessary, the
reversal of the liabilities would result in the recognition
of tax benefits in the period the Company determines the
liabilities are no longer necessary. If the estimates of the
federal, state, and foreign income tax liabilities are less
than the ultimate assessment, a further charge to expense
would result.
Product
Warranties
The
Company generally offers a one-year limited warranty for its
Flash memory products. Changes in the Company’s
liability for product warranty were as follows:
Legal
Matters
The
Company is a defendant or plaintiff in various legal actions
that arose in the normal course of business. In the opinion
of management, the aggregate liability, if any, with respect
to these matters will not have a material adverse effect on
the Company’s financial condition, results of
operations or cash flows.
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