SanDisk 2005 Annual Report Download - page 138

at a purchase price equal to 85% of the lower of the fair market value per share on the start date of the offering period
or the fair market value per share on the purchase date. As of the end of the fiscal year ended January 1, 2006,
4,034,858 shares had been issued under the 1995 plan, and no shares had been issued under the 2005 plan.
Retirement Plan. The Company maintains a tax-deferred savings plan, the SanDisk 401(k) Plan, for the
benefit of qualified employees. Qualified employees may elect to make contributions to the plan on a monthly basis.
The Company may make annual contributions to the plan at the discretion of the Company’s Board of Directors.
The Company contributed $1.8 million, $1.6 million and $1.2 million for the years ended January 1, 2006,
January 2, 2005 and December 28, 2003, respectively.
Deferred Compensation. In 2005, the Company recorded deferred compensation related to the issuance of
restricted stock units. In 2004, the Company recorded deferred compensation as a part of its purchase price
allocation relating to an immaterial business acquisition.
Note 4: Concentrations of Risk and Segment Information
Geographic Information and Major Customers. The Company markets and sells its products in the United
States and in foreign countries through its sales personnel, dealers, distributors, retailers and its subsidiaries. The
Company’s chief decision maker, the Chief Executive Officer, evaluates performance of the Company and makes
decisions regarding allocation of resources based on total Company results. Since the Company operates in one
segment, all financial segment information can be found in the accompanying consolidated financial statements.
Other than sales in North America, Japan and Europe, Middle East and Africa (EMEA), international sales
were not material individually in any other international locality. Intercompany sales between geographic areas
have been eliminated.
Information regarding geographic areas for fiscal years 2005, 2004 and 2003 are as follows (in thousands):
January 1,
2006
January 2,
2005
December 28,
2003
Years Ended
Revenues:
North America . . . ........................... $1,058,234 $ 771,659 $ 417,869
Japan ..................................... 138,507 191,686 184,195
EMEA .................................... 500,998 420,645 232,080
Other foreign countries ........................ 608,330 393,065 245,657
Total ........................................ $2,306,069 $1,777,055 $1,079,801
Long Lived Assets:
North America . . . ........................... $ 126,346 $ 86,024 $ 58,569
Japan ..................................... 286,859 263,248 169,330
Israel ..................................... 8,868 14,737 40,877
Other foreign countries ........................ 608 472 325
Total ........................................ $ 422,681 $ 364,481 $ 269,101
Revenues are attributed to countries based on the geographic location of the customers. Long-lived assets are
attributed to the geographic location in which they are located. The Company includes in long-lived assets, property
plant and equipment, investment in foundry, and equity investments and attributes those investments to the locality
of the investee’s primary operations.
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a
substantial portion of the Company’s revenues. Revenues from the Company’s top 10 customers or licensees
accounted for approximately 50%, 55% and 48% of the Company’s revenues for the years ended January 1, 2006,
F-19
Notes to Consolidated Financial Statements — (Continued)
Annual Report