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Notes to Consolidated Financial Statements
Off-Balance Sheet Liabilities
The following table details the Company’s portion of the remaining guarantee obligations under each of
Flash Ventures’ master lease facilities in both Japanese yen and the U.S. dollar equivalent based upon the
exchange rate at December 28, 2008.
Master Lease Agreements by Execution Date Lease Amounts Expiration
(Yen in billions) (Dollars in thousands)
Flash Partners
December 2004 .................................... ¥ 12.1 $ 133,810 2010
December 2005 .................................... 9.7 106,931 2011
June 2006 ........................................ 10.1 111,726 2011
September 2006 .................................... 33.4 369,670 2011
March 2007 ....................................... 23.0 254,447 2012
February 2008 ..................................... 10.5 116,679 2013
¥ 98.8 $1,093,263
Flash Alliance
November 2007 .................................... ¥ 43.7 $ 483,274 2013
June 2008 ........................................ 46.9 518,440 2013
¥ 90.6 $1,001,714
Total guarantee obligations ....................... ¥ 189.4 $2,094,977
The following table details the breakdown of the Company’s remaining guarantee obligations between the
principal amortization and the purchase option exercise price at the term of the master lease agreements, in
annual installments as of December 28, 2008 in U.S. dollars based upon the exchange rate at December 28, 2008.
Annual Installments
Payment of
Principal
Amortization
Purchase Option
Exercise Price at
Final Lease
Terms
Guarantee
Amount
(In thousands)
Year 1 .................................................. $ 498,399 $ — $ 498,399
Year 2 .................................................. 437,210 66,521 503,731
Year 3 .................................................. 322,052 220,850 542,902
Year 4 .................................................. 169,712 144,341 314,053
Year 5 .................................................. 47,305 188,587 235,892
Total guarantee obligations ............................. $1,474,678 $ 620,299 $2,094,977
FlashVision. FlashVision had an equipment lease arrangement of approximately 15.0 billion Japanese yen,
or approximately $143 million based upon the exchange rate at May 30, 2008, of which 6.2 billion Japanese yen,
or approximately $59 million based upon the exchange rate at May 30, 2008, was retired by Toshiba on May 30,
2008 thereby releasing the Company of its indemnification agreement with Toshiba.
Flash Partners. Flash Partners sells and leases back from a consortium of financial institutions (“lessors”) a
portion of its tools and has entered into six equipment master lease agreements totaling 300.0 billion Japanese
yen, or approximately $3.32 billion based upon the exchange rate at December 28, 2008, of which 197.7 billion
Japanese yen, or approximately $2.19 billion based upon the exchange rate at December 28, 2008, was
outstanding at December 28, 2008. The Company and Toshiba have each guaranteed 50%, on a several basis, of
Flash Partners’ obligations under the master lease agreements. In addition, these master lease agreements are
F-40