SanDisk 2008 Annual Report Download - page 128

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Notes To Consolidated Financial Statements
Note 20: Subsequent Events
On January 29, 2009, the Company entered into definitive agreements with Toshiba, under which the
Company and Toshiba agreed to restructure Flash Partners and Flash Alliance to provide for the acquisition by
Toshiba of certain production capacity in connection with the production of NAND flash memory products at the
facilities. The agreements specify the terms and conditions under which each flash venture has agreed to sell to
Toshiba more than 20% of its current production capacity through the acquisition by Toshiba of certain owned
and leased equipment. The total value of the restructuring transaction to the Company is approximately $890
million based upon the exchange rate as of January 29, 2009. Approximately one-third of this value will be in
cash paid to the Company and approximately two-thirds of this value represents a transfer of lease obligations to
Toshiba which should reduce the Company’s outstanding lease obligations and associated lease guarantees by
approximately 28%. These transactions are expected to occur at several closings between January 30, 2009 and
March 31, 2009, subject to certain closing conditions and contingencies.
F-63