SanDisk 2010 Annual Report Download - page 213

This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
•Sold Warrants. The Company received $188.1 million from the same counterparties from the sale of
warrants to purchase up to approximately 19.1 million shares of the Company’s common stock at an
exercise price of $73.33 per share. As of January 2, 2011, the warrants (separated into 40 separate
components) had an average expected life of 6.9 years and expire over 40 different dates from
November 13, 2017 through January 10, 2018. At each expiration date, the Company may, at its option,
elect to settle the warrants on a net share basis. As of January 2, 2011, the warrants had not been
exercised and remained outstanding. The value of the warrants was initially recorded in equity and
continues to be classified as equity.
1% Convertible Notes Due 2035. On February 11, 2010, the Company notified the holders of its 1%
Convertible Notes due 2035 that it would exercise its option to redeem the $75.0 million principal amount
outstanding on March 15, 2010 for a redemption price of $1,000 per $1,000 principal amount of the notes, plus
accrued interest. On March 15, 2010, the Company completed the redemption of the 1% Convertible Notes due
2035 through an all-cash transaction of $75.0 million plus accrued interest of $0.4 million. As of the date of the
completion of the redemption, the Company had no further obligations related to the 1% Convertible Notes due
2035.
Note 7: Concentrations of Risk and Segment Information
Geographic Information and Major Customers. The Company markets and sells flash memory products in
the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers and subsidiaries. The
Company’s Chief Operating Decision Maker, the President and 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 the U.S., South Korea, Taiwan, Europe, Middle East and Africa (“EMEA”), and Other
Asia-Pacific, which includes Japan, international sales were not material individually in any other international
locality. Intercompany sales between geographic areas have been eliminated.
Revenue by geographic areas for fiscal years 2010, 2009 and 2008 are as follows (in thousands):
Fiscal Years Ended
January 2,
2011
January 3,
2010
December 28,
2008
Revenues:
United States ........................................ $ 809,037 $ 940,596 $ 1,047,045
South Korea ......................................... 334,173 428,411 476,304
Taiwan ............................................. 993,787 397,338 178,751
Other Asia-Pacific .................................... 1,822,853 1,010,125 825,645
Europe, Middle East and Africa ......................... 714,378 707,758 752,849
Other foreign countries ................................ 152,579 82,578 70,758
Total .......................................... $ 4,826,807 $ 3,566,806 $ 3,351,352
Product revenues from customers are based on the geographic location of where the product is delivered.
License and royalty revenue is attributed to countries based upon the headquarters of the licensee.
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