SanDisk 2013 Annual Report Download - page 136

There can be no assurance that we will continue to declare cash dividends. Our Board of Directors began
declaring a quarterly dividend payment on our common stock in the third quarter of fiscal year 2013. Our
continuation of declaring quarterly dividends is subject to capital availability and periodic determination by
our Board of Directors that cash dividends are in the best interest of our shareholders. Future dividends
may be affected by, among other factors, our views on potential future capital requirements, acquisition
transactions, stock repurchases, changes in tax laws, and changes in our business model. A reduction in our
dividend payments or discontinuance of dividend payments could have a negative effect on our stock price,
which could have a material adverse impact on investor confidence and employee retention.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters are located in Milpitas, California. As of December 29, 2013, we owned
five buildings in Milpitas comprising approximately 589,000 square feet. These buildings house our
corporate offices, including personnel from engineering, sales, marketing, operations and administration.
We own two testing and assembly buildings comprising approximately 715,000 square feet located on a
50-year land lease in Shanghai, China, of which 43 years remain. In addition, we own three buildings in
Israel that house administrative offices and research and development facilities. Two buildings comprising
approximately 167,000 square feet are located in Kfar Saba, Israel, and are on a 99-year land lease, of
which 79 years remain; and one building of approximately 64,000 square feet, located in Tefen, Israel, is on
a 50-year land lease, of which 44 years remain.
We also lease offices supporting our sales, operations, administration and design in the U.S., Brazil,
China, France, Germany, India, Ireland, Israel, Istanbul, Italy, Japan, Korea, Malaysia, Russia, Scotland,
Singapore, Spain, Sweden, Taiwan and the United Arab Emirates.
ITEM 3. LEGAL PROCEEDINGS
See Note 16, ‘‘Litigation,’’ in the Notes to Consolidated Financial Statements of this Form 10-K
included in Item 8, ‘‘Financial Statement and Supplementary Data’’ of this report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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