SanDisk 2013 Annual Report Download - page 214

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
payments under any such agreements. As of December 29, 2013, no amounts have been accrued in the
accompanying Consolidated Financial Statements with respect to these indemnification guarantees.
Contractual Obligations and Off-Balance Sheet Arrangements
The following tables summarize the Company’s contractual cash obligations, commitments and
off-balance sheet arrangements at December 29, 2013, and the effect such obligations are expected to have
on its liquidity and cash flows in future periods.
Contractual Obligations. Contractual cash obligations and commitments as of December 29, 2013 are as
follows (in thousands):
More than
2 - 3 Years 4 - 5 Years 5 Years
1 Year (Fiscal 2015 (Fiscal 2017 (Beyond
Total (Fiscal 2014) and 2016) and 2018) Fiscal 2018)
Facility and other operating leases . . . $ 17,230(5) $ 7,177 $ 8,067 $ 1,909 $ 77
Flash Partners(1) ............... 378,021(5)(6) 147,448 160,581 66,670 3,322
Flash Alliance(1) ............... 1,616,360(5)(6) 683,292 583,158 313,211 36,699
Flash Forward(1) ............... 894,567(5)(6) 391,188 321,920 157,504 23,955
Toshiba research and development . . . 54,042(5) 39,042 15,000 — —
Capital equipment purchase
commitments ................ 29,980 21,790 8,187 3 —
1.5% Convertible senior notes
principal and interest(2) ......... 1,060,000 15,000 30,000 1,015,000 —
0.5% Convertible senior notes
principal and interest(3) ......... 1,552,250 7,250 15,000 15,000 1,515,000
Operating expense commitments .... 32,659 30,340 2,319 — —
Noncancelable production purchase
commitments(4) ............... 233,976(5) 233,976 — — —
Total contractual cash obligations . $ 5,869,085 $ 1,576,503 $ 1,144,232 $ 1,569,297 $ 1,579,053
(1) Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding
commitments for loans and equity investments and reimbursement for other committed expenses. Funding
commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce
funding commitments.
(2) In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due 2017.
The Company will pay cash interest on the outstanding notes at an annual rate of 1.5%, payable semi-annually on
August 15 and February 15 of each year until August 15, 2017.
(3) In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Notes due
2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable
semi-annually on April 15 and October 15 of each year until October 15, 2020.
(4) Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments.
(5) Includes amounts denominated in a currency other than the U.S. dollar, which are subject to fluctuation in
exchange rates prior to payment and have been translated using the exchange rate at December 29, 2013.
(6) Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term.
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