SanDisk 2003 Annual Report Download - page 96

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
December 29, 2002, the Company had accrued current liabilities due to Toshiba for joint research and
development expenses of $11.8 million and $10.5 million, respectively.
In July 2000, the Company entered into a share purchase agreement to make a $75.0 million investment
in Tower, in Israel, at that time, representing approximately 10% ownership of Tower. (See Note 8.)
SanDisk's CEO, Dr. Eli Harari, is a member of the Tower board of directors. During 2003, 2002 and 2001, the
Company invested $11.0 million, $26.0 million and $42.5 million, respectively in Tower, which included the
Company's participation in Tower's October 2002 right's oÅering. Additionally, the Company commenced the
purchase of controller wafers from Tower in 2003 and paid Tower approximately $5.3 million for the purchase
of controller wafers. At December 28, 2003 the Company had amounts payable to Tower of approximately
$5.4 million related to the purchase of controller wafers. No additional payments were made to Tower in 2002,
no goods were purchased in 2002 and there were no liabilities due to Tower at December 29, 2002.
In September 2003, the Company announced the appointment of the president and chief executive oÇcer
of Flextronics International Ltd. to its board of directors. Subsequent to this appointment in 2003, the
Company paid Flextronics and its aÇliates approximately $8.1 million for wafer testing, packaged memory
Ñnal testing, card assembly and card testing. At December 28, 2003 the Company had amounts payable to
Flextronics and its aÇliates of approximately $1.5 million related to wafer testing, packaged memory Ñnal
testing, card assembly and card testing
Note 14: Investment in Joint Venture
The following summarized the Ñnancial information for FlashVision at December 28, 2003 and
December 29, 2002, respectively (in thousands).
December 28, December 29,
2003 2002
(Unaudited) (Unaudited)
Current Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $128,774 $192,190
Property, plant and equipment and other assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $374,438 $171,791
Total AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $503,212 $363,981
Current Liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $148,200 $ 45,906
The following summarizes Ñnancial information for FlashVision for the years ended December 28, 2003,
December 29, 2002 and December 30, 2001, respectively (in thousands).
Twelve Months Ended
December 28, December 29, December 30,
2003 2002 2001
(Unaudited)
Net sales(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $272,507 $73,571 $110,706
Gross proÑt (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,572 (369) 4,351
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 296 $ 2,587 $ 5,160
(1) Net sales represent sales to both the Company and Toshiba.
Note 15: Subsequent event (unaudited)
On January 21, 2004 the Company announced that its Board of Directors had approved a two-for-one
stock split of its common stock to be eÅected in the form of a stock dividend. The stock split will entitle each
stockholder of record at the close of business on February 3, 2004, record date, to receive one additional share
for every share of SanDisk common stock held on that date. Shares resulting from the split were distributed by
the transfer agent on February 18, 2004, payment date. Shares, share price, per share amounts, common stock
at par value and capital in excess of par value have been restated to reÖect the eÅect of these stock splits for all
periods presented in the Form 10-K.
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