SanDisk 2004 Annual Report Download - page 64

Table of Contents
Notes to Consolidated Financial Statements — (Continued)
At January 2, 2005, options outstanding were as follows:
Options Outstanding Options Exercisable
Number Weighted Number
Outstanding as Average Weighted Exercisable as Weighted
of January 2, Remaining Average of January 2, Average
Range of Exercise Prices 2005 Contractual
Life Exercise Price 2005 Exercise Price
$ 0.56 − $ 5.41 2,865,288 3.97 $ 3.59 2,722,747 $ 3.50
$ 5.73 − $ 8.29 3,603,100 7.06 $ 6.49 2,166,087 $ 6.47
$ 8.36 − $ 8.87 4,238,129 8.01 $ 8.85 1,716,967 $ 8.84
$ 8.93 − $19.22 4,264,995 5.73 $ 16.33 4,006,897 $ 16.50
$19.82 − $34.50 2,493,892 8.54 $ 24.77 970,566 $ 26.94
$34.59 − $36.63 4,796,458 8.90 $ 34.63 180,728 $ 35.47
$37.25 − $69.75 370,580 6.87 $ 44.41 252,550 $ 46.77
$ 0.56 − $69.75 22,632,442 7.15 $ 17.02 12,016,542 $ 12.42
The number of exercisable options and the weighted average exercise price as of January 2, 2005, December 28, 2003 and
December 29, 2002 were 12,016,542, 9,690,363 and 10,967,150 and $12.42, $12.13 and $10.81 per share, respectively.
Employee Stock Purchase Plan. In August 1995, the Company adopted the Employee Stock Purchase Plan (the Purchase Plan). In
May 1999, the Company’s stockholders increased the shares available for future issuance under the Purchase Plan by 1,200,000 shares
and approved an automatic share increase feature pursuant to which the number of shares available for issuance under the Purchase
Plan will automatically increase on the first trading day in January each calendar year, beginning with calendar year 2002 and
continuing over the remaining term of the Purchase Plan, by an amount equal to 0.43% of the total number of shares outstanding on
the last trading day in December in the immediately preceding calendar year, but in no event will any annual increase exceed
800,000 shares. Under the Purchase Plan, qualified employees are entitled to purchase shares through payroll deductions at 85% of the
fair market value at the beginning or end of the offering period, whichever is lower. The offering periods are six months in duration.
As of January 2, 2005, the Company had reserved 6,608,648 shares of common stock for issuance under the Purchase Plan and the
Company’s International Employee Stock Purchase Plan, a comparable stock purchase plan for employees of the Company’s foreign
subsidiaries who are not residing in the United States, and a total of 3,713,284 shares had been issued through January 2, 2005.
Retirement Plan. The Company maintains a tax−deferred savings plan, the SanDisk 401(k) Plan, for the benefit of qualified
employees. Qualified employees may elect to make contributions to the plan on a monthly basis. The Company may make annual
contributions to the plan at the discretion of the Company’s Board of Directors. The Company contributed $1.6 million, $1.2 million
and $1.0 million for the years ended January 2, 2005, December 28, 2003 and December 29, 2002, respectively.
Note 4: Concentrations of Risk and Segment Information
Geographic Information and Major Customers. The Company markets and sells its products in the United States and in foreign
countries through its sales personnel, dealers, distributors, retailers and its subsidiaries. The Company’s chief decision maker, the
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 can be found in the accompanying consolidated
financial statements.
Other than sales in North America, Japan and Europe, Middle East and Africa (EMEA), international sales were not material
individually in any other international locality. Intercompany sales between geographic areas have been eliminated.
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