SanDisk 2007 Annual Report Download - page 114

The annual expected amortization expense of other intangible assets as of December 30, 2007 is presented
below:
Fiscal periods
Acquisition-related
Intangible Assets
Technology
Licenses and
Patents
Estimated Amortization Expenses
(In thousands)
2008 . .......................................... $ 76,229 $ 6,824
2009 . .......................................... 71,724 6,199
2010 . .......................................... 71,529 4,875
2011 . .......................................... 64,809 3,023
2012 . .......................................... 12,529 2,375
2013 and thereafter ................................. 522 1,385
Total . .......................................... $297,342 $ 24,681
Note 5: Financing Arrangements
The following table reflects the carrying value of our long-term borrowings as of December 30, 2007 and
December 31, 2006:
December 30,
2007
December 31,
2006
(In millions)
1% Convertible Senior Notes due 2013 .................. $1,150 $1,150
1% Convertible Notes due 2035 ....................... $ 75 $ 75
1% Convertible Senior Notes Due 2013. In May 2006, the Company issued and sold $1.15 billion in
aggregate principal amount of 1% Convertible Senior Notes due 2013 (the “1% Notes due 2013”) at par. The
1% Notes due 2013 may be converted, under certain circumstances described below, based on an initial conversion
rate of 12.1426 shares of common stock per $1,000 principal amount of notes (which represents an initial
conversion price of approximately $82.36 per share). The net proceeds to the Company from the offering of the
1% Notes due 2013 were $1.13 billion.
The 1% Notes due 2013 may be converted prior to the close of business on the scheduled trading day
immediately preceding February 15, 2013, in multiples of $1,000 principal amount at the option of the holder under
any of the following circumstances: 1) during the five business-day period after any five consecutive trading-day
period (the “measurement period”) in which the trading price per note for each day of such measurement period was
less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate
on each such day; 2) during any calendar quarter after the calendar quarter ending June 30, 2006, if the last reported
sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days
ending on the last trading day of the immediately preceding calendar quarter exceeds 120% of the applicable
conversion price in effect on the last trading day of the immediately preceding calendar quarter; or 3) upon the
occurrence of specified corporate transactions. On and after February 15, 2013 until the close of business on the
scheduled trading day immediately preceding the maturity date of May 15, 2013, holders may convert their notes at
any time, regardless of the foregoing circumstances.
Upon conversion, a holder will receive the conversion value of the 1% Notes due 2013 to be converted equal to
the conversion rate multiplied by the volume weighted average price of the Company’s common stock during a
specified period following the conversion date. The conversion value of each 1% Notes due 2013 will be paid in:
1) cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and 2) to the extent
the conversion value exceeds the principal amount of the note, a combination of common stock and cash. The
conversion price will be subject to adjustment in some events but will not be adjusted for accrued interest. In
addition, upon a fundamental change at any time, as defined, the holders may require the Company to repurchase for
F-18
Notes to Consolidated Financial Statements — (Continued)