SanDisk 2007 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 of the 2007 SanDisk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 157

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157

Holders of the notes have the right to require the Company to purchase all or a portion of their notes on
March 15, 2010, March 15, 2015, March 15, 2020, March 15, 2025 and March 15, 2030. The purchase price payable
will be equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest, if any,
to but excluding the purchase date.
In accordance with Accounting Principle Board Opinion No. 14, (“APBO 14”), Accounting for Convertible
Debt and Debt Issued with Stock Purchase Warrants, the Company determined the existence of a substantial
premium over par value for the 1% Notes due 2035 based upon quoted market prices at the msystems acquisition
date and recorded the notes at par value with the resulting excess of fair value over par (the substantial premium)
recorded in Capital in excess of par value in Shareholders’ Equity in the amount of $26.4 million.
Note 6: Share Repurchase Program
During the fourth quarter of fiscal 2006, the Company’s board of directors authorized the repurchase of up to
$300 million of the Company’s common stock in the open market over two years following the date of
authorization. During the year ended December 30, 2007, the Company repurchased 7.5 million shares, for an
aggregate purchase price of approximately $300 million, all of which are held as treasury stock and accounted for
using the cost method. At December 30, 2007, the Company had completed the share repurchase program as
authorized by the Company’s board of directors.
Note 7: Concentrations of Risk and Segment Information
Geographic Information and Major Customers. The Company markets and sells flash-based memory
products in the United States and in foreign countries through its sales personnel, dealers, distributors, retailers
and subsidiaries. The Company’s Chief Operating Decision Maker, the President and Chief Operating 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 information can be found in the
accompanying consolidated financial statements.
Other than sales in the United States, Japan, Europe, Middle East and Africa, or EMEA, and Asia Pacific, or
APAC, international sales were not material individually in any other international locality. Intercompany sales
between geographic areas have been eliminated.
Information regarding geographic areas for fiscal years 2007, 2006 and 2005 are as follows (in thousands):
December 30,
2007
December 31,
2006
January 1,
2006
Fiscal Years Ended
Revenues:
United States ............................... $1,227,303 $1,272,927 $ 986,529
Japan ..................................... 301,970 231,835 138,507
EMEA.................................... 890,340 728,355 500,998
APAC and other foreign countries ................ 1,476,753 1,024,408 680,035
Total ....................................... $3,896,366 $3,257,525 $2,306,069
F-20
Notes to Consolidated Financial Statements — (Continued)