SanDisk 2007 Annual Report Download - page 132

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with such claims. This agreement provides limited protection for the Company against third-party claims that
NAND flash memory products manufactured and sold by Flash Partners or Flash Alliance infringe third-party
patents. The Company has not made any indemnification payments under any such agreements and as of
December 30, 2007, no amounts have been accrued in the accompanying consolidated financial statements with
respect to these indemnification guarantees.
Contractual Obligations and Off-Balance Sheet Arrangements
Contractual Obligations. The following summarizes the Company’s contractual cash obligations, commit-
ments and off-balance sheet arrangements at December 30, 2007, and the effect such obligations are expected to
have on its liquidity and cash flows in future periods (in thousands).
Total
1 Year or Less
(Fiscal 2008)
2 - 3 Years
(Fiscal 2009
and 2010)
4-5 Years
(Fiscal 2011
and 2012)
More than 5
Years
(Beyond
Fiscal 2012)
Operating leases . ........ $ 39,673 $ 8,468 $ 15,700 $ 7,472 $ 8,033
FlashVision reimbursement
for certain other costs
including depreciation . . . 137,021
(3)
64,429 69,673 2,919 —
Flash Partners
reimbursement for certain
other costs including
depreciation . . ........ 1,915,456
(3)
581,359 890,771 401,235 42,091
Flash Alliance fabrication
capacity expansion and
reimbursement for certain
other costs including
depreciation and
start-up.............. 2,526,791
(3)
945,551 877,081 612,275 91,884
Toshiba research and
development . . ........ 10,000
(3)
10,000 — — —
Capital equipment
purchases
commitments . ........ 55,697 55,697 — — —
Convertible notes principal
and interest
(1)
......... 1,307,170 12,250 24,500 24,500 1,245,920
Operating expense
commitments . ........ 21,384 21,384 — — —
Noncancelable production
purchase
commitments
(2)
........ 250,544
(3)
250,544 — — —
Total contractual cash
obligations . . . ........ $6,263,736 $1,949,682 $1,877,725 $1,048,401 $1,387,928
Off-Balance Sheet Arrangements.
As of
December 30,
2007
Indemnification of FlashVision equipment lease
(4)
............................ $ 32,106
Guarantee of Flash Partners equipment leases
(5)
.............................. $974,126
Guarantee of Flash Alliance equipment lease
(5)
.............................. $132,837
F-36
Notes to Consolidated Financial Statements — (Continued)