SanDisk 2009 Annual Report Download - page 149

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This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Note 12: Net Income (Loss) per Share
The following table sets forth the computation of basic and diluted net income (loss) per share (in
thousands, except per share amounts):
Fiscal Years Ended
January 3,
2010
December 28,
2008
December 30,
2007
Numerator for basic net income (loss) per share:
Net income (loss) .......................................$ 415,310 $(1,986,624) $ 190,616
Denominator for basic net income (loss) per share:
Weighted average common shares outstanding ................ 227,435 225,292 227,744
Basic net income (loss) per share .............................. $ 1.83 $ (8.82) $ 0.84
Numerator for diluted net income (loss) per share:
Net income (loss) .......................................$ 415,310 $(1,986,624) $ 190,616
Interest on the 1% Convertible Notes due 2035, net of tax ....... 468 — 469
Net income (loss) for diluted net income (loss) per share ........$ 415,778 $(1,986,624) $ 191,085
Denominator for diluted net income (loss) per share:
Weighted average common shares ......................... 227,435 225,292 227,744
Incremental common shares attributable to exercise of outstanding
employee stock options, restricted stock, RSUs, SARs and
warrants (assuming proceeds would be used to purchase
common stock) ...................................... 2,512 — 6,101
Effect of dilutive 1% Convertible Notes due 2035 ............. 2,012 — 2,012
Shares used in computing diluted net income (loss) per share ........ 231,959 225,292 235,857
Diluted net income (loss) per share ............................. $ 1.79 $ (8.82) $ 0.81
Anti-dilutive shares excluded from net income (loss) per share
calculation .............................................. 47,911 54,844 40,133
Basic earnings per share exclude any dilutive effects of stock options, SARs, RSUs, warrants and
convertible securities. Fiscal years 2009 and 2007 diluted earnings per share include the dilutive effects of stock
options, SARs, RSUs, warrants and the 1% Convertible Notes due 2035. Certain common stock issuable under
stock options, SARs, warrants and the 1% Senior Convertible Notes due 2013 have been omitted from the diluted
net income (loss) per share calculation because their inclusion is considered anti-dilutive.
Note 13: Commitments, Contingencies and Guarantees
Flash Partners. The Company has a 49.9% ownership interest in Flash Partners Ltd. (“Flash Partners”), a
business venture with Toshiba which owns 50.1%, formed in fiscal year 2004. In the venture, the Company and
Toshiba have collaborated in the development and manufacture of NAND flash memory products. These NAND
flash memory products are manufactured by Toshiba at the 300-millimeter wafer fabrication facility (“Fab 3”)
located in Yokkaichi, Japan, using the semiconductor manufacturing equipment owned or leased by Flash
Partners. Flash Partners purchases wafers from Toshiba at cost and then resells those wafers to the Company and
Toshiba at cost plus a markup. The Company accounts for its 49.9% ownership position in Flash Partners under
the equity method of accounting. The Company is committed to purchase its provided three-month forecast of
Flash Partner’s NAND wafer supply, which generally equals 50% of the venture’s output. The Company is not
able to estimate its total wafer purchase commitment obligation beyond its rolling three-month purchase
F-37