SanDisk 2009 Annual Report Download - page 155

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This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Contractual Obligations and Off-Balance Sheet Arrangements
The following tables summarize the Company’s contractual cash obligations, commitments and off-balance
sheet arrangements at January 3, 2010, and the effect such obligations are expected to have on its liquidity and
cash flows in future periods (in thousands).
Contractual Obligations.
Total
1 Year or Less
(Fiscal 2010)
2 - 3 Years
(Fiscal 2011
and 2012)
4 - 5 Years
(Fiscal 2013
and 2014)
More than 5
Years (Beyond
Fiscal 2014)
Operating leases ..................... $ 26,922 $ 9,003 $ 11,207 $ 3,904 $ 2,808
Flash Partners reimbursement for certain
fixed costs including depreciation ...... 1,152,558(3) 445,529 528,120 131,098 47,811
Flash Alliance reimbursement for certain
fixed costs including depreciation ...... 1,494,083(3) 494,334 698,512 240,603 60,634
Toshiba research and development ....... 18,878(3) 18,878 — — —
Capital equipment purchase
commitments ...................... 4,084 4,084 — — —
Convertible notes principal and interest(1) . . 1,263,913 86,658 23,000 1,154,255 —
Operating expense commitments ........ 23,287 23,272 15 — —
Noncancelable production purchase
commitments(2) .................... 214,201(3) 214,201 — — —
Total contractual cash obligations .... $4,197,926 $1,295,959 $1,260,854 $1,529,860 $ 111,253
Off-Balance Sheet Arrangements.
As of
January 3,
2010
Guarantee of Flash Partners equipment leases(4) ......................................... $ 538,693
Guarantee of Flash Alliance equipment leases(4) ......................................... 531,070
(1) In May 2006, the Company issued and sold $1.15 billion in aggregate principal amount of 1% Senior
Convertible Notes due May 15, 2013. The Company will pay cash interest at an annual rate of 1%, payable
semi-annually on May 15 and November 15 of each year until calendar year 2013. In November 2006,
through its acquisition of msystems, the Company assumed msystems’ $75 million in aggregate principal
amount of 1% Convertible Notes due March 15, 2035. The Company will pay cash interest at an annual rate
of 1%, payable semi-annually on March 15 and September 15 of each year until calendar year 2035.
(2) Includes Toshiba foundries, Flash Ventures, related party vendors and other silicon source vendor purchase
commitments.
(3) Includes amounts denominated in Japanese yen, which are subject to fluctuation in exchange rates prior to
payment and have been translated using the exchange rate at January 3, 2010.
(4) The Company’s guarantee obligation, net of cumulative lease payments, is 98.9 billion Japanese yen, or
approximately $1.07 billion based upon the exchange rate at January 3, 2010.
The Company has excluded $208.1 million of unrecognized tax benefits from the contractual obligation
table above due to the uncertainty with respect to the timing of associated future cash flows at January 3, 2010.
The Company is unable to make reasonable reliable estimates of the period of cash settlement with the respective
taxing authorities.
F-43