SanDisk 2009 Annual Report Download - page 157

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This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the
exchange rate at each respective balance sheet date, as a result of its involvement with the flash ventures with
Toshiba is presented below (in thousands).
January 3,
2010
December 28,
2008
Notes receivable ....................................................... $1,083,172 $1,119,898
Equity investments ..................................................... 424,378 482,393
Operating lease guarantees .............................................. 1,069,763 2,094,977
Maximum loss exposure ............................................ $2,577,313 $3,697,268
At January 3, 2010 and December 28, 2008, the Company’s accumulated deficit included approximately
$2.8 million and $5.1 million, respectively, of undistributed earnings of the flash ventures with Toshiba.
The following summarizes the aggregated financial information for FlashVision, Flash Partners and Flash
Alliance as of January 3, 2010 and December 28, 2008 (in thousands).
January 3,
2010
December 28,
2008
(Unaudited)
Current assets ......................................................... $ 794,230 $1,103,911
Property, plant and equipment and other assets ............................... 3,016,667 4,159,457
Total assets ....................................................... $3,810,897 $5,263,368
Current liabilities ...................................................... $ 661,349 $1,931,300
Long-term liabilities ................................................... 2,166,342 2,240,800
The following summarizes the aggregated financial information for FlashVision, Flash Partners and Flash
Alliance for the fiscal years ended January 3, 2010, December 28, 2008 and December 30, 2007, respectively (in
thousands). FlashVision’s, Flash Partners’ and Flash Alliance’s year-ends are March 31, with quarters ending on
March 31, June 30, September 30 and December 31.
Twelve Months Ended
January 3,
2010
December 28,
2008
December 30,
2007
(Unaudited)
Net sales(1) ................................................ $3,296,364 $3,945,321 $2,435,114
Gross profit ............................................... 14,202 21,263 13,587
Net income ............................................... 68,455 7,222 927
(1) Net sales represent sales to both the Company and Toshiba.
Solid State Storage Solutions LLC. During the second quarter of fiscal year 2007, the Company formed a
venture with third parties that will license intellectual property, S4. S4 qualifies as a variable interest entity. The
Company is considered the primary beneficiary of S4 and the Company consolidates S4 in its Consolidated
Financial Statements. S4 was financed with $10.2 million of initial aggregate capital contributions from the
partners. In addition, through January 3, 2010, the Company had loaned $1.7 million to S4 under a revolving line
of credit which expires in May 2012. In July 2007, S4 invested $10.0 million for the acquisition of intellectual
property of which $3.2 million, $3.2 million and $1.8 million was amortized in fiscal years 2009, 2008 and 2007,
respectively. S4 has an obligation of up to an additional $32.5 million related to the acquisition of intellectual
property should the venture be profitable.
F-45