SanDisk 2010 Annual Report Download - page 229

This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
operations in certain circumstances. The Company and Toshiba have also entered into a Patent Indemnification
Agreement under which in many cases the Company will share in the expenses associated with the defense and
cost of settlement associated 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 Ventures infringes
third party patents. The Company has not made any indemnification payments under any such agreements and as
of January 2, 2011, no amounts have been accrued in the accompanying Consolidated Financial Statements with
respect to these indemnification guarantees.
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 2, 2011, 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
2 - 3 Years
(Fiscal 2012
and 2013)
4 - 5 Years
(Fiscal 2014
and 2015)
More than 5
Years (Beyond
Fiscal 2015)
Facility and other operating
leases ................... $ 28,353 $ 8,764 $ 13,899 $ 5,121 $ 569
Flash Partners reimbursement
for certain fixed costs
including depreciation ...... 1,056,654(4)(5) 432,933 410,562 157,517 55,642
Flash Alliance reimbursement
for certain fixed costs
including depreciation ...... 2,831,246(4)(5) 1,172,957 1,003,445 542,675 112,169
Flash Forward equipment
investments and expense
reimbursement ............ 567,474(4)(6) 544,514 1,920 1,920 19,120
Toshiba research and
development .............. 24,671(4) 24,671 — — —
Capital equipment purchase
commitments ............. 33,222 33,222 — — —
1% Convertible senior notes
principal and interest(1) ...... 1,177,255 11,500 1,165,755 — —
1.5% Convertible senior notes
principal and interest(2) ...... 1,099,300 15,000 30,000 30,000 1,024,300
Operating expense
commitments ............. 25,080 22,328 2,752 — —
Noncancelable production
purchase commitments(3) .... 266,016(4) 266,016 — — —
Total contractual cash
obligations ........... $ 7,109,271 $ 2,531,905 $ 2,628,333 $ 737,233 $ 1,211,800
Off-Balance Sheet Arrangements.
As of
January 2,
2011
Guarantee of Flash Ventures equipment leases(7) ........................................... $ 878,833
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