SanDisk 2011 Annual Report Download - page 165

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This is a TAB type table. Insert
conts here. Annual Report
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Ventures and Foundry Arrangement with Toshiba. Purchase orders placed under Flash Ventures
and the foundry arrangement with Toshiba for up to three months are binding and cannot be canceled. These
outstanding purchase commitments are included as part of the total “Noncancelable production purchase
commitments” in the “Contractual Obligations” table.
Other Silicon Sources. The Company’s contracts with its other sources of silicon wafers generally require
the Company to provide monthly purchase order commitments based on non-binding nine month rolling
forecasts. The purchase orders placed under these arrangements are generally binding and cannot be canceled.
These outstanding purchase commitments for other sources of silicon wafers are included as part of the total
“Noncancelable production purchase commitments” in the “Contractual Obligations” table.
Subcontractors. In the normal course of business, the Company’s subcontractors periodically procure
production materials based on the forecast the Company provides to them. The Company’s agreements with
these subcontractors require that the Company reimburse them for materials that are purchased on the
Company’s behalf in accordance with such forecast. Accordingly, the Company may be committed to certain
costs over and above its open noncancelable purchase orders with these subcontractors. These commitments for
production materials to subcontractors are included as part of the total “Noncancelable production purchase
commitments” in the “Contractual Obligations” table.
Off-Balance Sheet Liabilities
The following table details the Company’s portion of the remaining guarantee obligations under each of
Flash Ventures’ master lease facilities (both original and refinanced leases) in both Japanese yen and U.S. dollar
equivalent based upon the exchange rate at January 1, 2012.
Master Lease Agreements by Execution Date Lease Type Lease Amounts Expiration
(Yen in billions) (Dollars in thousands)
Flash Partners
March 2007 ....................... Original ¥ 5.0 $ 65,694 2012
February 2008 ..................... Original 2.0 25,783 2013
April 2010 ........................ Refinanced 2.5 32,584 2014
January 2011 ...................... Refinanced 4.4 56,280 2014
November 2011 .................... Refinanced 9.0 116,482 2014
22.9 296,823
Flash Alliance
November 2007 .................... Original 10.7 139,049 2013
June 2008 ......................... Original 14.9 192,122 2013
25.6 331,171
Flash Forward
November 2011 .................... Original 8.0 103,668 2016
Total guarantee obligations ....... ¥ 56.5 $ 731,662
F-41