SanDisk 2011 Annual Report Download - page 169

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 1, 2012, and the effect such obligations are expected to have on its liquidity and
cash flows in future periods (in thousands).
Contractual Obligations. Contractual cash obligations and commitments as of January 1, 2012 are as
follows (in thousands):
Total 1 Year or Less
2 - 3 Years
(Fiscal 2013
and 2014)
4 - 5 Years
(Fiscal 2015
and 2016)
More than 5
Years (Beyond
Fiscal 2016)
Facility and other operating leases ....... $ 22,004(5) $ 10,469 $ 8,749 $ 2,786 $ —
Flash Partners(1) ..................... 773,900(5)(6) 307,174 296,734 95,456 74,536
Flash Alliance(1) ..................... 1,884,483(5)(6) 609,023 805,478 397,405 72,577
Flash Forward(1) ..................... 1,002,272(5)(6) 497,355 271,366 207,632 25,919
Toshiba research and development ...... 68,357(5) 38,357 15,000 15,000 —
Capital equipment purchase
commitments ..................... 41,729 39,900 1,019 810 —
1% Convertible senior notes principal and
interest(2) ......................... 941,982 9,281 932,701 — —
1.5% Convertible senior notes principal
and interest(3) ..................... 1,090,000 15,000 30,000 30,000 1,015,000
Operating expense commitments ........ 53,403 51,403 2,000 — —
Noncancelable production purchase
commitments(4) .................... 379,079(5) 379,079 — — —
Total contractual cash obligations . . . $ 6,257,209 $ 1,957,041 $ 2,363,047 $ 749,089 $ 1,188,032
(1) Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding
commitments for loans and equity investments and reimbursement for other committed expenses. Funding
commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce
funding commitments.
(2) In May 2006, the Company issued and sold $1.15 billion in aggregate principal amount of 1% Notes due
2013. The Company will pay cash interest on the outstanding notes at an annual rate of 1.0%, payable semi-
annually on May 15 and November 15 of each year until calendar year 2013. In fiscal year 2011, the
Company redeemed $221.9 million of the outstanding notes. See Note 7, “Financing Arrangements—Bond
Repurchase,” for further discussion.
(3) In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due
2017. The Company will pay cash interest on the outstanding notes at an annual rate of 1.5%, payable semi-
annually on August 15 and February 15 of each year until calendar year 2017.
(4) Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments.
(5) Includes amounts denominated in a currency other than the U.S. dollar, which are subject to fluctuation in
exchange rates prior to payment and have been translated using the exchange rate at January 1, 2012.
(6) Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term.
F-45