SanDisk 2011 Annual Report Download - page 99

This is a TAB type table. Insert
conts here. Annual Report
The effect, if any, of any of these transactions and activities on the market price of our common stock or the
1% Notes due 2013 and 1.5% Notes due 2017 will depend in part on market conditions and cannot be ascertained
at this time, but any of these activities could adversely affect the value of our common stock and the value of the
1% Notes due 2013 and 1.5% Notes due 2017, and as a result, the amount of cash and the number of shares of
common stock, if any, the holders will receive upon the conversion of the notes.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters are located in Milpitas, California. As of January 1, 2012, we leased five
buildings comprising approximately 483,000 square feet. On January 31, 2012, we purchased three of the five
leased buildings as well as two additional buildings that are adjacent to the three leased buildings that were
purchased. These leased and owned facilities in Milpitas, California total approximately 815,000 square feet and
house or will house our corporate offices, including personnel from engineering, sales, marketing, operations and
administration. The lease agreements on the two remaining leased buildings will expire in 2013, at which time
we expect to occupy approximately 588,000 square feet.
We own an advanced testing and assembly building of approximately 363,000 square feet and are
constructing a second adjacent building of approximately 323,000 square feet that will be completed in 2012,
both located on a 50-year land lease in Shanghai, China, of which we have 45 years remaining. In addition, we
own two buildings comprising approximately 157,000 square feet located in Kfar Saba, Israel, that house
administrative offices and research and development facilities. The buildings are located on a 99-year land lease,
of which we have 81 years remaining. We are constructing a building of approximately 64,000 square feet
located in Tefen, Israel, that will be completed in 2012 and will house administrative offices and research and
development facilities. The construction of this building is located on a 50-year land lease, of which we have
46 years remaining.
We also lease sales and marketing, and administrative offices in the U.S., China, France, Germany, India,
Ireland, Israel, Japan, Korea, Russia, Scotland, Singapore, Spain, Sweden, Taiwan and the United Arab Emirates;
operation support offices in Taiwan, China and India, and design centers in Israel, Scotland and India.
ITEM 3. LEGAL PROCEEDINGS
See Note 16, “Litigation,” in the Notes to Consolidated Financial Statements of this Form 10-K included in
Part II, Item 8, “Financial Statement and Supplementary Data” of this report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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