SanDisk 2012 Annual Report Download - page 208

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(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 May 15, 2013. In fiscal year 2011, the Company
redeemed $221.9 million of the outstanding notes.
(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 August 15, 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 December 30, 2012.
(6) Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term.
The Company has excluded $208.6 million of unrecognized tax benefits (which includes penalties and
interest) from the contractual obligation table above due to the uncertainty with respect to the timing of
associated future cash flows at December 30, 2012. The Company is unable to make reasonably reliable
estimates of the period of cash settlement with the respective taxing authorities.
Off-Balance Sheet Arrangements. Off-balance sheet arrangements are as follows (in thousands):
December 30,
2012
Guarantee of Flash Ventures equipment leases (1) ................................................. $ 925,845
(1) The Company’s guarantee obligation, net of cumulative lease payments, was 79.6 billion Japanese yen, or
approximately $926 million based upon the exchange rate at December 30, 2012.
The Company leases many of its office facilities and operating equipment for various terms under long-
term, noncancelable operating lease agreements. The leases expire at various dates from fiscal year 2013 through
fiscal year 2017. Future minimum lease payments are presented below (in thousands):
December 30,
2012
Fiscal year:
2013 ................................................................................. $ 6,672
2014 ................................................................................. 4,600
2015 ................................................................................. 3,788
2016 ................................................................................. 1,200
2017 ................................................................................. 5
16,265
Sublease income to be received in the future under noncancelable subleases ............................ (1,766)
Net operating leases .................................................................... $ 14,499
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