SanDisk 2012 Annual Report Download - page 210

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following summarizes the aggregated financial information for Flash Ventures (in millions).
December 30,
2012
January 1,
2012
(Unaudited)
Current assets ................................................................. $ 683 $ 1,125
Property, plant, equipment and other assets .......................................... 2,902 5,089
Total assets ............................................................... $ 3,585 $ 6,214
Current liabilities .............................................................. $ 653 $ 2,269
Long-term liabilities ............................................................ 1,640 2,594
The following summarizes the aggregated financial information for Flash Ventures for fiscal years 2012,
2011 and 2010, respectively (in millions). Flash Ventures’ year-ends are March 31, with quarters ending on
March 31, June 30, September 30 and December 31.
Fiscal years ended
December 30,
2012
January 1,
2012
January 2,
2011
(Unaudited)
Net sales(1) ....................................................... $ 4,787 $ 4,577 $ 3,467
Gross profit (loss) .................................................. 8 (2) 15
Net income (loss) .................................................. (15) 5 (1)
(1) Net sales represent sales to both the Company and Toshiba.
Solid State Storage Solutions, Inc. During the second quarter of fiscal year 2007, the Company formed
Solid State Storage Solutions, Inc. (“S4”), a venture with third parties to license intellectual property. S4 qualifies
as a VIE. The Company is considered the primary beneficiary of S4 and the Company consolidates S4 in its
Consolidated Financial Statements for all periods presented. The Company considered multiple factors in
determining it was the primary beneficiary, including its overall involvement with the venture, contributions and
participation in operating activities. S4’s assets and liabilities were not material to the Company’s Consolidated
Balance Sheets as of December 30, 2012 and January 1, 2012.
Sale of SIM Business Net Assets. In February 2010, the Company sold its SIM business net assets for
$17.8 million, which resulted in a gain of $13.2 million recorded in other income (expense). The sale proceeds
are included in “Proceeds from sale of assets” in investing activities on the Consolidated Statements of Cash
Flows. The operating results of the SIM business assets were immaterial for all periods presented.
Note 15: Stockholders’ Rights Plan
On September 15, 2003, the Company amended its existing stockholder rights plan to terminate the rights
issued under that rights plan, and the Company adopted a new rights plan. Under the new rights plan, rights were
distributed as a dividend at the rate of one right for each share of common stock of the Company held by
stockholders of record as of the close of business on September 25, 2003. In November 2006, the Company
extended the term of the rights plan, such that the rights will expire on April 28, 2017 unless redeemed or
exchanged. Under the new rights agreement and after giving effect to the Company’s stock dividend effected on
February 18, 2004, each right will, under the circumstances described below, entitle the registered holder to buy
one (1) two-hundredths of a share of Series A Junior Participating Preferred Stock for $225.00. The rights will
become exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company’s
common stock or commences a tender offer or exchange offer upon consummation of which such person or
group would beneficially own 15% or more of the Company’s common stock.
F-46