SanDisk 2014 Annual Report Download - page 175

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In addition, some key components are purchased from single source vendors for which alternative
sources are currently not available. Shortages could occur in these essential materials due to an
interruption of supply or increased demand in the industry. If the Company were unable to procure certain
of such materials, it could reduce sales, which could have a material adverse effect upon its results of
operations. The Company also relies on third-party subcontractors to assemble and test a portion of its
products. The Company does not have long-term contracts with some of these subcontractors and cannot
directly control product delivery schedules or manufacturing processes. This could lead to product
shortages or quality assurance problems that could increase the manufacturing costs of the Company’s
products and have material adverse effects on the Company’s operating results.
Concentration of Credit Risk. The Company’s concentration of credit risk consists principally of cash,
cash equivalents, short and long-term marketable securities and trade receivables. The Company’s
investment policy restricts investments to high-credit quality investments and limits the amounts invested
with any one issuer. The Company sells to Commercial and Retail customers in the Americas; Europe,
Middle East and Africa (‘‘EMEA’’); and Asia-Pacific. The Company performs ongoing credit evaluations
of its customers’ financial condition and generally requires no collateral. As of December 28, 2014 and
December 29, 2013, the Company’s top 10 customers or licensees accounted for approximately 68% and
64% of the Company’s net accounts receivable, respectively. As of December 28, 2014, Apple and Best
Buy Co., Inc. (‘‘Best Buy’’) accounted for 34% and 10% of the Company’s net accounts receivable,
respectively. As of December 29, 2013, Apple and Best Buy accounted for 32% and 11% of the Company’s
net accounts receivable, respectively.
Off-Balance Sheet Risk. The Company has off-balance sheet financial obligations. See Note 14,
‘‘Commitments, Contingencies and Guarantees.’’
Note 10. Stockholders’ Equity and Share-based Compensation
Dividends
During the fiscal year ended December 28, 2014, the Company’s Board of Directors declared the
following dividends:
Declaration Date Dividend per Share Record Date Total Amount Declared Payment Date
(In millions)
January 21, 2014 . . . $0.225 February 3, 2014 $51.7 February 24, 2014
April 15, 2014 .... 0.225 May 5, 2014 52.0 May 27, 2014
July 15, 2014 ..... 0.300 August 4, 2014 68.5 August 25, 2014
October 15, 2014 . . 0.300 November 3, 2014 67.5 November 24, 2014
On January 21, 2015, the Company’s Board of Directors declared a dividend of $0.30 per share for
holders of record as of March 2, 2015, which is to be paid on March 23, 2015. Future dividends are subject
to declaration by the Company’s Board of Directors.
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Annual Report