SanDisk 2014 Annual Report Download - page 190

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
and sold by Flash Ventures infringe third-party patents. The Company has not made any indemnification
payments under any such agreements. As of December 28, 2014 and December 29, 2013, no amounts have
been accrued in the Company’s Consolidated Financial Statements with respect to these indemnification
guarantees.
Contractual Obligations and Off-Balance Sheet Arrangements
The following tables summarize the Company’s contractual cash obligations, commitments and
off-balance sheet arrangements at December 28, 2014, and the effect such obligations are expected to have
on its liquidity and cash flows in future periods.
Contractual Obligations. Contractual cash obligations and commitments as of December 28, 2014 were
as follows (in thousands):
More than
2 - 3 Years 4 - 5 Years 5 Years
1 Year (Fiscal 2016 (Fiscal 2018 (Beyond
Total (Fiscal 2015) and 2017) and 2019) Fiscal 2019)
Facility and other operating leases . . . $ 65,416 $ 15,166 $ 21,062 $ 15,509 $ 13,679
Flash Partners(1) ............... 661,820(5)(6) 206,713 256,768 157,159 41,180
Flash Alliance(1) ............... 1,656,655(5)(6) 655,083 599,075 360,615 41,882
Flash Forward(1) ............... 905,736(5)(6) 302,332 351,883 189,082 62,439
Toshiba research and development . . . 39,298(5) 39,298 — — —
1.5% Notes due 2017 principal and
interest(2) ................... 1,041,644 14,954 1,026,690 — —
0.5% Notes due 2020 principal and
interest(3) ................... 1,545,000 7,500 15,000 15,000 1,507,500
Noncancelable production purchase
commitments(4) ............... 241,663(5) 241,663 — — —
Capital equipment purchase
commitments(7) ............... 125,856 125,744 112 — —
Operating expense commitments(8) . . . 43,251 42,911 340 — —
Total contractual cash obligations . $ 6,326,339 $ 1,651,364 $ 2,270,930 $ 737,365 $ 1,666,680
(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 August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due 2017.
As of December 28, 2014, $3.2 million aggregate principal amount was converted and settled. As of January 30,
2015, the Company had received additional conversion notices for a total of $46 thousand aggregate principal
amount of the 1.5% Notes due 2017, for which conversion is expected to be completed in the first quarter of fiscal
year 2015. 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.
(3) In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Notes due
2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable
semi-annually on April 15 and October 15 of each year until October 15, 2020.
(4) Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments.
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