SanDisk 2014 Annual Report Download - page 191

SANDISK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(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 28, 2014.
(6) Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term.
(7) Excludes $119.2 million in capital expenditures not yet paid in cash.
(8) Excludes amounts in accounts payable and accrued liabilities not yet paid in cash.
The Company has excluded $132.3 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 28, 2014. 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 were as follows (in thousands):
December 28,
2014
Guarantee of Flash Ventures equipment leases(1) ................................... $ 550,964
Guarantee of asset purchase in Bangalore, India(2) .................................. 25,483
(1) The Company’s guarantee obligation, net of cumulative lease payments, was 66.4 billion Japanese yen, or
approximately $551 million based upon the exchange rate at December 28, 2014.
(2) The Company is committed to purchase land and a building shell in Bangalore, India, if the seller is able to obtain
necessary third-party and government approvals by June 1, 2015. The Company’s purchase obligation was
approximately $25 million based upon the exchange rate at December 28, 2014. The Company is currently
making building improvements on the facility and has received a bank guarantee of up to approximately
$17 million, based upon the exchange rate at December 28, 2014, from the seller to refund its building
improvement expenditures if the purchase obligation expires unexercised.
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
2015 through fiscal year 2026. Future minimum lease payments are presented below (in thousands):
Future minimum
lease payments
Fiscal year:
2015 ............................................................ $ 15,731
2016 ............................................................ 11,404
2017 ............................................................ 9,804
2018 ............................................................ 8,708
2019 and thereafter .................................................. 20,480
Operating leases, gross ............................................. 66,127
Sublease income to be received in the future under noncancelable subleases ........... (711)
Operating leases, net .............................................. $ 65,416
F-51
Annual Report