SanDisk 2014 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2014 SanDisk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 212

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212

COMPENSATION DISCUSSION AND ANALYSIS
This section contains a discussion of the material elements of compensation awarded to, earned by or
paid to the following executive officers of the Company: the principal executive officer; the principal
financial officer; and the three other most highly compensated individuals who were serving as executive
officers as of the last day of fiscal year 2014. These individuals are referred to as the ‘‘Named Executive
Officers’’ in this Proxy Statement and include:
• Sanjay Mehrotra—President and Chief Executive Officer (principal executive officer);
• Judy Bruner—Executive Vice President, Administration and Chief Financial Officer (principal
financial officer);
• Sumit Sadana—Executive Vice President, Chief Strategy Officer and, since April 2015, General
Manager, Enterprise Solutions;
• Mark Brazeal—Chief Legal Officer and Senior Vice President, IP Licensing; and
• Shuki Nir—Senior Vice President, Corporate Marketing, and General Manager, Retail.
The Company’s current executive compensation programs are determined and approved by the
Compensation Committee. None of the Named Executive Officers is a member of the Compensation
Committee.
Executive Summary
Business Overview and Performance. SanDisk is a global leader in flash storage solutions with a strong
history of innovative products. Flash storage technology allows digital information to be stored in a
durable, compact format that retains the data even without power. The Company’s flash-based products
enable businesses and consumers to efficiently and effectively capture, share and preserve digital content.
The Company’s products include flash storage solutions for enterprise data centers and client computing
platforms, as well as removable and embedded flash products for mobile devices, cameras, automotive,
connected home electronics and other applications. The Company’s products are used in a variety of large
markets, and the Company distributes its products globally through commercial and retail channels.
Fiscal Year 2014 Business Highlights.
• Achieved record revenue of $6.63 billion, up 7% compared to fiscal year 2013.
• Delivered non-GAAP operating margin of 28%, resulting in record diluted earnings per share on a
non-GAAP basis of $5.60 per share, up 5% from the non-GAAP diluted earnings per share in fiscal
year 2013.
• Generated free cash flow of $1.5 billion, and returned 103% of free cash flow to stockholders
through $1.3 billion of stock repurchases and $234 million of dividends.
• Increased sales of solid state drive (‘‘SSD’’) solutions by 61% on a year-over-year basis, with SSD
solutions revenue representing 29% of fiscal year 2014 revenue, up from 19% of fiscal year 2013
revenue.
25
Proxy Statement