Commitments Contingencies and Guarantees (Tables)

6 Months Ended

Jul. 03, 2011

Commitments Contingencies and Guarantees [Abstract]

Company's portion of the remaining guarantee obligations under each of Flash Ventures' master lease facilities


Master Lease Agreements by Execution Date	Lease Type	Lease Amounts				Expiration
		(Yen in billions)		(Dollars in thousands)
Flash Partners
September 2006	Original	¥	11.8	$	146,472		2011
March 2007	Original		6.2		76,418		2012
February 2008	Original		2.4		29,815		2013
April 2010	Refinanced		3.3		39,609		2014
January 2011	Refinanced		5.3		65,657		2014

			29.0		357,971

Flash Alliance
November 2007	Original		13.2		162,764		2013
June 2008	Original		17.5		217,558		2013

			30.7		380,322

Total guarantee obligations		¥	59.7	$	738,293

Remaining guarantee obligations


			Purchase Option
	Payment of		Exercise Price at
	Principal		Final Lease		Guarantee
Annual Installments	Amortization		Terms		Amount
			(In thousands)
Year 1	$	222,493	$	145,038	$	367,531
Year 2		109,853		170,988		280,841
Year 3		16,573		64,808		81,381
Year 4		954		7,586		8,540

Total guarantee obligations	$	349,873	$	388,420	$	738,293

Contractual Obligations


										More than
						2 - 3 Years		4 - 5 Years		5 Years
				1 Year or Less		(Fiscal 2012		(Fiscal 2014		(Beyond
	Total			(6 months)		and 2013)		and 2015)		Fiscal 2015)
	(In thousands)
Facility and other operating leases	$	25,609		$	4,851	$	15,101	$	5,086	$	571
Flash Partners reimbursement for certain fixed costs including depreciation		945,698	⁽⁴⁾⁽⁵⁾		211,560		460,787		192,476		80,875
Flash Alliance reimbursement for certain fixed costs including depreciation		2,324,413	⁽⁴⁾⁽⁵⁾		489,461		1,043,416		579,833		211,703
Flash Forward equipment investments and expense reimbursement		1,096,553	⁽⁴⁾		205,824		581,866		216,947		91,916
Toshiba research and development		122,573	⁽⁴⁾		62,525		30,048		30,000		—
Capital equipment purchase commitments		41,973			41,481		293		199		—
1% Convertible senior notes principal and interest ⁽¹⁾		1,173,000			5,750		1,167,250		—		—
1.5% Convertible senior notes principal and interest ⁽²⁾		1,097,500			7,500		30,000		30,000		1,030,000
Operating expense commitments		41,534			36,369		5,165		—		—
Noncancelable production purchase commitments ⁽³⁾		373,317	⁽⁴⁾		373,317		—		—		—

Total contractual cash obligations	$	7,242,170		$	1,438,638	$	3,333,926	$	1,054,541	$	1,415,065

Off Balance Sheet Arrangements


	July 3,
	2011
Guarantee of Flash Ventures equipment leases ⁽⁶⁾	$	738,293


⁽¹⁾		In May 2006, the Company issued and sold $1.15 billion in aggregate principal amount of 1% Notes due 2013. The Company will pay cash interest at an annual rate of 1%, payable semi-annually on May 15 and November 15 of each year until calendar year 2013.

⁽²⁾		In August 2010, the Company issued and sold $1.00 billion in aggregate principal amount of 1.5% Notes due 2017. The Company will pay cash interest at an annual rate of 1.5%, payable semi-annually on August 15 and February 15 of each year until calendar year 2017.

⁽³⁾		Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments.

⁽⁴⁾		Includes amounts denominated in Japanese yen, which are subject to fluctuation in exchange rates prior to payment and have been translated using the exchange rate at July 3, 2011.

⁽⁵⁾		Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term.

⁽⁶⁾		The Company’s guarantee obligation, net of cumulative lease payments, is 59.7 billion Japanese yen, or approximately $738 million based upon the exchange rate at July 3, 2011.

Operating leases future minimum payments


Fiscal Year	Lease Payments
	(In thousands)
2011 (remaining 6 months)	$	5,087
2012		10,331
2013		5,774
2014		3,498
2015		2,839
2016 and thereafter		571

		28,100
Sublease income to be received in the future under noncancelable subleases		(2,491	)

Net operating leases	$	25,609

Net rent expense


	Three months ended				Six months ended
	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010
	(In thousands)
Rent expense, net	$	1,951	$	1,758	$	3,847	$	3,785

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

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