Commitments Contingencies and Guarantees (Tables)

12 Months Ended

Jan. 01, 2012

Commitments Contingencies and Guarantees [Abstract]

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

The following table details the Company’s portion of the remaining guarantee obligations under each of Flash Ventures’ master lease facilities (both original and refinanced leases) in both Japanese yen and U.S. dollar equivalent based upon the exchange rate at January 1, 2012.



Master Lease Agreements by Execution Date	Lease Type	Lease Amounts				Expiration
		(Yen in billions)		(Dollars in thousands)
Flash Partners
March 2007	Original	¥	5.0	$	65,694	2012
February 2008	Original	2.0		25,783		2013
April 2010	Refinanced	2.5		32,584		2014
January 2011	Refinanced	4.4		56,280		2014
November 2011	Refinanced	9.0		116,482		2014
		22.9		296,823
Flash Alliance
November 2007	Original	10.7		139,049		2013
June 2008	Original	14.9		192,122		2013
		25.6		331,171
Flash Forward
November 2011	Original	8.0		103,668		2016
Total guarantee obligations		¥	56.5	$	731,662

Remaining guarantee obligations

The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the master lease agreements, in annual installments as of January 1, 2012 in U.S. dollars based upon the yen/dollar exchange rate at January 1, 2012 (in thousands).



Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
Year 1	$	216,470	$	102,539	$	319,009
Year 2	106,160		150,486		256,646
Year 3	54,316		59,031		113,347
Year 4	13,301		—		13,301
Year 5	13,384		15,975		29,359
Total guarantee obligations	$	403,631	$	328,031	$	731,662

Contractual Obligations

Contractual cash obligations and commitments as of January 1, 2012 are as follows (in thousands):



	Total			1 Year or Less		2 - 3 Years (Fiscal 2013 and 2014)		4 –5 Years (Fiscal 2015 and 2016)		More than 5 Years (Beyond Fiscal 2016)
Facility and other operating leases	$	22,004	⁽⁵⁾	$	10,469	$	8,749	$	2,786	$	—
Flash Partners⁽¹⁾	773,900		⁽⁵⁾⁽⁶⁾	307,174		296,734		95,456		74,536
Flash Alliance⁽¹⁾	1,884,483		⁽⁵⁾⁽⁶⁾	609,023		805,478		397,405		72,577
Flash Forward⁽¹⁾	1,002,272		⁽⁵⁾⁽⁶⁾	497,355		271,366		207,632		25,919
Toshiba research and development	68,357		⁽⁵⁾	38,357		15,000		15,000		—
Capital equipment purchase commitments	41,729			39,900		1,019		810		—
1% Convertible senior notes principal and interest⁽²⁾	941,982			9,281		932,701		—		—
1.5% Convertible senior notes principal and interest⁽³⁾	1,090,000			15,000		30,000		30,000		1,015,000
Operating expense commitments	53,403			51,403		2,000		—		—
Noncancelable production purchase commitments⁽⁴⁾	379,079		⁽⁵⁾	379,079		—		—		—
Total contractual cash obligations	$	6,257,209		$	1,957,041	$	2,363,047	$	749,089	$	1,188,032

————


⁽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 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 on the outstanding notes at an annual rate of 1.0%, payable semi-annually on May 15 and November 15 of each year until calendar year 2013. In fiscal year 2011, the Company redeemed $221.9 million of the outstanding notes. See Note 7, “Financing Arrangements - Bond Repurchase,” for further discussion.


⁽³⁾	In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due 2017. 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 calendar year 2017.


⁽⁴⁾	Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments.


⁽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 January 1, 2012.


⁽⁶⁾	Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term

Off Balance Sheet Arrangements

Off-balance sheet arrangements are as follows (in thousands):



	January 1, 2012
Guarantee of Flash Ventures equipment leases ⁽¹⁾	$	731,662

————


⁽¹⁾	The Company’s guarantee obligation, net of cumulative lease payments, was 56.5 billion Japanese yen, or approximately $732 million based upon the exchange rate at January 1, 2012.

Operating leases future minimum payments

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 2012 through fiscal year 2016. Future minimum lease payments are presented below (in thousands):



	January 1, 2012
Fiscal year:
2012	$	10,958
2013	6,154
2014	3,650
2015	2,921
2016	576
	24,259
Sublease income to be received in the future under noncancelable subleases	(2,255		)
Net operating leases	$	22,004

Net rent expense

Net rent expense was as follows (in thousands):



	Fiscal years ended
	January 1, 2012		January 2, 2011		January 3, 2010
Rent expense, net	$	7,926	$	7,522	$	7,921

- 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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