Commitments Contingencies and Guarantees (Tables)

12 Months Ended

Dec. 29, 2013

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 (in billions) and U.S. dollar (in thousands) equivalent based upon the exchange rate at December 29, 2013.



Master Lease Agreements by Execution Date	Lease Type	Lease Amounts				Expiration
		(Japanese yen)		(U.S. dollar)
Flash Partners
April 2010	Refinanced	¥	1.0	$	9,675	2014
January 2011	Refinanced	1.7		15,768		2014
November 2011	Refinanced	4.5		42,640		2014
March 2012	Refinanced	3.2		30,917		2015
		10.4		99,000
Flash Alliance
March 2012	Original	7.1		67,633		2017
July 2012	Refinanced	13.4		127,945		2017
		20.5		195,578
Flash Forward
November 2011	Original	11.1		105,320		2016
March 2012	Original	7.0		66,470		2017
July 2012	Original	2.6		25,189		2017
		20.7		196,979
Total guarantee obligations		¥	51.6	$	491,557

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 December 29, 2013 in U.S. dollars based upon the yen/dollar exchange rate at December 29, 2013 (in thousands).



Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
Year 1	$	148,038	$	42,233	$	190,271
Year 2	103,858		17,319		121,177
Year 3	71,348		11,748		83,096
Year 4	28,696		66,716		95,412
Year 5	1,601		—		1,601
Total guarantee obligations	$	353,541	$	138,016	$	491,557

Contractual Obligations

Contractual cash obligations and commitments as of December 29, 2013 are as follows (in thousands):



	Total			1 Year (Fiscal 2014)		2 – 3 Years (Fiscal 2015 and 2016)		4 – 5 Years (Fiscal 2017 and 2018)		More than 5 Years (Beyond Fiscal 2018)
Facility and other operating leases	$	17,230	⁽⁵⁾	$	7,177	$	8,067	$	1,909	$	77
Flash Partners⁽¹⁾	378,021		⁽⁵⁾⁽⁶⁾	147,448		160,581		66,670		3,322
Flash Alliance⁽¹⁾	1,616,360		⁽⁵⁾⁽⁶⁾	683,292		583,158		313,211		36,699
Flash Forward⁽¹⁾	894,567		⁽⁵⁾⁽⁶⁾	391,188		321,920		157,504		23,955
Toshiba research and development	54,042		⁽⁵⁾	39,042		15,000		—		—
Capital equipment purchase commitments	29,980			21,790		8,187		3		—
1.5% Convertible senior notes principal and interest⁽²⁾	1,060,000			15,000		30,000		1,015,000		—
0.5% Convertible senior notes principal and interest ⁽³⁾	1,552,250			7,250		15,000		15,000		1,515,000
Operating expense commitments	32,659			30,340		2,319		—		—
Noncancelable production purchase commitments ⁽⁴⁾	233,976		⁽⁵⁾	233,976		—		—		—
Total contractual cash obligations	$	5,869,085		$	1,576,503	$	1,144,232	$	1,569,297	$	1,579,053


⁽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. 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.


⁽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 29, 2013.


⁽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):



	December 29, 2013
Guarantee of Flash Ventures equipment leases ⁽¹⁾	$	491,557


⁽¹⁾	The Company’s guarantee obligation, net of cumulative lease payments, was 51.6 billion Japanese yen, or approximately $492 million based upon the exchange rate at December 29, 2013.

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 2014 through fiscal year 2019. Future minimum lease payments are presented below (in thousands):



	Future minimum lease payments
Fiscal year:
2014	$	7,717
2015	6,083
2016	2,695
2017	1,370
2018	539
2019	77
	18,481
Sublease income to be received in the future under noncancelable subleases	(1,251		)
Net operating leases	$	17,230

Net rent expense

Net rent expense was as follows (in thousands):



	Fiscal years ended
	December 29, 2013		December 30, 2012		January 1, 2012
Rent expense, net	$	6,473	$	6,366	$	7,926

- 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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