Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 30, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'SANDISK CORP |
Entity Central Index Key | '0001000180 |
Current Fiscal Year End Date | '--12-28 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 30-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 226,688,648 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $1,116,938,000 | $986,246,000 |
Short-term marketable securities | 1,692,801,000 | 1,919,611,000 |
Accounts receivable, net | 596,669,000 | 682,809,000 |
Inventory | 799,883,000 | 756,975,000 |
Deferred taxes | 124,200,000 | 138,192,000 |
Other current assets | 177,532,000 | 166,885,000 |
Total current assets | 4,508,023,000 | 4,650,718,000 |
Long-term marketable securities | 3,508,081,000 | 3,179,471,000 |
Property and equipment, net | 639,653,000 | 655,794,000 |
Notes receivable and investments in Flash Ventures | 1,159,264,000 | 1,134,620,000 |
Deferred taxes | 136,991,000 | 134,669,000 |
Goodwill | 317,930,000 | 318,111,000 |
Intangible assets, net | 221,099,000 | 247,904,000 |
Other non-current assets | 95,330,000 | 167,430,000 |
Total assets | 10,586,371,000 | 10,488,717,000 |
Current liabilities: | ' | ' |
Accounts payable trade | 259,204,000 | 282,582,000 |
Accounts payable to related parties | 160,536,000 | 146,964,000 |
Convertible short-term debt | 840,180,000 | 0 |
Other current accrued liabilities | 349,126,000 | 509,732,000 |
Deferred income on shipments to distributors and retailers and deferred revenue | 269,349,000 | 291,302,000 |
Total current liabilities | 1,878,395,000 | 1,230,580,000 |
Convertible long-term debt | 1,166,497,000 | 1,985,363,000 |
Non-current liabilities | 311,334,000 | 307,083,000 |
Total liabilities | 3,356,226,000 | 3,523,026,000 |
Commitments and contingencies (see Note 11) | ' | ' |
Convertible short-term debt conversion obligation | 159,820,000 | 0 |
Stockholders’ equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 227,000 | 225,000 |
Capital in excess of par value | 4,961,666,000 | 5,040,017,000 |
Retained earnings | 2,150,583,000 | 2,004,089,000 |
Accumulated other comprehensive loss | -40,038,000 | -76,459,000 |
Total stockholders’ equity | 7,072,438,000 | 6,967,872,000 |
Non-controlling interests | -2,113,000 | -2,181,000 |
Total equity | 7,070,325,000 | 6,965,691,000 |
Total liabilities, convertible short-term debt conversion obligation and equity | $10,586,371,000 | $10,488,717,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Revenue | $1,511,945 | $1,340,729 |
Cost of revenue | 741,039 | 799,383 |
Amortization of acquisition-related intangible assets | 19,616 | 9,830 |
Total cost of revenue | 760,655 | 809,213 |
Gross profit | 751,290 | 531,516 |
Operating expenses: | ' | ' |
Research and development | 198,829 | 171,125 |
Sales and marketing | 76,972 | 59,127 |
General and administrative | 48,669 | 45,104 |
Amortization of acquisition-related intangible assets | 1,646 | 2,369 |
Total operating expenses | 326,116 | 277,725 |
Operating income | 425,174 | 253,791 |
Interest income | 13,244 | 12,905 |
Interest (expense) and other income (expense), net | -28,879 | -32,802 |
Total other income (expense), net | -15,635 | -19,897 |
Income before income taxes | 409,539 | 233,894 |
Provision for income taxes | 140,591 | 67,665 |
Net income | $268,948 | $166,229 |
Net income per share: | ' | ' |
Basic | $1.19 | $0.69 |
Diluted | $1.14 | $0.68 |
Shares used in computing net income per share: | ' | ' |
Basic | 225,845 | 242,519 |
Diluted | 234,914 | 245,577 |
Cash dividends declared per share | $0.23 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Net income | $268,948 | $166,229 |
Other comprehensive income (loss), before tax: | ' | ' |
Unrealized holding gain on marketable securities | 1,625 | 6,227 |
Reclassification adjustment for realized (gain) loss on marketable securities included in net income | -570 | 314 |
Net unrealized holding gain on marketable securities | 1,055 | 6,541 |
Foreign currency translation adjustments | 24,482 | -116,179 |
Unrealized holding gain (loss) on derivatives qualifying as cash flow hedges | 13,468 | -30,630 |
Reclassification adjustment for realized loss on derivatives qualifying as cash flow hedges included in net income | 1,564 | 1,441 |
Net unrealized holding gain (loss) on derivatives qualifying as cash flow hedges | 15,032 | -29,189 |
Total other comprehensive income (loss), before tax | 40,569 | -138,827 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 4,148 | -16,258 |
Total other comprehensive income (loss), net of tax | 36,421 | -122,569 |
Comprehensive income | $305,369 | $43,660 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $268,948,000 | $166,229,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred taxes | 6,951,000 | 53,151,000 |
Depreciation | 60,089,000 | 53,017,000 |
Amortization | 72,598,000 | 65,151,000 |
Provision for doubtful accounts | -547,000 | -197,000 |
Share-based compensation expense | 30,030,000 | 21,734,000 |
Excess tax benefit from share-based plans | -17,460,000 | -8,450,000 |
Impairment and other | 0 | -3,173,000 |
Other non-operating | 1,020,000 | 136,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 86,689,000 | 186,726,000 |
Inventory | -42,117,000 | 16,776,000 |
Other assets | 54,547,000 | -20,156,000 |
Accounts payable trade | -36,546,000 | 2,898,000 |
Accounts payable to related parties | 13,572,000 | -37,901,000 |
Other liabilities | -115,695,000 | -22,290,000 |
Total adjustments | 113,131,000 | 307,422,000 |
Net cash provided by operating activities | 382,079,000 | 473,651,000 |
Cash flows from investing activities: | ' | ' |
Purchases of short and long-term marketable securities | -1,266,899,000 | -1,150,347,000 |
Proceeds from sales of short and long-term marketable securities | 1,015,605,000 | 513,354,000 |
Proceeds from maturities of short and long-term marketable securities | 129,620,000 | 293,205,000 |
Acquisition of property and equipment, net | -34,517,000 | -48,352,000 |
Notes receivable issuances to Flash Ventures | -24,352,000 | 0 |
Notes receivable proceeds from Flash Ventures | 24,352,000 | 53,586,000 |
Purchased technology and other assets | -869,000 | -237,000 |
Acquisitions, net of cash acquired | 2,368,000 | -142,000 |
Net cash used in investing activities | -154,692,000 | -338,933,000 |
Cash flows from financing activities: | ' | ' |
Distribution to non-controlling interests | 0 | -87,000 |
Proceeds from employee stock programs | 51,882,000 | 93,075,000 |
Excess tax benefit from share-based plans | 17,460,000 | 8,450,000 |
Dividends paid | -51,560,000 | 0 |
Share repurchases | -114,452,000 | -89,621,000 |
Net cash provided by (used in) financing activities | -96,670,000 | 11,817,000 |
Effect of changes in foreign currency exchange rates on cash | -25,000 | 6,105,000 |
Net increase in cash and cash equivalents | 130,692,000 | 152,640,000 |
Cash and cash equivalents at beginning of period | 986,246,000 | 995,470,000 |
Cash and cash equivalents at end of period | $1,116,938,000 | $1,148,110,000 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Organization and Summary of Significant Accounting Policies | |
Organization | |
These interim Condensed Consolidated Financial Statements are unaudited but reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of SanDisk Corporation and its subsidiaries (the “Company”) as of March 30, 2014, the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 30, 2014 and March 31, 2013, and the Condensed Consolidated Statements of Cash Flows for the three months ended March 30, 2014 and March 31, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s most recent Annual Report on Form 10-K filed with the SEC on February 21, 2014. The results of operations for the three months ended March 30, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year. | |
Basis of Presentation. The Company’s fiscal year ends on the Sunday closest to December 31 and its fiscal quarters consist of 13 weeks. The first quarters of fiscal years 2014 and 2013 ended on March 30, 2014 and March 31, 2013, respectively. For accounting and disclosure purposes, the exchange rates of 102.69, 104.94 and 94.11 at March 30, 2014, December 29, 2013 and March 31, 2013, respectively, were used to convert Japanese yen to U.S. dollars. Throughout the Notes to Condensed Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders. Cash provided by operating activities and Cash used in financing activities for the three months ended March 30, 2014 included a reclassification of $24.4 million from the amounts disclosed in the Company's Preliminary Condensed Consolidated Statements of Cash Flows included in the Form 8-K furnished on April 16, 2014 to reflect cash spent to settle employee tax withholding obligations due upon the vesting of restricted stock units (“RSUs”). | |
Organization and Nature of Operations. The Company was incorporated in the State of Delaware on June 1, 1988. The Company designs, develops, markets and manufactures data storage solutions in a variety of form factors using its flash memory, controller and firmware technologies. The Company operates in one segment, flash memory storage products. | |
Principles of Consolidation. The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the minority shareholders’ proportionate share of the net assets and results of operations of the Company’s majority-owned subsidiaries. The Condensed Consolidated Financial Statements also include the results of companies acquired by the Company from the date of each acquisition. | |
Use of Estimates. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to customer programs and incentives, intellectual property claims, product returns, allowance for doubtful accounts, inventories and inventory reserves, valuation and impairments of marketable securities and investments, valuation and impairments of goodwill and long-lived assets, income taxes, warranty obligations, restructurings, contingencies, share‑based compensation and litigation. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results could materially differ from these estimates. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 30, 2014 | ||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | ||||||||||||||||||||||||||||||||
The Company’s total cash, cash equivalents and marketable securities was as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, | December 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,116,938 | $ | 986,246 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,692,801 | 1,919,611 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 3,508,081 | 3,179,471 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 6,317,820 | $ | 6,085,328 | ||||||||||||||||||||||||||||
For certain of the Company’s financial instruments, including cash held in banks, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Money market funds | $ | 884,279 | $ | — | $ | — | $ | 884,279 | $ | 760,363 | $ | — | $ | — | $ | 760,363 | ||||||||||||||||
Fixed income securities | 142,886 | 5,107,959 | — | 5,250,845 | 160,194 | 4,985,059 | — | 5,145,253 | ||||||||||||||||||||||||
Derivative assets | — | 25 | — | 25 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 1,027,165 | $ | 5,107,984 | $ | — | $ | 6,135,149 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Company’s Condensed Consolidated Balance Sheets as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash equivalents(1) | $ | 884,279 | $ | 49,963 | $ | — | $ | 934,242 | $ | 773,435 | $ | 33,099 | $ | — | $ | 806,534 | ||||||||||||||||
Short-term marketable securities | 22,093 | 1,670,708 | — | 1,692,801 | 15,090 | 1,904,521 | — | 1,919,611 | ||||||||||||||||||||||||
Long-term marketable securities | 120,793 | 3,387,288 | — | 3,508,081 | 132,032 | 3,047,439 | — | 3,179,471 | ||||||||||||||||||||||||
Other current assets | — | 25 | — | 25 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 1,027,165 | $ | 5,107,984 | $ | — | $ | 6,135,149 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,741 | $ | — | $ | 45,741 | ||||||||||||||||
Non-current liabilities | — | — | — | — | — | 118 | — | 118 | ||||||||||||||||||||||||
Total financial liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
(1) | Cash equivalents exclude cash of $182.7 million and $179.7 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of March 30, 2014 and December 29, 2013, respectively. | |||||||||||||||||||||||||||||||
During the three months ended March 30, 2014, the Company had no transfers of financial assets or liabilities between Level 1 and Level 2. As of March 30, 2014 and December 29, 2013, the Company had no financial assets or liabilities categorized as Level 3 and had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. | ||||||||||||||||||||||||||||||||
Available-for-Sale Investments. Available-for-sale investments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 143,141 | $ | 6 | $ | (261 | ) | $ | 142,886 | $ | 160,598 | $ | 21 | $ | (424 | ) | $ | 160,195 | ||||||||||||||
U.S. government-sponsored agency securities | — | — | — | — | 8,112 | 10 | (1 | ) | 8,121 | |||||||||||||||||||||||
International government securities | 55,090 | 2 | (200 | ) | 54,892 | 38,492 | 1 | (224 | ) | 38,269 | ||||||||||||||||||||||
Corporate notes and bonds | 948,512 | 1,660 | (928 | ) | 949,244 | 864,331 | 1,504 | (1,565 | ) | 864,270 | ||||||||||||||||||||||
Asset-backed securities | 216,385 | 137 | (239 | ) | 216,283 | 226,620 | 114 | (170 | ) | 226,564 | ||||||||||||||||||||||
Mortgage-backed securities | 83,951 | 107 | (277 | ) | 83,781 | 86,542 | 18 | (554 | ) | 86,006 | ||||||||||||||||||||||
Municipal notes and bonds | 3,786,291 | 18,764 | (1,296 | ) | 3,803,759 | 3,744,138 | 18,931 | (1,241 | ) | 3,761,828 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 5,233,370 | $ | 20,676 | $ | (3,201 | ) | $ | 5,250,845 | $ | 5,128,833 | $ | 20,599 | $ | (4,179 | ) | $ | 5,145,253 | ||||||||||||||
The fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument, and the length of time that individual securities have been in a continuous unrealized loss position as of March 30, 2014, are summarized in the following table (in thousands). Available-for-sale securities that were in an unrealized gain position have been excluded from the table. | ||||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 126,006 | $ | (261 | ) | $ | — | $ | — | |||||||||||||||||||||||
International government securities | 47,879 | (200 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 414,858 | (928 | ) | — | — | |||||||||||||||||||||||||||
Asset-backed securities | 99,496 | (239 | ) | — | — | |||||||||||||||||||||||||||
Mortgage-backed securities | 46,368 | (273 | ) | 294 | (4 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 390,305 | (1,296 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 1,124,912 | $ | (3,197 | ) | $ | 294 | $ | (4 | ) | ||||||||||||||||||||||
The gross unrealized loss related to U.S. Treasury securities, international government securities, corporate and municipal notes and bonds, and asset-backed and mortgage-backed securities was due primarily to changes in interest rates. The gross unrealized loss on all available-for-sale fixed income securities at March 30, 2014 was considered temporary in nature. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold an investment for a period of time sufficient to allow for any anticipated recovery in market value. For debt security investments, the Company considered additional factors including the Company’s intent to sell the investments or whether it is “more likely than not” the Company will be required to sell the investments before the recovery of its amortized cost. | ||||||||||||||||||||||||||||||||
The following table shows the gross realized gains and (losses) on sales of available-for-sale securities (in thousands). | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
March 30, | March 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross realized gains | $ | 1,013 | $ | 718 | ||||||||||||||||||||||||||||
Gross realized losses | (443 | ) | (1,032 | ) | ||||||||||||||||||||||||||||
Fixed income securities by contractual maturity as of March 30, 2014 are shown below (in thousands). Actual maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations or the Company has the option to demand payment. | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,286,856 | $ | 1,290,919 | ||||||||||||||||||||||||||||
After one year through five years | 3,655,004 | 3,668,402 | ||||||||||||||||||||||||||||||
After five years through ten years | 79,657 | 79,670 | ||||||||||||||||||||||||||||||
After ten years | 211,853 | 211,854 | ||||||||||||||||||||||||||||||
Total | $ | 5,233,370 | $ | 5,250,845 | ||||||||||||||||||||||||||||
For those financial instruments where the carrying amounts differ from fair value, the following table represents the related carrying values and fair values, which are based on quoted market prices (in thousands). The 1.5% Convertible Senior Notes due 2017 were categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 were categorized as Level 2 as of both March 30, 2014 and December 29, 2013. See Note 6, “Financing Arrangements,” regarding details of each convertible note presented. | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 840,180 | $ | 1,636,760 | $ | 829,792 | $ | 1,467,160 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,166,497 | 1,648,335 | 1,155,571 | 1,480,290 | ||||||||||||||||||||||||||||
Total | $ | 2,006,677 | $ | 3,285,095 | $ | 1,985,363 | $ | 2,947,450 | ||||||||||||||||||||||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | |||||||||||||||
Mar. 30, 2014 | ||||||||||||||||
Derivative Instruments, Gain (Loss) | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||
Derivatives and Hedging Activities | ||||||||||||||||
The Company uses derivative instruments primarily to manage exposures to foreign currency. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with changes in foreign currency. The program is not designated for trading or speculative purposes. The Company’s derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored by the Company on an ongoing basis. | ||||||||||||||||
The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value and provides qualitative disclosures about objectives and strategies for using derivative instruments, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. Changes in fair value (i.e., gains or losses) of the derivatives are recorded as cost of revenue or other income (expense), or as other comprehensive income (“OCI”). Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of set-off associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The Company does not offset or net the fair value amounts of derivative instruments in its Condensed Consolidated Balance Sheets and separately discloses the gross fair value amounts of the derivative instruments as either assets or liabilities. | ||||||||||||||||
Cash Flow Hedges. The Company uses foreign exchange forward contracts designated as cash flow hedges to hedge a portion of future forecasted wafer purchases and research and development (“R&D”) expenses in Japanese yen. The gain or loss on the effective portion of a cash flow hedge is initially reported as a component of accumulated OCI (“AOCI”) and subsequently reclassified into cost of revenue or R&D expense in the same period or periods in which the cost of revenue or R&D expenses are recognized, or reclassified into other income (expense) if the hedged transaction becomes probable of not occurring. Any gain or loss after a hedge is no longer designated, because it is no longer probable of occurring or it is related to an ineffective portion of a cash flow hedge, as well as any amount excluded from the Company’s hedge effectiveness, is recognized immediately as other income (expense). As of March 30, 2014, the notional amount and unrealized loss on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow hedges are shown in both Japanese yen (in billions) and U.S. dollar (in thousands), based upon the exchange rate as of March 30, 2014, as follows: | ||||||||||||||||
Notional Amount | Unrealized Loss | |||||||||||||||
(Japanese yen) | (U.S. dollar) | (U.S. dollar) | ||||||||||||||
Foreign exchange forward contracts | ¥ | 47 | $ | 458,513 | $ | (15,990 | ) | |||||||||
As of March 30, 2014, the maturities of these contracts were 12 months or less. | ||||||||||||||||
Other Derivatives. Other derivatives that are non-designated consist primarily of foreign exchange forward contracts to minimize the risk associated with the foreign exchange effects of revaluing monetary assets and liabilities. Monetary assets and liabilities denominated in foreign currencies and the associated outstanding foreign exchange forward contracts were marked-to-market at March 30, 2014 with realized and unrealized gains and losses included in other income (expense). As of March 30, 2014, the Company had foreign exchange forward contracts hedging exposures in European euros, British pounds and Japanese yen. Foreign exchange forward contracts were outstanding to buy and sell U.S. dollar-equivalents of approximately $161.4 million and $21.5 million in foreign currencies, respectively, based upon the exchange rates at March 30, 2014. | ||||||||||||||||
The amounts in the tables below include fair value adjustments related to the Company’s own credit risk and counterparty credit risk. | ||||||||||||||||
Fair Value of Derivative Contracts. Gross fair value of derivative contracts was as follows (in thousands): | ||||||||||||||||
Derivative assets reported in | ||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||
March 30, | December 29, | March 30, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts not designated | $ | 25 | $ | 777 | $ | — | $ | — | ||||||||
Derivative liabilities reported in | ||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||
March 30, | December 29, | March 30, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts designated | $ | 15,990 | $ | 38,375 | $ | — | $ | 118 | ||||||||
Foreign exchange forward contracts not designated | 1,139 | 7,366 | — | — | ||||||||||||
Total derivatives | $ | 17,129 | $ | 45,741 | $ | — | $ | 118 | ||||||||
As of March 30, 2014, the potential effect of rights of set-off associated with the above foreign exchange forward contracts would result in a net derivative liabilities balance of $17.1 million. As of December 29, 2013, the potential effect of rights of set-off would result in a net derivative liabilities balance of $45.2 million and an immaterial net derivative asset balance. | ||||||||||||||||
Foreign Exchange Forward Contracts and Equity Market Risk Contracts Designated as Cash Flow Hedges. The impact of the effective portion of designated cash flow derivative contracts on the Company’s results of operations was as follows (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
Amount of gain (loss) | Amount of loss reclassified | |||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||
March 30, | March 31, | March 30, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts | $ | 13,468 | $ | (30,630 | ) | $ | (1,564 | ) | $ | (1,441 | ) | |||||
Foreign exchange forward contracts designated as cash flow hedges relate to forecasted wafer purchases and R&D expenses in Japanese yen. Gains and losses associated with foreign exchange forward contracts designated as cash flow hedges are expected to be recorded in cost of revenue for wafer purchases or R&D expense when reclassified out of AOCI. Losses from the equity market risk contract were recorded in other income (expense) when reclassified out of AOCI. The Company expects to realize the majority of the AOCI balance related to foreign exchange contracts within the next twelve months. | ||||||||||||||||
The following table includes the ineffective portion of designated cash flow derivative contracts and the forward points excluded for the purposes of cash flow hedging designation recognized in other income (expense) (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
March 30, | March 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Foreign exchange forward contracts | $ | (458 | ) | $ | (307 | ) | ||||||||||
Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations. The effect of non-designated derivative contracts on the Company’s results of operations recognized in other income (expense) was as follows (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
March 30, | March 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Gain on foreign exchange forward contracts including forward point income | $ | 2,186 | $ | 9,659 | ||||||||||||
Loss from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | (1,743 | ) | (11,383 | ) |
Balance_Sheet_Information
Balance Sheet Information | 3 Months Ended | ||||||||||
Mar. 30, 2014 | |||||||||||
Balance Sheet Information [Abstract] | ' | ||||||||||
Balance Sheet Information | ' | ||||||||||
Balance Sheet Information | |||||||||||
Accounts Receivable, net. Accounts receivable, net was as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accounts receivable | $ | 783,573 | $ | 904,551 | |||||||
Allowance for doubtful accounts | (7,646 | ) | (8,274 | ) | |||||||
Price protection, promotions and other activities | (179,258 | ) | (213,468 | ) | |||||||
Total accounts receivable, net | $ | 596,669 | $ | 682,809 | |||||||
Inventory. Inventory was as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Raw material | $ | 467,721 | $ | 440,570 | |||||||
Work-in-process | 118,249 | 102,543 | |||||||||
Finished goods | 213,913 | 213,862 | |||||||||
Total inventory | $ | 799,883 | $ | 756,975 | |||||||
Other Current Assets. Other current assets were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Income tax receivables | $ | 70,200 | $ | 7,976 | |||||||
Other tax-related receivables | 55,124 | 62,784 | |||||||||
Other non-trade receivables | 15,425 | 37,368 | |||||||||
Prepayment to Flash Forward Ltd. | — | 5,144 | |||||||||
Derivative contract receivables | 25 | 777 | |||||||||
Prepaid expenses | 12,715 | 12,630 | |||||||||
Convertible note issuance costs | 6,355 | — | |||||||||
Other current assets | 17,688 | 40,206 | |||||||||
Total other current assets | $ | 177,532 | $ | 166,885 | |||||||
Notes Receivable and Investments in Flash Ventures. Notes receivable and investments in Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. (collectively referred to as “Flash Ventures”) were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Notes receivable, Flash Partners Ltd. | $ | 77,904 | $ | 100,057 | |||||||
Notes receivable, Flash Alliance Ltd. | 355,439 | 323,995 | |||||||||
Notes receivable, Flash Forward Ltd. | 172,850 | 169,144 | |||||||||
Investment in Flash Partners Ltd. | 194,222 | 190,694 | |||||||||
Investment in Flash Alliance Ltd. | 290,776 | 283,999 | |||||||||
Investment in Flash Forward Ltd. | 68,073 | 66,731 | |||||||||
Total notes receivable and investments in Flash Ventures | $ | 1,159,264 | $ | 1,134,620 | |||||||
Equity-method investments and the Company’s maximum loss exposure related to Flash Ventures are discussed further in Note 11, “Commitments, Contingencies and Guarantees – Flash Ventures” and Note 12, “Related Parties and Strategic Investments.” | |||||||||||
The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in other income (expense). The Company makes or will make long-term loans to Flash Ventures to fund new process technologies and additional wafer capacities. The Company aggregates its Flash Ventures notes receivable into one class of financing receivables due to the similar ownership interest and common structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no loan impairments were recorded. | |||||||||||
Other Non-current Assets. Other non-current assets were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Prepaid tax on intercompany transactions | $ | 36,654 | $ | 37,747 | |||||||
Convertible note issuance costs | 13,283 | 20,612 | |||||||||
Long-term prepaid income tax | 3,168 | 66,176 | |||||||||
Other non-current assets | 42,225 | 42,895 | |||||||||
Total other non-current assets | $ | 95,330 | $ | 167,430 | |||||||
Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accrued payroll and related expenses | $ | 155,434 | $ | 227,779 | |||||||
Derivative contract payables | 17,129 | 45,741 | |||||||||
Taxes payable | 12,585 | 59,618 | |||||||||
Other accrued liabilities | 163,978 | 176,594 | |||||||||
Total other current accrued liabilities | $ | 349,126 | $ | 509,732 | |||||||
Non-current Liabilities. Non-current liabilities were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Income tax liabilities | 206,888 | 205,266 | |||||||||
Deferred credits on intercompany transactions | 11,874 | 15,065 | |||||||||
Deferred tax liabilities | $ | 4,336 | $ | 3,482 | |||||||
Other non-current liabilities | 88,236 | 83,270 | |||||||||
Total non-current liabilities | $ | 311,334 | $ | 307,083 | |||||||
Warranties. The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the accompanying Consolidated Balance Sheets, and the activity was as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Balance, beginning of period | $ | 43,624 | $ | 38,787 | |||||||
Additions and adjustments to cost of revenue | 7,431 | 4,878 | |||||||||
Usage | (3,490 | ) | (4,693 | ) | |||||||
Balance, end of period | $ | 47,565 | $ | 38,972 | |||||||
The majority of the Company’s products have a warranty of less than three years, with a small number of products having a warranty ranging up to ten years or more. For warranties ten years or greater, including lifetime warranties, the Company uses the estimated useful life of the product to calculate the warranty exposure. A provision for the estimated future cost related to warranty expense is recorded at the time of customer invoice. The Company’s warranty liability is affected by customer and consumer returns, product failures, number of units sold and repair or replacement costs incurred. Should actual product failure rates, or repair or replacement costs, differ from the Company’s estimates, increases or decreases to its warranty liability would be required. | |||||||||||
Comprehensive Income (Loss) Note | ' | ||||||||||
Accumulated Other Comprehensive Income (Loss). AOCI presented in the accompanying Condensed Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||
Available-for-sale investments | $ | 11,157 | $ | 10,479 | |||||||
Foreign currency translation | (26,729 | ) | (47,440 | ) | |||||||
Hedging activities | (24,466 | ) | (39,498 | ) | |||||||
Total accumulated other comprehensive loss | $ | (40,038 | ) | $ | (76,459 | ) | |||||
The amount of income tax expense (benefit) allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Available-for-sale investments | $ | 377 | $ | 2,053 | |||||||
Foreign currency translation | 3,771 | (18,311 | ) | ||||||||
Total income tax expense (benefit) allocated | $ | 4,148 | $ | (16,258 | ) | ||||||
The significant amounts reclassified out of each component of AOCI were as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
AOCI Component | March 30, | March 31, | Statement of Operations | ||||||||
2014 | 2013 | Line Item | |||||||||
Unrealized gain (loss) on available-for-sale investments | $ | 570 | $ | (314 | ) | Interest (expense) and other income (expense), net | |||||
Tax impact | (195 | ) | (175 | ) | Provision for income taxes | ||||||
Unrealized gain (loss) on available-for-sale investments, net of tax | 375 | (489 | ) | ||||||||
Unrealized holding loss on derivatives: | |||||||||||
Foreign exchange contracts | (1,361 | ) | (1,441 | ) | Cost of revenue | ||||||
Foreign exchange contracts | (203 | ) | — | Research and development | |||||||
Loss on cash flow hedging activities | (1,564 | ) | (1,441 | ) | |||||||
Total reclassifications for the period, net of tax | $ | (1,189 | ) | $ | (1,930 | ) |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
Goodwill. Goodwill balances and activity during the three months ended March 30, 2014 were as follows (in thousands): | ||||||||||||||||
Carrying Amount | ||||||||||||||||
Balance as of December 29, 2013 | $ | 318,111 | ||||||||||||||
Adjustment | (181 | ) | ||||||||||||||
Balance as of March 30, 2014 | $ | 317,930 | ||||||||||||||
Goodwill decreased by $0.2 million during the three months ended March 30, 2014 due primarily to the resolution of a working capital matter during the measurement period for an acquisition from fiscal year 2013. | ||||||||||||||||
Intangible Assets. Intangible asset balances were as follows (in thousands): | ||||||||||||||||
March 30, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
Developed product technology | $ | 292,769 | $ | (129,520 | ) | $ | 163,249 | |||||||||
Customer relationships | 7,600 | (2,326 | ) | 5,274 | ||||||||||||
Trademarks | 8,900 | (1,700 | ) | 7,200 | ||||||||||||
Covenants not to compete | 2,400 | (2,400 | ) | — | ||||||||||||
Acquisition-related intangible assets | 311,669 | (135,946 | ) | 175,723 | ||||||||||||
Technology licenses and patents | 109,600 | (70,524 | ) | 39,076 | ||||||||||||
Total intangible assets subject to amortization | 421,269 | (206,470 | ) | 214,799 | ||||||||||||
Acquired in-process research and development (“IPR&D”) | 6,300 | — | 6,300 | |||||||||||||
Total intangible assets | $ | 427,569 | $ | (206,470 | ) | $ | 221,099 | |||||||||
December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
Developed product technology | $ | 348,385 | $ | (121,304 | ) | $ | (44,216 | ) | $ | 182,865 | ||||||
Customer relationships | 20,650 | (14,426 | ) | — | 6,224 | |||||||||||
Trademarks | 14,200 | (3,634 | ) | (2,812 | ) | 7,754 | ||||||||||
Covenants not to compete | 3,100 | (2,959 | ) | — | 141 | |||||||||||
Acquisition-related intangible assets | 386,335 | (142,323 | ) | (47,028 | ) | 196,984 | ||||||||||
Technology licenses and patents | 133,909 | (89,289 | ) | — | 44,620 | |||||||||||
Total intangible assets subject to amortization | 520,244 | (231,612 | ) | (47,028 | ) | 241,604 | ||||||||||
Acquired IPR&D | 42,500 | — | (36,200 | ) | 6,300 | |||||||||||
Total intangible assets | $ | 562,744 | $ | (231,612 | ) | $ | (83,228 | ) | $ | 247,904 | ||||||
The annual expected amortization expense of intangible assets subject to amortization as of March 30, 2014, is as follows (in thousands): | ||||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
Fiscal year: | ||||||||||||||||
2014 (remaining 9 months) | $ | 62,409 | $ | 15,687 | ||||||||||||
2015 | 48,114 | 20,056 | ||||||||||||||
2016 | 40,544 | 3,333 | ||||||||||||||
2017 | 24,656 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 175,723 | $ | 39,076 | ||||||||||||
Financing_Arrangements
Financing Arrangements | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ||||||||
The following table reflects the carrying value of the Company’s convertible debt (in thousands): | ||||||||
March 30, | December 29, | |||||||
2014 | 2013 | |||||||
1.5% Notes due 2017 | $ | 1,000,000 | $ | 1,000,000 | ||||
Less: Unamortized bond discount | (159,820 | ) | (170,208 | ) | ||||
Net carrying amount of 1.5% Notes due 2017 | 840,180 | 829,792 | ||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||
Less: Unamortized bond discount | (333,503 | ) | (344,429 | ) | ||||
Net carrying amount of 0.5% Notes due 2020 | 1,166,497 | 1,155,571 | ||||||
Total convertible debt | 2,006,677 | 1,985,363 | ||||||
Less: Convertible short-term debt | (840,180 | ) | — | |||||
Convertible long-term debt | $ | 1,166,497 | $ | 1,985,363 | ||||
1% Convertible Senior Notes Due 2013. On May 15, 2013, the maturity date for the 1% Convertible Senior Notes due May 15, 2013 (“1% Notes due 2013”), the Company settled the 1% Notes due 2013 through an all-cash transaction for principal and accrued interest of $928.1 million and $4.6 million, respectively. As of the date of the redemption, the Company had no further obligations related to the 1% Notes due 2013. In connection with the maturity of the 1% Notes due 2013, the associated convertible bond hedge and warrant transactions also terminated, with no shares purchased under the convertible bond hedge agreement and no exercises of the warrants. | ||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1% Notes due 2013 (in thousands): | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2013 | ||||||||
Contractual interest coupon | $ | 2,319 | ||||||
Amortization of bond issuance costs | 696 | |||||||
Amortization of bond discount | 14,058 | |||||||
Total interest cost recognized | $ | 17,073 | ||||||
The effective interest rate on the liability component of the 1% Notes due 2013 was 7.4% for the three months ended March 31, 2013. | ||||||||
1.5% Convertible Senior Notes Due 2017. In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Convertible Senior Notes due August 15, 2017 (“1.5% Notes due 2017”) at par. The 1.5% Notes due 2017 may be converted, under certain circumstances described below, based on an initial conversion rate of 19.0931 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $52.37 per share). The 1.5% Notes due 2017 contain provisions where the conversion rate and conversion price are adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. Accordingly, as of March 30, 2014, the conversion rate was adjusted for dividends paid to date to 19.2935 shares of common stock per $1,000 principal amount of notes (which represents a conversion price of approximately $51.83 per share). The net proceeds to the Company from the sale of the 1.5% Notes due 2017 were $981.0 million. | ||||||||
The Company separately accounts for the liability and equity components of the 1.5% Notes due 2017. The principal amount of the liability component of $706.0 million as of the date of issuance was recognized at the present value of its cash flows using a discount rate of 6.85%, the Company’s borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. As of March 30, 2014, after recognition of $159.8 million in Convertible short-term debt conversion obligation, the carrying value of the equity component was $134.2 million. | ||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1.5% Notes due 2017 (in thousands): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Contractual interest coupon | $ | 3,750 | $ | 3,750 | ||||
Amortization of bond issuance costs | 667 | 667 | ||||||
Amortization of bond discount | 10,192 | 9,519 | ||||||
Total interest cost recognized | $ | 14,609 | $ | 13,936 | ||||
The effective interest rate on the liability component of the 1.5% Notes due 2017 was 6.85% for each of the three months ended March 30, 2014 and March 31, 2013. The remaining unamortized bond discount of $159.8 million as of March 30, 2014 will be amortized over the remaining life of the 1.5% Notes due 2017, which is approximately 3.4 years. | ||||||||
The conversion provision of the 1.5% Notes due 2017 allows the holders the option to convert their notes during the following calendar quarter if the Company’s stock price exceeds 130% of the conversion price of the 1.5% Notes due 2017 for at least 20 trading days during the last 30 consecutive trading days of the current calendar quarter. The conversion threshold was met during the calendar quarter ended March 31, 2014 and the 1.5% Notes due 2017 became convertible at the holders’ option beginning on April 1, 2014 and ending June 30, 2014. As such, the carrying value of the 1.5% Notes due 2017 was classified as a current liability and the difference between the principal amount payable in cash upon conversion and the carrying value of the 1.5% Notes due 2017 was reclassified from Stockholders’ equity to Convertible short-term debt conversion obligation on the Company’s Condensed Consolidated Balance Sheet as of March 30, 2014, and will remain so while the notes are convertible. The determination of whether or not the 1.5% Notes due 2017 are convertible must continue to be performed on a calendar-quarter basis. Consequently, the 1.5% Notes due 2017 may be reclassified as long-term debt if the conversion threshold is not met in future quarters. Upon conversion of any of the 1.5% Notes due 2017, the Company will deliver cash up to the principal amount of the 1.5% Notes due 2017 and shares of the Company’s common stock with respect to any conversion value greater than the principal amount of the 1.5% Notes due 2017. As of March 30, 2014, no 1.5% Notes due 2017 had been converted. Based on the closing price of the Company’s common stock of $80.61 on March 30, 2014, if all of the 1.5% Notes due 2017 were converted, it would result in 6.9 million shares being distributed to the holders. | ||||||||
Concurrent with the issuance of the 1.5% Notes due 2017, the Company sold warrants to acquire up to approximately 19.1 million shares of its common stock at an exercise price of $73.3250 per share. The 1.5% Notes due 2017 contain provisions whereby the number of shares to be acquired under the warrants and the strike price are adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. After adjusting for the dividends paid through March 30, 2014, holders of the warrants may acquire up to approximately 19.3 million shares of the Company’s common stock at a strike price of $72.5633 per share. The warrants mature on 40 different dates from November 13, 2017 through January 10, 2018 and are exercisable at the maturity date. At each maturity date, the Company may, at its option, elect to settle the warrants on a net share basis. As of March 30, 2014, the warrants had not been exercised and remain outstanding. In addition, concurrent with the issuance of the 1.5% Notes due 2017, the Company entered into a convertible bond hedge transaction in which counterparties initially agreed to sell to the Company up to approximately 19.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the 1.5% Notes due 2017 in full, at a price of $52.37 per share. The 1.5% Notes due 2017 contain provisions where the number of shares to be sold under the convertible bond hedge transaction and the conversion price will be adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. After adjusting for the dividends paid through March 30, 2014, the counterparties may acquire up to approximately 19.3 million shares of the Company’s common stock, which is the number of shares issuable upon conversion of the 1.5% Notes due 2017 in full, at a price of $51.83 per share. This convertible bond hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 1.5% Notes due 2017 or the first day that none of the 1.5% Notes due 2017 remain outstanding due to conversion or otherwise. Settlement of the convertible bond hedge in net shares, based on the number of shares issuable upon conversion of the 1.5% Notes due 2017, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 1.5% Notes due 2017. As of March 30, 2014, the Company had not purchased any shares under this convertible bond hedge agreement. | ||||||||
0.5% Convertible Senior Notes Due 2020. In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Convertible Senior Notes due October 15, 2020 (the “0.5% Notes due 2020”) at par. The 0.5% Notes due 2020 may be converted, under certain circumstances described below, based on an initial conversion rate of 10.8470 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $92.19 per share). The 0.5% Notes due 2020 contain provisions where the conversion rate and conversion price are adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. As of March 30, 2014, no adjustment has been made to the conversion rate or the conversion price. The net proceeds to the Company from the sale of the 0.5% Notes due 2020 were approximately $1.48 billion. | ||||||||
The Company separately accounts for the liability and equity components of the 0.5% Notes due 2020. The principal amount of the liability component of $1.15 billion as of the date of issuance was recognized at the present value of its cash flows using a discount rate of 4.43%, the Company’s borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. As of March 30, 2014, the carrying value of the equity component of $352.0 million was unchanged from the date of issuance. | ||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 0.5% Notes due 2020 (in thousands): | ||||||||
Three months ended | ||||||||
March 30, | ||||||||
2014 | ||||||||
Contractual interest coupon | $ | 1,875 | ||||||
Amortization of bond issuance costs | 659 | |||||||
Amortization of bond discount | 10,771 | |||||||
Total interest cost recognized | $ | 13,305 | ||||||
The effective interest rate on the liability component of the 0.5% Notes due 2020 was 4.43% for the three months ended March 30, 2014. The remaining unamortized bond discount of $333.5 million as of March 30, 2014 will be amortized over the remaining life of the 0.5% Notes due 2020, which is approximately 6.5 years. | ||||||||
Concurrent with the issuance of the 0.5% Notes due 2020, the Company sold warrants to acquire up to approximately 16.3 million shares of its common stock at an exercise price of $122.9220 per share. The 0.5% Notes due 2020 contain provisions whereby the number of shares to be acquired under the warrants and the strike price are adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. The warrants mature on 40 different dates from January 13, 2021 through March 11, 2021 and are exercisable at the maturity date. At each maturity date, the Company may, at its option, elect to settle the warrants on a net share basis. As of March 30, 2014, the warrants had not been exercised and remain outstanding. In addition, concurrent with the issuance of the 0.5% Notes due 2020, the Company entered into a convertible bond hedge transaction in which counterparties agreed to sell to the Company up to approximately 16.3 million shares of the Company’s common stock, which is the number of shares issuable upon conversion of the 0.5% Notes due 2020 in full, at a price of $92.19 per share. The 0.5% Notes due 2020 contain provisions where the number of shares to be sold under the convertible bond hedge transaction and the conversion price will be adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. This convertible bond hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 0.5% Notes due 2020 or the first day that none of the 0.5% Notes due 2020 remain outstanding due to conversion or otherwise. Settlement of the convertible bond hedge in net shares, based on the number of shares issuable upon conversion of the 0.5% Notes due 2020, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 0.5% Notes due 2020. As of March 30, 2014, the Company had not purchased any shares under this convertible bond hedge agreement. |
Share_Repurchases
Share Repurchases | 3 Months Ended |
Mar. 30, 2014 | |
Share Repurchases [Abstract] | ' |
Treasury Stock [Text Block] | ' |
Share Repurchases | |
In July 2013, the Company’s Board of Directors authorized a program to repurchase up to $2.50 billion of the Company’s common stock. As of March 30, 2014, the remaining authorization for share repurchases under the program was $1.84 billion. The share repurchase program will remain in effect until the available funds have been expended or the Company’s Board of Directors terminates the program. The Company’s prior share repurchase program, which was initially announced in October 2011 and authorized the repurchase over a five-year period of up to $1.25 billion, as increased by the Company’s Board of Directors in December 2012, was completed in the third quarter of fiscal year 2013. | |
Under the Company’s share repurchase program, shares repurchased are recorded as a reduction to Capital in excess of par value and Retained earnings in the Company’s Condensed Consolidated Balance Sheets. The repurchases will be made from time to time in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 of the Securities Exchange Act, or in structured share repurchase programs, and may be made in one or more repurchases, in compliance with Rule 10b-18 of the Securities Exchange Act. Share repurchases are subject to market conditions, applicable legal requirements and other factors. The share repurchase program does not obligate the Company to acquire any specific number of common stock, or any shares at all, and may be suspended at any time at the Company’s discretion. As part of the share repurchase program, the Company has entered into, and may continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that the Company make an up-front payment in exchange for the right to receive a fixed number of shares of its common stock upon execution of the agreement, with a potential increase or decrease in the number of shares at the end of the term of the agreement. | |
In the third quarter of fiscal year 2013, under the Company’s share repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to purchase $1.0 billion of the Company’s common stock. In exchange for an up-front payment of $1.0 billion, the financial institution committed to deliver shares during the ASR’s purchase period, which ended on April 8, 2014. During the third quarter of fiscal year 2013, 14.5 million shares were initially delivered to the Company under this ASR agreement. The up-front payment of $1.0 billion was accounted for as a reduction to Stockholders’ equity in the Company’s Condensed Consolidated Balance Sheet. In April 2014, the ASR was settled and the Company received an additional 0.6 million shares from the financial institution for a total of 15.1 million shares, which resulted in a variable weighted-average price of $66.07 per share. | |
The Company reflected the ASR as a repurchase of common stock for purposes of calculating earnings per share and as a forward contract indexed to its own common stock. The forward contract met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument. | |
Under the Company’s share repurchase program, since the fourth quarter of fiscal year 2011 through March 30, 2014, the Company spent an aggregate $1.91 billion to repurchase 31.7 million shares, and an additional 0.6 million shares were received in April 2014 upon settlement of the ASR. Included in the aggregate repurchase activity are 1.3 million shares that were repurchased for an aggregate amount of $90.0 million during the three months ended March 30, 2014. In addition to repurchases under the Company’s share repurchase program, during the three months ended March 30, 2014, the Company spent $24.4 million to settle employee tax withholding obligations due upon the vesting of RSUs and withheld an equivalent value of shares from the employees’ vesting RSUs. |
Stockholders_Equity_and_ShareB
Stockholders Equity and Share-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-Based Compensation | ' | ||||||||||||
Share-based Benefit Plans | |||||||||||||
Share-based Plans. The Company has a share-based compensation program that provides its Board of Directors with broad discretion in creating equity incentives for employees, officers, non-employee board members and non-employee service providers. This program includes incentive and non-statutory stock option awards, stock appreciation rights (“SARs”), RSUs, performance-based cash bonus awards for Section 16 executive officers and an automatic grant program for non-employee board members pursuant to which such individuals will receive option grants or other stock awards at designated intervals over their period of board service. These awards are granted under various programs, all of which are stockholder approved. Stock option awards generally vest as follows: 25% of the shares vest on the first anniversary of the vesting commencement date and the remaining 75% vest proportionately each quarter over the next 12 quarters of continued service. RSUs generally vest in equal annual installments over a four-year period. Initial grants to non-employee board members under the automatic grant program vest in equal annual installments over a four-year period and subsequent grants to non-employee board members generally vest over a one-year period in accordance with the specific vesting provisions set forth in that program. Additionally, the Company has an Employee Stock Purchase Plan (“ESPP”) that allows employees to purchase shares of common stock at 85% of the fair market value at the subscription date or the date of purchase, whichever is lower. | |||||||||||||
Valuation Assumptions | |||||||||||||
Option Plan Shares. The fair value of the Company’s stock options granted, excluding unvested stock options assumed through acquisitions, was estimated using the following weighted-average assumptions: | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Dividend yield | 1.25% – 1.44% | —% | |||||||||||
Expected volatility | 0.32 | 0.38 | |||||||||||
Risk-free interest rate | 1.22% | 0.67% | |||||||||||
Expected term | 4.4 years | 4.4 years | |||||||||||
Estimated annual forfeiture rate | 8.51% | 8.59% | |||||||||||
Weighted-average fair value at grant date | $18.53 | $16.46 | |||||||||||
RSU Plan Shares. The fair value of the Company’s RSU awards granted was valued using the closing price of the Company’s stock price on the date of grant. | |||||||||||||
Employee Stock Purchase Plan Shares. The fair value of the Company’s ESPP shares issued to employees was estimated using the following weighted-average assumptions: | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Dividend yield | 1.65% | —% | |||||||||||
Expected volatility | 0.31 | 0.33 | |||||||||||
Risk-free interest rate | 0.08% | 0.13% | |||||||||||
Expected term | ½ year | ½ year | |||||||||||
Weighted-average fair value at purchase date | $17.25 | $12.54 | |||||||||||
Share-based Compensation Plan Activities | |||||||||||||
Stock Options and SARs. A summary of stock option and SARs activities under all of the Company’s share-based compensation plans as of March 30, 2014 and changes during the three months ended March 30, 2014 are presented below (in thousands, except for weighted-average exercise price and remaining contractual term): | |||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||
Options and SARs outstanding at December 29, 2013 | 6,593 | $ | 40.66 | 4.2 | $ | 195,018 | |||||||
Granted | 937 | 74.5 | |||||||||||
Exercised | (1,634 | ) | 38.48 | 57,828 | |||||||||
Forfeited | (58 | ) | 49.08 | ||||||||||
Expired | (1 | ) | 40.77 | ||||||||||
Options and SARs outstanding at March 30, 2014 | 5,837 | 46.62 | 4.7 | 198,394 | |||||||||
Options and SARs vested and expected to vest after March 30, 2014, net of forfeitures | 5,445 | 45.75 | 4.6 | 189,811 | |||||||||
Options and SARs exercisable at March 30, 2014 | 2,188 | 33.69 | 3.2 | 102,668 | |||||||||
At March 30, 2014, the total unrecognized compensation cost related to stock options, net of estimated forfeitures, was approximately $53.9 million, and this amount is expected to be recognized over a weighted-average period of approximately 2.5 years. As of March 30, 2014, the Company had fully expensed all of its SARs awards. | |||||||||||||
Restricted Stock Units. RSUs are settled in shares of the Company’s common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s common stock on the date of grant, and compensation is recognized on a straight-line basis over the requisite vesting period. | |||||||||||||
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plans during the three months ended March 30, 2014 is presented below (in thousands, except for weighted-average grant date fair value): | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||
Non-vested share units at December 29, 2013 | 4,454 | $ | 49.87 | $ | 221,457 | ||||||||
Granted | 1,970 | 74.5 | |||||||||||
Vested | (1,077 | ) | 46.29 | 80,409 | |||||||||
Forfeited | (83 | ) | 52.04 | ||||||||||
Non-vested share units at March 30, 2014 | 5,264 | 59.63 | 314,389 | ||||||||||
At March 30, 2014, the total unrecognized compensation cost related to RSUs, net of estimated forfeitures, was approximately $243.4 million, and this amount is expected to be recognized over a weighted-average period of approximately 3.1 years. | |||||||||||||
Employee Stock Purchase Plan. At March 30, 2014, the total unrecognized compensation cost related to ESPP was approximately $3.5 million, and this amount is expected to be recognized over a period of five months. | |||||||||||||
Share-based Compensation Expense. The following tables set forth the detailed allocation of the share-based compensation expense (in thousands): | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Share-based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 2,610 | $ | 1,717 | |||||||||
Research and development | 15,675 | 11,640 | |||||||||||
Sales and marketing | 6,257 | 3,871 | |||||||||||
General and administrative | 5,488 | 4,506 | |||||||||||
Total share-based compensation expense | 30,030 | 21,734 | |||||||||||
Total tax benefit recognized | (8,776 | ) | (6,916 | ) | |||||||||
Decrease in net income | $ | 21,254 | $ | 14,818 | |||||||||
Share-based compensation expense by type of award: | |||||||||||||
Stock options and SARs | $ | 7,924 | $ | 8,269 | |||||||||
RSUs | 19,465 | 11,970 | |||||||||||
ESPP | 2,641 | 1,495 | |||||||||||
Total share-based compensation expense | 30,030 | 21,734 | |||||||||||
Total tax benefit recognized | (8,776 | ) | (6,916 | ) | |||||||||
Decrease in net income | $ | 21,254 | $ | 14,818 | |||||||||
Share-based compensation expense of $3.4 million and $2.7 million related to manufacturing personnel was capitalized into inventory as of March 30, 2014 and December 29, 2013, respectively. | |||||||||||||
The total grant date fair value of options and RSUs vested during the three months ended March 30, 2014 and March 31, 2013 was as follows (in thousands): | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Options | $ | 10,228 | $ | 14,568 | |||||||||
RSUs | 49,866 | 29,821 | |||||||||||
Total grant date fair value of vested options and RSUs | $ | 60,094 | $ | 44,389 | |||||||||
Dividend Declaration | ' | ||||||||||||
Dividends | |||||||||||||
Through March 30, 2014, the Company’s Board of Directors declared the following dividends: | |||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 21, 2014 | $ | 0.225 | February 3, 2014 | $ | 51.7 | February 24, 2014 | |||||||
No dividends were declared or paid by the Company during the first quarter of fiscal year 2013. On April 15, 2014, the Company’s Board of Directors declared a dividend of $0.225 per share for holders of record as of May 5, 2014, which is to be paid on May 27, 2014. Future dividends are subject to declaration by the Company’s Board of Directors. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Provision for Income Taxes | ' | |||||||
Provision for Income Taxes | ||||||||
The following table presents the provision for income taxes and the effective tax rate (in thousands, except percentages): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Provision for income taxes | $ | 140,591 | $ | 67,665 | ||||
Effective tax rate | 34.3 | % | 28.9 | % | ||||
The provision for income taxes for the three months ended March 30, 2014 differs from the U.S. statutory tax rate of 35% due primarily to the tax impact of earnings from foreign operations, state taxes, non-deductibility of certain share-based compensation and tax-exempt interest income. Earnings and taxes resulting from foreign operations are largely attributable to the Company’s Irish, Chinese, Israeli and Japanese entities. Earnings in these countries where tax rates are lower than the U.S. notional rate contributed to the majority of the difference between the rate of the Company’s tax provision and the U.S. statutory tax rate. The higher effective tax rate for the three months ended March 30, 2014, compared to the same period in fiscal year 2013, is attributable to the federal R&D tax credit not being extended as of March 30, 2014, while the March 31, 2013 effective tax rate includes both the 2013 federal R&D credit and retroactive inclusion of the 2012 federal R&D tax credit, and changes in the composition of operating income by tax jurisdiction. As of March 30, 2014, the Company believes that most of its deferred tax assets are more likely than not to be realized, except for certain loss and credit carry forwards in certain U.S. and foreign tax jurisdictions. | ||||||||
Unrecognized tax benefits were $190.9 million and $185.3 million as of March 30, 2014 and December 29, 2013, respectively. Unrecognized tax benefits that would impact the effective tax rate in the future were approximately $92.6 million at March 30, 2014. Income tax expense for both the three months ended March 30, 2014 and March 31, 2013 included interest and penalties of $0.7 million. It is reasonably possible that within the next 12 months, unrecognized tax benefits could decrease by up to $78.0 million as a result of potential settlements of tax authority examinations and could decrease by up to $10.3 million as a result of the expiration of statutes of limitation. | ||||||||
The Company is subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. In February 2012, the Internal Revenue Service (“IRS”) completed its field audit of the Company’s federal income tax returns for fiscal years 2005 through 2008 and issued the Revenue Agent’s Report. The most significant proposed adjustments are comprised of related party transactions between SanDisk Corporation and its foreign subsidiaries. The Company is contesting these adjustments through the IRS Appeals Office and cannot predict when a resolution will be reached. | ||||||||
The Company strongly believes the IRS’s position regarding the intercompany transactions is inconsistent with applicable tax laws, judicial precedents and existing Treasury regulations, and that the Company’s previously reported income tax provisions for the years in question are appropriate. The Company believes that an adequate provision has been made for the adjustments from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner that is not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. | ||||||||
The IRS recently initiated an examination of the Company’s federal income tax returns for fiscal years 2009 through 2011. The Company does not expect a resolution of this audit to be reached during the next twelve months. In addition, the Company is currently under audit by various state and international tax authorities. The Company cannot reasonably estimate the outcome of these examinations, or provide assurance that the outcome of these examinations will not materially harm the Company’s financial position, results of operations or liquidity. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income Per Share | ' | |||||||
Net Income per Share | ||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Numerator for basic net income per share: | ||||||||
Net income | $ | 268,948 | $ | 166,229 | ||||
Denominator for basic net income per share: | ||||||||
Weighted-average common shares outstanding | 225,845 | 242,519 | ||||||
Basic net income per share | $ | 1.19 | $ | 0.69 | ||||
Numerator for diluted net income per share: | ||||||||
Net income | $ | 268,948 | $ | 166,229 | ||||
Denominator for diluted net income per share: | ||||||||
Weighted-average common shares outstanding | 225,845 | 242,519 | ||||||
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,103 | 3,058 | ||||||
1.5% Notes due 2017 | 5,702 | — | ||||||
Warrants | 264 | — | ||||||
Shares used in computing diluted net income per share | 234,914 | 245,577 | ||||||
Diluted net income per share | $ | 1.14 | $ | 0.68 | ||||
Anti-dilutive shares excluded from net income per share calculation | 33,000 | 68,296 | ||||||
Basic earnings per share exclude any dilutive effects of stock options, SARs, RSUs, warrants and convertible debt. Diluted earnings per share include the dilutive effects of stock options, SARs, RSUs, ESPP and the 1.5% Notes due 2017. Certain common stock issuable under stock options, SARs, RSUs, warrants and the 0.5% Notes due 2020 has been omitted from the current year diluted net income per share calculation because the inclusion is considered anti-dilutive. Certain common stock issuable under stock options, SARs, RSUs, warrants, the 1% Notes due 2013 and the 1.5% Notes due 2017 has been omitted from the prior year diluted net income per share calculation because the inclusion is considered anti-dilutive. |
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 3 Months Ended | ||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||
Commitments Contingencies and Guarantees [Abstract] | ' | ||||||||||||||||||||
Commitments, Contingencies and Guarantees | ' | ||||||||||||||||||||
Commitments, Contingencies and Guarantees | |||||||||||||||||||||
Flash Ventures | |||||||||||||||||||||
Flash Ventures, the Company’s business ventures with Toshiba, consists of three separate legal entities: Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. The Company has a 49.9% ownership interest in each of these entities and Toshiba owns 50.1% of each of these entities. Through these ventures, the Company and Toshiba have collaborated in the development and manufacture of NAND flash memory products which are manufactured by Toshiba at its wafer fabrication facility located in Yokkaichi, Japan, using semiconductor manufacturing equipment owned or leased by Flash Ventures. The Flash Ventures purchase wafers from Toshiba at cost and then resell those wafers to the Company and Toshiba at cost plus a markup. The Company accounts for its 49.9% ownership position in each Flash Ventures entity under the equity method of accounting. The Company is committed to purchase its provided three-month forecast of Flash Ventures’ NAND wafer supply, which generally equals 50% of Flash Ventures’ output. The Company is not able to estimate its total wafer purchase commitment obligation beyond its rolling three-month purchase commitment because the price is determined by reference to the future cost of producing the semiconductor wafers. In addition, the Company is committed to fund 49.9% of Flash Ventures’ costs to the extent that Flash Ventures’ revenue from wafer sales to the Company and Toshiba are insufficient to cover these costs. | |||||||||||||||||||||
Flash Partners. Flash Partners Ltd. (“Flash Partners”) was formed in fiscal year 2004. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba at its 300-millimeter wafer fabrication facility (“Fab 3”) located in Yokkaichi, Japan. As of March 30, 2014, the Company had notes receivable from Flash Partners of $77.9 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Partners with the note proceeds. The Company also has guarantee obligations to Flash Partners; see “Off-Balance Sheet Liabilities.” At March 30, 2014 and December 29, 2013, the Company had an equity investment in Flash Partners of $194.2 million and $190.7 million, respectively, denominated in Japanese yen, offset by $21.5 million and $17.3 million, respectively, of cumulative translation adjustments recorded in AOCI. In the three months ended March 30, 2014 and March 31, 2013, the Company recorded a basis adjustment of zero and $0.3 million, respectively, to its equity in earnings from Flash Partners related to the difference between the basis in the Company’s equity investment compared to the historical basis of the assets recorded by Flash Partners. Flash Partners’ share of the Fab 3 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Alliance. Flash Alliance Ltd. (“Flash Alliance”) was formed in fiscal year 2006. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba at its 300-millimeter wafer fabrication facility (“Fab 4”) located in Yokkaichi, Japan. As of March 30, 2014, the Company had notes receivable from Flash Alliance of $355.4 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Alliance with the note proceeds. The Company also has guarantee obligations to Flash Alliance; see “Off-Balance Sheet Liabilities.” At March 30, 2014 and December 29, 2013, the Company had an equity investment in Flash Alliance of $290.8 million and $284.0 million, respectively, denominated in Japanese yen, offset by $(2.5) million and $(8.7) million, respectively, of cumulative translation adjustments recorded in AOCI. In the three months ended March 30, 2014 and March 31, 2013, the Company recorded a basis adjustment of zero and $2.9 million, respectively, to its equity earnings from Flash Alliance related to the difference between the basis in the Company’s equity investment compared to the historical basis of the assets recorded by Flash Alliance. Flash Alliance’s share of the Fab 4 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Forward. Flash Forward Ltd. (“Flash Forward”) was formed in fiscal year 2010. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba at its 300-millimeter wafer fabrication facility (“Fab 5”) located in Yokkaichi, Japan. Fab 5 is to be built in two phases. By the third quarter of fiscal year 2014, Phase 1 of the building is expected to be fully utilized with the addition of equipment including 1Y-nanometer technology transition tools, development tools for 3D NAND, and tools for a planned increase in Flash Ventures wafer capacity of less than 5%. The Company and Toshiba each retain some flexibility as to the extent and timing of each party’s respective fab capacity ramps. Construction of the Phase 2 shell of the Fab 5 wafer fabrication facility is underway with expected completion in mid-2014. The Phase 2 shell is currently intended to be used primarily for technology transition of the existing Flash Ventures wafer capacity to 1Y‑nanometer and 1Z‑nanometer technology nodes and for a 3‑dimensional NAND (“3D NAND”) pilot line. | |||||||||||||||||||||
As of March 30, 2014, the Company had notes receivable from Flash Forward of $172.9 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Forward with the note proceeds. The Company also has guarantee obligations to Flash Forward; see “Off-Balance Sheet Liabilities.” At March 30, 2014 and December 29, 2013, the Company had an equity investment in Flash Forward of $68.1 million and $66.7 million, respectively, denominated in Japanese yen, offset by $(14.7) million and $(16.2) million, respectively, of cumulative translation adjustments recorded in AOCI. | |||||||||||||||||||||
Inventory Purchase Commitments with Flash Ventures. Purchase orders placed under Flash Ventures for up to three months are binding and cannot be canceled. These outstanding purchase commitments are included as part of the total “Noncancelable production purchase commitments” in the “Contractual Obligations” table. | |||||||||||||||||||||
Off-Balance Sheet Liabilities | |||||||||||||||||||||
Flash Ventures. Flash Ventures sell and lease back from a consortium of financial institutions (“lessors”) a portion of their tools and have entered into equipment master lease agreements totaling 178.2 billion Japanese yen, or approximately $1.73 billion based upon the exchange rate at March 30, 2014. As of March 30, 2014, the total amount outstanding from these master leases was 114.2 billion Japanese yen, or approximately $1.11 billion based upon the exchange rate at March 30, 2014, of which the amount of the Company’s guarantee obligation of the Flash Ventures’ master lease agreements, which reflects future payments and any lease adjustments, was 57.1 billion Japanese yen, or approximately $556 million based upon the exchange rate at March 30, 2014. | |||||||||||||||||||||
The master lease agreements contain customary covenants for Japanese lease facilities. In addition to containing customary events of default related to Flash Ventures that could result in an acceleration of Flash Ventures’ obligations, the master lease agreements contain an acceleration clause for certain events of default related to the Company as guarantor, including, among other things, the Company’s failure to maintain a minimum stockholders’ equity of at least $1.51 billion. As of March 30, 2014, Flash Ventures was in compliance with all of its master lease covenants, including the shareholders’ equity covenant with the Company’s stockholders’ equity at $7.07 billion as of March 30, 2014. If the Company’s stockholders’ equity falls below $1.51 billion, or other events of default occur, Flash Ventures would become non-compliant under its master equipment lease agreements and would be required to negotiate a resolution to the non-compliance to avoid acceleration of the obligations under such agreements. Such resolution could include, among other things, supplementary security to be supplied by the Company, as guarantor, or increased interest rates or waiver fees, should the lessors decide they need additional collateral or financial consideration under the circumstances. If a non-compliance event were to occur and if the Company failed to reach a resolution, the Company could be required to pay a portion or the entire outstanding lease obligations covered by its guarantees under such Flash Ventures master lease agreements. | |||||||||||||||||||||
The following table details the Company’s portion of the remaining guarantee obligations under each of Flash Ventures’ master lease facilities (both initial and refinanced leases) in both Japanese yen (in billions) and U.S. dollar-equivalent (in thousands) based upon the exchange rate at March 30, 2014: | |||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen) | (U.S. dollar) | ||||||||||||||||||||
Flash Partners | |||||||||||||||||||||
April 2010 | Refinanced | ¥ | 1 | $ | 9,112 | 2014 | |||||||||||||||
January 2011 | Refinanced | 1 | 9,707 | 2014 | |||||||||||||||||
Nov-11 | Refinanced | 3.9 | 38,086 | 2014 | |||||||||||||||||
Mar-12 | Refinanced | 2.9 | 28,555 | 2015 | |||||||||||||||||
Mar-14 | Initial | 5 | 48,481 | 2019 | |||||||||||||||||
13.8 | 133,941 | ||||||||||||||||||||
Flash Alliance | |||||||||||||||||||||
Mar-12 | Initial | 6.6 | 64,555 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 12.6 | 122,094 | 2017 | |||||||||||||||||
Mar-14 | Initial | 5 | 48,896 | 2019 | |||||||||||||||||
24.2 | 235,545 | ||||||||||||||||||||
Flash Forward | |||||||||||||||||||||
Nov-11 | Initial | 10.2 | 99,317 | 2016 | |||||||||||||||||
Mar-12 | Initial | 6.4 | 62,840 | 2017 | |||||||||||||||||
Jul-12 | Initial | 2.5 | 24,216 | 2017 | |||||||||||||||||
19.1 | 186,373 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 57.1 | $ | 555,859 | |||||||||||||||||
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 March 30, 2014 in U.S. dollars based upon the yen/dollar exchange rate at March 30, 2014 (in thousands): | |||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
Year 1 | $ | 155,624 | $ | 37,950 | $ | 193,574 | |||||||||||||||
Year 2 | 115,895 | 17,699 | 133,594 | ||||||||||||||||||
Year 3 | 85,475 | 26,261 | 111,736 | ||||||||||||||||||
Year 4 | 33,440 | 53,922 | 87,362 | ||||||||||||||||||
Year 5 | 13,628 | 15,965 | 29,593 | ||||||||||||||||||
Total guarantee obligations | $ | 404,062 | $ | 151,797 | $ | 555,859 | |||||||||||||||
Guarantees | |||||||||||||||||||||
Indemnification Agreements. The Company has agreed to indemnify suppliers and customers for alleged intellectual property infringement. The scope of such indemnity varies, but may, in some instances, include indemnification for damages and expenses, including attorneys’ fees. The Company may periodically engage in litigation as a result of these indemnification obligations. The Company’s insurance policies exclude coverage for third-party claims for patent infringement. Although the liability is not remote, the nature of the patent infringement indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its suppliers and customers. Historically, the Company has not made any significant indemnification payments under any such agreements. As of March 30, 2014, no amounts had been accrued in the accompanying Condensed Consolidated Financial Statements with respect to these indemnification guarantees. | |||||||||||||||||||||
As permitted under Delaware law and the Company’s certificate of incorporation and bylaws, the Company has agreements, or has assumed agreements in connection with its acquisitions, whereby it indemnifies certain of its officers and employees, and each of its directors for certain events or occurrences while the officer, employee or director is, or was, serving at the Company’s or the acquired company’s request in such capacity. The term of the indemnification period is for the officer’s, employee’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is generally unlimited; however, the Company has a Director and Officer insurance policy that may reduce its exposure and enable it to recover all or a portion of any future amounts paid. As a result of its insurance coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company has no liabilities recorded for these agreements as of March 30, 2014 or December 29, 2013, as these liabilities are not reasonably estimable even though liabilities under these agreements are not remote. | |||||||||||||||||||||
The Company and Toshiba have agreed to mutually contribute to, and indemnify each other and Flash Ventures for, environmental remediation costs or liability resulting from Flash Ventures’ manufacturing operations in certain circumstances. The Company and Toshiba have also entered into a Patent Indemnification Agreement under which, in many cases, the Company will share in the expenses associated with the defense and cost of settlement associated with such claims. This agreement provides limited protection for the Company against third-party claims that NAND flash memory products manufactured and sold by Flash Ventures infringe third-party patents. The Company has not made any indemnification payments under any such agreements. As of March 30, 2014, no amounts have been accrued in the Company’s Condensed Consolidated Financial Statements with respect to these indemnification guarantees. | |||||||||||||||||||||
Contractual Obligations and Off-Balance Sheet Arrangements | |||||||||||||||||||||
The following tables summarize the Company’s contractual cash obligations, commitments and off-balance sheet arrangements at March 30, 2014, and the effect such obligations are expected to have on its liquidity and cash flows in future periods. | |||||||||||||||||||||
Contractual Obligations. Contractual cash obligations and commitments as of March 30, 2014 are as follows (in thousands): | |||||||||||||||||||||
Total | 1 Year (Remaining 9 months in 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 | $ | 17,451 | (5) | $ | 6,029 | $ | 9,219 | $ | 2,060 | $ | 143 | ||||||||||
Flash Partners (1) | 679,740 | (5)(6) | 113,078 | 366,261 | 178,394 | 22,007 | |||||||||||||||
Flash Alliance (1) | 2,098,738 | (5)(6) | 413,220 | 1,103,143 | 477,107 | 105,268 | |||||||||||||||
Flash Forward (1) | 901,628 | (5)(6) | 346,912 | 335,840 | 166,935 | 51,941 | |||||||||||||||
Toshiba research and development | 136,855 | (5) | 93,357 | 43,498 | — | — | |||||||||||||||
Capital equipment purchase commitments | 52,187 | 51,833 | 328 | 26 | — | ||||||||||||||||
1.5% Notes due 2017 principal and interest (2) | 1,060,000 | 15,000 | 30,000 | 1,015,000 | — | ||||||||||||||||
0.5% Notes due 2020 principal and interest (3) | 1,552,250 | 7,250 | 15,000 | 15,000 | 1,515,000 | ||||||||||||||||
Operating expense commitments | 56,742 | 56,239 | 503 | — | — | ||||||||||||||||
Noncancelable production purchase commitments (4) | 255,439 | (5) | 255,439 | — | — | — | |||||||||||||||
Total contractual cash obligations | $ | 6,811,030 | $ | 1,358,357 | $ | 1,903,792 | $ | 1,854,522 | $ | 1,694,359 | |||||||||||
(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 March 30, 2014. | ||||||||||||||||||||
(6) | Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term. | ||||||||||||||||||||
The Company has excluded $207.2 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 March 30, 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 are as follows (in thousands): | |||||||||||||||||||||
March 30, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 555,859 | |||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 57.1 billion Japanese yen, or approximately $556 million based upon the exchange rate at March 30, 2014. | ||||||||||||||||||||
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 2022. Future minimum lease payments are presented below (in thousands): | |||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||
2014 (Remaining 9 months) | $ | 6,436 | |||||||||||||||||||
2015 | 6,794 | ||||||||||||||||||||
2016 | 3,136 | ||||||||||||||||||||
2017 | 1,477 | ||||||||||||||||||||
2018 | 583 | ||||||||||||||||||||
2019 and thereafter | 143 | ||||||||||||||||||||
Operating leases, gross | 18,569 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (1,118 | ) | |||||||||||||||||||
Operating leases, net | $ | 17,451 | |||||||||||||||||||
Net rent expense was as follows (in thousands): | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 30, | March 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Rent expense, net | $ | 1,624 | $ | 1,843 | |||||||||||||||||
Related_Parties_and_Strategic_
Related Parties and Strategic Investments | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related Parties and Strategic Investments | ' | |||||||
Related Parties and Strategic Investments | ||||||||
Flash Ventures with Toshiba. The Company owns 49.9% of each entity within Flash Ventures and accounts for its ownership position under the equity method of accounting. The Company’s obligations with respect to the Flash Ventures master lease agreements, take-or-pay supply arrangements and R&D cost sharing are described in Note 11, “Commitments, Contingencies and Guarantees.” The financial and other support provided by the Company in all periods presented was either contractually required or the result of a joint decision to expand wafer capacity, transition to new technologies or refinance existing equipment lease commitments. Flash Ventures are variable interest entities (“VIEs”). The Company evaluated whether it is the primary beneficiary of any of the entities within Flash Ventures for all periods presented and determined that it is not the primary beneficiary of any of the entities within Flash Ventures because it does not have a controlling financial interest in any of those entities. In determining whether the Company is the primary beneficiary, the Company analyzed the primary purpose and design of Flash Ventures, the activities that most significantly impact Flash Ventures’ economic performance, and whether the Company had the power to direct those activities. The Company concluded based upon its 49.9% ownership in Flash Ventures, the voting structure of Flash Ventures and the manner in which the day-to-day operations of Flash Ventures are conducted that the Company lacked the power to direct most of the activities that most significantly impact Flash Ventures’ economic performance. | ||||||||
The Company purchased NAND flash memory wafers from Flash Ventures and made prepayments, investments and loans to Flash Ventures totaling $460.1 million and $478.9 million during the three months ended March 30, 2014 and March 31, 2013, respectively. The Company received loan repayments from Flash Ventures of $24.4 million and $53.6 million during the three months ended March 30, 2014 and March 31, 2013, respectively. At March 30, 2014 and December 29, 2013, the Company had accounts payable balances due to Flash Ventures of $160.5 million and $146.0 million, respectively. | ||||||||
The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate at each respective balance sheet date, as a result of its involvement with Flash Ventures, is presented below (in millions). The Flash Venture investments are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. | ||||||||
March 30, | December 29, | |||||||
2014 | 2013 | |||||||
Notes receivable | $ | 606 | $ | 593 | ||||
Equity investments | 553 | 541 | ||||||
Operating lease guarantees | 556 | 492 | ||||||
Prepayments | — | 5 | ||||||
Maximum estimable loss exposure | $ | 1,715 | $ | 1,631 | ||||
Solid State Storage Solutions, Inc. Solid State Storage Solutions, Inc. (“S4”) is a venture with third parties to license intellectual property. S4 qualifies as a VIE. The Company is considered the primary beneficiary of S4 and the Company consolidates S4 in its Condensed Consolidated Financial Statements for all periods presented. The Company considered multiple factors in determining it was the primary beneficiary, including its overall involvement with the venture, contributions and participation in operating activities. S4’s assets and liabilities were not material to the Company’s Condensed Consolidated Balance Sheets as of March 30, 2014 and December 29, 2013. |
Litigation
Litigation | 3 Months Ended |
Mar. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
From time to time, the Company is involved in various litigation matters, including those described below, among others. The litigation proceedings in which the Company is involved from time to time may include matters such as intellectual property, antitrust, commercial, labor, class action and insurance disputes. The semiconductor industry is characterized by significant litigation seeking to enforce patent and other intellectual property rights. The Company has enforced, and likely will continue to enforce, its own intellectual property rights through litigation and related proceedings. | |
In each case listed below where the Company is the defendant, the Company intends to vigorously defend the action. At this time, the Company does not believe it is reasonably possible that losses related to the litigation described below have occurred beyond the amounts, if any, which have been accrued. However, legal discovery and litigation is highly unpredictable and future legal developments may cause current estimates to change in future periods. | |
Patent Infringement and Antitrust Litigation With Round Rock Research LLC. On October 27, 2011, in response to infringement allegations by Round Rock Research LLC (“Round Rock”), the Company filed a lawsuit against Round Rock in the U.S. District Court for the Northern District of California. The lawsuit seeks a declaratory judgment that twelve Round Rock patents are invalid and/or not infringed by flash memory products sold by the Company. Round Rock has since withdrawn its infringement allegations as to eight of the patents. The parties have filed several motions for summary judgment directed to various claims and defenses. These motions are currently pending. Trial on the four patents remaining in the case is scheduled to begin on August 11, 2014. | |
On May 3, 2012, Round Rock filed an action in the U.S. District Court for the District of Delaware alleging that the Company infringed eleven patents, and subsequently filed an amended complaint alleging that the Company’s infringement was willful. The parties agreed to dismiss one patent from this Delaware lawsuit that was also being litigated in the California case described above. Trial is currently scheduled to begin on January 20, 2015. | |
On March 19, 2014, the Company filed an action against Round Rock in the U.S. District Court for the District of Delaware for antitrust violations arising from Round Rock's acquisition of patents from Micron Technology, Inc. (“Micron”) and demand for royalties that are not reasonable and non-discriminatory for alleged infringement of patents that Round Rock claims are standards-essential. The Company alleges that Round Rock violated the antitrust laws by conspiring with Micron and violating commitments that Micron made to the standards-setting organization, JEDEC Solid State Technology Association. Round Rock has not yet filed its response. | |
Ritz Camera Federal Antitrust Class Action. On June 25, 2010, Ritz Camera & Image, LLC (“Ritz”) filed a complaint in the U.S. District Court for the Northern District of California (the “District Court”), alleging that the Company violated federal antitrust law by conspiring to monopolize and monopolizing the market for flash memory products. The lawsuit captioned Ritz Camera & Image, LLC v. SanDisk Corporation, Inc. and Eliyahou Harari, purports to be on behalf of direct purchasers of flash memory products sold by the Company and joint ventures controlled by the Company from June 25, 2006 through the present. The complaint alleges that the Company created and maintained a monopoly by fraudulently obtaining patents and using them to restrain competition and by allegedly converting other patents for its competitive use. On February 24, 2011, the District Court issued an Order granting in part and denying in part the Company’s motion to dismiss, which resulted in Dr. Harari being dismissed as a defendant. On September 19, 2011, the Company filed a petition for permission to file an interlocutory appeal in the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) for the portion of the District Court’s Order denying the Company’s motion to dismiss based on Ritz’s lack of standing to pursue Walker Process antitrust claims. On October 27, 2011, the District Court administratively closed the case pending the Federal Circuit’s ruling on the Company’s petition. On November 20, 2012, the Federal Circuit affirmed the District Court’s order denying SanDisk’s motion to dismiss. On December 2, 2012, the Federal Circuit issued its mandate returning the case to the District Court. Discovery is now open in the District Court. On February 20, 2013, Ritz filed a motion requesting that Albert Giuliano, the Chapter 7 Trustee of the Ritz bankruptcy estate, be substituted as the plaintiff in this case, which the District Court granted on July 5, 2013. On October 1, 2013, the District Court granted the Trustee’s motion for leave to file a third amended complaint, which adds CPM Electronics Inc. and E.S.E. Electronics, Inc. as named plaintiffs. On December 17, 2013, Ritz sought leave to file a fourth amended complaint, which would add a cause of action for attempted monopolization and add another named plaintiff. | |
Samsung Federal Antitrust Action Against Panasonic and SD‑3C. On July 15, 2010, Samsung Electronics Co., Ltd. (“Samsung”) filed an action in the U.S. District Court for the Northern District of California (the “District Court”) alleging various claims against Panasonic Corporation and Panasonic Corporation of North America (collectively, “Panasonic”) and SD‑3C, LLC (“SD‑3C”) under federal antitrust law pursuant to Sections 1 and 2 of the Sherman Act, and under California antitrust and unfair competition laws relating to the licensing practices and operations of SD‑3C. The complaint seeks an injunction against collection of Secure Digital (“SD”) card royalties, treble damages, restitution, pre- and post-judgment interest, costs, and attorneys’ fees, as well as a declaration that Panasonic and SD-3C engaged in patent misuse and that the patents subject to such alleged misuse should be held unenforceable. The Company is not named as a defendant in this case, but it established SD‑3C along with Panasonic and Toshiba, and the complaint includes various factual allegations concerning the Company. As a member of SD‑3C, the Company may be responsible for a portion of any monetary award. Other requested relief, including an injunction or declaration of patent misuse, could result in a loss of revenue to the Company. Defendants filed a motion to dismiss on September 24, 2010, and Samsung filed a First Amended Complaint (“FAC”) on October 14, 2010. On August 25, 2011, the District Court dismissed the patent misuse claim with prejudice but gave Samsung leave to amend its other claims. On January 3, 2012, the District Court granted defendants’ motion to dismiss Samsung’s complaint without leave to amend. Samsung appealed. On April 4, 2014, the U.S. Court of Appeals for the Ninth Circuit issued a decision reversing the District Court’s dismissal on statute of limitations grounds and remanding the case to the District Court for further proceedings. | |
Federal Antitrust Class Action Against SanDisk, et al. On March 15, 2011, a putative class action captioned Oliver v. SD‑3C LLC, et al was filed in the U.S. District Court for the Northern District of California (the “District Court”) on behalf of a nationwide class of indirect purchasers of SD cards alleging various claims against the Company, SD‑3C, LLC (“SD‑3C”), Panasonic Corporation, Panasonic Corporation of North America, Toshiba and Toshiba America Electronic Components, Inc. under federal antitrust law pursuant to Section 1 of the Sherman Act, California antitrust and unfair competition laws, and common law. The complaint seeks an injunction of the challenged conduct, dissolution of “the cooperation agreements, joint ventures and/or cross-licenses alleged herein,” treble damages, restitution, disgorgement, pre- and post-judgment interest, costs, and attorneys’ fees. Plaintiffs allege that the Company (along with the other members of SD‑3C) conspired to artificially inflate the royalty costs associated with manufacturing SD cards in violation of federal and California antitrust and unfair competition laws, which in turn allegedly caused plaintiffs to pay higher prices for SD cards. The allegations are similar to, and incorporate by reference the complaint in the Samsung Electronics Co., Ltd. v. Panasonic Corporation; Panasonic Corporation of North America; and SD‑3C LLC described above. On May 21, 2012, the District Court granted Defendants’ motion to dismiss the complaint with prejudice. Plaintiffs appealed. Briefing on the appeal was completed on June 21, 2013. Oral argument took place on December 5, 2013. | |
Trade Secret Litigation Against SK Hynix, et al. On March 13, 2014, the Company filed a civil action in Santa Clara Superior Court in California against SK Hynix, Inc. and certain related entities (collectively, “defendants”) for trade secret misappropriation arising from the theft of trade secrets by a former employee of the Company and defendants’ wrongful receipt and use of such information. The lawsuit seeks damages, an injunction and other remedies. Additionally, in March 2014, SanDisk submitted a criminal complaint to the Tokyo Metropolitan Police Department against the former employee. On April 3, 2014, the former employee was indicted by the Tokyo District Public Prosecutor’s Office for theft of trade secrets. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Nature of Operations | ' |
Organization and Nature of Operations. The Company was incorporated in the State of Delaware on June 1, 1988. The Company designs, develops, markets and manufactures data storage solutions in a variety of form factors using its flash memory, controller and firmware technologies. The Company operates in one segment, flash memory storage products. | |
Basis of Presentation | ' |
Basis of Presentation. The Company’s fiscal year ends on the Sunday closest to December 31 and its fiscal quarters consist of 13 weeks. The first quarters of fiscal years 2014 and 2013 ended on March 30, 2014 and March 31, 2013, respectively. For accounting and disclosure purposes, the exchange rates of 102.69, 104.94 and 94.11 at March 30, 2014, December 29, 2013 and March 31, 2013, respectively, were used to convert Japanese yen to U.S. dollars. Throughout the Notes to Condensed Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders. Cash provided by operating activities and Cash used in financing activities for the three months ended March 30, 2014 included a reclassification of $24.4 million from the amounts disclosed in the Company's Preliminary Condensed Consolidated Statements of Cash Flows included in the Form 8-K furnished on April 16, 2014 to reflect cash spent to settle employee tax withholding obligations due upon the vesting of restricted stock units (“RSUs”). | |
Consolidation, Policy | ' |
Principles of Consolidation. The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the minority shareholders’ proportionate share of the net assets and results of operations of the Company’s majority-owned subsidiaries. The Condensed Consolidated Financial Statements also include the results of companies acquired by the Company from the date of each acquisition. | |
Use of Estimates | ' |
Use of Estimates. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to customer programs and incentives, intellectual property claims, product returns, allowance for doubtful accounts, inventories and inventory reserves, valuation and impairments of marketable securities and investments, valuation and impairments of goodwill and long-lived assets, income taxes, warranty obligations, restructurings, contingencies, share‑based compensation and litigation. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results could materially differ from these estimates. |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities Derivative and Hedging Activities (Policies) | 3 Months Ended |
Mar. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Derivatives, Policy [Policy Text Block] | ' |
The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value and provides qualitative disclosures about objectives and strategies for using derivative instruments, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. Changes in fair value (i.e., gains or losses) of the derivatives are recorded as cost of revenue or other income (expense), or as other comprehensive income (“OCI”). Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of set-off associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The Company does not offset or net the fair value amounts of derivative instruments in its Condensed Consolidated Balance Sheets and separately discloses the gross fair value amounts of the derivative instruments as either assets or liabilities. |
Balance_Sheet_Information_Bala
Balance Sheet Information Balance Sheet Information (Policies) | 3 Months Ended |
Mar. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in other income (expense). |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 30, 2014 | ||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities | ' | |||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Marketable Securities | ' | |||||||||||||||||||||||||||||||
The Company’s total cash, cash equivalents and marketable securities was as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, | December 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,116,938 | $ | 986,246 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,692,801 | 1,919,611 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 3,508,081 | 3,179,471 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 6,317,820 | $ | 6,085,328 | ||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Money market funds | $ | 884,279 | $ | — | $ | — | $ | 884,279 | $ | 760,363 | $ | — | $ | — | $ | 760,363 | ||||||||||||||||
Fixed income securities | 142,886 | 5,107,959 | — | 5,250,845 | 160,194 | 4,985,059 | — | 5,145,253 | ||||||||||||||||||||||||
Derivative assets | — | 25 | — | 25 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 1,027,165 | $ | 5,107,984 | $ | — | $ | 6,135,149 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Company’s Condensed Consolidated Balance Sheets as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash equivalents(1) | $ | 884,279 | $ | 49,963 | $ | — | $ | 934,242 | $ | 773,435 | $ | 33,099 | $ | — | $ | 806,534 | ||||||||||||||||
Short-term marketable securities | 22,093 | 1,670,708 | — | 1,692,801 | 15,090 | 1,904,521 | — | 1,919,611 | ||||||||||||||||||||||||
Long-term marketable securities | 120,793 | 3,387,288 | — | 3,508,081 | 132,032 | 3,047,439 | — | 3,179,471 | ||||||||||||||||||||||||
Other current assets | — | 25 | — | 25 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 1,027,165 | $ | 5,107,984 | $ | — | $ | 6,135,149 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,741 | $ | — | $ | 45,741 | ||||||||||||||||
Non-current liabilities | — | — | — | — | — | 118 | — | 118 | ||||||||||||||||||||||||
Total financial liabilities | $ | — | $ | 17,129 | $ | — | $ | 17,129 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
(1) | Cash equivalents exclude cash of $182.7 million and $179.7 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of March 30, 2014 and December 29, 2013, respectively. | |||||||||||||||||||||||||||||||
Available for Sale Investments | ' | |||||||||||||||||||||||||||||||
Available-for-sale investments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 143,141 | $ | 6 | $ | (261 | ) | $ | 142,886 | $ | 160,598 | $ | 21 | $ | (424 | ) | $ | 160,195 | ||||||||||||||
U.S. government-sponsored agency securities | — | — | — | — | 8,112 | 10 | (1 | ) | 8,121 | |||||||||||||||||||||||
International government securities | 55,090 | 2 | (200 | ) | 54,892 | 38,492 | 1 | (224 | ) | 38,269 | ||||||||||||||||||||||
Corporate notes and bonds | 948,512 | 1,660 | (928 | ) | 949,244 | 864,331 | 1,504 | (1,565 | ) | 864,270 | ||||||||||||||||||||||
Asset-backed securities | 216,385 | 137 | (239 | ) | 216,283 | 226,620 | 114 | (170 | ) | 226,564 | ||||||||||||||||||||||
Mortgage-backed securities | 83,951 | 107 | (277 | ) | 83,781 | 86,542 | 18 | (554 | ) | 86,006 | ||||||||||||||||||||||
Municipal notes and bonds | 3,786,291 | 18,764 | (1,296 | ) | 3,803,759 | 3,744,138 | 18,931 | (1,241 | ) | 3,761,828 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 5,233,370 | $ | 20,676 | $ | (3,201 | ) | $ | 5,250,845 | $ | 5,128,833 | $ | 20,599 | $ | (4,179 | ) | $ | 5,145,253 | ||||||||||||||
Available-for-sale securities that were in an unrealized gain position | ' | |||||||||||||||||||||||||||||||
The fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument, and the length of time that individual securities have been in a continuous unrealized loss position as of March 30, 2014, are summarized in the following table (in thousands). Available-for-sale securities that were in an unrealized gain position have been excluded from the table. | ||||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 126,006 | $ | (261 | ) | $ | — | $ | — | |||||||||||||||||||||||
International government securities | 47,879 | (200 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 414,858 | (928 | ) | — | — | |||||||||||||||||||||||||||
Asset-backed securities | 99,496 | (239 | ) | — | — | |||||||||||||||||||||||||||
Mortgage-backed securities | 46,368 | (273 | ) | 294 | (4 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 390,305 | (1,296 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 1,124,912 | $ | (3,197 | ) | $ | 294 | $ | (4 | ) | ||||||||||||||||||||||
Gross realized gains and (losses) on sales of available-for-sale securities | ' | |||||||||||||||||||||||||||||||
The following table shows the gross realized gains and (losses) on sales of available-for-sale securities (in thousands). | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
March 30, | March 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Gross realized gains | $ | 1,013 | $ | 718 | ||||||||||||||||||||||||||||
Gross realized losses | (443 | ) | (1,032 | ) | ||||||||||||||||||||||||||||
Fixed income securities by contractual maturity | ' | |||||||||||||||||||||||||||||||
Fixed income securities by contractual maturity as of March 30, 2014 are shown below (in thousands). Actual maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations or the Company has the option to demand payment. | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,286,856 | $ | 1,290,919 | ||||||||||||||||||||||||||||
After one year through five years | 3,655,004 | 3,668,402 | ||||||||||||||||||||||||||||||
After five years through ten years | 79,657 | 79,670 | ||||||||||||||||||||||||||||||
After ten years | 211,853 | 211,854 | ||||||||||||||||||||||||||||||
Total | $ | 5,233,370 | $ | 5,250,845 | ||||||||||||||||||||||||||||
Related costs and the fair values based on quoted market prices | ' | |||||||||||||||||||||||||||||||
For those financial instruments where the carrying amounts differ from fair value, the following table represents the related carrying values and fair values, which are based on quoted market prices (in thousands). The 1.5% Convertible Senior Notes due 2017 were categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 were categorized as Level 2 as of both March 30, 2014 and December 29, 2013. See Note 6, “Financing Arrangements,” regarding details of each convertible note presented. | ||||||||||||||||||||||||||||||||
March 30, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 840,180 | $ | 1,636,760 | $ | 829,792 | $ | 1,467,160 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,166,497 | 1,648,335 | 1,155,571 | 1,480,290 | ||||||||||||||||||||||||||||
Total | $ | 2,006,677 | $ | 3,285,095 | $ | 1,985,363 | $ | 2,947,450 | ||||||||||||||||||||||||
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 30, 2014 | ||||||||||||||||
Derivative Instruments, Gain (Loss) | ' | |||||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||||
As of March 30, 2014, the notional amount and unrealized loss on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow hedges are shown in both Japanese yen (in billions) and U.S. dollar (in thousands), based upon the exchange rate as of March 30, 2014, as follows: | ||||||||||||||||
Notional Amount | Unrealized Loss | |||||||||||||||
(Japanese yen) | (U.S. dollar) | (U.S. dollar) | ||||||||||||||
Foreign exchange forward contracts | ¥ | 47 | $ | 458,513 | $ | (15,990 | ) | |||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||||
Gross fair value of derivative contracts was as follows (in thousands): | ||||||||||||||||
Derivative assets reported in | ||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||
March 30, | December 29, | March 30, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts not designated | $ | 25 | $ | 777 | $ | — | $ | — | ||||||||
Derivative liabilities reported in | ||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||
March 30, | December 29, | March 30, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts designated | $ | 15,990 | $ | 38,375 | $ | — | $ | 118 | ||||||||
Foreign exchange forward contracts not designated | 1,139 | 7,366 | — | — | ||||||||||||
Total derivatives | $ | 17,129 | $ | 45,741 | $ | — | $ | 118 | ||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | ' | |||||||||||||||
The impact of the effective portion of designated cash flow derivative contracts on the Company’s results of operations was as follows (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
Amount of gain (loss) | Amount of loss reclassified | |||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||
March 30, | March 31, | March 30, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange forward contracts | $ | 13,468 | $ | (30,630 | ) | $ | (1,564 | ) | $ | (1,441 | ) | |||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | ' | |||||||||||||||
The following table includes the ineffective portion of designated cash flow derivative contracts and the forward points excluded for the purposes of cash flow hedging designation recognized in other income (expense) (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
March 30, | March 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Foreign exchange forward contracts | $ | (458 | ) | $ | (307 | ) | ||||||||||
Effect Of Non-designated Derivative Contracts | ' | |||||||||||||||
The effect of non-designated derivative contracts on the Company’s results of operations recognized in other income (expense) was as follows (in thousands): | ||||||||||||||||
Three months ended | ||||||||||||||||
March 30, | March 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Gain on foreign exchange forward contracts including forward point income | $ | 2,186 | $ | 9,659 | ||||||||||||
Loss from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | (1,743 | ) | (11,383 | ) |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 3 Months Ended | ||||||||||
Mar. 30, 2014 | |||||||||||
Balance Sheet Information [Abstract] | ' | ||||||||||
Accounts Receivable, net | ' | ||||||||||
Accounts receivable, net was as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accounts receivable | $ | 783,573 | $ | 904,551 | |||||||
Allowance for doubtful accounts | (7,646 | ) | (8,274 | ) | |||||||
Price protection, promotions and other activities | (179,258 | ) | (213,468 | ) | |||||||
Total accounts receivable, net | $ | 596,669 | $ | 682,809 | |||||||
Inventory | ' | ||||||||||
Inventory was as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Raw material | $ | 467,721 | $ | 440,570 | |||||||
Work-in-process | 118,249 | 102,543 | |||||||||
Finished goods | 213,913 | 213,862 | |||||||||
Total inventory | $ | 799,883 | $ | 756,975 | |||||||
Other Current Assets | ' | ||||||||||
Other current assets were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Income tax receivables | $ | 70,200 | $ | 7,976 | |||||||
Other tax-related receivables | 55,124 | 62,784 | |||||||||
Other non-trade receivables | 15,425 | 37,368 | |||||||||
Prepayment to Flash Forward Ltd. | — | 5,144 | |||||||||
Derivative contract receivables | 25 | 777 | |||||||||
Prepaid expenses | 12,715 | 12,630 | |||||||||
Convertible note issuance costs | 6,355 | — | |||||||||
Other current assets | 17,688 | 40,206 | |||||||||
Total other current assets | $ | 177,532 | $ | 166,885 | |||||||
Notes Receivable and Investments in the Flash Ventures with Toshiba | ' | ||||||||||
Notes receivable and investments in Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. (collectively referred to as “Flash Ventures”) were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Notes receivable, Flash Partners Ltd. | $ | 77,904 | $ | 100,057 | |||||||
Notes receivable, Flash Alliance Ltd. | 355,439 | 323,995 | |||||||||
Notes receivable, Flash Forward Ltd. | 172,850 | 169,144 | |||||||||
Investment in Flash Partners Ltd. | 194,222 | 190,694 | |||||||||
Investment in Flash Alliance Ltd. | 290,776 | 283,999 | |||||||||
Investment in Flash Forward Ltd. | 68,073 | 66,731 | |||||||||
Total notes receivable and investments in Flash Ventures | $ | 1,159,264 | $ | 1,134,620 | |||||||
Other Noncurrent Assets | ' | ||||||||||
Other non-current assets were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Prepaid tax on intercompany transactions | $ | 36,654 | $ | 37,747 | |||||||
Convertible note issuance costs | 13,283 | 20,612 | |||||||||
Long-term prepaid income tax | 3,168 | 66,176 | |||||||||
Other non-current assets | 42,225 | 42,895 | |||||||||
Total other non-current assets | $ | 95,330 | $ | 167,430 | |||||||
Other Current Accrued Liabilities | ' | ||||||||||
Other current accrued liabilities were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accrued payroll and related expenses | $ | 155,434 | $ | 227,779 | |||||||
Derivative contract payables | 17,129 | 45,741 | |||||||||
Taxes payable | 12,585 | 59,618 | |||||||||
Other accrued liabilities | 163,978 | 176,594 | |||||||||
Total other current accrued liabilities | $ | 349,126 | $ | 509,732 | |||||||
Non Current liabilities | ' | ||||||||||
Non-current liabilities were as follows (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Income tax liabilities | 206,888 | 205,266 | |||||||||
Deferred credits on intercompany transactions | 11,874 | 15,065 | |||||||||
Deferred tax liabilities | $ | 4,336 | $ | 3,482 | |||||||
Other non-current liabilities | 88,236 | 83,270 | |||||||||
Total non-current liabilities | $ | 311,334 | $ | 307,083 | |||||||
Schedule of Product Warranty Liability | ' | ||||||||||
The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the accompanying Consolidated Balance Sheets, and the activity was as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Balance, beginning of period | $ | 43,624 | $ | 38,787 | |||||||
Additions and adjustments to cost of revenue | 7,431 | 4,878 | |||||||||
Usage | (3,490 | ) | (4,693 | ) | |||||||
Balance, end of period | $ | 47,565 | $ | 38,972 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
AOCI presented in the accompanying Condensed Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in thousands): | |||||||||||
March 30, | December 29, | ||||||||||
2014 | 2013 | ||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||
Available-for-sale investments | $ | 11,157 | $ | 10,479 | |||||||
Foreign currency translation | (26,729 | ) | (47,440 | ) | |||||||
Hedging activities | (24,466 | ) | (39,498 | ) | |||||||
Total accumulated other comprehensive loss | $ | (40,038 | ) | $ | (76,459 | ) | |||||
Allocation Of Amount Of Income Tax Benefit Expense | ' | ||||||||||
The amount of income tax expense (benefit) allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Available-for-sale investments | $ | 377 | $ | 2,053 | |||||||
Foreign currency translation | 3,771 | (18,311 | ) | ||||||||
Total income tax expense (benefit) allocated | $ | 4,148 | $ | (16,258 | ) | ||||||
Reclassification Of Accumulated Other Comprehensive Income Amounts | ' | ||||||||||
The significant amounts reclassified out of each component of AOCI were as follows (in thousands): | |||||||||||
Three months ended | |||||||||||
AOCI Component | March 30, | March 31, | Statement of Operations | ||||||||
2014 | 2013 | Line Item | |||||||||
Unrealized gain (loss) on available-for-sale investments | $ | 570 | $ | (314 | ) | Interest (expense) and other income (expense), net | |||||
Tax impact | (195 | ) | (175 | ) | Provision for income taxes | ||||||
Unrealized gain (loss) on available-for-sale investments, net of tax | 375 | (489 | ) | ||||||||
Unrealized holding loss on derivatives: | |||||||||||
Foreign exchange contracts | (1,361 | ) | (1,441 | ) | Cost of revenue | ||||||
Foreign exchange contracts | (203 | ) | — | Research and development | |||||||
Loss on cash flow hedging activities | (1,564 | ) | (1,441 | ) | |||||||
Total reclassifications for the period, net of tax | $ | (1,189 | ) | $ | (1,930 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill balances and activity during the three months ended March 30, 2014 were as follows (in thousands): | ||||||||||||||||
Carrying Amount | ||||||||||||||||
Balance as of December 29, 2013 | $ | 318,111 | ||||||||||||||
Adjustment | (181 | ) | ||||||||||||||
Balance as of March 30, 2014 | $ | 317,930 | ||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible asset balances were as follows (in thousands): | ||||||||||||||||
March 30, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
Developed product technology | $ | 292,769 | $ | (129,520 | ) | $ | 163,249 | |||||||||
Customer relationships | 7,600 | (2,326 | ) | 5,274 | ||||||||||||
Trademarks | 8,900 | (1,700 | ) | 7,200 | ||||||||||||
Covenants not to compete | 2,400 | (2,400 | ) | — | ||||||||||||
Acquisition-related intangible assets | 311,669 | (135,946 | ) | 175,723 | ||||||||||||
Technology licenses and patents | 109,600 | (70,524 | ) | 39,076 | ||||||||||||
Total intangible assets subject to amortization | 421,269 | (206,470 | ) | 214,799 | ||||||||||||
Acquired in-process research and development (“IPR&D”) | 6,300 | — | 6,300 | |||||||||||||
Total intangible assets | $ | 427,569 | $ | (206,470 | ) | $ | 221,099 | |||||||||
December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
Developed product technology | $ | 348,385 | $ | (121,304 | ) | $ | (44,216 | ) | $ | 182,865 | ||||||
Customer relationships | 20,650 | (14,426 | ) | — | 6,224 | |||||||||||
Trademarks | 14,200 | (3,634 | ) | (2,812 | ) | 7,754 | ||||||||||
Covenants not to compete | 3,100 | (2,959 | ) | — | 141 | |||||||||||
Acquisition-related intangible assets | 386,335 | (142,323 | ) | (47,028 | ) | 196,984 | ||||||||||
Technology licenses and patents | 133,909 | (89,289 | ) | — | 44,620 | |||||||||||
Total intangible assets subject to amortization | 520,244 | (231,612 | ) | (47,028 | ) | 241,604 | ||||||||||
Acquired IPR&D | 42,500 | — | (36,200 | ) | 6,300 | |||||||||||
Total intangible assets | $ | 562,744 | $ | (231,612 | ) | $ | (83,228 | ) | $ | 247,904 | ||||||
Estimated Amortization Expense of Intangible Assets | ' | |||||||||||||||
The annual expected amortization expense of intangible assets subject to amortization as of March 30, 2014, is as follows (in thousands): | ||||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
Fiscal year: | ||||||||||||||||
2014 (remaining 9 months) | $ | 62,409 | $ | 15,687 | ||||||||||||
2015 | 48,114 | 20,056 | ||||||||||||||
2016 | 40,544 | 3,333 | ||||||||||||||
2017 | 24,656 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 175,723 | $ | 39,076 | ||||||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Debt Instrument | ' | |||||||
Schedule of Long-term Debt Instruments | ' | |||||||
The following table reflects the carrying value of the Company’s convertible debt (in thousands): | ||||||||
March 30, | December 29, | |||||||
2014 | 2013 | |||||||
1.5% Notes due 2017 | $ | 1,000,000 | $ | 1,000,000 | ||||
Less: Unamortized bond discount | (159,820 | ) | (170,208 | ) | ||||
Net carrying amount of 1.5% Notes due 2017 | 840,180 | 829,792 | ||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||
Less: Unamortized bond discount | (333,503 | ) | (344,429 | ) | ||||
Net carrying amount of 0.5% Notes due 2020 | 1,166,497 | 1,155,571 | ||||||
Total convertible debt | 2,006,677 | 1,985,363 | ||||||
Less: Convertible short-term debt | (840,180 | ) | — | |||||
Convertible long-term debt | $ | 1,166,497 | $ | 1,985,363 | ||||
1% Sr. Convertible Notes due 2013 [Member] | ' | |||||||
Debt Instrument | ' | |||||||
Interest cost recognized for Convertible notes | ' | |||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1% Notes due 2013 (in thousands): | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2013 | ||||||||
Contractual interest coupon | $ | 2,319 | ||||||
Amortization of bond issuance costs | 696 | |||||||
Amortization of bond discount | 14,058 | |||||||
Total interest cost recognized | $ | 17,073 | ||||||
1.5% Sr. Convertible Notes due 2017 [Member] | ' | |||||||
Debt Instrument | ' | |||||||
Interest cost recognized for Convertible notes | ' | |||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1.5% Notes due 2017 (in thousands): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Contractual interest coupon | $ | 3,750 | $ | 3,750 | ||||
Amortization of bond issuance costs | 667 | 667 | ||||||
Amortization of bond discount | 10,192 | 9,519 | ||||||
Total interest cost recognized | $ | 14,609 | $ | 13,936 | ||||
0.5% Sr. Convertible Notes due 2020 [Member] | ' | |||||||
Debt Instrument | ' | |||||||
Interest cost recognized for Convertible notes | ' | |||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 0.5% Notes due 2020 (in thousands): | ||||||||
Three months ended | ||||||||
March 30, | ||||||||
2014 | ||||||||
Contractual interest coupon | $ | 1,875 | ||||||
Amortization of bond issuance costs | 659 | |||||||
Amortization of bond discount | 10,771 | |||||||
Total interest cost recognized | $ | 13,305 | ||||||
Equity_and_ShareBased_Compensa
Equity and Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Dividends Declared | ' | ||||||||||||
Through March 30, 2014, the Company’s Board of Directors declared the following dividends: | |||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 21, 2014 | $ | 0.225 | February 3, 2014 | $ | 51.7 | February 24, 2014 | |||||||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ||||||||||||
The fair value of the Company’s stock options granted, excluding unvested stock options assumed through acquisitions, was estimated using the following weighted-average assumptions: | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Dividend yield | 1.25% – 1.44% | —% | |||||||||||
Expected volatility | 0.32 | 0.38 | |||||||||||
Risk-free interest rate | 1.22% | 0.67% | |||||||||||
Expected term | 4.4 years | 4.4 years | |||||||||||
Estimated annual forfeiture rate | 8.51% | 8.59% | |||||||||||
Weighted-average fair value at grant date | $18.53 | $16.46 | |||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||||||||||
The fair value of the Company’s ESPP shares issued to employees was estimated using the following weighted-average assumptions: | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Dividend yield | 1.65% | —% | |||||||||||
Expected volatility | 0.31 | 0.33 | |||||||||||
Risk-free interest rate | 0.08% | 0.13% | |||||||||||
Expected term | ½ year | ½ year | |||||||||||
Weighted-average fair value at purchase date | $17.25 | $12.54 | |||||||||||
Stock options and stock appreciation rights | ' | ||||||||||||
A summary of stock option and SARs activities under all of the Company’s share-based compensation plans as of March 30, 2014 and changes during the three months ended March 30, 2014 are presented below (in thousands, except for weighted-average exercise price and remaining contractual term): | |||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||
Options and SARs outstanding at December 29, 2013 | 6,593 | $ | 40.66 | 4.2 | $ | 195,018 | |||||||
Granted | 937 | 74.5 | |||||||||||
Exercised | (1,634 | ) | 38.48 | 57,828 | |||||||||
Forfeited | (58 | ) | 49.08 | ||||||||||
Expired | (1 | ) | 40.77 | ||||||||||
Options and SARs outstanding at March 30, 2014 | 5,837 | 46.62 | 4.7 | 198,394 | |||||||||
Options and SARs vested and expected to vest after March 30, 2014, net of forfeitures | 5,445 | 45.75 | 4.6 | 189,811 | |||||||||
Options and SARs exercisable at March 30, 2014 | 2,188 | 33.69 | 3.2 | 102,668 | |||||||||
Summary of the changes in RSUs outstanding | ' | ||||||||||||
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plans during the three months ended March 30, 2014 is presented below (in thousands, except for weighted-average grant date fair value): | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||
Non-vested share units at December 29, 2013 | 4,454 | $ | 49.87 | $ | 221,457 | ||||||||
Granted | 1,970 | 74.5 | |||||||||||
Vested | (1,077 | ) | 46.29 | 80,409 | |||||||||
Forfeited | (83 | ) | 52.04 | ||||||||||
Non-vested share units at March 30, 2014 | 5,264 | 59.63 | 314,389 | ||||||||||
Share-based compensation expense | ' | ||||||||||||
The following tables set forth the detailed allocation of the share-based compensation expense (in thousands): | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Share-based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 2,610 | $ | 1,717 | |||||||||
Research and development | 15,675 | 11,640 | |||||||||||
Sales and marketing | 6,257 | 3,871 | |||||||||||
General and administrative | 5,488 | 4,506 | |||||||||||
Total share-based compensation expense | 30,030 | 21,734 | |||||||||||
Total tax benefit recognized | (8,776 | ) | (6,916 | ) | |||||||||
Decrease in net income | $ | 21,254 | $ | 14,818 | |||||||||
Share-based compensation expense by type of award: | |||||||||||||
Stock options and SARs | $ | 7,924 | $ | 8,269 | |||||||||
RSUs | 19,465 | 11,970 | |||||||||||
ESPP | 2,641 | 1,495 | |||||||||||
Total share-based compensation expense | 30,030 | 21,734 | |||||||||||
Total tax benefit recognized | (8,776 | ) | (6,916 | ) | |||||||||
Decrease in net income | $ | 21,254 | $ | 14,818 | |||||||||
Fair value of options and RSUs | ' | ||||||||||||
The total grant date fair value of options and RSUs vested during the three months ended March 30, 2014 and March 31, 2013 was as follows (in thousands): | |||||||||||||
Three months ended | |||||||||||||
March 30, | March 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Options | $ | 10,228 | $ | 14,568 | |||||||||
RSUs | 49,866 | 29,821 | |||||||||||
Total grant date fair value of vested options and RSUs | $ | 60,094 | $ | 44,389 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Income Tax Contingency [Line Items] | ' | |||||||
Income Tax Expense And Effective Tax Rate | ' | |||||||
The following table presents the provision for income taxes and the effective tax rate (in thousands, except percentages): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Provision for income taxes | $ | 140,591 | $ | 67,665 | ||||
Effective tax rate | 34.3 | % | 28.9 | % |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of basic and diluted net income (loss) per share | ' | |||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||
Three months ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Numerator for basic net income per share: | ||||||||
Net income | $ | 268,948 | $ | 166,229 | ||||
Denominator for basic net income per share: | ||||||||
Weighted-average common shares outstanding | 225,845 | 242,519 | ||||||
Basic net income per share | $ | 1.19 | $ | 0.69 | ||||
Numerator for diluted net income per share: | ||||||||
Net income | $ | 268,948 | $ | 166,229 | ||||
Denominator for diluted net income per share: | ||||||||
Weighted-average common shares outstanding | 225,845 | 242,519 | ||||||
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,103 | 3,058 | ||||||
1.5% Notes due 2017 | 5,702 | — | ||||||
Warrants | 264 | — | ||||||
Shares used in computing diluted net income per share | 234,914 | 245,577 | ||||||
Diluted net income per share | $ | 1.14 | $ | 0.68 | ||||
Anti-dilutive shares excluded from net income per share calculation | 33,000 | 68,296 | ||||||
Commitments_Contingencies_and_1
Commitments Contingencies and Guarantees (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||
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 initial and refinanced leases) in both Japanese yen (in billions) and U.S. dollar-equivalent (in thousands) based upon the exchange rate at March 30, 2014: | |||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen) | (U.S. dollar) | ||||||||||||||||||||
Flash Partners | |||||||||||||||||||||
April 2010 | Refinanced | ¥ | 1 | $ | 9,112 | 2014 | |||||||||||||||
January 2011 | Refinanced | 1 | 9,707 | 2014 | |||||||||||||||||
Nov-11 | Refinanced | 3.9 | 38,086 | 2014 | |||||||||||||||||
Mar-12 | Refinanced | 2.9 | 28,555 | 2015 | |||||||||||||||||
Mar-14 | Initial | 5 | 48,481 | 2019 | |||||||||||||||||
13.8 | 133,941 | ||||||||||||||||||||
Flash Alliance | |||||||||||||||||||||
Mar-12 | Initial | 6.6 | 64,555 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 12.6 | 122,094 | 2017 | |||||||||||||||||
Mar-14 | Initial | 5 | 48,896 | 2019 | |||||||||||||||||
24.2 | 235,545 | ||||||||||||||||||||
Flash Forward | |||||||||||||||||||||
Nov-11 | Initial | 10.2 | 99,317 | 2016 | |||||||||||||||||
Mar-12 | Initial | 6.4 | 62,840 | 2017 | |||||||||||||||||
Jul-12 | Initial | 2.5 | 24,216 | 2017 | |||||||||||||||||
19.1 | 186,373 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 57.1 | $ | 555,859 | |||||||||||||||||
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 March 30, 2014 in U.S. dollars based upon the yen/dollar exchange rate at March 30, 2014 (in thousands): | |||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
Year 1 | $ | 155,624 | $ | 37,950 | $ | 193,574 | |||||||||||||||
Year 2 | 115,895 | 17,699 | 133,594 | ||||||||||||||||||
Year 3 | 85,475 | 26,261 | 111,736 | ||||||||||||||||||
Year 4 | 33,440 | 53,922 | 87,362 | ||||||||||||||||||
Year 5 | 13,628 | 15,965 | 29,593 | ||||||||||||||||||
Total guarantee obligations | $ | 404,062 | $ | 151,797 | $ | 555,859 | |||||||||||||||
Contractual Obligations | ' | ||||||||||||||||||||
Contractual cash obligations and commitments as of March 30, 2014 are as follows (in thousands): | |||||||||||||||||||||
Total | 1 Year (Remaining 9 months in 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 | $ | 17,451 | (5) | $ | 6,029 | $ | 9,219 | $ | 2,060 | $ | 143 | ||||||||||
Flash Partners (1) | 679,740 | (5)(6) | 113,078 | 366,261 | 178,394 | 22,007 | |||||||||||||||
Flash Alliance (1) | 2,098,738 | (5)(6) | 413,220 | 1,103,143 | 477,107 | 105,268 | |||||||||||||||
Flash Forward (1) | 901,628 | (5)(6) | 346,912 | 335,840 | 166,935 | 51,941 | |||||||||||||||
Toshiba research and development | 136,855 | (5) | 93,357 | 43,498 | — | — | |||||||||||||||
Capital equipment purchase commitments | 52,187 | 51,833 | 328 | 26 | — | ||||||||||||||||
1.5% Notes due 2017 principal and interest (2) | 1,060,000 | 15,000 | 30,000 | 1,015,000 | — | ||||||||||||||||
0.5% Notes due 2020 principal and interest (3) | 1,552,250 | 7,250 | 15,000 | 15,000 | 1,515,000 | ||||||||||||||||
Operating expense commitments | 56,742 | 56,239 | 503 | — | — | ||||||||||||||||
Noncancelable production purchase commitments (4) | 255,439 | (5) | 255,439 | — | — | — | |||||||||||||||
Total contractual cash obligations | $ | 6,811,030 | $ | 1,358,357 | $ | 1,903,792 | $ | 1,854,522 | $ | 1,694,359 | |||||||||||
(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 March 30, 2014. | ||||||||||||||||||||
(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): | |||||||||||||||||||||
March 30, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 555,859 | |||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 57.1 billion Japanese yen, or approximately $556 million based upon the exchange rate at March 30, 2014. | ||||||||||||||||||||
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 2022. Future minimum lease payments are presented below (in thousands): | |||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||
2014 (Remaining 9 months) | $ | 6,436 | |||||||||||||||||||
2015 | 6,794 | ||||||||||||||||||||
2016 | 3,136 | ||||||||||||||||||||
2017 | 1,477 | ||||||||||||||||||||
2018 | 583 | ||||||||||||||||||||
2019 and thereafter | 143 | ||||||||||||||||||||
Operating leases, gross | 18,569 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (1,118 | ) | |||||||||||||||||||
Operating leases, net | $ | 17,451 | |||||||||||||||||||
Net rent expense | ' | ||||||||||||||||||||
Net rent expense was as follows (in thousands): | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 30, | March 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Rent expense, net | $ | 1,624 | $ | 1,843 | |||||||||||||||||
Related_Parties_and_Strategic_1
Related Parties and Strategic Investments (Tables) | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | ' | |||||||
The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate at each respective balance sheet date, as a result of its involvement with Flash Ventures, is presented below (in millions). The Flash Venture investments are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. | ||||||||
March 30, | December 29, | |||||||
2014 | 2013 | |||||||
Notes receivable | $ | 606 | $ | 593 | ||||
Equity investments | 553 | 541 | ||||||
Operating lease guarantees | 556 | 492 | ||||||
Prepayments | — | 5 | ||||||
Maximum estimable loss exposure | $ | 1,715 | $ | 1,631 | ||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Textuals) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 |
USD ($) | JPY (¥) | JPY (¥) | JPY (¥) | |
Organization and Presentation | ' | ' | ' | ' |
Exchange rate used to translate Japanese yen to U.S. dollar | ' | 102.69 | 104.94 | 94.11 |
Number of Weeks in Fiscal Quarter | 13 | ' | ' | ' |
Payments Related to Tax Withholding for Share-based Compensation | $24.40 | ' | ' | ' |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements-Cash and Mkt Securities (Details 1) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents | $1,116,938 | $986,246 | $1,148,110 | $995,470 |
Short-term marketable securities | 1,692,801 | 1,919,611 | ' | ' |
Long-term marketable securities | 3,508,081 | 3,179,471 | ' | ' |
Total cash, cash equivalents and marketable securities | $6,317,820 | $6,085,328 | ' | ' |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements-Fin Assets and Liabilities 1 (Details 2) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Derivative liabilities | $17,129,000 | $45,741,000 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Total financial assets | 0 | 0 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Total financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Total financial assets | 6,135,149,000 | 5,906,393,000 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Total financial liabilities | 17,129,000 | 45,859,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Total financial assets | 1,027,165,000 | 920,557,000 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Total financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Total financial assets | 5,107,984,000 | 4,985,836,000 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Total financial liabilities | 17,129,000 | 45,859,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Total financial assets | 0 | 0 |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Total financial liabilities | 0 | 0 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Derivative liabilities | 17,129,000 | 45,859,000 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Derivative liabilities | 0 | 0 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Derivative liabilities | 17,129,000 | 45,859,000 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial Liabilities measured at fair value on a recurring basis | ' | ' |
Derivative liabilities | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Money market funds | 884,279,000 | 760,363,000 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Money market funds | 884,279,000 | 760,363,000 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Money market funds | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Money market funds | 0 | 0 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Fixed income securities | 5,250,845,000 | 5,145,253,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Fixed income securities | 142,886,000 | 160,194,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Fixed income securities | 5,107,959,000 | 4,985,059,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Fixed income securities | 0 | 0 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Derivative assets | 25,000 | 777,000 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Derivative assets | 0 | 0 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Derivative assets | 25,000 | 777,000 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis | ' | ' |
Derivative assets | $0 | $0 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements-Fin Assets and Liabilities 2 (Details 3) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Short-term marketable securities | $1,692,801,000 | $1,919,611,000 | ||
Long-term marketable securities | 3,508,081,000 | 3,179,471,000 | ||
Other current assets | 177,532,000 | 166,885,000 | ||
Other current assets and other non-current assets | 95,330,000 | 167,430,000 | ||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Total financial assets | 0 | 0 | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Total financial assets | 6,135,149,000 | 5,906,393,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Total financial liabilities | 17,129,000 | 45,859,000 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Total financial assets | 1,027,165,000 | 920,557,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Total financial assets | 5,107,984,000 | 4,985,836,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Total financial liabilities | 17,129,000 | 45,859,000 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Total financial assets | 0 | 0 | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Total financial liabilities | 0 | 0 | ||
Other Current Accued Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other Current Accrued Liabilities, Fair Value Disclosure | 17,129,000 | 45,741,000 | ||
Other Current Accued Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other Current Accrued Liabilities, Fair Value Disclosure | 0 | 0 | ||
Other Current Accued Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other Current Accrued Liabilities, Fair Value Disclosure | 17,129,000 | 45,741,000 | ||
Other Current Accued Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other Current Accrued Liabilities, Fair Value Disclosure | 0 | 0 | ||
Non-current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other liabilities, Fair Value Disclosure | 0 | 118,000 | ||
Non-current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other liabilities, Fair Value Disclosure | 0 | 0 | ||
Non-current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other liabilities, Fair Value Disclosure | 0 | 118,000 | ||
Non-current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial Liabilities measured at fair value on a recurring basis | ' | ' | ||
Other liabilities, Fair Value Disclosure | 0 | 0 | ||
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Cash equivalents | 934,242,000 | [1] | 806,534,000 | [1] |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Cash equivalents | 884,279,000 | [1] | 773,435,000 | [1] |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Cash equivalents | 49,963,000 | [1] | 33,099,000 | [1] |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Cash equivalents | 0 | [1] | 0 | [1] |
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Short-term marketable securities | 1,692,801,000 | 1,919,611,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Short-term marketable securities | 22,093,000 | 15,090,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Short-term marketable securities | 1,670,708,000 | 1,904,521,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Short-term marketable securities | 0 | 0 | ||
Long term Marketable Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Long-term marketable securities | 3,508,081,000 | 3,179,471,000 | ||
Long term Marketable Securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Long-term marketable securities | 120,793,000 | 132,032,000 | ||
Long term Marketable Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Long-term marketable securities | 3,387,288,000 | 3,047,439,000 | ||
Long term Marketable Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Long-term marketable securities | 0 | 0 | ||
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Other current assets | 25,000 | 777,000 | ||
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Other current assets | 0 | 0 | ||
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Other current assets | 25,000 | 777,000 | ||
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | ' | ' | ||
Other current assets | $0 | $0 | ||
[1] | Cash equivalents exclude cash of $182.7 million and $179.7 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of MarchB 30, 2014 and DecemberB 29, 2013, respectively. |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements-AFS Investments (Details 4) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Dec. 29, 2013 |
Fixed Income Securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | $5,233,370 | $5,128,833 |
Gross Unrealized Gain | 20,676 | 20,599 |
Gross Unrealized Loss | -3,201 | -4,179 |
Fair Value | 5,250,845 | 5,145,253 |
U.S. Treasury securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 143,141 | 160,598 |
Gross Unrealized Gain | 6 | 21 |
Gross Unrealized Loss | -261 | -424 |
Fair Value | 142,886 | 160,195 |
U.S. Government-sponsored agency securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 0 | 8,112 |
Gross Unrealized Gain | 0 | 10 |
Gross Unrealized Loss | 0 | -1 |
Fair Value | 0 | 8,121 |
International Government Securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 55,090 | 38,492 |
Gross Unrealized Gain | 2 | 1 |
Gross Unrealized Loss | -200 | -224 |
Fair Value | 54,892 | 38,269 |
Corporate notes and bonds [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 948,512 | 864,331 |
Gross Unrealized Gain | 1,660 | 1,504 |
Gross Unrealized Loss | -928 | -1,565 |
Fair Value | 949,244 | 864,270 |
Asset-backed securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 216,385 | 226,620 |
Gross Unrealized Gain | 137 | 114 |
Gross Unrealized Loss | -239 | -170 |
Fair Value | 216,283 | 226,564 |
Mortgage-backed securities [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 83,951 | 86,542 |
Gross Unrealized Gain | 107 | 18 |
Gross Unrealized Loss | -277 | -554 |
Fair Value | 83,781 | 86,006 |
Municipal notes and bonds [Member] | ' | ' |
Available-for-sale investments | ' | ' |
Amortized Cost | 3,786,291 | 3,744,138 |
Gross Unrealized Gain | 18,764 | 18,931 |
Gross Unrealized Loss | -1,296 | -1,241 |
Fair Value | $3,803,759 | $3,761,828 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements-AFS FV and Unrealized Losses (Details 5) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 30, 2014 |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | $1,124,912 |
Less than 12 months, Gross Unrealized Loss | -3,197 |
Greater than 12 months, Fair Value | 294 |
Greater than 12 months, Gross Unrealized Loss | -4 |
U.S. Treasury securities [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 126,006 |
Less than 12 months, Gross Unrealized Loss | -261 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
International Government Securities [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 47,879 |
Less than 12 months, Gross Unrealized Loss | -200 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
Corporate notes and bonds [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 414,858 |
Less than 12 months, Gross Unrealized Loss | -928 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
Asset-backed securities [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 99,496 |
Less than 12 months, Gross Unrealized Loss | -239 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
Mortgage-backed Securities [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 46,368 |
Less than 12 months, Gross Unrealized Loss | -273 |
Greater than 12 months, Fair Value | 294 |
Greater than 12 months, Gross Unrealized Loss | -4 |
Municipal notes and bonds [Member] | ' |
Available-for-sale securities that were in an unrealized gain position | ' |
Less than 12 months, Fair Value | 390,305 |
Less than 12 months, Gross Unrealized Loss | -1,296 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | $0 |
Investments_and_Fair_Value_Mea7
Investments and Fair Value Measurements-AFS Realized Gains and Losses (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Gross realized gains and (losses) on sales of available-for-sale securities | ' | ' |
Gross realized gains | $1,013 | $718 |
Gross realized losses | ($443) | ($1,032) |
Investments_and_Fair_Value_Mea8
Investments and Fair Value Measurements-Fixed Income Maturities (Details 7) (Fixed Income Securities [Member], USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Fixed Income Securities [Member] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' |
Amortized Cost, due in one year or less | $1,286,856 | ' |
Amortized Cost, due in years two through five | 3,655,004 | ' |
Amortized Cost, due in years six through ten | 79,657 | ' |
Amortized Cost, due after year ten | 211,853 | ' |
Amortized Cost | 5,233,370 | 5,128,833 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' |
Fair Value, due in one year or less | 1,290,919 | ' |
Fair Value, due in years two through five | 3,668,402 | ' |
Fair Value, due in years six through ten | 79,670 | ' |
Fair Value, due after year ten | 211,854 | ' |
Fair Value | $5,250,845 | $5,145,253 |
Investments_and_Fair_Value_Mea9
Investments and Fair Value Measurements-Debt Instrument FV (Details 8) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Related costs and the fair values based on quoted market prices | ' | ' |
Convertible debt, carrying value | $2,006,677 | $1,985,363 |
Convertible Debt [Member] | ' | ' |
Related costs and the fair values based on quoted market prices | ' | ' |
Convertible debt, carrying value | 2,006,677 | 1,985,363 |
Convertible debt, fair value | 3,285,095 | 2,947,450 |
1.5% Sr. Convertible Notes due 2017 [Member] | ' | ' |
Related costs and the fair values based on quoted market prices | ' | ' |
Convertible debt, carrying value | 840,180 | 829,792 |
Convertible debt, fair value | 1,636,760 | 1,467,160 |
0.5% Sr. Convertible Notes due 2020 [Member] | ' | ' |
Related costs and the fair values based on quoted market prices | ' | ' |
Convertible debt, carrying value | 1,166,497 | 1,155,571 |
Convertible debt, fair value | $1,648,335 | $1,480,290 |
Recovered_Sheet1
Investments and Fair Value Measurements (Details Textual) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash | $182,700,000 | $179,700,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | ' |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | ' |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | ' |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | $0 | $0 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities Derivatives and Hedging Activities - Outstanding Designated Forward Contracts (Details 1) | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 |
In Thousands, unless otherwise specified | Cash Flow Hedge Buy [Member] | Cash Flow Hedge Sell [Member] | Realized within twelve months [Member] | Realized within twelve months [Member] |
USD ($) | USD ($) | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | |
USD ($) | JPY (¥) | |||
Derivatives and Hedging Activities | ' | ' | ' | ' |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | ' | ' | ($15,990) | ' |
Cash Flow Hedge | ' | ' | ' | ' |
Notional amount of cash flow hedge transactions | $161,400 | $21,500 | $458,513 | ¥ 47,000,000 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities - Derivative Contracts (Details 2) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Non-designated cash flow hedges, assets | ' | ' |
Total derivatives, assets | $25 | $777 |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | ' | ' |
Non-designated cash flow hedges, assets | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Non-designated, Assets | 25 | 777 |
Foreign Exchange Contract [Member] | Other Noncurrent Assets [Member] | ' | ' |
Non-designated cash flow hedges, assets | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Non-designated, Assets | 0 | 0 |
Foreign Exchange Contract [Member] | Other Current Accrued Liabilities [Member] | ' | ' |
Designated cash flow hedges, liabilities | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Liabilities | 15,990 | 38,375 |
Non-designated cash flow hedges, liabilities | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Non-designated, Liabilities | 1,139 | 7,366 |
Total derivatives, liabilities | 17,129 | 45,741 |
Foreign Exchange Contract [Member] | Non-current Liabilities [Member] | ' | ' |
Designated cash flow hedges, liabilities | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Liabilities | 0 | 118 |
Non-designated cash flow hedges, liabilities | ' | ' |
Cash Flow Hedge Derivative at Gross Fair Value, Non-designated, Liabilities | 0 | 0 |
Total derivatives, liabilities | $0 | $118 |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities - Impact on Earnings (Details 3) (Foreign Exchange Contract [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Foreign Exchange Contract [Member] | ' | ' |
Effective portion of designated cash flow derivative contracts | ' | ' |
Amount of gain (loss) recognized in OCI | $13,468 | ($30,630) |
Amount of gain (loss) reclassified from AOCI to earnings | ($1,564) | ($1,441) |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities - Ineffective Portion (Details 4) (Foreign Exchange Contract [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Foreign Exchange Contract [Member] | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Foreign exchange forward contracts | ($458) | ($307) |
Derivatives_and_Hedging_Activi7
Derivatives and Hedging Activities - Effect of Non-designated Contracts (Details 5) (Foreign Exchange Forward [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Foreign Exchange Forward [Member] | ' | ' |
Effect of nondesignated derivative contracts | ' | ' |
Gain (loss) on foreign exchange forward contracts including forward point income | $2,186 | $9,659 |
Gain (loss) from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | ($1,743) | ($11,383) |
Derivatives_and_Hedging_Activi8
Derivatives and Hedging Activities Derivatives and Hedging Activities - Cash Flow Hedge (Details Textuals) (USD $) | Mar. 30, 2014 |
In Thousands, unless otherwise specified | |
Cash Flow Hedge Buy [Member] | ' |
Cash Flow Hedge | ' |
Notional amount of cash flow hedge transactions | $161,400 |
Cash Flow Hedge Sell [Member] | ' |
Cash Flow Hedge | ' |
Notional amount of cash flow hedge transactions | $21,500 |
Derivatives_and_Hedging_Activi9
Derivatives and Hedging Activities Derivatives and Hedging Activities - Gains (Losses) and Netting Activities (Details Textuals) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 |
Realized within twelve months [Member] | |||
Foreign Exchange Contract [Member] | |||
Derivatives and Hedging Activities | ' | ' | ' |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | ' | ' | ($15,990,000) |
Derivative, Netting Activities | ' | ' | ' |
Derivative Liability, Subject to Netting Arrangement, Net | 17,100,000 | 45,200,000 | ' |
Derivative Assets Offsets, Netting Arrangements | $0 | $0 | ' |
Balance_Sheet_InformationRecei
Balance Sheet Information-Receivables (Details 1) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, net | ' | ' |
Accounts receivable | $783,573 | $904,551 |
Allowance for doubtful accounts | -7,646 | -8,274 |
Price protection, promotions and other activities | -179,258 | -213,468 |
Total accounts receivable, net | $596,669 | $682,809 |
Balance_Sheet_InformationInven
Balance Sheet Information-Inventory (Details 2) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventory | ' | ' |
Raw Material | $467,721 | $440,570 |
Work-in-Process | 118,249 | 102,543 |
Finished Goods | 213,913 | 213,862 |
Total Inventory | $799,883 | $756,975 |
Balance_Sheet_InformationOther
Balance Sheet Information-Other Assets (Details 3) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Other Current Assets | ' | ' |
Income tax receivables | $70,200,000 | $7,976,000 |
Other tax-related receivables | 55,124,000 | 62,784,000 |
Other non-trade receivables | 15,425,000 | 37,368,000 |
Prepayment to Flash Forward Ltd. | 0 | 5,144,000 |
Derivative contract receivables | 25,000 | 777,000 |
Prepaid expenses | 12,715,000 | 12,630,000 |
Convertible note issuance costs | 6,355,000 | 0 |
Other current assets | 17,688,000 | 40,206,000 |
Total other current assets | 177,532,000 | 166,885,000 |
Other Assets, Noncurrent | ' | ' |
Prepaid tax on intercompany transactions | 36,654,000 | 37,747,000 |
Convertible note issuance costs | 13,283,000 | 20,612,000 |
Long-term prepaid income tax | 3,168,000 | 66,176,000 |
Other non-current assets | 42,225,000 | 42,895,000 |
Total other non-current assets | $95,330,000 | $167,430,000 |
Balance_Sheet_InformationEquit
Balance Sheet Information-Equity Investments (Details 4) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Related Party Transactions | $1,159,264 | $1,134,620 |
Flash Partners Ltd [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Notes Receivable | 77,904 | 100,057 |
Investments | 194,222 | 190,694 |
Flash Alliance Ltd [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Notes Receivable | 355,439 | 323,995 |
Investments | 290,776 | 283,999 |
Flash Forward Ltd [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Notes Receivable | 172,850 | 169,144 |
Investments | 68,073 | 66,731 |
Flash Ventures [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Related Party Transactions | $1,159,264 | $1,134,620 |
Balance_Sheet_InformationLiabi
Balance Sheet Information-Liabilities (Details 5) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Accrued Liabilities | ' | ' |
Accrued payroll and related expenses | $155,434 | $227,779 |
Derivative contract payables | 17,129 | 45,741 |
Taxes payable | 12,585 | 59,618 |
Other accrued Liabilities | 163,978 | 176,594 |
Total other current accrued liabilities | 349,126 | 509,732 |
Non-current liabilities | ' | ' |
Income tax liabilities | 206,888 | 205,266 |
Deferred credits on intercompany transactions | 11,874 | 15,065 |
Deferred tax liabilities | 4,336 | 3,482 |
Other non-current liabilities | 88,236 | 83,270 |
Total non-current liabilities | $311,334 | $307,083 |
Balance_Sheet_InformationWarra
Balance Sheet Information-Warranty (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' |
Product Warranty Accrual, beginning of period | $43,624 | $38,787 |
Additions and adjustments to cost of revenue | 7,431 | 4,878 |
Usage | -3,490 | -4,693 |
Product Warranty Accrual, end of period | $47,565 | $38,972 |
Balance_Sheet_InformationOCI_D
Balance Sheet Information-OCI (Details 7) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Dec. 29, 2013 |
Accumulated net unrealized gain (loss) on: | ' | ' | ' |
Available-for-sale investments | $11,157 | ' | $10,479 |
Foreign currency translation | -26,729 | ' | -47,440 |
Hedging activities | -24,466 | ' | -39,498 |
Total accumulated other comprehensive loss | -40,038 | ' | -76,459 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | ' | ' | ' |
Available-for-sale investments | 377 | 2,053 | ' |
Foreign currency translation | 3,771 | -18,311 | ' |
Other Comprehensive Income (Loss), Tax | $4,148 | ($16,258) | ' |
Balance_Sheet_InformationAOCI_
Balance Sheet Information-AOCI (Details 8) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Other Comprehensive Income | ' | ' |
Cost of revenue | ($741,039) | ($799,383) |
Research and development | -198,829 | -171,125 |
Provision for income taxes | -140,591 | -67,665 |
Total reclassifications for the period, net of tax | -1,189 | -1,930 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Other Comprehensive Income | ' | ' |
Interest (expense) and other income (expense), net | 570 | -314 |
Provision for income taxes | -195 | -175 |
Total reclassifications for the period, net of tax | 375 | -489 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Other Comprehensive Income | ' | ' |
Cost of revenue | -1,361 | -1,441 |
Research and development | -203 | 0 |
Total reclassifications for the period, net of tax | ($1,564) | ($1,441) |
Balance_Sheet_Information_Deta
Balance Sheet Information (Details Textuals) (USD $) | 3 Months Ended | ||
Mar. 30, 2014 | Mar. 31, 2013 | Dec. 29, 2013 | |
Balance Sheet Information | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due | $0 | ' | $0 |
Provision for Loan and Lease Losses | $0 | $0 | ' |
Product Warranties Disclosures [Abstract] | ' | ' | ' |
Weighted Average Warranty For Companys Products | '3 years | ' | ' |
Maximum Warranty For Companys Products | '10 years | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets-Goodwill (Details 1) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 30, 2014 |
Goodwill and Intangible Assets | ' |
Goodwill, Beginning Balance | $318,111 |
Adjustment | -181 |
Goodwill, Ending Balance | $317,930 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets-Intangibles (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 30, 2014 | Dec. 29, 2013 | |
Intangible Assets | ' | ' |
Accumulated Amortization | ($206,470,000) | ($231,612,000) |
Intangible Asset Adjustment | ' | -83,228,000 |
Total Intangible Assets, gross | 427,569,000 | 562,744,000 |
Total Intangible Assets, net | 221,099,000 | 247,904,000 |
Acquired in-process research and development [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Indefinite-lived Intangible Asset | 6,300,000 | 42,500,000 |
Adjustments of indefinite lived intangible assets | ' | -36,200,000 |
Net Carrying Amount, Indefinite-lived Intangible Assets | 6,300,000 | 6,300,000 |
Developed product technology [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 292,769,000 | 348,385,000 |
Accumulated Amortization | -129,520,000 | -121,304,000 |
Adjustments of finite lived intangible assets | ' | -44,216,000 |
Intangible assets subject to amortization | 163,249,000 | 182,865,000 |
Customer relationships [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 7,600,000 | 20,650,000 |
Accumulated Amortization | -2,326,000 | -14,426,000 |
Adjustments of finite lived intangible assets | ' | 0 |
Intangible assets subject to amortization | 5,274,000 | 6,224,000 |
Trademarks [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 8,900,000 | 14,200,000 |
Accumulated Amortization | -1,700,000 | -3,634,000 |
Adjustments of finite lived intangible assets | ' | -2,812,000 |
Intangible assets subject to amortization | 7,200,000 | 7,754,000 |
Covenants not to compete [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 2,400,000 | 3,100,000 |
Accumulated Amortization | -2,400,000 | -2,959,000 |
Adjustments of finite lived intangible assets | ' | 0 |
Intangible assets subject to amortization | 0 | 141,000 |
Technology licenses and patents [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 109,600,000 | 133,909,000 |
Accumulated Amortization | -70,524,000 | -89,289,000 |
Adjustments of finite lived intangible assets | ' | 0 |
Intangible assets subject to amortization | 39,076,000 | 44,620,000 |
Acquisition-related Intangible Assets [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 311,669,000 | 386,335,000 |
Accumulated Amortization | -135,946,000 | -142,323,000 |
Adjustments of finite lived intangible assets | ' | -47,028,000 |
Intangible assets subject to amortization | 175,723,000 | 196,984,000 |
Intangible assets subject to amortization [Member] | ' | ' |
Intangible Assets | ' | ' |
Gross Carrying Amount, Finite-lived Intangible Asset | 421,269,000 | 520,244,000 |
Accumulated Amortization | -206,470,000 | -231,612,000 |
Adjustments of finite lived intangible assets | ' | -47,028,000 |
Intangible assets subject to amortization | $214,799,000 | $241,604,000 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets-Intangible Amortization (Details 3) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Acquisition-related Intangible Assets [Member] | ' | ' |
Estimated Amortization Expense of Intangible Assets | ' | ' |
2014 (remaining 9 months) | $62,409,000 | ' |
2015 | 48,114,000 | ' |
2016 | 40,544,000 | ' |
2017 | 24,656,000 | ' |
Intangible assets subject to amortization | 175,723,000 | 196,984,000 |
Technology licenses and patents [Member] | ' | ' |
Estimated Amortization Expense of Intangible Assets | ' | ' |
2014 (remaining 9 months) | 15,687,000 | ' |
2015 | 20,056,000 | ' |
2016 | 3,333,000 | ' |
2017 | 0 | ' |
Intangible assets subject to amortization | $39,076,000 | $44,620,000 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Dec. 29, 2013 |
Goodwill and Finited-lived Intangible Assets | ' | ' |
Adjustment | ($181) | ' |
Intangible Assets, Net (Excluding Goodwill) | $221,099 | $247,904 |
Financing_ArrangementsCarrying
Financing Arrangements-Carrying Value and Interest (Details 1) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Dec. 29, 2013 | Aug. 31, 2010 | Mar. 30, 2014 | Dec. 29, 2013 | Oct. 23, 2013 |
1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | |||
Debt Summary | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, carrying value | $2,006,677,000 | $1,985,363,000 | $840,180,000 | $829,792,000 | ' | $1,166,497,000 | $1,155,571,000 | ' |
Convertible long-term debt, carrying value | 1,166,497,000 | 1,985,363,000 | ' | ' | ' | ' | ' | ' |
Carrying Value of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, par value | -840,180,000 | 0 | -1,000,000,000 | -1,000,000,000 | -1,000,000,000 | -1,500,000,000 | -1,500,000,000 | -1,500,000,000 |
Unamortized bond discount | ' | ' | -159,820,000 | -170,208,000 | ' | -333,503,000 | -344,429,000 | ' |
Convertible short-term debt conversion obligation | 159,820,000 | 0 | 159,800,000 | ' | ' | ' | ' | ' |
Convertible debt, carrying value | $2,006,677,000 | $1,985,363,000 | $840,180,000 | $829,792,000 | ' | $1,166,497,000 | $1,155,571,000 | ' |
Financing_ArrangmentsInterest_
Financing Arrangments-Interest (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
1% Sr. Convertible Notes due 2013 [Member] | ' | ' |
Interest Cost Recognized For Convertible Notes | ' | ' |
Contractual interest coupon | ' | $2,319 |
Amortization of bond issuance costs | ' | 696 |
Amortization of bond discount | ' | 14,058 |
Total interest cost recognized | ' | 17,073 |
1.5% Sr. Convertible Notes due 2017 [Member] | ' | ' |
Interest Cost Recognized For Convertible Notes | ' | ' |
Contractual interest coupon | 3,750 | 3,750 |
Amortization of bond issuance costs | 667 | 667 |
Amortization of bond discount | 10,192 | 9,519 |
Total interest cost recognized | 14,609 | 13,936 |
0.5% Sr. Convertible Notes due 2020 [Member] | ' | ' |
Interest Cost Recognized For Convertible Notes | ' | ' |
Contractual interest coupon | 1,875 | ' |
Amortization of bond issuance costs | 659 | ' |
Amortization of bond discount | 10,771 | ' |
Total interest cost recognized | $13,305 | ' |
Financing_Arrangements_Details
Financing Arrangements (Details Textuals) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | 31-May-13 | Mar. 30, 2014 | 15-May-13 | Aug. 31, 2010 | Mar. 30, 2014 | Dec. 29, 2013 | Oct. 27, 2013 | Mar. 30, 2014 | Dec. 29, 2013 | Oct. 23, 2013 |
1% Sr. Convertible Notes due 2013 [Member] | 1% Sr. Convertible Notes due 2013 [Member] | 1% Sr. Convertible Notes due 2013 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | |||
Debt Instrument Details | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, par value | $840,180,000 | $0 | ' | ' | ' | $1,000,000,000 | $1,000,000,000 | $1,000,000,000 | ' | $1,500,000,000 | $1,500,000,000 | $1,500,000,000 |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | 7.40% | ' | 6.85% | 6.85% | 6.85% | ' | 4.43% | ' | 4.43% |
Convertible Senior Notes, issuance date | ' | ' | ' | ' | ' | 20-Aug-10 | ' | ' | 29-Oct-13 | ' | ' | ' |
Convertible Senior Notes, due date | ' | ' | 15-May-13 | ' | ' | 15-Aug-17 | ' | ' | 15-Oct-20 | ' | ' | ' |
Convertible senior notes, interest rate | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | 0.50% |
Conversion rate, number of share converted | ' | ' | ' | ' | ' | 19.0931 | 19.2935 | ' | 10.847 | ' | ' | ' |
Conversion of notes, base conversion price | ' | ' | ' | ' | ' | 1,000 | 1,000 | ' | 1,000 | ' | ' | ' |
Conversion price per share | ' | ' | ' | ' | ' | $52.37 | $51.83 | ' | ' | ' | ' | $92.19 |
Net proceeds from the offering of the Notes due | ' | ' | ' | ' | ' | 981,000,000 | ' | ' | 1,480,000,000 | ' | ' | ' |
Principal amount of the liability component | ' | ' | ' | ' | ' | 706,000,000 | ' | ' | ' | ' | ' | 1,150,000,000 |
Carrying value of the equity component | ' | ' | ' | ' | ' | 294,000,000 | 134,200,000 | 294,000,000 | ' | 352,000,000 | ' | 352,000,000 |
Debt Instrument, Unamortized Bond Discount | ' | ' | ' | ' | ' | ' | 159,820,000 | 170,208,000 | ' | 333,503,000 | 344,429,000 | ' |
Remaining amortization period of convertible debt | ' | ' | ' | ' | ' | ' | '3 years 5 months | ' | ' | '6 years 7 months | ' | ' |
Unamortized Debt Issuance Expense | 13,283,000 | 20,612,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' |
Debt Redemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | 928,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | ' | ' | ' | 73.325 | 72.5633 | ' | ' | ' | ' | 122.922 |
Number of shares counterparties can purchase from entity | ' | ' | ' | ' | ' | 19,100,000 | 19,300,000 | ' | 16,300,000 | ' | ' | ' |
Expiry period of Warrants | ' | ' | ' | ' | ' | ' | '40 different dates from NovemberB 13, 2017 through JanuaryB 10, 2018 | ' | '40 different dates from JanuaryB 13, 2021 through MarchB 11, 2021 | ' | ' | ' |
Number of warrants exercised | ' | ' | ' | ' | 0 | ' | ' | 0 | ' | 0 | ' | ' |
Convertible Bond Hedge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bond hedge options, exercise price | ' | ' | ' | ' | ' | $52.37 | $51.83 | ' | $92.19 | ' | ' | ' |
Number of shares an entity can purchase from counterparties | ' | ' | ' | ' | ' | 19,100,000 | 19,300,000 | ' | 16,300,000 | ' | ' | ' |
Number of shares purchased under bond hedge | ' | ' | ' | ' | 0 | ' | ' | 0 | ' | 0 | ' | ' |
Temporary Conversion Obligation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible short-term debt conversion obligation | $159,820,000 | $0 | ' | ' | ' | ' | $159,800,000 | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | $80.61 | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, If-Converted Shares for Value in Excess of Principal | ' | ' | ' | ' | ' | ' | 6,900,000 | ' | ' | ' | ' | ' |
Share_Repurchases_Details_Text
Share Repurchases (Details Textuals) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Jul. 31, 2013 | Oct. 27, 2011 | Mar. 30, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Sep. 29, 2013 | Jul. 31, 2013 | Apr. 08, 2014 |
Structured Share Repurchase Program [Member] | Structured Share Repurchase Program [Member] | Accelerated Share Repurchase Program [Member] | Accelerated Share Repurchase Program [Member] | Accelerated Share Repurchase Program [Member] | Subsequent Event [Member] | ||||
Accelerated Share Repurchase Program [Member] | |||||||||
Share Repurchase Program Summary | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | $2,500,000,000 | $1,250,000,000 | $3,750,000,000 | ' | ' | ' | ' | ' | ' |
Share Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | 1,840,000,000 | ' | ' | ' | ' | ' | ' |
Share Repurchased and Retired During Program, Shares | ' | ' | ' | 31.7 | ' | ' | ' | ' | 15.1 |
Payments for Repurchase of Common Stock, Aggregate | ' | ' | ' | ' | 1,910,000,000 | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | 1.3 | ' | ' | 14.5 | ' | 0.6 |
Payments for Repurchase of Common Stock During Period | ' | ' | ' | 90,000,000 | ' | ' | ' | ' | ' |
Accelerated Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront Payment Under Accelerated Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' |
Accelerated Share Repurchases, Final Price Paid Per Share | ' | ' | ' | ' | ' | ' | ' | ' | $66.07 |
Program End Date | ' | ' | ' | ' | ' | 8-Apr-14 | ' | ' | ' |
Share-based Benefit Plan Repurchases [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments Related to Tax Withholding for Share-based Compensation | ' | ' | $24,400,000 | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_and_ShareB1
Stockholders Equity and Share-Based Compensation Dividends (Details 1) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Jun. 29, 2014 |
Subsequent Event [Member] | |||
Dividends Payable [Line Items] | ' | ' | ' |
Dividends Payable, Date Declared | 21-Jan-14 | ' | 15-Apr-14 |
Cash dividends declared per share | $0.23 | $0 | $0.23 |
Dividends Payable, Date of Record | 3-Feb-14 | ' | 5-May-14 |
Dividends | $51.70 | ' | ' |
Dividends Payable, Date to be Paid | 24-Feb-14 | ' | 27-May-14 |
ShareBased_CompensationValuati
Share-Based Compensation-Valuation Parameters (Details 1) (USD $) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Employee Stock Option [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Expected volatility | 32.00% | 38.00% |
Risk-free interest rate | 1.22% | 0.67% |
Expected term | '4 years 5 months | '4 years 5 months |
Estimated annual forfeiture rate | 8.51% | 8.59% |
Weighted-average fair value at grant date | $18.53 | $16.46 |
Employee Stock Purchase Plan Shares [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Expected volatility | 31.00% | 33.00% |
Risk-free interest rate | 0.08% | 0.13% |
Expected term | '0 years 6 months | '0 years 6 months |
Weighted-average fair value at grant date | $17.25 | $12.54 |
Maximum [Member] | Employee Stock Option [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Dividend yield | 1.44% | 0.00% |
Maximum [Member] | Employee Stock Purchase Plan Shares [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Dividend yield | 1.65% | 0.00% |
Minimum [Member] | Employee Stock Option [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Dividend yield | 1.25% | 0.00% |
Minimum [Member] | Employee Stock Purchase Plan Shares [Member] | ' | ' |
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | ' | ' |
Dividend yield | 1.65% | 0.00% |
ShareBased_CompensationOption_
Share-Based Compensation-Option Rollforward (Details 2) (Employee Stock Option [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Dec. 29, 2013 |
Employee Stock Option [Member] | ' | ' |
Stock options and stock appreciation rights | ' | ' |
Options and SARs outstanding Beginning Balance, Shares | 6,593 | ' |
Options and SARs outstanding Beginning Balance, Weighted Average Exercise Price (per share) | $40.66 | ' |
Options and SARs outstanding Beginning Balance, Weighted Average Remaining Contractual Term | '4 years 8 months | '4 years 2 months |
Options and SARs outstanding Beginning Balance, Aggregate Intrinsic Value | $195,018 | ' |
Granted, Shares | 937 | ' |
Granted Weighted Average Exercise Price (per share) | $74.50 | ' |
Exercised, Shares | -1,634 | ' |
Exercised Weighted Average Exercise Price (per share) | $38.48 | ' |
Exercised Aggregate Intrinsic Value | 57,828 | ' |
Forfeited, Shares | -58 | ' |
Forfeited Weighted Average Exercise Price (per share) | $49.08 | ' |
Expired, Shares | -1 | ' |
Expired Weighted Average Exercise Price (per share) | $40.77 | ' |
Options and SARs outstanding Ending Balance, shares | 5,837 | 6,593 |
Options and SARs outstanding Ending Balance, Weighted Average Exercise Price (per share) | $46.62 | $40.66 |
Options and SARs outstanding Ending Balance, Weighted Average Remaining Contractual Term | '4 years 8 months | '4 years 2 months |
Options and SARs outstanding Ending Balance, Aggregate Intrinsic Value | 198,394 | 195,018 |
Stock options and stock appreciation rights, expected to vest | ' | ' |
Options and SARs vested and expected to vest, net of forfeitures, Shares | 5,445 | ' |
Options and SARs vested and expected to vest, net of forfeitures,Weighted Average Exercise Price (per share) | $45.75 | ' |
Options and SARs vested and expected to vest, net of forfeitures, Weighted Average Remaining Contractual Term | '4 years 7 months | ' |
Options and SARs vested and expected to vest, net of forfeitures, Aggregate Intrinsic Value | 189,811 | ' |
Stock options and stock appreciation rights, exercisable | ' | ' |
Options and SARs, Exercisable, shares | 2,188 | ' |
Options and SARs, Exercisable, Weighted Average Exercise Price | $33.69 | ' |
Options and SARs, Exercisable, Weighted Average Remaining Contractual Term | '3 years 2 months | ' |
Options and SARs, Exercisable, Intrinsic Value | $102,668 | ' |
ShareBased_CompensationRSU_Rol
Share-Based Compensation-RSU Rollforward (Details 3) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Summary of the changes in RSUs outstanding | ' |
Beginning Balance,Non-vested share units | 4,454 |
Beginning Balance,Non-vested share units Weighted Average Grant Date Fair Value (per share) | $49.87 |
Beginning Balance,Non-vested share units Aggregate Intrinsic Value | $221,457 |
Granted, Shares | 1,970 |
Granted Weighted Average Grant Date Fair Value (per share) | $74.50 |
Vested, Shares | -1,077 |
Vested Weighted Average Grant Date Fair Value (per share) | $46.29 |
Vested Aggregate Intrinsic Value | 80,409 |
Forfeited, Shares | -83 |
Forfeited Weighted Average Grant Date Fair Value (per share) | $52.04 |
Ending Balance Non-vested share units | 5,264 |
Ending Balance Non-vested share units Weighted Average Grant Date Fair Value (per share) | $59.63 |
Ending Balance,Non-vested share units Aggregate Intrinsic Value | $314,389 |
ShareBased_CompensationExpense
Share-Based Compensation-Expense Recognition (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | $30,030 | $21,734 |
Total tax benefit recognized | -8,776 | -6,916 |
Decrease in net income | 21,254 | 14,818 |
Stock options and SARs [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 7,924 | 8,269 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 19,465 | 11,970 |
Employee Stock Purchase Plan Shares [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 2,641 | 1,495 |
Cost of revenue [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 2,610 | 1,717 |
Research and Development [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 15,675 | 11,640 |
Sales and marketing [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | 6,257 | 3,871 |
General and administrative [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Share-based compensation expense | $5,488 | $4,506 |
ShareBased_CompensationGrant_D
Share-Based Compensation-Grant Date Fair Value of Vested Awards (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Grant date fair value of options and RSUs vested | ' | ' |
Options | $10,228 | $14,568 |
RSUs | 49,866 | 29,821 |
Total grant date fair value of vested options and RSUs | $60,094 | $44,389 |
ShareBased_CompensationActivit
Share-Based Compensation-Activity (Details Textuals 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 30, 2014 | Dec. 29, 2013 |
Compensation and Benefits | ' | ' |
Share-based compensation expense capitalized in inventory | $3.40 | $2.70 |
Employee Stock Option [Member] | ' | ' |
Compensation and Benefits | ' | ' |
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 53.9 | ' |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | '2 years 6 months | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Compensation and Benefits | ' | ' |
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 243.4 | ' |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | '3 years 1 month | ' |
Employee Stock Purchase Plan Shares [Member] | ' | ' |
Compensation and Benefits | ' | ' |
Total unrecognized compensation expense for ESPP | $3.50 | ' |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | '0 years 5 months | ' |
Employee Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Purchase price of common stock under Employee stock purchase plan as a percentage of fair market value of share | 85.00% | ' |
Income_Taxes_Income_Taxes_Prov
Income Taxes Income Taxes - Provision (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Income Tax Contingency | ' | ' |
Provision for income taxes | $140,591 | $67,665 |
Effective tax rate | 34.30% | 28.90% |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Dec. 29, 2013 |
Provision For Income Taxes | ' | ' | ' |
Unrecognized tax benefits that would impact the effective tax rate | $92.60 | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 190.9 | ' | 185.3 |
Unrecognized tax benefits income tax penalties and interest expense or income | 0.7 | 0.7 | ' |
Potential Settlement [Member] | ' | ' | ' |
Provision For Income Taxes | ' | ' | ' |
Expected decrease in unrecognized tax benefits within the next twelve months | 78 | ' | ' |
Expiration of Statute of Limitations [Member] | ' | ' | ' |
Provision For Income Taxes | ' | ' | ' |
Expected decrease in unrecognized tax benefits within the next twelve months | $10.30 | ' | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Numerator for basic net income per share: | ' | ' |
Net income | $268,948 | $166,229 |
Denominator for basic net income per share: | ' | ' |
Weighted-average common shares outstanding | 225,845,000 | 242,519,000 |
Basic net income per share | $1.19 | $0.69 |
Numerator for diluted net income per share: | ' | ' |
Net income | $268,948 | $166,229 |
Denominator for diluted net income per share: | ' | ' |
Weighted-average common shares outstanding | 225,845,000 | 242,519,000 |
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,103,000 | 3,058,000 |
1.5% Notes due 2017 | 5,702,000 | 0 |
Warrants | 264,000 | 0 |
Shares used in computing diluted net income per share | 234,914,000 | 245,577,000 |
Diluted net income per share | $1.14 | $0.68 |
Antidilutive Shares | ' | ' |
Anti-dilutive shares excluded from net income per share calculation | 33,000,000 | 68,296,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Guarantees-JV Leases (Details 1) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | |
USD ($) | JPY (¥) | FAL Master Lease Agreement, 2012-03 [Member] | FAL Master Lease Agreement, 2012-03 [Member] | FAL Master Lease Agreement, 2012-07 [Member] | FAL Master Lease Agreement, 2012-07 [Member] | FAL Master Lease Agreement, 2014-03 [Member] | FAL Master Lease Agreement, 2014-03 [Member] | USD ($) | JPY (¥) | FPL Master Lease Agreement, 2010-04 [Member] | FPL Master Lease Agreement, 2010-04 [Member] | FPL Master Lease Agreement, 2011-01 [Member] | FPL Master Lease Agreement, 2011-01 [Member] | FPL Master Lease Agreement, 2011-11 [Member] | FPL Master Lease Agreement, 2011-11 [Member] | FPL Master Lease Agreement, 2012-03 [Member] | FPL Master Lease Agreement, 2012-03 [Member] | FPL Master Lease Agreement, 2014-03 [Member] | FPL Master Lease Agreement, 2014-03 [Member] | USD ($) | JPY (¥) | FFL Master Lease Agreement, 2011-11 [Member] | FFL Master Lease Agreement, 2011-11 [Member] | FFL Master Lease Agreement, 2012-03 [Member] | FFL Master Lease Agreement, 2012-03 [Member] | FFL Master Lease Agreement, 2012-07 [Member] | FFL Master Lease Agreement, 2012-07 [Member] | USD ($) | JPY (¥) | ||||
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | ||||||||||||
Company's portion of the remaining guarantee obligations under each of Flash Ventures' master lease facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Guarantee of Flash Ventures equipment leases | $555,859 | [1] | $492,000 | $235,545 | ¥ 24,200,000 | $64,555 | ¥ 6,600,000 | $122,094 | ¥ 12,600,000 | $48,896 | ¥ 5,000,000 | $133,941 | ¥ 13,800,000 | $9,112 | ¥ 1,000,000 | $9,707 | ¥ 1,000,000 | $38,086 | ¥ 3,900,000 | $28,555 | ¥ 2,900,000 | $48,481 | ¥ 5,000,000 | $186,373 | ¥ 19,100,000 | $99,317 | ¥ 10,200,000 | $62,840 | ¥ 6,400,000 | $24,216 | ¥ 2,500,000 | $555,859 | ¥ 57,100,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 57.1B billion Japanese yen, or approximately $556B million based upon the exchange rate at MarchB 30, 2014. |
Commitments_Contingencies_and_3
Commitments, Contingencies and Guarantees-JV Lease Amounts (Details 2) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Ventures [Member] | Flash Ventures [Member] | Payment of Principal Amortization [Member] | Purchase Option Exercise Price at Final Lease Terms [Member] | |
USD ($) | JPY (¥) | Flash Ventures [Member] | Flash Ventures [Member] | ||||
USD ($) | USD ($) | ||||||
Remaining guarantee obligations | ' | ' | ' | ' | ' | ' | |
Year 1 | ' | ' | $193,574 | ' | $155,624 | $37,950 | |
Year 2 | ' | ' | 133,594 | ' | 115,895 | 17,699 | |
Year 3 | ' | ' | 111,736 | ' | 85,475 | 26,261 | |
Year 4 | ' | ' | 87,362 | ' | 33,440 | 53,922 | |
Year 5 | ' | ' | 29,593 | ' | 13,628 | 15,965 | |
Guarantee of Flash Ventures equipment leases | $555,859 | [1] | $492,000 | $555,859 | ¥ 57,100,000 | $404,062 | $151,797 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 57.1B billion Japanese yen, or approximately $556B million based upon the exchange rate at MarchB 30, 2014. |
Commitments_Contingencies_and_4
Commitments, Contingencies and Guarantees-Commitment Tbl (Details 3) (USD $) | Mar. 30, 2014 | |
Contractual Obligations | ' | |
Facility and other operating leases | $17,451,000 | |
Operating Leases, Future Minimum Payments, Net | 17,451,000 | |
Contractual Obligation | 6,811,030,000 | |
1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Contractual Obligation | 1,358,357,000 | |
2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Contractual Obligation | 1,903,792,000 | |
4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Contractual Obligation | 1,854,522,000 | |
More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Contractual Obligation | 1,694,359,000 | |
Operating Lease Expense [Member] | ' | |
Contractual Obligations | ' | |
Facility and other operating leases | 17,451,000 | [1] |
Operating Leases, Future Minimum Payments, Net | 17,451,000 | [1] |
Operating Lease Expense [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Facility and other operating leases | 6,029,000 | [1] |
Operating Leases, Future Minimum Payments, Net | 6,029,000 | [1] |
Operating Lease Expense [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Facility and other operating leases | 9,219,000 | [1] |
Operating Leases, Future Minimum Payments, Net | 9,219,000 | [1] |
Operating Lease Expense [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Facility and other operating leases | 2,060,000 | [1] |
Operating Leases, Future Minimum Payments, Net | 2,060,000 | [1] |
Operating Lease Expense [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Facility and other operating leases | 143,000 | [1] |
Operating Leases, Future Minimum Payments, Net | 143,000 | [1] |
Toshiba Corporation [Member] | ' | |
Contractual Obligations | ' | |
Research and development commitments | 136,855,000 | [1] |
Toshiba Corporation [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Research and development commitments | 93,357,000 | [1] |
Toshiba Corporation [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Research and development commitments | 43,498,000 | [1] |
Toshiba Corporation [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Research and development commitments | 0 | [1] |
Toshiba Corporation [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Research and development commitments | 0 | [1] |
Capital Equipment Purchase Commitments [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 52,187,000 | |
Capital Equipment Purchase Commitments [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 51,833,000 | |
Capital Equipment Purchase Commitments [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 328,000 | |
Capital Equipment Purchase Commitments [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 26,000 | |
Capital Equipment Purchase Commitments [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | |
Operating Expense Commitments [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 56,742,000 | |
Operating Expense Commitments [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 56,239,000 | |
Operating Expense Commitments [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 503,000 | |
Operating Expense Commitments [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | |
Operating Expense Commitments [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | |
Noncancelable Production Purchase Commitments [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 255,439,000 | [1],[2] |
Noncancelable Production Purchase Commitments [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 255,439,000 | [1],[2] |
Noncancelable Production Purchase Commitments [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | [1],[2] |
Noncancelable Production Purchase Commitments [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | [1],[2] |
Noncancelable Production Purchase Commitments [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Unrecorded Unconditional Purchase Obligation | 0 | [1],[2] |
1.5% Sr. Convertible Notes due 2017 [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 1,060,000,000 | [3] |
1.5% Sr. Convertible Notes due 2017 [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 15,000,000 | [3] |
1.5% Sr. Convertible Notes due 2017 [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 30,000,000 | [3] |
1.5% Sr. Convertible Notes due 2017 [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 1,015,000,000 | [3] |
1.5% Sr. Convertible Notes due 2017 [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 0 | [3] |
0.5% Sr. Convertible Notes due 2020 [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 1,552,250,000 | [4] |
0.5% Sr. Convertible Notes due 2020 [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 7,250,000 | [4] |
0.5% Sr. Convertible Notes due 2020 [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 15,000,000 | [4] |
0.5% Sr. Convertible Notes due 2020 [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 15,000,000 | [4] |
0.5% Sr. Convertible Notes due 2020 [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Convertible senior notes principal and interest | 1,515,000,000 | [4] |
Flash Partners Ltd [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 679,740,000 | [1],[5],[6] |
Flash Partners Ltd [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 113,078,000 | [1],[5],[6] |
Flash Partners Ltd [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 366,261,000 | [1],[5],[6] |
Flash Partners Ltd [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 178,394,000 | [1],[5],[6] |
Flash Partners Ltd [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 22,007,000 | [1],[5],[6] |
Flash Alliance Ltd [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 2,098,738,000 | [1],[5],[6] |
Flash Alliance Ltd [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 413,220,000 | [1],[5],[6] |
Flash Alliance Ltd [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 1,103,143,000 | [1],[5],[6] |
Flash Alliance Ltd [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 477,107,000 | [1],[5],[6] |
Flash Alliance Ltd [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 105,268,000 | [1],[5],[6] |
Flash Forward Ltd [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 901,628,000 | [1],[5],[6] |
Flash Forward Ltd [Member] | 1 Year or Less [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 346,912,000 | [1],[5],[6] |
Flash Forward Ltd [Member] | 2 - 3 Years (Fiscal 2014 and 2015) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 335,840,000 | [1],[5],[6] |
Flash Forward Ltd [Member] | 4 - 5 Years (Fiscal 2016 and 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | 166,935,000 | [1],[5],[6] |
Flash Forward Ltd [Member] | More than 5 Years (Beyond Fiscal 2017) [Member] | ' | |
Contractual Obligations | ' | |
Reimbursement for certain Flash Venture fixed costs | $51,941,000 | [1],[5],[6] |
[1] | 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 MarchB 30, 2014. | |
[2] | Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments. | |
[3] | In August 2010, the Company issued and sold $1.0B 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 AugustB 15, 2017. | |
[4] | In October 2013, the Company issued and sold $1.5B billion in aggregate principal amount of 0.5% Notes due 2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable semi-annually on April 15 and October 15 of each year until OctoberB 15, 2020. | |
[5] | Excludes amounts related to the master lease agreementsb purchase option exercise price at final lease term. | |
[6] | Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding commitments for loans and equity investments and reimbursement for other committed expenses. Funding commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce funding commitments. |
Commitments_Contingencies_and_5
Commitments, Contingencies and Guarantees-Obligation Tbl (Details 4) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Ventures [Member] | Flash Ventures [Member] | |
USD ($) | JPY (¥) | ||||
Guarantor Obligations | ' | ' | ' | ' | |
Guarantee of Flash Ventures equipment leases | $555,859 | [1] | $492,000 | $555,859 | ¥ 57,100,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 57.1B billion Japanese yen, or approximately $556B million based upon the exchange rate at MarchB 30, 2014. |
Commitments_Contingencies_and_6
Commitments, Contingencies and Guarantees-Future Lease Obligation (Details 5) (USD $) | Mar. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating leases future minimum payments | ' |
2014 (Remaining 9 months) | $6,436 |
2015 | 6,794 |
2016 | 3,136 |
2017 | 1,477 |
2018 | 583 |
2019 and thereafter | 143 |
Operating leases, gross | 18,569 |
Sublease income to be received in the future under noncancelable subleases | -1,118 |
Operating leases, net | $17,451 |
Commitments_Contingencies_and_7
Commitments, Contingencies and Guarantees-Rent Expense (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Net rent expense | ' | ' |
Rent expense, net | $1,624 | $1,843 |
Commitments_Contingencies_and_8
Commitments, Contingencies and Guarantees-JV (Details Textual 1) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||
Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | ||
USD ($) | USD ($) | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | ||
USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | SanDisk Corporation [Member] | Toshiba Corporation [Member] | ||||
Venture Ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Firm's ownership in business venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.90% | ' | |
Partner's ownership in venture business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.10% | |
Venture Origination Year | ' | ' | 10-Sep-04 | ' | ' | ' | 7-Jul-06 | ' | ' | ' | 13-Jul-10 | 13-Jul-10 | ' | ' | ' | ' | ' | |
Equity Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Notes Receivable, Related Parties, Noncurrent | ' | ' | $77,900,000 | ' | ' | ' | $355,400,000 | ' | ' | ' | $172,900,000 | ' | ' | ' | ' | ' | ' | |
Equity investment in business venture | ' | ' | 194,200,000 | ' | ' | 190,700,000 | 290,800,000 | ' | ' | 284,000,000 | 68,100,000 | ' | 66,700,000 | ' | ' | ' | ' | |
Cumulative translation adjustments | -26,729,000 | -47,440,000 | 21,500,000 | ' | ' | 17,300,000 | -2,500,000 | ' | ' | -8,700,000 | -14,700,000 | ' | -16,200,000 | ' | ' | ' | ' | |
Equity Method Investment Difference Between Carrying Amount And Underlying Equity (Basis Adjustment) | ' | ' | 0 | 300,000 | ' | ' | 0 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Master Lease Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Joint Venture Master Equipment Lease Agreement Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,730,000,000 | 178,200,000,000 | ' | ' | |
Joint Venture Master Equipment Lease Agreement Outstanding Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,110,000,000 | 114,200,000,000 | ' | ' | |
Guarantee of Flash Ventures equipment leases | 555,859,000 | [1] | 492,000,000 | 133,941,000 | ' | 13,800,000,000 | ' | 235,545,000 | ' | 24,200,000,000 | ' | 186,373,000 | 19,100,000,000 | ' | 555,859,000 | 57,100,000,000 | ' | ' |
Master Lease Covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Joint Venture Master Equipment Lease Agreement Guarantor Equity Covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,510,000,000 | ' | ' | ' | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 7,070,325,000 | 6,965,691,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tax Commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrecognized tax benefits from the contractual obligation | 207,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $190,900,000 | $185,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 57.1B billion Japanese yen, or approximately $556B million based upon the exchange rate at MarchB 30, 2014. |
Commitments_Contingencies_and_9
Commitments, Contingencies and Guarantees-Indemnity (Details Textual 3) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 |
Supplier and Customer [Member] | ' | ' |
Indemnification | ' | ' |
Indemnification Accrual At Carrying Value | $0 | ' |
Officers, Employees and Directors [Member] | ' | ' |
Indemnification | ' | ' |
Indemnification Accrual At Carrying Value | 0 | 0 |
Environmental Cost [Member] | ' | ' |
Indemnification | ' | ' |
Indemnification Accrual At Carrying Value | $0 | ' |
Recovered_Sheet2
Commitments, Contingencies and Guarantees-Financing Arrangements (Details Textual 4) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Aug. 31, 2010 | Mar. 30, 2014 | Dec. 29, 2013 | Oct. 27, 2013 | Mar. 30, 2014 | Dec. 29, 2013 | Oct. 23, 2013 |
1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | |||
Debt Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of convertible notes, issued and sold | $840,180,000 | $0 | $1,000,000,000 | $1,000,000,000 | $1,000,000,000 | ' | $1,500,000,000 | $1,500,000,000 | $1,500,000,000 |
Debt Instrument, Issuance Date | ' | ' | 20-Aug-10 | ' | ' | 29-Oct-13 | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 1.50% | ' | ' | ' | ' | ' | 0.50% |
Debt Instrument, Maturity Date | ' | ' | 15-Aug-17 | ' | ' | 15-Oct-20 | ' | ' | ' |
Recovered_Sheet3
Commitments, Contingencies and Guarantees-Operating Leases (Details Textual 5) | Mar. 30, 2014 |
Operating Leased Assets | ' |
Operating Lease Expiration Minimum (Year) | '2014 |
Operating Lease Expiration Maximum (Year) | '2022 |
Related_Parties_and_Strategic_2
Related Parties and Strategic Investments (Details 1) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | |
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | ' | ' | |
Guarantee of Flash Ventures equipment leases | $555,859,000 | [1] | $492,000,000 |
Prepayments | 0 | -5,000,000 | |
Maximum estimable loss exposure | -1,715,000,000 | -1,631,000,000 | |
Notes Receivable [Member] | ' | ' | |
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | ' | ' | |
Maximum estimable loss exposure | -606,000,000 | -593,000,000 | |
Equity Method Investments [Member] | ' | ' | |
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | ' | ' | |
Maximum estimable loss exposure | ($553,000,000) | ($541,000,000) | |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 57.1B billion Japanese yen, or approximately $556B million based upon the exchange rate at MarchB 30, 2014. |
Related_Parties_and_Strategic_3
Related Parties and Strategic Investments (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 30, 2014 | Mar. 31, 2013 | Dec. 29, 2013 | |
Related Parties and Strategic Investments | ' | ' | ' |
Accounts payable balances due to related party | $160,536,000 | ' | $146,964,000 |
Flash Ventures [Member] | ' | ' | ' |
Related Parties and Strategic Investments | ' | ' | ' |
The Company purchased NAND flash memory wafers from Flash Ventures and made prepayments, investments and loans to Flash Ventures | 460,100,000 | 478,900,000 | ' |
Repayment of loan from Flash Ventures | 24,400,000 | 53,600,000 | ' |
Accounts payable balances due to related party | $160,500,000 | ' | $146,000,000 |
Flash Ventures [Member] | SanDisk Corporation [Member] | ' | ' | ' |
Related Parties and Strategic Investments | ' | ' | ' |
Percentage of ownership with Related party | 49.90% | ' | ' |