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Technology Stocks : WDC/Sandisk Corporation
WDC 176.05-2.0%3:59 PM EST
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To: slacker711 who wrote (28093)4/27/2005 3:30:26 PM
From: clix  Read Replies (1) of 60323
 
Sandisk has said that "Fab Capital Investment" of $600M in 2005 will consist of the following:

(All numbers $million)

Balance Sheet Items:
Investment in FP: 150
Note Receivable - FP: 80
Note Receivable - FV: 80
Capital Equipment: 50
--------------------------
Total Balance Sheet Items: 360
Total Off Balance Sheet Items: 240

(FP is Flash Partners, FV is FlashVision).

I guess I was trying to figure out how the above amounts will manifest themselves in Income / BS statements, and whether net margins would be affected. As Bargain Hunter has pointed out, the BS items will actually reduce cash. I am ignorant of basic accounting, and I don't understand what an off-balnce-sheet "Fab Capital Investment" is, and what it can do to an income statement.
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