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SEAGATE TECHNOLOGY AND ITS PREDECESSOR
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS—(CONTINUED)
7. Business Segment and Geographic Information
Prior to the Company’
s sale of XIOtech Corporation to New SAC on November 4, 2002, the Company had two operating segments: rigid
disc drives and storage area networks, however, only the rigid disc drive business was a reportable segment. See Note 12, Sale of XIOtech
Corporation. The operating results for XIOtech are included in the Company’s consolidated results of operations through the date that XIOtech
was sold to New SAC and are included in the “other” category below. The Company has identified its Chief Executive Officer, or CEO, as the
Chief Operating Decision Maker. Gross profit from operations is defined as revenue less cost of revenue.
In fiscal year 2003, Hewlett-Packard Corporation accounted for more than 10% of consolidated revenue for a total of $1.143 billion. In
fiscal year 2002, on a combined basis Compaq Computer Corporation and Hewlett-Packard Corporation (Hewlett-Packard Corporation
acquired Compaq Computer Corporation in May 2002) accounted for more than 10% of consolidated revenue for a total of $1.190 billion. For
the period from November 23, 2000 to June 29, 2001, Compaq Computer Corporation and EMC Corporation each accounted for more than
10% of consolidated revenue for a total of $527 million and $434 million, respectively. For the period from July 1, 2000 to November 22,
2000, Compaq Computer Corporation and EMC Corporation each accounted for more than 10% of combined revenue for a total of $422
million and $328 million, respectively.
Long-lived assets consist of property, equipment and leasehold improvements, capital leases, equity investments, goodwill and other
intangibles, and other non-current assets as recorded by the Company’s operations in each area.
The following tables summarize the Company’s operations by business segment:
On a separate basis, in conformity with accounting principles generally accepted in the United States, XIOtech had net losses of $9
million, $51 million, $50 million and $24 million in fiscal year 2003, fiscal year 2002, the period from November 23, 2000 to June 29, 2001
and the period from July, 2000 to November 22, 2000.
88
Seagate Technology
Predecessor
Fiscal
Year
Ended
June 27,
2003
Fiscal
Year
Ended
June 28,
2002
Period from
November 23,
2000 to
June 29,
2001
Period from
July 1,
2000 to
November 22,
2000
(in millions)
Revenue and Gross Profit
Revenue:
Rigid Disc Drives
$
6,464
$
6,023
$
3,626
$
2,292
Other
24
74
39
21
Eliminations
(2
)
(10
)
(9
)
(3
)
Consolidated
$
6,486
$
6,087
$
3,656
$
2,310
Gross Profit:
Rigid Disc Drives
$
1,715
$
1,558
$
712
$
264
Other
12
35
20
11
Consolidated
$
1,727
$
1,593
$
732
$
275
Total Assets
Total Assets:
Rigid Disc Drives
$
3,522
$
3,103
Other
—
43
Operating Segments
3,522
3,146
Eliminations
(5
)
(51
)
Consolidated
$
3,517
$
3,095