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Table of Contents
SEAGATE TECHNOLOGY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Fiscal
Year Ended
July 2,
2004
Fiscal
Year Ended
June 27,
2003
Fiscal
Year Ended
June 28,
2002
OPERATING ACTIVITIES
Net income
$
529
$
641
$
153
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
422
443
405
Deferred income taxes
16
(15
)
62
VERITAS tax indemnification
(125
)
—
—
Deferred compensation charge
—
—
147
Debt refinancing charges
—
—
93
Other non
-
cash operating activities, net
1
34
9
Changes in operating assets and liabilities:
Accounts receivable
(80
)
(8
)
(75
)
Inventories
(130
)
5
(57
)
Accounts payable
89
(99
)
225
Accrued expenses, employee compensation and warranty
(44
)
63
(128
)
Accrued income taxes
(6
)
9
6
Accrued deferred compensation
—
(
147
)
—
Other assets and liabilities
(37
)
(44
)
65
Net cash provided by operating activities
635
882
905
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements
(605
)
(516
)
(540
)
Purchases of short
-
term investments
(4,143
)
(3,408
)
(1,037
)
Maturities and sales of short
-
term investments
3,822
3,194
989
Sale of XIOtech, net of repayment of intercompany debt
—
8
—
Sale of Reynosa facility
—
28
—
Other investing activities, net
(36
)
(60
)
(22
)
Net cash used in investing activities
$
(962
)
$
(754
)
$
(610
)
FINANCING ACTIVITIES
Issuance of long
-
term debt, net of issuance costs
$
—
$
—
$
736
Repayment of long
-
term debt, including extinguishments of debt
(6
)
(2
)
(899
)
Redemption premium on 12
1
/
2
% senior notes
—
—
(
50
)
Issuance of common shares in initial public offering
—
270
—
Proceeds from exercise of employee stock options and employee stock purchase plan
96
29
4
Distributions to shareholders
(90
)
(288
)
(200
)
Net cash provided by (used in) financing activities
—
9
(409
)
Increase (decrease) in cash and cash equivalents
(327
)
137
(114
)
Cash and cash equivalents at the beginning of the period
749
612
726
Cash and cash equivalents at the end of the period
$
422
$
749
$
612
Supplemental Disclosure of Cash Flow Information
Cash paid for interest
$
43
$
49
$
58
Cash paid for income taxes, net of refunds
13
27
18
See notes to consolidated financial statements.
64