Seagate 2003 Annual Report Download - page 35

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Table of Contents
Cash provided by operating activities for fiscal year 2004 was $635 million and consisted primarily of net income plus depreciation and
amortization partially offset by a reversal of $125 million in tax indemnification amounts.
During fiscal year 2004, we invested approximately $605 million in property, equipment and leasehold improvements. The $605 million
investment comprised:
•
$
179 million for manufacturing facilities and equipment related to our subassembly and disc drive final assembly and test facilities in
the United States and the Far East;
•
$157 million to expand our Woodlands thin-film media operations in Singapore;
•
$149 million for manufacturing facilities and equipment for our recording head operations in the United States, the Far East and
Northern Ireland; and
•
$85 million to upgrade the capabilities of our thin-film media operations in the United States, Singapore and Northern Ireland; and
During fiscal year 2003, we invested approximately $516 million in property, equipment and leasehold improvements. The $516 million
investment comprised:
•
$35 million for other purposes.
•
$
212 million for manufacturing facilities and equipment related to our subassembly and disc drive final assembly and test facilities in
the United States and the Far East;
•
$144 million to upgrade the capabilities of our thin-film media operations in the United States, Singapore and Northern Ireland;
•
$132 million for our manufacturing facilities and equipment for the recording head operations in the United States, the Far East and
Northern Ireland;
•
$17 million for the purchase of a corporate aircraft; and
For fiscal year 2003, cash, cash equivalents and short-term investments increased $351 million. This increase was primarily due to cash
provided by operating activities and proceeds from the issuance of our common shares offset by distributions to shareholders and investments
in property, equipment and leasehold improvements.
Until required for other purposes, our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of
90 days or less at the time of purchase. Our short-term investments consist primarily of readily marketable debt securities with remaining
maturities of more than 90 days at the time of purchase.
Net cash provided by operating activities was $635 million for fiscal year 2004, $882 million for fiscal year 2003, and $905 million for
fiscal year 2002. Net cash provided by operating activities for fiscal year 2004 was primarily attributable to net income as adjusted for non-
cash
expenses for depreciation and amortization and the benefit for the reversal of tax indemnification amounts. Net cash provided by operating
activities for fiscal year 2003 was primarily attributable to net income as adjusted for non-cash expenses for depreciation and amortization and
deferred compensation payments. Net cash provided by operating activities for fiscal year 2002 was primarily attributable to net income as
adjusted for non-cash expenses for depreciation and amortization, deferred income taxes, deferred compensation and the write-off of debt
issuance costs, and as adjusted to reclassify the cash payment for the redemption premium on the 12
1
/
2
% senior subordinated notes to net
cash used in financing activities.
Net cash used in investing activities was $962 million for fiscal year 2004, $754 million for fiscal year 2003, and $610 million for fiscal
year 2002. Net cash used in investing activities for fiscal year 2004 was primarily attributable to expenditures for property, equipment and
leasehold improvements and the purchases of
34
•
$11 million for other purposes.