Seagate 2004 Annual Report Download - page 39

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Table of Contents
Our principal sources of liquidity as of July 1, 2005 consisted of: (1) $1.836 billion in cash, cash equivalents, and short-term investments,
(2) a $150 million revolving credit facility, of which $35 million had been used for outstanding letters of credit and bankers’ guarantees as of
July 1, 2005, and (3) cash we expect to generate from operations.
Our principal liquidity requirements are to service our debt and meet our working capital, research and development and capital
expenditure needs. In addition, since the second half of fiscal year 2002 and through fiscal years 2003, 2004 and 2005, we have paid dividends
to our shareholders.
We believe that our sources of cash will be sufficient to fund our operations and meet our cash requirements for at least the next 12
months. Our ability to fund these requirements and comply with the financial covenants under our debt agreements will depend on our future
operations, performance and cash flow and is subject to prevailing economic conditions and financial, business and other factors, some of
which are beyond our control. In addition, as part of our strategy, we may selectively pursue strategic alliances, acquisitions and investments
that are complementary to our business. Any material future acquisitions, alliances or investments will likely require additional capital. We
cannot assure you that additional funds from available sources will be available on terms acceptable to us, or at all.
Our contractual cash obligations and commitments as of July 1, 2005 have been summarized in the table below (in millions):
Fiscal Year(s)
Total
2006
2007-
2008
2009-
2010
Thereafter
Contractual Cash Obligations:
Long term debt
$
740
$
4
$
336
$
400
$
—
Capital expenditures
267
267
—
—
—
Operating leases (1)
144
23
14
8
99
Purchase obligations (2)
1,428
1,331
59
38
—
Subtotal
2,579
1,625
409
446
99
Commitments:
Letters of credit or bank guarantees
35
35
—
—
—
Total
$
2,614
$
1,660
$
409
$
446
$
99
(1)
Includes total future minimum rent expense under non-cancelable leases for both occupied and abandoned facilities (rent expense is
shown net of sublease income).
Off-Balance Sheet Arrangements
(2)
Purchase obligations are defined as contractual obligations for purchase of goods or services, which are enforceable and legally binding
on us, and that specify all significant terms.
As of July 1, 2005, we did not have any material off-balance sheet arrangements (as defined in Item 303(a)(4)(ii) of Regulation S-K).
Equity Compensation Plan Information
The following table sets forth, for each of our existing equity compensation plans, the number of common shares issuable upon exercise
of outstanding options, warrants and rights, the weighted-
average exercise price of the outstanding options, warrants and rights, and the number
of common shares remaining available for issuance under such plans as of the end of fiscal year 2005.
36