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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $459 million, $416 million and
$390 million for fiscal years 2005, 2004 and 2003, respectively.
Intangibles
Other intangible assets consist of licensed technology. Amortization of purchased intangibles is provided on a straight-line basis over the
respective useful lives of the assets of 60 months. The carrying value of intangible assets at July 1, 2005 and July 2, 2004 was immaterial.
Accumulated amortization of intangibles was $6 million and $4 million at July 1, 2005 and July 2, 2004, respectively.
Supplemental Cash Flow Information
The components of depreciation and amortization expense are as follows:
Long-Term Debt and Credit Facilities
Fiscal Years Ended
July 1,
2005
July 2,
2004
June 27,
2003
(in millions)
Depreciation
$
459
$
416
$
390
Amortization:
Intangibles
2
1
2
Deferred compensation
2
8
12
Other assets
3
(3
)
39
$
466
$
422
$
443
The Company’s senior secured credit facilities, comprised of a five-year $350 million term loan facility and a $150 million revolving
credit facility, are secured by a first priority pledge of substantially all the tangible and intangible assets of Seagate Technology HDD Holdings
(“HDD”), the Company’s wholly-owned direct subsidiary, and many of HDD’s subsidiaries. The Company and many of its direct and indirect
subsidiaries have guaranteed the obligations under the senior secured credit facilities. HDD has also issued $400 million aggregate principal
amount of 8% senior notes due 2009. The Company has guaranteed HDD’s obligations under the 8% senior notes on a full and unconditional
basis. See Note 13, Condensed Consolidating Financial Information. Neither the credit agreement governing the senior secured credit facilities
nor the indenture governing the outstanding 8% senior notes due 2009 impose any restrictions on the ability of the Company’s consolidated
subsidiaries to transfer funds to HDD in the form of dividends, loans or advances.
Long-term debt consisted of the following:
77
July 1,
2005
July 2,
2004
(in millions)
LIBOR plus 2.0% term loan B
$
340
$
343
8.0% senior notes due 2009
400
400
740
743
Less current portion
4
4
Long
-
term debt, less current portion
$
736
$
739