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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and Microsoft subcontractors, including Flextronics. With respect to such sales, at July 1, 2005 and July 2, 2004, the Company had accounts
receivable of $37 million and $26 million, respectively and accounts payable of $8 million and $7 million, respectively. The Company made
payments for freight services to United Parcel Service of $115 million, $114 million and $120 million in fiscal years 2005, 2004 and 2003,
respectively. At July 1, 2005 and July 2, 2004, the Company had accounts payable to United Parcel Service of $18 million and $10 million,
respectively.
Another member of our board of directors was also a director of E2open, Inc. through August 10, 2004. The Company made payments
totaling $2 million from E2open for the period from July 3, 2004 to August 10, 2004 and $2 million and $1 million for fiscal years 2004 and
2003, respectively. At both July 1, 2005 and July 2, 2004, the Company had no outstanding accounts payable to E2open, Inc. In addition, the
Company increased its strategic investment in E2open, Inc. by $7 million in fiscal year 2005.
A former member of our board of directors who became Chairman and Chief Executive Officer of Motorola, Inc. on January 5, 2004,
resigned from the Company’s board of directors on October 28, 2004. The Company recorded revenue of $16 million from sales to Motorola,
Inc. for the period from January 5, 2004 to July 2, 2004 and $26 million for the period from July 3, 2004 to October 28, 2004. The Company
had accounts receivable of $4 million from Motorola at July 2, 2004.
Another individual who has been a member of our board of directors since April 29, 2004 is also a director of LSI Logic Corp. The
Company recorded revenue of $36 million and $3 million from sales to LSI Logic for fiscal year 2005 and the period from April 29, 2004 to
July 2, 2004, respectively. The Company had accounts receivable of $3 million and $5 million from LSI Logic at July 1, 2005 and July 2, 2004,
respectively. The Company also made payments to LSI Logic of $148 million and $18 million in fiscal years 2005 and 2004, respectively,
related to purchases of various components. At July 1, 2005 and July 2, 2004, the Company had accounts payable to LSI Logic of $46 million
and $17 million, respectively.
Another member of our board of directors became a director of Lenovo Group Limited on May 17, 2005. The Company recorded revenue
of $29 million from sales to Lenovo Group Limited and its subcontractors for the period from May 17, 2005 to July 1, 2005. At July 1, 2005,
the Company had accounts receivable of $33 million from Lenovo Group Limited and its subcontractors.
Executive Officer Receivables
At July 1, 2005, amounts receivable from one executive officer totaled $0.3 million. This loan was made during fiscal year 2001 and
bears interest at 8% per year and is due in lump sum payments, including unpaid interest, in fiscal year 2006. Under the terms of this loan,
certain principal amounts and all accrued and unpaid interest will be forgiven if this executive officer remains employed for a specified period
of time. In the periods in which this executive officer fulfills his employment obligations, the amount of principal and interest, which is
forgiven ratably over his required employment term, is charged to compensation expense. At July 2, 2004, amounts receivable from two
officers totaled $0.7 million.
Dividends to New SAC
During fiscal year 2005, pursuant to its quarterly dividend policy, the Company paid dividends to its shareholders aggregating
approximately $122 million, or $0.26 per share. Of the $122 million paid, New SAC received approximately $60 million. New SAC in turn
distributed the $60 million it received to its ordinary shareholders, including approximately $10 million paid to officers and employees of the
Company who held ordinary shares of New SAC.
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