Seagate 2004 Annual Report Download - page 99

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
During fiscal year 2004, pursuant to its quarterly dividend policy, the Company paid dividends to its shareholders aggregating
approximately $90 million. Of the $90 million paid, New SAC received approximately $57 million. New SAC in turn distributed the $57
million it received to its ordinary shareholders, including approximately $11 million paid to officers and employees of the Company who held
ordinary shares of New SAC.
In February 2003 and May 2003, pursuant to its quarterly dividend policy, the Company paid dividends to its shareholders aggregating
approximately $26 million. Of the $26 million paid, New SAC received approximately $21 million. New SAC in turn distributed the $21
million it received to its ordinary shareholders, including approximately $5 million paid to officers and employees of the Company who held
ordinary shares of New SAC.
13. Condensed Consolidating Financial Information
On May 13, 2002, Seagate Technology HDD Holdings, or HDD, issued $400 million in aggregate principal amount of 8% senior notes
due 2009. HDD is the Company’s wholly-owned direct subsidiary, and the Company has guaranteed HDD’s obligations under the 8% senior
notes, on a joint and several, full and unconditional basis. The following tables present parent guarantor, subsidiary issuer and combined non-
guarantors condensed consolidating balance sheets of the Company and its subsidiaries at July 1, 2005 and July 2, 2004 and the condensed
consolidating results of operations and cash flows for the fiscal years ended July 1, 2005, July 2, 2004 and June 27, 2003. The information
classifies the Company’s subsidiaries into Seagate Technology-parent company guarantor, HDD-subsidiary issuer, and the combined non-
guarantors based upon the classification of those subsidiaries under the terms of the 8% senior notes. The Company is restricted in its ability to
obtain funds from its subsidiaries by dividend or loan under both the indenture governing the 8% senior notes and the credit agreement
governing the senior secured credit facilities. Under each of these instruments, dividends paid by HDD or its restricted subsidiaries would
constitute restricted payments, and loans between the Company and HDD or its restricted subsidiaries would constitute affiliate transactions.
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