Seagate 2005 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2005 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Dividends to New SAC
During fiscal year 2006, pursuant to its quarterly dividend policy, the Company paid dividends to its shareholders aggregating
approximately $155 million, or $0.32 per share, including New SAC. As of January 3, 2006, New SAC had distributed substantially all of the
common shares of the Company that it held to its shareholders, and New SAC no longer owns any of the Company’s common shares.
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.
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.
14. Condensed Consolidating Financial Information
On May 13, 2002, Seagate Technology HDD Holdings, or HDD, issued $400 million in aggregate principal amount of 8% Notes. HDD is
the Company’s wholly-owned direct subsidiary, and the Company has guaranteed HDD’s obligations under the 8% 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 June 30, 2006 and July 1, 2005 and the condensed consolidating results of
operations and cash flows for the fiscal years ended June 30, 2006, July 1, 2005 and July 2, 2004. 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% 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% Notes and the credit agreement governing its revolving credit
facility. Under this instrument, 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.
From the date of acquisition (May 19, 2006) through June 30, 2006, Maxtor was a wholly owned direct subsidiary of Seagate
Technology. The accompanying condensed consolidating financial information reflects the corporate legal structure of Seagate Technology,
HDD, and the Combined Non-Guarantors, as they existed as of June 30, 2006. On July 3, 2006, through a corporate organizational change and
realignment, Maxtor became a wholly owned indirect subsidiary of HDD and of Seagate Technology. As a result, beginning July 3, 2006, the
operating results of Maxtor will be included in the results of HDD on an equity method basis. In addition, going forward the balance sheet of
HDD will reflect the investment in Maxtor on an equity method basis.
102