Seagate 2005 Annual Report Download - page 72

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Activity in the allowance for doubtful accounts is as follows:
Balance at
Beginning of
Period
Additions,
Charges to Costs,
Reversals and
Expenses
Deductions (1)
Assumed from
Maxtor
Balance at
End of
Period
(in millions)
Fiscal year ended
June 30, 2006
$
32
$
(3
)
$
(2
)
$
10
$
37
Fiscal year ended July 1,
2005
$
30
$
4
$
(2
)
$
—
$
32
Fiscal year ended July 2,
2004
$
32
$
—
$
(
2
)
$
—
$
30
Inventories
(1)
Uncollectible accounts written off, net of recoveries.
Inventories are summarized below:
Property, equipment and leasehold improvements, net
June 30,
2006
July 1,
2005
(in millions)
Inventories:
Components
$
209
$
118
Work
-
in
-
process
126
70
Finished goods
556
243
$
891
$
431
Property, equipment and leasehold improvements consisted of the following:
Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $583 million, $462 million and
$413 million for fiscal years 2006, 2005 and 2004, respectively.
70
Useful Life in
Years
June 30,
2006
July 1,
2005
(in millions)
Land
$
30
$
22
Equipment
3
–
4
3,218
2,419
Building and leasehold improvements
Life of lease
–
48
646
476
Construction in progress
392
266
4,286
3,183
Less accumulated depreciation and amortization
(2,180
)
(1,654
)
$
2,106
$
1,529