Seagate 2005 Annual Report Download - page 89

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Company repurchased approximately 16.7 million shares for approximately $400 million, all of which were cancelled and are no longer
outstanding. The Company did not repurchase any shares during the first three quarters of fiscal year 2006 or fiscal years 2005 and 2004.
Common shares —Holders of common shares are entitled to receive dividends when and as declared by the Company’
s board of directors
(the “Board of Directors”). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of
preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and common shares. Holders of
shares are entitled to one vote per share on all matters upon which the common shares are entitled to vote, including the election of directors.
Preferred shares —The Company is authorized to issue up to a total of 100,000,000 preferred shares in one or more series, without
shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series,
and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or
restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that
series then outstanding, without any further vote or action by the shareholders.
The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power
or other rights of the holders of the common shares. The issuance of preferred shares, while providing flexibility in connection with possible
acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of
the Company and might harm the market price of its common shares and the voting and other rights of the holders of common shares. As of
June 30, 2006, there were no shares of preferred shares outstanding.
8. Commitments
Leases —The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases
expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on
increases in the Consumer Price Index. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs.
Future minimum lease payments for operating leases with initial or remaining terms of one year or more were as follows at June 30, 2006
(lease payments are shown net of sublease income):
Total rent expense for all land, facility and equipment operating leases was approximately $24 million, $19 million and $23 million for
fiscal years 2006, 2005 and 2004, respectively. Total sublease rental income for each
87
Fiscal Years Ending
Operating
Leases
(in millions)
2007
$
40
2008
34
2009
28
2010
27
2011
31
Thereafter
148
$
308