Seagate 2006 Annual Report Download - page 105

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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.
14. Condensed Consolidating Financial Information
The Company has guaranteed HDD’s obligations under the 2009 Notes, the 2011 Notes and the 2016 Notes (the
“Senior Notes”), on a full and unconditional basis, and prior to October 25, 2006 when the Company’s 8% Notes
were redeemed, the Company had guaranteed HDD’s obligations under the 8% Notes. The following tables present
parent guarantor, subsidiary issuer and combined non-guarantors condensed consolidating balance sheets of the
Company and its subsidiaries at June 29, 2007 and June 30, 2006, the condensed consolidating statements of
operations and cash flows for the fiscal years ended June 29, 2007, June 30, 2006 and July 1, 2005. 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 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.
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 balance sheet as of June 30, 2006
reflects the corporate legal structure of Seagate Technology, HDD, and the Combined Non-Guarantors, as they
existed at that time. 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
investment in Maxtor is accounted for on an equity method basis in the financial information of HDD. Certain
intercompany balances have been reclassified to conform to the current presentation.
102