Seagate 2006 Annual Report Download - page 108

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Consolidating Statement of Operations
Fiscal Year Ended June 29, 2007
Consolidating Statement of Cash Flows
Fiscal Year Ended June 29, 2007
105
Seagate
Technology
Parent
HDD
Combined
Seagate
Company
Subsidiary
Non
-
Technology
Guarantor
Issuer
Guarantors
Eliminations
Consolidated
(In millions)
Revenue
$
—
$
—
$
12,278
$
(918
)
$
11,360
Cost of revenue
—
—
10,093
(918
)
9,175
Product development
—
—
904
—
904
Marketing and administrative
2
—
587
—
589
Amortization of intangibles
—
49
—
49
Restructuring and other, net
—
—
29
—
29
Total operating expenses
2
—
11,662
(918
)
10,746
Income from operations
(2
)
—
616
—
614
Interest income
1
20
104
(52
)
73
Interest expense
(2
)
(122
)
(69
)
52
(141
)
Equity in income of HDD
916
—
—
(
916
)
—
Equity in income (loss) of Non
-
Guarantors
—
1,018
(525
)
(493
)
—
Other, net
—
—
15
15
Other income (expense), net
915
916
(475
)
(1,409
)
(53
)
Income before income taxes
913
916
141
(1,409
)
561
Provision for (benefit from) income taxes
—
—
(
352
)
(352
)
Net income
$
913
$
916
$
493
$
(1,409
)
$
913
Seagate
Technology
Parent
HDD
Combined
Seagate
Company
Subsidiary
Non
-
Technology
Guarantor
Issuer
Guarantors
Eliminations
Consolidated
(In millions)
Operating Activities
Net Income
$
913
$
916
$
493
$
(1,409
)
$
913
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization
—
—
851
—
851
Stock
-
based compensation
—
—
128
—
128
Allowance for doubtful accounts receivable
—
—
40
—
40
Deferred income taxes
—
—
(
365
)
—
(
365
)
Redemption charges on 8% Senior Notes due 2009
—
19
—
—
19
In
-
process research and development
—
—
4
—
4
Non
-
cash portion of restructuring charges and other
—
—
19
—
19
Equity in (income) of HDD
(916
)
—
—
916
—