Seagate 2006 Annual Report Download - page 33

Table of Contents
Failure to Pay Quarterly Dividends — Our failure to pay quarterly dividends to our common shareholders
could cause the market price of our common shares to decline significantly.
We paid quarterly dividends aggregating $0.38 per share on September 1, 2006, November 17, 2006,
February 16, 2007 and May 18, 2007 to our common shareholders of record as of August 18, 2006, November 3,
2006, February 2, 2007 and May 4, 2007, respectively. On July 19, 2007, we declared a quarterly dividend of $0.10
per share that was paid by August 17, 2007 to our common shareholders of record as of August 3, 2007.
Our ability to pay quarterly dividends will be subject to, among other things, general business conditions within
the disc drive industry, our financial results, the impact of paying dividends on our credit ratings, and legal and
contractual restrictions on the payment of dividends by our subsidiaries to us or by us to our common shareholders,
including restrictions imposed by the credit agreement governing our revolving credit facility. Any reduction or
discontinuation of quarterly dividends could cause the market price of our common shares to decline significantly.
Our payment of dividends to holders of our common shares may in certain future quarters result in upward
adjustments to the conversion rate of the 2.375% Convertible Senior Notes due 2012. Moreover, in the event our
payment of quarterly dividends is reduced or discontinued, our failure or inability to resume paying dividends at
historical levels could result in a persistently low market valuation of our common shares.
Potential Governmental Action — Governmental action against companies located in offshore jurisdictions
may lead to a reduction in the demand for our common shares.
Recent federal and state legislation has been proposed, and additional legislation may be proposed in the future
which, if enacted, could have an adverse tax impact on either Seagate or its shareholders. For example, the eligibility
for favorable tax treatment of taxable distributions paid to U.S. shareholders of Seagate as qualified dividends could
be eliminated.
Securities Litigation — Significant fluctuations in the market price of our common shares could result in
securities class action claims against us.
Significant price and value fluctuations have occurred with respect to the publicly traded securities of disc drive
companies and technology companies generally. The price of our common shares is likely to be volatile in the future.
In the past, following periods of decline in the market price of a company’s securities, class action lawsuits have
often been pursued against that company. If similar litigation were pursued against us, it could result in substantial
costs and a diversion of management’s attention and resources, which could materially adversely affect our results of
operations, financial condition and liquidity.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
Our company headquarters is located in the Cayman Islands, while our U.S. executive offices are in
Scotts Valley, California. Our principal manufacturing facilities are located in China, Malaysia, Northern Ireland,
Singapore and Thailand and, in the United States, in California and Minnesota. Our principal disc drive design and
research and development facilities are located in Colorado, Minnesota, Pennsylvania, Massachusetts and Singapore.
Portions of our facilities are occupied under leases that expire at various times through 2082. We occupy a total of
10.6 million square feet, of which, 6.0 million is for manufacturing and warehousing, 1.5 million is for product
development, 1.3 million is for administrative purposes and 1.8 million is unoccupied.
See Item 8, Note 9, Legal, Environmental, and Other Contingencies.
None.
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ITEM 2.
PROPERTIES
ITEM 3.
LEGAL PROCEEDINGS
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS