Seagate 2006 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2006 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Table of Contents
has been to enter into such transactions only when the discount that we receive is higher than the foregone return on
our cash prepayment to the financial institution. There were no explicit commissions or fees on these prepaid forward
agreements. Under the terms of these agreements, there was no requirement for the financial institutions to return any
portion of the prepayment to us. These prepaid forward agreements were not derivatives because the Company had
prepaid all amounts and had no remaining obligation. The agreements do not contain an embedded derivative. The
prepayments were recorded as a reduction to shareholders’ equity when paid and the shares were deducted from
shares outstanding. The agreements require the physical delivery of shares; there were no settlement alternatives,
except in the case of certain defined extraordinary events which are outside the control of Seagate and the financial
institutions. The parameters used to calculate the final number of shares deliverable are the total notional amount of
the contract and the average VWAP of our common shares during the contract period less the agreed upon discount.
The contracts are indexed solely to the price of Seagate’s common shares.
During fiscal year 2007, we repurchased 24.3 million shares through open market repurchases. In addition, we
made payments totaling $950 million under prepaid forward agreements and took delivery of 37.7 million shares
using prepaid forward agreements. Shares physically delivered to us were cancelled and are no longer outstanding.
At June 29, 2007, there were no outstanding prepaid forward agreements to repurchase our common shares.
As of June 29, 2007, we had approximately $974 million remaining under the authorized $2.5 billion stock
repurchase program. Share repurchases during fiscal year 2007 were as follows:
During the fourth quarter of fiscal year 2006, we repurchased 16.7 million shares under a previously authorized
stock repurchase program. The program authorizing repurchases in the fourth quarter of fiscal year 2006 was
completed and there is no outstanding authority for further shares to be purchased under that program.
34
Approximate
Total Number
Dollar Value
of Shares
of Shares
Purchased Under
That May Yet Be
Publicly
Purchased Under
Total Number of
Average Price
Announced Plans
the Plans
Shares Purchased
Paid per Share
or Programs
or Programs
(In millions)
(In millions)
(In millions)
Through 3
rd
Quarter of
Fiscal 2007
52.2
$
25.34
52.2
$
1,176
April 2007
—
$
—
52.2
$
1,176
May 2007
9.8
$
20.76
62.0
$
974
June 2007
—
$
—
62.0
$
974
Total Through 4
th
Quarter of Fiscal Year 2007
62.0
$
24.62
62.0
$
974