Seagate 2006 Annual Report Download - page 74

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Activity in the allowance for doubtful accounts is as follows:
Inventories
Inventories are summarized below:
Property, equipment and leasehold improvements, net
Property, equipment and leasehold improvements consisted of the following:
Amortization of leasehold improvements is included in depreciation and amortization expense. Depreciation
expense was $699 million, $583 million and $462 million for fiscal years 2007, 2006 and 2005, respectively.
71
Balance at
Balance at
Beginning of
Charges to
Assumed from
End of
Period
Operations
Deductions(1)
Maxtor
Period
(In millions)
Fiscal year ended June 29, 2007
$
37
$
37
$
(24
)
$
—
$
50
Fiscal year ended June 30, 2006
$
32
$
(3
)
$
(2
)
$
10
$
37
Fiscal year ended July 1, 2005
$
30
$
4
$
(2
)
$
—
$
32
(1)
Uncollectible accounts written off, net of recoveries.
June 29,
June 30,
2007
2006
(In millions)
Raw materials and components
$
277
$
209
Work
-
in
-
process
85
126
Finished goods
432
556
$
794
$
891
Useful Life in
June 29,
June 30,
Years
2007
2006
(In millions)
Land
$
21
$
30
Equipment
3
-
5
4,004
3,218
Building and leasehold improvements
Life of lease
-
48
731
646
Construction in progress
348
392
5,104
4,286
Less accumulated depreciation and amortization
(2,826
)
(2,180
$
2,278
$
2,106