Seagate 2006 Annual Report Download - page 75

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Supplemental Cash Flow Information
The components of depreciation and amortization expense are as follows:
Long-Term Debt and Credit Facilities
Long-term debt consisted of the following:
In September 2006, Seagate Technology HDD Holdings (“HDD”), the Company’s wholly-owned direct
subsidiary, issued senior notes totaling $1.5 billion comprised of $300 million aggregate principal amount of Floating
Rate Senior Notes due October 2009 (the “2009 Notes”), $600 million aggregate principal amount of 6.375% Senior
Notes due October 2011 (the
“2011 Notes”) and $600 million aggregate principal amount of 6.8% Senior Notes due
October 2016 (the “2016 Notes”). These notes are unsecured and rank equally in right of payment with all of HDD’s
other existing and future senior unsecured indebtedness and senior to any present and future subordinated
indebtedness of HDD.
$300 Million Aggregate Principal Amount of Floating Rate Senior Notes due October 2009. The 2009 Notes
bear interest at a floating rate equal to three-month LIBOR plus 0.84% per year, payable quarterly on January 1,
April 1, July 1 and October 1 of each year. Interest payments commenced on January 1, 2007. The 2009 Notes will
mature on October 1, 2009. The Company may not redeem the 2009 Notes prior to maturity.
$600 Million Aggregate Principal Amount of Fixed Rate Senior Notes due October 2011. The 2011 Notes bear
interest at the rate of 6.375% per year, payable semi-
annually on April 1 and October 1 of each year. The 2011 Notes
are redeemable at the option of the Company in whole or in part, on not less than 30 nor more than 60 days’ notice at
a “make-whole” premium redemption price. The “make-whole” redemption price will be equal to the greater of
(1) 100% of the principal amount of the notes being redeemed, or (2) the sum of the present values of the
72
Fiscal Years Ended
June 29,
June 30,
July 1,
2007
2006
2005
(In millions)
Depreciation and amortization of property, equipment and leasehold improvements
$
699
$
583
$
462
Amortization of intangibles
152
29
2
$
851
$
612
$
464
June 29,
June 30,
2007
2006
(In millions)
Floating Rate Senior Notes due October 2009
$
300
$
—
6.375% Senior Notes due October 2011
599
—
6.8% Senior Notes due October 2016
598
—
6.8% Convertible Senior Notes due April 2010
135
135
5.75% Subordinated Debentures due March 2012
45
49
2.375% Convertible Senior Notes due August 2012
326
326
LIBOR Based China Manufacturing Facility Loans
60
60
8.0% Senior Notes due May 2009
—
400
2,063
970
Less current portion
(330
)
(330
)
Long
-
term debt, less current portion
$
1,733
$
640