Seagate 2006 Annual Report Download - page 78

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At June 29, 2007, future minimum principal payments on long-term debt were as follows (in millions):
Included in future minimum principal payments on long-term debt for fiscal year 2008, is the principal amount
of $326 million related to our 2.375% Notes which is payable upon the conversion of the 2.375% Notes, which are
currently convertible as the Company’s share price was in excess of 110% of the conversion price for at least 20
consecutive trading days during the last 30 trading days of the fourth quarter of fiscal year 2007. Unless earlier
converted, the 2.375% Notes must be redeemed in August 2012.
Tax-Deferred Savings Plan
The Company has a tax-deferred savings plan, the Seagate 401(k) Plan (“the 40l(k) plan”), for the benefit of
qualified employees. The 40l(k) plan is designed to provide employees with an accumulation of funds at retirement.
Qualified employees may elect to make contributions to the 401(k) plan on a monthly basis. During fiscal years
2007, 2006 and 2005, the Company made matching contributions of $15 million, $13 million and $13 million,
respectively.
Stock-Based Benefit Plans
Seagate Technology 2001 Share Option Plan — In December 2000, the Company’s board of directors adopted
the Seagate Technology 2001 Share Option Plan (the “2001 Plan”). Under the terms of the 2001 Plan, eligible
employees, directors, and consultants can be awarded options to purchase common shares of the Company under
vesting terms to be determined at the date of grant. A maximum of 100 million common shares is issuable under the
2001 Plan. Options granted to exempt employees will generally vest as follows: 25% of the shares will vest on the
first anniversary of the vesting commencement date and the remaining 75% will vest proportionately each month
over the next 36 months. Options granted to non-exempt employees will vest on the first anniversary of the vesting
commencement date. Except for certain options granted below deemed fair value shortly prior to the Company’s
initial public offering in fiscal year 2003, all other options granted under the 2001 Plan were granted at fair market
value, with options granted up through September 5, 2004 expiring ten years from the date of grant and options
granted subsequent to September 5, 2004 expiring seven years from the date of grant. As of June 29, 2007, there
were approximately 84,000 shares available for issuance under the 2001 Plan.
Seagate Technology 2004 Stock Compensation Plan — On August 5, 2004, the Company’s board of directors
adopted the Seagate Technology 2004 Stock Compensation Plan (the “2004 Plan”), and on October 28, 2004, the
Company’
s shareholders approved the 2004 Plan. The purpose of the 2004 Plan, which is intended to supplement and
eventually succeed the Company’s 2001 Plan, is to promote the Company’s long-term growth and financial success
by providing incentives to its employees, directors, and consultants through grants of share-based awards. On
October 26, 2006, the Company’s shareholders approved an amendment to the 2004 Plan to increase the number of
common shares available for issuance by 36 million, bringing the total amount of common shares authorized to be
issued under the 2004 Plan to 63.5 million. The provisions of the 2004 Plan, which allows for the grant of various
types of equity-based awards, are also intended to provide greater flexibility to maintain the Company’s competitive
75
Fiscal Year
2008
$
330
2009
35
2010
472
2011
5
2012
630
Thereafter
600
$
2,072
3.
Compensation