Seagate 2006 Annual Report Download - page 89

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Ongoing Restructuring Activities
During fiscal year 2007, the Company recorded restructuring costs of approximately $33 million in connection
with its ongoing restructuring activities. These costs were primarily a result of a restructuring plan established to
continue the alignment of the Company’s global workforce with existing and anticipated business requirements,
primarily in its U.S. and Far East operations and asset impairments. The restructuring costs were comprised of
employee termination costs of approximately $14 million relating to a reduction in the Company’s workforce,
approximately $11 million in charges related to impaired facility improvements and equipment as a result of the
alignment plan, and approximately $8 million in charges related to impaired other intangibles. Fair value of the
facility improvements, equipment, and other intangibles were determined to be zero since no future cash flows are
expected to be generated from them. These restructuring and impairment charges are reported in Restructuring and
other in the Consolidated Statement of Operations. The Company expects these restructuring activities to be
completed by June 27, 2008. Additionally, the Company reversed $4 million of restructuring accruals relating to the
sale of a surplus building impaired in a prior restructuring.
During fiscal year 2006, the Company recorded restructuring costs of approximately $4 million in connection
with its ongoing restructuring activities. These costs were related to a restructuring plan established to continue the
alignment of the Company’s global workforce with existing and anticipated business requirements in its Far East
operations. The restructuring costs were comprised of employee termination costs relating to a continuing effort to
optimize our production around the world. The Company has completed these restructuring activities.
During fiscal year 2005, the Company recorded restructuring costs of $8 million in connection with its on-going
restructuring activities. These costs were primarily a result of a restructuring plan established to continue the
alignment of the Company’s global workforce with existing and anticipated business requirements, primarily in its
U.S. operations. The restructuring costs were comprised of employee termination costs of approximately $5 million
relating to a reduction in the Company’s workforce and approximately $3 million in charges related to impaired
facility improvements as a result of the alignment plan. These restructuring activities were substantially completed as
of March 31, 2006. Additionally, the Company reversed approximately $8 million of its restructuring accruals
comprised of approximately $3 million recorded in prior fiscal years relating to accrued severance benefits that were
less than amounts originally estimated and approximately $5 million relating to the sale in the first quarter of fiscal
year 2005 of a surplus building previously impaired in the fiscal year 2000 restructuring.
86
5.
Restructuring Costs and Other