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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
—
(
Continued)
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. These restructuring and impairment charges are reported in
Restructuring and other in the Consolidated Statement of Operations. Additionally, the Company reversed $4 million of restructuring accruals
relating to the sale of a surplus building impaired in a prior restructuring. The Company has substantially completed these restructuring
activities.
During fiscal year 2006, the Company recorded restructuring costs of approximately $4 million in connection with its ongoing
restructuring activities. These restructuring costs are reported in Restructuring and other in the Consolidated Statement of Operations. 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.
The following table summarizes the Company’s restructuring activities for fiscal years 2008, 2007 and 2006.
Liabilities Recognized in Connection with Business Combinations:
Severance and
Benefits
Grant
Repayment
Impaired
Equipment and
Other
Intangible
Assets
Total
(In millions)
Accrual balances, July 1, 2005
$
2
$
—
$
—
$
2
Restructuring charge
4
—
—
4
Cash payments
(6
)
—
—
(
6
)
Accrual balances, June 30, 2006
—
—
—
—
Restructuring charge
14
—
19
33
Cash payments
(5
)
—
—
(
5
)
Non
-
cash charges
—
—
(
19
)
(19
)
Accrual balances, June 29, 2007
9
—
—
9
Restructuring charge
58
18
3
79
Cash payments
(15
)
—
—
(
15
)
Non
-
cash charges
—
—
(
3
)
(3
)
Accrual balances, June 27, 2008
$
52
$
18
$
—
$
70
In connection with the Maxtor acquisition, the Company accrued certain exit costs (see Note 10).
101