Seagate 2007 Annual Report Download - page 60

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Table of Contents
Cash provided by operating activities for fiscal year 2007 was approximately $943 million and included the effects of:
•
net income adjusted for non
-
cash items including depreciation, amortization, stock
-
based compensation and tax benefits related to a
change in our valuation allowance for deferred tax assets;
•
a decrease of $391 million in accounts payable;
•
a decrease of $465 million in accrued expenses, employee compensation and warranty. A large part of this increase was due to variable
performance
-
based compensation earned during fiscal year 2006 and paid in fiscal year 2007;
•
the payment of accrued exit costs and retention bonuses related to the Maxtor acquisition; and
Cash provided by operating activities for fiscal year 2006 was approximately $1.5 billion and included the effects of:
•
a reduction of $106 million in inventories.
•
net income adjusted for non-cash items including depreciation, amortization and stock-based compensation;
•
increases of $190 million in accounts receivable and $113 million in inventories; and
Cash Used in Investing Activities
•
increases of $91 million in accounts payable and $120 million in accrued expenses, employee compensation and warranty.
During fiscal year 2008, we used $991 million for net cash investing activities, which was primarily attributable to expenditures for
property, equipment and leasehold improvements of approximately $930 million and $74 million for the acquisition of MetaLINCS. The
approximately $930 million we invested in property, equipment and leasehold improvements was primarily comprised of:
•
$88 million for manufacturing facilities and equipment related to our subassembly and disc drive final assembly and test facilities in
the Far East;
•
$
490 million to upgrade and expansion of our recording media operations in the United States, Malaysia and Singapore;
•
$184 million for manufacturing facilities and equipment for our recording head operations in the United States, the Far East and
Northern Ireland;
•
$
65 million for manufacturing facilities and equipment for alternative technologies in the United States; and
During fiscal year 2007, we used $402 million for net cash investing activities, which was primarily attributable to expenditures for
property, equipment and leasehold improvements of approximately $906 million and $178 million (net of cash acquired) for the acquisition of
EVault, partially offset by $675 million of maturities and sales of short-term investments in excess of purchases of short-term investments. The
approximately $906 million we invested in property, equipment and leasehold improvements was primarily comprised of:
•
$103 million for research and development, information technology infrastructure and other facilities and equipment costs.
•
$192 million for manufacturing facilities and equipment related to our subassembly and disc drive final assembly and test facilities in
the Far East;
59
•
$
414 million to upgrade and expansion of our recording media operations in the United States, Singapore and Northern Ireland;