Seagate 2007 Annual Report Download - page 63

Table of Contents
notes choose to convert their notes, Seagate may require additional amounts of cash to meet this obligation. The payment of dividends to holders
of the Company’s common shares have in certain quarters resulted in upward adjustments to the conversion rate of the 2.375% Notes and may
continue in the future. If the conversion rate continues to increase, we may be required to book an increased amount of interest expense.
In December 2007, we completed our acquisition of MetaLINCS, in an all cash transaction valued at approximately $74 million.
MetaLINCS provides enterprise level E-
Discovery software that helps companies respond to litigation and regulatory issues which requires them
to search large volumes of electronic data for relevant information.
During fiscal year 2008, we repurchased approximately 65 million of our common shares through open market repurchases at an average
price of $22.89 for a total of approximately $1.5 billion. We repurchased approximately $974 million under the $2.5 billion August 2006 stock
repurchase plan and approximately $500 million under a new plan announced on February 4, 2008, to repurchase up to an additional $2.5 billion
of our outstanding common shares over 24 months. As of June 27, 2008 we had no amounts remaining under the August 2006 stock repurchase
plan and had approximately $2.0 billion remaining under the February 2008 stock repurchase plan. See Part II, Item 5: “Market for Registrant’s
Common Shares, Related Shareholder Matters and Issuer Purchases of Equity Securities—Repurchases of Our Equity Securities.” During fiscal
year 2007, we repurchased 62 million shares for $1.5 billion.
As part of our strategy, we may selectively pursue strategic alliances, acquisitions and investments. Any material future acquisitions,
alliances or investments will likely require additional capital. We may enter into more of these types of arrangements in the future, which could
also require us to seek additional equity or debt financing. Additional funds may not be available on terms favorable to us or at all. We will
require substantial amounts of cash to fund scheduled payments of principal and interest on our indebtedness, future capital expenditures, any
increased working capital requirements and share repurchases. If we are unable to meet our cash requirements out of existing cash or cash flow
from operations, we cannot provide assurance that we will be able to obtain alternative financing on terms acceptable to us, if at all.
We believe that our sources of cash will be sufficient to fund our operations and meet our cash requirements for at least the next
12 months. Our ability to fund these requirements and comply with the financial covenants under our debt agreements will depend on our future
operations, performance and cash flow and is subject to prevailing economic conditions and financial, business and other factors, some of which
are beyond our control.
Contractual Obligations and Commitments
Our contractual cash obligations and commitments as of June 27, 2008, have been summarized in the table below (in millions):
62
Fiscal Year(s)
Total
2009
2010-
2011
2012-
2013
Thereafter
Contractual Cash Obligations:
Long term debt (1)
$
2,037
$
361
$
446
$
630
$
600
Interest payments on long
-
term debt
560
113
190
114
143
Capital expenditures
289
243
46
—
—
Operating leases (2)
281
42
77
54
108
Purchase obligations (3)
3,783
3,257
517
—
9
Subtotal
6,950
4,016
1,276
798
860
Commitments:
Letters of credit or bank guarantees
89
88
1
—
—
Total
$
7,039
$
4,104
$
1,277
$
798
$
860