Seagate 2007 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2007 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 203

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
—
(
Continued)
Property, equipment and leasehold improvements, net
Property, equipment and leasehold improvements consisted of the following:
Amortization of leasehold improvements is included in depreciation and amortization expense. Depreciation expense was $750 million,
$699 million and $583 million for fiscal years 2008, 2007 and 2006, respectively.
Interest on borrowings related to eligible capital expenditures is capitalized as part of the cost of the qualified assets and amortized over the
estimated useful lives of the assets. During fiscal years 2008 and 2007, the Company capitalized interest of $10 million and $11 million,
respectively. No interest was capitalized in fiscal year 2006.
Supplemental Cash Flow Information
Useful Life in
Years
June 27,
2008
June 29,
2007
(In millions)
Land
$
21
$
21
Equipment
3
-
5
4,404
4,004
Building and leasehold improvements
Life of lease -
48
992
731
Construction in progress
428
348
5,845
5,104
Less accumulated depreciation and amortization
(3,381
)
(2,826
)
$
2,464
$
2,278
The components of depreciation and amortization expense are as follows:
Long-Term Debt and Credit Facilities
Fiscal Years Ended
June 27,
2008
June 29,
2007
June 30,
2006
(In millions)
Depreciation and amortization of property, equipment and leasehold improvements
$
750
$
699
$
583
Amortization of intangible assets
94
152
29
$
844
$
851
$
612
The carrying amount of long-term debt consisted of the following:
87
June 27,
2008
June 29,
2007
(In millions)
Floating Rate Senior Notes due October 2009
$
300
$
300
6.375% Senior Notes due October 2011
599
599
6.8% Senior Notes due October 2016
599
598
6.8% Convertible Senior Notes due April 2010
135
135
5.75% Subordinated Debentures due March 2012
41
45
2.375% Convertible Senior Notes due August 2012
326
326
LIBOR Based China Manufacturing Facility Loans
30
60
2,030
2,063
Less current portion
(360
)
(330
)
Long
-
term debt, less current portion
$
1,670
$
1,733