Seagate 2008 Annual Report Download - page 114
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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
8. Fair Value (Continued)
Other Fair Value Disclosures
In accordance with SFAS No. 107, Disclosures about Fair Value of Financial Instruments , the Company is required to disclose the fair
value of its long-term debt at least annually or more frequently if the fair value has changed significantly.
The Company's debt is carried at cost. The following table represents the fair value of the Company's debt in order of priority:
Reported as:
(1)
July 3, 2009
June 27, 2008
(Dollars in millions)
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
LIBOR Based Credit Facility
$
350
$
350
$
—
$
—
10.0% Senior Secured Second
-
Priority Notes due May 2014
410
445
—
—
Floating Rate Senior Notes due October 2009
300
299
300
293
6.8% Convertible Senior Notes due April 2010
116
116
135
142
6.375% Senior Notes due October 2011
599
581
599
584
5.75% Subordinated Debentures due March 2012
37
35
41
40
2.375% Convertible Senior Notes due August 2012
(1)
316
283
326
422
6.8% Senior Notes due October 2016
599
550
599
555
LIBOR Based China Manufacturing Facility Loans
—
—
30
30
2,727
2,659
2,030
2,066
Less short
-
term borrowings and current portion of long
-
term debt
(771
)
(769
)
(360
)
(457
)
Long
-
term debt, less current portion
$
1,956
$
1,890
$
1,670
$
1,609
Carrying amount of 2.375% Notes, net of debt discount as a result of the beneficial conversion feature. See Note 5, Credit Facilities,
Long-Term Debt and Convertible Notes for further discussion.
(2) The fair value of the Company's 2.375% and 6.8% convertible securities is a function, in part, of the Company's stock price. Because the
Company's stock price has decreased since June 27, 2008, the fair value of these securities has also decreased.
9. Shareholders' Equity
Share Capital
The Company's authorized share capital is $13,500 and consists of 1,250,000,000 common shares, par value $0.00001, of which
493,008,776 shares were outstanding as of July 3, 2009 and 100,000,000 preferred shares, par value $0.00001, of which none were issued or
outstanding as of July 3, 2009.
Common shares —Holders of common shares are entitled to receive dividends when and as declared by the Company's board of directors
(the "Board of Directors"). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of
preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and common
112