Seagate 2008 Annual Report Download - page 131

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Acquisitions (Continued)
The recorded values and estimated useful lives of the intangibles acquired from MetaLINCS were:
17. Related Party Transactions
A member of the Company's board of directors is on the board of directors of Microsoft Corporation ("Microsoft"). During fiscal year 2009,
the Company's sales to Microsoft were immaterial. During fiscal years 2008 and 2007, the Company recorded revenue of $5 million and
$113 million, respectively. The Company's purchases from Microsoft for fiscal years 2009, 2008 and 2007 were immaterial. At July 3, 2009 and
June 27, 2008, the Company's accounts receivable and accounts payable were not material.
Another individual who is a member of the Company's board of directors is on the board of directors of United Parcel Service, Inc. ("UPS")
The Company made payments for freight and logistic services to UPS of $167 million, $207 million and $160 million in fiscal years 2009, 2008
and 2007, respectively. At July 3, 2009 and June 27, 2008, the Company had accounts payable to UPS of $18 million and $30 million,
respectively.
Another individual who has been a member of the Company's board of directors since June 2002 also became a director of Xiotech
Corporation ("Xiotech") on November 27, 2007. The Company recorded revenue of $6 million from sales to Xiotech in fiscal year 2009 and
$2 million from November 27, 2007 to June 27, 2008. The Company's purchases from Xiotech for the same periods were immaterial. At July 3,
2009 and June 27, 2008, the Company's accounts receivable and accounts payable were immaterial. In addition, during fiscal year 2008, the
Company sold certain assets to Xiotech in exchange for approximately $10 million in cash and approximately $3 million in deferred
consideration.
Another individual who has been a member of the Company's board of directors since April 29, 2004 is also a director of LSI Logic Corp.
The Company recorded revenue of $38 million, $48 million and $46 million from sales to LSI Logic for fiscal years 2009, 2008 and 2007,
respectively. The Company had accounts receivable of $6 million and $10 million from LSI Logic at July 3, 2009 and June 27, 2008,
respectively. The Company made payments to LSI Logic in fiscal years 2009, 2008 and 2007 of $153 million, $208 million and $220 million,
respectively, related to purchases of various components. The Company had accounts payable to LSI Logic of $55 million and $27 million at
July 3, 2009 and June 27, 2008, respectively.
129
Estimated Fair
Value
Weighted Average
Useful Life
(Dollars in millions)
(In years)
Existing technology
$
7
4.0
Customer relationships
3
4.0
Trade names
1
4.0
Other
1
2.0
Total acquired identifiable intangible assets
$
12
3.9