Seagate 2008 Annual Report Download - page 67

Table of Contents
We expect to pay cash restructuring charges aggregating approximately $70 million in the next 12 months primarily related to the
restructuring plans announced in January and May 2009. Additionally, in the next 12 months, we expect to pay an estimated $10 million in cash
restructuring charges related to the recent announcement of the closure of our Ang Mo Kio facility in Singapore.
During fiscal year 2009, we did not repurchase any of our common shares. As of July 3, 2009, we had authorization to repurchase
approximately $2.0 billion our common shares remaining under the February 2008 stock repurchase plan, which expires February 2010. 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."
We continue to evaluate various financing options to manage the retirement and replacement of existing debt and associated obligations,
including the issuance of new debt securities, exchanging existing debt securities for other debt securities and retiring debt pursuant to privately
negotiated transactions, open market purchases or otherwise. In addition, we may selectively pursue strategic alliances, acquisitions and
investments. Any material future acquisitions, alliances or investments will likely require additional capital.
Contractual Obligations and Commitments
Our contractual cash obligations and commitments as of July 3, 2009, have been summarized in the table below:
(1)
Fiscal Year(s)
(Dollars in millions) Total 2010 2011 –
2012
2013 –
2014
Thereafter
Contractual Cash Obligations:
Debt
(1)
$
2,762
$
771
$
635
$
756
$
600
Interest payments on debt
662
144
244
172
102
Capital expenditures
120
117
3
—
—
Operating leases
(2)
258
43
82
40
93
Purchase obligations
(3)
658
524
134
—
—
Subtotal
4,460
1,599
1,098
968
795
Commitments:
Letters of credit or bank guarantees
24
23
1
—
—
Total
$
4,484
$
1,622
$
1,099
$
968
$
795
Included in debt for fiscal year 2013 is the principal amount of $326 million related to our 2.375% Notes which is payable upon the
conversion of the 2.375% Notes. The 2.375% Notes are currently nonconvertible as our shares traded below 110% of the conversion
price for at least 20 consecutive trading days of the last 30 trading days of the fourth quarter of fiscal year 2009. As a result, the 2.375%
Notes are classified as Long-term debt on our Consolidated Balance Sheet at July 3, 2009. Also, includes a short-term borrowing of
$350 million on the corporate credit facility which is due within the year, although the facility is committed until fiscal 2012.
(2)
Includes total future minimum rent expense under non
-
cancelable leases for both occupied and vacated facilities (rent expense is shown
net of sublease income).
(3) Purchase obligations are defined as contractual obligations for the purchase of goods or services, which are enforceable and legally
binding on us, and that specify all significant terms.
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