Seagate 2009 Annual Report Download - page 62

Table of Contents
compensation, impairment of goodwill and other long-lived assets and the income tax provision related to a change in our valuation allowance
for deferred tax assets, and:
• a decrease of $372 million in accounts receivable due to a decrease in revenue, improved sales linearity and a shift in channel
mix;
•
a decrease of $358 million in inventories due to improved inventory and build schedule management and supply chain
improvements; and
• a decrease of $296 million in accrued employee compensation primarily due to no variable performance-based compensation
expense in fiscal year 2009.
Cash provided by operating activities for fiscal year 2008 was approximately $2.5 billion and includes the effects of our net income
adjusted for non-cash items including depreciation, amortization, and stock-based compensation, and:
•
an increase of $351 million in accounts payable, primarily as a result of outsourcing the manufacture of certain sub
-
assemblies to
third parties;
• an increase of $238 million in vendor non-trade receivables, primarily as a result of outsourcing the manufacture of certain sub-
assemblies to third parties (see Item 8. Note 2. Balance Sheet Information);
•
an increase of $151 million in inventories, principally raw materials and finished goods; and
• an increase of $288 million in accrued expenses and employee compensation.
Cash Used in Investing Activities
In fiscal year 2010, we used $752 million for net cash investing activities, which was primarily attributable to payments for property,
equipment and leasehold improvements of approximately $639 million.
In fiscal year 2009, we used $618 million for net cash investing activities, which was primarily attributable to payments for property,
equipment and leasehold improvements of approximately $633 million.
In fiscal year 2008, we used $991 million for net cash investing activities, which was primarily attributable to expenditures for property,
equipment and leasehold improvements of approximately $930 million and $74 million for the acquisition of MetaLINCS.
Cash Provided by (Used in) Financing Activities
Net cash used in financing activities of $344 million for fiscal year 2010 was primarily attributable to the repayment of $350 million of our
amended credit facility, the repayment of our $300 million in aggregate principal amount of Floating Rate Senior Notes due October 2009,
approximately $80 million of open market purchases of our 6.8% Notes and 2011 Notes. The repayment and repurchase of the Floating Rate
Senior Notes and the open market purchases were paid with approximately $379 million of restricted cash, previously held in escrow. We also
paid $77 million in aggregate principal amount of our 6.8% Notes, and approximately $584 million to repurchase 32.4 million of our common
shares, which was partially offset by $587 million in net proceeds from the issuance of our 2020 Notes and $86 million in proceeds from the
exercise of stock options and employee stock purchases.
Net cash provided by financing activities for fiscal year 2009 was primarily attributable to $399 million in net proceeds from the issuance of
our 10% Senior Secured Second-Priority Notes due May 2014 (the "10% Notes") and $350 million drawn on our credit facility. Cash proceeds
from financing activities were offset by $132 million in dividends paid to our shareholders and $55 million, including $19 million proceeds
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