Seagate 2009 Annual Report Download - page 64

Table of Contents
$362 million to retire our 2.375% Notes and 5.75% Debentures. During fiscal year 2010, we terminated our credit facility, having repaid the
previously drawn $350 million earlier in the fiscal year. In addition, our $300 million Floating Rate Senior Notes were due and paid on
October 1, 2009. We also repurchased approximately $80 million of various debt issuances on the open market to reduce our outstanding debt
obligations, and repaid our 6.8% Notes for $77 million at maturity.
On May 13, 2010, we issued the 2020 Notes for an aggregate principal amount of $600 million. The 2020 Notes were offered in a private
placement exempt from the registration requirements of the Securities Act of 1933, as amended. The 2020 Notes were issued by Seagate HDD
Cayman, an indirect wholly-owned subsidiary of Seagate Technology-Cayman, and guaranteed by Seagate Technology-Cayman on a full and
unconditional basis. On July 3, 2010, we became a guarantor under the 2020 Notes. We intend to use the proceeds from the debt issuance to
redeem, repay or repurchase existing debt and for general corporate purposes.
On January 27, 2010, our Board of Directors authorized an Anti-Dilution Share Repurchase Program, which was publicly announced on
February 1, 2010. The repurchase program authorizes us to repurchase our ordinary shares to offset increases in diluted shares, such as those
caused by employee stock plans and convertible debt, used in the determination of diluted net income per share. The timing and number of
shares to be repurchased by us will be dependent on general business and market conditions, cash flows generated by future operations, the price
of our ordinary shares, cash requirements for other investing and financing activities, and maintaining compliance with our debt covenants.
Repurchases may be made through open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available
means, such as by way of an accelerated share repurchase program, through block trades or through the purchase of call options or the sale of put
options. Additionally, there is no minimum or maximum number of shares to be repurchased under the program and the authority for the Anti-
Dilution Share Repurchase Program will continue until terminated by our Board of Directors.
During fiscal year 2010, we repurchased approximately 32.4 million of our common shares. See Item 5. Market for Registrant's Shares,
Related Shareholder Matters and Issuer Purchases of Equity Securities—Repurchases of Our Equity Securities.
For fiscal year 2011, we are targeting capital investment to be in the range of 6-8% of revenue. We require substantial amounts of cash to
fund scheduled payments of principal and interest on our indebtedness, future capital expenditures and any increased working capital
requirements. We will continue to evaluate and 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, which
may require additional capital.
62