Seagate 2009 Annual Report Download - page 87

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Inventories
Other Current Assets
Other current assets include non-trade receivables from certain manufacturing vendors resulting from the sale of components to these
vendors who manufacture and sell completed sub-assemblies back to the Company. The Company does not reflect the sale of these components
in Revenue and does not recognize any profits on these sales. The costs of the completed sub-
assemblies are included in inventory upon purchase
from the vendors.
Property, Equipment and Leasehold Improvements, net
Depreciation expense, which includes amortization of leasehold improvements, was $745 million, $862 million and $750 million for fiscal
years 2010, 2009 and 2008, respectively. Additionally, depreciation expense in fiscal year 2009 included $57 million of accelerated depreciation
charges related primarily to the closure of the Milpitas and Pittsburgh facilities.
Interest on borrowings related to eligible capital expenditures is capitalized as part of the cost of the qualified assets and amortized over the
estimated useful lives of the assets. During fiscal years 2010, 2009 and 2008, the Company capitalized interest of $3 million, $6 million and
$10 million, respectively.
81
(Dollars in millions)
July 2, 2010 July 3, 2009
Raw materials and components
$
263
$
201
Work
-
in
-
process
145
120
Finished goods
349
266
$
757
$
587
(Dollars in millions)
July 2,
2010
July 3,
2009
Vendor non
-
trade receivables
$
351
$
326
Other
163
202
$
514
$
528
(Dollars in millions)
Useful Life
in Years
July 2,
2010
July 3,
2009
Land
$
22
$
22
Equipment
3
–
5
5,309
5,034
Building and leasehold
improvements
Up to 48
1,164
1,083
Construction in progress
347
128
6,842
6,267
Less accumulated depreciation
and amortization
(4,579
)
(4,038
)
$
2,263
$
2,229