Seagate 2009 Annual Report Download - page 91

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
During fiscal year 2008, the Company recorded restructuring charges of $79 million, comprised mainly of charges related to the planned
closures of its Limavady, Northern Ireland and Milpitas, California operations.
The following table summarizes the Company's restructuring activities for fiscal years 2010, 2009 and 2008.
Of the accrued restructuring balance of approximately $84 million at July 2, 2010, $51 million is included in Accrued expenses and
$33 million is included in Other non-current liabilities on the Company's Consolidated Balance Sheet. Of the accrued restructuring balance of
approximately $101 million at July 3, 2009, $72 million is included in Accrued expenses and $29 million is included in Other non-current
liabilities on the Company's Consolidated Balance Sheet.
5. Debt and Convertible Notes
Long-Term Debt
$600 Million Aggregate Principal Amount of 6.375% Senior Notes due October 2011 (the "2011 Notes")
. The 2011 Notes bear interest at
the rate of 6.375% per year, payable semi-annually on April 1 and October 1 of each year. The obligations under the 2011 Notes are
unconditionally guaranteed by certain of the Company's significant subsidiaries. The 2011 Notes are redeemable at the option of the Company in
whole or in part, on not less than 30, nor more than 60 days notice, at a "make-whole" premium redemption price. The "make-whole"
redemption price will be equal to the greater of (1) 100% of the principal amount of the notes being redeemed, or (2) the sum of the present
values of the remaining scheduled payments of principal and interest on the 2011 Notes being redeemed, discounted at the redemption date on a
semi-annual basis at a rate equal to the sum of the applicable Treasury rate plus 50 basis points.
85
(Dollars in millions)
Post
-
Employee
Benefits
Operating
Leases
Other
Exit
Costs
Impaired
Equipment
and Other
Intangible
Assets
Total
All Restructuring Activities
Accrual balances at June 29, 2007
$
10
$
28
$
4
$
—
$
42
Restructuring charges
58
—
18
3
79
Cash payments
(16
)
(11
)
(4
)
—
(
31
)
Non
-
cash charges
—
—
—
(
3
)
(3
)
Accrual balances at June 27, 2008
$
52
$
17
$
18
$
—
$
87
Restructuring charges
176
12
15
—
203
Cash payments
(164
)
(8
)
(24
)
—
(
196
)
Adjustments
(3
)
19
(9
)
—
7
Accrual balances at July 3, 2009
$
61
$
40
$
—
$
—
$
101
Restructuring charges
42
15
7
—
64
Cash payments
(62
)
(14
)
(7
)
—
(
83
)
Adjustments
(3
)
5
—
—
2
Accrual balances at July 2, 2010
$
38
$
46
$
—
$
—
$
84