Seagate 2010 Annual Report Download - page 123

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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. In
addition, estimated settlements for customer compensatory claims relating to product quality issues, if any, are accrued as warranty expense.
Changes in the Company's product warranty liability during the fiscal years ended July 1, 2011 and July 2, 2010 were as follows:
16. Related Party Transactions
During fiscal year 2011, members of the Company's board of directors also served on the boards of the following companies with which the
Company had transactions:
Symantec Corporation ("Symantec")
The Company made payments of $30 million for the purchase of its new Cupertino, California facility
to Symantec in fiscal year 2011.
United Parcel Service, Inc. ("UPS") The Company made payments for freight and logistics services to UPS of $150 million, $120 million
and $167 million in fiscal years 2011, 2010 and 2009, respectively. At July 1, 2011 and July 2, 2010, the Company had accounts payable to UPS
of $14 million and $21 million, respectively.
LSI Corporation ("LSI") The Company recorded revenue of $65 million, $63 million and $38 million from sales to LSI for fiscal years
2011, 2010 and 2009, respectively. The Company made payments to LSI in fiscal years 2011, 2010 and 2009 of $333 million, $320 million and
$153 million, respectively, related to purchases of various components. The Company had accounts payable to LSI of $70 million and
$48 million at July 1, 2011 and July 2, 2010, respectively.
17. Subsequent Events
Dividends
On July 20, 2011, the Board of Directors approved a cash dividend of $0.18 per share, which will be payable on August 26, 2011 to
shareholders of record as of the close of business on August 5, 2011.
116
Fiscal Years Ended
(In millions)
July 1,
2011
July 2,
2010
Balance, beginning of period
$
372
$
437
Warranties issued
199
200
Repairs and replacements
(221
)
(214
)
Changes in liability for pre
-
existing
warranties, including expirations
(2
)
(51
)
Balance, end of period
$
348
$
372