Seagate 2010 Annual Report Download - page 66

Table of Contents
and (3) a net leverage ratio. As of July 1, 2011, we are in compliance with all covenants, including the financial ratios that we are required to
maintain.
We believe that our sources of cash will be sufficient to fund our operations and meet our cash requirements for at least the next 12 months.
Cash Requirements and Commitments
Our liquidity requirements are primarily to meet our working capital, research and development and capital expenditure needs, to fund
scheduled payments of principal and interest on our indebtedness, and to fund our dividend. Our ability to fund these requirements will depend
on our future cash flows, which are determined by future operating performance, and therefore, subject to prevailing global macroeconomic
conditions and financial, business and other factors, some of which are beyond our control.
On July 20, 2011, we announced that our 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.
In fiscal year 2011, we issued $1.3 billion in long-term debt. We intend to use the net proceeds for general corporate purposes, which may
include the repayment and/or repurchase of a portion of our outstanding indebtedness, capital expenditures and investments in our business.
As of July 1, 2011, we were in compliance with all of the covenants under our debt agreements. Based on our current outlook, we expect to
be in compliance with the covenants of our debt agreements over the next 12 months.
The carrying value of our long-
term debt as of July 1, 2011 and July 2, 2010 was $3.5 billion and $2.5 billion, respectively. The table below
presents the principal amounts of our outstanding long-term debt in order of maturity:
During fiscal year 2011, we repurchased approximately 56.9 million of our ordinary shares. See Item 5. Market for Registrant's Shares,
Related Shareholder Matters and Issuer Purchases of Equity Securities—Repurchases of Our Equity Securities.
We expect the pending transaction with Samsung to close by the end of calendar 2011. The purchase price for this transaction includes cash
consideration of $687.5 million, which we are obligated to pay upon closing. We currently expect to fund this transaction with our current
sources of liquidity and cash from operations.
63
As of
(Dollars in millions)
July 1,
2011 July 2, 2010 Change
6.375% Senior Notes due October
2011
$
559
$
560
$
(1
)
5.75% Subordinated Debentures
due March 2012
—
33
(33
)
2.375% Convertible Senior Notes
due August 2012
—
326
(326
)
10.0% Senior Secured Second
-
Priority Notes due May 2014
416
430
(14
)
6.8% Senior Notes due October
2016
600
600
—
7.75% Senior Notes due December
2018
750
—
750
6.875% Senior Notes due May
2020
600
600
—
7.00% Senior Notes due November
2021
600
—
600
Total
$
3,525
$
2,549
$
976