Seagate 2010 Annual Report Download - page 87

Table of Contents
SEAGATE TECHNOLOGY PLC
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 $748 million, $745 million and $862 million for fiscal
years 2011, 2010 and 2009, respectively. Additionally, depreciation expense in fiscal year 2009 included $57 million of accelerated depreciation
charges related primarily to the closure of the Company's Milpitas, California and Pittsburgh, Pennsylvania 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 2011, 2010 and 2009, the Company capitalized interest of $5 million, $3 million and
$6 million, respectively.
81
(Dollars in millions)
July 1,
2011
July 2,
2010
Raw materials and components
$
286
$
263
Work
-
in
-
process
201
145
Finished goods
385
349
$
872
$
757
(Dollars in millions)
July 1,
2011
July 2,
2010
Vendor non
-
trade receivables
$
519
$
351
Other
187
163
$
706
$
514
(Dollars in millions) Useful Life
in Years July 1,
2011 July 2, 2010
Land
$
29
$
22
Equipment
3
–
5
5,988
5,309
Buildings and leasehold
improvements
Up to 48
1,203
1,164
Construction in progress
163
347
7,383
6,842
Less accumulated depreciation
and amortization
(5,138
)
(4,579
)
$
2,245
$
2,263