Seagate 2010 Annual Report Download - page 89

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
material as of July 1, 2011 and July 2, 2010. In fiscal years 2011, 2010 and 2009, amortization expense for other intangible assets was
$6 million, $35 million and $69 million, respectively.
4. Restructuring and Exit Costs
During fiscal year 2011, the Company recorded restructuring and other charges of $18 million, mainly comprised of charges related to its
AMK restructuring plan announced in the first quarter of fiscal year 2010 and costs associated with the closure of facilities previously
announced. During fiscal year 2010, the Company recorded restructuring and other charges of $66 million mainly comprised of charges related
to its AMK restructuring plan announced in the first quarter of fiscal year 2010 and additional restructuring charges related to its Pittsburgh,
Pennsylvania facility and facilities acquired as part of the 2006 acquisition of Maxtor Corporation ("Maxtor"). During fiscal year 2009, the
Company recorded restructuring and other charges of $210 million, comprised mainly of charges related to the May 2009 Plan and January 2009
Plan, both intended to realign its cost structure with the macroeconomic business environment. All restructuring charges are reported in
Restructuring and other, net in the Consolidated Statements of Operations, unless otherwise noted. The Company's significant restructuring plans
are described below.
2010 Plan.
From the inception of the Company's restructuring plan announced in fiscal year 2010 as a result of the ongoing focus on cost
efficiencies in all areas of its business, the Company recorded a total of $4 million related to employee termination costs prior to fiscal year
ended July 1, 2011; no additional charges were incurred during the fiscal year 2011. The Company made cash payments of $2 million and
completed the plan during the fiscal year ended July 1, 2011.
AMK Plan. In August 2009, the Company announced that it would close its AMK facility in Singapore. Manufacturing operations at this
facility had ceased as of the third quarter of fiscal year 2011. The hard drive manufacturing operations have been relocated to other existing
Seagate facilities and the Company's Asia International Headquarters (IHQ) remains in Singapore. This closure and relocation is part of the
Company's ongoing focus on cost efficiencies in all areas of its business and is intended to facilitate leveraging manufacturing investments
across fewer sites. The Company currently estimates total restructuring charges of approximately $60 million, all in cash, including
approximately $40 million for post-employment benefits, approximately $10 million for the relocation of manufacturing equipment, and
approximately $10 million for other plant closure and relocation costs. From the inception of the plan the Company has recorded $48 million in
restructuring charges. During fiscal year 2011, the Company accrued total restructuring charges of $3 million related to post-employment
benefits and $6 million related to other exit costs. The Company made cash payments of $38 million relating to this plan during fiscal year 2011.
Other Restructuring and Exit Costs. Through July 1, 2011, the Company has recorded restructuring related charges of approximately
$120 million, net of adjustments, related to the previously announced closures of its Pittsburgh, Pennsylvania and Milpitas, California facilities,
and also has recorded certain exit costs aggregating to $270 million related to its acquisition of Maxtor. These plans are currently expected to
result in total charges of approximately $410 million. During the year ended July 1, 2011, the Company recorded restructuring charges of
$4 million related to facility lease obligations, $3 million related to post-employment benefits and $2 million related to other exit costs. The
Company made cash payments of $23 million on these and other smaller restructuring plans. Payment of these exit costs are expected to
continue through the end of fiscal year 2017.
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