Seagate 2011 Annual Report Download - page 85

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
comprised of charges related to the AMK Plan and additional restructuring charges related to its Pittsburgh, Pennsylvania facility and facilities
acquired as part of the 2006 acquisition of Maxtor Corporation ("Maxtor"). The Company's significant restructuring plans are described below.
All restructuring charges are reported in Restructuring and other, net on the Consolidated Statements of Operations.
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. The 2010 Plan was
completed during the fiscal year ended July 1, 2011.
AMK Plan. In August 2009, the Company announced that it will close its AMK manufacturing operations in Singapore. 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 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 $50 million, all in cash, including approximately
$42 million for post-employment benefits, approximately $6 million for the relocation of manufacturing equipment, and approximately
$2 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 2012, the Company made cash payments of $5 million under the AMK Plan and there were no restructuring charges
related to the plan during fiscal year 2012. Payments under the AMK plan are expected to continue through fiscal year 2013.
Other Restructuring and Exit Costs. Through June 29, 2012, the Company has recorded restructuring charges of approximately
$121 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 $405 million. During fiscal year 2012, the Company incurred restructuring charges of $3 million in post-
employment benefits, and $2 million in other exit costs primarily related to the closures of its Pittsburgh, Pennsylvania and Milpitas, California
facilities and to other smaller restructuring plans. In addition, the Company recorded an adjustment to reduce the reserves related to facility lease
obligations in the amount of $1 million and made cash payments of $13 million related to these plans during fiscal year 2012. Payment of these
exit costs are expected to continue through the end of fiscal year 2017.
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