Seagate 2013 Annual Report Download - page 117

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company recorded amounts for both adverse and favorable leasehold interests and for exit costs that apply directly to the lease
commitments assumed through the 2006 acquisition of Maxtor. As of June 27, 2014, the Company had a $4 million adverse leasehold interest
related to leases acquired from Maxtor. The adverse leasehold interest is being amortized to Cost of revenue and Operating expenses over the
remaining duration of the leases. In addition, the Company had $5 million and $9 million remaining in accrued exit costs related to the planned
exit of Maxtor leased excess facilities at June 27, 2014 and June 28, 2013, respectively.
Capital Expenditures. The Company's non-
cancelable commitments for construction of manufacturing and product development facilities
and purchases of equipment approximated $189 million at June 27, 2014.
LSI Asset Acquisition. On May 29, 2014, the Company and Avago Technologies Limited, a leading semiconductor device supplier to the
enterprise storage, wired, wireless and industrial end markets, announced that they had entered into a definitive asset purchase agreement under
which the Company will acquire the assets of LSI's Accelerated Solutions Division ("ASD") and Flash Components Division ("FCD") from
Avago for $450 million in cash. The acquisition strengthens the Company's strategy to deliver a full suite of storage solutions, by providing it
with established Enterprise PCIe flash and SSD controller capabilities to deliver solutions for the growing flash storage market. The transaction
is expected to close in the first quarter of fiscal year 2015, subject to the satisfaction of customary closing conditions and the receipt of certain
regulatory approvals, including those required by the Hart-Scott-
Rodino Antitrust Improvements Act. Because the transaction was pending at the
time this Annual Report on Form 10-K was filed with the Securities and Exchange Commission, certain disclosures required by ASC Topic 805
Business Combinations have not been made herein.
16. Guarantees
Indemnifications to Officers and Directors
On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands
("Seagate-Cayman"), then the parent company, entered into a new form of indemnification agreement (the "Revised Indemnification
Agreement") with its officers and directors of Seagate-Cayman and its subsidiaries (each, an "Indemnitee"). The Revised Indemnification
Agreement provides indemnification in addition to any of Indemnitee's indemnification rights under Seagate-Cayman's Articles of Association,
applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys' fees), judgments, fines and settlement
amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman
or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-
Cayman or any of its subsidiaries or
of any other entity to which he or she provides services at Seagate-
Caymans' request. However, an Indemnitee shall not be indemnified under the
Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee's duty to Seagate-
Cayman or the applicable
subsidiary of Seagate-Cayman or (ii) Indemnitee's conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view
to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement
provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification
Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be
indemnified.
On July 3, 2010 pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of
Seagate Technology plc (the "Company") and Seagate-Cayman became a
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