Seagate 2013 Annual Report Download - page 61

Table of Contents
Contractual Obligations and Commitments
Our contractual cash obligations and commitments as of June 27, 2014, have been summarized in the table below:
As of June 27, 2014, we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $90 million,
none of which is expected to be settled within one year. Outside of one year, we are unable to make a reasonably reliable estimate of when cash
settlement with a taxing authority will occur.
On May 29, 2014, we entered into a definitive asset purchase agreement under which we will acquire the assets of LSI's Accelerated
Solutions Division ("ASD") and Flash Components Division ("FCD") from Avago for $450 million in cash. 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.
Off-Balance Sheet Arrangements
As of June 27, 2014, we did not have any material off-balance sheet arrangements (as defined in Item 303(a)(4)(ii) of Regulation S-K).
Critical Accounting Policies
The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we
report in our consolidated financial statements. The SEC has defined the most critical accounting policies as the ones that are most important to
the portrayal of our financial condition and operating results, and require us to make our most difficult and subjective judgments, often as a
result of the need to make estimates of matters that are highly uncertain at the time of estimation. Based on this definition, our most critical
policies include: establishment of sales program accruals, establishment of warranty accruals, accounting for income taxes, and the accounting
for goodwill and other long-
lived assets. Below, we discuss these policies further, as well as the estimates and judgments involved. We also have
other accounting policies and accounting estimates relating to uncollectible customer accounts, valuation of inventory, valuation of share-based
payments and restructuring. We believe that these other accounting policies and accounting estimates either do not generally require us to make
57
Fiscal Year(s)
(Dollars in millions)
Total
2015
2016
-
2017
2018
-
2019
Thereafter
Contractual Cash Obligations:
Long
-
term debt
$
3,920
$
—
$
335
$
800
$
2,785
Interest payments on debt
1,482
216
360
344
562
Capital expenditures
189
109
80
—
—
Operating leases
(1)
200
42
52
37
69
Purchase obligations
(2)
772
772
—
—
—
Subtotal
6,563
1,139
827
1,181
3,416
Commitments:
Letters of credit or bank guarantees
104
104
—
—
—
1
1
1
1
1
1
1
1
1
1
1
1
Total
$
6,667
$
1,243
$
827
$
1,181
$
3,416
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
(1) Includes total future minimum rent expense under non-cancelable leases for both occupied and vacated facilities (rent
expense is shown net of sublease income).
(2) Purchase obligations are defined as contractual obligations for the purchase of goods or services, which are enforceable
and legally binding on us, and that specify all significant terms.