Seagate 2013 Annual Report Download - page 88

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of June 27, 2014, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows:
5. Restructuring and Exit Costs
During fiscal year 2014, the Company recorded restructuring charges of $24 million comprised primarily of charges related to employee
termination costs associated with a reduction in force during fiscal year 2014. During fiscal years 2013 and 2012, the Company recorded
restructuring and other charges of $2 million and $4 million, respectively, mainly comprised of post-
employment costs associated with a number
of small restructuring plans. 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.
Ang Mo Kio (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 2014, there were no cash payments or other settlements under the AMK Plan and no restructuring
charges related to the plan during fiscal year 2014. Payments under the AMK plan are expected to continue through fiscal year 2016.
2014 Plan. During fiscal year 2014, the Company recorded employee termination costs of $16 million and made cash payments of
$16 million associated with a reduction in the work force. The 2014 Plan was substantially completed during the fiscal year ended June 27, 2014.
Other Restructuring and Exit Costs. Through June 27, 2014, the Company has recorded other restructuring charges of approximately
$124 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 $269 million related to its acquisition of Maxtor. These plans are currently expected to
result in total charges of approximately $400 million. During fiscal year 2014, the Company incurred restructuring charges of $4 million in post-
employment benefits, $2 million in facility lease obligations 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, recorded cash
82
(Dollars in millions)
Amount
2015
$
112
2016
89
2017
78
2018
36
2019
3
Thereafter
2
1
1
1
1
$
320
1
1
1
1
1
1
1
1