Seagate 2014 Annual Report Download - page 46

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TableofContents
•LiquidityandCapitalResources.Ananalysisofchangesinourbalancesheetsandcashflows,anddiscussionofourfinancialconditionincluding
thecreditqualityofourinvestmentportfolioandpotentialsourcesofliquidity.
•ContractualObligationsandOff-Balance-SheetArrangements.Overviewofcontractualobligationsandcontingentliabilitiesandcommitments
outstandingasofJuly3,2015andanexplanationofoff-balance-sheetarrangements.
•CriticalAccountingEstimates.Accountingestimatesthatwebelieveareimportanttounderstandingtheassumptionsandjudgmentsincorporated
inourreportedfinancialresults.
OurCompany
Wearealeadingproviderofelectronicdatastoragetechnologyandsolutions.Ourprincipalproductsareharddiskdrives,commonlyreferredtoasdisk
drives,harddrivesorHDDs.InadditiontoHDDs,weproduceabroadrangeofelectronicdatastorageproductsincludingsolidstatehybriddrives("SSHD"),solid
statedrives("SSD"),PCIecardsandSATAcontrollers.Ourstoragetechnologyportfolioalsoincludesstoragesubsystems,highperformancecomputing(HPC)
solutions,anddatastorageservices.
Harddiskdrivesaredevicesthatstoredigitallyencodeddataonrapidlyrotatingdiskswithmagneticsurfaces.Diskdrivescontinuetobetheprimarymedium
ofmassdatastorageduetotheirperformanceattributes,highqualityandcosteffectiveness.Complementingexistingdatacenterstoragearchitecture,solid-state
storagedevicesuseintegratedcircuitassembliesasmemorytostoredata,andmostSSDsuseNAND-basedflashmemory.InadditiontoHDDsandSSDs,Solid-
statehybriddrives(SSHDs)combinethefeaturesofSSDsandHDDsinthesameunit,containingalargeharddiskdriveandanSSDcachetoimprove
performanceoffrequentlyaccesseddata.
Ourproductsaredesignedforenterpriseserversandstoragesystemsinmissioncriticalandnearlineapplications;clientcomputeapplications,whereour
productsaredesignedprimarilyfordesktopandmobilecomputing;andclientnon-computeapplications,whereourproductsaredesignedforawidevarietyofend
userdevicessuchasdigitalvideorecorders("DVRs"),personaldatabackupsystems,portableexternalstoragesystems,digitalmediasystemsandsurveillance
systems.
Ourproductandsolutionportfoliofortheenterprisedatastorageindustryincludesstorageenclosures,integratedapplicationplatformsandhighperformance
computing("HPC")datastoragesolutions.Ourstoragesubsystemssupportarangeofhigh-speedinterconnecttechnologiestomeetdemandingcostand
performancespecifications.Ourmodularsubsystemarchitectureallowsustosupportmanysegmentswithinthenetworkedstoragemarketbyenablingdifferent
specificationsofstoragesubsystemdesignstobecreatedfromastandardsetofinterlockingtechnologymodules.
Ourdatastorageservicesprovideonlinebackup,dataprotectionandrecoverysolutionsforsmalltomedium-sizedbusinesses.
BusinessOverview
Ourindustryischaracterizedbyseveraltrendsandfactorsthathaveamaterialimpactonourstrategicplanning,financialconditionandresultsofoperations.
DemandforElectronicDataStorage
Thecontinuedadvancementofthecloud,theproliferationofavarietyofmobiledevicesglobally,developmentoftheinternetofthings,increasingly
pervasiveuseofvideosurveillance,evolutionof
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