Seagate 2014 Annual Report Download - page 51

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TableofContents
OperatingExpenses
ProductDevelopmentExpense.Productdevelopmentexpensesforfiscalyear2015increasedfromfiscalyear2014mostlyduetoanincreaseinheadcount
relatedcostsof$111millionattributedtotheconsolidationofXyratexandLSI'sFlashBusinessaswellasa53-weekfiscalyearin2015comparedto52weeksin
2014.
MarketingandAdministrativeExpense.Marketingandadministrativeexpensesforfiscalyear2015increasedfromfiscalyear2014primarilyduetoan
increaseinheadcountrelatedcostsof$50millionattributedtotheconsolidationofXyratexandLSI'sFlashBusiness,non-recurringlegalcostreimbursement
receivedinfiscalyear2014of$24million,aswellasa53-weekfiscalyearin2015comparedto52weeksin2014.
AmortizationofIntangibles.Amortizationofintangiblesforfiscalyear2015increasedby$31million,ascomparedtofiscalyear2014,asaresultofthe
acquisitionsofLSI'sFlashBusinessandXyratex.
RestructuringandOther,net.Restructuringandother,netforfiscalyear2015increasedby$8million,ascomparedtofiscalyear2014primarilyduetoa
restructuringchargerecordedduringtheMarch2015quartertoreduceworkforceasaresultofourongoingfocusoncostefficienciesinallareasofourbusiness.
Gainonarbitrationaward,net.Gainonarbitrationaward,netforfiscalyear2015increasedfromfiscalyear2014duetofinalawardreceivedinthe
amountof$630million,lesslitigationandotherrelatedcostsof$10million,intheCompany'scaseagainstWesternDigitalforthemisappropriationofthe
Company'stradesecrets.
Otherincome(expense),net
Otherincome(expense),netforfiscalyear2015decreasedby$132million,ascomparedtofiscalyear2014primarilyduetothepartialpaymentof
$143millionforinterestaccruedonthefinalarbitrationawardamountinourcaseagainstWesternDigitalandadecreaseinlossesfromearlyredemptionand
repurchaseofdebtof$15million,partiallyoffsetbya$12millionincreaseininterestexpense.
48
 FiscalYearsEnded
(Dollarsinmillions) 
July3,
2015
June27,
2014 Change
%
Change
Productdevelopment  $ 1,353 $ 1,226 $ 127  10%
Marketingandadministrative   857  722  135  19%
Amortizationofintangibles   129  98  31  32%
Restructuringandother,net   32  24  8  33%
Gainonarbitrationaward,net (620)  — (620)  (100)%
Operatingexpenses  $ 1,751 $ 2,070 $ (319) 
 FiscalYearsEnded
(Dollarsinmillions) 
July3,
2015
June27,
2014 Change
%
Change
Otherincome(expense),net  $ (88) $ (220) $ 132  (60)%