Seagate 2014 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2014 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

TableofContents
•$0.7billionfortherepurchaseandredemptionoflongtermdebt;
•$0.6billionindividendspaidtoourshareholders;partiallyoffsetby
•proceedsof$1.8billionfromaggregatecashgeneratedfromtheissuanceofour3.75%SeniorNotesduein2018and4.75%SeniorNotesduein
2025.
Netcashusedinfinancingactivitiesof$2.2billionforfiscalyear2013wasattributabletothefollowingactivities:
•$1.7billionpaidtorepurchase54millionofourordinaryshares;
•$1.2billionfortherepurchaseandredemptionoflongtermdebt;
•$0.5billionindividendspaidtoourshareholders;partiallyoffsetby
•proceedsfromtheissuanceof$1billionofour4.75%notesdue2023;and
•proceedsof$0.3billionfromtheissuanceofordinarysharesunderemployeestockplans.
LiquiditySources
OurprimarysourcesofliquidityasofJuly3,2015,consistedof:(1)approximately$2.5billionincashandcashequivalents,andshort-terminvestments,
(2)cashweexpecttogeneratefromoperationsand(3)a$700millionseniorrevolvingcreditfacility.
AsofJuly3,2015,noborrowingshavebeendrawnundertherevolvingcreditfacilityorhadbeenutilizedforlettersofcreditissuedunderthiscreditfacility.
Thelineofcreditisavailableforborrowings,subjecttocompliancewithfinancialcovenantsandothercustomaryconditionstoborrowing.
Thecreditagreementthatgovernsourrevolvingcreditfacility,asamended,containscertaincovenantsthatwemustsatisfyinordertoremainincompliance
withthecreditagreement,asamended.Theagreementincludesthreefinancialcovenants:(1)minimumcash,cashequivalentsandmarketablesecurities;(2)a
fixedchargecoverageratio;and(3)anetleverageratio.AsofJuly3,2015,wewereincompliancewithallofthecovenantsunderourRevolvingCreditFacility
anddebtagreements.
AsofJuly3,2015,cashandcashequivalentsheldbynon-Irishsubsidiarieswas$2.5billion.ThisamountispotentiallysubjecttotaxationinIrelandupon
repatriationbymeansofadividendintoourIrishparent.However,itisourintenttoindefinitelyreinvestearningsofnon-IrishsubsidiariesoutsideofIrelandand
ourcurrentplansdonotdemonstrateaneedtorepatriatesuchearningsbymeansofataxableIrishdividend.ShouldfundsbeneededintheIrishparentcompany
andshouldwebeunabletofundparentcompanyactivitiesthroughmeansotherthanataxableIrishdividend,wewouldberequiredtoaccrueandpayIrishtaxes
onsuchdividend.
Webelievethatoursourcesofcashwillbesufficienttofundouroperationsandmeetourcashrequirementsforatleastthenext12months.
CashRequirementsandCommitments
Ourliquidityrequirementsareprimarilytomeetourworkingcapital,researchanddevelopmentandcapitalexpenditureneeds,tofundscheduledpaymentsof
principalandinterestonourindebtedness,andtofundourdividend.Ourabilitytofundtheserequirementswilldependonourfuturecashflows,whichare
determinedbyfutureoperatingperformance,andtherefore,subjecttoprevailingglobalmacroeconomicconditionsandfinancial,businessandotherfactors,some
ofwhicharebeyondourcontrol.
OnJuly21,2015,ourBoardofDirectorsapprovedaquarterlycashdividendof$0.54pershare,whichwillbepayableonAugust25,2015toshareholdersof
recordasofthecloseofbusinessonAugust11,2015.
55