Seagate 2014 Annual Report Download - page 60
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ContractualObligationsandCommitments
OurcontractualcashobligationsandcommitmentsasofJuly3,2015,havebeensummarizedinthetablebelow:
AsofJuly3,2015,wehadaliabilityforunrecognizedtaxbenefitsandanaccrualforthepaymentofrelatedinteresttotaling$33million,noneofwhichis
expectedtobesettledwithinoneyear.Outsideofoneyear,weareunabletomakeareasonablyreliableestimateofwhencashsettlementwithataxingauthority
willoccur.
Off-BalanceSheetArrangements
AsofJuly3,2015,wedidnothaveanymaterialoff-balancesheetarrangements(asdefinedinItem303(a)(4)(ii)ofRegulationS-K).
CriticalAccountingPolicies
Themethods,estimatesandjudgmentsweuseinapplyingourmostcriticalaccountingpolicieshaveasignificantimpactontheresultswereportinour
consolidatedfinancialstatements.TheSEChasdefinedthemostcriticalaccountingpoliciesastheonesthataremostimportanttotheportrayalofourfinancial
conditionandoperatingresults,andrequireustomakeourmostdifficultandsubjectivejudgments,oftenasaresultoftheneedtomakeestimatesofmattersthat
arehighlyuncertainatthetimeofestimation.Basedonthisdefinition,ourmostcriticalpoliciesinclude:establishmentofsalesprogramaccruals,establishmentof
warrantyaccruals,accountingforincometaxes,andtheaccountingforgoodwillandotherlong-livedassets.Below,wediscussthesepoliciesfurther,aswellasthe
estimatesandjudgmentsinvolved.Wealsohaveotheraccountingpoliciesandaccountingestimatesrelatingtouncollectiblecustomeraccounts,valuationof
inventory,valuationofshare-basedpaymentsandrestructuring.Webelievethattheseotheraccountingpoliciesandaccountingestimateseitherdonotgenerally
requireustomakeestimatesandjudgmentsthatareasdifficultorassubjective,oritislesslikelythattheywouldhaveamaterialimpactonourreportedresultsof
operationsforagivenperiod.
57
FiscalYear(s)
(Dollarsinmillions) Total 2016
2017-
2018
2019-
2020 Thereafter
ContractualCashObligations:
Long-termdebt $ 4,158 $ — $ — $ 800 $ 3,358
Interestpaymentsondebt 1,996 201 369 353 1,073
Capitalexpenditures 147 134 13 — —
Operatingleases(1) 218 41 53 32 92
Purchaseobligations(2) 1,019 916 103 — —
Otherfundingrequirements(3) 48 30 12 6 —
Subtotal 7,586 1,322 550 1,191 4,523
Commitments:
Lettersofcreditorbankguarantees 109 109 — — —
Total $ 7,695 $ 1,431 $ 550 $ 1,191 $ 4,523
(1) Includestotalfutureminimumrentexpenseundernon-cancelableleasesforbothoccupiedandvacatedfacilities(rentexpenseisshownnet
ofsubleaseincome).
(2) Purchaseobligationsaredefinedascontractualobligationsforthepurchaseofgoodsorservices,whichareenforceableandlegallybinding
onus,andthatspecifyallsignificantterms.
(3) Consistsoffundingrequirementsrelatedtostrategiccommitments.