Seagate 2008 Annual Report Download - page 151

Download and view the complete annual report

Please find page 151 of the 2008 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 205

  • 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
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
19. Supplementary Financial Data (Unaudited) (Continued)
The Company operated and reported financial results based on 13 week quarters in fiscal year 2008, which ended on the Friday closest to
September 30, December 31, March 31, and June 30.
The results for the first quarter of fiscal year 2008 include approximately $69 million of variable performance-based compensation,
$29 million of stock-based compensation, $24 million in the amortization of intangibles primarily related to the Maxtor acquisition and
$5 million in restructuring charges.
The results for the second quarter of fiscal year 2008 include approximately $77 million of variable performance-based compensation,
$29 million of stock-based compensation, $24 million in the amortization of intangibles primarily related to the Maxtor acquisition, $27 million
in restructuring charges primarily related to the closure of the Company's Limavady, Northern Ireland operations and $15 million of gains on the
sale of assets.
The results for the third quarter of fiscal year 2008 include approximately $71 million of variable performance-based compensation,
$28 million of stock-based compensation, $26 million in the amortization of intangibles primarily related to the Maxtor acquisition and
$20 million in restructuring and other charges primarily related to the closure of the Company's Limavady, Northern Ireland operations.
The results for the fourth quarter of fiscal year 2008 include approximately $45 million of variable performance-based compensation,
$27 million of stock-based compensation, $20 million in the amortization of intangibles primarily related to the Maxtor acquisition and
$36 million in restructuring charges, primarily related to the closure of the Company's Limavady, Northern Ireland and Milpitas, California
operations.
20. Subsequent Events
The Company has evaluated events and transactions subsequent to July 3, 2009 through August 19, 2009.
The Company announced on August 4, 2009 that it will close its Ang Mo Kio (AMK) facility in Singapore by the end of calendar year
2010. The hard drive manufacturing operations will be relocated to other existing Seagate facilities and the Company's Asia International
Headquarters (IHQ) will remain 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 does not expect the closure to
meaningfully change production capacity. The Company currently estimates total restructuring charges related to the closure of AMK of
approximately $80 million, all in cash, including approximately $60 million for severance, approximately $10 million for the relocation
149
Fiscal Year 2008 Quarters Ended
(Dollars in millions, except per share data)
September 28,
2007
December 28,
2007
March 28,
2008
June 27,
2008
Revenue
$
3,285
$
3,420
$
3,104
$
2,899
Gross margin
809
889
816
691
Income (loss) from operations
396
420
363
197
Net income (loss)
355
403
344
160
Net income (loss) per share:
Basic
$
0.67
$
0.77
$
0.68
$
0.33
Diluted
0.64
0.73
0.65
0.32