Seagate 2008 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 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)
2. Balance Sheet Information (Continued)
Accounts Receivable
Activity in the allowance for doubtful accounts is as follows:
(1)
(Dollars in millions)
July 3,
2009
June 27,
2008
Accounts receivable
$
1,043
$
1,416
Allowance for doubtful accounts
(10
)
(6
)
$
1,033
$
1,410
(Dollars in millions)
Balance at
Beginning of
Period
Charges to
Operations
Deductions
(1)
Balance at
End of
Period
Fiscal year ended July 3, 2009
$
6
$
4
$
—
$
10
Fiscal year ended June 27, 2008
$
50
$
(3
)
$
(41
)
$
6
Fiscal year ended June 29, 2007
$
37
$
40
$
(27
)
$
50
Uncollectible accounts written off, net of recoveries.
In fiscal year 2007, the Company recorded $40 million of allowance for doubtful accounts following the termination of its distribution
relationships with eSys, previously a distributor of Seagate products. The remaining uncollected balance and the corresponding reserve were
written off in fiscal year 2008.
Inventories
Other Current Assets
Other current assets include non-trade receivables from certain manufacturing vendors resulting from the sale of components to these
vendors who manufacture and sell completed sub-assemblies back to the Company. The Company does not reflect the sale of these components
in Revenue and does not recognize any profits on these sales. The costs of the completed sub-
assemblies are included in inventory upon purchase
from the vendors.
87
(Dollars in millions)
July 3,
2009
June 27,
2008
Raw materials and components
$
201
$
352
Work
-
in
-
process
120
111
Finished goods
266
482
$
587
$
945
(Dollars in millions)
July 3,
2009
June 27,
2008
Vendor non
-
trade receivables
$
326
$
348
Other current assets
202
154
$
528
$
502