Seagate 2008 Annual Report Download - page 97

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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Restructuring and Exit Costs (Continued)
The following table summarizes the Company's restructuring activities for fiscal years 2009, 2008 and 2007.
Of the accrued restructuring balance of approximately $101 million at July 3, 2009, $72 million is included in Accrued expenses and
$29 million is included in Other non-
current liabilities on the accompanying Consolidated Balance Sheet. Of the accrued restructuring balance of
approximately $87 million at June 27, 2008, $80 million is included in Accrued expenses and $7 million is included in Other non-current
liabilities on the accompanying Consolidated Balance Sheet.
5. Credit Facilities, Long-Term Debt and Convertible Notes
Amended Credit Facility
On April 3, 2009, the Company amended the credit agreement governing its credit facility in order to relax certain financial covenants
under the credit agreement. The amendment also reduced the facility size from $500 million to $350 million. The facility size may be further
reduced from $350 million by cash proceeds from certain transactions over specified amounts, including certain asset sales and debt and equity
issuances, which would require the Company to concurrently reduce its borrowings under the credit facility by such amounts to comply with the
reduction in commitments. The amendment also increased the interest rate margin applicable on all funded loans under the credit facility to a rate
of LIBOR plus 350 basis points.
The $350 million outstanding under the credit facility prior to the amendment remains outstanding under the amended credit facility, which
continues to mature in September 2011. The obligations under the credit facility will continue to be guaranteed by the Company and will be
additionally guaranteed by
95
(Dollars in millions)
Employee
Benefits
Operating
Leases
Other
Exit
Costs
Impaired
Equipment
and Other
Intangible
Assets Total
All Restructuring Activities
Accrual balances at June 30, 2006
$
109
$
43
$
81
$
—
$
233
Purchase accounting adjustments
$
(9
)
$
2
$
3
—
(
4
)
Restructuring charges
14
—
—
19
33
Cash payments
(104
)
(17
)
(80
)
—
(
201
)
Non
-
cash charges
—
—
—
(
19
)
(19
)
Accrual balances at June 29, 2007
$
10
$
28
$
4
$
—
$
42
Restructuring charges
58
—
18
3
79
Cash payments
(16
)
(11
)
(4
)
—
(
31
)
Non
-
cash charges
—
—
—
(
3
)
(3
)
Accrual balances at June 27, 2008
$
52
$
17
$
18
$
—
$
87
Restructuring charges
176
12
15
—
203
Cash payments
(164
)
(8
)
(24
)
—
(
196
)
Adjustments
(3
)
19
(9
)
—
7
Accrual balances at July 3, 2009
$
61
$
40
$
—
$
—
$
101