! !
!
SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
!
March 28,
2014
ASSETS Current assets: Cash and cash equivalents Short-term investments Restricted cash and investments Accounts receivable, net Inventories Deferred income taxes Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total Assets
$
$
June 28,
2013
2,259 47 4 1,633 846 116 246 5,151 2,065 477 304 467 195 8,659
$
1,345 212 152 453 — 2,162 134 90 121 3,514 6,021
$
$
1,708 480 101 1,670 854 115 484 5,412 2,269 476 405 456 225 9,243
LIABILITIES AND EQUITY
Current liabilities: Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Current portion of long-term debt Total current liabilities Long-term accrued warranty Long-term accrued income taxes Other non-current liabilities Long-term debt, less current portion Total Liabilities
! ! !
Equity: Total Equity Total Liabilities and Equity
$
$
2,638 8,659
$
1,690 335 176 407 3 2,611 144 87 121 2,774 5,737
3,506 9,243
The information as of June 28, 2013 was derived from the Company’s audited Consolidated Balance Sheet as of June 28, 2013.
! SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
!
(Unaudited) For the Three Months Ended March 28,
2014
Revenue
$
Cost of revenue Product development Marketing and administrative Amortization of intangibles Restructuring and other, net Total operating expenses
3,406
For the Nine Months Ended
March 29,
2013
$
3,526
March 28,
2014
$
10,423
March 29,
2013
$
10,927
2,447 297 190 26 2
2,578 294 168 20 1
7,502 903 561 71 20
7,926 839 457 59 2
2,962
3,061
9,057
9,283
Income from operations
444
465
1,366
1,644
Interest income Interest expense Other, net Other expense, net
1 (52 ) (3 )
2 (53 ) 16
7 (145 ) 44
6 (163 ) 41
(54 )
(35 )
(94 )
(116 )
Income before income taxes (Benefit from) provision for income taxes Net income
390 (5 )
430 14
1,272 22
1,528 38
395
416
1,250
1,490
Less: Net income attributable to noncontrolling interest Net income attributable to Seagate Technology plc Net income per share attributable to Seagate Technology plc ordinary shareholders: Basic Diluted Number of shares used in per share calculations: Basic Diluted Cash dividends declared per Seagate Technology plc ordinary share
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—
—
—
—
$
395
$
416
$
1,250
$
1,490
$
1.21 1.17
$
1.16 1.13
$
3.68 3.56
$
3.98 3.86
327 338 $
0.43
358 369 $
—
340 351 $
1.24
374 386 $
1.02
! SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
!
!
For the Nine Months Ended March 28,
2014
!! ! ! ! !
OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Share-based compensation Deferred income taxes Gain on sale of investments Gain on sale of property and equipment Loss on redemption and repurchase of debt Other non-cash operating activities, net Changes in operating assets and liabilities: Restricted cash Accounts receivable, net Inventories Accounts payable Accrued employee compensation Accrued expenses, income taxes and warranty Vendor non-trade receivables Other assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Acquisition of property, equipment and leasehold improvements Proceeds from the sale of property and equipment Proceeds from the sale of strategic investments Purchases of short-term investments Sales of short-term investments Maturities of short-term investments Cash used in acquisition of LaCie S.A., net of cash acquired Other investing activities, net Net cash provided by (used in) investing activities FINANCING ACTIVITIES Repayments of long-term debt and capital lease obligations Net proceeds from issuance of long-term debt Repurchases of ordinary shares Dividends to shareholders Proceeds from issuance of ordinary shares under employee stock plans Escrow deposit for acquisition of noncontrolling shares of LaCie S.A. Other financing activities, net Net cash used in financing activities Effect of foreign currency exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
$
March 29,
2013
1,250
$
668 87 (17 ) (32 ) (6 ) 7 16
651 56 (14 ) (51 ) (34 ) 31 1
104 32 8 (274 ) (123 ) 16 204 41
— 769 123 (462 ) (85 ) (124 ) — 308
1,981
2,659
(428 ) — 72 (87 ) 463 61 — (29 )
(658 29 — (227 201 26 (36 (16
52 (64 791 (1,886 (417 98 — (5
2,259
)
)
) )
(681 ) )
(421 — (1,612 (381 233 (72 —
) )
)
(1,483 ) 1 551 1,708 $
1,490
) ) ) )
(2,253 ) 1 (274 ) 1,707 $
1,433
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Penggunaan informasi finansial non-GAAP Demi mendukung informasi keuangan yang disesuaikan dengan generally accepted accounting principles (GAAP), perusahaan ini menyediakan pengukuran non-GAAP untuk menghitung penghasilan bersih, penghasilan dilusi bersih per saham dan margin kotor dalam persentase pendapatan, yang disesuaikan dari hasil berbasis GAAP agar tidak menyertakan pengeluaranpengeluaran, penghasilan dan kerugian tertentu. Pengukuran-pengukuran non-GAAP ini disediakan untuk memperdalam pemahaman keseluruhan dari pengguna atas kinerja perusahaan kini dan prospeknya di masa depan. Secara spesifik, fihak perusahaan yakin bahwa hasil-hasil non-GAAP dapat menyediakan informasi yang bermanfaat baik untuk manajemen maupun investor mengingat hasil-hasil non-GAAP tersebut tidak mencakup pengeluaran-pengeluaran tertentu yang menurut fihak perusahaan tidak mencerminkan hasil operasional intinya karena konsisten dengan model dan estimasi finansial yang diterbitkan oleh para analis finansial yang mengamati perusahaan. Hasil-hasil non-GAAP tersebut adalah beberapa dari pengukuran-pengukuran utama yang dipakai oleh manajemen untuk mengevaluasi kinerja perusahaan, mengalokasi sumber daya dan membuat perencanaan untuk masa depan. Hasil non-GAAP yang dilaporkan lebih baik hanya dianggap bersifat tambahan untuk hasil yang telah dipersiapkan sesuai dengan GAAP, dan tidak dianggap sebagai pengganti, atau berada di posisi yang lebih tinggi dari, hasi GAAP itu sendiri. Pengukuran-pengukuran non-GAAP ini bisa saja berbeda dengan perhitungan yang dilaporkan oleh perusahaan-perusahan lain yang berada di bawah industri perusahaan ini.
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! SEAGATE TECHNOLOGY PLC ADJUSTMENTS TO GAAP NET INCOME AND DILUTED NET INCOME PER SHARE (In millions, except per share amounts) (Unaudited)
!
For the Three Months Ended March 28, 2014
GAAP net income Non-GAAP adjustments: Cost of revenue Product development Marketing and administrative Amortization of intangibles Restructuring and other, net Other expense (income), net Benefit from income taxes
!
$ A B B C D E F
395
For the Nine Months Ended March 28, 2014
$
11 — 17 26 2 2 —
1,250 48 6 23 71 20 (31 ) (6 )
Non-GAAP net income
$
453
$
1,381
Diluted net income per share: GAAP
$
1.17
$
3.56
Non-GAAP
$
1.34
$
3.93
Shares used in diluted net income per share calculation
338
351
A For the three and nine months ended March 28, 2014, Cost of revenue on a GAAP basis totaled $2,447 million and $7,502 million, respectively, while non-GAAP Cost of revenue, which excludes the net impact of certain adjustments, was $2,436 million and $7,454 million, respectively. The non-GAAP adjustments include amortization of intangibles, and other acquisition related expenses associated with the December 2011 acquisition of Samsung Electronics Co., Ltd.'s hard disk drive business (the "Samsung HDD business") and the August 2012 acquisition of LaCie S.A. ("LaCie").
!
B For the three and nine months ended March 28, 2014, Product development and Marketing and administrative expenses have been adjusted on a non-GAAP basis to exclude the impact of acquisition costs associated with the March 31, 2014 acquisition of Xyratex Ltd., and acquisition and integration costs associated with the acquisitions of the Samsung HDD business and LaCie.
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C For the three and nine months ended March 28, 2014, Amortization of intangibles related to our Samsung HDD business and LaCie acquisitions have been excluded on a non-GAAP basis. D For the three and nine months ended March 28, 2014, Restructuring and other, net, primarily related to our existing restructuring plans have been excluded on a non-GAAP basis. E For the three and nine months ended March 28, 2014, Other expense, net, has been adjusted on a non-GAAP basis primarily to exclude the impact of losses recognized on the early redemption of debt, partially offset by gains recognized upon the sale of certain strategic investments.
!
F For the nine months ended March 28, 2014, Benefit from income taxes has been adjusted on a non-GAAP basis primarily to exclude the impact related to the release of valuation allowance on U.S. deferred tax assets associated with increases in the Company's forecasted U.S. taxable income.
