STX · 10-K · 2026A · Full report

Purchase Commitments and Obligations

Seagate Technology Holdings plc · 2026-08-04 · Importance 64 · Surprise 42 · In source text

The company had approximately $2.1 billion of unconditional purchase obligations as of July 3, 2026, primarily for inventory components purchased from suppliers. Approximately $1.6 billion of those commitments is expected to be paid within one year. The company also had long-term, market-share-based non-cancellable inventory purchase commitments at the fiscal year-end.

Key facts

• We expect $1.6 billion of these purchase commitments to be paid within one year as of July 3, 2026. source
• As of July 3, 2026, we had unconditional purchase obligations of approximately $2.1 billion, primarily related to purchases of inventory components with our suppliers. source
• As of July 3, 2026, we accrued a total of $225 million relating to legal settlements, of which $150 million is expected to be paid within one year and $75 million thereafter. source
• As of July 3, 2026, the amount of future minimum rent expense under non-cancelable operating lease contracts was $437 million, of which $66 million is expected to be paid within one year. source
• We recorded a charge of $105 million in fiscal year 2026 related to a litigation matter. source

Impact estimates