Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

As a result of the arrangement to acquire the rights to the TDK Life on Record brand under an exclusive long-term license from TDK Corporation (TDK), TDK became our largest shareholder and owned approximately 18 percent of our shares as of December 31, 2013 and 2012. In connection with this arrangement we entered into a supply agreement, dated July31, 2007, with TDK (Supply Agreement).

In 2013, 2012 and 2011 we purchased products and services under the Supply Agreement which allows us to purchase a limited number of LTO Tape media and Blu-ray removable recording media products and accessory products for resale in the aggregate amounts of approximately $28 million, $38 million and $50 million, respectively, from TDK or its affiliates. The Supply Agreement will be terminated on March 31, 2014. We did not sell products nor provide services to TDK or its affiliates in 2013, 2012 or 2011. Trade payables to TDK or its affiliates were $1.6 million and $9.8 million at December 31, 2013 and 2012 respectively. No trade receivables from TDK or its affiliates were outstanding as of December 31, 2013 or December 31, 2012.

In 2011 we discontinued our tape coating operations at our Weatherford, Oklahoma facility and closed the facility. We signed a strategic agreement with TDK to jointly develop and manufacture magnetic tape technologies in which we collaborated on the research and development of future tape formats in both companies’ research centers in the U.S. and Japan. At the end of 2013, TDK announced its intent to cease manufacturing of magnetic tape and as a result we will transition to source our product from alternate magnetic tape suppliers during 2014.