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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements
that require or permit fair value measurements, the FASB having previously concluded in those accounting
pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require
any new fair value measurements. However, for some entities, the application of this Statement will change current
practice. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15,
2007, and interim periods within those fiscal years. The Company is currently evaluating the effect that the adoption
of SFAS No. 157 will have on its consolidated results of operations and financial condition.
In June 2006, the FASB issued FASB Interpretation No. (“FIN”) 48, Accounting for Uncertainty in Income
Taxes — An Interpretation of FASB Statement No. 109 (“FIN No. 48”). This Interpretation clarifies the accounting
for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with SFAS No. 109.
This Interpretation prescribes a recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation is
effective for fiscal years beginning after December 15, 2006 and will be adopted by the Company in the first quarter
of fiscal year 2008. The Company is currently evaluating the effect that the adoption of FIN No. 48 will have on its
consolidated results of operations and financial condition.
In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments
(“SFAS No. 155”), which amends SFAS No. 133, and SFAS No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities
(“SFAS No. 140”). SFAS No. 155 simplifies the accounting for
certain derivatives embedded in other financial instruments by allowing them to be accounted for as a whole if the
holder elects to account for the entire instrument on a fair value basis. SFAS No. 155 also clarifies and amends
certain other provisions of SFAS No. 133 and SFAS No. 140. SFAS No. 155 is effective for all financial instruments
acquired, issued, or subject to a remeasurement event occurring in fiscal years beginning after September 15, 2006.
Earlier adoption is permitted, provided the company has not yet issued financial statements, including for interim
periods, for that fiscal year. The Company does not expect the adoption of SFAS No. 155 to have a material impact
on its consolidated financial position, results of operations, or cash flows.
66