Seagate 2010 Annual Report Download - page 107

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
During the fiscal years 2011 and 2010, the Company determined that some of its equity investments accounted for under the cost method
were other-than-temporarily impaired, and recognized a charge of $5 million and $13 million, respectively, in order to write down the carrying
amount of the investment to its estimated fair value. These amounts were recorded in Other, net in the Consolidated Statements of Operations.
Since there was no active market for the equity securities of the investee, the Company estimated fair value of the investee by using the market
approach which was then used to estimate the applicable portion of the fair value of its underlying intellectual property assets at the end of the
fourth quarter of fiscal 2011.
Other Fair Value Disclosures
The Company's debt is carried at amortized cost. The fair value is derived from quoted prices in active markets, except for capital leases,
which are reflected at carrying value. The carrying amounts and fair values of the Company's debt are included in the following table in order of
maturity:
9. Shareholders' Equity
Share Capital
On July 3, 2010, the Company consummated a reorganization pursuant to which Seagate-Ireland became the publicly traded parent of the
Seagate corporate family. In connection with the reorganization, all issued and outstanding Seagate-Cayman common shares were cancelled and
ceased to exist, and Seagate-Ireland issued ordinary shares on a one-for-one basis to the holders of Seagate-Cayman common shares for each
Seagate-Cayman common share that was cancelled. In addition, Seagate-Ireland assumed Seagate-Cayman's equity incentive related plans, sub-
plans and agreements, including, but not limited to, the Seagate Technology 2001 Share Option Plan, the Amended Seagate Technology 2004
Share Compensation Plan, the Seagate Technology Employee Stock Purchase Plan, the Maxtor Corporation 2005 Performance Incentive Plan,
the Maxtor Corporation Amended and Restated 1996 Stock Option Plan, and the Quantum Corporation Supplemental Stock Option Plan.
100
July 1, 2011
July 2, 2010
(Dollars in millions)
Carrying
Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Capital Leases
$
1
$
1
$
2
$
2
6.375% Senior Notes due October 2011
559
561
559
577
5.75% Subordinated Debentures due March 2012
—
—
31
33
2.375% Convertible Senior Notes due August 2012
—
—
298
329
10.0% Senior Secured Second
-
Priority Notes due
May 2014
403
481
413
490
6.8% Senior Notes due October 2016
599
647
599
587
7.75% Senior Notes due December 2018
750
780
—
—
6.875% Senior Notes due May 2020
600
591
600
574
7.00% Senior Notes due November 2021
600
598
—
—
3,512
3,659
2,502
2,592
Less short-term borrowings and current portion of
long
-
term debt
(560
)
(562
)
(329
)
(362
)
Long
-
term debt, less current portion
$
2,952
$
3,097
$
2,173
$
2,230