Seagate 2010 Annual Report Download - page 99

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company is subject to equity market risks due to changes in the fair value of the notional investments selected by its employees as part
of its SDCP. Prior to January 3, 2011, the Company had a TRS in order to manage the equity market risks associated with the SDCP liabilities.
Effective January 3, 2011, the Company cancelled the TRS, and currently manages its exposure to equity market risks associated with the SDCP
liabilities by investing directly in mutual funds that mirror the employees' investment options.
The following table shows the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance
Sheets as of July 1, 2011 and July 2, 2010:
Fair Values of Derivative Instruments as of July 1, 2011
Fair Values of Derivative Instruments as of July 2, 2010
93
Asset Derivatives
Liability Derivatives
(Dollars in millions)
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Derivatives designated as hedging
instruments:
Foreign currency forward
exchange contracts
Other current assets
$
4
Accrued expenses
$
(2
)
Derivatives not designated as
hedging instruments:
Foreign currency forward
exchange contracts
Other current assets
1
Accrued expenses
(4
)
Total derivatives
$
5
$
(6
)
Asset Derivatives Liability Derivatives
(Dollars in millions)
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Derivatives designated as hedging
instruments:
Foreign currency forward
exchange contracts
Other current assets
$
5
Accrued expenses
$
—
Derivatives not designated as
hedging instruments:
Foreign currency forward
exchange contracts
Other current assets
2
Accrued expenses
—
Total return swap
Other current assets
—
Accrued expenses
(1
)
Total derivatives
$
7
$
(1
)