Seagate 2011 Annual Report Download - page 102

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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
totaled $40 million and $27 million, respectively. The following table presents the Company's assets and liabilities that were measured at fair
value on a non-recurring basis during the year fiscal year 2012:
During the fiscal years 2012, 2011 and 2010, the Company determined that certain of its equity investments accounted for under the cost
method were other-than-temporarily impaired, and recognized a charge of $7 million, $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.
Other Fair Value Disclosures
The Company's debt is carried at amortized cost. The fair value of the Company's debt is derived using the average of bid and ask prices
from brokers on the date of valuation, which takes into account the yield curve, interest rates, and other observable inputs. Accordingly, these
fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company's debt and
capital lease in order of maturity:
96
Fair Value Measurements Using
(Dollars in millions)
Quoted
Prices in
Active
Markets for
Identical
Instruments
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Balance
Assets:
Equity investment
$
—
$
—
$
5
$
5
June 29, 2012
July 1, 2011
(Dollars in millions)
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Capital Leases
$
—
$
—
$
1
$
1
6.375% Senior Notes due October 2011
—
—
559
561
10.0% Senior Secured Second
-
Priority Notes due
May 2014
314
359
403
481
6.8% Senior Notes due October 2016
599
662
599
647
7.75% Senior Notes due December 2018
750
836
750
780
6.875% Senior Notes due May 2020
600
639
600
591
7.00% Senior Notes due November 2021
600
650
600
598
2,863
3,146
3,512
3,659
Less short-term borrowings and current portion of
long
-
term debt
—
—
(
560
)
(562
)
Long
-
term debt, less current portion
$
2,863
$
3,146
$
2,952
$
3,097