Seagate 2011 Annual Report Download - page 114

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Some environmental laws, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended, the
"Superfund" law) and its state equivalents, can impose liability for the cost of cleanup of contaminated sites upon any of the current or former
site owners or operators or upon parties who sent waste to these sites, regardless of whether the owner or operator owned the site at the time of
the release of hazardous substances or the lawfulness of the original disposal activity. The Company has been identified as a potentially
responsible party at several sites. At each of these sites, the Company has an assigned portion of the financial liability based on the type and
amount of hazardous substances disposed of by each party at the site and the number of financially viable parties. The Company has fulfilled its
responsibilities at some of these sites and remains involved in only a few at this time.
While the Company's ultimate costs in connection with these sites is difficult to predict with complete accuracy, based on its current
estimates of cleanup costs and its expected allocation of these costs, the Company does not expect costs in connection with these sites to be
material.
The Company may be subject to various state, federal and international laws and regulations governing the environment, including those
restricting the presence of certain substances in electronic products. For example, the European Union ("EU") enacted the Restriction of the Use
of Certain Hazardous Substances in Electrical and Electronic Equipment, which prohibits the use of certain substances, including lead, in certain
products, including disk drives, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions,
including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration,
Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern ("SVHCs") in products.
If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they
are enacted worldwide, it could have a materially adverse effect on the Company's business.
Other Matters
The Company is involved in a number of other judicial and administrative proceedings incidental to its business, and the Company may be
involved in various legal proceedings arising in the normal course of its business in the future. Although occasional adverse decisions or
settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial
position or results of operations.
15. Commitments
Leases. The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases
expire at various dates through 2067 and contain various provisions for rental adjustments including, in certain cases, a provision based on
increases in the Consumer Price Index. Also, certain leases provide for renewal of the lease at the Company's option at expiration of the lease.
All of the leases require the Company to pay property taxes, insurance and normal maintenance costs.
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