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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. Changes in
the Company's product warranty liability during the fiscal years ended June 29, 2012, July 1, 2011 and July 2, 2010 were as follows:
17. Related Party Transactions
In connection with the Company's acquisition of the Samsung HDD business, Samsung became a shareholder of the Company and
appointed one of its executives on the Company's Board of Directors.
Samsung Electronics Co. Ltd. ("Samsung") The Company recorded revenue of $407 million from sales to Samsung for fiscal year 2012.
The Company made payments to Samsung in fiscal years 2012 of $102 million related to purchases of components and services. The Company
had accounts payable to Samsung of $25 million and accounts receivable from Samsung of $64 million at June 29, 2012.
During fiscal year 2012, members of the Company's board of directors also served on the boards of the following companies with which the
Company had transactions:
Symantec Corporation ("Symantec")
The Company made payments of $30 million for the purchase of its new Cupertino, California facility
to Symantec in fiscal year 2011.
United Parcel Service, Inc. ("UPS") The Company made payments for freight and logistics services to UPS of $94 million, $150 million
and $120 million in fiscal years 2012, 2011, and 2010, respectively. At June 29, 2012, and July 1, 2011, the Company had accounts payable to
UPS of $15 million and $14 million, respectively.
LSI Corporation ("LSI")
The Company recorded revenue of $4 million, $65 million and $63 million from sales to LSI for fiscal years 2012,
2011, and 2010, respectively. The Company made payments to LSI in fiscal years 2012, 2011, and 2010 of $685 million, $333 million and
$320 million, respectively, related to purchases of various components. The Company had accounts payable to LSI of $455 million and
$70 million at June 29, 2012 and July 1, 2011, respectively.
Microsoft Corporation ("Microsoft") The Company recorded revenue of $54 million from sales to Microsoft for fiscal year 2012. The
Company made payments to Microsoft in fiscal year 2012 of $24 million related to purchases of licensed software. The Company had accounts
receivable from Microsoft of $39 million at June 29, 2012.
111
Fiscal Years Ended
(In millions)
June 29,
2012 July 1,
2011 July 2,
2010
Balance, beginning of period
$
348
$
372
$
437
Warranties issued
169
199
200
Repairs and replacements
(284
)
(221
)
(214
)
Changes in liability for pre-existing warranties,
including expirations
58
(2
)
(51
)
Warranty liability assumed from Samsung HDD
business
72
—
—
Balance, end of period
$
363
$
348
$
372