Seagate 2011 Annual Report Download - page 77

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
disclosing gross and net information about instruments and transactions eligible for offset and instruments and transactions subject to an
agreement similar to a master netting arrangement. The ASU is effective for the Company's first quarter of fiscal year 2014 and requires the
enhanced disclosures for all comparative periods presented. Other than requiring additional disclosures, the adoption of this new guidance will
not have a material impact on the Company's consolidated financial statements.
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2011-05, Comprehensive
Income (ASC Topic 220)
—Presentation of Comprehensive Income. The ASU requires companies to report comprehensive income, including
items of other comprehensive income, for all periods presented in a single continuous financial statement in the Consolidated Statements of
Operations or split between the Consolidated Statements of Operations and a separate Consolidated Statements of Other Comprehensive Income.
The ASU is effective for the Company's first quarter of fiscal year 2013. Other than requiring additional disclosures, the adoption of this new
guidance will not have a material impact on the Company's consolidated financial statements.
In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (ASC Topic 820)—Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The ASU requires additional disclosures about the sensitivity to
changes in unobservable inputs for Level 3 measurements. In addition, for items that are not measured at fair value on the balance sheet but for
which the disclosure of fair values in the footnotes is required, the ASU requires disclosures of the categorization by level within the fair value
hierarchy. The ASU is effective for the Company's first quarter of fiscal year 2013. Other than requiring additional disclosures, the adoption of
this new guidance will not have a material impact on the Company's consolidated financial statements.
2. Balance Sheet Information
Investments
The Company's available-for-sale securities include investments in auction rate securities. Beginning in fiscal year 2008, the Company's
auction rate securities failed to settle at auction and have continued to fail through June 29, 2012. Since the Company continues to earn interest
on its auction rate securities at the maximum contractual rate, there have been no payment defaults with respect to such securities, and they are
all collateralized, the Company expects to recover the entire amortized cost basis of these auction rate securities. The Company does not intend
to sell these securities and has concluded it is not more likely than not that the Company will be required to sell the securities before the recovery
of their amortized cost basis. As such, the Company believes the impairments totaling $2 million are not other-than-temporary and therefore
have been recorded in Accumulated other comprehensive income (loss). Given the uncertainty as to when the liquidity issues associated with
these securities will improve, these securities were classified within Other assets, net in the Company's Consolidated Balance Sheets.
As of June 29, 2012, the Company's Restricted cash and investments consisted of $73 million in cash equivalents and investments held in
trust for payment of its non-qualified deferred compensation plan liabilities and $20 million in cash and investments held as collateral at banks
for various performance obligations. As of July 1, 2011, the Company's Restricted cash and investments consisted of $84 million in cash and
investments held in trust for payment of its non-qualified deferred compensation plan liabilities and $18 million in cash and investments held as
collateral at banks for various performance obligations.
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