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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
hedges are recorded in Accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. Derivatives that are not
designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings. The amount of net
unrealized gains (losses) on cash flow hedges was not material as of June 29, 2012 and July 1, 2011.
The Company dedesignates its cash flow hedges when the forecasted hedged transactions are realized or it is probable the forecasted
hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated
other comprehensive income (loss) are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative
instruments are immediately reflected in earnings. The Company did not recognize any material net gains or losses related to the loss of hedge
designation on discontinued cash flow hedges during fiscal years 2012, 2011, and 2010. As of June 29, 2012, the Company's existing foreign
currency forward exchange contracts mature within 12 months. The deferred amount currently recorded in Accumulated other comprehensive
income (loss) expected to be recognized into earnings over the next 12 months is not material.
The following tables show the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 29,
2012 and July 1, 2011:
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 total return swap ("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.
88
As of June 29, 2012
(Dollars in millions)
Contracts Designated as Hedges
Contracts Not Designated as Hedges
Thai baht
$
—
$
252
Singapore dollars
50
21
Chinese renminbi
27
—
Czech koruna
—
7
$
77
$
280
As of July 1, 2011
(Dollars in millions)
Contracts Designated as Hedges Contracts Not Designated as Hedges
Thai baht
$
98
$
235
Singapore dollars
212
9
Chinese renminbi
78
—
Czech koruna
—
11
$
388
$
255