Seagate 2012 Annual Report Download - page 102

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Items Measured at Fair Value on a Non-Recurring Basis
The Company enters into certain strategic investments for the promotion of business and strategic objectives. Strategic investments in
equity securities where the Company does not have the ability to exercise significant influence over the investees, included in Other assets, net in
the Consolidated Balance Sheets, are recorded at cost and are periodically analyzed to determine whether or not there are indicators of
impairment. The carrying value of the Company's strategic investments at June 28, 2013 and June 29, 2012 totaled $66 million and $40 million,
respectively, and consisted primarily of privately held equity securities without a readily determinable fair value.
During the fiscal years 2013, 2012 and 2011, the Company determined that certain of its equity investments accounted for under the cost
method were other-than-temporarily impaired, and recognized charges of $5 million, $7 million and $5 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 closing price as of 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 in order of maturity:
94
June 28, 2013
June 29, 2012
(Dollars in millions)
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
10.0% Senior Secured Second-Priority Notes due
May 2014
$
—
$
—
$
314
$
359
6.8% Senior Notes due October 2016
335
370
599
662
7.75% Senior Notes due December 2018
238
259
750
836
6.875% Senior Notes due May 2020
600
644
600
639
7.00% Senior Notes due November 2021
600
645
600
650
4.75% Senior Notes due June 2023
1,000
938
—
—
Other
4
4
—
—
2,777
2,860
2,863
3,146
Less short-term borrowings and current portion of
long
-
term debt
(3
)
(3
)
—
—
Long
-
term debt, less current portion
$
2,774
$
2,857
$
2,863
$
3,146