Seagate 2012 Annual Report Download - page 117

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the
accompanying consolidated financial statements with respect to these indemnification obligations.
Product Warranty
The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products
for a period of one to five years. The Company uses estimated 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 28, 2013, June 29, 2012 and July 1, 2011 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 to the Company's Board of Directors.
Samsung Electronics Co. Ltd. ("Samsung") The Company recorded revenue of $413 million and $407 million from sales to Samsung for
fiscal year 2013 and 2012, respectively. The Company made payments to Samsung in fiscal years 2013 and 2012 of $393 million and
$102 million, respectively, related to purchases of components and services. The Company had accounts payable to Samsung of $48 million and
$25 million at June 28, 2013 and June 29, 2012, respectively. The Company had accounts receivable from Samsung of $49 million and
$64 million at June 28, 2013 and June 29, 2012, respectively.
During the years presented, 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 and
$150 million in fiscal years 2012, and 2011, respectively. At June 29, 2012, the Company had accounts payable to UPS of $15 million. UPS was
no longer deemed a related party during fiscal year 2013.
LSI Corporation ("LSI") The Company recorded revenue of $4 million and $65 million from sales to LSI for fiscal years 2012 and 2011,
respectively. There was no material revenue in fiscal year 2013. The Company made payments to LSI in fiscal years 2013, 2012, and 2011 of
$574 million, $685 million and
109
Fiscal Years Ended
(In millions)
June 28,
2013
June 29,
2012
July 1,
2011
Balance, beginning of period
$
363
$
348
$
372
Warranties issued
193
169
199
Repairs and replacements
(276
)
(284
)
(221
)
Changes in liability for pre-existing warranties,
including expirations
37
58
(2
)
Warranty liability assumed from acquisitions
3
72
—
Balance, end of period
$
320
$
363
$
348