Seagate 2012 Annual Report Download - page 83

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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company deposited $72 million into an escrow account with the intention of acquiring the remaining publicly held shares of LaCie
through public and private transactions. As of June 28, 2013, a total of $61 million of the Company's deposit had been used to acquire an
additional 30% of the outstanding shares, resulting in an ending ownership interest of approximately 94.5%. The use of this deposit is treated as
a non-cash financing activity and excluded from the Statement of Cash Flows.
Samsung Hard Disk Drive Operations
On December 19, 2011, the Company completed the acquisition of Samsung Electronics Co., Ltd's ("Samsung") hard disk drive business
pursuant to an Asset Purchase Agreement ("APA") by which the Company acquired certain assets and liabilities of Samsung relating to the
research and development, manufacture and sale of hard-disk drives. The transaction and related agreements are expected to improve the
Company's position as a supplier of 2.5-inch products; position the Company to better address rapidly evolving opportunities in markets
including, but not limited to, mobile computing, cloud computing and solid state storage; expand the Company's customer access in China and
Southeast Asia; and accelerate time to market for new products.
The acquisition-date fair value of the consideration transferred totaled $1,140 million, which consisted of $571 million of cash, $10 million
of which was paid as a deposit upon signing the APA in the fourth quarter of fiscal year 2011, and 45.2 million ordinary shares with a fair value
of $569 million. The fair value of the ordinary shares issued was determined based on the closing market price of the Company's ordinary shares
on the acquisition date, less a 16.5% discount for lack of marketability as the shares issued are subject to a restriction that limits their trade or
transfer for approximately a one year period.
The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions):
76
Inventories
$
141
Equipment
76
Intangible assets
580
Other assets
28
Total identifiable assets acquired
825
Warranty liability
(72
)
Other liabilities
(45
)
Total liabilities assumed
(117
)
Net identifiable assets acquired
708
Goodwill
432
Net assets acquired
$
1,140