Seagate 2014 Annual Report Download - page 110
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
SeagateTechnologyLLCv.WesternDigitalCorp.OnOctober8,2014,theMinnesotaSupremeCourtruledthatthearbitrationawardinfavorofthe
CompanyinitscaseagainstWesternDigitalforthemisappropriationoftheCompany'stradesecretsshouldbeconfirmed.Inthearbitrationaward,issuedon
January23,2012,thearbitratordeterminedthatWesternDigitalanditsformeremployeehadmisappropriatedtheCompany'stradesecrets.Thearbitratorawarded
theCompany$525millionincompensatorydamagesand,afteraddinginterest,issuedafinalawardof$630million.Interestonthefinalawardhasbeenaccruing
at10%.OnOctober14,2014,theCompanyreceivedapartialpaymentfromWesternDigitalintheamountof$773million.Theamountofthefinalaward,less
litigationandotherrelatedcosts,hasbeenrecordedbytheCompanyinGainonarbitrationaward,net,andtheremainingamountreceivedhasbeenrecordedin
Other,net.
EnvironmentalMatters
TheCompany'soperationsaresubjecttoU.S.andforeignlawsandregulationsrelatingtotheprotectionoftheenvironment,includingthosegoverning
dischargesofpollutantsintotheairandwater,themanagementanddisposalofhazardoussubstancesandwastesandthecleanupofcontaminatedsites.Someofthe
Company'soperationsrequireenvironmentalpermitsandcontrolstopreventandreduceairandwaterpollution,andthesepermitsaresubjecttomodification,
renewalandrevocationbyissuingauthorities.
TheCompanyhasestablishedenvironmentalmanagementsystemsandcontinuallyupdatesitsenvironmentalpoliciesandstandardoperatingproceduresfor
itsoperationsworldwide.TheCompanybelievesthatitsoperationsareinmaterialcompliancewithapplicableenvironmentallaws,regulationsandpermits.The
Companybudgetsforoperatingandcapitalcostsonanongoingbasistocomplywithenvironmentallaws.Ifadditionalormorestringentrequirementsareimposed
ontheCompanyinthefuture,itcouldincuradditionaloperatingcostsandcapitalexpenditures.
Someenvironmentallaws,suchastheComprehensiveEnvironmentalResponseCompensationandLiabilityActof1980(asamended,the"Superfund"law)
anditsstateequivalents,canimposeliabilityforthecostofcleanupofcontaminatedsitesuponanyofthecurrentorformersiteownersoroperatorsoruponparties
whosentwastetothesesites,regardlessofwhethertheowneroroperatorownedthesiteatthetimeofthereleaseofhazardoussubstancesorthelawfulnessofthe
originaldisposalactivity.TheCompanyhasbeenidentifiedasapotentiallyresponsiblepartyatseveralsites.Ateachofthesesites,theCompanyhasanassigned
portionofthefinancialliabilitybasedonthetypeandamountofhazardoussubstancesdisposedofbyeachpartyatthesiteandthenumberoffinanciallyviable
parties.TheCompanyhasfulfilleditsresponsibilitiesatsomeofthesesitesandremainsinvolvedinonlyafewatthistime.
WhiletheCompany'sultimatecostsinconnectionwiththesesitesisdifficulttopredictwithcompleteaccuracy,basedonitscurrentestimatesofcleanupcosts
anditsexpectedallocationofthesecosts,theCompanydoesnotexpectcostsinconnectionwiththesesitestobematerial.
TheCompanymaybesubjecttovariousstate,federalandinternationallawsandregulationsgoverningtheenvironment,includingthoserestrictingthe
presenceofcertainsubstancesinelectronicproducts.Forexample,theEuropeanUnion("EU")enactedtheRestrictionoftheUseofCertainHazardousSubstances
inElectricalandElectronicEquipment,whichprohibitstheuseofcertainsubstances,includinglead,incertainproducts,includingdiskdrivesandserverstorage
products,putonthemarketafterJuly1,2006.Similarlegislationhasbeenormaybeenactedinotherjurisdictions,includingintheUnitedStates,Canada,Mexico,
Taiwan,China,Japanandothers.TheEuropeanUnionREACHDirective(Registration,Evaluation,Authorization,andRestrictionofChemicals,EC1907/2006)
alsorestrictssubstancesofveryhighconcern("SVHCs")inproducts.IftheCompanyoritssuppliersfails
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