Seagate 2014 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2014 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

TableofContents
ThetablebelowprovidesinformationasofJuly3,2015aboutourforeigncurrencyforwardexchangecontracts.ThetableisprovidedinU.S.dollarequivalent
amountsandpresentsthenotionalamounts(atthecontractexchangerates)andtheweightedaveragecontractualforeigncurrencyexchangerates.
OtherMarketRisks.Wehaveexposuretocounterpartycreditdowngradesintheformofcreditriskrelatedtoourforeigncurrencyforwardexchange
contractsandourfixedincomeportfolio.Wemonitorandlimitourcreditexposureforourforeigncurrencyforwardexchangecontractsbyperformingongoing
creditevaluations.Wealsomanagethenotionalamountofcontractsenteredintowithanyonecounterparty,andwemaintainlimitsonmaximumtenorofcontracts
basedonthecreditratingofthefinancialinstitution.Additionally,theinvestmentportfolioisdiversifiedandstructuredtominimizecreditrisk.AsofJuly3,2015,
wehadnomaterialcreditexposurerelatedtoourforeigncurrencyforwardexchangecontracts.Changesinourcorporateissuercreditratingshaveminimalimpact
onourfinancialresults,butdowngradesmaynegativelyimpactourfuturetransactioncostsandourabilitytoexecutetransactionswithvariouscounterparties.
WearesubjecttoequitymarketrisksduetochangesinthefairvalueofthenotionalinvestmentsselectedbyouremployeesaspartofourSeagateDeferred
CompensationPlan(the"SDCP").Infiscalyear2014,theCompanyenteredintoaTotalReturnSwap("TRS")inordertomanagetheequitymarketrisks
associatedwiththeSDCPliabilities.TheCompanypaysafloatingrate,basedonLIBORplusaninterestratespread,onthenotionalamountoftheTRS.TheTRS
isdesignedtosubstantiallyoffsetchangesintheSDCPliabilityduetochangesinthevalueoftheinvestmentoptionsmadebyemployees.
61
(Dollarsinmillions,exceptaveragecontractrate) 
Notional
Amount
Average
ContractRate
Estimated
Fair
Value(1)
Foreigncurrencyforwardexchangecontracts:       
Thaibaht  $ 66  33.25 $ (1)
ChineseRenminbi   21  6.23  —
MalaysianRingitt   27  3.74  —
SingaporeDollars   65  1.29  (2)
GreatBritishPound   35  1.46  2
Euro   13  1.10  —
Total  $ 227   $ (1)
(1) Equivalenttotheunrealizednetgain(loss)onexistingcontracts.