Seagate 2014 Annual Report Download - page 99
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
fairvaluesofallofitscashequivalentsandshort-terminvestments.Forthecashequivalentsandshort-terminvestmentsintheCompany'sportfolio,multiple
pricingsourcesaregenerallyavailable.Thepricingserviceusesinputsfrommultipleindustrystandarddataprovidersorotherthirdpartysourcesandvarious
methodologies,suchasweightingandmodels,todeterminetheappropriatepriceatthemeasurementdate.TheCompanycorroboratesthepricesobtainedfromthe
pricingserviceagainstotherindependentsourcesand,asofJuly3,2015,hasnotfounditnecessarytomakeanyadjustmentstothepricesobtained.TheCompany's
derivativefinancialinstrumentsarealsoclassifiedwithinLevel2.TheCompany'sderivativefinancialinstrumentsconsistofforeigncurrencyforwardexchange
contractsandtheTRS.TheCompanyrecognizesderivativefinancialinstrumentsinitsconsolidatedfinancialstatementsatfairvalue.TheCompanydeterminesthe
fairvalueoftheseinstrumentsbyconsideringtheestimatedamountitwouldpayorreceivetoterminatetheseagreementsatthereportingdate.
AsofJuly3,2015andJune27,2014,wehadnoLevel3assets.
ItemsMeasuredatFairValueonaNon-RecurringBasis
TheCompanyentersintocertainstrategicinvestmentsforthepromotionofbusinessandstrategicobjectives.Strategicinvestmentsinequitysecuritieswhere
theCompanydoesnothavetheabilitytoexercisesignificantinfluenceovertheinvestees,includedinOtherassets,netintheConsolidatedBalanceSheets,are
recordedatcostandareperiodicallyanalyzedtodeterminewhetherornotthereareindicatorsofimpairment.ThecarryingvalueoftheCompany'sstrategic
investmentsatJuly3,2015andJune27,2014totaled$120millionand$46million,respectively,andconsistedprimarilyofprivatelyheldequitysecuritieswithout
areadilydeterminablefairvalue.
Duringthefiscalyears2015,2014and2013,theCompanydeterminedthatcertainofitsequityinvestmentsaccountedforunderthecostmethodwereother-
than-temporarilyimpaired,andrecognizedchargesof$7million,$2millionand$5million,respectively,inordertowritedownthecarryingamountofthe
investmentstoitsestimatedfairvalue.TheseamountswererecordedinOther,netintheConsolidatedStatementsofOperations.Sincetherewasnoactivemarket
fortheequitysecuritiesoftheinvestee,theCompanyestimatedfairvalueoftheinvesteebyanalyzingtheunderlyingcashflowsandfutureprospectsofthe
investee.
OtherFairValueDisclosures
TheCompany'sdebtiscarriedatamortizedcost.ThefairvalueoftheCompany'sdebtisderivedusingtheclosingpriceofthesamedebtinstrumentsasofthe
dateofvaluation,whichtakesintoaccounttheyieldcurve,interestrates,andotherobservableinputs.Accordingly,thesefairvaluemeasurementsare
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