Seagate 2015 Annual Report Download - page 101

TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
measurementdate.TheCompanycorroboratesthepricesobtainedfromthepricingserviceagainstotherindependentsourcesand,asofJuly1,2016,hasnotfound
itnecessarytomakeanyadjustmentstothepricesobtained.TheCompany'sderivativefinancialinstrumentsarealsoclassifiedwithinLevel2.TheCompany's
derivativefinancialinstrumentsconsistofforeigncurrencyforwardexchangecontractsandtheTRS.TheCompanyrecognizesderivativefinancialinstrumentsin
itsconsolidatedfinancialstatementsatfairvalue.TheCompanydeterminesthefairvalueoftheseinstrumentsbyconsideringtheestimatedamountitwouldpayor
receivetoterminatetheseagreementsatthereportingdate.
AsofJuly1,2016andJuly3,2015,wehadnoLevel3assetsorliabilities.
ItemsMeasuredatFairValueonaNon-RecurringBasis
TheCompanyentersintocertainstrategicinvestmentsforthepromotionofbusinessandstrategicobjectives.Strategicinvestmentsinequitysecuritieswhere
theCompanydoesnothavetheabilitytoexercisesignificantinfluenceovertheinvestees,includedinOtherassets,netintheConsolidatedBalanceSheets,are
recordedatcostandareperiodicallyanalyzedtodeterminewhetherornotthereareindicatorsofimpairment.ThecarryingvalueoftheCompany'sstrategic
investmentsatJuly1,2016andJuly3,2015totaled$113millionand$120million,respectively,andconsistedprimarilyofprivatelyheldequitysecuritieswithout
areadilydeterminablefairvalue.
Duringthefiscalyears2016,2015and2014,theCompanydeterminedthatcertainofitsequityinvestmentsaccountedforunderthecostmethodwereother-
than-temporarilyimpaired,andrecognizedchargesof$13million,$7millionand$2million,respectively,inordertowritedownthecarryingamountofthe
investmentstoitsestimatedfairvalue.TheseamountswererecordedinOther,netintheConsolidatedStatementsofOperations.Sincetherewasnoactivemarket
fortheequitysecuritiesoftheinvestee,theCompanyestimatedfairvalueoftheinvesteebyanalyzingtheunderlyingcashflowsandfutureprospectsofthe
investee.
OtherFairValueDisclosures
TheCompany'sdebtiscarriedatamortizedcost.ThefairvalueoftheCompany'sdebtisderivedusingtheclosingpriceofthesamedebtinstrumentsasofthe
dateofvaluation,whichtakesintoaccounttheyieldcurve,interestrates,andotherobservableinputs.Accordingly,thesefairvaluemeasurementsarecategorized
asLevel2.ThefollowingtablepresentsthefairvalueandamortizedcostoftheCompany'sdebtinorderofmaturity:
98
 July1,2016 July3,2015 
(Dollarsinmillions) 
Carrying
Amount 
Estimated
FairValue 
Carrying
Amount 
Estimated
FairValue 
3.75%SeniorNotesdueNovember2018  $ 800 $ 804 $ 800 $ 828
7.00%SeniorNotesdueNovember2021   158  164  158  170
4.75%SeniorNotesdueJune2023   990  857  1,000  1,016
4.75%SeniorNotesdueJanuary2025   995  795  1,000  995
4.875%SeniorNotesdueJune2027   698  514  698  675
5.75%SeniorNotesdueDecember2034   489  357  499  491
  4,130  3,491  4,155  4,175
Lessshort-termborrowingsandcurrentportionoflong-termdebt   —  —  —  —
Long-termdebt,lesscurrentportion  $ 4,130 $ 3,491 $ 4,155 $ 4,175