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TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
EnvironmentalMatters
TheCompany'soperationsaresubjecttoU.S.andforeignlawsandregulationsrelatingtotheprotectionoftheenvironment,includingthosegoverning
dischargesofpollutantsintotheairandwater,themanagementanddisposalofhazardoussubstancesandwastesandthecleanupofcontaminatedsites.Someofthe
Company'soperationsrequireenvironmentalpermitsandcontrolstopreventandreduceairandwaterpollution,andthesepermitsaresubjecttomodification,
renewalandrevocationbyissuingauthorities.
TheCompanyhasestablishedenvironmentalmanagementsystemsandcontinuallyupdatesitsenvironmentalpoliciesandstandardoperatingproceduresfor
itsoperationsworldwide.TheCompanybelievesthatitsoperationsareinmaterialcompliancewithapplicableenvironmentallaws,regulationsandpermits.The
Companybudgetsforoperatingandcapitalcostsonanongoingbasistocomplywithenvironmentallaws.Ifadditionalormorestringentrequirementsareimposed
ontheCompanyinthefuture,itcouldincuradditionaloperatingcostsandcapitalexpenditures.
Someenvironmentallaws,suchastheComprehensiveEnvironmentalResponseCompensationandLiabilityActof1980(asamended,the"Superfund"law)
anditsstateequivalents,canimposeliabilityforthecostofcleanupofcontaminatedsitesuponanyofthecurrentorformersiteownersoroperatorsoruponparties
whosentwastetothesesites,regardlessofwhethertheowneroroperatorownedthesiteatthetimeofthereleaseofhazardoussubstancesorthelawfulnessofthe
originaldisposalactivity.TheCompanyhasbeenidentifiedasapotentiallyresponsiblepartyatseveralsites.Ateachofthesesites,theCompanyhasanassigned
portionofthefinancialliabilitybasedonthetypeandamountofhazardoussubstancesdisposedofbyeachpartyatthesiteandthenumberoffinanciallyviable
parties.TheCompanyhasfulfilleditsresponsibilitiesatsomeofthesesitesandremainsinvolvedinonlyafewatthistime.
WhiletheCompany'sultimatecostsinconnectionwiththesesitesisdifficulttopredictwithcompleteaccuracy,basedonitscurrentestimatesofcleanupcosts
anditsexpectedallocationofthesecosts,theCompanydoesnotexpectcostsinconnectionwiththesesitestobematerial.
TheCompanymaybesubjecttovariousstate,federalandinternationallawsandregulationsgoverningtheenvironment,includingthoserestrictingthe
presenceofcertainsubstancesinelectronicproducts.Forexample,theEuropeanUnion("EU")enactedtheRestrictionoftheUseofCertainHazardousSubstances
inElectricalandElectronicEquipment,whichprohibitstheuseofcertainsubstances,includinglead,incertainproducts,includingdiskdrivesandserverstorage
products,putonthemarketafterJuly1,2006.Similarlegislationhasbeenormaybeenactedinotherjurisdictions,includingintheUnitedStates,Canada,Mexico,
Taiwan,China,Japanandothers.TheEuropeanUnionREACHDirective(Registration,Evaluation,Authorization,andRestrictionofChemicals,EC1907/2006)
alsorestrictssubstancesofveryhighconcern("SVHCs")inproducts.IftheCompanyoritssuppliersfailstocomplywiththesubstancerestrictions,recycle
requirementsorotherenvironmentalrequirementsastheyareenactedworldwide,itcouldhaveamateriallyadverseeffectontheCompany'sbusiness.
OtherMatters
TheCompanyisinvolvedinanumberofotherjudicialandadministrativeproceedingsincidentaltoitsbusiness,andtheCompanymaybeinvolvedinvarious
legalproceedingsarisinginthenormalcourseofitsbusinessinthefuture.Althoughoccasionaladversedecisionsorsettlementsmayoccur,theCompanybelieves
thatthefinaldispositionofsuchmatterswillnothaveamaterialadverseeffectonitsfinancialpositionorresultsofoperations.
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