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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
itswarrantyobligation.ChangesintheCompany'sproductwarrantyliabilityduringthefiscalyearsendedJuly1,2016,July3,2015andJune27,2014wereas
follows:
17.RelatedPartyTransactions
SamsungElectronicsCo.Ltd.("Samsung")InconnectionwiththeCompany'sacquisitionoftheSamsungHDDbusiness,Samsungbecameashareholderof
theCompanyandappointedoneofitsexecutivestotheCompany'sBoardofDirectors.OnOctober22,2013,SamsungfiledanamendmenttoitsSchedule13D
indicatingthatitholdslessthan5%oftheCompany'soutstandingshares.Dr.Seh-WoongJeongwasappointedtoourBoardofDirectorsbySamsungandjoined
ourBoardofDirectorsonApril26,2012.HeretiredfromourBoardofDirectorsonOctober22,2014andceasedtobearelatedparty.TheCompanyrecorded
revenueof$216millionfromsalestoSamsungforfiscalyear2014.TheCompanymadepaymentstoSamsunginfiscalyears2014of$318million,relatedto
purchasesofcomponentsandservices.
MicrosoftCorporation("Microsoft")TheCompany'sChairmanandChiefExecutiveOfficeralsoservedontheboardofMicrosoftuntilMarch2014uponhis
resignationandMicrosoftceasedtobearelatedparty.TheCompanyrecordedrevenueof$208millionfromsalestoMicrosoftforfiscalyears2014.TheCompany
madepaymentstoMicrosoftinfiscalyears2014of$1millionrelatedtopurchasesoflicensedsoftware.
18.SubsequentEvents
July2016RestructuringPlan
OnJuly11,2016,theCompanycommittedtoanadditionalrestructuringplan(the"July2016Plan")forcontinuedconsolidationofitsglobalfootprintacross
Asia,EMEAandtheAmericas.TheJuly2016Planincludedreducingworldwideheadcountbyapproximately6,500employees.TheJuly2016Plan,whichthe
Companyexpectstobelargelycompletedbytheendoffiscalyear2017,isexpectedtoresultintotalpretaxchargesofapproximately$164millioninfiscalyear
2017.Thesechargesareexpectedtoconsistofcashexpendituresofapproximately$82millionofemployeeterminationcostsand$51millionofotherexitcosts,as
wellasothernon-cashchargesofapproximately$31million.
113
FiscalYearsEnded
(Inmillions)
July1,
2016
July3,
2015
June27,
2014
Balance,beginningofperiod $ 248 $ 273 $ 320
Warrantiesissued 125 147 177
Repairsandreplacements (152) (187) (228)
Changesinliabilityforpre-existingwarranties,includingexpirations (17) 7 1
Warrantyliabilityassumedfromacquisitions 2 8 3
Balance,endofperiod $ 206 $ 248 $ 273