Seagate 2015 Annual Report Download - page 80

TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
Property,EquipmentandLeaseholdImprovements,net
Thecomponentsofproperty,equipmentandleaseholdimprovements,netwereasfollows:
Depreciationexpense,whichincludesamortizationofleaseholdimprovements,was$641million,$689millionand$748millionforfiscalyears2016,2015
and2014,respectively.Interestonborrowingsrelatedtoeligiblecapitalexpendituresiscapitalizedaspartofthecostofthequalifiedassetsandamortizedoverthe
estimatedusefullivesoftheassets.Duringfiscalyears2016,2015and2014,theCompanycapitalizedinterestof$13million,$15millionand$7million,
respectively.
Duringfiscalyearended2016,theCompanydetermineditwoulddiscontinuetheuseofcertainmanufacturingpropertyandequipmentintheshort-term,and
thatcertainothermanufacturingpropertyandequipmentwaspermanentlyimpaired,andasaresultrecognizedachargeof$53millionfromthewrite-offand
accelerateddepreciationofofthesefixedassets.ThisamountwasrecordedinCostofrevenueintheConsolidatedStatementofOperations.TheCompanydidnot
recordanymaterialimpairmentchargesinfiscalyears2015and2014.
AccumulatedOtherComprehensiveIncome(Loss)("AOCI")
ThecomponentsofAOCI,netoftax,wereasfollows:
77
(Dollarsinmillions) 
UsefulLife
inYears 
July1,
2016 
July3,
2015 
Landandlandimprovements    $ 69 $ 48
Equipment  3–5   7,681  7,440
Buildingsandleaseholdimprovements  Upto48   1,900  1,595
Constructioninprogress     234  547
    9,884  9,630
Less:accumulateddepreciationandamortization     (7,724)  (7,352)
   $ 2,160 $ 2,278
(Dollarsinmillions) 
Unrealized
Gains(Losses)
onCashFlow
Hedges 
Unrealized
Gains(Losses)
onMarketable
Securities(a) 
Unrealized
Gains(Losses)
onPost-Retirement
Plans 
Foreign
Currency
Translation
Adjustments Total 
BalanceatJune27,2014  $ (1) $ — $ (10) $ 9 $ (2)
Othercomprehensiveincome(loss)before
reclassifications   (11)  —  (5)  (25)  (41)
AmountsreclassifiedfromAOCI   13  —  —  —  13
Othercomprehensiveincome(loss)   2  —  (5)  (25)  (28)
BalanceatJuly3,2015   1  —  (15)  (16)  (30)
Othercomprehensiveincome(loss)before
reclassifications   (4)  —  8  (1)  3
AmountsreclassifiedfromAOCI   2  —  —  —  2
Othercomprehensiveincome(loss)   (2)  —  8  (1)  5
BalanceatJuly1,2016  $ (1) $ — $ (7) $ (17) $ (25)
(a) ThecostofasecuritysoldortheamountreclassifiedoutofAOCIintoearningswasdeterminedusingthespecificidentificationmethod.