Seagate 2015 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2015 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 155

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155

TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
unrealizedlossoncashflowhedgeswas$2millionasofJuly1,2016andtheamountofnetunrealizedgainoncashflowhedgeswas$1millionasofJuly3,2015.
TheCompanydedesignatesitscashflowhedgeswhentheforecastedhedgedtransactionsarerealizedoritisprobabletheforecastedhedgedtransactionswill
notoccurintheinitiallyidentifiedtimeperiod.Atsuchtime,theassociatedgainsandlossesdeferredinAccumulatedothercomprehensivelossarereclassified
immediatelyintoearningsandanysubsequentchangesinthefairvalueofsuchderivativeinstrumentsareimmediatelyreflectedinearnings.TheCompanydidnot
recognizeanymaterialnetgainsorlossesrelatedtothelossofhedgedesignationondiscontinuedcashflowhedgesduringfiscalyears2016,2015and2014.Asof
July1,2016,theCompany'sexistingforeigncurrencyforwardexchangecontractsmaturewithin12months.Thedeferredamountcurrentlyrecordedin
Accumulatedothercomprehensivelossexpectedtoberecognizedintoearningsoverthenext12monthsisimmaterial.
ThefollowingtablesshowthetotalnotionalvalueoftheCompany'soutstandingforeigncurrencyforwardexchangecontractsasofJuly1,2016andJuly3,
2015:

TheCompanyissubjecttoequitymarketrisksduetochangesinthefairvalueofthenotionalinvestmentsselectedbyitsemployeesaspartofitsNon-
qualifiedDeferredCompensationPlan—theSeagateDeferredCompensationPlan(the"SDCP").InthequarterendedDecember27,2013,theCompanyentered
intoaTotalReturnSwap("TRS")inordertomanagetheequitymarketrisksassociatedwiththeSDCPliabilities.TheCompanypaysafloatingrate,basedon
LIBORplusaninterestratespread,onthenotionalamountoftheTRS.TheTRSisdesignedtosubstantiallyoffsetchangesintheSDCPliabilityduetochangesin
thevalueoftheinvestmentoptionsmadebyemployees.AsofJuly1,2016,thenotionalinvestmentsunderlyingtheTRSamountedto$94million.Thecontract
termoftheTRSisthroughJanuary2016andissettledonamonthlybasis,thereforelimitingcounterpartyperformancerisk.TheCompanyrenewedthecontract
termthroughJanuary2017undermateriallythesameterms.TheCompanydidnotdesignatetheTRSasahedge.Rather,theCompanyrecordsallchangesinthe
fairvalueoftheTRStoearningstooffsetthemarketvaluechangesoftheSDCPliabilities.
92
 AsofJuly1,2016
(Dollarsinmillions) ContractsDesignatedasHedges ContractsNotDesignatedasHedges
BritishPoundSterling  $ 47 $ 10
 AsofJuly3,2015
(Dollarsinmillions) ContractsDesignatedasHedges ContractsNotDesignatedasHedges
ThaiBaht  $ 18 $ 48
SingaporeDollars   23  42
ChineseRenminbi   5  16
Euro   —  13
BritishPoundSterling   35  —
MalaysianRinggit   12  15
 $ 93 $ 134