Seagate 2008 Annual Report Download - page 85

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
1. Summary of Significant Accounting Policies (Continued)
No. 115
-2 and SFAS No. 124-2 is effective for interim and annual periods ending after June 15, 2009 and was adopted by the Company
beginning in the fourth quarter of its fiscal year 2009. The adoption of FSP No. 115-2 and SFAS No. 124-
2 did not have a material impact on the
Company's consolidated results of operations and financial condition.
In April 2009, the FASB issued FSP SFAS No. 107-1 and Accounting Principles Board Opinions (APB) 28-1, Interim Disclosures about
Fair Value of Financial Instruments
(FSP SFAS No. 107-1 and APB Opinion No. 28-1), which amends SFAS No. 107 and APB Opinion
No. 28,
Interim Financial Reporting
, to require disclosures about fair value of financial instruments in interim and annual reporting periods. FSP
SFAS No. 107-1 and APB Opinion No. 28-1 is effective for interim reporting periods ending after June 15, 2009, and will be adopted by the
Company beginning in the first quarter of its fiscal year 2010. The Company is currently evaluating the impact of the pending adoption on its
consolidated results of operations and financial condition.
In May 2008, the FASB issued FSP, Accounting Principles Board (APB) Opinion No. 14-1, Accounting for Convertible Debt Instruments
That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP APB No. 14-1), which may require the Company to
recognize additional non cash interest expense related to its convertible senior notes in its consolidated statements of operations. FSP APB
No. 14
-1 requires the issuer to separately account for the liability (debt) and equity (conversion option) components of the instrument in a
manner that reflects the issuer's nonconvertible debt borrowing rate. FSP APB No. 14-
1 will be effective for financial statements issued for fiscal
years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption is not permitted. FSP APB No. 14
-
1 must
be applied retrospectively to all periods presented pursuant to the guidance of SFAS No. 154, Accounting Changes and Error Corrections
(SFAS No. 154). The Company will adopt FSP APB No. 14-
1 beginning in the first quarter of its fiscal year 2010, and is currently evaluating the
impact of the pending adoption on its consolidated results of operations and financial condition.
In April 2008, the FASB issued FSP FAS 142-3 , Determination of the Useful Life of Intangible Assets . FSP FAS 142-
3 amends the factors
that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under
SFAS No. 142. FSP FAS 142-3 is effective for fiscal years beginning after December 15, 2008, with early adoption prohibited. The Company is
currently evaluating the impact of the pending adoption of FSP FAS 142-
3 on its fiscal year 2010 consolidated results of operations and financial
condition.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB
Statement No. 133 (SFAS No. 161). SFAS No. 161 requires disclosure of how and why an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for and how derivative instruments and related hedged items affect an entity's financial
position, financial performance, and cash flows. SFAS No. 161 is effective for fiscal years and interim periods beginning after November 15,
2008, with early adoption permitted. The Company implemented SFAS No. 161 in its third fiscal quarter of 2009 (see Note 7).
83