Project Four - Fair Value

1. Is your firm or its competitor a CONSOLIDATED firm?

Yes, both of them are consolidated firm.

2. If you do have consolidated financial statements, are any of your subsidiaries in foreign countries?

Yes, Seagate has many subsidiaries in many countries, especially in Europe and Asia.

"We have significant operations in foreign countries, including manufacturing facilities, sales personnel and customer support operations. We have manufacturing facilities in China, Malaysia, Northern Ireland, Singapore and Thailand, in addition to those in the United States. A substantial portion of our client compute disk drive assembly occurs in our facility in China." (10K form Annual report as of Aug. 20, 2010)

How does that affect the consolidation (look for foreign currency translation gains and losses.)

Seagate hedges against forex gains/losses with the use of foreign currency forward contracts. These contracts guarantee todays rates in futures periods. However, Seagate still lost $15 million in foreign currency measurements in 2010

Other Income (Expense), net

Fiscal Years Ended

(Dollars in millions) July 2,

2010 July 3,

2009 (1) Change %

Change

Other income (expense), net $ (171 ) $ (149 ) $ (22 ) 15 %

"The change in Other income (expense), net for fiscal year 2010 compared to fiscal year 2009 was primarily due to a $31 million increase in interest expense resulting from higher average borrowing costs, a decrease in gains from foreign currency remeasurements of $15 million, a $13 million write-down of an equity investment in fiscal year 2010, a $12 million decrease in interest income as a result of lower yields on our cash and investments and an $8 million non-recurring gain recognized on the sale of an equity investment in fiscal year 2009. These were partially offset by a $44 million loss related to our deferred compensation plan assets recorded in fiscal year 2009."

3. If you do have consolidated financial statements, where