NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.
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Basis of Presentation and Summary of Significant Accounting Policies
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Organization
Seagate Technology plc (the Company)
is a leading provider of data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products
including solid state drives (SSDs) and storage subsystems.
Hard disk drives are devices that store digitally encoded data on rapidly
rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state
storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND flash memory.
The Companys HDD products are
designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute applications, where its products are designed primarily for desktop and mobile computing; and edge
non-compute
applications, where its products are designed for a wide variety of end user devices such as portable external storage systems, surveillance systems, digital video recorders (DVRs),
network-attached storage (NAS), and gaming consoles. The Companys SSD products mainly include serial attached SCSI (SAS) and
Non-Volatile
Memory Express (NVMe) SSDs.
The Companys enterprise data solutions (formerly referred to as the cloud systems and solutions) portfolio includes modular
original equipment manufacturers (OEM) storage systems
and scale-out storage
servers.
Basis of
Presentation and Consolidation
The Companys unaudited condensed consolidated financial statements include the accounts of the Company and
all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances.
The preparation of financial
statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Companys condensed consolidated financial statements and accompanying
notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed
consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations,
comprehensive income, cash flows and shareholders equity for the periods presented. Such adjustments are of a normal and recurring nature.
The
Companys consolidated financial statements for the fiscal year ended June 29, 2018, are included in its Annual Report on
Form 10-K
as filed with the United States Securities and Exchange
Commission (SEC) on August 3, 2018. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of
June 29, 2018, and the notes thereto, are adequate to make the information presented not misleading.
The results of operations for the three
months ended September 28, 2018 are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the Companys fiscal year ending June 28, 2019. The Company operates and reports
financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three months ended September 28, 2018 and the three months ended September 29, 2017 consisted of 13 weeks. Fiscal year 2019,
which ends on June 28, 2019, and fiscal year 2018, which ended on June 29, 2018, are both comprised of 52 weeks. The fiscal quarters ended September 28, 2018, June 29, 2018, and September 29, 2017, are also referred to
herein as the September 2018 quarter , the June 2018 quarter and the September 2017 quarter, respectively.
Summary of
Significant Accounting Policies
Except for the change in the Companys revenue recognition policy described below, there have been no
material changes to the Companys significant accounting policies disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies of Financial Statements and Supplementary Data contained in Part II, Item 8
of the Companys Annual Report on
Form 10-K
for the fiscal year ended June 29, 2018, as filed with the SEC on August 3, 2018.
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