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 &lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Note&amp;#xA0;15.&amp;#xA0;Thailand Flooding&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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 &lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
 &lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;In October
 2011, severe flooding in Thailand inundated all of the
 Company&amp;#x2019;s Thailand manufacturing facilities and submerged
 certain equipment located there. These facilities included the
 Company&amp;#x2019;s magnetic head slider fabrication facilities, as
 well as its hard drive, head gimbal assembly and head stack
 assembly facilities. As a result, the Company recorded $235 million
 of flood-related charges in fiscal 2012, offset by $21 million of
 insurance recoveries and other cost reimbursements. These charges
 are separately stated as a line item, &amp;#x201C;Charges related to
 flooding, net,&amp;#x201D; within operating expenses on the consolidated
 statements of income.&lt;/font&gt;&lt;/p&gt;
 &lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
 &lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company
 maintains insurance coverage that provides property and business
 interruption coverage in the event of losses arising from flooding.
 The Company has submitted claims to its insurers and is awaiting a
 determination of how much of its total losses will be covered by
 insurance.&lt;/font&gt;&lt;/p&gt;


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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 225

 -SubTopic 20

 -Section 50

 -Paragraph 3

 -URI http://asc.fasb.org/extlink&amp;oid=6365513&amp;loc=d3e15138-107781



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