WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1.
Organization and Summary of Significant Accounting Policies
Western Digital Corporation (the "Company" or "Western Digital") is an industry-leading developer and manu-
facturer of storage products that enable people to create, manage, experience and preserve digital content. The Com-
pany designs and makes storage devices, networking equipment and home entertainment products under the WD,
HGST and G-Technology brands. The Company serves each of the primary markets addressing storage opportunities
-- enterprise and cloud data centers, client, consumer electronics, backup, the internet and other emerging markets
such as automotive and home and small office networking.
The Company operates its global business through two independent subsidiaries due to regulatory requirements
-- WD and HGST, both long-time innovators in the storage industry.
The Company's principal products today are hard drives that use one or more rotating magnetic disks ("magnetic
media") to store and allow fast access to data. Hard drives are today's primary storage medium for digital content. The
Company's hard drives are used in desktop and notebook computers, corporate and multiple types of data centers, home
entertainment equipment and stand-alone consumer storage devices. The Company's other products include solid-state
drives, home entertainment and networking products and software applications for smart phones and tablets.
The Company has prepared its consolidated financial statements in accordance with accounting principles gen-
erally accepted in the United States ("U.S. GAAP") and has adopted accounting policies and practices which are gen-
erally accepted in the industry in which it operates. The Company's significant accounting policies are summarized
below.
Fiscal Year
The Company has a 52 or 53-week fiscal year. The 2012, 2011 and 2010 fiscal years which ended on June 29,
2012, July 1, 2011 and July 2, 2010, respectively, consisted of 52 weeks each.
Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.
All significant intercompany accounts and transactions have been eliminated in consolidation. The accounts for all
foreign subsidiaries, except for one Japanese subsidiary in which Yen is the functional currency, have been remeasured
using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement or translation of these
accounts from local currencies into U.S. dollars were immaterial to the consolidated financial statements.
On March 8, 2012 ("Closing Date"), the Company completed its acquisition ("the Acquisition") of all of the
issued and paid-up share capital of Viviti Technologies Ltd., until recently known as Hitachi Global Storage Tech-
nologies Holdings Pte. Ltd. ("HGST") from Hitachi, Ltd. ("Hitachi"). On June 30, 2010, the Company acquired the
magnetic media sputtering operations of Hoya Corporation and Hoya Magnetics Singapore Pte. Ltd (together,
"Hoya"). The acquisitions are further described in Note 14. The results of operations of HGST and Hoya since the
dates of their acquisitions are included in the consolidated financial statements.
Cash and Cash Equivalents
The Company's cash equivalents represent highly liquid investments in money market funds, which are invested
in U.S. Treasury securities, U.S. Treasury bills and U.S. Government agency securities with original maturities when
purchased of three months or less.
Investments
The Company's investments consist of auction-rate securities, which are primarily backed by insurance products
with original maturities greater than three months. The Company has classified these investments as available-for-sale
securities and they are carried at fair value within other non-current assets in the consolidated balance sheets.
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