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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 solutions that enable people to create, manage, experience and preserve digital content. The Com-
pany designs and makes storage devices and home entertainment products under the HGST, WD and G-Technology
brands. 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 operates its global business through two independent subsidiaries due to regulatory require-
ments -- HGST and WD, both long-time innovators in the storage industry.
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 2013, 2012 and 2011 fiscal years which ended on June 28,
2013, June 29, 2012 and July 1, 2011, 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. In fiscal 2013, the
accounts for all foreign subsidiaries have been remeasured using the U.S. dollar as the functional currency. In fiscal
2012, the accounts for all foreign subsidiaries, except for one Japanese subsidiary in which Yen was 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 con-
solidated 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., known until shortly before the Acquisition as Hitachi
Global Storage Technologies Holdings Pte. Ltd. ("HGST") from Hitachi, Ltd. ("Hitachi"). The acquisition is further
described in Note 14. The results of operations of HGST since the date of Acquisition 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. In addi-
tion, the Company enters into certain strategic investments for the promotion of business and strategic objectives.
These strategic investments are recorded at cost within other non-current assets in the consolidated balance sheets and
are periodically analyzed to determine whether or not there are indicators of impairment.
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