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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
Court's decision was correct, and will file a petition for review with the Minnesota Supreme Court. If the Minnesota
Supreme Court elects not to hear the Company's petition for review or affirms the Court of Appeals decision, the Dis-
trict Court is expected to enter an order and judgment confirming the $630.4 million final arbitration award, plus
post-award interest on the $525 million initial award at the statutory rate of 10% from January 24, 2012. No judg-
ment will be entered while the Company is petitioning the Minnesota Supreme Court. The Company will continue to
vigorously defend this matter. Nevertheless, in light of uncertainties, including the fact that the review of the Court
of Appeals decision by the Minnesota Supreme Court is discretionary, the Company recorded an accrual of $681 mil-
lion for this matter in its financial statements for the three months ended June 28, 2013. This amount is in addition
to the $25 million previously accrued in the fourth quarter of fiscal 2011. The total amount accrued of $706 million
represents the amount of the final arbitration award, plus interest accrued on the initial arbitration award at the stat-
utory rate of 10% from January 24, 2012 through June 28, 2013.
Other Matters
In the normal course of business, the Company is subject to other legal proceedings, lawsuits and other claims.
Although the ultimate aggregate amount of probable monetary liability or financial impact with respect to these
other matters is subject to many uncertainties and is therefore not predictable with assurance, management believes
that any monetary liability or financial impact to the Company from these other matters, individually and in the
aggregate, would not be material to the Company's financial condition, results of operations or cash flows. However,
there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from
these other matters could differ materially from those projected.
Note 6.
Business Segment, Geographic Information and Major Customers
Segment Information
The Company operates in one reportable operating segment, the hard drive business.
Geographic Information
The Company's operations outside the United States include manufacturing facilities in China, Japan, Malaysia,
the Philippines, Singapore, and Thailand as well as sales offices throughout the Americas, Asia Pacific, Europe and the
Middle East. The following table summarizes the Company's operations by geographic area for the three years ended
June 28, 2013 (in millions):
2013
2012
2011
Net revenue(1):
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 3,403
$ 2,366
$1,589
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,145
2,826
1,697
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,129
4,393
3,737
Europe, Middle East and Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,056
2,325
2,196
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
618
568
307
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,351
$12,478
$9,526
Long-lived assets:
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,517
$ 1,687
$1,285
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
348
428
--
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,434
4,915
1,345
Europe, Middle East and Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139
35
1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 6,438
$ 7,065
$2,631
71