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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
For the year ended June 28, 2013, there were no transfers between levels and no changes in Level 3 financial
assets measured on a recurring basis. For the year ended June 28, 2012, the Company had a $1 million settlement in
its Level 3 financial assets measured on a recurring basis, reducing the balance from $15 million to $14 million.
Note 11.
Foreign Exchange Contracts
As of June 28, 2013, the net amount of unrealized losses with respect to the Company's foreign exchange con-
tracts that is expected to be reclassified into earnings within the next 12 months was $46 million. In addition, as of
June 28, 2013, the Company did not have any foreign exchange contracts with credit-risk-related contingent features.
The Company opened $6.0 billion and $3.2 billion, and closed $4.5 billion and $3.2 billion, in foreign exchange
contracts for the years ended June 28, 2013 and June 29, 2012, respectively. The fair value and balance sheet location
of such contracts were as follows (in millions):
Asset Derivatives
Liability Derivatives
2013
2012
2013
2012
Derivatives Designated as
Hedging Instruments
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Foreign exchange contracts . . . . . . Other current assets
$--
Other current assets
$1
Accrued expenses
$57
Accrued expenses
$22
The impact on the consolidated financial statements was as follows (in millions):
Derivatives in Cash
Flow Hedging Relationships
Amount of Gain (Loss)
Recognized in
Accumulated OCI
on Derivatives
Location of Gain
Reclassified from
Accumulated
OCI into Income
Amount of Gain
Reclassified from
Accumulated OCI into
Income
2013
2012
2013
2012
Foreign exchange contracts . . . . . . . . . . . . . . . . . .$ 13
$(12)
Cost of revenue
$ 43
$ 1
The total net realized transaction and foreign exchange contract currency gains and losses were not material to
the consolidated financial statements during 2013, 2012 and 2011, respectively. See Notes 1 and 10 for additional
disclosures related to the Company's foreign exchange contracts.
Note 12.
Other Intangible Assets
Other intangible assets consist primarily of technology acquired in business combinations and are amortized on a
straight-line basis over the respective estimated useful lives of the assets. Intangible assets as of June 28, 2013 were as
follows:
Weighted Average
Amortization Period
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(in years)
(in millions)
(in millions)
(in millions)
Existing technology . . . . . . . . . . . . . . .
5
$561
$245
$316
Customer relationships . . . . . . . . . . . . .
4
139
57
82
Other . . . . . . . . . . . . . . . . . . . . . . . . . .
3
65
36
29
Leasehold interests . . . . . . . . . . . . . . . .
31
40
5
35
In-process research and development . .
--
143
--
143
Total . . . . . . . . . . . . . . . . . . . . . . . . . .
$948
$343
$605
84