Western Digital 2001 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2001 Western Digital annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following table summarizes the restructuring charges, the amounts paid and the ending accrual
balances (in thousands) for the years ended June 30, 2000 and June 29, 2001:
Non-Cash Total
Accruals Charges Charges
Consolidation of Asian operations and closure of Rochester
design center:
Fixed asset write-oÅs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $56,301 $56,301
Severance and outplacementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28,679 Ì 28,679
Lease cancellation and other (net of favorable lease
settlement of $5,252)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,733 Ì 5,733
34,412 56,301 90,713
Changes to 1999 restructuring estimates:
Gain on sale of Tuas building ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (3,100)
Favorable settlement of 1999 restructuring accruals ÏÏÏÏÏÏ Ì Ì (1,776)
$56,301 $85,837
Cash payments during 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (30,529)
Balance at June 30, 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3,883
Changes during 2001 to 2000 restructuring actions:
Cash payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,883)
Balance at June 29, 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì
Note 9. Business Segment, International Operations and Major Customer
Segment Information
The Company adopted Statement of Financial Accounting Standards No. 131, ""Disclosures about
Segments of an Enterprise and Related Information'' (""SFAS 131'') in 1999. SFAS 131 establishes standards
for reporting Ñnancial and descriptive information about an enterprise's operating segments in its annual
Ñnancial statements and selected segment information in interim Ñnancial reports.
The Company formed new business ventures in 1999, 2000 and 2001. The Company's new business
ventures have included Connex, Inc. (""Connex''), SANavigator, Inc. (""SANavigator''), SageTree, Inc.
(""SageTree''), Keen Personal Media, Inc. (""Keen PM''), and Cameo Technologies, Inc. (""Cameo'').
Connex was formed in 1999 to design and market network attached storage products. SANavigator was
formed as a subsidiary of Connex in 2001 to develop and market storage area network (""SAN'') management
software. SageTree was formed in 2000 to design and market packaged analytical software and related services
for supply chain and product lifecycle applications. Keen PM was formed in 2000 to develop and sell
interactive personal video recorder and set-top box software, services and hardware for broadband television
content management and commerce. Cameo was formed in 2000 to develop technologies and services for
delivering broadcast-quality video content to PC users. Subsequent to June 29, 2001, substantially all of the
assets of Connex and SANavigator were sold and, accordingly, their operations were discontinued (See
Note 10). The Company's chief operating decision maker uses the segment information for WDT and the
Company's combined new business ventures to assess performance and to determine resource allocation. The
continuing separate new business venture amounts do not meet the disclosure requirements of SFAS 131 and
they have been combined and presented in an ""all other'' category, separate from the WDT segment results.
55