Western Digital 2001 Annual Report Download - page 67

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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Transfers between geographic areas are accounted for at prices comparable to normal sales through
outside distributors. General and corporate expenses of $83 million, $62 million and $51 million in 1999, 2000,
and 2001 respectively, have been excluded in determining operating income (loss) by geographic region.
United
States Europe Asia Eliminations Total
(in millions)
Year ended July 3, 1999
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,001 $751 $ 15 $ Ì $2,767
Transfers between geographic areasÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 746 1 2,607 (3,354) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,747 $752 $2,622 $(3,354) $2,767
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (275) $ 7 $ (114) $ 8 $ (374)
IdentiÑable assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 113 $ 97 $ 390 $ (15) $ 585
Year ended June 30, 2000
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,462 $485 $ 10 $ Ì $1,957
Transfers between geographic areasÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 479 3 1,858 (2,340) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,941 $488 $1,868 $(2,340) $1,957
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (296) $104 $ (58) $ (42) $ (292)
IdentiÑable assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 474 $154 $ 16 $ (31) $ 613
Year ended June 29, 2001
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,554 $397 $ 2 $ Ì $1,953
Transfers between geographic areasÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 385 5 1,769 (2,159) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,939 $402 $1,771 $(2,159) $1,953
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4 $(98) $ 111 $ 0 $ 17
IdentiÑable assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 326 $ 38 $ 180 $ (36) $ 508
Major Customer
During 1999 and 2000 sales to one customer accounted for 21% of the Company's revenues. During 2001
sales to one customer accounted for 17% of the Company's revenues and another accounted for 12% of the
Company's revenues.
Note 10. Discontinued Operations
The Company acquired Connex, a San Jose-based startup company formed to develop storage systems
and solutions, on February 1, 1999 for approximately $12.0 million. The purchase price included 575,662
shares of Western Digital common stock valued at $7.9 million, forgiveness of amounts advanced to Connex
prior to the acquisition totaling $2.0 million and the assumption of certain liabilities of approximately
$2.1 million. The acquisition was accounted for as a purchase. At the time of the acquisition, Connex was a
development stage operation with no commercial products yet available for sale. Connex had, at the time of
acquisition, several in-process research and development projects which were approximately 40% complete.
The Company allocated $12.0 million of the purchase price as a one-time charge for in-process research and
development in 1999. Connex continued the development eÅorts and began shipping network attached storage
products during the third quarter of 2000.
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