Western Digital 2006 Annual Report Download - page 49

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As of June 30, 2006, we had outstanding the following purchased foreign currency forward exchange contracts (in
millions, except weighted average contract rate):
Contract
Amount
Weighted Average
Contract Rate*
Unrealized
Gain
Foreign currency forward contracts:
Thai Baht ............................. $261.5 38.34 $1.3
Euro ................................. $ 1.1 0.78 —
British Pound Sterling . . . ................. $ 1.3 0.54 —
* Expressed in units of foreign currency per dollar.
In 2006, 2005 and 2004, total realized transaction and forward exchange contract currency gains and losses were not
material to our consolidated financial statements.
Disclosure About Other Market Risks
Variable Interest Rate Risk
At our option, borrowings under the Senior Credit Facility would bear interest at either LIBOR (with option
periods of one to three months) or a base rate, plus a margin. If LIBOR or the base rate increases, our interest payments
would also increase. At June 30, 2006, we had a $25 million term loan outstanding under the Senior Credit Facility. A
one percent increase in the variable rate of interest on the Senior Credit Facility would increase interest expense by
approximately $0.2 million annually.
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