Western Digital 2006 Annual Report Download - page 75

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Plan at the discretion of the Board of Directors. For 2006, 2005 and 2004 the Company made contributions to the Plan of
$3.6 million, $3.0 million and $2.9 million, respectively.
Note 10. Business Segment, International Operations and Major Customers
Segment Information
As of June 30, 2006, the Company operated in one segment, the hard drive business.
International Operations
The Company’s operations outside the United States include manufacturing facilities in Malaysia and Thailand as
well as sales offices throughout Canada, Europe, Asia, Japan, India and the Middle East. The following table summarizes
the Company’s operations by geographic areas for the three years ended June 30, 2006 (in millions):
2006 2005 2004
Revenue from external customers(1):
United States .......................................... $1,386 $1,268 $1,141
Asia ................................................ 1,550 1,197 885
Europe, the Middle East and Africa .......................... 1,225 1,069 901
Other ............................................... 180 105 120
Total ................................................ $4,341 $3,639 $3,047
Long-lived assets:
United States .......................................... $ 261 $ 163 $ 121
Asia ................................................ 320 244 181
Europe, the Middle East and Africa .......................... — — —
Other ............................................... — — —
Total ................................................ $ 581 $ 407 $ 302
(1) Revenue is attributed to geographic regions based on location of customer.
Major Customer
During 2006, 2005 and 2004, sales to Dell accounted for 12%, 16% and 14% of the Company’s revenue,
respectively.
Note 11. Income Taxes
Pre-tax Income
The domestic and foreign components of income (loss) before income taxes were as follows for the three years ended
June 30, 2006 (in millions):
2006 2005 2004
(as adjusted) (as adjusted)
Foreign . . . ........................................ $272.3 $236.2 $199.4
Domestic . ........................................ 109.4 (36.1) (45.6)
Income before income taxes........................... $381.7 $200.1 $153.8
69
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)