Western Digital 2007 Annual Report Download - page 62

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effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within
those fiscal years. The Company is currently evaluating the impact the adoption of SFAS 157 will have on its consolidated
financial statements.
In February 2007, the FASB issued SFAS Statement No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities” (“SFAS 159”). SFAS 159 permits entities to choose to measure many financial assets and financial
liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported
in earnings. SFAS 159 is effective for fiscal years beginning after November 15, 2007. The Company is currently
assessing the impact SFAS 159 will have on its consolidated financial statements.
Reclassifications
Certain prior years’ amounts have been reclassified to conform to the current year presentation. In addition, the
current presentation within the consolidated statement of cash flows for capital expenditures has been corrected to reflect
capital expenditures on a cash disbursements basis in accordance with Statement of Financial Accounting Standards
(“SFAS”) No. 95, “Statement of Cash Flows.” Previously, the Company presented capital expenditures on an incurred
(accrual) basis. The comparative amounts in the prior period have been corrected to conform to the current period
presentation as follows (in millions):
Current
Classification
Previous
Classification
Current
Classification
Previous
Classification
June 30,
2006
July 1,
2005
Years Ended
Changes in accounts payable . ............ $ 30 $ 64 $ 94 $134
Net cash provided by operating activities .... 368 402 421 461
Capital expenditures .................. 268 302 194 234
Net cash used in investing activities ....... 303 337 274 314
Note 2. Supplemental Financial Statement Data
June 29,
2007
June 30,
2006
Years Ended
(in millions)
Inventories:
Finished goods. ....................................................... $ 153 $ 120
Work in process....................................................... 94 62
Raw materials and component parts......................................... 12 23
$ 259 $ 205
Property and Equipment:
Land and buildings .................................................... $ 189 $ 163
Machinery and equipment ............................................... 1,203 906
Machinery and equipment recorded under capital leases ........................... 60 38
Furniture and fixtures................................................... 12 8
Leasehold improvements ................................................. 53 28
1,517 1,143
Accumulated depreciation and amortization ................................... (776) (594)
Net property and equipment ............................................ $ 741 $ 549
56
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)