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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
first quarter of fiscal 2013. The Company is currently evaluating how it will report comprehensive income, but the
adoption of either method will constitute a change in the Company’s financial statement presentation.
Note 2. Supplemental Financial Statement Data
Years Ended
June 29,
2012
July 1,
2011
(In millions)
Inventories:
Raw materials and component parts ............................................ $ 245 $ 172
Work-in-process ........................................................... 552 263
Finished goods ............................................................ 413 142
Total inventories ........................................................ $1,210 $ 577
Property, plant and equipment:
Land and buildings ......................................................... $1,222 $ 741
Machinery and equipment ................................................... 5,211 3,664
Furniture and fixtures ....................................................... 15 9
Leasehold improvements ..................................................... 128 108
Construction-in-process ..................................................... 597 315
Total property, plant and equipment ........................................... 7,173 4,837
Accumulated depreciation ................................................... (3,106) (2,613)
Property, plant and equipment, net .......................................... $4,067 $ 2,224
Note 3. Debt
Long-term debt consisted of the following as of June 29, 2012 and July 1, 2011 (in millions):
2012 2011
Term loan .................................... $2,185 $ 294
Less amounts due in one year ..................... (230) (144)
Long-term debt ........................... $1,955 $ 150
On the Closing Date, the Company, in its capacity as the parent entity and guarantor, Western Digital Tech-
nologies, Inc. (“WDT”) and Western Digital Ireland, Ltd. (“WDI”), an indirect wholly owned subsidiary of the
Company, entered into a five-year credit agreement (“the Credit Facility”) with Bank of America, N.A., as admin-
istrative agent, swing line lender and letter of credit issuer and the other lenders party thereto from time to time
(collectively, the “Lenders”). The Credit Facility provided for $2.8 billion of unsecured loan facilities consisting of a
$2.3 billion term loan facility and a $500 million revolving credit facility. The only borrower under the term loan
facility is WDI and the revolving credit facility is available to both WDI and WDT (WDI and WDT are referred to
as “the Borrowers”). The revolving credit facility includes a $50 million sublimit for letters of credit and a $20 mil-
lion sublimit for swing line loans. In addition, the Borrowers may elect to expand the credit facilities by up to $500
million if existing or new lenders provide additional term or revolving commitments.
The $2.3 billion term loan and $500 million revolving loan were borrowed by WDI on the Closing Date and
were used together with existing cash and 25 million newly issued shares of the Company’s common stock to fund the
Acquisition, to repay the existing term loans of WDT, to repay the debt assumed with the Acquisition and to pay
related fees, costs and expenses.
63