Western Digital 2015 Annual Report Download - page 51

offset by $255 million of proceeds related to our revolving credit facility and net $167 million provided by employee
stock plans. Net cash used in financing activities in 2014 consisted of $2.5 billion of proceeds related to our term loan
facility, net of issuance costs, $500 million of debt proceeds related to our revolving credit facility and a net $215
million provided by employee stock plans, offset by $2.5 billion used to repay our term loan facility, as well as $816
million used to repurchase shares of our common stock and $259 million used to pay dividends on our common stock.
Off-Balance Sheet Arrangements
Other than facility lease commitments incurred in the normal course of business and certain indemnification
provisions (see “Contractual Obligations and Commitments” below), we do not have any off-balance sheet financing
arrangements or liabilities, guarantee contracts, retained or contingent interests in transferred assets, or any obligation
arising out of a material variable interest in an unconsolidated entity. We do not have any majority-owned sub-
sidiaries that are not included in the consolidated financial statements. Additionally, we do not have an interest in, or
relationships with, any special-purpose entities.
Contractual Obligations and Commitments
The following is a summary of our known contractual cash obligations and commercial commitments as of
July 3, 2015 (in millions):
Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
Revolving credit facility* .................. $ 255 $ 255 $ — $ — $—
Long-term debt, including current portion* . . . $2,312 $ 156 $469 $1,687 $—
Operating leases ......................... 185 40 58 42 45
Purchase obligations ..................... 2,844 2,809 28 6 1
Total ............................... $5,596 $3,260 $555 $1,735 $46
* Included within our consolidated balance sheet
Debt
As of July 3, 2015, we had $255 million outstanding on our revolving credit facility and $2.3 billion out-
standing on our term loan facility. The revolving credit facility is classified within current liabilities on our con-
solidated balance sheet as of July 3, 2015 due to our intent to repay the borrowings in 2016. We are required to make
quarterly principal payments on the term loan facility totaling $156 million in fiscal 2016, $219 million in fiscal
2017, $250 million in fiscal 2018 and the remaining balance of $1.7 billion in fiscal 2019. As of July 3, 2015, we
were in compliance with all covenants under our credit agreement. For additional information, see Part II, Item 8,
Note 3 in the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K.
Purchase Orders
In the normal course of business, we enter into purchase orders with suppliers for the purchase of components
used to manufacture our products. These purchase orders generally cover forecasted component supplies needed for
production during the next quarter, are recorded as a liability upon receipt of the components, and generally may be
changed or canceled at any time prior to shipment of the components. We also enter into purchase orders with suppli-
ers for capital equipment that are recorded as a liability upon receipt of the equipment. Our ability to change or cancel
a capital equipment purchase order without penalty depends on the nature of the equipment being ordered. In some
cases, we may be obligated to pay for certain costs related to changes to, or cancellation of, a purchase order, such as
costs incurred for raw materials or work in process of components or capital equipment.
We have entered into long-term purchase agreements with various component suppliers, containing minimum
quantity requirements. However, the dollar amount of the purchases may depend on the specific products ordered,
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