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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying
the Presentation of Debt Issuance Costs” (“ASU 2015-03”). The new standard requires debt issuance costs related to a
recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt
liability, consistent with debt discounts. The new standard is effective for fiscal years and interim periods within those
fiscal years, beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. The adoption
of ASU 2015-03 will not have a material effect on the Company’s consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”),
which amends the guidance in former Accounting Standards Codification Topic 605, “Revenue Recognition,” to pro-
vide a single, comprehensive revenue recognition model for all contracts with customers. The new standard requires an
entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in
amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services.
The new standard also requires entities to enhance disclosures about the nature, amount, timing and uncertainty of
revenue and cash flows arising from contracts with customers. In July 2015, the FASB approved a one-year deferral of
the effective date of this ASU. The new standard allows for either a full retrospective or a modified retrospective tran-
sition method and is effective for fiscal years beginning after December 15, 2017, which for the Company is the first
quarter of fiscal 2019. The Company has not yet selected a transition method and is currently evaluating the impact
ASU 2014-09 will have on its consolidated financial statements and related disclosures.
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax
Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new
standard requires the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than
as liabilities in the consolidated balance sheets when a NOL carryforward, a similar tax loss, or a tax credit carryfor-
ward exists. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after
December 15, 2013, which for the Company was the first quarter of fiscal 2015. The Company adopted this pro-
nouncement in the first quarter of fiscal 2015, and it did not have a material effect on the Company’s consolidated
financial statements.
Note 2. Supplemental Financial Statement Data
July 3,
2015
June 27,
2014
(In millions)
Inventories:
Raw materials and component parts ............................................ $ 168 $ 168
Work-in-process ........................................................... 500 493
Finished goods ............................................................ 700 565
Total inventories ........................................................ $1,368 $ 1,226
Property, plant and equipment:
Land and buildings ......................................................... $1,441 $ 1,364
Machinery and equipment ................................................... 6,520 6,109
Furniture and fixtures ....................................................... 71 54
Leasehold improvements ..................................................... 276 254
Construction-in-process ..................................................... 296 342
Total property, plant and equipment ........................................... 8,604 8,123
Accumulated depreciation ................................................... (5,639) (4,830)
Property, plant and equipment, net .......................................... $2,965 $ 3,293
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