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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 10. Fair Value Measurements
Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified
and disclosed in one of the following three levels:
Level 1. Quoted prices in active markets for identical assets or liabilities.
Level 2. Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can
be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3. Inputs that are unobservable for the asset or liability and that are significant to the fair value of the
assets or liabilities.
The following table presents information about the Company’s financial assets and liabilities that are measured at
fair value on a recurring basis as of July 3, 2015, and indicates the fair value hierarchy of the valuation techniques uti-
lized to determine such value (in millions):
Fair Value Measurements at
Reporting Date Using
Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents
Money market funds .................................... $135 $ — $— $135
Total cash equivalents ................................ 135 — — 135
Short-term investments:
U.S. Treasury securities ................................. — 50 — 50
U.S. Government agency securities ......................... — 4 — 4
Commercial paper ..................................... — 109 — 109
Certificates of deposit ................................... — 99 — 99
Total short-term investments ........................... — 262 — 262
Long-term investments:
U.S. Treasury securities ................................. — 237 — 237
U.S. Government agency securities ......................... — 91 — 91
Total long-term investments ........................... — 328 — 328
Foreign exchange contracts ................................. — — — —
Total assets at fair value ............................... $135 $590 $— $725
Liabilities:
Foreign exchange contracts ................................. $ — $ 31 $— $ 31
Total liabilities at fair value ............................ $ — $ 31 $— $ 31
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