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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
manager or administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund,
minus liabilities and divided by the number of shares or units outstanding. These assets are classified as either Level 1
or Level 2, depending on availability of quoted market prices for identical or similar assets.
If available, fixed income securities are valued using the close price reported on the major market on which the
individual securities are traded and are classified as Level 1. The fair value of other fixed income securities is typically
estimated using pricing models and quoted prices of securities with similar characteristics, and is generally classified
as Level 2.
Cash includes money market accounts that are valued at their cost plus interest on a daily basis, which approx-
imates fair value. Short-term investments represent securities with original maturities of one year or less. These assets
are classified as either Level 1 or Level 2.
Cash Flows
Contributions
The Company’s expected employer contributions for 2016 are $9 million for its Japanese defined benefit pension
plans.
Estimated Future Benefits Payments
Annual benefit payments from the Japanese defined benefit pension plans are estimated to range from $5 million
to $9 million annually over the next five years.
Note 15. Acquisitions
The consolidated financial statements include the results of operations of acquired companies commencing after
their respective acquisition dates. Disclosed below are those acquisitions which have a significant impact to the
Company’s consolidated financial statements.
Acquisition of Amplidata
On March 9, 2015, the Company acquired Amplidata NV (“Amplidata”), a developer of object storage software
for public and private cloud data centers. As a result of the acquisition, Amplidata was fully integrated into the
Company’s HGST subsidiary and became a wholly owned indirect subsidiary of the Company. The purchase price of
the acquisition was approximately $267 million, consisting of $245 million funded with available cash at the time of
the acquisition, $19 million related to the fair value of a previously-held cost method investment and $3 million
related to the fair value of stock options assumed. The acquisition is expected to further HGST’s strategy to expand
into higher value data storage platforms and systems that address the growth in storage requirements in cloud data
centers.
The Company identified and recorded the assets acquired and liabilities assumed at their estimated fair values at
the date of acquisition, and allocated the remaining value of $215 million to goodwill. The values assigned to the
acquired assets and liabilities are based on preliminary estimates of fair value available as of the date of this Annual
Report on Form 10-K, and may be adjusted during the measurement period of up to 12 months from the date of the
acquisition as further information becomes available with any changes in the fair values potentially resulting in
adjustments to goodwill. The individual tangible and intangible assets acquired as well as the liabilities assumed in
the acquisition were immaterial to the Company’s consolidated financial statements. In addition, pro forma financial
information has not been presented as the acquisition did not have a material impact on the Company’s consolidated
financial statements for 2015.
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