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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
United
States Europe Asia Eliminations Total
(in millions)
Year ended June 27, 1998
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,630 $ 886 $ 26 $ Ì $3,542
Transfers between geographic areas ÏÏÏÏÏÏÏÏÏÏ 998 166 3,324 (4,488) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,628 $1,052 $3,350 $(4,488) $3,542
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (271) $ 7 $ 66 $ (20) $ (218)
IdentiÑable assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 907 $ 116 $ 455 $ (35) $1,443
Year ended July 3, 1999
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,001 $ 751 $ 15 $ Ì $2,767
Transfers between geographic areas ÏÏÏÏÏÏÏÏÏÏ 746 1 2,607 (3,354) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,747 $ 752 $2,622 $(3,354) $2,767
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (295) $ 7 $ (114) $ 8 $ (394)
IdentiÑable assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 550 $ 97 $ 390 $ (15) $1,022
Year ended June 30, 2000
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,463 $ 485 $ 10 $ Ì $1,958
Transfers between geographic areas ÏÏÏÏÏÏÏÏÏÏ 479 3 1,858 (2,340) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,942 $ 488 $1,868 $(2,340) $1,958
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (317) $ 104 $ (58) $ (42) $ (313)
IdentiÑable assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 477 $ 154 $ 16 $ (31) $ 616
Major Customer
During 1998, 1999, and 2000 sales to Compaq accounted for 14%, 21% and 21% of the Company's
revenues, respectively.
Note 8. Restructurings, Acquisitions and Dispositions
1999 Restructuring Actions
In January 1999, the Company initiated a restructuring program which resulted in the combination of its
personal storage and enterprise storage divisions into a single hard drive operating unit. Accordingly, design,
manufacturing, materials, business and product marketing resources to address both the desktop and
enterprise markets were combined. In connection with the combination, the Company's Tuas, Singapore
facility was closed and production of enterprise drives was moved to the Company's facility in Chai-Chee,
Singapore. This restructuring program, which was substantially completed by the end of the third quarter of
1999, resulted in a reduction of worldwide employee headcount of 934 employees, approximately 250 of which
were direct and indirect labor and the remainder were management, professional and administrative personnel.
A $41.0 million restructuring charge was recorded consisting of $19.6 million for the write-down of the Tuas
building and equipment to its estimated fair value of $7.8 million, based on a valuation done by an
independent party, $14.3 million for severance and other incremental costs related to the closure of the facility,
$5.7 million for the write-oÅ of duplicate warranty repair and engineering supplies and $1.4 million for
renovation related costs of the Tuas facility. Of the severance and other related charges, approximately $11.0
million was paid in 1999, and the remainder was paid in 2000. The write-oÅ of duplicate warranty repair and
engineering supplies, including base replacement stock for warranty repairs and engineering materials, was
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