Western Digital 2000 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2000 Western Digital annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
For 1998, 1999 and 2000 the Company made contributions to the 401(k) plan of $2.9, $3.3 and $2.3 million,
respectively.
Note 11. Subsequent Events
Investments
During the period July 1, 2000 through September 15, 2000, the Company sold 4.9 million shares of its
Komag common stock holdings for $15.0 million.
Line of Credit
On September 20, 2000, the Company's hard drive solutions division (""HDS'') entered into a new three-
year Senior Credit Facility replacing a previous facility that had matured on March 31, 2000. The new Senior
Credit Facility provides up to $125 million in revolving credit (subject to a borrowing base calculation), is
secured by HDS's accounts receivable, inventory, 65% of its stock in its foreign subsidiaries and other assets.
At the option of HDS, borrowings bear interest at either LIBOR (with option periods of one to three months)
or a base rate, plus a margin determined by the borrowing base. The new Senior Credit Facility requires HDS
to maintain certain amounts of tangible net worth, prohibits the payment of cash dividends on common stock
and contains a number of other covenants.
Convertible Debentures
During the period July 1, 2000 through September 26, 2000, the Company issued 6.3 million shares of
common stock in exchange for Debentures with a book value of $49.8 million and an aggregate principal
amount at maturity of $122.7 million. As of September 26, 2000, the aggregate principal amount at maturity
of the remaining Debentures was $438.9 million.
Equity Facility
During the period July 1, 2000 through September 5, 2000, the Company issued 6.1 million shares of
common stock for net cash proceeds of $27.6 million under its existing equity facility.
58