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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 28, 2002
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏ $1,703 $447 $ 1 $ Ì $2,151
Transfers between geographic areas ÏÏÏÏÏÏÏ 433 0 1,891 (2,324) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,136 $447 $1,892 $(2,324) $2,151
Operating income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (21) $ 1 $ 108 $ 10 $ 98
Long-lived assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 19 $ Ì $ 90 $ Ì $ 109
Year ended June 29, 2001
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏ $1,554 $397 $ 2 $ Ì $1,953
Transfers between geographic areas ÏÏÏÏÏÏÏ 385 5 1,769 (2,159) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,939 $402 $1,771 $(2,159) $1,953
Operating income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (84) $ 2 $ 111 $ 0 $ 29
Long-lived assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 45 $ Ì $ 78 $ (1) $ 122
Year ended June 30, 2000
Sales to unaÇliated customers ÏÏÏÏÏÏÏÏÏÏÏ $1,462 $485 $ 10 $ Ì $1,957
Transfers between geographic areas ÏÏÏÏÏÏÏ 479 3 1,858 (2,340) Ì
Revenues, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,941 $488 $1,868 $(2,340) $1,957
Operating income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (296) $ 4 $ (58) $ 58 $ (292)
Long-lived assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 100 $ 1 $ 65 $ (2) $ 164
Major Customers
During 2002, sales to Dell Computer accounted for 15% of the Company's revenues and sales to Hewlett-Packard
(including sales to Compaq Computer prior to its merger with Hewlett-Packard in 2002) accounted for 13% of the
Company's revenues. During 2001, sales to Dell Computer accounted for 16% of the Company's revenues and sales to
Compaq Computer accounted for 12% of the Company's revenues. During 2000 sales to Compaq Computer accounted
for 21% of the Company's revenues.
Note 10. Discontinued Operations
The Company acquired Connex, Inc. (""Connex''), a storage systems and solutions startup, in 1999. SANavigator,
Inc. (""SANavigator'') was formed as a subsidiary of Connex in 2001 and developed and marketed storage area network
management software.
During 2000, the Company formed Keen Personal Media, Inc. (""Keen PM''), to develop and sell interactive
personal video recorder and set-top box software, services and hardware for broadband television content management
and commerce.
In 2002, the Company discontinued Connex, SANavigator and Keen. The disposals have been accounted for as
discontinued operations and, accordingly, the consolidated Ñnancial statements for all periods presented have been
reclassiÑed. In August 2001, substantially all of the operating assets of Connex were sold to Quantum Corporation for
cash proceeds of $11.0 million, and in September 2001 substantially all of the operating assets of SANavigator were sold
to McData Corporation for cash proceeds of $29.8 million. These transactions generated a gain of $24.5 million, net of
costs incurred from the measurement date of July 1, 2001 through the end of the period to shutdown the businesses. At
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