Western Digital 2005 Annual Report Download - page 43

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As of July 1, 2005, the Company had outstanding the following purchased foreign currency forward exchange
contracts (in millions, except weighted average contract rate):
Contract Weighted Average Unrealized
Amount Contract Rate* Gain (Loss)
Foreign currency forward contracts:
Thai Baht ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $147.1 40.07 (0.3)
Euro ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2.7 0.77 Ì
British Pound Sterling ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.6 0.54 Ì
$151.4
* Expressed in units of foreign currency per dollar.
In 2005, 2004 and 2003, total realized transaction and forward exchange contract currency gains and losses were not
material to the consolidated financial statements.
Disclosure About Other Market Risks
Variable Interest Rate Risk
At the option of the Company, borrowings under the Senior Credit Facility would bear interest at either LIBOR
(with option periods of one to three months) or a base rate, plus a margin. If LIBOR or the base rate increases, the
Company's interest payments would also increase. At July 1, 2005, the Company had a $38 million term loan
outstanding under the Senior Credit Facility. A one percent increase in the variable rate of interest on the Senior Credit
Facility would increase interest expense by approximately $0.4 million annually.
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