Western Digital 2007 Annual Report Download - page 66

International Operations
The Company’s operations outside the United States include manufacturing facilities in Malaysia and Thailand as
well as sales offices throughout Canada, Europe, Asia, Japan, India and the Middle East. The following table summarizes
the Company’s operations by geographic area for the three years ended June 29, 2007 (in millions):
2007 2006 2005
Revenue from external customers(1):
United States .......................................... $1,780 $1,386 $1,268
Asia ................................................ 1,840 1,550 1,197
Europe, the Middle East and Africa .......................... 1,591 1,225 1,069
Other ............................................... 257 180 105
Total ................................................ $5,468 $4,341 $3,639
Long-lived assets:
United States .......................................... $ 409 $ 261 $ 163
Asia ................................................ 462 320 244
Europe, the Middle East and Africa .......................... 1 — —
Total ................................................ $ 872 $ 581 $ 407
(1) Revenue is attributed to geographic regions based on location of customer.
Major Customer
During 2007, 2006 and 2005, sales to Dell, Inc. accounted for 10%, 12% and 16% of the Company’s revenue,
respectively.
Note 7. Western Digital Corporation 401(k) Plan
The Company has adopted the Western Digital Corporation 401(k) Plan (the “Plan”). The Plan covers substantially
all domestic employees, subject to certain eligibility requirements. The Company makes annual contributions to the
Plan, subject to approval from the Board of Directors. For 2007, 2006 and 2005 the Company made Plan contributions
of $4 million, $4 million and $3 million, respectively.
Note 8. Shareholders’ Equity
Stock Incentive Plans
The Company has four stock-based incentive plans (collectively referred to as the “Stock Plans”): The 2004 amended
and restated Performance Incentive Plan, the Employee Stock Option Plan, the Broad-Based Stock Incentive Plan and the
Stock Option Plan for Non-Employee Directors. Subsequent to the expiration of the Employee Stock Option Plan on
November 10, 2004 and approval of the 2004 Performance Incentive Plan by the Company’s shareholders on
November 18, 2004, no new awards are permitted under the Employee Stock Option Plan, the Broad-Based Stock
Incentive Plan or the Stock Option Plan for Non-Employee Directors (collectively referred to as the “Prior Stock Plans”).
As of June 29, 2007, options to purchase 7.2 million shares of the Company’s common stock remain outstanding under
the Prior Stock Plans, of which 6.2 million shares were exercisable and 0.1 million shares of restricted stock remain
unvested. Options granted under the Prior Stock Plans vested over periods from one to four years. Options granted under
the Prior Stock Plans expire either five or ten years from the date of grant.
In November 2004, the Company’s shareholders approved the 2004 Performance Incentive Plan. Subsequently, in
November 2005, the Company’s shareholders approved an authorization for an additional 13 million shares. The types of
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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)