Western Digital 2008 Annual Report Download - page 65

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Note 2. Supplemental Financial Statement Data
June 27,
2008
June 29,
2007
Years Ended
(in millions)
Inventories:
Raw materials and component parts ........................................ $ 144 $ 12
Work-in-process ...................................................... 145 94
Finished goods ....................................................... 167 153
$ 456 $ 259
Property and Equipment:
Land and buildings .................................................... $ 478 $ 189
Machinery and equipment ............................................... 2,166 1,203
Machinery and equipment recorded under capital leases .......................... 58 60
Furniture and fixtures .................................................. 10 12
Leasehold improvements ................................................ 102 53
2,814 1,517
Accumulated depreciation and amortization ................................... (1,146) (776)
Net property and equipment ........................................... $1,668 $ 741
Amortization expense for assets under capital lease was $12 million, $14 million and $5 million for 2008, 2007 and
2006, respectively. Accumulated amortization on machinery and equipment recorded under capital leases was $30 million
and $20 million as of June 27, 2008 and June 29, 2007, respectively.
Note 3. Long-term Debt
Long-term debt consisted of the following as of June 27, 2008 and June 29, 2007 (in millions):
2008 2007
Term loan ................................... $500 $ —
Capital lease obligations (Note 4) .................. 9 22
Total debt ................................... 509 22
Less amounts due in one year ..................... (27) (12)
Long-term debt ............................. $482 $ 10
Credit Facility
On February 11, 2008, Western Digital Technologies, Inc. (“WDTI”), a wholly owned subsidiary of the Company,
entered into a five-year Credit Agreement (the “Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative
agent, Citigroup Global Markets Inc., as syndication agent, JP Morgan Securities Inc. and Citigroup Global Markets
Inc., as arrangers, and Bank of America, N.A., HSBC Bank USA, National Association and The Royal Bank of Scotland
plc, as co-documentation agents, and lenders party thereto.
The Credit Facility provides for a $750 million unsecured loan consisting of a $500 million term loan facility and a
$250 million revolving credit facility. The revolving credit facility includes borrowing capacity available for letters of
credit and for short-term borrowings referred to as swingline. In addition, WDTI may elect to expand the Credit Facility
by up to $250 million if existing or new lenders provide additional term or revolving commitments.
59
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)