Western Digital 2010 Annual Report Download - page 40

Although we believe our tax positions are reasonable, the outcomes and timing of these audits are subject to significant
uncertainty and could result in our having to pay amounts to the applicable tax authority in order to resolve examination
of our tax positions, which could result in an increase or decrease of our current estimate of unrecognized tax benefits and
may negatively impact our financial position, results of operations, net income or cash flows.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
Our corporate headquarters are located in Lake Forest, California. The Lake Forest facilities consist of approximately
270,000 square feet of leased space and house our management, research and development, administrative and sales staff.
We lease one facility in Irvine, California, consisting of approximately 60,000 square feet, which we use to house research
and development, administrative and customer support staff. In addition, we lease one facility in Aliso Viejo, California,
consisting of approximately 34,000 square feet, which we assumed in connection with our acquisition of SiliconSystems,
Inc. and which we use to house research and development, administrative and sales staff. We have entered into a new lease
agreement whereby we will relocate our Lake Forest corporate headquarters and consolidate our existing Irvine and Aliso
Viejo, California functions to approximately 365,000 square feet of leased space in Irvine, California. The relocation and
consolidation of our corporate headquarters is expected to occur in various phases beginning in the first quarter of fiscal
2011 and continuing through the second quarter of fiscal 2012.
In Fremont, California, we own facilities consisting of approximately 286,000 square feet, which we use for head
wafer fabrication, research and development and warehousing. In San Jose, California, we lease facilities consisting of
approximately 401,000 square feet, which we use for research and development. In Phoenix, Arizona, we own wafer
fabrication facilities consisting of approximately 545,000 square feet, which we presently lease to a third party but plan to
occupy in late fiscal 2011. In Longmont, Colorado, we lease one facility consisting of approximately 43,000 square feet,
which we use for research and development. We also lease office space in various other locations throughout the world
primarily for research and development and sales and technical support.
We own manufacturing facilities in Kuala Lumpur, Malaysia, consisting of approximately 1,054,000 square feet
(which includes a facility of approximately 479,000 square feet acquired during fiscal 2010), which we use for assembly
of hard drives, printed circuit boards and HSAs. We also own manufacturing facilities in Penang and Johor, Malaysia,
consisting of approximately 800,000 and 243,000 square feet, respectively, and we own and lease manufacturing facilities
in Tuas, Singapore, consisting of approximately 311,000 square feet, all of which we use for our magnetic media
operations. We also own manufacturing facilities in Navanakorn, Thailand, consisting of approximately 226,000 square
feet, which we use for assembly of hard drives and HSAs, and facilities in Bang Pa-In, Thailand, consisting of
approximately 901,000 square feet, which we use for slider fabrication, the assembly of hard drives, HGAs and HSAs,
and research and development.
We believe our present facilities are adequate for our current needs, although the process of upgrading our facilities
to meet technological and market requirements is expected to continue. New manufacturing facilities, in general, can be
developed and become operational within approximately nine to eighteen months should we require such additional
facilities.
Item 3. Legal Proceedings
For a description of our legal proceedings, see Part II, Item 8, Note 5 in our Notes to Consolidated Financial
Statements, which is incorporated by reference in response to this item.
Item 4. (Removed and Reserved)
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