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December 15, 2008, which for the Company was the first quarter of fiscal 2010. The Company’s adoption of
ASC 350-30-65-1 in the first quarter of fiscal 2010 had no impact on its consolidated financial statements.
In September 2009, the FASB issued Accounting Standards Update (“ASU”) 2009-13, “Multiple-Deliverable
Revenue Arrangements” (“ASU 2009-13”), and ASU 2009-14, “Certain Revenue Arrangements That Include Software
Elements” (“ASU 2009-14”). ASU 2009-13 amends the revenue guidance under Subtopic 605-25, “Multiple Element
Arrangements,” and addresses how to determine whether an arrangement involving multiple deliverables contains more
than one unit of accounting and how arrangement consideration shall be measured and allocated to the separate units of
accounting in the arrangement. ASU 2009-14 excludes tangible products containing software components and non-
software components that function together to deliver the product’s essential functionality from the scope of Subtopic
985-605, “Revenue Recognition.” ASU 2009-13 and ASU 2009-14 are effective for fiscal periods beginning on or after
June 15, 2010, which for the Company is the first quarter of fiscal 2011. The Company is currently evaluating the impact
that ASU 2009-13 and ASU 2009-14 will have on its consolidated financial statements.
Note 2. Supplemental Financial Statement Data
July 2,
2010
July 3,
2009
Years Ended
(in millions)
Inventories:
Raw materials and component parts ........................................ $ 159 $ 97
Work-in-process ...................................................... 255 154
Finished goods ....................................................... 146 125
Total inventories .................................................. $ 560 $ 376
Property and Equipment:
Land and buildings ................................................... $ 675 $ 522
Machinery and equipment ............................................... 3,470 2,533
Machinery and equipment recorded under capital leases .......................... — 58
Furniture and fixtures .................................................. 9 9
Leasehold improvements ................................................ 69 53
Total property and equipment ............................................ 4,223 3,175
Accumulated depreciation and amortization .................................. (2,064) (1,591)
Property and equipment, net ........................................... $2,159 $ 1,584
Note 3. Debt
Long-term debt consisted of the following as of July 2, 2010 and July 3, 2009 (in millions):
2010 2009
Term loan . . . ............................... $400 $481
Capital lease obligations ........................ — 1
Total debt . . . ............................... 400 482
Less amounts due in one year .................... (106) (82)
Long-term debt ............................ $294 $400
62
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)