Western Digital 2010 Annual Report Download - page 80

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The following table presents information about the Company’s financial assets that are measured at fair value on a
recurring basis as of July 2, 2010, and indicates the fair value hierarchy of the valuation techniques utilized to determine
such value (in millions):
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Fair Value Measurements at
Reporting Date Using
Cash equivalents
Money market funds .................... $458 $ — $— $ 458
U.S. Treasury securities .................. — 385 — 385
U.S. Government agency securities .......... — 370 — 370
Total cash equivalents ................. 458 755 — 1,213
Auction-rate securities .................... — — 15 15
Foreign exchange contracts ................. — 17 — 17
Total assets at fair value ................ $458 $772 $15 $1,245
The following table presents information about the Company’s financial assets that are measured at fair value on a
recurring basis as of July 3, 2009, and indicates the fair value hierarchy of the valuation techniques utilized to determine
such value (in millions):
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Fair Value Measurements at
Reporting Date Using
Cash equivalents
Money market funds ..................... $468 $ — $— $468
U.S. Treasury securities ................... — 197 — 197
U.S. Government agency securities ........... — 79 1 80
Total cash equivalents................... 468 276 1 745
Auction-rate securities ...................... — — 18 18
Foreign exchange contracts ................... — 5 — 5
Total assets at fair value . . . .............. $468 $281 $19 $768
Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury securities and are
recorded within cash and cash equivalents in the consolidated balance sheets. Money market funds are valued based on
quoted market prices.
U.S. Treasury Securities. The Company’s U.S. Treasury securities are investments in Treasury bills with original
maturities of three months or less and are recorded within cash and cash equivalents in the consolidated balance sheets.
U.S. Treasury securities are valued using a market approach which is based on observable inputs including market
interest rates from multiple pricing sources.
74
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)