Western Digital 2012 Annual Report Download - page 75

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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Geographic Information
The Company’s operations outside the United States include manufacturing facilities in China, Japan, Malaysia,
the Philippines, Singapore, and Thailand as well as sales offices throughout the Americas, Asia Pacific, Europe and the
Middle East. The following table summarizes the Company’s operations by geographic area for the three years ended
June 29, 2012 (in millions):
2012 2011 2010
Net revenue(1):
United States ............................................. $ 2,366 $1,589 $1,889
Asia .................................................... 7,219 5,434 5,239
Europe, Middle East and Africa ............................... 2,325 2,196 2,260
Other ................................................... 568 307 462
Total ................................................... $12,478 $9,526 $9,850
Long-lived assets:
United States ............................................. $ 1,687 $1,285 $1,173
Asia .................................................... 5,343 1,345 1,379
Europe, Middle East and Africa ............................... 35 1 56
Total ................................................... $ 7,065 $2,631 $2,608
(1) Net revenue is attributed to geographic regions based on the ship to location of the customer.
Major Customers
For 2012, sales to Hewlett Packard Company accounted for 11% of the Company’s net revenue. For 2011 and
2010, no single customer accounted for 10%, or more, of the Company’s net revenue. For 2012, 2011 and 2010, sales
to the Company’s top ten customers accounted for 50%, 49% and 53% of the Company’s net 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 sub-
stantially all domestic employees, subject to certain eligibility requirements. The Company makes a basic matching
contribution on behalf of each participating eligible employee equal to fifty percent (50%) of the eligible participant’s
pre-tax contributions for the contribution cycle not to exceed 5% of the eligible participant’s compensation; provided,
however, that each eligible participant shall receive a minimum annual basic matching contribution equal to fifty
percent (50%) of the first $4,000 of pre-tax contributions for any calendar year. Company contributions vest over a
5-year period of employment. For 2012, 2011 and 2010, the Company made Plan contributions of $12 million,
$9 million, and $9 million, respectively.
Note 8. Shareholders’ Equity
Stock Incentive Plans
In connection with the Acquisition, the Company assumed all of the unvested stock options, stock appreciation
rights (“SARs”), and restricted stock unit awards (“RSUs”) outstanding under HGST’s stock plans as of the Closing
Date. The assumed stock options, SARs and RSUs were converted into equivalent stock options, SARs and RSUs with
respect to shares of the Company’s common stock using an equity award exchange ratio pursuant to the Stock Pur-
chase Agreement, dated March 7, 2011 (the “SPA”). As of June 29, 2012, options to purchase 3.5 million shares of
the Company’s common stock, 0.2 million RSUs, and 1.7 million SARs were outstanding under these assumed
awards. No new awards may be granted under the HGST stock plans.
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