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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Thailand) Company Limited (“TSDT”), a wholly-owned subsidiary of Toshiba which manufactured hard drives prior
to the recent Thailand flooding. The net impact of these two transactions was immaterial to the Company’s con-
solidated financial statements.
Maintenance of Competitive Requirement
In connection with the regulatory approval process of the Acquisition, the Company agreed to certain conditions
required by the Ministry of Commerce of the People’s Republic of China (“MOFCOM”), including adopting measures
to maintain HGST as an independent competitor until MOFCOM agrees otherwise (with the minimum period being
two years). The Company is working closely with MOFCOM to finalize an operations plan that is expected to outline
in more detail the conditions of the competitive requirement.
Pro Forma Financial Information
The unaudited financial information in the table below summarizes the combined results of operations of the
Company, HGST and TSDT as well as the related divestiture of assets to Toshiba, on a pro forma basis, as though the
combinations and divestiture had occurred as of the beginning of fiscal 2011. The pro forma financial information
presented includes the effects of adjustments related to the fair value of acquired inventory and warranty obligation,
acquired or divested fixed assets, amortization charges from acquired intangible assets, depreciation charges from
acquired or divested fixed assets and the elimination of certain activities excluded from the transactions. The pro
forma financial information as presented below is for informational purposes only and is not necessarily indicative of
the results of operations that would have been achieved if the acquisitions, divestiture and any borrowings undertaken
to finance the acquisitions had taken place at the beginning of the earliest period presented, nor does it intend to be a
projection of future results.
Year Ended
June 29,
Year Ended
July 1,
(in millions, except per share amounts) 2012 2011
Revenue ....................................................... $16,845 $15,398
Net income ..................................................... $ 2,019 $ 877
Basic income per common share ..................................... $ 7.80 $ 3.43
Diluted income per common share ................................... $ 7.65 $ 3.37
Magnetic Media Operations
On June 30, 2010, the Company acquired the facilities, equipment, intellectual property and working capital of
the magnetic media sputtering operations of Hoya. The cost of the acquisition was $233 million and was funded with
available cash. The Company identified and recorded the assets, including specifically identifiable intangible assets,
and liabilities assumed from Hoya at their estimated fair values as of the date of acquisition, and allocated the remain-
ing value to goodwill. The allocation was as follows (in millions):
June 30,
2010
Tangible assets acquired and liabilities assumed:
Inventories ................................................................. $ 35
Property and equipment ...................................................... 185
Accounts payables and other liabilities ............................................ (10)
Intangible assets .............................................................. 11
Goodwill .................................................................... 12
Total ....................................................................... $233
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