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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Pensions and Other Postretirement Benefit Plans
The Company has defined benefit pension plans and other postretirement plans covering certain employees in
various countries. The benefits are based on the employees’ years of service and compensation. The plans are funded in
conformity with the funding requirements of applicable government authorities. The Company amortizes unrecog-
nized actuarial gains and losses and prior service costs on a straight-line basis over the remaining estimated average
service life of the participants. The measurement date for the plans is the Company’s fiscal year-end. The Company
recognizes the funded status of its defined benefit pension and postretirement plans in the consolidated balance sheets,
with changes in the funded status recognized through accumulated other comprehensive income (loss) in the year in
which such changes occur. See Note 13 for additional disclosures related to the Company’s pension and other post-
retirement benefit plans.
Use of Estimates
Company management has made estimates and assumptions relating to the reporting of certain assets and
liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies
that are consistent throughout the periods presented. However, actual results could differ materially from these esti-
mates.
Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2011-05 “Presentation of Comprehensive Income” (“ASU 2011-05”). The new standard requires that all non-owner
changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in
two separate but continuous statements. If presented in two separate statements, the first statement should present
total net income and its components followed immediately by a second statement of total other comprehensive
income, its components and the total comprehensive income. In December 2011, the FASB deferred certain changes
in ASU 2011-05 that relate to the presentation of reclassification adjustments. The Company adopted this
pronouncement in its first quarter of fiscal 2013. The adoption of ASU 2011-05 resulted in an additional financial
statement which increases the prominence of items reported in other comprehensive income but did not have an
impact on the Company’s financial position or results of operations.
In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment” (“ASU 2011-08”). The new standard permits an entity to first
assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is
impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance
with Accounting Standards Codification 350-30, “Intangibles-Goodwill and Other-General Intangibles Other than
Goodwill.” The Company adopted this pronouncement in its first quarter of fiscal 2013. The adoption of ASU 2011-
08 did not have a material impact to the Company’s consolidated financial statements in the first quarter of fiscal
2013.
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Presentation of Items
Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). The new standard requires an
entity to provide information about the amounts reclassified out of accumulated other comprehensive income by
component for those items reclassified to net income in their entirety in the same reporting period. For other amounts
that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other
disclosures required under U.S. GAAP that provide additional detail about those amounts. The new standard is effec-
tive for fiscal years beginning after December 15, 2012. In the Company’s circumstances, this is the first quarter of
fiscal 2014. Since ASU 2013-02 relates only to the presentation and disclosure of information, it is not expected to
have a material effect on the Company’s consolidated financial statements.
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