Western Digital 2013 Annual Report Download - page 73

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 2. Supplemental Financial Statement Data
June 28,
2013
June 29,
2012
(In millions)
Inventories:
Raw materials and component parts ............................................ $ 167 $ 245
Work-in-process ........................................................... 575 552
Finished goods ............................................................ 446 413
Total inventories ........................................................ $1,188 $ 1,210
Property, plant and equipment:
Land and buildings ......................................................... $1,231 $ 1,222
Machinery and equipment ................................................... 5,738 5,211
Furniture and fixtures ....................................................... 39 15
Leasehold improvements ..................................................... 233 128
Construction-in-process ..................................................... 375 597
Total property, plant and equipment ........................................... 7,616 7,173
Accumulated depreciation ................................................... (3,916) (3,106)
Property, plant and equipment, net .......................................... $3,700 $ 4,067
Note 3. Debt
Long-term debt consisted of the following as of June 28, 2013 and June 29, 2012 (in millions):
2013 2012
Term loan ................................... $1,955 $2,185
Less amounts due in one year .................... (230) (230)
Long-term debt ........................... $1,725 $1,955
On the Closing Date, the Company, in its capacity as the parent entity and guarantor, Western Digital Tech-
nologies, Inc. (“WDT”), a wholly owned subsidiary of the Company, and Western Digital Ireland, Ltd. (“WDI”), an
indirect wholly owned subsidiary of the Company, entered into a five-year credit agreement (the “Credit Facility”)
with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, and certain other
participating lenders (collectively, the “Lenders”). The Credit Facility provided for $2.8 billion of unsecured loan
facilities consisting of a $2.3 billion term loan facility and a $500 million revolving credit facility. The only borrower
under the term loan facility is WDI and the revolving credit facility is available to both WDI and WDT (WDI and
WDT are referred to as “the Borrowers”). The Borrowers may elect to expand the Credit Facility by up to an addi-
tional $500 million if existing or new lenders provide additional term or revolving commitments. The obligations of
the Borrowers under the Credit Facility are guaranteed by the Company and the Company’s material domestic sub-
sidiaries, and the obligations of WDI under the Credit Facility are also guaranteed by WDT.
The term loans and the revolving credit loans may be prepaid in whole or in part at any time without premium or
penalty, subject to certain conditions. As of June 28, 2013, the term loan facility had a variable interest rate of 2.2% and
a remaining, outstanding balance of $2.0 billion. The Company is required to make principal payments on the term loan
facility totaling $230 million a year for fiscal 2014 through fiscal 2016, and the remaining $1.3 billion balance (subject
to adjustment to reflect prepayments or an increase to its term loan facility) due and payable in full in fiscal 2017 on
March 8, 2017. As of June 28, 2013, $500 million was available for future borrowings on the revolving credit facility.
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