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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
December 15, 2016, which for the Company is the first quarter of fiscal 2018. The Company has not yet selected a
transition method and is currently evaluating the impact ASU 2014-09 will have on its consolidated financial state-
ments and related disclosures.
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Dis-
posals of Components of an Entity” (“ASU 2014-08”), which amends the criteria for determining which disposals can
be presented as discontinued operations and enhances related disclosure requirements. Under the new guidance, a
disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued
operations if the disposal represents a strategic shift that has or may have a major effect on an entity’s operations and
financial results. The new standard is effective for fiscal years beginning after December 15, 2014, which for the
Company is the first quarter of fiscal 2016. The Company does not expect the adoption of ASU 2014-08 to have a
material impact on its consolidated financial statements.
Note 2. Supplemental Financial Statement Data
June 27,
2014
June 28,
2013
(In millions)
Inventories:
Raw materials and component parts ............................................ $ 168 $ 167
Work-in-process ........................................................... 493 575
Finished goods ............................................................ 565 446
Total inventories ........................................................ $1,226 $ 1,188
Property, plant and equipment:
Land and buildings ......................................................... $1,364 $ 1,231
Machinery and equipment ................................................... 6,109 5,738
Furniture and fixtures ....................................................... 54 39
Leasehold improvements ..................................................... 254 233
Construction-in-process ..................................................... 342 375
Total property, plant and equipment ........................................... 8,123 7,616
Accumulated depreciation ................................................... (4,830) (3,916)
Property, plant and equipment, net .......................................... $3,293 $ 3,700
Note 3. Debt
Long-term debt consisted of the following as of June 27, 2014 and June 28, 2013 (in millions):
2014 2013
Term loan ................................... $2,438 $1,955
Less amounts due in one year .................... (125) (230)
Long-term debt ........................... $2,313 $1,725
On March 8, 2012 (the “HGST Closing Date”), the Company, in its capacity as the parent entity and guarantor,
Western Digital Technologies, Inc. (“WDT”), a wholly owned subsidiary of the Company, and Western Digital Ire-
land, Ltd. (“WDI”), an indirect wholly owned subsidiary of the Company, entered into a five-year credit agreement
(the “Prior Credit Facility”) with Bank of America, N.A., as administrative agent, swing line lender and letter of
credit issuer, and certain other participating lenders. The Prior Credit Facility provided for $2.8 billion of unsecured
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