Western Digital 2014 Annual Report Download - page 80

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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from
these other matters could differ materially from those projected.
Note 6. Business Segment, Geographic Information and Major Customers
Segment Information
The Company operates in one reportable operating segment, the hard drive business.
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 27, 2014 (in millions):
2014 2013 2012
Net revenue(1):
United States ............................................. $ 3,013 $ 3,403 $ 2,366
China ................................................... 3,499 4,145 2,826
Asia .................................................... 4,756 4,129 4,393
Europe, Middle East and Africa ............................... 3,117 3,056 2,325
Other ................................................... 745 618 568
Total ................................................... $15,130 $15,351 $12,478
Long-lived assets:
United States ............................................. $ 2,415 $ 1,517 $ 1,687
China ................................................... 279 348 428
Asia .................................................... 4,002 4,434 4,915
Europe, Middle East and Africa ............................... 83 139 35
Total ................................................... $ 6,779 $ 6,438 $ 7,065
(1) Net revenue is attributed to geographic regions based on the ship to location of the customer.
Major Customers
For 2014 and 2012, sales to Hewlett Packard Company accounted for 11% of the Company’s net revenue. For
2013, no single customer accounted for 10%, or more, of the Company’s net revenue. For 2014, 2013, and 2012, sales
to the Company’s top ten customers accounted for 44%, 44% and 50% 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. The Plan was amended effective Jan-
uary 1, 2013, to provide for a year-end true-up matching contribution such that participants who save at least 5% of
their eligible compensation for the year receive a minimum annual matching contribution equal to 2.5% of eligible
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