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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 12. Foreign Exchange Contracts
As of June 27, 2014, the net amount of unrealized losses with respect to the Company’s foreign exchange con-
tracts that is expected to be reclassified into earnings within the next 12 months was $5 million. In addition, as of
June 27, 2014, the Company did not have any foreign exchange contracts with credit-risk-related contingent features.
The Company opened $4.5 billion and $4.9 billion, and closed $4.9 billion and $3.2 billion, in foreign exchange
contracts for the years ended June 27, 2014 and June 28, 2013, respectively. The fair value and balance sheet location
of such contracts were as follows (in millions):
Asset Derivatives Liability Derivatives
2014 2013 2014 2013
Derivatives Designated as
Hedging Instruments
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Foreign exchange contracts ...... Other current assets $7 Other current assets $— Accrued expenses $2 Accrued expenses $57
The following table presents the gross amounts of the Company’s derivative instruments, amounts offset due to
master netting arrangements with the Company’s various counterparties, and the net amounts recognized in the con-
solidated balance sheet as of June 27, 2014 (in millions):
Gross Amounts Not
Offset in the Balance
Sheet
Derivatives Designated as
Hedging Instruments
Gross Amounts
of Recognized
Assets (Liabilities)
Gross Amounts
Offset in the
Balance Sheet
Net Amounts
of Assets
(Liabilities)
Presented in
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Received or
Pledged
Net
Amount
Foreign exchange contracts
Financial assets ................... $9 $(2) $7 $— $— $7
Financial liabilities ................ (4) 2 $(2) — — (2)
Total derivative instruments ....... $5 $— $5 $— $— $5
The following table presents the gross amounts of the Company’s derivative instruments, amounts offset due to
master netting arrangements with the Company’s various counterparties, and the net amounts recognized in the con-
solidated balance sheet as of June 28, 2013 (in millions):
Gross Amounts Not
Offset in the Balance
Sheet
Derivatives Designated as
Hedging Instruments
Gross Amounts
of Recognized
Assets (Liabilities)
Gross Amounts
Offset in the
Balance Sheet
Net Amounts
of Assets
(Liabilities)
Presented in
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Received or
Pledged
Net
Amount
Foreign exchange contracts
Financial assets ................... $10 $(10) $ — $— $— $ —
Financial liabilities ................ (67) 10 (57) — — (57)
Total derivative instruments ....... $(57) $ — $(57) $— $— $(57)
88