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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The impact on the consolidated financial statements was as follows (in millions):
Derivatives in Cash
Flow Hedging Relationships
Amount of Gain (Loss)
Recognized in
Accumulated
Other Comprehensive
Income on Derivatives
Location of Gain
Reclassified from
Accumulated
Other
Comprehensive
Income into
Income
Amount of Gain (Loss)
Reclassified from
Accumulated
Other Comprehensive
Income into Income
2014 2013 2014 2013
Foreign exchange contracts ..................$13 $13 Cost of revenue $(38) $43
The total net realized transaction and foreign exchange contract currency gains and losses were not material to
the consolidated financial statements during 2014, 2013 and 2012, respectively. See Notes 1 and 10 for additional
disclosures related to the Company’s foreign exchange contracts.
Note 13. Goodwill and Other Intangible Assets
The following table summarizes goodwill activity over the last three fiscal years (in millions):
Carrying Amount
Balance as of June 29, 2012 .............................................. $1,975
Purchase price adjustments to goodwill ....................................... (21)
Balance as of June 28, 2013 .............................................. $1,954
Goodwill recorded in connection with acquisitions .............................. 605
Balance as of June 27, 2014 .............................................. $2,559
Other intangible assets consist primarily of technology acquired in business combinations and are amortized on a
straight-line basis over the respective estimated useful lives of the assets. Intangible assets as of June 27, 2014 were as
follows:
Weighted Average
Amortization Period
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(in years) (in millions) (in millions) (in millions)
Existing technology ............... 5 $566 $368 $198
Customer relationships ............. 4 148 97 51
Other .......................... 3 73 55 18
Leasehold interests ................ 32 43 10 33
In-process research and development . . — 154 — 154
Total .......................... $984 $530 $454
Intangible assets as of June 28, 2013 were as follows:
Weighted Average
Amortization Period
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(in years) (in millions) (in millions) (in millions)
Existing technology ............... 5 $561 $245 $316
Customer relationships ............. 4 139 57 82
Other .......................... 3 65 36 29
Leasehold interests ................ 31 40 5 35
In-process research and development . . — 143 — 143
Total .......................... $948 $343 $605
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