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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
investment manager or administrator of the fund. The NAV is based on the value of the underlying assets owned by
the fund, minus liabilities and divided by the number of shares or units outstanding. These assets are classified as
either Level 1 or Level 2, depending on availability of quoted market prices for identical or similar assets.
If available, fixed income securities are valued using the close price reported on the major market on which the
individual securities are traded and are classified as Level 1. The fair value of other fixed income securities is typically
estimated using pricing models and quoted prices of securities with similar characteristics, and is generally classified
as Level 2.
Cash includes money market accounts that are valued at their cost plus interest on a daily basis, which approx-
imates fair value. Short-term investments represent securities with original maturities of one year or less. These assets
are classified as either Level 1 or Level 2.
Cash Flows
Contributions
The Company’s expected employer contributions for 2015 are $14 million for its Japanese defined benefit pen-
sion plans.
Estimated Future Benefits Payments
Annual benefit payments from the Japanese defined benefit pension plans are estimated to range from $7 million
to $11 million annually over the next five years.
Note 15. Acquisitions
Acquisition of Virident
On October 17, 2013, the Company acquired Virident, a provider of server-side flash storage solutions for virtual-
ization, database, cloud computing and webscale applications. As a result of the acquisition, Virident has been fully
integrated into the Company’s HGST subsidiary and become a wholly owned indirect subsidiary of the Company. The
purchase price of the acquisition was approximately $613 million, consisting of $598 million which was funded with
available cash, and $15 million related to the fair value of stock options assumed. The acquisition furthered HGST’s
strategy to address the rapidly changing needs of enterprise customers by delivering intelligent storage solutions that
maximize application performance by leveraging the tightly coupled server, storage and network resources of today’s
converged datacenter infrastructures.
The Company identified and recorded the assets acquired and liabilities assumed at their estimated fair values at
the date of acquisition, and allocated the remaining value of $506 million to goodwill. The values assigned to the
acquired assets and liabilities were finalized as of the date of this Annual Report on Form 10-K. The individual tangi-
ble and intangible assets acquired as well as the liabilities assumed in the acquisition were immaterial to the Compa-
ny’s consolidated financial statements. In addition, pro forma financial information has not been presented as the
acquisition did not have a material impact on the Company’s consolidated financial statements in 2014.
The final purchase price allocation for Virident was as follows (in millions):
October 17,
2013
Tangible assets acquired and liabilities assumed .................................... $ 58
Intangible assets ............................................................ 49
Goodwill .................................................................. 506
Total ..................................................................... $613
93