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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table presents information about the Company’s financial assets and liabilities that are measured at
fair value on a recurring basis as of June 27, 2014, and indicates the fair value hierarchy of the valuation techniques
utilized to determine such value (in millions):
Fair Value Measurements at
Reporting Date Using
Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents
Money market funds .................................. $756 $ — $— $ 756
Bank acceptances ..................................... — 1 — 1
Total cash equivalents ............................... 756 1 — 757
Short-term investments:
U.S. Government agency securities ....................... — 53 — 53
Commercial paper .................................... — 165 — 165
Certificates of deposit ................................. — 66 — 66
Total short-term investments ......................... — 284 — 284
Long-term investments:
U.S. Treasury securities ................................ — 180 — 180
U.S. Government agency securities ....................... — 35 — 35
Total long-term investments .......................... — 215 — 215
Foreign exchange contracts ............................... — 7 — 7
Total assets at fair value .............................. $756 $507 $— $1,263
Liabilities:
Foreign exchange contracts ............................... $ — $ 2 $— $ 2
Total liabilities at fair value ........................... $ — $ 2 $— $ 2
Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury and U.S.
Government Agency securities. Money market funds are valued based on quoted market prices.
Certificates of Deposit. The Company’s certificates of deposit are investments which are held in custody by a third
party. Certificates of deposit are valued using fixed interest rates.
Commercial Paper. The Company’s commercial paper securities are investments issued by corporations which are
held in custody by a third party. Commercial paper securities are valued using a market approach which is based on
observable inputs including market interest rates from multiple pricing sources.
U.S. Government Agency Securities. The Company’s U.S. Government agency securities are investments in fixed
income securities sponsored by the U.S. Government and are held in custody by a third party. U.S. Government
agency securities are valued using a market approach which is based on observable inputs including market interest
rates from multiple pricing sources.
U.S. Treasury Securities. The Company’s U.S. Treasury securities are direct obligations of the U.S. federal govern-
ment and are held in custody by a third party. U.S. Treasury securities are valued using a market approach which is
based on observable inputs including market interest rates from multiple pricing sources.
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