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Document and Company Information (USD $)
In Billions, except Share data, unless otherwise specified |
6 Months Ended | ||
|---|---|---|---|
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Jan. 01, 2010
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Jan. 22, 2010
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Dec. 26, 2008
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|
| Document and Company Information [Abstract] | |||
| Entity Registrant Name | WESTERN DIGITAL CORP | ||
| Entity Central Index Key | 0000106040 | ||
| Document Type | 10-Q | ||
| Document Period End Date | Jan. 01, 2010 | ||
| Amendment Flag | false | ||
| Current Fiscal Year End Date | --07-03 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | $ 2.5 | ||
| Entity Common Stock, Shares Outstanding (actual number) | 228,641,577 |
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements this will be the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type should be limited to the same value as the supporting SEC submission type. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, NCSR, N-Q, and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Details
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No definition available.
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No definition available.
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- Definition
Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year from the balance sheet date or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year (current maturities) or the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The carrying value as of the balance sheet date for estimated warranty costs No definition available.
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- Definition
Dollar value of issued common stock whether issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. No definition available.
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- Definition
Net carrying amount after accumulated amortization as of the balance sheet date of intangible assets not otherwise specified in the taxonomy having a reasonably expected period of economic benefit. No definition available.
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- Definition
Dollar value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) whether issued at par value, no par or stated value. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. No definition available.
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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified |
Jan. 01, 2010
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Jul. 03, 2009
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|---|---|---|
| Shareholders' equity: | ||
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 5 | 5 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value | $ 0.01 | $ 0.01 |
| Common stock, shares authorized | 450 | 450 |
| Common stock, shares outstanding | 228 | 225 |
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Excludes common shares repurchased by the entity and held as Treasury shares. Shares outstanding equals shares issued minus shares held in treasury. Does not include common shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
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Jan. 01, 2010
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Dec. 26, 2008
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Jan. 01, 2010
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Dec. 26, 2008
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|
| Revenue, net | $ 2,619 | $ 1,823 | $ 4,827 | $ 3,933 |
| Cost of revenue | 1,932 | 1,533 | 3,626 | 3,219 |
| Gross margin | 687 | 290 | 1,201 | 714 |
| Operating expenses: | ||||
| Research and development | 154 | 119 | 296 | 252 |
| Selling, general and administrative | 60 | 42 | 113 | 99 |
| Restructuring | 0 | 113 | 0 | 113 |
| Total operating expenses | 214 | 274 | 409 | 464 |
| Operating income | 473 | 16 | 792 | 250 |
| Other income (expense): | ||||
| Interest income | 1 | 2 | 2 | 6 |
| Interest and other expense | (3) | (11) | (6) | (19) |
| Total other expense, net | (2) | (9) | (4) | (13) |
| Income before income taxes | 471 | 7 | 788 | 237 |
| Income tax provision (benefit) | 42 | (7) | 71 | 12 |
| Net income | $ 429 | $ 14 | $ 717 | $ 225 |
| Income per common share: | ||||
| Basic | $ 1.89 | $ 0.06 | $ 3.17 | $ 1.01 |
| Diluted | $ 1.85 | $ 0.06 | $ 3.1 | $ 1 |
| Weighted average shares outstanding: | ||||
| Basic | 227 | 222 | 226 | 222 |
| Diluted | 232 | 224 | 231 | 225 |
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- Definition
Total costs related to goods produced and sold during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity. No definition available.
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- Definition
Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate amount of income (expense) from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense. No definition available.
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- Details
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| X | ||||||||||
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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| X | ||||||||||
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- Definition
The costs incurred in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, excluding in-process research and development acquired in a business combination consummated during the period. Excludes software research and development, which has a separate concept. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount charged against earnings in the period for incurred and estimated costs, excluding asset retirement obligations, associated with exit from or disposal of business activities or restructurings pursuant to a program that is planned and controlled by management, and materially changes either the scope of a business undertaken by an entity, or the manner in which that business is conducted. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue during the period from the sale of goods in the normal course of business, after deducting returns, allowances and discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Number of [basic] shares, after adjustment for contingently issuable shares and other shares not deemed outstanding, determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Expense for borrowed money and other non-operating activities. No definition available.
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| X | ||||||||||
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- Definition
The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. No definition available.
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- Details
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| X | ||||||||||
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Change in recurring obligations of a business that arise from the acquisition of merchandise, materials, supplies and services used in the production and sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net change during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net change during the reporting period in the aggregate amount of expenses incurred but not yet paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of cash paid during the current period for interest owed on money borrowed; includes amount of interest capitalized Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow (outflow) associated with the acquisition or disposal of all investment such as debt, security and so forth during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash inflow associated with the amount received from holders to acquire the entity's shares under incentive and share awards other than stock option exercises. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Adjustment to remove noncash portion of restructuring costs and include cash payments when calculating cash flows from operations using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The difference between the carrying value and the sale price of debt securities includes other than temporary impairment on auction-rate securities. This element refers to the gain (loss) included in earnings and not to the cash proceeds of the sale. No definition available.
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- Definition
Taxes paid on vested stock awards under employee stock plans. No definition available.
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Basis of Presentation
|
6 Months Ended |
|---|---|
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Jan. 01, 2010
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| Basis of Presentation [Abstract] | |
| Basis of Presentation |
1. Basis of Presentation
The accounting policies followed by Western Digital Corporation (the “Company”) are set forth
in Note 1 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report
on Form 10-K for the year ended July 3, 2009. In the opinion of management, all adjustments
necessary to fairly state the unaudited condensed consolidated financial statements have been made.
All such adjustments are of a normal, recurring nature. Certain information and footnote
disclosures normally included in the consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been
condensed or omitted pursuant to the rules and regulations of the Securities and Exchange
Commission (“SEC”). These unaudited condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and the notes thereto included in the
Company’s Annual Report on Form 10-K for the year ended July 3, 2009. The results of operations for
interim periods are not necessarily indicative of results to be expected for the full year.
Company management has made estimates and assumptions relating to the reporting of certain
assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been
applied using methodologies which are consistent throughout the periods presented. However, actual
results could differ materially from these estimates.
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- Details
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- Definition
Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Supplemental Financial Statement Data
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 01, 2010
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| Supplemental Financial Statement Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Statement Data |
2. Supplemental Financial Statement Data
Inventories
Warranty
The Company records an accrual for estimated warranty costs when revenue is recognized. The
Company generally warrants its products for a period of one to five years. The warranty provision
considers estimated product failure rates and trends, estimated repair or replacement costs and
estimated costs for customer compensatory claims related to product quality issues, if any. A
statistical warranty tracking model is used to help with estimates and assists the Company in
exercising judgment in determining the underlying estimates. The statistical tracking model
captures specific detail on hard drive reliability, such as factory test data, historical field
return rates, and costs to repair by product type. If actual product return trends, costs to repair
returned products or costs of customer compensatory claims differ significantly from estimates,
future results of operations could be materially affected. Management’s judgment is subject to a
greater degree of subjectivity with respect to newly introduced products because of limited field
experience with those products upon which to base warranty estimates. Management reviews the
warranty accrual quarterly for products shipped in prior periods and which are still under
warranty. Any changes in the estimates underlying the accrual may result in adjustments that impact
current period gross margin and income. Such changes are generally a result of differences between
forecasted and actual return rate experience and costs to repair. Changes in the warranty accrual
for the three and six months ended January 1, 2010 and December 26, 2008 were as follows (in
millions):
Accrued warranty also includes amounts classified in non-current other liabilities of $37
million at January 1, 2010 and $28 million at July 3, 2009.
Subsequent Events
The Company evaluated subsequent events through January 29, 2010, the date these financial
statements were issued, and there were no material subsequent events that required recognition or
disclosure in these financial statements.
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- Definition
Supplemental Financial Statement Data. No definition available.
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Income per Common Share
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 01, 2010
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| Income per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income per Common Share |
3. Income per Common Share
The Company computes basic income per common share using net income and the weighted average
number of common shares outstanding during the period. Diluted income per common share is computed
using net income and the weighted average number of common shares and potentially dilutive common
shares outstanding during the period. Potentially dilutive common shares include certain dilutive
outstanding employee stock options, rights to purchase shares of common stock under the Company’s
Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards.
The following table illustrates the computation of basic and diluted income per common share
(in millions, except per share data):
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- Definition
This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Debt
|
6 Months Ended |
|---|---|
|
Jan. 01, 2010
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| Debt [Abstract] | |
| Debt |
4. Debt
In February 2008, Western Digital Technologies, Inc. (“WDTI”), a wholly-owned subsidiary of
the Company, entered into a five-year Credit Agreement (“Credit Facility”) that provides for a $750
million unsecured loan consisting of a $500 million term loan facility and a $250 million revolving
credit facility. The revolving credit facility includes borrowing capacity available for letters of
credit and for short-term borrowings referred to as swingline. In addition, WDTI may elect to
expand the Credit Facility by up to $250 million if existing or new lenders provide additional term
or revolving commitments. The $500 million term loan had a variable interest rate of 1.50% as of
January 1, 2010 and requires sixteen quarterly principal payments, which began in June 2009, of
approximately $19 million, $25 million, $31 million and $50 million per quarter for each
four-quarter increment. As of January 1, 2010, WDTI had $250 million available for future
borrowings on the revolving credit facility and was in compliance with all covenants.
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| X | ||||||||||
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- Definition
Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Stock-Based Compensation
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 01, 2010
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| Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation |
5. Stock-Based Compensation
During the three and six months ended January 1, 2010, the Company charged to expense $9
million and $17 million, respectively, for stock-based compensation related to options issued under
stock option plans and the ESPP, compared to $5 million and $10 million in the comparative
prior-year periods. At January 1, 2010, total compensation cost related to unvested stock options
and ESPP rights issued to employees but not yet recognized was $67 million and will be amortized on
a straight-line basis over a weighted average service period of approximately 2.39 years.
The Company granted approximately 0.6 million restricted stock units during the six months
ended January 1, 2010, which are payable in an equal number of shares of the Company’s common stock
at the time of vesting of the units. The aggregate market value of the shares underlying the
restricted stock unit awards was $20 million at the date of grant. As of January 1, 2010, the
aggregate unamortized fair value of all restricted stock unit awards was $41 million and will be
recognized on a straight-line basis over a weighted average vesting period of approximately 1.7
years. For the three and six months ended January 1, 2010, the Company recognized approximately $4
million and $10 million, respectively, in expense related to restricted stock unit awards that
vested during the period, compared to $6 million and $11 million in the comparative prior-year
periods.
Stock Option Activity
The following table summarizes activity under the Company’s stock option plans (in millions,
except per share and remaining contractual life amounts):
The aggregate intrinsic value is calculated based on the difference between the exercise price
of the underlying awards and the quoted price of the Company’s common stock for those awards that
have an exercise price below the quoted price on the date the intrinsic value is determined. As of
January 1, 2010, the Company had options outstanding to purchase an aggregate of 10.3 million
shares with an exercise price below the quoted price of the Company’s stock on that date resulting
in an aggregate intrinsic value of $247 million. During the three and six months ended January 1,
2010, the aggregate intrinsic value of options exercised under the Company’s stock option plans was
$33 million and $50 million, respectively, determined as of the date of exercise, compared to $0.3
million and $1.6 million in the comparative prior-year periods.
Fair Value Disclosures – Stock Options and ESPP
The fair value of stock options granted during the three and six months ended January 1, 2010
was estimated using a binomial option pricing model. The binomial model requires the input of
highly subjective assumptions including the expected stock price volatility, the expected price
multiple at which employees are likely to exercise stock options and the expected employee
termination rate. The Company uses historical data to estimate option exercise, employee
termination, and expected stock price volatility within the binomial model. The risk-free rate for
periods within the contractual life of the option is based on the U.S. Treasury yield curve in
effect at the time of
grant. The fair value of stock options granted during the three and six months ended January
1, 2010 and December 26, 2008 was estimated using the following weighted average assumptions:
The weighted average expected term of the Company’s stock options for the three and six months
ended January 1, 2010 was 4.73 years and 4.60 years, respectively, compared to 4.79 years and 5.49
years in the comparative prior-year periods.
The fair value of ESPP purchase rights issued is estimated at the date of grant of the
purchase rights using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton
option-pricing model was developed for use in estimating the fair value of traded options that have
no vesting restrictions and are fully transferable. The
Black-Scholes-Merton option-pricing model
requires the input of highly subjective assumptions such as the expected stock price volatility and
the expected period until options are exercised. Purchase rights under the current ESPP provisions
are granted on either June 1 or December 1. ESPP activity was immaterial to the condensed
consolidated financial statements for the three and six months ended January 1, 2010 and December
26, 2008.
|
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| X | ||||||||||
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- Definition
Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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|
Legal Proceedings
|
6 Months Ended |
|---|---|
|
Jan. 01, 2010
|
|
| Legal Proceedings [Abstract] | |
| Legal Proceedings |
6. Legal Proceedings
The Company discloses material loss contingencies deemed to be reasonably possible and accrues
for loss contingencies when, in consultation with the Company’s legal advisors, the Company
concludes that a loss is probable and reasonably estimable. The ability to predict the ultimate
outcome of such matters involves judgments, estimates and inherent uncertainties. The actual
outcome of such matters could differ materially from management’s estimates.
Intellectual Property Litigation
On June 20, 2008, plaintiff Convolve, Inc. (“Convolve”) filed a complaint in the Eastern
District of Texas against the Company and two other companies alleging infringement of U.S. Patent
Nos. 6,314,473 and 4,916,635. Plaintiff is seeking unspecified monetary damages and injunctive
relief. On October 10, 2008, Convolve amended its complaint to allege infringement of only the ’473
patent. The ’473 patent allegedly relates to interface technology to select between certain modes
of a disk drive’s operations relating to speed and noise. The Company intends to defend itself
vigorously in this matter.
On December 8, 2008, plaintiffs MagSil Corporation and the Massachusetts Institute of
Technology filed a complaint in the District of Delaware against the Company and seven other
companies in the disk drive industry alleging infringement of U.S. Patent Nos. 5,629,922 and
5,835,314. Plaintiffs are seeking unspecified monetary damages and injunctive relief. The asserted
patents allegedly relate to tunneling magnetoresistive technology. The Company intends to defend
itself vigorously in this matter.
On April 7, 2009, plaintiff Gregory Bender filed a complaint in the Northern District of
California against the Company and Seagate Technology LLC alleging infringement of U.S. Patent No.
5,103,188. Plaintiff is seeking unspecified monetary damages. The asserted patent allegedly relates
to buffered transconductance amplifier technology. The Company intends to defend itself vigorously
in this matter.
On July 15, 2009, plaintiffs Carl B. Collins and Farzin Davanloo filed a complaint in the
Eastern District of Texas against the Company and ten other companies alleging infringement of U.S.
Patent Nos. 5,411,797 and 5,478,650. Plaintiffs are seeking injunctive relief and unspecified
monetary damages, fees, and costs. The asserted patents allegedly relate to nanophase diamond
films. The Company intends to defend itself vigorously in this matter.
On December 7, 2009, plaintiff Nazomi Communications filed a complaint in the Eastern District
of Texas against the Company and seven other companies alleging infringement of U.S. Patent Nos.
7,080,362 and 7,225,436. Plaintiffs are seeking injunctive relief and unspecified monetary
damages, fees, and costs. The asserted patents allegedly relate to processor cores capable of Java
hardware acceleration. The Company intends to defend itself vigorously in this matter.
On January 5, 2010, plaintiff Enova Technology Corporation filed a complaint in the District
of Delaware against the Company and Initio Corporation alleging infringement of U.S. Patent Nos.
7,136,995 and 7,386,734. Plaintiffs are seeking injunctive relief and unspecified monetary
damages, fees, and costs. The asserted patents allegedly relate to real time full disk encryption
application specific integrated circuits, or ASICs. The Company intends to defend itself vigorously
in this matter.
Employment Litigation
On March 20, 2009, plaintiff Ghazala H. Durrani, a former employee of the Company, filed a
putative class action complaint in the Alameda County (California) Superior Court. The complaint
alleges that certain of the Company’s engineers have been misclassified as exempt employees under
California state law and are, therefore, due unpaid hourly overtime wages and other amounts, as
well as penalties for allegedly missed meal and rest periods. By court order dated April 24, 2009,
the case was transferred to the Orange County (California) Superior Court, where it is now pending.
On or about June 16, 2009, the Company was dismissed from the case without prejudice by
stipulation, leaving WDTI as the sole remaining defendant. On or about June 4, 2009, WDTI filed its
Answer to the complaint, denying the substantive allegations thereof and raising several
affirmative defenses. The case is in the preliminary stages, with no formal discovery having
occurred. A court hearing on whether the case should be certified as a class action will likely not
occur until mid 2010 at the earliest. If the Company is unsuccessful in its defense of this matter,
potential liability could include unpaid wages, interest, penalties, attorneys’ fees and costs. The
Company intends to defend itself vigorously in this matter.
Other Matters
In the normal course of business, the Company is subject to other legal proceedings, lawsuits
and other claims. Although the ultimate aggregate amount of probable monetary liability or
financial impact with respect to these other matters is subject to many uncertainties and is
therefore not predictable with assurance, management believes that any monetary liability or
financial impact to the Company from these other matters,
individually and in the aggregate, would
not be material to the Company’s financial condition, results of operations or cash flows. However,
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.
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- Definition
Legal Proceedings. No definition available.
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Income Taxes
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Jan. 01, 2010
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| Income Taxes [Abstract] | |
| Income Taxes |
7. Income Taxes
The Company’s income tax provision for the three months ended January 1, 2010 was $42 million
compared to a benefit of $7 million in the prior-year period. The Company’s income tax provision
for the six months ended January 1, 2010 was $71 million as compared to $12 million in the
prior-year period. The differences between the effective tax rate and the U.S. Federal statutory
rate are primarily due to tax holidays in Malaysia and Thailand that expire at various dates
through 2022 and the current year generation of income tax credits.
In the three months ended January 1, 2010, the Company recognized an increase of $26 million
in liability for unrecognized tax benefits. As of January 1, 2010, the Company had approximately
$178 million of unrecognized tax benefits. Interest and penalties recognized on such amounts were
not material.
The United States Internal Revenue Service (the “IRS”) is currently examining fiscal years
ended 2006 and 2007 for the Company and calendar years 2005 and 2006 for Komag, Incorporated, which
was acquired by the Company on September 5, 2007. In the three months ended January 1, 2010, the
local tax authorities completed, with no material adjustment, their examination of the Company’s
French subsidiary for fiscal years 2003 through 2005.
Due to the risk that audit outcomes and the timing of audit settlements are subject to
significant uncertainty, the Company’s current estimate of the total amounts of unrecognized tax
benefits could increase or decrease for all open tax years. As of January 1, 2010, it is not
possible to estimate the amount of change, if any, in the unrecognized tax benefits that is
reasonably possible within the next twelve months. Any significant change in the amount of the
Company’s unrecognized tax benefits would most likely result from additional information or
settlements relating to the examination of the Company’s uncertain tax positions.
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- Definition
Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value Measurements
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8. Fair Value Measurements
Financial assets and liabilities that are remeasured and reported at fair value at each
reporting period are classified and disclosed in one of the following three categories:
Level 1. Quoted prices in active markets for identical assets or liabilities.
Level 2. Inputs other than Level 1 that are observable, either directly or indirectly, such as
quoted prices for similar assets or liabilities; quoted prices in markets that are not active;
or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.
Level 3. Inputs that are unobservable for the asset or liability and that are significant to the
fair value of the assets or liabilities.
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 January 1, 2010, and indicates the fair
value hierarchy of the valuation techniques utilized to determine such value (in millions):
Money Market Funds. The Company’s money market funds are AAA rated institutional money market
funds that are invested in U.S. Treasury securities and are recorded within cash and cash
equivalents in the condensed consolidated balance sheet. Money market funds are valued based on
quoted market prices.
U.S. Treasury Securities. The Company’s U.S. Treasury securities are investments in Treasury
bills with original maturities of three months or less and are recorded within cash and cash
equivalents in the condensed consolidated balance sheet. U.S. Treasury securities are valued based
on broker quotations using observable inputs.
U.S. Government Agency Securities. The Company’s U.S. Government agency securities are fixed
income securities sponsored by the U.S. Government of which $221 million have original maturities
of three months or less and are recorded within cash and cash
equivalents and $1 million are
classified as available-for-sale securities and are recorded within other current assets in the
condensed consolidated balance sheet. U.S. Government agency securities classified within Level 2
are valued based on broker quotations using observable inputs. U.S. Government agency securities
classified as Level 3 are valued using a third party pricing service.
Auction-Rate Securities. The Company’s auction-rate securities are primarily backed by
insurance products and are expected to be held until secondary markets become available. As a
result, they are classified as long-term investments. These investments are currently accounted for
as available-for-sale securities and recorded within other non-current assets in the condensed
consolidated balance sheet. Auction-rate securities are valued using a third party pricing service.
Foreign Exchange Contracts. The Company’s foreign exchange contracts are short-term contracts
to hedge the Company’s foreign currency risk related to the Thai Baht, Malaysian Ringgit, Euro and
British Pound Sterling. Foreign exchange contracts are classified within other current assets
in the condensed consolidated balance sheet. Foreign exchange contracts are valued based on the
present value of future cash flows using market-based observable inputs, including forward rates
and credit default swap rates.
The following table presents the changes in Level 3 instruments measured on a recurring basis
for the three months ended January 1, 2010 (in millions):
In the three months ended October 2, 2009, there were no changes in Level 3 instruments
measured on a recurring basis. The Company had no liabilities that were re-measured and reported at
fair value on a recurring basis at January 1, 2010.
The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses
approximate fair value for all periods presented because of the short-term maturity of these assets
and liabilities. The carrying amount of debt approximates fair value because of its variable
interest rate.
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- Definition
This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Foreign Exchange Contracts
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Jan. 01, 2010
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| Foreign Exchange Contracts |
9. Foreign Exchange Contracts
Although the majority of the Company’s transactions are in U.S. dollars, some transactions are
based in various foreign currencies. The Company purchases short-term, foreign exchange contracts
to hedge the impact of foreign currency exchange fluctuations on certain underlying assets,
revenue, liabilities and commitments for operating expenses and product costs denominated in
foreign currencies. The purpose of entering into these hedging transactions is to minimize the
impact of foreign currency fluctuations on the Company’s results of operations. These contract
maturity dates do not exceed 12 months. All forward exchange contracts are for risk management
purposes only. The Company does not purchase forward exchange contracts for trading purposes.
Currently, the Company focuses on hedging its foreign currency risk related to the Thai Baht,
Malaysian Ringgit, Euro, and British Pound Sterling. Malaysian Ringgit contracts are designated
as cash flow hedges. Euro and British Pound Sterling contracts are designated as fair value hedges.
Thai Baht contracts are designated as either cash flow or fair value hedges.
If a derivative is designated as a cash flow hedge, the effective portion of the change in
fair value of the derivative is initially deferred in other comprehensive income (loss), net of
tax. These amounts are subsequently recognized into earnings when the underlying cash flow being
hedged is recognized into earnings. As of January 1, 2010, the net amount of existing gains
expected to be reclassified into earnings within the next twelve months was $4 million. The Company
determined the ineffectiveness associated with its cash flow hedges to be immaterial.
A change in the fair value of fair value hedges is recognized in earnings in the period
incurred and is reported as a component of operating expenses. All fair value hedges were
determined to be effective. The fair value and the changes in fair value on these contracts were
not material to the condensed consolidated financial statements.
As of January 1, 2010, the Company did not have any foreign exchange contracts with
credit-risk-related contingent features. The Company opened $1.5 billion and $2.9 billion, and
closed $1.2 billion and $1.9 billion, in
foreign exchange contracts in the three and six months ended January 1, 2010, respectively.
The fair value, balance sheet location and the impact on the condensed consolidated financial
statements during the three and six months ended January 1, 2010 were as follows (in millions):
The total net realized transaction and forward exchange contract currency gains and losses
were not material to the condensed consolidated financial statements during this period.
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- Definition
Disclosure of foreign currency transactions and translation. This may include description of foreign currency transactions, foreign currency gains and losses, explanation of change in cumulative translation adjustment, description of effect of subsequent foreign currency exchange rate change, cumulative translation adjustment movement, foreign currency translation adjustment by component movement, translation adjustment for net investment hedge movement, adjustment for long-term intercompany transactions, schedule of long-term intercompany balances and any other foreign currency transactions and translation related items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Recent Accounting Pronouncements
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6 Months Ended |
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Jan. 01, 2010
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| Recent Accounting Pronouncements [Abstract] | |
| Recent Accounting Pronouncements |
10. Recent Accounting Pronouncements
In September 2006, the Financial Accounting Standards Board (“FASB”) issued ASC 820, “Fair
Value Measurements and Disclosures” (“ASC 820”), which establishes a framework for measuring fair
value under U.S. GAAP and expands disclosures about fair value measurement. In February 2008, FASB
issued ASC 820-10-65-1, “Fair Value Measurements and Disclosures — Transition and Open Effective
Date Information,” which delayed the effective date of ASC 820 for all non-financial assets and
non-financial liabilities, except those that are recognized or disclosed at fair value in the
financial statements on a recurring basis, until fiscal years beginning after November 15, 2008 and
interim periods within those years, which for the Company was the first quarter of fiscal 2010. The
Company’s adoption of the provisions of ASC 820 for non-financial assets and non-financial
liabilities in the first quarter of fiscal 2010 had no impact on its consolidated financial
statements.
In December 2007, the FASB issued ASC 805, “Business Combinations” (“ASC 805”). ASC 805
establishes principles and requirements for how the acquirer of a business recognizes and measures
in its financial statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree. ASC 805 also provides guidance for recognizing and
measuring the goodwill acquired in the business combination or a gain from a bargain purchase and
determines what information to disclose to enable users of financial statements to evaluate the
nature and financial effects of the business combination. ASC 805 applies prospectively to business
combinations for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008, which for the Company was the first
quarter of fiscal 2010. ASC 805 will impact the Company’s consolidated financial statements for
business combinations with an acquisition date on or after adoption in the first quarter of fiscal
2010. The Company’s adoption of ASC 805 in the first quarter of fiscal 2010 had no impact on its
consolidated financial statements.
In April 2008, the FASB issued ASC 350-30-65-1, “General Intangibles Other than Goodwill —
Transition and Open Effective Date Information” (“ASC 350-30-65-1”), which amends the factors that
should be considered in developing renewal or extension assumptions used to determine the useful
life of a recognized intangible asset under ASC 350, “Intangibles — Goodwill and Other.” ASC
350-30-65-1 is effective for fiscal years beginning on or after December 15, 2008, which for the
Company was the first quarter of fiscal year 2010. The Company’s adoption of ASC 350-30-65-1 in the
first quarter of fiscal 2010 had no impact on its consolidated financial statements.
In April 2009, the FASB issued ASC 825-10-65-1, “Financial Instruments — Transition and Open
Effective Date Information” (“ASC 825-10-65-1”), which amends ASC 825, “Financial Instruments,” and
ASC 270, “Interim Financial Reporting,” to require disclosures about fair value of financial
instruments in interim and annual reporting periods. The Company’s adoption of ASC 825-10-65-1 in
the first quarter of fiscal 2010 did not have a material impact on its consolidated financial
statements.
In September 2009, the FASB issued Accounting Standards Update (“ASU”) 2009-13,
“Multiple-Deliverable Revenue Arrangements” (“ASU
2009-13”), and ASU 2009-14, “Certain Revenue
Arrangements That Include Software Elements” (“ASU 2009-14”). ASU 2009-13 amends the revenue
guidance under Subtopic 605-25, “Multiple Element
Arrangements”, and addresses how to determine
whether an arrangement involving multiple deliverables contains more than one unit of accounting
and how arrangement consideration shall be measured and allocated to the separate units of
accounting in the arrangement. ASU 2009-14 excludes tangible products containing software
components and non-software components that function together to deliver the product’s essential
functionality from the scope of Subtopic 985-605, “Revenue Recognition.” ASU 2009-13 and ASU
2009-14 are effective for periods beginning after December 15, 2009 with earlier adoption
permitted. The Company is currently evaluating the timing of its adoption of ASU 2009-13 and ASU
2009-14 and the impact that these new accounting standards will have on its consolidated financial
statements.
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- Definition
Represents disclosure of any changes in an accounting principle, including a change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. Also disclose any change in the method of applying an accounting principle, or any change in an accounting principle required by a new pronouncement in the unusual instance that a new pronouncement does not include specific transition provisions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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