1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 11-K
[X] Annual Report pursuant to Section 15(d) of the Securities Exchange Act
of 1934 [Fee Required]
For the fiscal year ended June 30, 1997
OR
[ ] Transition Report pursuant to Section 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the transition period from _____ to _____
Commission File Number 1-8703
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
WESTERN DIGITAL CORPORATION
8105 Irvine Center Drive
Irvine, California 92618
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INTRODUCTION
Western Digital Corporation (the "Company") has established the
Western Digital Corporation Retirement Savings and Profit Sharing Plan (the
"Plan"), formerly known as the Western Digital Corporation Savings and Profit
Sharing Plan. The Plan is a cash or deferred arrangement plan intended to
qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended.
REQUIRED INFORMATION
I. Financial Statements:
These statements are listed in the Index to the Financial Statements.
II. Exhibits:
Consent of Independent Auditors.
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SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the Plan) have duly caused
this annual report to be signed on its behalf by the undersigned, hereunto duly
authorized.
WESTERN DIGITAL CORPORATION RETIREMENT
SAVINGS AND PROFIT SHARING PLAN
Date: December 23, 1997 By: DUSTON M. WILLIAMS
------------------------ ------------------
Duston M. Williams
Chairman of the Retirement
Plan Committee
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WESTERN DIGITAL CORPORATION
RETIREMENT SAVINGS AND PROFIT SHARING PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Page
----
Independent Auditors' Report............................................................. 5
Statements of Net Assets Available for Plan Benefits as of June 30, 1997 and 1996........ 6
Statements of Changes in Net Assets Available for Plan Benefits
for the years ended June 30, 1997 and 1996....................................... 7
Notes to Financial Statements............................................................ 8-17
Schedule I -- Item 27a -- Schedule of Assets Held for Investment Purposes ............... 18
Schedule II -- Item 27d -- Schedule of Reportable Transactions........................... 19
Schedules of Prohibited Transactions, Obligations in Default and Leases in
Default are not included herein because there were no such transactions during
the period.
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INDEPENDENT AUDITORS' REPORT
Retirement Plan Committee of the Board of Directors
Western Digital Corporation Retirement Savings and Profit Sharing Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Western Digital Corporation Retirement Savings and Profit
Sharing Plan (the "Plan"), formerly known as the Western Digital Corporation
Savings and Profit Sharing Plan, as of June 30, 1997 and 1996 and the related
statements of changes in net assets available for plan benefits for the years
then ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Western
Digital Corporation Retirement Savings and Profit Sharing Plan as of June 30,
1997 and 1996, and the changes in net assets available for plan benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule of Assets Held
for Investment Purposes and Schedule of Reportable Transactions are presented
for the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
KPMG PEAT MARWICK LLP
Orange County, California
December 19, 1997
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
(IN THOUSANDS)
June 30,
-------------------
1997 1996
-------- --------
Assets
Investments, at current value: (Notes 1, 2, 4 and 5)
Debt and equity securities ..................... $125,200 $ 83,530
Participant loans .............................. 4,195 3,898
-------- --------
Total investments .......................... 129,395 87,428
Cash and cash equivalents .......................... 1,609 17
Receivables (Notes 2 and 3)
Participants' contributions .................... 982 497
Employer's contribution ........................ 309 167
Employer's profit sharing contribution ......... 7,142 4,552
-------- --------
Total assets ............................... $139,437 $ 92,661
======== ========
Net assets available for Plan benefits:
Available to terminated participants ........... $ 27,833 $ 23,113
Available to continuing participants ........... 111,604 69,548
-------- --------
Net assets available for Plan benefits ..... $139,437 $ 92,661
======== ========
The accompanying notes are an integral part of these financial statements.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
(IN THOUSANDS)
Year ended June 30,
-------------------
1997 1996
-------- --------
Additions to net assets:
Participants' contributions ............. $ 10,969 $ 10,447
Employer's contributions ................ 2,665 2,460
Employer's profit sharing contributions.. 7,142 4,552
Interest and dividend income ............ 5,973 7,689
Realized/unrealized gain ................ 27,361 4,269
-------- --------
Total additions ..................... 54,110 29,417
Deductions from net assets:
Participant distributions paid .......... 7,334 5,144
-------- --------
Increase in net assets available
for Plan benefits ............... 46,776 24,273
Net assets available for Plan benefits at
beginning of year ....................... 92,661 68,388
-------- --------
Net assets available for Plan benefits at
end of year ............................. $139,437 $ 92,661
======== ========
The accompanying notes are an integral part of these financial statements.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements of the Western Digital Corporation
Retirement Savings and Profit Sharing Plan (the "Plan"), formerly known
as the Western Digital Corporation Savings and Profit Sharing Plan, have
been prepared on an accrual basis of accounting and present the net
assets available for Plan benefits as of June 30, 1997 and 1996 and
changes in net assets available for Plan benefits for the years ended
June 30, 1997 and 1996.
Valuation of Investments
Investments in marketable securities and common stock traded on national
security exchanges are valued at current market values, determined
through reference to public market information on the last business day
of the Plan's fiscal year. Securities not traded on the last business
day are valued at the last reported bid price. At June 30, 1997 and
1996, the Plan held investments in mutual funds, which are reported at
fair market value. Cash and cash equivalents are valued at cost plus
accrued interest which approximates market. Participant loans are
carried at their contract value which approximates fair market value.
Income Tax Status
The Internal Revenue Service has determined and informed Western Digital
Corporation (the "Company") by a letter dated January 17, 1997, that the
Plan is designed in accordance with applicable sections of the Internal
Revenue Code ("IRC"). The Plan has been amended since receiving the
determination letter. However, the Plan administrator and the Plan's tax
counsel believe that the Plan is designed and is currently being
operated in compliance with the requirements of the IRC.
Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and
deductions during the reporting period. Actual results could differ from
those estimates.
(2) DESCRIPTION OF THE PLAN
General
The Plan is a defined contribution plan as defined by the Employee
Retirement Income Security Act of 1974. Participants should refer to the
Plan document for a more complete description of the Plan's provisions.
Contributions
U.S. based employees of the Company, who meet the Plan's eligibility
criteria, are eligible to participate in the Plan and to receive
employer matching contributions. Eligible employees may elect to
contribute up to 14% of their compensation on a pretax basis and 9% of
their compensation on an after tax basis (with an aggregate limit of
14%) for investment in 12 funds, provided that contributions do not
exceed IRS limitations. The Company may make contributions equal to 50%
of pretax participant contributions to the Plan, which are limited to 5%
of the participant's compensation. The Company may also make additional
contributions at its discretion. The Company may suspend matching
contributions when it does not have
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
sufficient net profits to make the applicable matching contribution.
Contributions to the Plan are recorded as soon as administratively
possible after the Company makes payroll deductions from Plan
participants.
Investments
Participants designate their contributions, and those made by the
Company, for investment in any or all of the following funds:
Fund Investment Strategy
---- -------------------
Puritan Fund The Puritan Fund purchases shares in the
Fidelity Puritan Mutual Fund, which invests
primarily in common stock, preferred stock and
bonds of corporations with an emphasis on growth.
Blue Chip The Blue Chip Fund purchases shares in the
Fund Fidelity Blue Chip Mutual Fund , which
invests primarily in common stock of well-known
and established companies.
Magellan Fund The Magellan Fund purchases shares in the
Fidelity Magellan Mutual Fund, which invests
primarily in common stock and securities
convertible into common stock of corporations
with an emphasis on capital appreciation.
Stable Value The Stable Value Fund purchases shares in the
Fund T. Rowe Price Stable Value Mutual Fund, which
invests primarily in guaranteed investment
contracts ("GICs"), bank investment contracts
("BICs") and structured investment contracts
("SICs").
Western The Western Digital Common Stock Fund invests in
Digital the Company's common stock.
Common Stock
Fund
International The International Stock Fund purchases shares in
Stock Fund the T. Rowe Price International Stock Mutual
Fund, which invests primarily in common stock of
well-established, non-U.S. corporations.
Small-Cap The Small-Cap Value Fund purchases shares in the
Value Fund T. Rowe Price Small-Cap Value Mutual Fund, which
invests primarily in common stock of corporations
with a market value of $500 million or less that
appear undervalued compared to industry norms.
Science & Science and Technology Fund purchases shares in
Technology the T. Rowe Price Science and Technology Mutual
Fund Fund, which invests primarily in common stock of
companies expected to benefit from the development,
advancement, and use of science and technology.
Equity The Equity Income Fund purchases shares in the T.
Income Fund Rowe Price Equity Income Mutual Fund, which
invests primarily in dividend-paying common
stock, particularly of established companies with
favorable prospects for both increasing dividends
and capital appreciation.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Fund Investment Strategy
---- -------------------
Spectrum The Spectrum Income Fund purchases shares in the
Income Fund T. Rowe Price Spectrum Income Mutual Fund, which
invests primarily in a diversified group of T.
Rowe Price mutual funds which, in turn, invest
principally in fixed income securities.
Equity Index The Equity Index Fund purchases shares in the T.
Trust Rowe Price Equity Index Trust, which invests in,
to the extent practicable, all 500 stocks the
Standard & Poor's 500 Stock Index comprises in
proportion to their respective weighting in the
index.
Small The Small Company Growth Fund purchases shares in
Company the Warburg Pincus Small Company Growth Portfolio
Growth Fund Mutual Fund, which invests primarily in common
stock of small-sized domestic corporations.
Disciplined The Disciplined Equity Fund purchases shares in
Equity Fund the Fidelity Disciplined Equity Mutual Fund,
which invests primarily in domestic common stocks
that are considered undervalued compared to
industry norms.
On June 30, 1997, the Plan closed the Disciplined Equity Fund and
transferred all participant balances invested in this fund into any or
all of the remaining funds offered by the Plan as instructed by the
individual participants. In the event that no designation was made by a
participant, amounts invested in the Disciplined Equity Fund were
transferred to the Stable Value Fund at June 30, 1997.
As of June 30, 1997, all of the Plan's assets were invested in mutual
funds, Western Digital common stock, cash and cash equivalents or
participant loans. Participants may transfer all or a portion of the
balance in their accounts between investment funds on a daily basis.
Participant Loans
Loans can be made to a participant up to an amount equal to the lesser
of $50,000 or 50% of a participant's vested account balance. The loans
bear interest at 1% above the current prime rate published by T. Rowe
Price Trust Company and are generally payable in installments over
periods ranging from one to five years, unless the loan is used for the
purchase of a primary residence, in which case the repayment period may
be up to ten years. Principal and interest payments are allocated to the
participants' accounts in the same manner as their current
contributions. The Plan allows participants to have no more than two
active loans at a time. The annual interest rate charged on employee
loans during 1997 ranged from 7% to 10%.
Participant Accounts
A separate account is maintained for each participant in each designated
fund. Each account is adjusted for contributions and net investment
income or loss on a daily basis. Net investment income or loss is
allocated to the accounts in the same proportion as the participant's
beginning account balance invested in the fund (as defined in the Plan)
bears to the total of all participants' beginning account balances
invested in the fund.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Payment of Benefits
Upon termination, participants may receive a lump-sum payment in cash
and/or shares of the Company's common stock. The nonvested portion of
terminated participants' accounts is forfeited subject to a five-year
reinstatement period. Forfeitures are allocated annually to remaining
participants in the same ratio as each participant's compensation for
the plan year bears to the total compensation for the plan year of all
participants eligible to share in the allocation.
Certain restrictions apply to withdrawals of amounts from the Plan while
a participant continues to be employed by the Company.
Vesting
Participants are at all times one hundred percent vested in the value of
their voluntary contributions and the Company's profit sharing
contributions. A participant is fully vested in the Company's matching
contributions and earnings thereon after five years of service (as
defined in the Plan), or upon retirement (at normal retirement age),
permanent disability or death. The Company has the right under the Plan
to discontinue its contributions at any time and to terminate the Plan,
subject to the provisions of the Employee Retirement Income Security Act
of 1974. In the event of Plan termination, participants will become
fully vested in their accounts.
Administration of the Plan
The Retirement Plan Committee (the "Committee"), appointed by the Board
of Directors and consisting of at least three members, has the authority
to control and manage the operation and administration of the Plan. The
assets of the Plan are held in a non-discretionary trust by T. Rowe
Price Trust Company as trustee and are administered under a trust
agreement which requires that the trustee hold, administer and
distribute the funds of the Plan in accordance with the text of the Plan
and the instructions of the Committee or its designees. The compensation
or fees of accountants, counsel and other specialists and any other
costs of administering the Plan or the trust are paid by the Company or
charged to the trust at the discretion of the Company.
(3) PROFIT SHARING FEATURE
The Company adopted an annual profit sharing feature effective as of the
beginning of the Company's 1992 fiscal year. All eligible domestic
employees of the Company who are employed on the last day of the
Company's fiscal year are eligible to participate in the profit sharing
component. The amount of profit sharing paid to participants is
dependent upon their eligible compensation earned during the fiscal
year. A portion of each eligible participant's allocation of the
Company's profit sharing contribution is deposited into an individual
profit sharing account established under the Plan (6.0% and 4.7% of
eligible fiscal year compensation in 1997 and 1996, respectively) and
the excess allocable to such participant, if any, is paid as a fiscal
year-end cash bonus. Benefits are generally payable following
retirement, disability, death, hardship or termination of employment.
During 1997 and 1996, the Company authorized 4.1% and 6.5%,
respectively, of defined pre-tax profits to be allocated to the
participants. In 1997 and 1996, the Company contributed $7,141,684 and
$4,552,101, respectively, as profit sharing to the Plan.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(4) INVESTMENTS
The Plan's investments consist of the following at June 30, 1997 (in
thousands):
Shares Current
Held Cost Value
-------- -------- --------
Puritan Fund:
Fidelity Puritan Mutual Fund ................... 803 $ 13,316 $ 15,505
Blue Chip Fund:
Fidelity Blue Chip Mutual Fund ................. 106 3,404 4,027
Magellan Fund:
Fidelity Magellan Mutual Fund .................. 257 20,317 23,432
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund ......... 22,103 22,009 22,103
Western Digital Common Stock Fund ................. 1,150 19,378 36,355*
International Stock Fund:
T. Rowe Price International Stock Mutual Fund... 185 2,463 2,850
Small-Cap Value Fund:
T. Rowe Price Small-Cap Value Mutual Fund ...... 223 4,166 4,842
Science & Technology Fund:
T. Rowe Price Science & Technology Mutual Fund.. 271 8,287 8,243
Equity Income Fund:
T. Rowe Price Equity Income Mutual Fund ........ 273 5,858 6,851
Spectrum Income Fund:
T. Rowe Price Spectrum Income Mutual Fund ...... 87 966 992
Western Digital Participant Loans ................. -- 4,195 4,195
-------- --------
$104,359 $129,395
======== ========
* On December 19, 1997, the fair market value of the Western Digital Common
Stock Fund was $17.7 million, based on the 1,149,551 shares held at June 30,
1997.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
The Plan's investments consist of the following at June 30, 1996 (in
thousands):
Shares Current
Held Cost Value
------- ------- -------
Puritan Fund:
Fidelity Puritan Mutual Fund ................... 759 $12,432 $13,421
Disciplined Equity Fund:
Fidelity Disciplined Equity Mutual Fund ........ 34 752 754
Blue Chip Fund:
Fidelity Blue Chip Mutual Fund ................. 69 2,192 2,227
Magellan Fund:
Fidelity Magellan Mutual Fund .................. 306 24,237 22,910
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund ......... 18,788 18,788 18,788
Western Digital Common Stock Fund * ............... 956 6,359 12,484
International Stock Fund:
T. Rowe Price International Stock Mutual Fund... 99 1,245 1,324
Small-Cap Value Fund:
T. Rowe Price Small-Cap Value Mutual Fund ...... 110 1,909 2,040
Science & Technology Fund:
T. Rowe Price Science & Technology Mutual Fund.. 192 5,969 5,907
Equity Income Fund:
T. Rowe Price Equity Income Mutual Fund ........ 151 2,966 3,190
Spectrum Income Fund:
T. Rowe Price Spectrum Income Mutual Fund ...... 44 488 485
Western Digital Participant Loans ................. -- 3,898 3,898
------- -------
$81,235 $87,428
======= =======
* Reflects retroactive recognition of the two-for-one stock split
effected as a stock dividend in June 1997.
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(5) NET ASSETS AND CHANGES IN NET ASSETS BY FUND
The net assets at June 30, 1997 and 1996 and changes in net assets for
the years ended June 30, 1997 and 1996, allocated to the separate
investment funds are shown below.
Net assets available for Plan benefits by fund (in thousands):
June 30, 1997
---------------------------------------------------------------------------
Western Inter-
Blue Stable Digital national Small-Cap
Puritan Chip Magellan Value Common Stock Value
Fund Fund Fund Fund Stock Fund Fund Fund
-------- -------- -------- -------- ---------- -------- ---------
Assets
Investments, at current value.. $ 15,505 $ 4,027 $ 23,432 $ 22,103 $ 36,355 $ 2,850 $ 4,842
Cash and cash equivalents ..... 53 11 -- 1,539 6 -- --
Receivables
Participants' contributions... 109 60 136 148 132 51 67
Employer's contribution ...... 37 20 44 50 39 16 20
Employer's profit sharing
contribution ............... 647 348 896 2,254 998 242 356
-------- -------- -------- -------- -------- -------- --------
16,351 4,466 24,508 26,094 37,530 3,159 5,285
Interfund receivable(payable) 8 5 12 (67) 15 3 5
-------- -------- -------- -------- -------- -------- --------
Net assets available for
Plan benefits ................. $ 16,359 $ 4,471 $ 24,520 $ 26,027 $ 37,545 $ 3,162 $ 5,290
======== ======== ======== ======== ======== ======== ========
June 30, 1997 (Continued)
---------------------------------------------------------------------------
Small
Science & Equity Spectrum Equity Company Partici-
Technology Income Income Index Growth pant Total
Fund Fund Fund Trust Fund Loans Plan
---------- ------ -------- -------- ------- -------- --------
Assets
Investments, at current value.. $ 8,243 $ 6,851 $ 992 $ -- $-- $ 4,195 $129,395
Cash and cash equivalents ..... -- -- -- -- -- -- 1,609
Receivables
Participants' contributions... 156 94 16 9 4 -- 982
Employer's contribution ...... 45 30 5 2 1 -- 309
Employer's profit sharing
contribution .............. 709 498 114 61 19 -- 7,142
-------- -------- -------- -------- -------- -------- --------
9,153 7,473 1,127 72 24 4,195 139,437
Interfund receivable (payable) 9 6 2 1 1 -- --
-------- -------- -------- -------- -------- -------- --------
Net assets available for
Plan benefits ................. $ 9,162 $ 7,479 $ 1,129 $ 73 $ 25 $ 4,195 $139,437
======== ======== ======== ======== ======== ======== ========
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Net assets available for Plan benefits by fund (in thousands):
June 30, 1996
---------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national
Puritan Equity Chip Magellan Value Common Stock
Fund Fund Fund Fund Fund Stock Fund Fund
-------- -------- -------- -------- -------- ---------- --------
Assets
Investments, at current value.. $ 13,421 $ 754 $ 2,227 $ 22,910 $ 18,788 $ 12,484 $ 1,324
Cash and cash equivalents ..... -- -- 2 -- 2 -- 7
Receivables
Participants' contributions... 78 7 29 119 93 43 14
Employer's contribution ...... 27 2 9 40 33 15 5
Employer's profit sharing
contribution ............... 611 51 190 921 1,434 424 93
-------- -------- -------- -------- -------- -------- --------
14,137 814 2,457 23,990 20,350 12,966 1,443
Interfund receivable(payable) (14) (1) (4) (21) 71 (9) (3)
-------- -------- -------- -------- -------- -------- --------
Net assets available for
Plan benefits ................. $ 14,123 $ 813 $ 2,453 $ 23,969 $ 20,421 $ 12,957 $ 1,440
======== ======== ======== ======== ======== ======== ========
June 30, 1996 (continued)
-------------------------------------------------------------
Small-Cap Science & Equity Spectrum
Value Technology Income Income Participant Total
Fund Fund Fund Fund Loans Plan
--------- ---------- ------- -------- ----------- -------
Assets
Investments, at current value.. $ 2,040 $ 5,907 $ 3,190 $ 485 $ 3,898 $87,428
Cash and cash equivalents ..... -- 6 -- -- -- 17
Receivables
Participants' contributions... 19 61 26 8 -- 497
Employer's contribution ...... 6 19 8 3 -- 167
Employer's profit sharing
contribution ............... 141 429 190 68 -- 4,552
------- ------- ------- ------- ------- -------
2,206 6,422 3,414 564 3,898 92,661
Interfund receivable(payable) (4) (10) (4) (1) -- --
------- ------- ------- ------- ------- -------
Net assets available for
Plan benefits ................. $ 2,202 $ 6,412 $ 3,410 $ 563 $ 3,898 $92,661
======= ======= ======= ======= ======= =======
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Changes in net assets available for Plan benefits by fund (in thousands):
Year ended June 30, 1997
------------------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national Small-Cap
Puritan Equity Chip Magellan Value Common Stock Value
Fund Fund Fund Fund Fund Stock Fund Fund Fund
-------- -------- -------- -------- -------- -------- -------- --------
Additions to net assets:
Participants' contributions ..... $ 1,134 $ 177 $ 657 $ 1,562 $ 2,044 $ 1,612 $ 432 $ 655
Employer's contributions ........ 320 38 147 440 555 329 99 144
Employer's profit sharing
contribution .................. 647 -- 348 896 2,254 998 242 356
Interest and dividend income .... 1,711 72 199 735 1,285 -- 55 195
Realized/unrealized gain (loss).. 1,432 157 645 4,554 -- 18,705 357 635
-------- -------- -------- -------- -------- -------- -------- --------
Total additions .............. 5,244 444 1,996 8,187 6,138 21,644 1,185 1,985
-------- -------- -------- -------- -------- -------- -------- --------
Deductions from net assets:
Participant distributions paid... 996 24 75 1,257 2,283 2,420 1 64
Net forfeitures transferred
out (in) ....................... (25) (1) (11) (40) 144 (7) (7) (11)
-------- -------- -------- -------- -------- -------- -------- --------
Total deductions ............. 971 23 64 1,217 2,427 2,413 (6) 53
-------- -------- -------- -------- -------- -------- -------- --------
Net interfund transfers ........... (2,037) (1,234) 86 (6,419) 1,895 5,357 531 1,156
-------- -------- -------- -------- -------- -------- -------- --------
Increase (decrease) in net assets
available for Plan benefits... 2,236 (813) 2,018 551 5,606 24,588 1,722 3,088
Net assets available for Plan
benefits at:
Beginning of year .............. 14,123 813 2,453 23,969 20,421 12,957 1,440 2,202
-------- -------- -------- -------- -------- -------- -------- --------
End of year .................... $ 16,359 $ -- $ 4,471 $ 24,520 $ 26,027 $ 37,545 $ 3,162 $ 5,290
======== ======== ======== ======== ======== ======== ======== ========
Year ended June 30, 1997 (Continued)
-------------------------------------------------------------------------------
Small
Science & Equity Spectrum Equity Company
Technology Income Income Index Growth Participant Total
Fund Fund Fund Trust Fund Loans Plan
-------- -------- -------- -------- -------- -------- --------
Additions to net assets:
Participants' contributions ..... $ 1,585 $ 850 $ 248 $ 9 $ 4 $ -- $ 10,969
Employer's contributions ........ 345 195 50 2 1 -- 2,665
Employer's profit sharing
contribution .................. 709 498 114 61 19 -- 7,142
Interest and dividend income .... 913 400 59 -- -- 349 5,973
Realized/unrealized gain (loss) (83) 927 32 -- -- -- 27,361
-------- -------- -------- -------- -------- -------- --------
Total additions .............. 3,469 2,870 503 72 24 349 54,110
-------- -------- -------- -------- -------- -------- --------
Deductions from net assets:
Participant distributions paid... 96 65 1 -- -- 52 7,334
Net forfeitures transferred
out (in) ....................... (23) (13) (4) (1) (1) -- --
-------- -------- -------- -------- -------- -------- --------
Total deductions ............. 73 52 (3) (1) (1) 52 7,334
-------- -------- -------- -------- -------- -------- --------
Net interfund transfers ........... (646) 1,251 60 -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Increase (decrease) in net assets
available for Plan benefits... 2,750 4,069 566 73 25 297 46,776
Net assets available for
Plan benefits at:
Beginning of year .............. 6,412 3,410 563 -- -- 3,898 92,661
-------- -------- -------- -------- -------- -------- --------
End of year .................... $ 9,162 $ 7,479 $ 1,129 $ 73 $ 25 $ 4,195 $139,437
======== ======== ======== ======== ======== ======== ========
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WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Changes in net assets available for Plan benefits by fund (in thousands):
Year ended June 30, 1996
-------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national
Puritan Equity Chip Magellan Value Common Stock
Fund Fund Fund Fund Fund Stock Fund Fund
-------- -------- -------- -------- -------- -------- --------
Additions to net assets:
Participants' contributions ............ $ 1,494 $ 255 $ 541 $ 2,488 $ 2,465 $ 788 $ 197
Employer's contributions ............... 413 32 103 644 593 233 41
Employer's profit sharing
contribution ......................... 611 51 190 921 1,434 424 93
Interest and dividend income ........... 721 45 94 4,826 1,104 (3) 16
Realized/unrealized gain (loss) ........ 1,127 (1) 31 (2,319) -- 4,987 82
-------- -------- -------- -------- -------- -------- --------
Total additions ..................... 4,366 382 959 6,560 5,596 6,429 429
-------- -------- -------- -------- -------- -------- --------
Deductions from net assets:
Participant distributions paid ......... 835 19 39 1,641 2,335 853 70
Net forfeitures transferred
out (in) .............................. 6 2 4 (3) (51) 14 4
-------- -------- -------- -------- -------- -------- --------
Total deductions .................... 841 21 43 1,638 2,284 867 74
-------- -------- -------- -------- -------- -------- --------
Net interfund transfers .................. (2,405) 431 1,436 (2,792) (3,728) (2,050) 1,047
-------- -------- -------- -------- -------- -------- --------
Increase (decrease) in net assets
available for Plan benefits ......... 1,120 792 2,352 2,130 (416) 3,512 1,402
Net assets available for Plan benefits at:
Beginning of year ..................... 13,003 21 101 21,839 20,837 9,445 38
-------- -------- -------- -------- -------- -------- --------
End of year ........................... $ 14,123 $ 813 $ 2,453 $ 23,969 $ 20,421 $ 12,957 $ 1,440
======== ======== ======== ======== ======== ======== ========
Year ended June 30, 1996 (continued)
------------------------------------------------------------
Small-Cap Science & Equity Spectrum
Value Technology Income Income Participant Total
Fund Fund Fund Fund loans Plan
------- ------- ------- ------- ------- -------
Additions to net assets:
Participants' contributions ............ $ 315 $ 1,104 $ 573 $ 227 $-- $10,447
Employer's contributions ............... 53 222 88 38 -- 2,460
Employer's profit sharing
contribution ......................... 141 429 190 68 -- 4,552
Interest and dividend income ........... 37 418 116 25 290 7,689
Realized/unrealized gain (loss) ........ 145 (24) 243 (2) -- 4,269
------- ------- ------- ------- ------- -------
Total additions ..................... 691 2,149 1,210 356 290 29,417
------- ------- ------- ------- ------- -------
Deductions from net assets:
Participant distributions paid ......... 32 149 80 15 (924) 5,144
Net forfeitures transferred
out (in) .............................. 5 12 6 1 -- --
------- ------- ------- ------- ------- -------
Total deductions .................... 37 161 86 16 (924) 5,144
------- ------- ------- ------- ------- -------
Net interfund transfers .................. 1,502 4,187 2,196 176 -- --
------- ------- ------- ------- ------- -------
Increase (decrease) in net assets
available for Plan benefits ......... 2,156 6,175 3,320 516 1,214 24,273
Net assets available for Plan benefits at:
Beginning of year ..................... 46 237 90 47 2,684 68,388
------- ------- ------- ------- ------- -------
End of year ........................... $ 2,202 $ 6,412 $ 3,410 $ 563 $ 3,898 $92,661
======= ======= ======= ======= ======= =======
17
18
SCHEDULE I
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
ITEM 27A -- SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JUNE 30, 1997
(IN THOUSANDS)
Identity of Issuer, Borrower, Description of Investment, Current
Lessor or Similar Party Including Collateral or Par Value Cost Value
- ----------------------------- --------------------------------- -------- -----------
Fidelity Retirement Services 803 shares Fidelity Puritan Mutual Fund $ 13,316 $ 15,505
Fidelity Retirement Services 106 shares Fidelity Blue Chip Mutual Fund 3,404 4,027
Fidelity Retirement Services 257 shares Fidelity Magellan Mutual Fund 20,317 23,432
* T. Rowe Price Trust 22,103 shares T. Rowe Price Stable
Company Value Mutual Fund 22,009 22,103
* T. Rowe Price Trust 185 shares T. Rowe Price International
Company Stock Mutual Fund 2,463 2,850
* T. Rowe Price Trust 223 shares T. Rowe Price Small-Cap
Company Value Mutual Fund 4,166 4,842
* T. Rowe Price Trust 271 shares T. Rowe Price Science
Company & Technology Mutual Fund 8,287 8,243
* T. Rowe Price Trust 273 shares T. Rowe Price Equity
Company Income Mutual Fund 5,858 6,851
* T. Rowe Price Trust 87 shares T. Rowe Price Spectrum
Company Income Mutual Fund 966 992
* Western Digital Corporation 1,150 shares common stock; $.01 par value 19,378 36,355
Plan Participants 734 participant loans with annual interest
rates ranging from 7% to 10% 4,195 4,195
-------- -----------
$104,359 $ 129,395
======== ===========
* These entities are considered "parties in interest" under the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 because they either provide services to
the Plan or are an employer whose employees are covered by the Plan.
See accompanying independent auditors' report.
18
19
SCHEDULE II
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
ITEM 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JUNE 30, 1997
Current
Expense Value of
Incurred Asset on Net
Identity of Purchase Selling Lease with Cost Transaction Gain
Party Involved Description of Asset Price Price Rental Transaction of Asset Date (Loss)
- -------------- -------------------- -------- ------- ------ ----------- -------- ----------- ------
Series of Transactions in Excess of 5% of Current Value of the Plan's Assets (in thousands):
Fidelity Retirement Fidelity Puritan Mutual
Services Fund $ 4,209 $ -- -- -- $ 4,209 $ 4,209 $ --
Fidelity Retirement Fidelity Puritan Mutual
Services Fund 3,342 3,557 -- -- 3,342 3,557 215
Fidelity Retirement Fidelity Magellan Mutual
Services Fund 3,657 -- -- -- 3,657 3,657 --
Fidelity Retirement Fidelity Magellan Mutual
Services Fund 7,574 7,689 -- -- 7,574 7,689 115
Western Digital
Corporation Common Stock 22,363 -- -- -- 22,363 22,363 --
Western Digital
Corporation Common Stock 10,634 16,887 -- -- 10,694 16,887 6,193
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund 18,440 -- -- -- 18,440 18,440 --
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund 15,118 15,118 -- -- 15,118 15,118 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund 6,150 -- -- -- 6,150 6,150 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund 3,805 3,732 -- -- 3,805 3,732 (73)
T. Rowe Price T. Rowe Price
Trust Equity Income
Company Mutual Fund 4,127 -- -- -- 4,127 4,127 --
T. Rowe Price T. Rowe Price
Trust Equity Income
Company Mutual Fund 1,255 1,393 -- -- 1,255 1,393 138
T. Rowe Price T. Rowe Price
Trust Small-Cap Value
Company Mutual Fund 3,509 -- -- -- 3,509 3,509 --
T. Rowe Price T. Rowe Price
Trust Small-Cap Value
Company Mutual Fund 1,269 1,342 -- -- 1,269 1,342 73
Transactions in Excess of 5% of Current Value of the Plan's Assets:
None
See accompanying independent auditors' report.
19
20
WESTERN DIGITAL CORPORATION
RETIREMENT SAVINGS AND PROFIT SHARING PLAN
INDEX TO EXHIBITS
Sequentially
Exhibit Description Numbered Page
- ------- ----------- -------------
23. Consent of Independent Auditors........... 21
20