1
================================================================================
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, 1999
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
2
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.
2
3
SIGNATURES
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 17, 1999 By: DUSTON M. WILLIAMS
----------------------------- -----------------------------------
Duston M. Williams
Chairman of the Retirement
Plan Committee
3
4
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, 1998 and 1999............................................. 6
Statements of Changes in Net Assets Available for Plan Benefits
for the years ended June 30, 1998 and 1999......................... 7
Notes to Financial Statements............................................. 8-17
Schedule I -- Item 27a -- Schedule of Assets Held for
Investment Purposes .............................................. 18
Schedule II -- Item 27b -- Schedule of Loans or
Fixed Income Obligations.......................................... 19
Schedule III -- Item 27d -- Schedule of Reportable Transactions.......... 20
All other schedules are omitted because they are not required by Department of
Labor regulations or are not applicable.
4
5
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") as of June 30, 1998 and 1999 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,
1998 and 1999, 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, Schedule of Loans or Fixed Income Obligations 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 LLP
Orange County, California
December 7, 1999
5
6
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
(IN THOUSANDS)
June 30,
------------------------
1998 1999
-------- --------
Assets
Investments, at current value: (Notes 1, 2, 4 and 5)
Debt and equity securities ..................... $138,486 $154,407
Participant loans .............................. 5,147 4,692
-------- --------
Total investments ......................... 143,633 159,099
Cash and cash equivalents ........................... 63 113
-------- --------
Total assets .............................. $143,696 $159,212
======== ========
Net assets available for Plan benefits:
Available to terminated participants ........... $ 31,301 $ 58,134
Available to continuing participants ........... 112,395 101,078
-------- --------
Net assets available for Plan benefits..... $143,696 $159,212
======== ========
The accompanying notes are an integral part of these financial statements.
6
7
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,
--------------------------
1998 1999
--------- --------
Additions to net assets:
Participants' contributions ......... $ 13,468 $ 13,501
Employer's contributions ............ 2,880 3,234
--------- --------
Total contributions ............ 16,348 16,735
--------- --------
Interest and dividend income ........ 7,973 8,967
Realized/unrealized gain (loss) ..... (12,638) 3,334
--------- --------
Total investment income (loss) . (4,665) 12,301
--------- --------
Total additions ................ 11,683 29,036
Deductions from net assets:
Participant distributions paid ...... 7,424 13,520
--------- --------
Increase in net assets available
for Plan benefits .......... 4,259 15,516
Net assets available for Plan benefits at
beginning of year .................. 139,437 143,696
--------- --------
Net assets available for Plan benefits at
end of year ........................ $ 143,696 $159,212
========= ========
The accompanying notes are an integral part of these financial statements.
7
8
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 AND 1999
(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, 1998 and 1999 and changes in net
assets available for Plan benefits for the years ended June 30, 1998 and
1999.
Valuation of Investments
Investments in marketable securities and common stock traded on national
securities 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, 1998 and 1999, 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 outstanding
balance 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, up to the first 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
8
9
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 Fidelity Blue
Fund 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 the T.
Stock Fund Rowe Price International Stock Stock Fund 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 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 & The Science and Technology Fund purchases shares in
Technology the T. Rowe Price Science and Technology Fund Technology
Fund Mutual Fund, which invests primarily in common stock of
companies expected to benefit from the development,
advancement, and use of science and technology.
Equity Income The Equity Income Fund purchases shares in the T. Rowe
Fund 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.
9
10
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fund Investment Strategy
---- -------------------
Spectrum Income The Spectrum Income Fund purchases shares in the T. Rowe
Fund 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 Trust The Equity Index Fund purchases shares in the T. 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 Company The Small Company Growth Fund purchases shares in the
Growth Fund Warburg Pincus Small Company Growth Portfolio Mutual
Fund, which invests primarily in common stock of
small-sized domestic corporations.
As of June 30, 1999, 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.
As of June 30, 1999, the following investments represented greater than 5% of
the market value of the Plan's net assets (in thousands):
Fund Market Value
---- ------------
Puritan Fund $18,810
Blue Chip Fund 11,994
Magellan Fund 38,632
Stable Value Fund 26,773
Western Digital Stock Fund 13,984
Science & Technology Fund 16,536
Equity Income Fund 9,609
Participant Loans
Loans can be made to a participant up to an amount equal to the lesser of
$50,000 reduced by the participant's highest outstanding balance during the
preceding 12 months 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 1999 ranged from 7.0% to 11.9%.
10
11
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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 (0% of eligible
fiscal year compensation in 1998 and 1999) 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 1998 and 1999, the Company did not authorize
any defined pre-tax profits to be allocated to the participants. In 1998 and
1999, the Company did not contribute to the profit sharing feature of the Plan.
11
12
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, 1998 (in
thousands):
Shares Current
Held Cost Value
------ ---- -------
Puritan Fund:
Fidelity Puritan Mutual Fund ................. 880 $ 15,195 $ 18,597
Blue Chip Fund:
Fidelity Blue Chip Mutual Fund ............... 163 5,956 7,651
Magellan Fund:
Fidelity Magellan Mutual Fund ................ 287 24,161 31,516
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund ....... 25,372 25,372 25,372
Western Digital Common Stock Fund ................ 1,303 26,263 15,392
International Stock Fund:
T. Rowe Price International Stock Mutual Fund 213 2,973 3,252
Small-Cap Value Fund:
T. Rowe Price Small-Cap Value Mutual Fund .... 310 6,476 7,437
Science & Technology Fund:
T. Rowe Price Science & Technology Mutual Fund 340 10,461 10,777
Equity Income Fund:
T. Rowe Price Equity Income Mutual Fund ...... 412 9,774 11,232
Spectrum Income Fund:
T. Rowe Price Spectrum Income Mutual Fund .... 215 2,487 2,536
Equity Index Trust:
T. Rowe Price Equity Index Trust ............. 144 3,624 4,199
Small Company Growth Fund:
Warburg Pincus Small Company Growth Portfolio
Mutual Fund .................................. 33 503 525
Western Digital Participant Loans ................ -- 5,147 5,147
-------- --------
$138,392 $143,633
======== ========
12
13
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, 1999 (in thousands):
Shares Current
Held Cost Value
------ ---- -------
Puritan Fund:
Fidelity Puritan Mutual Fund ................. 910 $ 16,012 $ 18,810
Blue Chip Fund:
Fidelity Blue Chip Mutual Fund ............... 220 9,028 11,994
Magellan Fund:
Fidelity Magellan Mutual Fund ................ 298 26,926 38,632
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund ....... 26,773 26,773 26,773
Western Digital Common Stock Fund ................ 2,151 33,223 13,984
International Stock Fund:
T. Rowe Price International Stock Mutual Fund 211 2,970 3,297
Small-Cap Value Fund:
T. Rowe Price Small-Cap Value Mutual Fund .... 229 4,597 4,533
Science & Technology Fund:
T. Rowe Price Science & Technology Mutual Fund 336 10,894 16,536
Equity Income Fund:
T. Rowe Price Equity Income Mutual Fund ...... 330 7,972 9,609
Spectrum Income Fund:
T. Rowe Price Spectrum Income Mutual Fund .... 236 2,716 2,637
Equity Index Trust:
T. Rowe Price Equity Index Trust ............. 194 5,409 6,956
Small Company Growth Fund:
Warburg Pincus Small Company Growth Portfolio
Mutual Fund .................................. 40 588 646
Western Digital Participant Loans ................ -- 4,692 4,692
-------- --------
$151,800 $159,099
======== ========
13
14
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, 1998 and 1999 and changes in net assets for the
years ended June 30, 1998 and 1999, allocated to the separate investment
funds are shown below.
Net assets available for Plan benefits by fund (in thousands):
June 30, 1998
-------------------------------------------------------------------------------------------
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 ................... $18,597 $ 7,651 $31,516 $ 25,372 $15,392 $3,252 $7,437
Cash and cash equivalents . 55 -- -- 8 -- -- --
------- ------- ------- -------- ------- ------ ------
18,652 7,651 31,516 25,380 15,392 3,252 7,437
Interfund receivable
(payable) ................ 7 6 10 (64) 13 3 4
------- ------- ------- -------- ------- ------ ------
Net assets available for
Plan benefits ............. $18,659 $ 7,657 $31,526 $ 25,316 $15,405 $3,255 $7,441
======= ======= ======= ======== ======= ====== ======
June 30, 1998 (continued)
-------------------------------------------------------------------------------------------
Science & Equity Spectrum Equity Small
Technology Income Income Index Company Participant Total
Fund Fund Fund Trust Growth Fund Loans Plan
---------- ------- -------- ------ ----------- ----------- --------
Assets
Investments, at current
value ................... $10,777 $11,232 $2,536 $4,199 $ 525 $ 5,147 $143,633
Cash and cash equivalents . -- -- -- -- -- -- 63
------- ------- ------ ------ ------ -------- --------
10,777 11,232 2,536 4,199 525 5,147 143,696
Interfund receivable
(payable) ................ 8 6 2 4 1 -- --
------- ------- ------ ------ ------ -------- --------
Net assets available for
Plan benefits ............. $10,785 $11,238 $2,538 $4,203 $ 526 $ 5,147 $143,696
======= ======= ====== ====== ====== ======== ========
14
15
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, 1999
-----------------------------------------------------------------------------------------
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 ................... $18,810 $11,994 $38,632 $ 26,773 $13,984 $3,297 $4,533
Cash and cash equivalents . -- -- -- 33 -- 5 5
------- ------- ------- -------- ------- ------ ------
18,810 11,994 38,632 26,806 13,984 3,302 4,538
Interfund receivable
(payable) ............... 10 13 18 (106) 16 5 4
------- ------- ------- -------- ------- ------ ------
Net assets available for
Plan benefits ............. $18,820 $12,007 $38,650 $ 26,700 $14,000 $3,307 $4,542
======= ======= ======= ======== ======= ====== ======
June 30, 1999 (continued)
------------------------------------------------------------------------------------------
Science & Equity Spectrum Equity Small
Technology Income Income Index Company Participant Total
Fund Fund Fund Trust Growth Fund Loans Plan
---------- ------ -------- ------ ----------- ----------- --------
Assets
Investments, at current
value ................. $16,536 $9,609 $2,637 $6,956 $ 646 $ 4,692 $159,099
Cash and cash equivalents . 37 33 -- -- -- -- 113
------- ------ ------ ------ ------ -------- --------
16,573 9,642 2,637 6,956 646 4,692 159,212
Interfund receivable
(payable) ............. 17 9 3 10 1 -- --
------- ------ ------ ------ ------ -------- --------
Net assets available for
Plan benefits ........... $16,590 $9,651 $2,640 $6,966 $ 647 $ 4,692 $159,212
======= ====== ====== ====== ====== ======== ========
15
16
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, 1998
-----------------------------------------------------------------------------------------
Western Inter-
Blue Stable Digital national Small-Cap
Puritan Chip Magellan Value Common Stock Value
Fund Fund Fund Fund Stock Fund Fund Fund
-------- ------ -------- -------- ---------- --------- ---------
Additions to net assets:
Participants' contributions ... $ 912 $ 953 $ 1,689 $ 2,821 $ 1,961 $ 511 $ 889
Employer's contributions ...... 250 185 376 561 467 109 179
Interest and dividend income .. 1,411 287 1,962 1,474 (3) 149 447
Realized/unrealized gain (loss) 1,582 1,231 5,147 -- (23,110) (60) 591
-------- ------ -------- -------- -------- ------- ------
Total additions ........... 4,155 2,656 9,174 4,856 (20,685) 709 2,106
-------- ------ -------- -------- -------- ------- ------
Deductions from net assets:
Participant distributions paid 706 180 2,160 1,877 1,174 147 380
Net forfeitures transferred
out (in) .................... (2) -- 2 (4) 2 (1) --
-------- ------ -------- -------- -------- ------- ------
Total deductions .......... 704 180 2,162 1,873 1,176 146 380
-------- ------ -------- -------- -------- ------- ------
Net interfund transfers ......... (1,151) 710 (6) (3,694) (279) (470) 425
-------- ------ -------- -------- -------- ------- ------
Increase (decrease) in net assets
available for Plan benefits 2,300 3,186 7,006 (711) (22,140) 93 2,151
Net assets available for Plan
benefits at:
Beginning of year ........... 16,359 4,471 24,520 26,027 37,545 3,162 5,290
-------- ------ -------- -------- -------- ------- ------
End of year ................. $ 18,659 $7,657 $ 31,526 $ 25,316 $ 15,405 $ 3,255 $7,441
======== ====== ======== ======== ======== ======= ======
Year ended June 30, 1998 (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 ... $ 1,346 $ 1,355 $ 368 $ 547 $116 $ -- $ 13,468
Employer's contributions ...... 311 255 67 100 20 -- 2,880
Interest and dividend income .. 838 898 119 -- -- 391 7,973
Realized/unrealized gain (loss) 469 786 39 641 46 -- (12,638)
-------- ------- ------ ------- ---- ------- ---------
Total additions ........... 2,964 3,294 593 1,288 182 391 11,683
-------- ------- ------ ------- ---- ------- ---------
Deductions from net assets:
Participant distributions paid 618 546 62 84 51 (561) 7,424
Net forfeitures transferred
out (in) .................... 1 2 2 (2) -- -- --
-------- ------- ------ ------- ---- ------- ---------
Total deductions .......... 619 548 64 82 51 (561) 7,424
-------- ------- ------ ------- ---- ------- ---------
Net interfund transfers ......... (722) 1,013 880 2,924 370 -- --
-------- ------- ------ ------- ---- ------- ---------
Increase (decrease) in net assets
available for Plan benefits 1,623 3,759 1,409 4,130 501 952 4,259
Net assets available for Plan
benefits at:
Beginning of year ........... 9,162 7,479 1,129 73 25 4,195 139,437
-------- ------- ------ ------- ---- ------- ---------
End of year ................. $ 10,785 $11,238 $2,538 $ 4,203 $526 $ 5,147 $ 143,696
======== ======= ====== ======= ==== ======= =========
16
17
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, 1999
---------------------------------------------------------------------------------------
Western Inter-
Blue Stable Digital national Small-Cap
Puritan Chip Magellan Value Common Stock Value
Fund Fund Fund Fund Stock Fund Fund Fund
-------- ------- -------- ------- ---------- -------- ---------
Additions to net assets:
Participants' contributions ... $ 1,077 $ 1,315 $ 1,707 $ 2,469 $ 1,884 $ 442 $ 628
Employer's contributions ...... 261 281 413 609 495 108 154
Interest and dividend income .. 1,945 362 2,911 1,533 (9) 118 391
Realized/unrealized gain (loss) (148) 1,643 5,618 -- (9,878) 73 (1,264)
-------- ------- -------- ------- -------- ------- -------
Total additions ........... 3,135 3,601 10,649 4,611 (7,508) 741 (91)
-------- ------- -------- ------- -------- ------- -------
Deductions from net assets:
Participant distributions paid 1,099 713 2,814 3,561 932 184 318
Net forfeitures transferred
out (in) .................... 2 -- 10 2 (9) (1) 2
-------- ------- -------- ------- -------- ------- -------
Total deductions .......... 1,101 713 2,824 3,563 923 183 320
-------- ------- -------- ------- -------- ------- -------
Net interfund transfers ......... (1,873) 1,462 (701) 336 7,026 (506) (2,488)
-------- ------- -------- ------- -------- ------- -------
Increase (decrease) in net assets
available for Plan benefits 161 4,350 7,124 1,384 (1,405) 52 (2,899)
Net assets available for Plan
benefits at:
Beginning of year ........... 18,659 7,657 31,526 25,316 15,405 3,255 7,441
-------- ------- -------- ------- -------- ------- -------
End of year ................. $ 18,820 $12,007 $ 38,650 $26,700 $ 14,000 $ 3,307 $ 4,542
======== ======= ======== ======= ======== ======= =======
Year ended June 30, 1999 (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 ... $ 1,388 $ 1,034 $ 422 $ 1,018 $117 $ -- $ 13,501
Employer's contributions ...... 330 246 88 222 27 -- 3,234
Interest and dividend income .. 314 778 206 (3) -- 421 8,967
Realized/unrealized gain (loss) 5,736 549 (142) 1,139 8 -- 3,334
-------- -------- ------- ------- ---- ------- --------
Total additions ........... 7,768 2,607 574 2,376 152 421 29,036
-------- -------- ------- ------- ---- ------- --------
Deductions from net assets:
Participant distributions paid 1,116 1,040 284 548 35 (876) 13,520
Net forfeitures transferred
out (in) .................... (1) -- -- (5) -- -- --
-------- -------- ------- ------- ---- ------- --------
Total deductions .......... 1,115 1,040 284 543 35 (876) 13,520
-------- -------- ------- ------- ---- ------- --------
Net interfund transfers ......... (848) (3,154) (188) 930 4 -- --
-------- -------- ------- ------- ---- ------- --------
Increase (decrease) in net assets
available for Plan benefits 5,805 (1,587) 102 2,763 121 (455) 15,516
Net assets available for Plan
benefits at:
Beginning of year ........... 10,785 11,238 2,538 4,203 526 5,147 143,696
-------- -------- ------- ------- ---- ------- --------
End of year ................. $ 16,590 $ 9,651 $ 2,640 $ 6,966 $647 $ 4,692 $159,212
======== ======== ======= ======= ==== ======= ========
17
18
SCHEDULE I
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
ITEM 27a -- SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JUNE 30, 1999
(IN THOUSANDS)
(a) Identity of Issuer, Borrower, Description of Investment, Current
Lessor or Similar Party Including Collateral or Par Value Cost Value
----------------------------- --------------------------------- -------- --------
Fidelity Retirement Services 910 shares Fidelity Puritan Mutual Fund $ 16,012 $ 18,810
Fidelity Retirement Services 220 shares Fidelity Blue Chip Mutual Fund 9,028 11,994
Fidelity Retirement Services 298 shares Fidelity Magellan Mutual Fund 26,926 38,632
*T. Rowe Price Trust 26,733 shares T. Rowe Price Stable
Company Value Mutual Fund 26,773 26,773
*T. Rowe Price Trust 211 shares T. Rowe Price International
Company Stock Mutual Fund 2,970 3,297
*T. Rowe Price Trust 229 shares T. Rowe Price Small-Cap
Company Value Mutual Fund 4,597 4,533
*T. Rowe Price Trust 336 shares T. Rowe Price Science
Company & Technology Mutual Fund 10,894 16,536
*T. Rowe Price Trust 330 shares T. Rowe Price Equity
Company Income Mutual Fund 7,972 9,609
*T. Rowe Price Trust 236 shares T. Rowe Price Spectrum
Company Income Mutual Fund 2,716 2,637
*T. Rowe Price 194 shares T. Rowe Price Equity Index Trust
Company Mutual Fund 5,409 6,956
Warburg Pincus Funds 40 shares of Warburg Pincus Small Company
Growth Portfolio Mutual Fund 588 646
*Western Digital Corporation 2,151 shares common stock; $.01 par value 33,223 13,984
Plan Participants 767 participant loans with annual interest
rates ranging from 7.0% to 11.9% 4,692 4,692
-------- --------
$151,800 $159,099
======== ========
* Parties in interest.
See accompanying independent auditors' report.
18
19
SCHEDULE II
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
ITEM 27b -- SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
YEAR ENDED JUNE 30, 1999
Original Amount Report
Identity and Amount Received Year Unpaid Issue Maturity Interest Amount Overdue
Obligator of Loan Principal Interest Balance Date Date Rate Principal Interest
- -------------------- -------- --------- -------- ------- -------- -------- -------- --------- --------
Loans in Default (in thousands):
Ladick, Andrew J. ........... $13 $ -- $ -- $12 7/25/94 12/15/04 8.25% $12 $6
Tinajero, Michelle S. ....... 2 -- -- 2 8/16/96 9/14/99 9.25% 2 --
Wollum, Glenn E. ............ 17 -- -- 16 10/23/95 11/1/99 10.00% 16 5
Ibale, Federico Y. .......... 10 -- -- 8 4/1/95 6/9/00 9.50% 8 2
Moore, Barbra L. ............ 12 -- -- 5 12/11/92 12/12/97 7.00% 5 1
Huang, Lipson S. ............ 16 -- -- 15 7/25/94 12/17/04 8.25% 15 8
Rachapaetayakom, Benjarong .. 3 -- -- 3 2/1/95 3/31/00 9.50% 3 1
Donrgan, Steven ............. 7 -- -- 3 12/11/92 12/15/97 7.00% 3 1
Vu, Chinh L. ................ 10 -- -- 9 10/11/95 8/21/00 10.00% 9 2
See accompanying independent auditors' report.
19
20
SCHEDULE III
WESTERN DIGITAL CORPORATION RETIREMENT SAVINGS AND PROFIT SHARING PLAN
ITEM 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JUNE 30, 1999
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 3,796 -- -- -- 3,796 3,796 --
Fidelity Retirement Fidelity Puritan Mutual
Services Fund 3,026 3,434 -- -- 3,026 3,434 408
Fidelity Retirement Fidelity Magellan Mutual
Services Fund 6,714 -- -- -- 6,714 6,714 --
Fidelity Retirement Fidelity Magellan Mutual
Services Fund 4,263 5,217 -- -- 4,263 5,217 954
Western Digital
Corporation Common Stock 13,162 -- -- -- 13,162 13,162 --
Western Digital
Corporation Common Stock 5,282 4,692 -- -- 5,282 4,692 (590)
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund 12,146 -- -- -- 12,146 12,146 --
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund 10,763 10,763 -- -- 10,763 10,763 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund 4,175 -- -- -- 4,175 4,175 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund 3,876 4,150 -- -- 3,876 4,150 274
Transactions in Excess of 5% of Current Value of the Plan's Assets:
None
See accompanying independent auditors' report.
20
21
WESTERN DIGITAL CORPORATION
RETIREMENT SAVINGS AND PROFIT SHARING PLAN
INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit Description Numbered Page
- ------- ----------- -------------
23. Consent of Independent Auditors................... 22
21