Western Digital (WDC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

	Jun. 28, 2013		Jun. 29, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	4,309	$	3,208
Accounts receivable, net		1,793		2,364
Inventories		1,188		1,210
Other		308		359
Total current assets		7,598		7,141
Property, plant and equipment, net		3,700		4,067
Goodwill		1,954		1,975
Other intangible assets, net		605		799
Other assets		179		224
Total assets	$	14,036	$	14,206
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,990	$	2,773
Accrued arbitration award		706		25
Accrued expenses		480		457
Accrued compensation		453		376
Accrued warranty		114		171
Current portion of long-term debt		230		230
Total current liabilities		3,973		4,032
Long-term debt		1,725		1,955
Other liabilities		445		550
Total liabilities		6,143		6,537
Total shareholders’ equity		7,893		7,669
Total liabilities and shareholders’ equity	$	14,036	$	14,206

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

(unaudited)

	Three Months Ended						Years Ended
	Jun. 28, 2013			Jun. 29, 2012			Jun. 28, 2013			Jun. 29, 2012
Revenue, net	$	3,728		$	4,754		$	15,351		$	12,478
Cost of revenue		2,678			3,282			10,988			8,840
Gross profit		1,050			1,472			4,363			3,638
Operating expenses:
Research and development		402			406			1,572			1,055
Selling, general and administrative		180			178			706			518
Charge related to arbitration award		681			—			681			—
Employee termination benefits and other charges		8			80			138			80
Charges related to flooding, net		—			—			—			214
Total operating expenses		1,271			664			3,097			1,867
Operating income (loss)		(221	)		808			1,266			1,771
Net interest and other		(9	)		(7	)		(44	)		(14	)
Income (loss) before income taxes		(230	)		801			1,222			1,757
Income tax provision		35			56			242			145
Net income (loss)	$	(265	)	$	745		$	980		$	1,612
Income (loss) per common share:
Basic	$	(1.12	)	$	2.93		$	4.07		$	6.69
Diluted	$	(1.12	)	$	2.87		$	3.98		$	6.58
Weighted average shares outstanding:
Basic		236			254			241			241
Diluted		236			260			246			245

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

	Three Months Ended						Year Ended
	Jun. 28, 2013			Jun. 29, 2012			Jun. 28, 2013			Jun. 29, 2012
Cash flows from operating activities
Net income (loss)	$	(265	)	$	745		$	980		$	1,612
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		302			339			1,233			825
Stock-based compensation		30			31			137			92
Deferred income taxes		(24	)		(8	)		35			34
Non-cash portion of employee termination benefits and other charges		3			61			19			61
Non-cash portion of charges related to flooding		—			—			—			119
Changes in operating assets and liabilities, net		638			(40	)		715			324
Net cash provided by operating activities		684			1,128			3,119			3,067
Cash flows from investing activities
Purchases of property, plant and equipment		(136	)		(324	)		(952	)		(717	)
Acquisitions, net		—			15			(1	)		(3,526	)
Purchase of investments		—			—			(17	)		—
Proceeds from sale of equipment		—			76			—			76
Net cash used in investing activities		(136	)		(233	)		(970	)		(4,167	)
Cash flows from financing activities
Employee stock plans, net		53			93			205			141
Repurchases of common stock		(235	)		(604	)		(842	)		(604	)
Dividends to shareholders		(60	)		—			(181	)		—
Repayment of debt		(57	)		(558	)		(230	)		(908	)
Proceeds from debt, net of issuance costs		—			—			—			2,775
Repayment of assumed debt		—			—			—			(585	)
Net cash provided by (used in) financing activities		(299	)		(1,069	)		(1,048	)		819
Effect of exchange rate changes on cash		—			5			—			(1	)
Net increase (decrease) in cash and cash equivalents		249			(169	)		1,101			(282	)
Cash and cash equivalents, beginning of period		4,060			3,377			3,208			3,490
Cash and cash equivalents, end of period	$	4,309		$	3,208		$	4,309		$	3,208