Exhibit 12.1
Western Digital Corporation
Computation of Ratio of Earnings to Fixed Charges
| Fiscal Year | Three Months Ended September 30, 2016 | |||||||||||||||||||||||
| 2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||||||
| in millions | ||||||||||||||||||||||||
Computation of Earnings: | ||||||||||||||||||||||||
Income (loss) before provision for income taxes | 1,757 | 1,222 | 1,752 | 1,577 | 153 | (271 | ) | |||||||||||||||||
Fixed charges | 47 | 75 | 75 | 69 | 285 | 241 | ||||||||||||||||||
Undistributed equity in income from 50%-or-less-owned affiliates | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||
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Adjusted Earnings | $ | 1,804 | $ | 1,297 | $ | 1,827 | $ | 1,646 | $ | 438 | $ | (31 | ) | |||||||||||
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Computation of Fixed Charges: | ||||||||||||||||||||||||
Interest Expense | 33 | 54 | 56 | 49 | 266 | 236 | ||||||||||||||||||
Estimated interest portion of operating lease expense (A) | 14 | 21 | 19 | 20 | 19 | 5 | ||||||||||||||||||
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Fixed charges | 47 | 75 | 75 | 69 | 285 | 241 | ||||||||||||||||||
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Ratio of earnings to fixed charges | 38.4 | 17.3 | 24.4 | 23.9 | 1.5 | (B | ) | |||||||||||||||||
(A) Interest is estimated at 33% of rental charges, which considers industry benchmarks and assumption of average debt service cost over the assumed life of the related property.
(B) Due to our loss in the quarter ended September 30, 2016, the ratio was less than 1:1. The deficiency in earnings necessary to achieve a 1:1 ratio was $272 million.