Q2
FY11
Q3
FY11
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q2
9
FY14
Q1
FY14
163.3
156.2
164.0
167.5
159.5
165.8
176.3
119.1
146.4
156.7
139.1
135.8
135.9
133.3
140.2
142.2
31.3%
31.8%
30.9%
31.2%
31.2%
32.5%
32.8%
23.9%
30.2%
45.3%
44.9%
43.6%
44.3%
44.9%
44.7%
44.4%
51.1
49.7
50.7
52.2
49.8
53.8
57.8
28.5
44.2
71.0
62.5
59.2
60.2
59.9
62.6
63.1
$51
$47
$46
$47
$45
$44
$46
$69
$68
$65
$62
$62
$61
$60
$58
$60
$2,382
$2,396
$2,475
$2,252
$2,403
$2,694
$1,995
$3,035
$4,754
$4,035
$3,824
$3,764
$3,728
$3,804
$3,972
$1,472
$1,193
$1,059
$1,061
$1,050
$1,088
$1,141
$665
$535
$437
$475
$410
$469
$541
$648
$977
22.5%
18.2%
19.2%
18.2%
19.5%
20.1%
32.5%
32.2%
31.0%
29.6%
27.7%
28.2%
28.2%
28.6%
28.7%
R&D
$160
$154
$167
$169
$179
$188
$193
$191
$265
$406
$396
$378
$396
$402
$401
$421
SG&A
Other
64
-
61
27
59
-
66
-
63
10
77
32
71
18
85
210
122
48
178
80
179
26
162
41
185
63
180
689
132
13
229
13
Total Operating Expenses
$224
$242
$226
$235
$252
$297
$282
$486
$435
$664
$601
$581
$644
$1,271
$546
$663
Operating Income (Loss)
$441
$293
$211
$240
$158
$172
$259
$162
$542
$808
$592
$478
$417
$(221)
$542
$478
Net Income (Loss)
$400
$265
$197
$225
$146
$158
$239
$145
$483
$745
$519
$335
$391
$(265)
$495
$430
EPS
$1.71
$1.13
$0.84
$0.96
$0.62
$0.67
$1.01
$0.61
$1.96
$2.87
$2.06
$1.36
$1.60
$(1.12)
$2.05
$1.77
Diluted Shares Outstanding
234
235
234
235
236
237
237
237
246
260
252
246
245
236
242
243
$1,077
$1,511
$1,231
$1,097
$1,099
$1,085
$1,135
$1,196
$665
$535
$437
$475
$410
$469
$541
$648
25.2%
22.5%
18.2%
19.2%
18.2%
19.5%
20.1%
32.5%
35.5%
31.8%
30.5%
28.7%
29.2%
29.1%
29.8%
Net Income
$400
$292
$197
$225
$156
$193
$260
$358
$619
$872
$594
$513
$514
$477
$514
$532
EPS6
$1.71
$1.24
$0.84
$0.96
$0.66
$0.81
$1.10
$1.51
$2.52
$3.35
$2.36
$2.09
$2.10
$1.96
$2.12
$2.19
54%
50%
45%
47%
55%
53%
59%
64%
69%
63%
61%
60%
66%
64%
62%
Distributors
33%
29%
32%
33%
33%
29%
29%
25%
28%
21%
24%
24%
26%
23%
24%
24%
Retail
18%
17%
18%
22%
20%
16%
18%
16%
8%
10%
13%
15%
14%
11%
12%
14%
Americas
24%
25%
23%
22%
22%
20%
19%
22%
21%
27%
23%
27%
27%
28%
26%
25%
EMEA
24%
21%
23%
25%
24%
20%
22%
21%
18%
18%
18%
23%
22%
19%
20%
23%
Asia/ANZ
52%
54%
54%
53%
54%
60%
59%
57%
61%
55%
59%
50%
51%
53%
54%
52%
Top 10 Customers Revenue
51%
52%
50%
48%
49%
53%
49%
51%
53%
53%
44%
45%
45%
48%
48%
42%
Enterprise SSD Revenue
$-
$-
$-
$-
$-
$-
$-
$-
$11
$54
$70
$89
$92
$104
$106
$155
Notebook
17.072
16.802
16.582
17.385
16.227
16.867
19.622
9.814
18.067
32.773
25.887
21.300
21.547
23.989
22.912
22.662
Desktop
21.461
20.282
20.918
20.411
20.118
22.348
21.588
11.391
15.975
21.211
16.819
17.717
18.383
16.185
17.307
16.825
4.643
5.306
5.239
4.709
4.765
6.459
7.188
2.352
3.643
4.155
8.019
6.452
6.517
6.544
8.474
8.794
Branded
Enterprise
5.565
2.356
5.005
2.346
5.678
2.319
7.427
2.284
6.404
2.318
5.672
2.463
7.060
2.369
3.191
1.724
2.926
3.616
4.986
7.913
5.767
5.988
7.139
6.633
6.517
7.211
5.281
7.897
6.146
7.771
7.018
7.783
Total HDD
51.097
49.741
50.736
52.216
49.832
53.809
57.827
28.472
44.227
71.038
62.480
59.241
60.175
59.896
62.610
63.082
Average GB Shipped
463
453
512
581
578
608
634
578
581
668
708
804
805
797
811
874
EB Shipped
23.7
22.5
26.0
30.3
28.8
32.7
36.7
16.5
25.7
47.4
44.3
47.6
48.4
47.7
50.8
55.1
R4Q EB Shipped
76.5
85.1
94.1
102.5
107.7
117.8
128.5
114.6
111.5
126.3
133.9
165.1
187.8
188.0
194.5
202.0
Volume and HDD Share2
45%
$4,500
40%
$4,000
35%
$3,500
EPS Guidance Low
Note: Refer to "Non-GAAP Financial Measures" for information about non-GAAP financial measures included in this quarterly fact sheet.
WDC Quarterly Fact Sheet - Q2 FY14
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q4 '11
Q3 '11
($2.00)
Q2 '14
Q1 '14
Q4 '13
Q3 '13
0%
Q2 '13
$0
Q1 '13
0%
($1.00)
5%
Q4 '12
$500
Q3 '12
5%
Q2 '11
$1,000
$0.00
10%
Q1 '11
10%
15%
Q4 '10
$1,500
$1.00
Q3 '10
$2,000
Q2 '12
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
20%
Q1 '12
10
$2,500
15%
20
EPS Guidance High
$3.00
$2.00
Q4 '11
20%
30
Actual EPS
25%
$3,000
Q3 '11
25%
35%
Gross Margin
Q2 '11
40
HDD Share
30%
$4.00
$mils
Revenue
EMEA
21%
30%
60
50
40%
Q1 '11
HDD Share
$5,000
Q3 '10
Volume
70
50%
Americas
27%
Non-GAAP EPS Analysis
Revenue and Non-GAAP Gross Margin
80
Revenue by Geography
R4Q Ending
Q2 FY14
Asia/ANZ
52%
Q1 '12
Consumer Electronics
Q4 '10
Non-PC Units
OEM
63%
30.1%
49%
PC Units5
Retail
13%
Distributors
24%
OEM
Revenue by Geography
Revenue by Channel
R4Q Ending
Q2 FY14
Q2 '13
Gross Profit
Revenue By Channel
Q1 '11
Q4
FY12
$2,641
Gross Margin
Q4 '10
Q3
FY12
25.2%
Non-GAAP Results
Q3 '10
Q2
FY12
Revenue
Gross Profit
Units (in millions)
Q1
FY12
ASP (HDD)
Gross Margin
Page 1
Q4
FY11
Q1 '13
Units (HDD)
Q1
1
FY11
Q4 '12
TAM
HDD Share
Q4
FY10
Q3 '12
Q3
FY10
Q2 '12
Amounts in millions, except per share
amounts, ASP, percentages
Balance sheet, cash flows, earnings,
dividends and share repurchase amounts in
millions
Cash and Cash Equivalents
Debt
Q3
FY10
$2,826
425
Q4
FY10
$2,734
400
Q1
FY11
$2,858
375
Q2
FY11
$3,110
350
Q3
FY11
$3,230
325
Q4
FY11
$3,490
294
Q1
FY12
$3,675
263
Q2
FY12
$3,924
231
Q3
FY12
$3,377
2,743
Q4
FY12
$3,208
2,185
Q1
FY13
$3,537
2,128
Q2
FY13
$3,816
2,128
Q3
FY13
$4,060
2,013
Q4
FY13
$4,309
1,955
Q1
FY14
$4,869
2,398
Q2
FY14
$4,655
2,340
Net Cash and Cash Equivalents
$2,401
$2,334
$2,483
$2,760
$2,905
$3,196
$3,412
$3,693
$634
$1,023
$1,409
$1,688
$2,047
$2,354
$2,471
$2,315
Cash Flow From Operations
Free Cash Flow
Capital Expenditures
Depreciation and Amortization
EBITDA
$588
$411
$177
$128
$569
$363
$178
$185
$134
$427
$390
$190
$200
$150
$361
$505
$255
$250
$151
$391
$313
$138
$175
$151
$309
$447
$294
$153
$150
$322
$352
$218
$134
$158
$417
$378
$258
$120
$140
$302
$1,208
$1,069
$139
$188
$730
$1,128
$804
$324
$339
$1,147
$936
$554
$382
$313
$905
$772
$526
$246
$309
$787
$727
$539
$188
$309
$726
$684
$548
$136
$302
$81
$680
$544
$136
$312
$854
$727
$557
$170
$317
$795
Accounts Receivable, Net
Raw Materials
Work in Process
Finished Goods
$1,257
$115
254
138
$1,256
$159
255
146
$1,325
$155
266
140
$1,250
$141
274
153
$1,171
$151
260
163
$1,206
$172
263
142
$1,356
$170
275
200
$747
$191
185
90
$2,377
$329
667
286
$2,364
$245
552
413
$1,951
$237
559
508
$1,732
$193
581
430
$1,700
$191
583
423
$1,793
$167
575
446
$1,791
$208
579
457
$1,959
$201
581
511
Total Inventory
Property, Plant and Equipment, Net
Accounts Payable
$507
$1,756
$1,508
$560
$2,159
$1,507
$561
$2,245
$1,703
$568
$2,277
$1,628
$574
$2,249
$1,486
$577
$2,224
$1,545
$645
$2,209
$1,708
$466
$2,091
$883
$1,282
$4,171
$2,774
$1,210
$4,067
$2,773
$1,304
$4,027
$2,545
$1,204
$3,938
$2,185
$1,197
$3,803
$2,037
$1,188
$3,700
$1,990
$1,244
$3,638
$2,061
$1,293
$3,509
$2,106
Inventory
Days Sales Outstanding
Days Inventory Outstanding
Days Payables Outstanding
Cash Conversion Cycle
Inventory Turns
43
23
69
(3)
16
48
28
74
2
13
50
26
79
(3)
14
46
26
74
(2)
14
47
28
73
2
13
46
27
73
13
46
27
72
1
13
34
31
60
5
12
71
57
123
5
6
45
34
77
2
11
44
42
82
4
9
41
40
72
9
9
41
40
69
12
9
44
40
67
17
9
43
42
69
16
9
45
42
68
19
9
Dividends Paid
Shares Repurchased
Shares Repurchased
Remaining Amount Authorized
$$$466
$$$466
$1.8
$50
$416
$$$416
$$$416
$$$416
$$$416
$$$416
$$$416
$16.4
$604
$1,312
$5.2
$218
$2,594
$121
4.2
$146
$2,448
$5.2
$243
$2,205
$60
4.4
$235
$1,970
$59
2.3
$150
$1,820
$59
2.0
$150
$1,670
R4Q Economic Profit8
R4Q ROIC8
R4Q ROA8
$786
31.2%
21.2%
$826
30.2%
20.7%
$714
26.4%
18.1%
$484
21.1%
14.6%
$213
15.6%
10.9%
$92
13.2%
9.2%
$113
13.6%
9.5%
$15
11.9%
8.5%
$(83)
14.8%
10.5%
$542
20.4%
14.3%
$801
21.3%
14.9%
Worldwide Headcount3
61,803
62,500
62,817
$450
$
61,349
65,431
67,799
67,121
106,604
103,111
96,002
R&D and Capital Expenditures
Gross vs. Net Cash & Cash Equivalents
$6,000
Cash and Cash Equivalents
Net Cash and Cash Equivalents
62,991
$mils
$400
$5,000
87,565
$(59)
10.1%
7.0%
85,777
10% $1,000
$300
87,586
8%
Gross Margin*
27%-32%
Operating Expense*
10%-12%
Operating Income*
15%-22%
Tax
7%-10% of Income
Before Tax
Capital Expenditures*
5%-7%
Conversion Cycle
4-8 Days
*Percent of Revenue
$(109)
10.5%
7.2%
87,976
R4Q ROIC & R4Q Economic Profit8
35%
R4Q Economic Profit
R4Q ROIC
$mils
$1,000
$mils
30%
$800
25%
$800
$600
$250
6%
$3,000
20%
$600
$200
$400
$150
$2,000
$(176)
9.7%
6.7%
(Non-GAAP)
$1,200
Dividends Paid
Stock Repurchases
Free Cash Flow
$mils
$350
$4,000
93,820
$884
20.0%
14.2%
Free Cash Flow
12% $1,200
R&D
Capital Expenditures
R&D % of Revenue
Capex % of Revenue
$976
21.0%
14.7%
Business Model
15%
4%
$400
$200
2%
$200
$0
0%
$0
$100
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
Q1 '11
($400)
Note: Refer to "Non-GAAP Financial Measures" for information about non -GAAP financial measures included in this quarterly fact sheet.
Page 2
WDC Quarterly Fact Sheet - Q2 FY14
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
Q1 '11
($200)
Q4 '10
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
Q1 '11
Q4 '10
Q3 '10
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
Q1 '11
Q4 '10
Q3 '10
$0
Q3 '10
$0
10%
Q4 '10
$50
Q3 '10
$1,000
5%
0%
Non-GAAP Financial Measures
Free Cash Flow: Free cash flow is a non-GAAP financial measure defined as cash flows from operations less capital expenditures. We consider free cash flow to be useful as an indicator of our overall liquidity, as the
amount of free cash flow generated in any period is representative of cash that is available for strategic opportunities including, among others, investing in the Company's business, making strategic acquisitions,
strengthening the balance sheet, repaying debt, paying dividends and repurchasing stock. We also believe that free cash flow is one of several benchmarks used by investors for comparison of our liquidity with other
companies in our industry, although our measure of free cash flow may not be directly comparable to similar measures reported by other companies. Free cash flow should not be construed as an alternative to cash flows
from operations or other cash flow measurements determined in accordance with GAAP.
EBITDA: EBITDA is a non-GAAP financial measure defined as net income before interest, income tax expense, depreciation and amortization. We include information concerning EBITDA because we believe it is a
useful measure to evaluate our operating performance. As a measure of our operating performance, we believe EBITDA provides a measure of operating results unaffected by differences in capital structures, capital
investment cycles and ages of related assets among otherwise comparable companies. While EBITDA is a relevant and widely used measure of operating performance, it does not represent net income as defined by
GAAP and it should not be considered as an alternative to that measure in evaluating operating performance.
Non-GAAP Gross Margin and Non-GAAP Gross Profit: Non-GAAP gross margin is a non-GAAP measure defined as non-GAAP gross profit divided by revenue. Non-GAAP gross profit is a non-GAAP measure
defined as gross profit before any charges to cost of goods sold that are unusual, non-recurring, or may not be indicative of ongoing operations. Because we believe some charges may not be indicative of ongoing
operations, we believe that non-GAAP gross profit is a useful measure to investors as an alternative method for measuring our operating performance and comparing it against prior periods performance.
Non-GAAP Net Income and Non-GAAP EPS: Non-GAAP net income and non-GAAP EPS are non-GAAP measures defined as net income and EPS, respectively, before any charges that are unusual, nonrecurring, or may not be indicative of ongoing operations, or any tax impact related to those charges.
Q3
FY10
Q4
FY10
Q1
FY11
Q2
FY11
Q3
FY11
Q4
FY11
Q1
FY12
Q2
FY12
Q3
FY12
Q4
FY12
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
$588
(177)
$363
(185)
$390
(200)
$505
(250)
$313
(175)
$447
(153)
$352
(134)
$378
(120)
$1,208
(139)
$1,128
(324)
$936
(382)
$772
(246)
$727
(188)
$684
(136)
$680
(136)
$727
(170)
Free Cash Flow
$411
$178
$190
$255
$138
$294
$218
$258
$1,069
$804
$554
$526
$539
$548
$544
$557
Reconciliation of Net Income to EBITDA
Net Income (Loss)
Interest
Income Tax Expense
Depreciation and Amortization
$400
1
40
128
$265
1
27
134
$197
14
150
$225
1
14
151
$146
(1)
13
151
$158
2
12
150
$239
1
19
158
$145
2
15
140
$483
4
55
188
$745
7
56
339
$519
14
59
313
$335
10
133
309
$391
11
15
309
$(265)
9
35
302
$495
10
37
312
$430
11
37
317
EBITDA
$569
$427
$361
$391
$309
$322
$417
$302
$730
$1,147
$905
$787
$726
$81
$854
$795
Reconciliation of Gross Margin to Non-GAAP Gross Margin &
Gross Profit to Non-GAAP Gross Profit
Gross Profit
Acquisition-Related Fair Value Adjustments
Restucturing
Amortization of Intangibles
$665
-
$535
-
$437
-
$475
-
$410
-
$469
-
$541
-
$648
-
$977
91
9
$1,472
39
$1,193
38
$1,059
38
$1,061
38
$1,050
35
$1,088
11
36
$1,141
15
40
$665
$2,641
25.2%
25.2%
$535
$2,382
22.5%
22.5%
$437
$2,396
18.2%
18.2%
$475
$2,475
19.2%
19.2%
$410
$2,252
18.2%
18.2%
$469
$2,403
19.5%
19.5%
$541
$2,694
20.1%
20.1%
$648
$1,995
32.5%
32.5%
$1,077
$3,035
32.2%
35.5%
$1,511
$4,754
31.0%
31.8%
$1,231
$4,035
29.6%
30.5%
$1,097
$3,824
27.7%
28.7%
$1,099
$3,764
28.2%
29.2%
$1,085
$3,728
28.2%
29.1%
$1,135
$3,804
28.6%
29.8%
$1,196
$3,972
28.7%
30.1%
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
Net Income (Loss)
Acquisition-Related Expense
Litigation
Charges Related to Flooding, Net
Acquisition-Related Fair Value Adjustments
Amortization of Intangibles
Restructuring and other
Insurance Recovery
Tax Impact
$400
-
$265
27
-
$197
-
$225
-
$146
10
-
$158
10
25
-
$239
14
7
-
$145
14
199
-
$483
34
15
91
12
(16)
$745
51
80
(4)
$519
49
26
-
$335
49
41
88
$391
49
74
-
$(265)
7
681
46
8
-
$495
13
13
47
11
(65)
-
$430
25
51
26
-
Non-GAAP Net Income
EPS
Non-GAAP EPS
Diluted Shares Outstanding
Non-GAAP Diluted Shares Outstanding6
$400
$1.71
$1.71
234
234
$292
$1.13
$1.24
235
235
$197
$0.84
$0.84
234
234
$225
$0.96
$0.96
235
235
$156
$0.62
$0.66
236
236
$193
$0.67
$0.81
237
237
$260
$1.01
$1.10
237
237
$358
$0.61
$1.51
237
237
$619
$1.96
$2.52
246
246
$872
$2.87
$3.35
260
260
$594
$2.06
$2.36
252
252
$513
$1.36
$2.09
246
246
$514
$1.60
$2.10
245
245
$477
$(1.12)
$1.96
236
243
$514
$2.05
$2.12
242
242
$532
$1.77
$2.19
243
243
In millions, except gross margin and per share amounts
Reconciliation of Cash Flows from Operations to Free Cash Flow
Cash Flows from Operations
Capital Expenditures
Non-GAAP Gross Profit
Revenue
Gross Margin
Non-GAAP Gross Margin
Page 3
WDC Quarterly Fact Sheet - Q2 FY14
Non-GAAP Financial Measures
Economic Profit: Economic profit (EP) is a non-GAAP financial measure defined as net operating profit after taxes less the value of invested capital multiplied by the weighted average
cost of capital, where net operating profit after taxes is defined as income from operations minus tax expense and invested capital is defined as the sum of current debt, long-term debt
and equity. Management uses EP to evaluate business performance and allocate resources, and it is a component in determining managements incentive compensation. Management
believes EP provides additional perspective to investors about financial returns generated by the business and represents profit generated over and above the cost of capital used by the
business to generate that profit.
In millions
Reconciliation of Operating Income (Loss) to
R4Q Economic Profit
Operating Income (Loss)
Income Tax Provision
Q4
FY09
Q1
FY10
Q2
FY10
Q3
FY10
Q4
FY10
Q1
FY11
Q2
FY11
Q3
FY11
Q4
FY11
Q1
FY12
Q2
FY12
Q3
FY12
Q4
FY12
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
$209
(11)
$319
(29)
$473
(42)
$441
(40)
$293
(27)
$211
(14)
$240
(14)
$158
(13)
$172
(12)
$259
(19)
$162
(15)
$542
(55)
$808
(56)
$592
(59)
$478
(133)
$417
(15)
$(221)
(35)
$542
(37)
$478
(37)
198
290
431
972
(488)
401
1,320
(534)
266
1,388
(562)
197
1,295
(581)
226
1,090
(606)
145
834
(621)
160
728
(636)
240
771
(658)
147
692
(677)
487
1,034
(1,117)
752
1,626
(1,084)
533
1,919
(1,118)
345
2,117
(1,141)
402
2,032
(1,148)
(256)
1,024
(1,083)
505
996
(1,172)
441
1,092
(1,201)
$484
$786
$826
$714
$484
$213
$92
$113
$15
$542
$801
$976
$884
$(59)
$(176)
$(109)
Net Operating Profit After Taxes
R4Q Net Operating Profit After Taxes
Invested Capital x WACC
R4Q Economic Profit
$(83)
Formulas
Share = Units (HDD) / TAM
ASP = Revenue / Units (HDD)
Free Cash Flow = Cash Flow from Operations Capital Expenditures
EBITDA = Net Income (Loss) + Interest + Income Tax Expense + Depreciation and Amortization
Days Sales Outstanding (DSO) = Accounts Receivable / (Revenue / 91 days)
Days Inventory Outstanding (DIO) = Inventory / (Cost of Revenue / 91 days)
Days Payables Outstanding (DPO) = Accounts Payable / (Cost of Revenue / 91 days)
Cash Conversion Cycle = DSO + DIO DPO
Inventory Turns = 364 days / DIO
R4Q Economic Profit = R4Q Net Operating Profit After Taxes (Invested Capital x WACC)
Invested Capital = Short-term debt + Current portion of long-term debt + Long-term debt + Total shareholders' equity
WACC7 = 11%
R4Q ROIC = R4Q (Operating Income (Loss) + Interest Expense) / R4Q Average (Short-term debt + Current portion of long-term debt + Long-term debt + Total shareholders' equity)
R4Q ROA = R4Q Operating Income (Loss) / R4Q Average Total Assets
Footnotes
1.
2.
3.
4.
5.
6.
ASP, Revenue by Channel and Revenue by Geography exclude external sales of media/substrates.
Unit volume excludes WD TV Media Players without hard drives, WD Livewire, SSD and media.
Worldwide Headcount excludes temporary and contracted employees.
Consumer Electronics includes gaming.
PC includes shipments to distributors, second/third tier external HDD manufacturers, and white box manufacturers.
Q4 FY13 non-GAAP EPS is calculated using the same number of shares used for Q4 FY13 GAAP EPS plus 7 million dilutive
shares. Dilutive shares are not included in the Q4 FY13 GAAP EPS calculation as Q4 FY13 resulted in a net loss.
7. WACC of 11% is an internal assumption.
8. Q2 FY12 includes charges related to the flooding. Q4 FY13 includes charges related to the arbitration award.
9. TAM is preliminary and based on internal information.
Page 4
WDC Quarterly Fact Sheet - Q2 FY14
