Western Digital 2015 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2015 Western Digital annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

‰Net income in 2015 was $1.5 billion, or $6.18 per diluted share, compared to $1.6 billion, or $6.68 per
diluted share, in 2014.
Summary Comparison of 2015, 2014 and 2013
The following table sets forth, for the periods presented, selected summary information from our consolidated
statements of income by dollars and percentage of net revenue (in millions, except percentages):
Years Ended
July 3, 2015 June 27, 2014 June 28, 2013
Net revenue ............................... $14,572 100.0% $15,130 100.0% $15,351 100.0%
Gross profit ................................ 4,221 29.0 4,360 28.8 4,363 28.4
Research and development .................... 1,646 11.3 1,661 11.0 1,572 10.2
Selling, general and administrative .............. 773 5.3 761 5.0 706 4.6
Charges related to arbitration award ............. 15 0.1 52 0.3 681 4.4
Employee termination, asset impairment and other
charges ................................. 176 1.2 95 0.6 138 0.9
Operating income ........................... 1,611 11.1 1,791 11.8 1,266 8.2
Other expense, net .......................... (34) (0.2) (39) (0.3) (44) (0.3)
Income before income taxes ................... 1,577 10.8 1,752 11.6 1,222 8.0
Income tax provision ......................... 112 0.8 135 0.9 242 1.6
Net income ................................ 1,465 10.1 1,617 10.7 980 6.4
The following table sets forth, for the periods presented, summary information regarding unit shipments, ASPs
and net revenues by geography and channel (in millions, except percentages and ASPs):
Years Ended
July 3,
2015
June 27,
2014
June 28,
2013
Net revenue ...................................... $14,572 $15,130 $15,351
ASPs (per unit)* .................................. $ 60 $ 58 $ 61
Revenues by Geography (%)
Americas .................................... 28% 25% 26%
Europe, Middle East and Africa ................... 22 21 20
Asia ........................................ 50 54 54
Revenues by Channel (%)
Original Equipment Manufacturers (“OEM”) ......... 64% 63% 63%
Distributors .................................. 23 24 24
Retailers .................................... 13 13 13
Unit Shipments*
PC ......................................... 136 157 162
Non-PC ..................................... 93 92 80
Total units shipped ................................ 229 249 242
* Based on sales of HDD units only.
Fiscal Year 2015 Compared to Fiscal Year 2014
Net Revenue. Net revenue was $14.6 billion for 2015, a decrease of 4% from 2014. The decrease was primarily
due to a 8% decline in total HDD shipments, partially offset by an increase in ASPs. Total HDD shipments in 2015
decreased to 229 million units as compared to 249 million units for the prior year primarily due to a decrease in client
PC demand. ASPs were $60 for 2015, an increase of $2 from 2014, primarily due to a change in product mix.
40