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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following table illustrates the computation of basic and diluted income per common share (in millions, except
per share data):
Year Ended
July 1, July 2, June 27,
2005 2004 2003
(in millions,
except per share amounts)
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $198.4 $151.3 $182.1
Weighted average shares outstanding:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 207.6 205.7 195.6
Employee stock options and other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.3 11.0 9.9
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 216.9 216.7 205.5
Income per share:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ .96 $ .74 $ .93
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ .91 $ .70 $ .89
For the years ended July 1, 2005, July 2, 2004 and June 27, 2003, 6.0 million, 6.0 million and 9.0 million shares,
respectively, relating to the possible exercise of outstanding stock options were not included in the computation of diluted
income per share. The effects of these items were not included in the computation of diluted income per share as their
effect would have been anti-dilutive.
Stock-Based Compensation
Statement of Financial Accounting Standards No. 123, ""Accounting for Stock-Based Compensation''
(""SFAS 123''), establishes the financial accounting and reporting standards for stock-based compensation plans. As
permitted by SFAS 123, the Company elected to continue accounting for stock-based employee compensation plans
(including shares issued under the Company's stock option plans and Employee Stock Purchase Plan (""ESPP''),
collectively called ""Options'') in accordance with Accounting Principles Board Opinion No. 25, ""Accounting for Stock
Issued to Employees'' and its related interpretations (""APB Opinion No. 25''), and to follow the pro forma net income,
pro forma income per share, and stock-based compensation plan disclosure requirements set forth in SFAS 123. The
following table sets forth the computation of basic and diluted earnings per share for each of the past three fiscal years and
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