Western Digital 2006 Annual Report Download - page 36

Item 6. Selected Financial Data
Financial Highlights
This selected consolidated financial data should be read together with the Consolidated Financial Statements and
related Notes contained in this Annual Report on Form 10-K and in the subsequent reports filed with the SEC, as well as
the section of this Annual Report on Form 10-K, and the other reports entitled “Management’s Discussion and Analysis
of Financial Condition and Results of Operations.”
We have adjusted our consolidated financial statements for the years ended July 1, 2005 and July 2, 2004, as well as
the selected financial data for the years ended June 27, 2003 and June 28, 2002, to record additional non-cash stock-based
compensation expense, and related tax accruals, resulting from stock options granted during fiscal years 1998 to 2003
that were incorrectly accounted for under U.S. generally accepted accounting principles. For additional information on
the adjustments, see Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations
below and Part II, Item 8 — Note 2 of the Notes to Consolidated Financial Statements.
June 30,
2006
July 1,
2005
July 2,
2004
June 27,
2003
June 28,
2002
Years Ended
(as adjusted) (as adjusted) (as adjusted) (as adjusted)
(in millions, except per share and employee data)
Revenue, net ........................ $ 4,341 $ 3,639 $ 3,047 $ 2,719 $2,151
Gross margin ........................ $ 829 $ 590 $ 461 $ 443 $ 281
Income from continuing operations ........ $ 395 $ 196 $ 150 $ 179 $ 49
Income from continuing operations per
common share:
Basic ....................... $ 1.84 $ .94 $ .73 $ .91 $ .26
Diluted . . ................... $ 1.76 $ .90 $ .69 $ .87 $ .26
Working capital . . . ................... $ 633 $ 361 $ 270 $ 238 $ 37
Total assets.......................... $ 2,073 $ 1,589 $ 1,159 $ 866 $ 637
Long-term debt . . . ................... $ 19 $ 33 $ 53 $ — $ —
Shareholders’ equity.................... $ 1,157 $ 700 $ 487 $ 327 $ 103(1)
Number of employees .................. 24,750 23,161 17,376 11,508 9,550
(1) Reflects the cumulative effect of additional non-cash stock-based compensation expense for fiscal years 1998 to 2002
resulting in a $12.7 million increase to accumulated deficit and a corresponding adjustment to additional paid-in
capital.
For additional information on the quarterly impact of the aforementioned adjustments on fiscal 2006 and 2005, see
Part II, Item 8 — Note 12 of the Notes to Consolidated Financial Statements.
No cash dividends were paid for the years presented.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
Forward-Looking Statements
The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws. You
are urged to carefully review our description and examples of forward-looking statements included earlier in this Annual Report on
Form 10-K immediately prior to Part I, under the heading “Forward Looking Statements.” Forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. You
are urged to carefully review the disclosures we make concerning risks and other factors that may affect our business and operating
results, including those made in Item 1A of this Annual Report on Form 10-K, as well as our other reports filed with the SEC. You are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. We do not
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