Western Digital 2006 Annual Report Download - page 79

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Previously
Reported Adjustment
As
Adjusted
FISCAL YEAR ENDED JULY 1, 2005
2005 — First Quarter
Revenue, net ................................................. $ 823.6 $ 823.6
Gross margin ................................................. 113.1 113.1
Operating income ............................................. 31.2 (0.3) 30.9
Net income .................................................. 30.4 (0.3) 30.1
Basic earnings per share ......................................... $ 0.15 $ 0.15
Diluted earnings per share........................................ $ 0.14 $ 0.14
2005 — Second Quarter
Revenue, net ................................................. $ 954.9 $ 954.9
Gross margin ................................................. 150.2 (0.1) 150.1
Operating income ............................................. 56.6 (0.8) 55.8
Net income .................................................. 56.0 (0.8) 55.2
Basic earnings per share ......................................... $ 0.27 $ 0.27
Diluted earnings per share........................................ $ 0.26 $ 0.26
2005 — Third Quarter
Revenue, net ................................................. $ 919.9 $ 919.9
Gross margin ................................................. 167.0 167.0
Operating income ............................................. 70.7 (0.4) 70.3
Net income .................................................. 70.8 (0.4) 70.4
Basic earnings per share ......................................... $ 0.34 $ 0.34
Diluted earnings per share........................................ $ 0.32 $ 0.32
2005 — Fourth Quarter(2)
Revenue, net ................................................. $ 940.4 $ 940.4
Gross margin ................................................. 159.5 (0.1) 159.4
Operating income ............................................. 38.4 (0.7) 37.7
Net income .................................................. 41.2 (0.9) 40.3
Basic earnings per share ......................................... $ 0.19 $ 0.19
Diluted earnings per share........................................ $ 0.19 (0.01) $ 0.18
(1) The fourth quarter of 2006 included a $13.1 million benefit to gross margin related to the resolution of certain items
that impacted amounts previously recorded as costs primarily in earlier quarters of 2006, and a $22.3 million benefit
to income taxes from the change in valuation allowance for deferred income taxes.
(2) The fourth quarter of 2005 included a $19.0 million charge for settlement of litigation, which was recorded in
selling, general and administrative expense.
73
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)