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WESTERN DIGITAL
2008 ANNUAL REPORT AND FORM 10-K

Table of contents

  • Page 1
    WESTERN DIGITAL 2008 ANNUAL REPORT AND FORM 10-K

  • Page 2
    ... in the traditional computing markets. WD was founded in 1970. Our hard drives are marketed to leading systems manufacturers, selected resellers and retailers under the Western Digital and WD brand names. Product, financial, and investor information is available on the company's Web site at www...

  • Page 3
    ... 2008 was an outstanding year for Western Digital, demonstrating the effectiveness of our strategy and of our enhanced business model. Customer satisfaction with WD's broad product line, high quality and reliability, service excellence and overall value proposition continues to drive our business...

  • Page 4
    ... to be in the notebook PC and branded product markets, areas of continued emphasis for WD. While maintaining our focus on the high-volume desktop PC market, we remain committed to our multi-year diversification effort. As a result, hard drive revenues from non-desktop markets expanded to 56 percent...

  • Page 5
    ... notebook and 3.5-inch desktop PC markets; • Utilizing our GreenPower™ technology, we launched a family of hard drives specifically designed to consume substantially less power than standard drives; • We began shipping our new line of WD Scorpio® Black™ 7200 RPM 2.5-inch SATA hard drives...

  • Page 6

  • Page 7
    ... Forest Drive Lake Forest, California (Address of principal executive offices) 92630 (Zip Code) Registrant's telephone number, including area code: (949) 672-7000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock...

  • Page 8
    ... corporation that operates as the parent company of our hard drive business, Western Digital Technologies, Inc., which was formed in 1970. Our principal executive offices are located at 20511 Lake Forest Drive, Lake Forest, California 92630. Our telephone number is (949) 672-7000 and our web site is...

  • Page 9
    ...media required for the hard drives we manufacture ; • our beliefs regarding the adequacy of our facilities and fabrication capacity and our expansion plans for our head wafer fabrication facilities in Fremont, California; • our share repurchase plans; • our long-term product component purchase...

  • Page 10
    ... to original equipment manufacturers ("OEMs") and original design manufacturers ("ODMs") for use in computer systems, subsystems or CE devices, and to distributors, resellers and retailers. Our hard drives are used in desktop computers, notebook computers, and enterprise applications such as servers...

  • Page 11
    ... in homes, businesses and multi-user networks. Desktop computers use software applications for word processing, spreadsheet, desktop publishing, database management, multimedia, entertainment and for other needs. Hard drives store desktop computer operating system and application software, as well...

  • Page 12
    ... continuing development of software applications to manage multimedia content; and • the increasing use of broadband Internet, including content downloaded from the Internet onto notebook hard drives. We expect the mobile PC market to continue to grow faster than the desktop or enterprise markets...

  • Page 13
    ... WD Elements, My Passport, My Book, My DVR Expander and GreenPower. These hard drives service the desktop, mobile, enterprise, CE and branded products markets, and can be found in products including desktop computers, notebook computers, enterprise storage, workstations, video surveillance equipment...

  • Page 14
    ... video security. The WD VelociRaptorTM also has been popular for use in the high-end desktop PC market for applications including gaming and advanced CAD/CAM ("computer aided design/computer-aided manufacturing") systems. Consumer Electronics Products We offer a line of hard drives under the WD» AV...

  • Page 15
    ...the WD brand for retail store sales. Research and Development We devote substantial resources to development of new products and improvement of existing products. We focus our engineering efforts on coordinating our product design and manufacturing processes to bring our products to market in a cost...

  • Page 16
    ... capital equipment of head and media components, in order to secure our competitive position and cost structure. The WD» product line generally leverages a common platform for various products within product families with different capacities to serve differing market needs. This platform strategy...

  • Page 17
    ...production of each new generation of high quality and reliable hard drives, requiring access to flexible, high-capacity, high-quality manufacturing capabilities. Many of our OEM customers utilize just-in-time inventory management processes or supply chain business models that combine "build-to-order...

  • Page 18
    ...providing end-users with information and support through our web site. Competition We compete primarily with manufacturers of hard drives for use in desktop, notebook, enterprise, CE and external storage products. Our competitors in the hard drive market include ExcelStor Technology, Fujitsu Limited...

  • Page 19
    ...Form 10-K. Service and Warranty We generally warrant our newly manufactured hard drives against defects in materials and workmanship from one to five years from the date of manufacture depending on the type of product. Our warranty obligation is generally limited to repair or replacement of the hard...

  • Page 20
    ... of risks related to our component supplies, see Item 1A of this Annual Report on Form 10-K. Backlog Historically, a substantial portion of our orders have been for shipments of hard drives within 30 to 60 days of the placement of the order. We generally negotiate pricing, order lead times, product...

  • Page 21
    ... 27, 2008, followed by a brief account of their business experience during the past five years. Executive officers are normally appointed annually by the Board of Directors at a meeting of the directors immediately following the Annual Meeting of Stockholders. There are no family relationships among...

  • Page 22
    ... electronics will continue to converge, and hard drives will be found in many CE products other than computers. In addition, we expect that the consumer market for multi-media applications, including audio-video products, incorporating high capacity, and handheld consumer storage will continue...

  • Page 23
    ... part because our operations are largely vertically integrated. If we fail to successfully expand into new hard drive markets with products that we do not currently offer, we may lose business to our competitors who offer these products. If we fail to successfully manage our new product development...

  • Page 24
    ...of our branded products, our operating results could suffer. We sell our branded products directly to a select group of major retailers, for example, computer superstores and CE stores, and authorize sales through distributors to other retailers and online resellers. Our current retail customer base...

  • Page 25
    ... a significant change in consumer buying preference from white box to branded PCs, or we experience significant price declines due to oversupply in the distribution channel, then our operating results would be adversely affected. The hard drive industry is highly competitive and can be characterized...

  • Page 26
    ... by the limited number of high volume OEMs, which continue to consolidate their share of the PC and CE markets. If product life cycles lengthen, we may have a significantly longer period to wait before we have an opportunity to qualify a new product with a customer, which could harm our competitive...

  • Page 27
    ... our major component suppliers, our supply of critical components may be at risk and our profitability could suffer. We make most of our own heads and media for some of our product families; however, we do not manufacture many of the component parts used in our hard drives. As a result, the success...

  • Page 28
    ... asset utilization risks to our business associated with our strategy to vertically integrate our operations. Our vertical integration of head and media manufacturing resulted in a fundamental change in our operating structure, as we now manufacture heads and media for use in many of the hard drives...

  • Page 29
    ... to operate at high levels of utilization to drive competitive costs and the need for assured supply of components that we do not manufacture ourselves. In addition, we may incur additional risks, including: • failure to continue to leverage the integration of our media technology with our head...

  • Page 30
    ... our manufacture of PATA products through their end of life and our ramp of SATA products and features. If we fail to successfully manage the transition from parallel interfaces to serial interfaces, our operating results may suffer. Our high-volume hard drive and media manufacturing facilities, and...

  • Page 31
    ... we have previously discussed in public statements, our business plan presently contemplates that we will design and manufacture a substantial portion of the heads and media required for the hard drives we manufacture. We fabricate wafers in our Fremont, California facility, and the wafers are then...

  • Page 32
    ...to timely and efficiently deliver these products. We are vulnerable to system failures, which could harm our business. We are heavily dependent on our technology infrastructure, among other functions, to operate our factories, sell our products, fulfill orders, manage inventory and bill, collect and...

  • Page 33
    ... our operating results. The Thai Baht is a free floating currency while the Malaysian Ringgit exchange rate policy is one of a managed float. We have attempted to manage the impact of foreign currency exchange rate changes by, among other things, entering into short-term, forward contracts. However...

  • Page 34
    ... increase our product prices to alleviate this increased credit risk. Additionally, as we attempt to expand our OEM and distribution channel sales into emerging economies such as Brazil, Russia, India and China, the customers in these regions may have relatively short operating histories, making it...

  • Page 35
    ... volume and profitability of sales of our existing products and increase the risk of inventory obsolescence; • new products introduced by us or our competitors; • periods of severe pricing pressures due to oversupply or price erosion resulting from competitive pressures or industry consolidation...

  • Page 36
    ...lease office space in various other locations throughout the world primarily for research and development and sales and technical support. We own manufacturing facilities in Kuala Lumpur, Malaysia, of approximately 575,000 square feet, which we use for assembly of hard drives, printed circuit boards...

  • Page 37
    ... provides information about repurchases by us of our common stock during the quarter ended June 27, 2008: Total Number of Shares Purchased Total Number of Shares Purchased as Part of Publicly Announced Program(1) Maximum Value of Shares that May Yet be Purchased Under the Program(1) Average Price...

  • Page 38
    ... Graph The following graph compares the cumulative total stockholder return of our common stock with the cumulative total return of the S&P 500 Index and the Dow Jones US Technology Hardware & Equipment Index for the five years ended June 27, 2008. The graph assumes that $100 was invested in our...

  • Page 39
    ... to original equipment manufacturers ("OEMs") and original design manufacturers ("ODMs") for use in computer systems, subsystems or CE devices, and to distributors, resellers and retailers. Our hard drives are used in desktop computers, notebook computers, and enterprise applications such as servers...

  • Page 40
    ... as USB 2.0, external SATA ("eSATA"), FireWireTM and Ethernet network connections. In addition, we recently announced a family of hard drives specifically designed to consume substantially less power than standard drives. We manufacture hard drives and head stack assemblies ("HSAs") in Malaysia and...

  • Page 41
    ...by Geography(%)* Americas ...Europe, Middle East and Africa ...Asia ...Revenues by Channel(%)* OEM ...Distributors ...Branded products ...Revenues by Product(%)* Non-desktop sources ...Desktop computers ...* Based on sales of hard drives only Fiscal Year 2008 Compared to Fiscal Year 2007 $8,074 133...

  • Page 42
    OEMs and an increase in sales of branded products due to the growing worldwide acceptance of our My Passport» and My Book» external digital storage appliances. Gross Margin. Gross margin for 2008 was $1.7 billion, an increase of $839 million, or 93% over the prior year. Gross margin percentage ...

  • Page 43
    ...and a more competitive pricing environment in the notebook, desktop, and consumer electronics markets. Changes in revenue by geography generally reflect overall market demand fluctuations for hard drives. Changes in revenue by channel are a result of increases in sales of branded products due to the...

  • Page 44
    ... cycle, which measures how quickly we can convert our products into cash through sales. The following table summarizes the cash conversion cycle for the three years ended 2008: June 27, 2008 Years Ended June 29, June 30, 2007 2006 Days sales outstanding ...Days in inventory ...Days payables...

  • Page 45
    ... of common stock options under employee plans, offset by $54 million used in repurchases of our common stock and $23 million used for repayments of long-term debt. Off-Balance Sheet Arrangements Other than facility and equipment lease commitments incurred in the normal course of business and certain...

  • Page 46
    Long-Term Debt On February 11, 2008, Western Digital Technologies, Inc. ("WDTI"), a wholly owned subsidiary of the Company, entered into a five-year Credit Agreement (the "Credit Facility") with JPMorgan Chase Bank, N.A., as administrative agent, Citigroup Global Markets Inc., as syndication agent, ...

  • Page 47
    ... the Credit Facility are guaranteed by the Company and WDTI's wholly-owned subsidiary, WD Media. Purchase Orders In the normal course of business, we enter into purchase orders with suppliers for the purchase of hard drive components used to manufacture our products. These purchase orders generally...

  • Page 48
    ...revenue is recognized. We generally warrant our products for periods of one to five years. Our warranty provision considers estimated product failure rates and trends, estimated repair or replacement costs and estimated costs for customer compensatory claims related to product quality issues, if any...

  • Page 49
    ...stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. The fair values of all stock options granted are estimated using a binomial model, and the fair values of all Employee Stock Purchase Plan ("ESPP") shares...

  • Page 50
    ... and product costs denominated in foreign currencies. The purpose of entering into these hedge transactions is to minimize the impact of foreign currency fluctuations on our results of operations. The contract maturity dates do not exceed 12 months. We do not purchase short-term forward exchange...

  • Page 51
    ... interest on the Credit Facility would increase interest expense by approximately $5 million annually. Credit Market Risk Our long-term investments consist of auction-rate securities totaling $28 million as of June 27, 2008. The recent negative conditions in the global credit markets have prevented...

  • Page 52
    ... and Financial Statement Schedule Page Consolidated Financial Statements: Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets - June 27, 2008 and June 29, 2007 ...Consolidated Statements of Income - Three Years Ended June 27, 2008 ...Consolidated Statements of...

  • Page 53
    ... respects, the information set forth therein. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Western Digital Corporation and subsidiaries' internal control over financial reporting as of June 27, 2008, based on criteria...

  • Page 54
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors Western Digital Corporation: We have audited Western Digital Corporation and subsidiaries' internal control over financial reporting as of June 27, 2008, based on criteria established in Internal Control - Integrated Framework...

  • Page 55
    WESTERN DIGITAL CORPORATION CONSOLIDATED BALANCE SHEETS (in millions) June 27, 2008 June 29, 2007 ASSETS Current assets: Cash and cash equivalents ...Short-term investments ...Accounts receivable, net ...Inventories... Accounts payable ...Accrued expenses ...Accrued warranty ...Current portion of long...

  • Page 56
    WESTERN DIGITAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) June 27, 2008 Years Ended June 29, June 30, 2007 2006 Revenue, net ...Cost of revenue ...Gross margin ...Operating expenses: Research and development ...Selling, general and administrative ......

  • Page 57
    ... 27, 2008 Years Ended June 29, 2007 June 30, 2006 Cash flows from operating activities Net income...Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization ...Acquired in-process research and development ...Stock-based compensation ...Deferred income...

  • Page 58
    ...Employee stock plans ...Deferred compensation ...Stock based compensation ...Tax benefit from employee stock plans ...Repurchase of common stock ...Net income ...Unrealized loss on foreign currency contracts ... $867 (11) $856 Balance at June 27, 2008 ... The accompanying notes are an integral part...

  • Page 59
    ... "Company" or "Western Digital" or "WD") designs, develops, manufactures and sells hard drives. A hard drive is a device that stores data on one or more rotating magnetic disks to allow fast access to data. The Company's hard drives are used in desktop computers, notebook computers, external storage...

  • Page 60
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Concentration of Credit Risk The Company designs, develops, manufactures and markets hard drives to computer manufacturers, resellers and retailers throughout the world. The Company performs ongoing credit ...

  • Page 61
    ... is recognized. The Company generally warrants its products for periods of one to five years. The warranty provision considers estimated product failure rates and trends, estimated repair or replacement costs and estimated costs for customer compensatory claims related to product quality issues, if...

  • Page 62
    ... stock options, rights to purchase shares of common stock under our employee stock purchase plan and restricted stock and stock unit awards. The following table illustrates the computation of basic and diluted income per common share (in millions, except per share data): June 27, 2008 Years Ended...

  • Page 63
    ..., liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The contracts have maturity dates that do not exceed 12 months. The Company does not purchase short-term forward exchange contracts for trading purposes. The Company applies the provisions of...

  • Page 64
    ... purchase and determines what information to disclose to enable users of financial statements to evaluate the nature and financial effects of the business combination. SFAS 141(R) is effective for financial statements issued for fiscal years beginning after December 15, 2008, which for the Company...

  • Page 65
    ... 11, 2008, Western Digital Technologies, Inc. ("WDTI"), a wholly owned subsidiary of the Company, entered into a five-year Credit Agreement (the "Credit Facility") with JPMorgan Chase Bank, N.A., as administrative agent, Citigroup Global Markets Inc., as syndication agent, JP Morgan Securities Inc...

  • Page 66
    ... the Credit Facility are guaranteed by the Company and WDTI's wholly-owned subsidiary, WD Media. Note 4. Commitments and Contingencies Lease Commitments The Company leases certain facilities and equipment under long-term, non-cancelable operating and capital leases. The Company's operating leases...

  • Page 67
    ... 27, 2008 and $17 million at June 29, 2007. Long-term Purchase Agreements The Company has entered into long-term purchase agreements with various component suppliers. The commitments depend on specific products ordered and may be subject to minimum quality requirements and future price negotiations...

  • Page 68
    ... Texas LLC filed a complaint against the Company and several other companies, including other disk drive manufacturers, for patent infringement in the Eastern District of Texas alleging infringement of U.S. Patent No. 6,805,891. The Company has entered a Settlement Agreement dated August 13, 2008...

  • Page 69
    ... States include manufacturing facilities in Malaysia and Thailand as well as sales offices throughout Canada, Europe, Asia, Japan, India and the Middle East. The following table summarizes the Company's operations by geographic area for the three years ended June 27, 2008 (in millions): 2008 2007...

  • Page 70
    ... the Western Digital Corporation 2005 Employee Stock Purchase Plan ("ESPP") whereby eligible employees may authorize payroll deductions of up to 10% of their eligible compensation to purchase shares of the Company's common stock at 95% of the fair market value of common stock on either the date of...

  • Page 71
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Stock Options The following table summarizes activity under the Stock Plans (in millions, except per share amounts): Number of Shares Weighted Average Exercise Price Per Share Remaining Contractual Life (in years) ...

  • Page 72
    ...employee termination, and expected stock price volatility within the binomial model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of stock options granted during the three years ended...

  • Page 73
    ...: 2008 ESPP 2007 2006 Option life (in years) ...Risk-free interest rate ...Stock price volatility ...Dividend yield...Fair value ...Stock Repurchase Program ... 1.24 1.22 1.21 3.40% 4.51% 4.45% 0.38 0.40 0.42 - - - $6.47 $3.83 $3.85 As announced on November 21, 2005, the Company's Board of...

  • Page 74
    ... as follows (in millions): 2008 2007 Deferred tax assets: Sales related reserves and accrued expenses not currently deductible ...Accrued compensation and benefits not currently deductible ...Domestic net operating loss ("NOL") carryforward ...Business credit carryforward ...Other ...Deferred tax...

  • Page 75
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) based compensation resulted in a $70 million tax benefit during the year ended June 27, 2008. In accordance with the provisions of SFAS 123(R), shareholders equity was increased by $89 million during 2008 for these ...

  • Page 76
    ... June 27, 2008 are $75 million of tax benefits that, if recognized, would affect the effective tax rate. The Company files U.S. federal, U.S. state, and foreign tax returns. For federal tax returns, the Company is subject to examination for fiscal years 2004 through 2008. For state returns, with few...

  • Page 77
    ... billion, consisting of cash paid for outstanding shares, transaction fees, severance and other employee-related equity payments. The application of purchase accounting under SFAS No. 141, "Business Combinations" ("SFAS 141"), requires that the total purchase price be allocated to the fair value of...

  • Page 78
    ...-Average Useful Life (in years) Land leases ...Buildings and improvements ...Equipment ...Total property and equipment ... $ 17 224 416 $657 36.8 17.8 5.0 10.3 Inventories Total inventories acquired included $11 million and $39 million of finished goods and work-in-process, respectively. Finished...

  • Page 79
    ...Existing technology relates to Komag's media and substrate products that have reached technological feasibility as well as a combination of Komag's processes, patents, and trade secrets developed through years of experience in the design and production of its products. Existing technology was valued...

  • Page 80
    ...are payable in cash according to their original vesting schedules. All shares of restricted stock and options remain subject to their original terms, including the terms and conditions of Komag's Amended and Restated 2002 Qualified Stock Plan, the applicable restricted stock and option agreement and...

  • Page 81
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Year Ended June 27, 2008 Year Ended June 29, 2007 Revenue ...Net income ...Basic net income per share ...Diluted net income per share ...Note 12. Other Intangible Assets ... $8,183 $ 850 $ 3.85 $ 3.76 $6,060 $ ...

  • Page 82
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (1) The first quarter of 2008 included $60 million for taxes related to the license of intellectual property to subsidiaries and $49 million for acquired in-process research and development. The fourth quarter of ...

  • Page 83
    WESTERN DIGITAL CORPORATION SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Three years ended June 27, 2008 (in millions) Allowance for Doubtful Accounts Balance at July 1, 2005 ...Charges to operations ...Deductions ...Balance at June 30, 2006 ...Charges to operations ...Deductions ...

  • Page 84
    ... during the fourth fiscal quarter ended June 27, 2008 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Inherent Limitations of Effectiveness of Controls Our management, including our Chief Executive Officer and its Chief...

  • Page 85
    ... with the Securities and Exchange Commission no later than 120 days after the close of the fiscal year ended June 27, 2008, except that the information required by this Item 10 concerning executive officers is set forth in Part I of this report under "Item 1. Business - Executive Officers of the...

  • Page 86
    ..., as amended effective as of November 5, 2007(30) Rights Agreement between Western Digital Corporation and American Stock Transfer & Trust Company, as Rights Agent, dated as of April 6, 2001, which includes as Exhibit A thereto the Form of Right Certificate to be distributed to holders of Rights...

  • Page 87
    ...Amendment to the Western Digital Corporation Employee Stock Option Plan, dated April 6, 2001(6)* Form of Notice of Grant of Stock Options and Stock Option Agreement under the Western Digital Corporation Amended and Restated Employee Stock Option Plan as amended(15)* Western Digital Corporation Broad...

  • Page 88
    ... and Goldman Sachs Credit Partners L.P., Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as arrangers(28) First Amendment to Credit Agreement, dated November 5, 2007, among Western Digital Technologies, Inc.; Goldman Sachs Credit Partners L.P., as administrative agent; and the lenders...

  • Page 89
    ... 2002††Filed with this report. * Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to applicable rules of the Securities and Exchange Commission. (1) Incorporated by reference to the Company's Registration Statement on Form 8-B, filed April 13...

  • Page 90
    ... on February 7, 2007. (26) Incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-8703), as filed with the Securities and Exchange Commission on June 29, 2007. (27) Incorporated by reference to the Company's Annual Report on Form 10-K (File No. 1-8703), as filed with the...

  • Page 91
    ... duly authorized. WESTERN DIGITAL CORPORATION By: /s/ TIMOTHY M. LEYDEN Timothy M. Leyden Executive Vice President and Chief Financial Officer Dated: August 20, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below...

  • Page 92
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  • Page 93
    ... International ...Read-Rite (Malaysia) Sdn. Bhd ...Read-Rite Philippines, Inc...RS Patent Holding Corporation ...Western Digital Canada Corporation ...Western Digital Deutschland GmbH ...Western Digital (France) SARL ...Western Digital (Fremont), LLC ...Western Digital Hong Kong Limited...Western...

  • Page 94
    ... ended June 27, 2008, and the related financial statement schedule, and the effectiveness of internal control over financial reporting as of June 27, 2008, which reports appear in the June 27, 2008 Annual Report on Form 10-K of Western Digital Corporation. /s/ August 20, 2008 Costa Mesa, California...

  • Page 95
    ... report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. JOHN F. COYNE John F. Coyne President and Chief Executive Officer Dated: August 20, 2008...

  • Page 96
    ... the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and...

  • Page 97
    ... as applicable, of the Securities Exchange Act of 1934, as amended; and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. JOHN F. COYNE John F. Coyne President and Chief Executive Officer Dated...

  • Page 98
    ... accompanying Annual Report on Form 10-K of the Company for the period ended June 27, 2008 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and (ii) the information contained in the Report fairly...

  • Page 99
    ... Former President and Chief Executive Officer Western Digital Corporation Board Committees 1 Audit Committee 2 Compensation Committee 3 Executive Committee 4 Governance Committee Executive Officers John F. Coyne President and Chief Executive Officer Timothy M. Leyden Executive Vice President and...

  • Page 100
    ... and cost of commodity materials and specialized product components that WD does not make internally; negative impacts of the conditions in the global credit markets on WD's investment portfolio; and other risks and uncertainties listed in WD's Form 10-K for the fiscal year ended June 27, 2008, to...