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Western Digital
2009 Annual Report and Form 10-K

Table of contents

  • Page 1
    Western Digital 2009 Annual Report and Form 10-K

  • Page 2
    ... consumers to manage and enjoy their wealth of digital content. Our drives are marketed to leading OEMs, 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
    ... or increased our competitive position in the industry's highest growth markets such as branded products, notebook PCs and the emerging netbook space for low-cost mobile computing devices. In each of these faster growing markets, WD has achieved the number one or number two market share position...

  • Page 4
    ... development and ensure that we have the capability to produce anticipated product volumes. As a result, in recent years WD has gained market share and enriched its product mix with a first-to-market position in new, high capacity points, including these fiscal 2009 new product introductions...

  • Page 5
    ... SSD applications. In addition, we have launched a family of WD TV HD Media Player products, which make stored content easier to view in high quality, independent of the PC, and thereby drives demand for additional high-capacity, cost-effective storage. We are also engaged in the development of...

  • Page 6
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  • Page 7
    ...price as reported on the New York Stock Exchange. As of the close of business on August 6, 2009, 224,685,608 shares of common stock, par value $.01 per share, were outstanding. Documents Incorporated by Reference Part III incorporates by reference certain information from the registrant's definitive...

  • 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
    ... conditions. Examples of forward-looking statements include, but are not limited to, statements concerning: • demand for hard drives and solid-state drives in the various markets and factors contributing to such demand; • our plans to continue to develop new products and expand into new storage...

  • Page 10
    ... sell our hard drives as stand-alone storage products and integrate them into finished enclosures, embedding application software and offering the products as WD»-branded external storage appliances for personal data backup and portable or expanded storage of digital music, photographs, video and...

  • Page 11
    ... and data streaming applications. We believe that the growth rate of solid-state drives will be significant over the next four years, with particular opportunities for growth in the enterprise storage, netbooks, and embedded systems markets. We also design, develop and manufacture WD»-branded media...

  • Page 12
    ...diskbased back-up application has emerged with high-capacity SATA hard drives augmenting SCSI and SAS hard drives, tape and optical media. This new application, popularly referred to as "near-line" storage, has created a growth market because hard drives back up or access data more quickly than tape...

  • Page 13
    ... high-speed external interfaces, such as USB 2.0, external SATA, FireWireTM or Ethernet network connections, that permit users to supplement the storage space of their PC systems or home and small office networks with the use of external hard drives. Users store additional programs or multimedia...

  • Page 14
    ..., video surveillance equipment, networking products, DVRs, STBs and external storage appliances. We also offer a line of WD»-branded media players under the WD TVTM brand name, as well as a line of solid-state drives under the SiliconDrive» brand name. Desktop Hard Drive Products The hard drives...

  • Page 15
    ... 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 brand that are designed for use in products such as...

  • Page 16
    ... to operate the drive, measured in watts. All of our hard drive products employ similar technology. The main components of the hard drive are a Head-DiskAssembly ("HDA") and a Printed Circuit Board Assembly ("PCBA"). The HDA includes heads, magnetic media ("disks"), head positioning mechanism...

  • Page 17
    ...research and development, manufacturing infrastructure and capital equipment of head and magnetic media components, in order to secure our competitive position and cost structure. Solid-state drives record, store and retrieve digital data without any moving parts. Attributes, such as fast read/write...

  • Page 18
    ...' business models and maintain customer satisfaction, refer to Item 1A of this Annual Report on Form 10-K. Distributors We use a broad group of distributors to sell our products to non-direct customers such as small computer and CE manufacturers, dealers, systems integrators, online retailers and...

  • Page 19
    ... customer relationships by communicating with our resellers and 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...

  • Page 20
    ... Pacific, Australia, Europe, India, Latin America, the Middle East and North America to provide various levels of testing, processing and/or recertification of returned products for our customers. In addition, we receive and service returned hard drives at our U.S. facility. Manufacturing We believe...

  • Page 21
    ... currently used in the manufacture of our hard drives: • magnetic heads and magnetic media; • suspensions with related HGAs and HSAs; • spindle motors; • custom and standard electronics such as system-on-chip, magnetic media, motor controllers, pre-amps and printed circuit boards; • base...

  • Page 22
    ... SEC, including us. Executive Officers of the Registrant Listed below are all of our executive officers as of July 3, 2009, 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...

  • Page 23
    ...unable to offer the materials we use to manufacture our products. These actions could result in reductions in our revenue, increased price competition and increased operating costs, which could adversely affect our business, results of operations and financial condition. Negative worldwide economic...

  • Page 24
    ... costs in developing such products, it may harm our operating results. Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives. Demand for our hard drives depends on the demand for systems manufactured by our customers and on storage...

  • Page 25
    ... new markets, our business may suffer. To remain a significant supplier of hard drives, we will need to offer a broad range of hard drive products to our customers. We currently offer a variety of 3.5-inch or 2.5-inch hard drives for the desktop, mobile, enterprise, CE and external storage markets...

  • Page 26
    ... of the hard drives we manufacture. 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 or new market expansion, or...

  • Page 27
    ..., our operating results could suffer because of the increased importance of our branded products business. We sell our branded products directly to a select group of major retailers, such as computer superstores and CE stores, and authorize sales through distributors to other retailers and online...

  • Page 28
    ... channel are important to our business, and if we fail to maintain brand preference with our distributors or if distribution markets for hard drives weaken, our operating results could suffer. Our distribution customers typically sell to small computer manufacturers, dealers, systems integrators...

  • Page 29
    ... these increased costs through to our customers. If we fail to maintain effective relationships with 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 magnetic media for some of our product families...

  • Page 30
    ... to operate its business; or • failure of a key supplier to remain in business, to remain an independent merchant supplier, to adjust to market conditions, or to meet our quality, yield or production requirements. If components and equipment that we use are available from only a limited number of...

  • Page 31
    ... companies; and • difficulties locating in a timely manner suitable manufacturing equipment for our head or magnetic media manufacturing processes and replacement parts for such equipment. If we do not adequately address the challenges related to our head or magnetic media manufacturing operations...

  • Page 32
    ... on suppliers to ensure our access to components, technology and production equipment that accommodate the new technology. For example, advanced wafer and magnetic media manufacturing technologies have historically been developed for use in the semiconductor industry prior to the hard drive industry...

  • Page 33
    ... and developing new products for the desktop, mobile, enterprise, CE and external storage markets in response to solid-state storage, as well as other competing technologies. If our hard drive technology fails to offer higher capacity, performance and reliability with lower cost-per-gigabyte...

  • Page 34
    ... wafer fabrication facility in California and a single slider fabrication and head gimbal assembly facility in Thailand, our magnetic media operations include three facilities in Malaysia, and our high volume hard drive manufacturing operations include facilities in Thailand and Malaysia, which...

  • Page 35
    ... 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 make payments. Our systems are vulnerable to damage or interruption from natural disasters, power loss...

  • Page 36
    ... in the storage industry, our business success becomes increasingly dependent on our ability to retain our key staff and skilled employees as well as attract, integrate and retain new skilled employees. Volatility or lack of positive performance in our stock price and the overall markets may...

  • Page 37
    ... result in credit losses and an increase in our operating costs. Some of our OEM customers have adopted a subcontractor model that requires us to contract directly with companies, such as ODMs, that provide manufacturing services to our OEM customers. Because these subcontractors are generally not...

  • Page 38
    ... by customers of competing products in lieu of our products; • variations in the cost of components for our products; • limited availability of components that we obtain from a single or a limited number of suppliers; • competition and consolidation in the data storage industry; • seasonal...

  • Page 39
    ...the companies. Securities class action lawsuits are often brought against companies after periods of volatility in the market price of their securities. A number of such suits have been filed against us in the past, and should any new lawsuits be filed, such matters could result in substantial costs...

  • Page 40
    ... 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, consisting of approximately 575,000 square feet, which we use for assembly of hard drives, printed circuit...

  • Page 41
    PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities. Our common stock is listed on the New York Stock Exchange, Inc. ("NYSE") under the symbol "WDC". The approximate number of holders of record of our common stock as of August...

  • Page 42
    ... 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 July 3, 2009. The graph assumes that $100 was invested in our common stock at the close of market on July...

  • Page 43
    ... sell our hard drives as stand-alone storage products and integrate them into finished enclosures, embedding application software and offering the products as WD»-branded external storage appliances for personal data backup and portable or expanded storage of digital music, photographs, video and...

  • Page 44
    ... quarter of 2009, we began to design, develop, manufacture and sell media players. A media player is a device that connects to a user's television or home theater system and plays digital movies, music and photos from any of our WD»-branded external hard drives or other USB mass storage devices. We...

  • Page 45
    ...57 Revenues by Geography(%) Americas...24% 31% 37% Europe, Middle East and Africa...27 30 29 Asia ...49 39 34 Revenues by Channel(%) OEMs...54% 51% 48% Distributors ...26 31 36 Retailers ...20 18 16 Revenues by Product(%)* Non-desktop sources ...62% 56% 43% Desktop hard drives ...38 44 57 * Includes...

  • Page 46
    ... year. Gross margin percentage decreased to 17.9% in 2009 from 21.5% in 2008. This decrease is due to a more competitive pricing environment primarily resulting from an increase in product offerings in the mobile and branded markets. Operating Expenses. Total research and development ("R&D") expense...

  • Page 47
    ...of increases in sales of mobile hard drives to 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. We have sales incentive and marketing programs that provide customers with price protection...

  • Page 48
    ... foreseeable future. Our ability to sustain our working capital position is subject to a number of risks that are discussed in Item 1A of this Annual Report on Form 10-K. Operating Activities Net cash provided by operating activities during 2009 was $1.3 billion as compared to $1.4 billion for 2008...

  • Page 49
    ... reduction in market demand due to the macroeconomic conditions. Capital expenditures in 2009 primarily consisted of the expansion of our head wafer fabrication facilities, continued investment in advanced head technologies and increased capacity for our broadening and growing product portfolio. For...

  • Page 50
    ... on the revolving credit facility and was in compliance with all covenants. 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 cover forecasted...

  • Page 51
    ... qualifying customers, historical pricing information and customer claim processing. If customer demand for hard drives or market conditions differ from our expectations, our operating results could be affected. We also have programs under which we reimburse qualified distributors and retailers for...

  • Page 52
    .... Our statistical tracking model captures specific detail on hard drive reliability, such as factory test data, historical field return rates, and costs to repair by product type. If actual product return trends, costs to repair returned products or costs of customer compensatory claims differ...

  • Page 53
    ..., 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...

  • Page 54
    ... after the beginning of the first annual reporting period beginning on or after December 15, 2008, which for us is the first quarter of fiscal 2010. SFAS 141(R) will impact the Company's consolidated financial statements for business combinations with an acquisition date on or after adoption in the...

  • Page 55
    ... Baht contracts are designated as both cash flow and fair value hedges. See Part II, Item 8, Note 1 in the Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K. As of July 3, 2009, we had outstanding the following purchased foreign exchange contracts (in millions...

  • Page 56
    ... Data Index to Financial Statements and Financial Statement Schedule Page Consolidated Financial Statements: Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets - July 3, 2009 and June 27, 2008...Consolidated Statements of Income - Three Years Ended July 3, 2009...

  • Page 57
    ...material 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 July 3, 2009, based on criteria...

  • Page 58
    ...under Item 9A. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 59
    WESTERN DIGITAL CORPORATION CONSOLIDATED BALANCE SHEETS (in millions) July 3, 2009 June 27, 2008 ASSETS Current assets: Cash and cash equivalents ...Accounts receivable, net ...Inventories ...Other current assets ...Total current assets ...Property and equipment, net ...Goodwill ...Other intangible...

  • Page 60
    WESTERN DIGITAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) July 3, 2009 Years Ended June 27, June 29, 2008 2007 Revenue, net ...$7,453 Cost of revenue ...6,116 Gross margin ...Operating expenses: Research and development ...Selling, general and ...

  • Page 61
    ... sale of property and equipment ...Purchases of investments ...Sales and maturities of investments ...Net cash used in investing activities ...Cash flows from financing activities Issuance of stock under employee stock plans ...Taxes paid on vested stock awards under employee stock plans ...Increase...

  • Page 62
    ... ...Deferred compensation ...Stock based compensation ...Decrease in excess tax benefits from employee stock plans ...Repurchase of common stock ...Net income ...Unrealized gain on foreign exchange contracts ...Balance at July 3, 2009 ... $470 14 $484 The accompanying notes are an integral part of...

  • Page 63
    ...digital video recorders and satellite and cable set-top boxes. The Company also designs, develops, manufactures and sells solid-state drives and media players. A solid-state drive is a storage device that uses semiconductor, non-volatile media, rather than magnetic disks and magnetic heads, to store...

  • Page 64
    ... or more of our products, which may require a write down of inventory that could negatively affect operating results. Property and Equipment The cost of property and equipment is depreciated over the estimated useful lives of the respective assets. The Company's buildings are being depreciated over...

  • Page 65
    ... customers, historical pricing information and customer claim processing. If customer demand for hard drives or market conditions differ from the Company's expectations, the Company's operating results could be affected. The Company also has programs under which it reimburses qualified distributors...

  • Page 66
    .... The statistical tracking model captures specific detail on hard drive reliability, such as factory test data, historical field return rates, and costs to repair by product type. If actual product return trends, costs to repair returned products or costs of customer compensatory claims differ...

  • Page 67
    ... 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 ESPP purchase rights are estimated using...

  • Page 68
    ... reported in earnings. The Company chose not to elect the fair value option for eligible items, and accordingly, the adoption of SFAS 159 in the first quarter of fiscal 2009 had no impact on the Company's consolidated financial statements. In December 2007, the FASB issued SFAS No. 141(R), "Business...

  • Page 69
    ...nature and financial effects of the business combination. SFAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, which for the Company is the first quarter of...

  • Page 70
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 2. Supplemental Financial Statement Data Years Ended July 3, June 27, 2009 2008 (in millions) Inventories: Raw materials and component parts ...Work-in-process ...Finished goods ... $ 97 154 125 376 522 2,533...

  • Page 71
    ... 3, 2009 and $24 million at June 27, 2008. 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 72
    ... costs. The asserted patents allegedly relate to nanophase diamond films. The Company intends to defend itself vigorously in this matter. Note 6. Business Segment, Geographic Information and Major Customers Segment Information The Company operates in one reportable operating segment, the hard drive...

  • Page 73
    ...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 July 3, 2009 (in millions): 2009 2008 2007...

  • Page 74
    ... maximum term of options, stock appreciation rights and other rights to acquire common stock under the 2004 Performance Incentive Plan is ten years after the grant date of the award. As of July 3, 2009, the maximum number of shares of the Company's common stock that was authorized for award grants...

  • Page 75
    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 76
    ...option pricing model. The binomial model requires the input of highly subjective assumptions including the expected stock price volatility, the expected price multiple at which employees are likely to exercise stock options and the expected employee termination rate. The Company uses historical data...

  • Page 77
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The fair values of all ESPP purchase rights granted on or prior to July 3, 2009 have been estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted average ...

  • Page 78
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income Tax Provision (Benefit) The components of the provision (benefit) for income taxes were as follows for the three years ended July 3, 2009 (in millions): 2009 2008 2007 Current: Foreign ...Domestic-federal ...

  • Page 79
    ...A substantial portion of the Company's manufacturing operations in Malaysia and Thailand operate under various tax holidays and tax incentive programs which will expire in whole or in part at various dates through 2022. Certain of the holidays may be extended if specific conditions are met. The net...

  • Page 80
    ... the year ended July 3, 2009 (in millions): Unrecognized tax benefit at June 27, 2008 ...Gross increases related to prior year tax positions ...Gross decreases related to prior year tax positions ...Gross increases related to current year tax positions ...Settlements/lapse of statute of limitations...

  • Page 81
    ... basis as of July 3, 2009, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions): Fair Value Measurements at Reporting Date using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Inputs...

  • Page 82
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) These investments are currently accounted for as available-for-sale securities and recorded within other non-current assets in the consolidated balance sheet. Foreign Exchange Contracts. The Company's foreign ...

  • Page 83
    ... cost structure as a result of a softer demand environment. This plan was completed during the Company's third and fourth fiscal quarters of 2009. This resulted in the closure of one of the Company's hard drive manufacturing facilities in Thailand, the disposal of its media substrate manufacturing...

  • Page 84
    .... The intangible asset was valued using the income approach. Note 14. Acquisitions SiliconSystems On March 27, 2009, the Company completed its acquisition of SiliconSystems, a supplier of solid-state drives for the embedded systems market. The total acquisition cost of SiliconSystems was $66 million...

  • Page 85
    ... was subsequently impaired in 2009 as a result of the Company's restructuring plan. See Note 13. Komag had an in-process research and development project associated with technology for higher recording densities on advanced perpendicular recording media. As these advanced products were not ready for...

  • Page 86
    ...14 million in-process research and development charge related to the acquisition of SiliconSystems and $4 million of restructuring charges. The fourth quarter of 2009 included an $18 million gain on the sale of assets from the Company's media substrate manufacturing facility in Sarawak, Malaysia and...

  • Page 87
    WESTERN DIGITAL CORPORATION SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Three years ended July 3, 2009 (in millions) Allowance for Doubtful Accounts Balance at June 30, 2006 ...Charges to operations ...Deductions ...Balance at June 29, 2007 ...Charges to operations ...Deductions ...

  • Page 88
    ... our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this Annual Report...

  • Page 89
    ... executive officers is set forth in Part I of this report under "Item 1. Business - Executive Officers of the Registrant." Item 11. Executive Compensation There is incorporated herein by reference the information required by this Item included in the Company's Proxy Statement for the 2009 Annual...

  • Page 90
    ...of Designations of Series A Junior Participating Preferred Stock of Western Digital Corporation, dated April 6, 2001(4) Western Digital Corporation Amended and Restated 2004 Performance Incentive Plan, amended and restated effective as of November 6, 2008(24)* Form of Notice of Grant of Stock Option...

  • Page 91
    ... 2005 Employee Stock Purchase Plan, as amended November 6, 2008(23)* Amended and Restated Western Digital Corporation Non-Employee Directors Stock-For-Fees Plan, as amended November 6, 2008(24)* Western Digital Corporation Summary of Compensation Arrangements for Named Executive Officers and...

  • Page 92
    ... for Officers of Western Digital Corporation(7)* Master Equipment Lease Agreement dated June 24, 2004 between CIT Technologies Corporation, doing business as CIT Systems Leasing, and Western Digital Technologies, Inc.(9) Credit Agreement, dated February 11, 2008, among Western Digital Technologies...

  • Page 93
    ...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. (17) Incorporated by reference to the Company's Annual Report on Form 10-K (File No. 1-8703), as filed with the Securities and Exchange Commission on August...

  • Page 94
    ... duly authorized. WESTERN DIGITAL CORPORATION By: /s/ TIMOTHY M. LEYDEN Timothy M. Leyden Executive Vice President and Chief Financial Officer Dated: August 13, 2009 Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below...

  • Page 95
    ......Western Digital Taiwan Co., Ltd...Western Digital Technologies, Inc...Western Digital (Thailand) Company Limited...Western Digital (UK) Limited ...Western Digital Ventures, Inc... Delaware Delaware Hawaii Cayman Islands Philippines Delaware California England Hong Kong Delaware Bermuda Malaysia...

  • Page 96
    EXHIBIT 23 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors Western Digital Corporation: We consent to the incorporation by reference in the registration statements on Forms S-8 (Nos. 2-76179, 2-97365, 33-9853, 33-57953, 33-60166, 33-60168, 33-51725, 333-20359, 333-...

  • Page 97
    ..., process, summarize and 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...

  • Page 98
    ...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. TIMOTHY M. LEYDEN Timothy M. Leyden Executive Vice President and Chief Financial Officer /s/ Dated...

  • Page 99
    ... 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 /s/ Dated...

  • Page 100
    ... 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. TIMOTHY M. LEYDEN Timothy M. Leyden Executive Vice President and Chief Financial Officer /s/ Dated: August 13, 2009

  • Page 101
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  • Page 103
    ... L. Kimsey1 Former Global Chief Executive Officer Ernst & Young Michael D. Lambert2 Former Senior Vice President Dell, Inc. Matthew E. Massengill Former Chairman, President and Chief Executive Officer Western Digital Corporation Roger H. Moore2, 4 Former President and Chief Executive Officer...

  • Page 104
    ...; actions by competitors; unexpected advances in competing technologies; uncertainties related to the development and introduction of products based on new technologies and expansion into new hard drive markets; business conditions and growth in the various data storage markets; pricing trends...