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Western Digital
2010 Annual Report and Form 10-K

Table of contents

  • Page 1
    Western Digital 2010 Annual Report and Form 10-K

  • Page 2
    ... players that enable consumers to manage and enjoy a wealth of digital content. Our products 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...

  • Page 3
    ... a relentless focus on customer needs, quality, low-cost, and high asset efficiency, WD has become solidly and increasingly profitable since adopting the basis of its current business model a decade ago. Over the last five years, we have profitably grown revenue at a compound annual rate of 22%. In...

  • Page 4
    ...® Studio™ LX external hard drives for Apple® users, and the My Book AV DVR Expander external drives which allow users to store more of their favorite movies and TV shows locally. We also extended our family of WD media players with WD TV® Live™ Plus, featuring added services such as Netflix...

  • Page 5
    ... Research & Development On the manufacturing side, we improved the security of our supply of glass substrates and enhanced our long-term cost structure with the acquisition of Hoya's media operations. $565 $630 FY2006 FY2007 FY2008 FY2009 FY2010 Fiscal 2010 represents the third year...

  • Page 6
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  • 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...

  • Page 9
    ... to carefully review the disclosures we make concerning risks and other factors that may affect our business and operating results, including those made in Part I, Item 1A of this Annual Report on Form 10-K, and any of those made in our other reports filed with the Securities and Exchange Commission...

  • Page 10
    .../or home theater system and plays digital movies, music and photos from any of our WD»-branded external hard drives, other USB mass storage devices or content services accessed over the Internet. We sell our media players worldwide to resellers and retailers under the WD» brand. In November 2009...

  • 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 the desktop computer operating system and application software, as...

  • Page 12
    ...enabling customers the flexibility of incorporating SATA hard drives in SAS storage systems. We believe the units shipped in the enterprise-class SATA market was approximately 36% of the enterprise hard drive market in calendar 2009. High-performance server applications, including blade servers, are...

  • Page 13
    ...-speed external interfaces, such as USB 2.0, USB 3.0, 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
    ... and external hard drive markets, and can be found in products including desktop computers, notebook computers, enterprise storage, server, workstations, video surveillance equipment, networking products, DVRs, STBs and external storage appliances. We also offer a line of WD»-branded media players...

  • Page 15
    ... WD» brand for retail store sales. We also sell a line of WD»-branded media players which are devices that enable users to play digital movies, music and photos from any of our WD»-branded external hard drives, other USB mass storage devices or the Internet, on a television or home theater system...

  • Page 16
    ... us to execute against our strategic objective of revenue diversification to address the growth of new applications for hard drives and fastgrowing new market opportunities. For an additional discussion of risks related to our development of new products, see Item 1A of this Annual Report on Form...

  • Page 17
    ... 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 speeds, low power consumption and robust durability offer greater performance than hard drives...

  • Page 18
    ... computers, externally store their data for backup or mobility purposes and play their stored digital content or content accessed over the Internet on their television or home theater systems. We grant our retailers limited price protection. We also sell our branded products through our Web site. 12

  • Page 19
    ... 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 companies such as Hitachi Global Storage...

  • Page 20
    ...high-quality components that we manufacture ourselves, while insisting that our suppliers provide high-quality components at competitive prices. The critical elements of our hard drive production are high volume and utilization, low cost assembly and testing, and establishment and maintenance of key...

  • Page 21
    ..., see Item 1A of this Annual Report on Form 10-K. Materials and Supplies The following products are the major components currently used in the manufacture of our hard drives: • magnetic heads and magnetic media; • suspensions with related HGAs and HSAs; • spindle motors; • custom and...

  • Page 22
    ...file electronically with the SEC, including us. Executive Officers of the Registrant Listed below are all of our executive officers as of July 2, 2010, followed by a brief account of their business experience during the past five years. Executive officers are normally appointed annually by the Board...

  • Page 23
    ...to Executive Vice President and Chief Financial Officer in September 2007. From December 2001 to May 2007, Mr. Leyden served in senior finance capacities at Sage Software Inc. and Sage Software of California, subsidiaries of Sage Group PLC, a U.K. public company that supplies accounting and business...

  • Page 24
    ...incur significant 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...

  • Page 25
    ... the traditional enterprise market adds complexity to our business that requires us to effectively adapt our business and management processes to address the unique challenges and different requirements of the traditional enterprise market, while maintaining a competitive operating cost model. If we...

  • Page 26
    ... 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 27
    ... strong buying power and pricing leverage. If we are unable to maintain effective working relationships with major retailers and online resellers, or if we fail to successfully expand into multiple channels, our competitive position in the branded product market may suffer and our operating results...

  • Page 28
    ...negatively impact our cost structure. Sales in the distribution 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...

  • Page 29
    ... and could subject us to warranty claims in excess of our warranty provisions or which are greater than anticipated. We warrant the majority of our products for periods of one to five years. We test our hard drives in our manufacturing facilities through a variety of means. However, there can be no...

  • Page 30
    ... adversely affect our ability to develop and deliver the best products to our customers and our profitability could suffer. For example, in August 2003, we settled litigation with a supplier who previously was the sole source of read channel devices for our hard drives. As a result of the disputes...

  • Page 31
    ... that can be used to develop or manufacture next generation products may cause us to experience inability or delay in our manufacturing and shipment of hard drive products, our expansion into new technology and markets, or our ability to remain competitive with alternative storage technologies...

  • Page 32
    ... to satisfy our customers' product needs, or we may encounter quality problems with the heads or magnetic media we manufacture. In addition, we may not have access to external sources of supply without incurring substantial costs which would negatively impact our business and financial results...

  • Page 33
    ... and our operating results may suffer. If we fail to develop and introduce new hard drives that are competitive against alternative storage technologies, our business may suffer. Our success depends in part on our ability to develop and introduce new products in a timely manner in order to keep...

  • Page 34
    ... media in our facilities in Penang, Malaysia and Tuas, Singapore. A majority of our high volume hard drive manufacturing operations are conducted in two facilities in Thailand, with the balance conducted in our Kuala Lumpur, Malaysia facility. The manufacturing facilities of many of our suppliers...

  • Page 35
    ... and efficiently deliver our products. We are vulnerable to system failures or attacks, 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 36
    ...intellectual property rights, we consider elements of our product designs and processes to be proprietary and confidential. We rely upon employee, consultant and vendor non-disclosure agreements and contractual provisions and a system of internal safeguards to protect our proprietary information. 30

  • Page 37
    ... order to maintain an equivalent profit margin. If this occurs, it would have a negative impact on our operating results. Prices for our products are substantially U.S. dollar denominated, even when sold to customers that are located outside the U.S. Therefore, as a substantial portion of our sales...

  • Page 38
    ... 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 as well...

  • Page 39
    ... to the operating performance of 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...

  • Page 40
    ...and sales and technical support. We own manufacturing facilities in Kuala Lumpur, Malaysia, consisting of approximately 1,054,000 square feet (which includes a facility of approximately 479,000 square feet acquired during fiscal 2010), which we use for assembly of hard drives, printed circuit boards...

  • 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
    ... HARDWARE & EQUIPMENT 7/1/05 Total Return Analysis 6/30/06 6/29/07 6/27/08 7/3/09 7/2/10 7/1/05 6/30/06 6/29/07 6/27/08 7/3/09 7/2/10 Western Digital Corporation S&P 500 Index Dow Jones US Technology Hardware & Equipment Index 100.00 100.00 100.00 143.97 108.63 103.60 140.63 131...

  • Page 43
    ... 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 44
    ... or home theater system and plays digital movies, music and photos from any of our WD»-branded external hard drives, other USB mass storage devices or content services accessed over the Internet. We sell our media players worldwide to resellers and retailers under the WD» brand. In November 2009...

  • Page 45
    ...Net revenue ...Unit shipments* ...ASPs (per unit)* ...Revenues by Geography(%) Americas ...Europe, Middle East and Africa ...Asia ...Revenues by Channel(%) OEMs ...Distributors...Retailers ...Revenues by Product(%) Non-desktop sources ...Desktop hard drives ... $9,850 194 $ 50 24% 23 53 51% 31 18 64...

  • Page 46
    ... incentive compensation and an $18 million increase in the expansion of our sales and marketing presence into new regions. SG&A expense as a percentage of net revenue remained consistent at 2.7% in 2010 and 2009. During 2009, we recorded a $14 million in-process research and development charge...

  • Page 47
    ... concentration of global manufacturing in that region. Changes in revenue by channel are a result of increases in sales of mobile hard drives to OEMs. In accordance with standard industry practice, we have sales incentive and marketing programs that provide customers with price protection and other...

  • Page 48
    ... ability to sustain our working capital position is subject to a number of risks that we discuss in Item 1A of this Annual Report on Form 10-K. Operating Activities Net cash provided by operating activities during 2010 was $1.9 billion as compared to $1.3 billion for 2009 and $1.4 billion for 2008...

  • Page 49
    ... activity of $221 million. Capital expenditures in 2010 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 fiscal 2011, we expect capital...

  • Page 50
    ... See Part II, Item 8, Note 3 in the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. 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...

  • Page 51
    ... 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 materially affected. We also have programs under which we reimburse qualified distributors and retailers...

  • Page 52
    ... 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. We use a statistical warranty tracking model to help prepare our...

  • Page 53
    ... value. 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
    ... hedges. See Part II, Item 8, Notes 1 and 11 in the Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K. As of July 2, 2010, we had outstanding the following purchased foreign exchange contracts (in millions, except weighted average contract rate): Contract Amount...

  • Page 55
    Item 8. Financial Statements and Supplementary Data Index to Financial Statements and Financial Statement Schedule Page Consolidated Financial Statements: Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets - July 2, 2010 and July 3, 2009 ...Consolidated ...

  • Page 56
    ... financial position of Western Digital Corporation and subsidiaries as of July 2, 2010 and July 3, 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended July 2, 2010, in conformity with U.S. generally accepted accounting principles. Also...

  • Page 57
    ... Company Accounting Oversight Board (United States), the consolidated balance sheets of Western Digital Corporation and subsidiaries as of July 2, 2010 and July 3, 2009, the related consolidated statements of income, shareholders' equity and comprehensive income, and cash flows for each of the years...

  • Page 58
    WESTERN DIGITAL CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except par value) July 2, 2010 July 3, 2009 ASSETS Current assets: Cash and cash equivalents ...Accounts receivable, net ...Inventories ...Other current assets ...Total current assets ...Property and equipment, net ...Goodwill ...

  • Page 59
    WESTERN DIGITAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) July 2, 2010 Years Ended July 3, June 27, 2009 2008 Revenue, net ...$9,850 Cost of revenue...7,449 Gross margin ...Operating expenses: Research and development ...Selling, general and ...

  • Page 60
    WESTERN DIGITAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) July 2, 2010 Years Ended July 3, June 27, 2009 2008 Cash flows from operating activities Net income ...Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization ...Stock-based...

  • Page 61
    ...470 14 $ 484 Employee stock plans ...Stock based compensation ...Increase in excess tax benefits from employee stock plans ...Net income ...Unrealized gain on foreign exchange contracts ...Balance at July 2, 2010 ... $1,382 9 $1,391 The accompanying notes are an integral part of these consolidated...

  • Page 62
    ...Internet or home theater system and plays digital movies, music and photos from any of the Company's WD»-branded external hard drives, other USB mass storage devices or content services accessed over the Internet. The Company sells its media players worldwide to resellers and retailers under the WD...

  • Page 63
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Investments The Company's investments consist of auction-rate securities, which are primarily backed by insurance products with original maturities greater than three months. The Company has classified these ...

  • Page 64
    ...'s sell-through and inventory levels, estimated amounts to be reimbursed to qualifying 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...

  • Page 65
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) and trends, estimated repair or replacement costs and estimated costs for customer compensatory claims related to product quality issues, if any. A statistical warranty tracking model is used to help prepare ...

  • Page 66
    ...the Company's results of operations. These contract maturity dates do not exceed 12 months. All forward exchange contracts are for risk management purposes only. The Company does not purchase forward exchange contracts for trading purposes. The Company had outstanding forward exchange contracts with...

  • Page 67
    ... to the consolidated financial statements for all years presented. See Notes 10 and 11 for additional disclosures related to foreign exchange contracts. Use of Estimates Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity...

  • Page 68
    .... Note 2. Supplemental Financial Statement Data Years Ended July 2, July 3, 2010 2009 (in millions) Inventories: Raw materials and component parts ...Work-in-process ...Finished goods ...Total inventories ...Property and Equipment: Land and buildings ...Machinery and equipment ...Machinery and...

  • Page 69
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Credit Facility In February 2008, Western Digital Technologies, Inc. ("WDTI"), a wholly-owned subsidiary of the Company, entered into a five-year Credit Agreement that provided for a $750 million unsecured loan ...

  • Page 70
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 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 ...

  • Page 71
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Employment Litigation On March 20, 2009, plaintiff Ghazala H. Durrani, a former employee of the Company, filed a putative class action complaint in the Alameda County (California) Superior Court. The complaint ...

  • Page 72
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Geographic Information The Company's operations outside the United States include manufacturing facilities in Malaysia, Singapore, and Thailand as well as sales offices throughout Asia, Canada, Europe, India, Japan,...

  • Page 73
    ...As of July 2, 2010, total compensation cost related to unvested stock options and ESPP rights issued to employees but not yet recognized was $52 million and will be amortized on a straight-line basis over a weighted average service period of approximately 2.1 years. The Company granted approximately...

  • Page 74
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Fair Value Disclosure - Binomial Model The fair value of stock options granted during 2010, 2009 and 2008 was estimated using a binomial option-pricing model. The binomial model requires the input of highly ...

  • Page 75
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) date resulting in an aggregate intrinsic value of $98 million. During 2010 and 2009, the aggregate intrinsic value of options exercised under the Company's stock option plans was $72 million and $8 million, ...

  • Page 76
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Stock Purchase Rights On April 6, 2001, the Company adopted a plan to protect shareholders' rights in the event of a proposed takeover of the Company. Under the plan, each share of the Company's outstanding common ...

  • Page 77
    ...93 million and $76 million at July 2, 2010 and July 3, 2009, respectively. The increase in NOL benefits relates to the current year stock based compensation deductions which will result in a future benefit of $25 million, current year utilization of the stock based NOL of $4 million, and a reduction...

  • Page 78
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Effective Tax Rate Reconciliation of the U.S. Federal statutory rate to the Company's effective tax rate is as follows for the three years ended July 2, 2010: 2010 2009 2008 U.S. Federal statutory rate ...Tax rate ...

  • Page 79
    ... tax benefits at July 2, 2010, if recognized, would affect the effective tax rate. The Company files U.S. Federal, U.S. state, and foreign tax returns. For both federal and state tax returns, with few exceptions, the Company is subject to examination for fiscal years 2006 through 2009. In...

  • Page 80
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table presents information about the Company's financial assets that are measured at fair value on a recurring basis as of July 2, 2010, and indicates the fair value hierarchy of the valuation ...

  • Page 81
    ... on observable inputs including market interest rates from multiple pricing sources. Auction-Rate Securities. The Company's auction-rate securities have maturity dates through 2050, are primarily backed by insurance products and are accounted for as available-for-sale securities. These investments...

  • Page 82
    ...13. Restructuring and Sale of Facility During 2009, the Company announced and completed a restructuring plan to realign its cost structure as a result of a softer demand environment. This resulted in the closure of one of the Company's hard drive manufacturing facilities in Thailand, the disposal of...

  • Page 83
    ... the facilities, equipment, intellectual property and working capital of the magnetic media sputtering operations of Hoya. The acquisition is intended to augment the Company's existing magnetic media operations, strengthening its ability to meet anticipated growth in demand for hard drives. The cost...

  • Page 84
    WESTERN DIGITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) SiliconSystems On March 27, 2009, the Company acquired SiliconSystems, a supplier of solid-state drives for the embedded systems market. The total acquisition cost of SiliconSystems was $66 million, consisting of $...

  • 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
    ... 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 substrate manufacturing facility in Sarawak, Malaysia and a $5 million...

  • Page 87
    WESTERN DIGITAL CORPORATION SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Three years ended July 2, 2010 (in millions) Allowance for Doubtful Accounts Balance at June 29, 2007 ...Additions charged to operations ...Deductions ...Balance at June 27, 2008 ...Additions charged to ...

  • 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
    ... after the close of the fiscal year ended July 2, 2010, 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 Registrant." In addition, our Board of Directors has adopted a Code of...

  • Page 90
    ... Digital Corporation, dated April 6, 2001(4) Western Digital Corporation Amended and Restated 2004 Performance Incentive Plan, amended and restated effective as of August 12, 2009(18)* Form of Notice of Grant of Stock Option and Option Agreement - Executives, under the Western Digital Corporation...

  • Page 91
    ... Corporation 2005 Employee Stock Purchase Plan, as amended November 6, 2008(17)* Amended and Restated Western Digital Corporation Non-Employee Directors Stock-For-Fees Plan, as amended November 6, 2008(18)* Western Digital Corporation Summary of Compensation Arrangements for Named Executive Officers...

  • Page 92
    ... 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. ** Furnished herewith on a voluntary basis in advance of the XBRL phase-in schedule applicable to the registrant. In...

  • Page 93
    ...Company's Quarterly Report on Form 10-Q (File No. 1-8703), as filed with the Securities and Exchange Commission on October 29, 2009. (20) Incorporated by reference to the Company's Quarterly Report on Form 10-Q (File No. 1-8703), as filed with the Securities and Exchange Commission on April 30, 2010...

  • 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, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below...

  • Page 95
    ... ...WD Media (Malaysia) Sdn. (formerly Komag USA (Malaysia) Sdn.) ...WD Media(N) B.V. (formerly Komag Technologies(N) B.V.) ...WD Media (Singapore) Pte. Ltd...Western Digital Canada Corporation ...Western Digital Deutschland GmbH ...Western Digital (France) S.A.R.L...Western Digital (Fremont), LLC...

  • Page 96
    ... July 2, 2010, and the related financial statement schedule, and the effectiveness of internal control over financial reporting as of July 2, 2010, which reports appear in the July 2, 2010, Annual Report on Form 10-K of Western Digital Corporation. /s/ August 13, 2010 Irvine, California KPMG LLP

  • Page 97
    ... 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. /s/ JOHN F. COYNE John F. Coyne President and Chief Executive Officer Dated: August 13, 2010

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

  • Page 101
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  • Page 103
    ... Executive Vice President, Worldwide Sales and Sales Operations James K. Welsh Executive Vice President and General Manager Branded Products Board Committees 1 Audit Committee 2 Compensation Committee 3 Executive Committee 4 Governance Committee *Retiring from the company effective October 1, 2010

  • Page 104
    ... 2010 Western Digital Corporation 3355 Michelson Drive, Suite 100 Irvine, California 92612 949.672.7000 Investor Relations www.westerndigital.com/investor [email protected] 800.695.6399 Transfer Agent and Registrar American Stock Transfer & Trust Company 59 Maiden Lane, Plaza Level New York, New York...