Western Digital 2012 Annual Report Download - page 45

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Summary Comparison of 2012, 2011 and 2010
The following table sets forth, for the periods presented, selected summary information from our consolidated
statements of income by dollars and percentage of net revenue (in millions, except percentages):
Years Ended
June 29, 2012 July 1, 2011 July 2, 2010
Net revenue ................................. $12,478 100.0% $9,526 100.0% $9,850 100.0%
Gross margin ................................ 3,638 29.2 1,791 18.8 2,401 24.4
R&D and SG&A* ............................. 1,573 12.6 1,010 10.6 876 8.9
Charges related to flooding, net .................. 214 1.7 — — — —
Impairment and other charges ................... 80 0.6 — — — —
Operating income ............................. 1,771 14.2 781 8.2 1,525 15.5
Other expense, net ............................ (14) (0.1) (1) — (5) (0.1)
Income before income taxes ..................... 1,757 14.1 780 8.2 1,520 15.4
Income tax provision ........................... 145 1.2 54 0.6 138 1.4
Net income .................................. 1,612 12.9 726 7.6 1,382 14.0
* SG&A includes $54 million and $17 million of expenses related to the acquisition of HGST in 2012 and 2011,
respectively. In addition, SG&A includes $7 million, $25 million and $27 million of litigation accruals in 2012,
2011 and 2010, respectively.
The following table sets forth, for the periods presented, summary information regarding unit shipments, ASPs
and revenues by geography and channel (in millions, except percentages and ASPs):
Years Ended
June 29,
2012
July 1,
2011
July 2,
2010
Net revenue ........................................ $12,478 $9,526 $9,850
ASPs (per unit)* .................................... $ 62 $ 45 $ 50
Revenues by Geography(%)
Americas ........................................ 23% 22% 24%
Europe, Middle East and Africa ....................... 19 23 23
Asia ............................................ 58 55 53
Revenues by Channel(%)
OEM ........................................... 63% 49% 51%
Distributors ...................................... 25 32 31
Retailers ........................................ 12 19 18
Unit Shipments*
Compute ........................................ 150 151 147
Non-compute .................................... 36 46 38
Enterprise ....................................... 16 10 9
Total units shipped .................................. 202 207 194
* Based on sales of hard drive units only.
Fiscal Year 2012 Compared to Fiscal Year 2011
Net Revenue. Net revenue was $12.5 billion for 2012, an increase of 31% from 2011. Operations from HGST
contributed $3.1 billion in net revenue. Total hard drive shipments in 2012 decreased to 202 million units as com-
pared to 207 million units for the prior year. The increase in net revenue resulted primarily from a $17 increase in
ASP from $45 to $62, partially offset by lower shipments. These changes were as a result of the severe supply con-
straints across the hard drive industry brought about by the Thailand floods.
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