Western Digital 2014 Annual Report Download - page 62

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WESTERN DIGITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
Years Ended
June 27,
2014
June 28,
2013
June 29,
2012
Revenue, net ..................................................... $15,130 $15,351 $12,478
Cost of revenue ................................................... 10,770 10,988 8,840
Gross profit .................................................... 4,360 4,363 3,638
Operating expenses:
Research and development ......................................... 1,661 1,572 1,055
Selling, general and administrative .................................. 761 706 518
Charges related to arbitration award ................................. 52 681 —
Employee termination, asset impairment and other charges ................ 95 138 80
Charges related to flooding, net ..................................... — — 214
Total operating expenses ........................................ 2,569 3,097 1,867
Operating income ................................................. 1,791 1,266 1,771
Other income (expense):
Interest and other income ......................................... 17 11 12
Interest and other expense ......................................... (56) (55) (26)
Total other expense, net ......................................... (39) (44) (14)
Income before income taxes .......................................... 1,752 1,222 1,757
Income tax provision ............................................... 135 242 145
Net income ...................................................... $ 1,617 $ 980 $ 1,612
Income per common share:
Basic ......................................................... $ 6.88 $ 4.07 $ 6.69
Diluted ....................................................... $ 6.68 $ 3.98 $ 6.58
Weighted average shares outstanding:
Basic ......................................................... 235 241 241
Diluted ....................................................... 242 246 245
The accompanying notes are an integral part of these consolidated financial statements.
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