WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
Note 17.
Quarterly Results of Operations (unaudited)
First
Second
Third
Fourth
2012(1)
Revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,694
$1,995
$3,035
$4,754
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
541
648
977
1,472
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
259
162
542
808
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
239
145
483
745
Basic income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1.03
$ 0.62
$ 2.00
$ 2.93
Diluted income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1.01
$ 0.61
$ 1.96
$ 2.87
2011(2)
Revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,396
$2,475
$2,252
$2,403
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
437
475
410
469
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
211
240
158
172
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
197
225
146
158
Basic income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0.86
$ 0.98
$ 0.63
$ 0.68
Diluted income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0.84
$ 0.96
$ 0.62
$ 0.67
(1) The first, second and third quarters of 2012 included $14 million, $14 million and $34 million, respectively, of
expenses related to the acquisition of HGST, including debt commitment fees. The first quarter of 2012 included
$7 million of litigation contingencies. The second and third quarters included $199 million and $15 million of
charges related to the flooding, net of recoveries, respectively. The third quarter of 2012 included $91 million for
costs recognized upon the sale of inventory that was written-up to fair value. The third quarter of 2012 included
$16 million of tax effects related to the aforementioned costs related to inventory. The third and fourth quarters
of 2012 included $12 million and $51 million for the amortization of intangibles related to the acquisition of
HGST, respectively. The fourth quarter of 2012 included $80 million of impairment and other charges.
(2) The third quarter of 2011 included $10 million of expenses related to the acquisition of HGST. The fourth quar-
ter of 2011 included a $25 million accrual for litigation contingencies, $7 million of expenses related to the
acquisition of HGST, and $2 million of debt commitment fees related to the acquisition of HGST.
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