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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
Note 17.
Quarterly Results of Operations (unaudited)
First
Second
Third
Fourth
2013(1)
Revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$4,035
$3,824
$3,764
$3,728
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,193
1,059
1,061
1,050
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
592
478
417
(221)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
519
335
391
(265)
Basic income (loss) per common share . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 2.11
$ 1.38
$ 1.64
$ (1.12)
Diluted income (loss) per common share . . . . . . . . . . . . . . . . . . . . . . . . .
$ 2.06
$ 1.36
$ 1.60
$ (1.12)
2012(2)
Revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,694
$1,995
$3,035
$4,754
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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
(1) The fourth quarter of 2013 included a $681 million charge related to an arbitration award. The first, second,
third and fourth quarters of 2013 included $26 million, $41 million, $63 million and $8 million, respectively, of
employee termination benefits and other charges. The second quarter of 2013 included an $88 million charge
related to California Proposition 39, to reduce the Company's previously recognized California deferred tax assets
as of December 28, 2012.
(2) The second and third quarters of 2012 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 fourth quarter of 2012 included $80 million of
impairment and other charges.
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