Western Digital Corp. Files 10-Q for Period Ending December 29, 2023

TL;DR

<b>Western Digital Corp. filed its quarterly report (10-Q) for the period ending December 29, 2023, on February 12, 2024.</b>

AI Summary

WESTERN DIGITAL CORP (WDC) filed a Quarterly Report (10-Q) with the SEC on February 12, 2024. The filing covers the period ending December 29, 2023. Western Digital Corp. is identified by Central Index Key 0000106040. The company's Standard Industrial Classification is Computer Storage Devices [3572]. The filing was submitted on February 12, 2024. The company's fiscal year ends on July 3rd.

Why It Matters

For investors and stakeholders tracking WESTERN DIGITAL CORP, this filing contains several important signals. This 10-Q filing provides a detailed look into Western Digital's financial performance and operational status during the specified quarter. Investors and analysts can use this report to assess the company's financial health, identify trends, and make informed investment decisions.

Risk Assessment

Risk Level: medium — WESTERN DIGITAL CORP shows moderate risk based on this filing. The filing is a standard 10-Q, which provides a snapshot of financial health but lacks forward-looking statements or significant disclosures that would indicate immediate high risk or reward.

Analyst Insight

Monitor future filings for detailed financial results and strategic updates from Western Digital Corp.

Key Numbers

• 20231229 — Conformed Period of Report (Fiscal quarter end date)
• 20240212 — Filed as of Date (Date the report was filed)
• 0703 — Fiscal Year End (Company's fiscal year end month and day)
• 330956711 — IRS Number (Company's IRS identification number)
• DE — State of Incorporation (State where the company is incorporated)

Key Players & Entities

• WESTERN DIGITAL CORP (company) — Filer name
• 0000106040 (company) — Central Index Key
• 3572 (company) — Standard Industrial Classification
• 20231229 (date) — Conformed Period of Report
• 20240212 (date) — Filed as of date
• 5601 GREAT OAKS PARKWAY (address) — Business Address Street 1
• SAN JOSE (location) — Business Address City
• 9496727000 (phone) — Business Phone

Forward-Looking Statements

• Western Digital will continue to focus on its core computer storage devices business. (WESTERN DIGITAL CORP) — high confidence, target: 2024-12-31

FAQ

Industry Context

Western Digital Corp. operates in the computer storage devices industry, a sector characterized by rapid technological advancements and competitive pricing.

Regulatory Implications

The company is subject to various U.S. federal and state regulations governing corporate reporting and financial disclosures, as evidenced by this 10-Q filing.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze trends in revenue, expenses, and profitability from previous filings.
3. Compare Western Digital's performance against industry benchmarks and competitors.

Year-Over-Year Comparison

This filing is a standard quarterly report (10-Q) and does not inherently indicate a change from the previous filing's status without comparative data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value Per Share WDC The Nasdaq Stoc

Filing Documents

• wdc-20231229.htm (10-Q) — 1893KB
• wdc-2024q2ex311.htm (EX-31.1) — 8KB
• wdc-2024q2ex312.htm (EX-31.2) — 8KB
• wdc-2024q2ex321.htm (EX-32.1) — 4KB
• wdc-2024q2ex322.htm (EX-32.2) — 4KB
• wdc-20231229_g1.gif (GRAPHIC) — 16KB
• 0000106040-24-000014.txt (&nbsp;) — 10878KB
• wdc-20231229.xsd (EX-101.SCH) — 68KB
• wdc-20231229_cal.xml (EX-101.CAL) — 97KB
• wdc-20231229_def.xml (EX-101.DEF) — 351KB
• wdc-20231229_lab.xml (EX-101.LAB) — 870KB
• wdc-20231229_pre.xml (EX-101.PRE) — 603KB
• wdc-20231229_htm.xml (XML) — 1930KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Balance Sheets — As of December 29, 2023 and June 30, 2023 6 Condensed Consolidated Statements of Operations — Three and Six Months Ended December 29, 2023 and December 30, 2022 7 Condensed Consolidated Statements of Comprehensive Loss — Three and Six Months Ended December 29, 2023 and December 30, 2022 8 Condensed Consolidated Statements of Cash Flows — Six Months Ended December 29, 2023 and December 30, 2022 9 Condensed Consolidated Statements of Convertible Preferred Stock and Shareholders' Equity — Six Months Ended December 29, 2023 and December 30, 2022 10 Notes to Condensed Consolidated Financial Statements 12

Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk 59

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59

Controls and Procedures 59

Item 4. Controls and Procedures 59

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings 60

Item 1. Legal Proceedings 60

Risk Factors 60

Item 1A. Risk Factors 60

Other Information

Item 5. Other Information 62

Exhibits 62

Item 6. Exhibits 62 Unless otherwise indicated, references herein to specific years and quarters are to our fiscal years and fiscal quarters, and references to financial information are on a consolidated basis. As used herein, the terms "we," "us," "our," the "Company," "WDC" and "Western Digital" refer to Western Digital Corporation and its subsidiaries, unless we state, or the context indicates, otherwise. WDC, a Delaware corporation, is the parent company of our data storage business. Our principal executive offices are located at 5601 Great Oaks Parkway, San Jose, California 95119. Our telephone number is (408) 717-6000. Western Digital, the Western Digital logo, SanDisk, and WD are registered trademarks or trademarks of Western Digital or its affiliates in the U.S. and/or other countries. All other trademarks, registered trademarks and/or service marks, indicated or otherwise, are the property of their respective owners. 3 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of the federal securities laws. Any statements that do not relate to historical or current facts or matters are forward-looking statements. You can identify some of the forward-looking statements by the use of forward-looking words, such as "may," "will," "could," "would," "project," "believe," "anticipate," "expect," "estimate," "continue," "potential," "plan," "forecast," and the like, or the use of future tense. Statements concerning current conditions may also be forward-looking if they imply a continuation of current conditions. Examples of forward-looking statements include, but are not limited to, statements concerning: expectations regarding our plan to separate our HDD and Flash business units; the global macroeconomic environment; expectations regarding demand trends and market conditions for our products; expectations regarding long-term growth opportunities; expectations regarding our product momentum and product development and technology plans; expectations regarding capital expenditure plans and investments, including relating to our Flash Ventures joint venture with Kioxia Corporation ("Kioxia"), and sources of funding for related expenditures; expectations regarding our effective tax rate and our unrecognized tax benefits; our ability to improve through-cycle profitability; and our beliefs regarding our capital allocation plans and the sufficiency of our available liquidity and access to capital markets to meet our working capital, debt and capital expenditure needs. These forward-looking statements are based on management's current expectations, represent the most current information available to the Company as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and other factors that could cause actual results or performance to differ materially from those expressed or implied in the forward-looking

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except par value) (Unaudited) December 29, 2023 June 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,481 $ 2,023 Accounts receivable, net 1,523 1,598 Inventories 3,216 3,698 Other current assets 618 567 Total current assets 7,838 7,886 Property, plant and equipment, net 3,315 3,620 Notes receivable and investments in Flash Ventures 1,344 1,410 Goodwill 10,037 10,037 Other intangible assets, net 79 80 Other non-current assets 1,772 1,513 Total assets $ 24,385 $ 24,546 LIABILITIES, CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,504 $ 1,293 Accounts payable to related parties 251 292 Accrued expenses 1,037 1,288 Income taxes payable 506 999 Accrued compensation 353 349 Current portion of long-term debt 1,042 1,213 Total current liabilities 4,693 5,434 Long-term debt 7,351 5,857 Other liabilities 1,397 1,415 Total liabilities 13,441 12,706 Commitments and contingencies (Notes 9, 10, 12 and 16) Convertible preferred stock, $ 0.01 par value; authorized — 5 shares; issued and outstanding — 1 shares; aggregate liquidation preference of $ 953 and $ 924 , respectively 876 876 Shareholders' equity: Common stock, $ 0.01 par value; authorized — 450 shares; issued and outstanding — 326 shares and 322 shares, respectively 3 3 Additional paid-in capital 3,957 3,936 Accumulated other comprehensive loss ( 493 ) ( 548 ) Retained earnings 6,601 7,573 Total shareholders' equity 10,068 10,964 Total liabilities, convertible preferred stock and shareholders' equity $ 24,385 $ 24,546 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 6 Table of Contents WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Three Months Ended Six Months E

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View this 10-Q filing on SEC EDGAR