Exhibit 99.1

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial ResultsNews Summary•

Fourth quarter revenue was $3.76 billion, up 9% sequentially (QoQ). Cloud revenue increased 21% (QoQ),
Client revenue increased 3% (QoQ) and Consumer revenue decreased 7% (QoQ). Fiscal year 2024 revenue
was $13.00 billion.

•

Fourth quarter GAAP earnings per share (EPS) was $0.88 and Non-GAAP EPS was $1.44. Fiscal year
2024 GAAP EPS was $(1.72) and Non-GAAP EPS was $(0.20).

•

Expect fiscal first quarter 2025 revenue to be in the range of $4.00 billion to $4.20 billion.

•

Expect Non-GAAP EPS in the range of $1.55 to $1.85.

SAN JOSE, Calif., — July 31, 2024 — Western Digital Corp. (Nasdaq: WDC) today reported fiscal fourth quarterand fiscal year 2024 financial results.

“Our fourth quarter and fiscal year 2024 results are reflective of the diverse and innovative portfolio we havedeveloped in alignment with our strategic roadmap. Together, with the structural changes we have made tostrengthen our operations, we are benefitting from the broad recovery we are seeing across our end markets andstructurally improving through-cycle profitability for both Flash and HDD,” said David Goeckeler, Western Digital
CEO.
“The emergence of the AI Data Cycle marks a transformational period within our industry that will drive
fundamental shifts across our end markets, increasing the need for storage and creating new demand drivers. As welook ahead, we are confident in our ability to leverage our technology leadership position to capitalize on these
exciting growth opportunities and deliver value for our customers,” continued David Goeckeler.

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 2Q4 2024 Financial Highlights
GAAP

Non-GAAP

Q4 2024

Q3 2024

Q/Q

Q4 2024

Q3 2024

Q/Q

Revenue ($M)

$3,764$3,457up 9%$3,764$3,457up 9%Gross Margin

35.9%

29.0%

up 6.9 ppt

36.3%

29.3%

up 7.0 ppt

Operating Expenses ($M)

$846

$728

up 16%$700$632

up 11%

Operating Income ($M)

$507

$273

up 86%$666$380

up 75%

Diluted Net Income Attributable to
Common Shareholders ($M)

$308

$113

up 173%

$504

$210

up 140%Net Income Per Share

$0.88

$0.34

up 159%

$1.44

$0.63

up 129%* not a meaningful figure

GAAP

Non-GAAP

Q4 2024

Q4 2023

Y/Y

Q4 2024

Q4 2023

Y/Y

Revenue ($M)

$3,764$2,672up 41%$3,764$2,672up 41%

Gross Margin

35.9%

3.4%

up 32.5 ppt

36.3%

3.9%

up 32.4 ppt

Operating Expenses ($M)

$846

$742

up 14%$700$582

up 20%

Operating Income (Loss) ($M)$507$(650)*$666$(478)*

Diluted Net Income (Loss) Attributable to
Common Shareholders ($M)$308$(724)*$504($640)*Net Income (Loss) Per Share$0.88$(2.26)*$1.44$(1.99)** not a meaningful figure

The company had an operating cash inflow of $366 million and ended the quarter with $1.88 billion of total cash
and cash equivalents.

Fiscal Year 2024 Financial Highlights
GAAP
Revenue ($M)

Non-GAAP

2024

2023

Y/Y

2024

2023

Y/Y

$13,003$12,318

up 6%$13,003$12,318

up 6%

Gross Margin

22.6%

15.3%

up 7.3 ppt

22.8%

15.7%

up 7.1 ppt

Operating Expenses ($M)

$2,971$3,172

down 6%$2,448$2,532

down 3%Operating Income (Loss) ($M)$(26)$(1,285)

down 98%$512$(594)*

Diluted Net Loss Attributable to Common
Shareholders ($M)$(561)$(1,708)

down 67%$(65)$(1,133)

down 94%

Net Loss Per Share$(1.72)$(5.37)

down 68%$(0.20)$(3.56)

down 94%* not a meaningful figure

Additional details can be found within the company’s earnings presentation, which is accessible online atinvestor.wdc.com.

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 3

End Market Summary
Revenue ($M)

Q4 2024 Q3 2024

Q/Q

Q4 2023

Y/Y

2024

2023

Y/Y

Cloud

$1,882$1,553

Client

1,204

1,174

up 21%$994

up 89%$5,378$5,252

up 2%

up 3%

1,035

up 16%

4,647

4,328

up 7%

Consumer

678

730

down 7%

643

up 5%

2,978

2,738

up 9%

Total Revenue$3,764$3,457up 9%$2,672up 41%$13,003$12,318

up 6%

In the fiscal fourth quarter:•

Cloud represented 50% of total revenue. The sequential growth is attributed to higher nearline shipments
and pricing in HDD, coupled with increased bit shipments and pricing in enterprise SSDs. The year-overyear increase was due to higher shipments and price per unit in nearline HDDs, along with higher
enterprise SSD bit shipments.

•

Client represented 32% of total revenue. The sequential increase was due to the increase in flash ASPs
offsetting a decline in flash bit shipments while HDD revenue decreased slightly. The year-over-year
growth was driven by higher flash ASPs.

•

Consumer represented 18% of total revenue. Sequentially, the decrease was due to lower flash and HDD bit
shipments partially offset by higher ASPs in both flash and HDD. The year-over-year increase was driven
by improved flash ASPs and bit shipments.

In fiscal year 2024:•

Cloud represented 41% of total revenue. The year-over-year increase was due to higher demand forcapacity enterprise HDDs and improved pricing.

•

Client represented 36% of total revenue. The year-over-year increase was due to higher flash bit shipments.

•

Consumer represented 23% of total revenue. The year-over-year increase was due to higher flash bit
shipments.

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 4

Business Outlook for Fiscal First Quarter of 2025
Three Months Ending

September 27, 2024
GAAP(1)

Non-GAAP(1)Revenue ($B)

$4.00 - $4.20$4.00 - $4.20

Gross margin

36.5% - 38.5%

37.0% - 39.0%

Operating expenses ($M)$845 - $885

$695 - $715

Interest and other expense, net ($M)

~ $110~ $110Tax rate % (2)N/A

15% - 17%

Diluted earnings per share

N/A$1.55 - $1.85

Diluted shares outstanding (in millions)

~ 360

~ 360

(1) Non-GAAP gross margin guidance excludes amortization of acquired intangible assets and stock-based
compensation expense of approximately $10 million to $20 million. The company’s Non-GAAP operating expenses
guidance excludes stock-based compensation expense and expenses related to business separation costs, totaling
approximately $150 million to $170 million. In the aggregate, Non-GAAP diluted earnings per share guidance
excludes these items totaling approximately $160 million to $190 million. The timing and amount of these charges
excluded from Non-GAAP gross margin, Non-GAAP operating expenses, and Non-GAAP diluted earnings per
share cannot be further allocated or quantified with certainty. The timing and amount of additional charges thecompany excludes from its Non-GAAP income tax expense and Non-GAAP diluted earnings per share depend on
the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliationsof Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP income tax expense and Non-GAAP
diluted earnings per share to the most directly comparable GAAP financial measures (GAAP gross profit, GAAP
operating expenses, income tax expense and diluted earnings per share, respectively) are not available without
unreasonable effort.
(2) Non-GAAP tax rate is determined based on a percentage of Non-GAAP pre-tax income or loss. Our estimated
Non-GAAP tax rate may differ from our GAAP tax rate (i) due to differences in the tax treatment of items excluded
from our Non-GAAP net income or loss; (ii) the fact that our GAAP income tax expense or benefit recorded in any
interim period is based on an estimated forecasted GAAP tax rate for the full year, excluding loss jurisdictions; and(iii) because our GAAP taxes recorded in any interim period are dependent on the timing and determination ofcertain GAAP operating expenses.

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 5

Accounting Assessment for Recent Development in Litigation Matter
On July 26, 2024, a jury awarded a lump sum of $262 million against a subsidiary of the company in a patent
infringement action. The company respectfully disagrees with the jury’s verdict, continues to believe it has
meritorious arguments to the judgment, and plans to appeal. In addition to the lump sum amount, the company
anticipates that the plaintiff will request costs, attorney’s fees and interest.

The company is currently evaluating the appropriate accounting treatment for this matter, and the financial
information reported in this press release does not include the impact of these recent developments, pending
completion of that assessment. The company expects to complete its accounting assessment in connection with the
preparation of its Annual Report on Form 10-K, which it expects to file on or before August 27, 2024. As a result,the company expects that the financial information included in that report will differ from the preliminary fiscal
fourth quarter US GAAP financial results reported in this press release. The company does not expect a change to its
reported Non-GAAP financial results in connection with its assessment of this matter.

Revisions to Prior Period Financial Results
As previously reported, in connection with the preparation of its condensed consolidated financial statements as ofand for the three and six months ended December 29, 2023, the company identified certain errors related to thecompany’s reporting and recording of its interests in its equity method investments in Flash Ventures. These errors
related to unadjusted differences between Flash Ventures’ application of Japanese generally accepted accounting
principles to certain lease-related transactions compared to the applicable U.S. generally accepted accounting
principles. These unadjusted differences resulted in differences in the equity in earnings from these entities
recognized by the company in Other income (expense), net and the carrying value of the company’s equity method
investments in Flash Ventures in the unaudited condensed consolidated financial statements. The company evaluatedthe errors and determined the related impacts were not material to its financial statements for the prior periods when
they occurred. The company has revised previously reported financial information for such immaterial errors, andthe unaudited preliminary condensed consolidated financial statements included in this press release incorporate
revisions made to correct these errors for the periods presented. Please refer to the tables outlining revisions toresults of operations in the company's earnings presentation, which is accessible online at investor.wdc.com, and tothe company's upcoming Annual Report on Form 10-K for the fiscal year ended June 28, 2024, for additional
information related to these revisions.

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 6

Investor Communications
The investment community conference call to discuss these results and the company’s business outlook for the fiscal
first quarter of 2025 will be broadcast live online today at 1:30 p.m. Pacific/4:30 p.m. Eastern. The live and archived
conference call/webcast and the earnings presentation can be accessed online at investor.wdc.com.

About Western Digital
Western Digital is on a mission to unlock the potential of data by harnessing the possibility to use it. With Flash and
HDD franchises, underpinned by advancements in storage technologies, we create breakthrough innovations andpowerful data storage solutions that enable the world to actualize its aspirations. Core to our values, we recognize
the urgency to combat climate change and have committed to ambitious carbon reduction goals approved by the
Science Based Targets initiative. Learn more about Western Digital and the Western Digital®, SanDisk® and WD®
brands at www.westerndigital.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including
statements regarding expectations for: the company’s business outlook and financial performance for the fiscal firstquarter of 2025 and beyond; the impact of the company’s product portfolio, strategic roadmap and operational
updates on financial performance and future profitability; market conditions and growth opportunities; thecontinuation and effect of the company's technology leadership; the impact of the AI Data Cycle on the company’s
industry, end markets, products and performance; the merits of the company’s position in certain litigation matters;
the timing and impact on financial results of the company’s completion of its accounting assessment related to recent
developments in a litigation matter; and the timing for filing the company’s Annual Report on Form 10-K. These
forward-looking statements are based on management’s current expectations and are subject to risks anduncertainties that could cause actual results to differ materially from those expressed or implied in the forwardlooking statements. The preliminary financial results for the company’s fiscal fourth quarter and year ended June 28,2024 included in this press release represent the most current information available to management. Actual results
when disclosed in the company’s Form 10-K may differ from these preliminary results as a result of the completionof the company’s financial closing procedures, including completion of the annual assessment of impairment of
goodwill; final adjustments; completion of the audit by the company’s independent registered accounting firm; andother developments that may arise between now and the filing of the company’s Form 10-K. Other key risks anduncertainties that could cause actual results to differ materially from those expressed or implied in the forwardlooking statements include: volatility in global economic conditions and demand for the company's products;
operational, financial and legal challenges and difficulties inherent in implementing a separation of the company’s

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Page 7

HDD and Flash businesses; the final approval of the separation by the company’s board of directors; inflation;
increase in interest rates and economic recession; future responses to and effects of global health crises; the impact
of business and market conditions; the outcome and impact of the company’s announced separation transaction,
including with respect to customer and supplier relationships, regulatory and contractual restrictions, stock pricevolatility and the diversion of management’s attention from ongoing business operations and opportunities; theimpact of competitive products and pricing; the company’s development and introduction of products based on newtechnologies and expansion into new data storage markets; risks associated with cost saving initiatives,
restructurings, acquisitions, divestitures, mergers, joint ventures and the company’s strategic relationships;
difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; thecompany’s level of debt and other financial obligations; changes to the company’s relationships with key customers;
compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions bycompetitors; the company’s ability to achieve its GHG emissions reduction and other ESG goals; the impact ofinternational conflicts; risks associated with compliance with changing legal and regulatory requirements and theoutcome of legal proceedings; and other risks and uncertainties listed in the company’s filings with the Securities
and Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K filed with the SEC
on August 22, 2023 and Quarterly Reports on Form 10-Q filed with the SEC on November 7, 2023 and February 12,2024, to which your attention is directed. You should not place undue reliance on these forward-looking statements,
which speak only as of the date hereof, and the company undertakes no obligation to update or revise these forwardlooking statements to reflect new information or events, except as required by law.

###
Western Digital, the Western Digital logo, SanDisk and WD are registered trademarks or trademarks of Western Digital Corporation or its
affiliates in the US and/or other countries.

WESTERN DIGITAL CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS(in millions; unaudited; on a US GAAP basis)

June 28,2024

June 30,2023

ASSETS
Current assets:
Cash and cash equivalents

$

1,879

$

2,023

Accounts receivable, net

2,166

1,598

Inventories

3,342

3,698

Other current assets

673

567

Total current assets

8,060

7,886

3,167

3,620

Property, plant and equipment, net
Notes receivable and investments in Flash Ventures
Goodwill

991

1,410

10,032

10,037

Other intangible assets, net

7880

Other non-current assets

1,767

1,513

Total assets$

24,095$24,546

1,411

$

1,293

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITYCurrent liabilities:
Accounts payable$

Accounts payable to related parties
Accrued expenses

313

292

1,096

1,288

Income taxes payable

525

999

Accrued compensation

608

349

Current portion of long-term debt

1,750

1,213

Total current liabilities

5,703

5,434

Long-term debt

5,684

5,857

Other liabilities

1,370

1,415

12,757

12,706229

876

Total liabilities
Convertible preferred stock, aggregate liquidation preference of $257 and $924, respectively
Total shareholders’ equity
Total liabilities, convertible preferred stock and shareholders’ equity

11,109$24,095

10,964$24,546

WESTERN DIGITAL CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share amounts; unaudited; on a US GAAP basis)Three Months Ended
June 28,
2024
Revenue, net$

Years Ended

June 30,
2023

3,764

$

June 28,
2024

2,672

$

June 30,2023

13,003$

12,318

Cost of revenue

2,411

2,580

10,05810,431Gross profit

1,353

92

2,945

1,887

Research and development

538

458

1,907

2,009

Selling, general and administrative

220

231

828

970

Employee termination, asset impairment, and other

50

53

139

193

Operating expenses:

Business separation costs

38

—

97

—

Total operating expenses

846

742

2,971

3,172

507

(650)

(26)

(1,285)

Operating income (loss)
Interest and other income (expense):
Interest income

9

9

39

24

Interest expense

(103)

(89)

(417)

(312)

Other income (expense), net

(20)

(4)

34

23

Interest and other income (expense)

(114)

(84)

(344)

(265)

Income (loss) before taxes

393

(734)

(370)

(1,550)

Income tax expense (benefit)

63

(25)

137

134

Net income (loss)

330

(709)

(507)

(1,684)

Less: cumulative dividends allocated to preferred shareholders

10

15

54

24

Less: income attributable to preferred shareholders

13

—

—

—

Net income (loss) attributable to common shareholders

$

307

$

(724)

$

(561)

$

(1,708)

Basic

$

0.92

$

(2.26)$(1.72)$(5.37)

Diluted

$

0.88

$

(2.26)$(1.72)$(5.37)Net income (loss) per common share:

Weighted average shares outstanding:
Basic

333

321

326

318

Diluted

349

321

326

318

WESTERN DIGITAL CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions; unaudited; on a US GAAP basis)Three Months Ended
June 28,
2024

Years Ended

June 30,
2023

June 28,2024

June 30,2023

Operating Activities
Net income (loss)

$

330

$

(709) $

(507)$

(1,684)

Adjustments to reconcile net income (loss) to net cash provided by (usedin) operations:
Depreciation and amortization

138

185

568

828

Stock-based compensation

69

72

295

318

Deferred income taxes

(41)

(78)

(161)

(48)

Gain on disposal of assets

—

—

(87)

(7)

Non-cash asset impairment

59

1

158

19

Amortization of debt issuance costs and discounts

5

4

19

13

Other non-cash operating activities, net

(1)

69

19

61
1,206

Changes in:
Accounts receivable, net

(366)

(7)

(568)

Inventories

(127)

281

356

(60)

33

(17)

244

(459)

Accounts payable
Accounts payable to related parties

3

26

21

(28)

123

132

(187)

(352)

Income taxes payable

50

(14)

(474)

130

Accrued compensation

162

7

259

(162)

Accrued expenses

Other assets and liabilities, net
Net cash provided by (used in) operating activities
Investing Activities
Purchases of property, plant and equipment, net

(71)

(20)

(249)

(183)

366

(68)

(294)

(408)

(116)

(119)

(292)

(807)

Activity related to Flash Ventures, net

32

(32)

239

14

Strategic investments and other, net

26

9

26

31

(58)

(142)

(27)

(762)

Employee stock plans, net

18

33

(8)

13

Proceeds from convertible preferred stock, net of issuance costs

—

(1)

(5)

881

Purchase of capped calls

—

—

(155)

—

Repurchases of debt

—

—

(505)

—

(337)

—

896

—

—

(13)

(36)

(19)
875

Net cash used in investing activities
Financing Activities

Proceeds from debt, net of repayments
Debt issuance costs

(319)

19

187

Effect of exchange rate changes on cash

Net cash provided by (used in) financing activities

(4)

(6)

(10)

(9)

Net decrease in cash and cash equivalents

(15)

(197)

(144)

(304)

Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

1,894
$

1,879

2,220
$

2,023

2,023
$

1,879

2,327
$

2,023

WESTERN DIGITAL CORPORATION
SUPPLEMENTAL OPERATING SEGMENT RESULTS(in millions; except percentages; unaudited)Three Months Ended
June 28,
2024

Years Ended

June 30,
2023

June 28,2024

June 30,2023

Net revenue:
Flash

$

HDD

1,761

$

2,003

Total net revenue

1,377

$

6,687

1,295

$

6,063
12,318

6,316

6,255

$

3,764

$

2,672

$

13,003

$

$

642

$

(164)

$

1,079

$

Gross profit:
Flash
HDD

433

724

268

1,881

1,505

1,366

104

2,960

1,938

Stock-based compensation expense

(12)

(11)

(49)

(49)

Amortization of acquired intangible assets

(1)

1

(3)

—

Recovery from contamination incident

—

—

37

—

Other

—

(2)

—

(2)

(13)

(12)

(15)

(51)

Total gross profit for segments
Unallocated corporate items:

Total unallocated corporate items
Consolidated gross profit

$

1,353

$

92

$

2,945

$

1,887

Gross margin:
Flash36.5 %(11.9) %16.1 %

7.1 %HDD

36.1 %

20.7 %

29.8 %

24.1 %

Total gross margin for segments

36.3 %

3.9 %

22.8 %

15.7 %

Consolidated gross margin

35.9 %

3.4 %

22.6 %

15.3 %

The company manages and reports under two reportable segments: flash-based products (“Flash”) and hard disk drives(“HDD”). In the table above, total gross profit for segments and total gross margin for segments are Non-GAAP financial
measures, which are also referred to herein as Non-GAAP gross profit and Non-GAAP gross margin, respectively.

WESTERN DIGITAL CORPORATIONPRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(in millions; unaudited)Three Months Ended
June 28,2024
GAAP gross profit$

March 29,
2024

1,353

$

Years Ended
June 30,
2023

1,001

$

June 28,
2024
92

$

June 30,
2023

2,945

$

1,887

Stock-based compensation expense

12

11

11

49

49

Amortization of acquired intangible assets

1

1

(1)

3

—

Recovery from contamination incident

—

(1)

—

(37)

—

Other

—

—

2

—

2

Non-GAAP gross profit

$

1,366

$

1,012

$

104

$

2,960

$

1,938

GAAP operating expenses

$

846

$

728

$

742

$

2,971

$

3,172

Stock-based compensation expense

(57)

(66)

Business separation costs

(38)

(23)

—

(97)

—

Employee termination, asset impairment, and other

(50)

(8)

(53)

(139)

(193)

Strategic review

—

—

(27)

(37)

(42)

Amortization of acquired intangible assets

—

—

(17)

—

(133)

Other

(1)

(61)

1

(246)

(2)

(269)

(4)

Non-GAAP operating expenses

$

700

$

632

$

582

$

GAAP operating income (loss)

$

507

$

273

$

(650)

$

2,448

(3)
$

2,532

(26) $(1,285)Gross profit adjustments

13

11

12

15

51

Operating expense adjustments

146

96

160

523

640

Non-GAAP operating income (loss)

$

666

$

380

$

(478) $

512

$

(594)

GAAP interest and other income (expense), net

$

(114)

$

(95)

$

(84)

$

(344) $

(265)

(61)

(13)

Non-GAAP interest and other income (expense), net

$

(114)

$

(92)

$

(90)

$

(405) $

(278)

GAAP income tax expense (benefit)

$

63

$

43

$

(25) $

137

134

82

(19)

Other

—

Income tax adjustments
Non-GAAP income tax expense

3

(46)
$

17

(6)

8
$

51

$

57

$

118

$

103
$

237

WESTERN DIGITAL CORPORATIONPRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(in millions, except per share amounts; unaudited)Three Months Ended
June 28,2024
GAAP net income (loss)$

March 29,
2024

330

$

Years Ended
June 30,
2023

135

$

June 28,2024

June 30,2023(709) $

(507) $

(1,684)

Stock-based compensation expense

69

77

72

295

318

Business separation costs

38

23

—

97

—

Employee termination, asset impairment and other

50

8

53

139

193

Strategic review

—

—

27

37

42

Amortization of acquired intangible assets

1

1

16

3

133

Recovery from contamination incident

—

(1)

—

(37)

—

Other

1

2

(2)

(57)

(8)

Income tax adjustments

46

(8)

(82)

19

(103)

Non-GAAP net income (loss)

535

237

(625)

(11)

(1,109)Less: amount allocated to preferred shareholders

15

54

24

$

504

$

210

$

(640) $

(65) $(1,133)

GAAP

$

0.88

$

0.34

$

(2.26) $(1.72) $(5.37)

Non-GAAP

$

1.44

$

0.63

$

(1.99) $(0.20) $(3.56)

Non-GAAP diluted net income (loss) attributable to commonshareholders

31

27

Diluted income (loss) per common share

Diluted weighted average shares outstanding:
GAAP

349

335

321

326

318

Non-GAAP

349

335

321

326

318

Cash flows
Cash flow provided by (used in) operating activities$

Purchases of property, plant and equipment, net
Activity related to Flash Ventures, net
Free cash flow$(68) $(294) $

(408)

(116)

366

(95)

(119)

(292)

(807)

32

128

(32)

239

14

(219) $

(347) $

(1,201)

282

$

$

58

91

$

$

To supplement the condensed consolidated financial statements presented in accordance with U.S. generally accepted
accounting principles (“GAAP”), the table above sets forth Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP
operating expenses; Non-GAAP operating income and loss; Non-GAAP interest and other expense, net; Non-GAAP income tax
expense; Non-GAAP net income and loss; Non-GAAP diluted income and loss per common share and free cash flow (“NonGAAP measures”). These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared inaccordance with GAAP and may be different from Non-GAAP measures used by other companies. The company believes thepresentation of these Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides
useful information to investors for measuring the company’s earnings performance and comparing it against prior periods.
Specifically, the company believes these Non-GAAP measures provide useful information to both management and investors as
they exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or
because they are consistent with the financial models and estimates published by many analysts who follow the company andits peers. As discussed further below, these Non-GAAP measures exclude, as applicable, stock-based compensation expense,
business separation costs, employee termination, asset impairment, and other, expenses related to our strategic review,
amortization of acquired intangible assets, recovery from contamination incident, other adjustments, and income tax
adjustments, and the company believes these measures along with the related reconciliations to the GAAP measures provide
additional detail and comparability for assessing the company’s results. These Non-GAAP measures are some of the primary
indicators management uses for assessing the company’s performance and planning and forecasting future periods. These
measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results.

As described above, the company excludes the following items from its Non-GAAP measures:

Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies fordetermining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility
in valuations that can be driven by market conditions outside the company’s control, the company believes excluding stockbased compensation expense enhances the ability of management and investors to understand and assess the underlying
performance of its business over time and compare it against the company’s peers, a majority of whom also exclude stockbased compensation expense from their Non-GAAP results.

Business separation cost. The company incurred expenses associated with the separation of its HDD and Flash business units tocreate two independent, public companies. The company believes these charges do not reflect the company's operating results
and that they are not indicative of the underlying performance of its business.

Employee termination, asset impairment, and other. From time-to-time, in order to realign the company’s operations with
anticipated market demand or to achieve cost synergies from the integration of acquisitions, the company may terminate
employees and/or restructure its operations. From time-to-time, the company may also incur charges from the impairment ofintangible assets and other long-lived assets. In addition, the company may record credits related to gains upon sale of property
due to restructuring or reversals of charges recorded in prior periods. In addition, the company has taken actions to reduce theamount of capital invested in facilities, including the sale-leaseback of facilities. These charges or credits are inconsistent inamount and frequency, and the company believes they are not indicative of the underlying performance of its business.

Strategic review. The company incurred expenses associated with its review of strategic alternatives that resulted in the planned
separation of its HDD and Flash business units to create two independent, public companies. The company believes thesecharges do not reflect the company’s operating results and that they are not indicative of the underlying performance of its
business.

Amortization of acquired intangible assets. The company incurs expenses from the amortization of acquired intangible assets
over their economic lives. Such charges are significantly impacted by the timing and magnitude of the company’s acquisitions
and any related impairment charges.

Recovery from contamination incident. In February 2022, a contamination of certain materials used in the company's
manufacturing process occurred and affected production operations at the flash-based memory manufacturing facilities in
Yokkaichi and Kitakami, Japan, which are operated through the company's joint business ventures with Kioxia Corporation(collectively, "Flash Ventures"). The contamination resulted in scrapped inventory and rework costs, decontamination and othercosts needed to restore the facilities to normal capacity, and under absorption of overhead costs which were expensed as
incurred. During the quarters ended December 29, 2023 and March 29, 2024, the company received recoveries of these losses
from other parties. The contamination charges and the related recoveries were inconsistent in amount and frequency, and thecompany believes they were not part of the ongoing production operation of its business.

Other adjustments. From time-to-time, the company sells or impairs investments or other assets which are not considerednecessary to its business operations, or incurs other charges or gains that the company believes are not a part of the ongoing
operation of its business. The resulting expense or benefit is inconsistent in amount and frequency.

Income tax adjustments. Income tax adjustments include the difference between income taxes based on a forecasted annual
Non-GAAP tax rate and a forecasted annual GAAP tax rate as a result of the timing of certain Non-GAAP pre-tax adjustments.
The income tax adjustments also include adjustments to estimates related to the current status of the rules and regulations
governing the transition to the Tax Cuts and Jobs Act and the re-measurement of certain unrecognized tax benefits primarily
related to tax positions taken in prior quarters, including interest. These adjustments are excluded because the company believes
that they are not indicative of the underlying performance of its ongoing business.

Additionally, free cash flow is defined as cash flows provided by (used in) operating activities less purchases of property, plantand equipment, net, and the activity related to Flash Ventures, net. The company considers free cash flow generated in any
period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in thecompany’s business, making strategic acquisitions, repaying debt and strengthening the balance sheet.

___________________
Contacts:
Western Digital Corp.
Investor Contact:
T. Peter Andrew
949.672.9655
peter.andrew@wdc.com
investor@wdc.com

Media Contact:
Media Relations
408.801.0021
WD.Mediainquiries@wdc.com