EX-12.1 6 wdc-2017q2ex121computation.htm EX 12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1

Western Digital Corporation
Computation of Ratio of Earnings to Fixed Charges

 
Fiscal Year
 
Six Months Ended December 30, 2016
 
2012
 
2013
 
2014
 
2015
 
2016
 
 
(in millions, except ratios)
Computation of earnings:
 
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
$
1,757

 
$
1,222

 
$
1,752

 
$
1,577

 
$
153

 
$
50

Fixed charges
47

 
75

 
75

 
69

 
285

 
455

Undistributed equity in income from 50%-or-less-owned affiliates
—

 
—

 
—

 
—

 
(1
)
 
(1
)
Adjusted earnings
$
1,804

 
$
1,297

 
$
1,827

 
$
1,646

 
$
437

 
$
504

Computation of fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
33

 
$
54

 
$
56

 
$
49

 
$
266

 
$
441

Interest relating to lease guarantee of 50%-or-less-owned affiliates
—

 
—

 
—

 
—

 
—

 
3

Estimated interest portion of operating lease expense (1)
14

 
21

 
19

 
20

 
19

 
11

Fixed charges
$
47

 
$
75

 
$
75

 
$
69

 
$
285

 
$
455

Ratio of earnings to fixed charges
38.4
x
 
17.3
x
 
24.4
x
 
23.9
x
 
1.5
x
 
1.1
x
 
 
(1) 
Interest is estimated at 33% of rental charges, which considers industry benchmarks and assumption of average debt service cost over the assumed life of the related property.