EX-12.1 4 wdc-2018q4ex121.htm EX 12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit 12.1
Western Digital Corporation
Computation of Ratio of Earnings to Fixed Charges

| Fiscal Year
| 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018
| (in millions)
Computation of earnings: |  |  |  |  |  |  |  |  |
Income before provision for income taxes | $ | 1,752 |  |  | $ | 1,577 |  |  | $ | 153 |  |  | $ | 769 |  |  | $ | 2,085 |
Fixed charges | 75 |  |  | 69 |  |  | 285 |  |  | 871 |  |  | 692 |
Undistributed equity in income from 50%-or-less-owned affiliates | — |  |  | — |  |  | (1 | ) |  | (6 | ) |  | (3 | )
Adjusted earnings | $ | 1,827 |  |  | $ | 1,646 |  |  | $ | 437 |  |  | $ | 1,634 |  |  | $ | 2,774 |
Computation of fixed charges: |  |  |  |  |  |  |  |  |
Interest expense | $ | 56 |  |  | $ | 49 |  |  | $ | 266 |  |  | $ | 847 |  |  | $ | 676 |
Interest relating to lease guarantee of 50%-or-less-owned affiliates | — |  |  | — |  |  | — |  |  | 6 |  |  | — |
Estimated interest portion of operating lease expense (1) | 19 |  |  | 20 |  |  | 19 |  |  | 18 |  |  | 16 |
Fixed charges | $ | 75 |  |  | $ | 69 |  |  | $ | 285 |  |  | $ | 871 |  |  | $ | 692 |
Ratio of earnings to fixed charges | 24.4 | x |  | 23.9 | x |  | 1.5 | x |  | 1.9 | x |  | 4.0 | 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.