<PAGE> 1
==============================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------------------------------
FORM 11-K
[X] Annual Report pursuant to Section 15(d) of the Securities Exchange Act
of 1934 [Fee Required]
For the fiscal year ended June 30, 1996
OR
[ ] Transition Report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from _____ to _____
Commission File Number 1-8703
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
WESTERN DIGITAL CORPORATION
8105 Irvine Center Drive
Irvine, California 92618
<PAGE> 2
INTRODUCTION
Western Digital Corporation (the "Company") has established the Western
Digital Corporation Savings and Profit Sharing Plan (the "Plan"). The Plan is a
cash or deferred arrangement plan intended to qualify under Section 401(k) of
the Internal Revenue Code of 1986, as amended.
REQUIRED INFORMATION
I. Financial Statements:
These statements are listed in the Index to the Financial Statements.
II. Exhibits:
Consent of Independent Auditors.
2
<PAGE> 3
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the Plan) have duly
caused this annual report to be signed on its behalf by the undersigned,
hereunto duly authorized.
WESTERN DIGITAL CORPORATION
SAVINGS AND PROFIT SHARING PLAN
Date: December 23, 1996 By: /s/ DUSTON M. WILLIAMS
----------------- ----------------------
Duston M. Williams
Chairman of the Retirement
Plan Committee
3
<PAGE> 4
WESTERN DIGITAL CORPORATION
SAVINGS AND PROFIT SHARING PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report.......................................................... 5
Statements of Net Assets Available for Plan Benefits as of June 30, 1996 and 1995..... 6
Statements of Changes in Net Assets Available for Plan Benefits for the years ended
June 30, 1996 and 1995.............................................................. 7
Notes to Financial Statements......................................................... 8-17
Schedule I -- Item 27a -- Schedule of Assets Held for Investment Purposes............. 18
Schedule II -- Item 27d -- Schedule of Reportable Transactions........................ 19
</TABLE>
Schedules of Prohibited Transactions, Obligations in Default and Leases in
Default are not included herein because there were no such transactions during
the period.
4
<PAGE> 5
INDEPENDENT AUDITORS' REPORT
Retirement Plan Committee
Western Digital Corporation Savings and Profit Sharing Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Western Digital Corporation Savings and Profit Sharing Plan (the
"Plan") as of June 30, 1996 and 1995 and the related statements of changes in
net assets available for plan benefits for the years then ended, as listed in
the accompanying index. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Western
Digital Corporation Savings and Profit Sharing Plan as of June 30, 1996 and
1995, and the changes in net assets available for plan benefits for the years
then ended in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedules of Assets Held
for Investment Purposes and Reportable Transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
KPMG PEAT MARWICK LLP
Orange County, California
November 27, 1996
5
<PAGE> 6
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
(IN THOUSANDS)
<TABLE>
<CAPTION>
June 30,
---------------------
1996 1995
------- -------
<S> <C> <C>
Assets
Investments, at current value: (Notes 1, 2, 4 and 5)
Debt and equity securities ........................... $83,530 $58,290
Participant loans .................................... 3,898 2,684
------- -------
Total investments ............................... 87,428 60,974
Cash and cash equivalents ................................. 17 --
Receivables (Notes 2 and 3)
Participants' contributions .......................... 497 1,214
Employer's contribution .............................. 167 390
Employer's profit sharing contribution ............... 4,552 5,810
------- -------
Total assets .................................... $92,661 $68,388
======= =======
Net assets available for Plan benefits:
Available to terminated participants ................. $23,113 $ 7,367
Available to continuing participants ................. 69,548 61,021
------- -------
Net assets available for Plan benefits .......... $92,661 $68,388
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Year ended June 30,
----------------------
1996 1995
------- -------
<S> <C> <C>
Additions to net assets:
Participants' contributions .................... $10,447 $ 8,197
Employer's contributions ....................... 2,460 2,263
Employer's profit sharing contributions ........ 4,552 5,810
Interest and dividend income ................... 7,689 1,800
Realized/unrealized gain ....................... 4,269 7,396
------- -------
Total additions ........................... 29,417 25,466
Deductions from net assets:
Participant distributions paid ................. 5,144 3,123
------- -------
Increase in net assets available
for Plan benefits ..................... 24,273 22,343
Net assets available for Plan benefits at
beginning of year ............................ 68,388 46,045
------- -------
Net assets available for Plan benefits at
end of year .................................. $92,661 $68,388
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 8
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements of the Western Digital
Corporation Savings and Profit Sharing Plan (the "Plan") have been
prepared on an accrual basis of accounting and present the net assets
available for Plan benefits as of June 30, 1996 and 1995 and changes in
net assets available for Plan benefits for the years ended June 30,
1996 and 1995.
Valuation of Investments
Investments in marketable securities and common stock traded on
national security exchanges are valued at current market values,
determined through reference to public market information on the last
business day of the Plan's fiscal year. Securities not traded on the
last business day are valued at the last reported bid price. At June
30, 1996 and 1995, the Plan held investments in mutual funds, which are
reported at fair market value. Cash and cash equivalents are valued at
cost plus accrued interest which approximates market. Participant loans
are carried at their contract value which approximates fair market
value.
Income Tax Status
The Internal Revenue Service ("IRS") is currently reviewing the Plan's
application for a determination letter. However, the Company believes
that the Plan is currently designed and being operated in compliance
with the applicable requirements of the Internal Revenue Code.
Therefore, it believes that the Plan was qualified and the trust was
tax-exempt as of June 30, 1996.
(2) DESCRIPTION OF THE PLAN
General
The Plan is a defined contribution plan as defined by the Employee
Retirement Income Security Act of 1974. Participants should refer to
the Plan document for a more complete description of the Plan's
provisions.
Contributions
All U.S. based employees of the Company are eligible to participate in
the Plan and to receive employer matching contributions. Eligible
employees may elect to contribute up to 14% of their compensation on a
pretax basis and 9% of their compensation on an after tax basis (with
an aggregate limit of 14%) for investment in eleven funds, provided
that contributions do not exceed IRS limitations. The Company may make
contributions equal to 50% of pretax participant contributions to the
Plan, which are limited to 5% of the participant's compensation. The
Company may also make additional contributions at its discretion. The
Company may suspend matching contributions when it does not have
sufficient net profits to make the applicable matching contribution.
Contributions to the Plan are recorded as soon as administratively
possible after the Company makes payroll deductions from Plan
participants.
8
<PAGE> 9
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Investments
Participants designate their contributions, and those made by the
Company, for investment in any or all of the following funds:
Fund Investment Strategy
---- -------------------
Puritan Fund The Puritan Fund purchases shares in the Fidelity
Puritan Mutual Fund, which invests primarily in
common stock, preferred stock and bonds of
corporations with an emphasis on growth.
Disciplined The Disciplined Equity Fund purchases shares in
Equity Fund the Fidelity Disciplined Equity Mutual Fund, which
invests primarily in domestic common stocks that
are considered undervalued compared to industry
norms.
Blue Chip Fund The Blue Chip Fund purchases shares in the
Fidelity Blue Chip Mutual Fund, which invests
primarily in common stock of well-known and
established companies.
Magellan Fund The Magellan Fund purchases shares in the Fidelity
Magellan Mutual Fund, which invests primarily in
common stock and securities convertible into
common stock of corporations with an emphasis on
capital appreciation.
Stable Value Fund The Stable Value Fund purchases shares in the T.
Rowe Price Stable Value Mutual Fund, which invests
primarily in guaranteed investment contracts
("GICs"), bank investment contracts ("BICs") and
structured investment contracts ("SICs").
Western Digital The Western Digital Common Stock Fund invests in
Common Stock Fund the Company's common stock.
International The International Stock Fund purchases shares in
Stock Fund the T. Rowe Price International Stock Mutual Fund,
which invests primarily in common stock of
well-established, non-U.S. corporations.
Small-Cap Value The Small-Cap Value Fund purchases shares in the
Fund T. Rowe Price Small-Cap Value Mutual Fund, which
invests primarily in common stock of corporations
with a market value of $500 million or less that
appear undervalued compared to industry norms.
Science & The Science and Technology Fund purchases shares
Technology Fund in the T. Rowe Price Science and Technology Mutual
Fund, which invests primarily in common stock of
companies expected to benefit from the
development, advancement, and use of science and
technology.
9
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WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
(continued)
Fund Investment Strategy
---- -------------------
Equity Income Fund The Equity Income Fund purchases shares in the T.
Rowe Price Equity Income Mutual Fund, which
invests primarily in dividend-paying common stock,
particularly of established companies with
favorable prospects for both increasing dividends
and capital appreciation.
Spectrum Income The Spectrum Income Fund purchases shares in the
Fund T. Rowe Price Spectrum Income Mutual Fund, which
invests primarily in a diversified group of T.
Rowe Price mutual funds which, in turn, invest
principally in fixed income securities.
As of June 30, 1996, all of the Plan's assets were invested in mutual
funds, Western Digital common stock, cash and cash equivalents or
participant loans. Participants may transfer all or a portion of the
balance in their accounts between investment funds on a daily basis.
Change in Trustee
On June 1, 1995, T. Rowe Price Trust Company ("TRP") replaced First
Interstate Bank ("FIB") as trustee of the Plan's assets and all of the
Plan's assets were transferred to TRP. On the same day, the Fixed
Interest Fund was closed and all of the Fund's assets were transferred
to the Stable Value Fund. In addition, seven new mutual fund options
were offered by the Plan, increasing the participants' investment
options to eleven. No interfund transfers were allowed from June 1,
1995 through July 5, 1995. Employee and employer contributions for the
month of June and employer profit sharing contributions were received
by TRP after July 5, 1995 and were invested in any or all of the eleven
remaining investment options in accordance with the participants'
elections. These amounts are reflected as receivables in the statement
of net assets available for Plan benefits at June 30, 1995.
Participant Loans
Loans can be made to a participant up to an amount equal to the lesser
of $50,000 or 50% of a participant's vested account balance. The loans
bear interest at 1% above the current prime rate published by T. Rowe
Price Trust Company and are generally payable in installments over
periods ranging from one to five years, unless the loan is used for the
purchase of a primary residence, in which case the repayment period may
be up to ten years. Principal and interest payments are allocated to
the participants' accounts in the same manner as their current
contributions. The Plan allows participants to have no more than two
active loans at a time. The annual interest rate charged on employee
loans during 1996 ranged from 7% to 10%.
10
<PAGE> 11
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Participant Accounts
A separate account is maintained for each participant in each
designated fund. Each account is adjusted for contributions and net
investment income or loss on a daily basis. Net investment income or
loss is allocated to the accounts in the same proportion as the
participant's beginning account balance invested in the fund (as
defined in the Plan) bears to the total of all participants' beginning
account balances invested in the fund.
Payment of Benefits
Upon termination, participants may receive a lump-sum payment in cash
and/or shares of the Company's common stock. The nonvested portion of
terminated participants' accounts is forfeited subject to a five-year
reinstatement period. Forfeitures are allocated annually to remaining
participants in the same ratio as each participant's compensation for
the plan year bears to the total compensation for the plan year of all
participants eligible to share in the allocation.
Certain restrictions apply to withdrawals of amounts from the Plan
while a participant continues to be employed by the Company.
Vesting
Participants are at all times one hundred percent vested in the value
of their voluntary contributions. A participant is fully vested in the
Company's matching contributions and earnings thereon after five years
of service (as defined in the Plan), or upon retirement (at normal
retirement age), permanent disability or death. For information
concerning the vesting of employer profit sharing contributions, see
Note 3. The Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan, subject to the
provisions of the Employee Retirement Income Security Act of 1974. In
the event of Plan termination, participants will become fully vested in
their accounts.
Administration of the Plan
The Retirement Plan Committee (the "Committee"), appointed by the Board
of Directors and consisting of at least three members, has the
authority to control and manage the operation and administration of the
Plan. The assets of the Plan are held in a non-discretionary trust by
T. Rowe Price Trust Company as trustee and are administered under a
trust agreement which requires that the trustee hold, administer and
distribute the funds of the Plan in accordance with the text of the
Plan and the instructions of the Committee or its designees. The
compensation or fees of accountants, counsel and other specialists and
any other costs of administering the Plan or the trust are paid by the
Company or charged to the trust at the discretion of the Company.
(3) PROFIT SHARING FEATURE
The Company adopted an annual profit sharing feature effective
beginning with the Company's 1992 fiscal year. All eligible domestic
employees of the Company who are employed on the last day of the
Company's fiscal year are eligible to participate in the profit
sharing. The amount of profit sharing paid to participants is dependent
upon their eligible compensation earned during the fiscal year. A
portion of each eligible participant's allocation of the Company's
profit sharing contribution is deposited into an individual profit
sharing account established under the Plan (4.7% and 6% of eligible
fiscal year compensation in 1996 and 1995, respectively) and the excess
allocable to such participant, if any, is paid as a fiscal year-end
cash bonus. Beginning on June 1, 1995, participants became one hundred
percent vested in their profit sharing accounts. Prior to June 1, 1995,
a participant became fully vested in the Company's profit sharing
contributions and earnings thereon after five years of service (as
defined in the Plan), or upon
11
<PAGE> 12
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
retirement (at normal retirement age), permanent disability or death.
Benefits are generally payable following retirement, disability, death,
hardship or termination of employment.
During 1996 and 1995, the Company authorized 6.5% and 8%, respectively,
of defined pre-tax profits to be allocated to the participants. In 1996
and 1995, the Company contributed $4,552,101 and $5,810,379,
respectively, as profit sharing to the Plan.
(4) INVESTMENTS
The Plan's investments consist of the following at June 30, 1996 (in
thousands):
<TABLE>
<CAPTION>
Shares Current
Held Cost Value
------ ------- -------
<S> <C> <C> <C>
Puritan Fund:
Fidelity Puritan Mutual Fund......................... 759 $12,432 $13,421
Disciplined Equity Fund:
T. Rowe Price Disciplined Equity Mutual Fund......... 34 752 754
Blue Chip Fund:
Fidelity Blue Chip Mutual Fund....................... 69 2,192 2,227
Magellan Fund:
Fidelity Magellan Mutual Fund........................ 306 24,237 22,910
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund............... 18,788 18,788 18,788
Western Digital Common Stock Fund....................... 478 6,359 12,484
International Stock Fund:
T. Rowe Price International Stock Mutual Fund........ 99 1,245 1,324
Small-Cap Value Fund:
T. Rowe Price Small-Cap Value Mutual Fund............ 110 1,909 2,040
Science & Technology Fund:
T. Rowe Price Science & Technology Mutual Fund....... 192 5,969 5,907
Equity Income Fund:
T. Rowe Price Equity Income Mutual Fund.............. 151 2,966 3,190
Spectrum Income Fund:
T. Rowe Price Spectrum Income Mutual Fund............ 44 488 485
Western Digital Participant Loans....................... -- 3,898 3,898
------- -------
$81,235 $87,428
======= =======
</TABLE>
12
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WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
The Plan's investments consist of the following at June 30, 1995 (in
thousands):
<TABLE>
<CAPTION>
Shares Current
Held Cost Value
------ ------- -------
<S> <C> <C> <C>
Puritan Fund:
Fidelity Puritan Mutual Fund................. 716 $11,006 $11,570
Magellan Fund:
Fidelity Magellan Mutual Fund................ 238 16,065 19,878
Stable Value Fund:
T. Rowe Price Stable Value Mutual Fund....... 18,109 18,109 18,109
Western Digital Common Stock Fund............... 499 4,417 8,733
Western Digital Participant Loans............... -- 2,684 2,684
------- -------
$52,281 $60,974
======= =======
</TABLE>
13
<PAGE> 14
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(5) NET ASSETS AND CHANGES IN NET ASSETS BY FUND
The net assets at June 30, 1996 and 1995 and changes in net assets for
the years ended June 30, 1996 and 1995, allocated to the separate
investment funds are shown below.
Net assets available for Plan benefits by fund (in thousands):
<TABLE>
<CAPTION>
June 30, 1996
------------------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national
Puritan Equity Chip Magellan Value Common Stock
Fund Fund Fund Fund Fund Stock Fund Fund
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at current value.... $ 13,421 $ 754 $ 2,227 $ 22,910 $ 18,788 $ 12,484 $ 1,324
Cash and cash equivalents........ -- -- 2 -- 2 -- 7
Receivables
Participants' contributions..... 78 7 29 119 93 43 14
Employer's contribution......... 27 2 9 40 33 15 5
Employer's profit sharing
contribution.................. 611 51 190 921 1,434 424 93
-------- -------- -------- -------- -------- -------- --------
14,137 814 2,457 23,990 20,350 12,966 1,443
Interfund receivable(payable).... (14) (1) (4) (21) 71 (9) (3)
-------- -------- -------- -------- -------- -------- --------
Net assets available for
Plan benefits.................... $ 14,123 $ 813 $ 2,453 $ 23,969 $ 20,421 $ 12,957 $ 1,440
======== ======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
June 30, 1996 (continued)
-----------------------------------------------------------------------------------
Small-Cap Science & Equity Spectrum
Value Technology Income Income Participant Total
Fund Fund Fund Fund Loans Plan
--------- ---------- ------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at current value.... $ 2,040 $ 5,907 $ 3,190 $ 485 $ 3,898 $87,428
Cash and cash equivalents........ -- 6 -- -- -- 17
Receivables
Participants' contributions..... 19 61 26 8 -- 497
Employer's contribution......... 6 19 8 3 -- 167
Employer's profit sharing
contribution.................. 141 429 190 68 -- 4,552
------- ------- ------- ------- ------- -------
2,206 6,422 3,414 564 3,898 92,661
Interfund receivable(payable).... (4) (10) (4) (1) -- --
------- ------- ------- ------- ------- -------
Net assets available for
Plan benefits.................... $ 2,202 $ 6,412 $ 3,410 $ 563 $ 3,898 $92,661
======= ======= ======= ======= ======= =======
</TABLE>
14
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WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Net assets available for Plan benefits by fund (in thousands):
<TABLE>
<CAPTION>
June 30, 1995
----------------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national
Puritan Equity Chip Magellan Value Common Stock
Fund Fund Fund Fund Fund Stock Fund Fund
-------- -------- -------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at current value..... $ 11,570 $ -- $ -- $ 19,878 $ 18,109 $ 8,733 $ --
Receivables
Participants' contributions...... 277 3 18 380 345 114 6
Employer's contribution.......... 90 1 5 119 113 39 2
Employer's profit sharing
contribution................... 1,072 16 75 1,481 2,266 554 29
-------- -------- -------- -------- -------- -------- --------
13,009 20 98 21,858 20,833 9,440 37
Interfund receivable(payable)..... (6) 1 3 (19) 4 5 1
-------- -------- -------- -------- -------- -------- --------
Net assets available for
Plan benefits..................... $ 13,003 $ 21 $ 101 $ 21,839 $ 20,837 $ 9,445 $ 38
======== ======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
June 30, 1996 (continued)
-----------------------------------------------------------------------------------
Small-Cap Science & Equity Spectrum
Value Technology Income Income Participant Total
Fund Fund Fund Fund Loans Plan
--------- ---------- ------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at current value..... $ -- $ -- $ -- $ -- $ 2,684 $60,974
Receivables
Participants' contributions...... 7 42 15 7 -- 1,214
Employer's contribution.......... 2 12 5 2 -- 390
Employer's profit sharing
contribution................... 36 176 68 37 -- 5,810
------- ------- ------- ------- ------- -------
45 230 88 46 2,684 68,388
Interfund receivable(payable)..... 1 7 2 1 -- --
------- ------- ------- ------- ------- -------
Net assets available for
Plan benefits..................... $ 46 $ 237 $ 90 $ 47 $ 2,684 $68,388
======= ======= ======= ======= ======= =======
</TABLE>
15
<PAGE> 16
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Changes in net assets available for Plan benefits by fund (in thousands):
<TABLE>
<CAPTION>
Year ended June 30, 1996
---------------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Stable Digital national
Puritan Equity Chip Magellan Value Common Stock
Fund Fund Fund Fund Fund Stock Fund Fund
-------- -------- -------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Participants' contributions............. $ 1,494 $ 255 $ 541 $ 2,488 $ 2,465 $ 788 $ 197
Employer's contributions................ 413 32 103 644 593 233 41
Employer's profit sharing
contribution.......................... 611 51 190 921 1,434 424 93
Interest and dividend income............ 721 45 94 4,826 1,104 (3) 16
Realized/unrealized gain (loss)......... 1,127 (1) 31 (2,319) -- 4,987 82
-------- -------- -------- -------- -------- -------- --------
Total additions...................... 4,366 382 959 6,560 5,596 6,429 429
-------- -------- -------- -------- -------- -------- --------
Deductions from net assets:
Participant distributions paid.......... 835 19 39 1,641 2,335 853 70
Net forfeitures transferred
out (in)............................... 6 2 4 (3) (51) 14 4
-------- -------- -------- -------- -------- -------- --------
Total deductions..................... 841 21 43 1,638 2,284 867 74
-------- -------- -------- -------- -------- -------- --------
Net interfund transfers................... (2,405) 431 1,436 (2,792) (3,728) (2,050) 1,047
-------- -------- -------- -------- -------- -------- --------
Increase (decrease) in net assets
available for Plan benefits.......... 1,120 792 2,352 2,130 (416) 3,512 1,402
Net assets available for Plan benefits at:
Beginning of year...................... 13,003 21 101 21,839 20,837 9,445 38
-------- -------- -------- -------- -------- -------- --------
End of year............................ $ 14,123 $ 813 $ 2,453 $ 23,969 $ 20,421 $ 12,957 $ 1,440
======== ======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Year ended June 30, 1996 (continued)
--------------------------------------------------------------------------------
Small-Cap Science & Equity Spectrum
Value Technology Income Income Participant Total
Fund Fund Fund Fund Loans Plan
--------- ---------- ------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Participants' contributions............. $ 315 $ 1,104 $ 573 $ 227 $ -- $10,447
Employer's contributions................ 53 222 88 38 -- 2,460
Employer's profit sharing
contribution.......................... 141 429 190 68 -- 4,552
Interest and dividend income............ 37 418 116 25 290 7,689
Realized/unrealized gain (loss)......... 145 (24) 243 (2) -- 4,269
------- ------- ------- ------- ------- -------
Total additions...................... 691 2,149 1,210 356 290 29,417
------- ------- ------- ------- ------- -------
Deductions from net assets:
Participant distributions paid.......... 32 149 80 15 (924) 5,144
Net forfeitures transferred
out (in)............................... 5 12 6 1 -- --
------- ------- ------- ------- ------- -------
Total deductions..................... 37 161 86 16 (924) 5,144
------- ------- ------- ------- ------- -------
Net interfund transfers................... 1,502 4,187 2,196 176 -- --
------- ------- ------- ------- ------- -------
Increase (decrease) in net assets
available for Plan benefits.......... 2,156 6,175 3,320 516 1,214 24,273
Net assets available for Plan benefits at:
Beginning of year...................... 46 237 90 47 2,684 68,388
------- ------- ------- ------- ------- -------
End of year............................ $ 2,202 $ 6,412 $ 3,410 $ 563 $ 3,898 $92,661
======= ======= ======= ======= ======= =======
</TABLE>
16
<PAGE> 17
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Changes in net assets available for Plan benefits by fund (in
thousands):
<TABLE>
<CAPTION>
Year ended June 30, 1995
-------------------------------------------------------------------------------------
Disci- Western Inter-
plined Blue Fixed Stable Digital national
Puritan Equity Chip Magellan Interest Value Common Stock
Fund Fund Fund Fund Fund Fund Stock Fund Fund
-------- ------ ----- -------- -------- ------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Participants' contributions.............. $ 2,064 $ 3 $ 18 $ 2,655 $ 2,098 $ 371 $ 849 $ 6
Employer's contributions................. 568 1 5 725 577 113 239 2
Employer's profit sharing
contribution........................... 1,072 16 75 1,481 -- 2,266 554 29
Interest and dividend income............. 669 -- -- 77 817 90 3 --
Realized/unrealized gain................. 515 -- -- 4,441 -- -- 2,371 --
------- ------ ----- -------- -------- ------- -------- --------
Total additions....................... 4,888 20 98 9,379 3,492 2,840 4,016 37
------- ------ ----- -------- -------- ------- -------- --------
Deductions from net assets:
Participant distributions paid........... 502 -- -- 827 1,116 3 594 --
Net forfeitures transferred
out (in)................................ 6 (1) (3) 19 -- (4) (5) (1)
------- ------ ----- -------- -------- ------- -------- --------
Total deductions...................... 508 (1) (3) 846 1,116 (1) 589 (1)
------- ------ ----- -------- -------- ------- -------- --------
Net interfund transfers.................... (891) -- -- (1,278) (14,891) 17,996 (276) --
------- ------ ----- -------- -------- ------- -------- --------
Increase (decrease) in net assets
available for Plan benefits........... 3,489 21 101 7,255 (12,515) 20,837 3,151 38
Net assets available for Plan benefits at:
Beginning of year....................... 9,514 -- -- 14,584 12,515 -- 6,294 --
------- ------ ----- -------- -------- ------- -------- --------
End of year............................. $13,003 $ 21 $ 101 $ 21,839 $ -- $20,837 $ 9,445 $ 38
======= ====== ===== ======== ======== ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Year ended June 30, 1995 (continued)
----------------------------------------------------------------------------------
Western
Small-Cap Science & Equity Spectrum Digital
Value Technology Income Income Bond Participant Main Total
Fund Fund Fund Fund Fund Loans Fund Plan
--------- ---------- ------ -------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Participants' contributions............... $ 7 $ 42 $ 15 $ 7 $ 62 $ -- $ -- $ 8,197
Employer's contributions.................. 2 12 5 2 12 -- -- 2,263
Employer's profit sharing
contribution............................ 36 176 68 37 -- -- -- 5,810
Interest and dividend income.............. -- -- -- -- 37 131 (24) 1,800
Realized/unrealized gain.................. -- -- -- -- 69 -- -- 7,396
------- ------- ------ ------- ------- ------- ------- -------
Total additions........................ 45 230 88 46 180 131 (24) 25,466
------- ------- ------ ------- ------- ------- ------- -------
Deductions from net assets:
Participant distributions paid............ -- -- -- -- 51 26 4 3,123
Net forfeitures transferred
out (in)................................. (1) (7) (2) (1) -- -- -- --
------- ------- ------ ------- ------- ------- ------- -------
Total deductions....................... (1) (7) (2) (1) 51 26 4 3,123
------- ------- ------ ------- ------- ------- ------- -------
Net interfund transfers..................... -- -- -- -- (1,162) 515 (13) --
------- ------- ------ ------- ------- ------- ------- -------
Increase (decrease) in net assets
available for Plan benefits............ 46 237 90 47 (1,033) 620 (41) 22,343
Net assets available for Plan benefits at:
Beginning of year........................ -- -- -- -- 1,033 2,064 41 46,045
------- ------- ------ ------- ------- ------- ------- -------
End of year.............................. $ 46 $ 237 $ 90 $ 47 $ -- $ 2,684 $ -- $68,388
======= ======= ====== ======= ======= ======= ======= =======
</TABLE>
17
<PAGE> 18
SCHEDULE I
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
ITEM 27A -- SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JUNE 30, 1996
(IN THOUSANDS)
<TABLE>
<CAPTION>
Identity of Issuer, Borrower, Description of Investment, Current
Lessor or Similar Party Including Collateral or Par Value Cost Value
- ----------------------------- --------------------------------- ------- -------
<S> <C> <C> <C>
Fidelity Retirement Services 759 shares Fidelity Puritan Mutual Fund $12,432 $13,421
Fidelity Retirement Services 69 shares Fidelity Blue Chip Mutual Fund 2,192 2,227
Fidelity Retirement Services 306 shares Fidelity Magellan Mutual Fund 24,237 22,910
*T. Rowe Price Trust 34 shares T. Rowe Price Disciplined
Company Equity Mutual Fund 752 754
*T. Rowe Price Trust 18,788 shares T. Rowe Price Stable
Company Value Mutual Fund 18,788 18,788
*T. Rowe Price Trust 99 shares T. Rowe Price International
Company Stock Mutual Fund 1,245 1,324
*T. Rowe Price Trust 110 shares T. Rowe Price Small-Cap
Company Value Mutual Fund 1,909 2,040
*T. Rowe Price Trust 192 shares T. Rowe Price Science
Company & Technology Mutual Fund 5,969 5,907
*T. Rowe Price Trust 151 shares T. Rowe Price Equity
Company Income Mutual Fund 2,966 3,190
*T. Rowe Price Trust 44 shares T. Rowe Price Spectrum
Company Income Mutual Fund 488 485
*Western Digital Corporation 478 shares common stock; $.10 par value 6,359 12,484
*Western Digital Corporation Participant Loans 3,898 3,898
------- -------
$81,235 $87,428
======= =======
</TABLE>
* These entities are considered "parties in interest" under the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 because they either provide services to
the Plan or are an employer whose employees are covered by the Plan.
See accompanying independent auditors' report.
18
<PAGE> 19
SCHEDULE II
WESTERN DIGITAL CORPORATION SAVINGS AND PROFIT SHARING PLAN
ITEM 27D -- SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
Current
Expense Value of
Incurred Asset on
Identity of Purchase Selling Lease with Cost Transaction Net
Party Involved Description of Asset Price Price Rental Transaction of Asset Date Gain
- -------------- -------------------- -------- ------- ------ ----------- -------- ----------- -----
Series of Transactions in Excess of 5% of Current Value of the Plan's Assets (in thousands):
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity Retirement Fidelity Puritan Mutual
Services Fund $ 4,132 -- -- -- $ 4,132 $ 4,132 --
Fidelity Retirement Fidelity Puritan Mutual
Services Fund -- 3,408 -- -- 3,244 3,408 164
Fidelity Retirement Fidelity Magellan Mutual
Services Fund 10,105 -- -- -- 10,105 10,100 5
Fidelity Retirement Fidelity Magellan Mutual
Services Fund -- 4,748 -- -- 4,409 4,748 339
Western Digital
Corporation Common Stock 5,873 -- -- -- 5,873 5,857 16
Western Digital
Corporation Common Stock -- 7,093 -- -- 4,607 7,093 2,486
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund 9,068 -- -- -- 9,068 9,068 --
T. Rowe Price T. Rowe Price
Trust Stable Value
Company Mutual Fund -- 8,364 -- -- 8,364 8,364 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund 6,741 -- -- -- 6,741 6,741 --
T. Rowe Price T. Rowe Price
Trust Science & Technology
Company Mutual Fund -- 809 -- -- 764 809 45
T. Rowe Price T. Rowe Price
Trust Equity Income
Company Mutual Fund 3,324 -- -- -- 3,324 3,324 --
T. Rowe Price T. Rowe Price
Trust Equity Income
Company Mutual Fund -- 378 -- -- 365 378 13
</TABLE>
Transactions in Excess of 5% of Current Value of the Plan's Assets:
None
See accompanying independent auditors' report.
19
<PAGE> 20
WESTERN DIGITAL CORPORATION
SAVINGS AND PROFIT SHARING PLAN
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Sequentially
Exhibit Description Numbered Page
- ------- ----------- -------------
<S> <C> <C>
23. Consent of Independent Auditors 21
</TABLE>
20
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
Retirement Plan Committee
Western Digital Corporation
Savings and Profit Sharing Plan:
We consent to the incorporation by reference in the Registration Statement (No.
33-56128) on Form S-8 of Western Digital Corporation Savings and Profit Sharing
Plan of our report dated November 27, 1996, relating to the statements of net
assets available for plan benefits of Western Digital Corporation Savings and
Profit Sharing Plan as of June 30, 1996 and 1995 and the related statements of
changes in net assets available for plan benefits for the years ended June 30,
1996 and 1995, which report appears in the June 30, 1996 annual report on Form
11-K of Western Digital Corporation Savings and Profit Sharing Plan.
KPMG PEAT MARWICK LLP
Orange County, California
December 23, 1996
21
