Investor Presentaiton
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© 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED
Credit Agreement Defined Leverage Ratio
In millions; unaudited; trailing 12 months
Q2F23
Q4F23
Net Income (Loss)
Income tax expense
Interest and other expense, net
Depreciation and amortization
EBITDA(1)
Stock-based compensation expense
Contamination related charges
Employee termination, asset impairment and other
Strategic review
Recoveries from a power outage incident
Other
Adjusted EBITDA(2)(3)
Total Debt(4)
Debt to Adjusted EBITDA
Flash Ventures equipment depreciation expenses
Other Credit Agreement Adjustments (5)
Credit Agreement Defined Adjusted EBITDA (6)
Total Debt(4)
Q1F23
$ 917
$ (93)
Q3F23
$ (690)
Q1F24
$ (1,706)
$ (2,418)
586
565
371
146
92
268
251
246
275
287
895
867
864
828
759
$ 2,666
$ 1,590
$ 791
$ (457)
$ (1,280)
$ 336
$ 335
$ 323
207
207
49
123
―
4
159
15
$ 318
$309
-
193
42
226
59
(7)
3
$ 3,254
$ 7,100
2.2X
(7)
2
$ 2,250
$ 7,100
3.2X
$ 1,293
$ 7,100
5.5X
5
$ 101
$ 7,100
70.3X
$ 721
7
$ (679)
$ 7,700
-11.3X
2
$ 786
292
$ 730
504
$689
758
$ 860
$ 3,328
$ 7,100
$ 2,527
$ 870
2.1X
$ 7,100
2.8X
$ 7,100
4.5X
$ 7,700
8.9X
$ 1,580
$ 858
$ 4,114
Credit Agreement Defined Leverage Ratio (7)(8)
1.
2.
3.
345
$ 7,100
1.7X
EBITDA is defined as net income before income tax expense, interest and other expense, net, and depreciation and amortization.
Adjusted EBITDA is defined as EBITDA (as defined above), adjusted to exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because these exclusions are consistent with
the financial models and estimates published by many analysts who follow the company and its peers. See the GAAP to Non-GAAP reconciliation slides within the Appendix for further details.
Adjusted EBITDA is not intended to reflect measures used under the company's debt agreements.
4.
Total Debt is the total principal balance of debt outstanding as of the end of the applicable trailing 12-month period.
5.
Other Credit Agreement Adjustments includes deductions and addbacks for other income, expenses, and special charges, including underutilization charges and expected future cost savings from cost reduction initiatives in each case as
provided under the company's credit agreement applicable to Term Loan A-2 and Revolver.
6. Credit Agreement Defined Adjusted EBITDA is used to measure financial covenant compliance under the company's credit agreement applicable to Term Loan A-2 and Revolver.
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7.
8.
Credit Agreement Defined Leverage Ratio is calculated as Total Debt divided by Credit Agreement Defined Adjusted EBITDA and is the Leverage Ratio as defined in the company's credit agreement for purpose of the financial covenant
applicable to Term Loan A-2 and Revolver.
Leverage ratio requirement is not applicable for the first quarter of fiscal 2024.View entire presentation