Summary
Western Digital Corporation (WDC) has filed an 8-K report detailing the declaration of a quarterly cash dividend and providing an update on a significant arbitration payment. The Board of Directors declared a cash dividend of $0.40 per share, payable on January 15, 2015, to stockholders of record on January 2, 2015. This action signals continued commitment to returning value to shareholders through regular dividend payments. Additionally, the report addresses the final settlement of a $630.4 million arbitration award to Seagate Technology, LLC. The full payment, including interest, totaling $773.4 million, was made by a foreign subsidiary using offshore cash. Notably, the company's Board has determined that this arbitration payment will be excluded from the calculation of free cash flow under the company's capital allocation plan. This exclusion is important for understanding the company's true operational free cash flow generation going forward.
Key Highlights
- 1Western Digital declared a cash dividend of $0.40 per share for the quarter ending January 2, 2015.
- 2The dividend is scheduled to be paid on January 15, 2015, to shareholders of record as of January 2, 2015.
- 3The company has fully settled a $630.4 million arbitration award with Seagate Technology, LLC.
- 4The total payment made to Seagate, including interest, amounted to $773.4 million.
- 5This payment was funded by a foreign subsidiary using cash held outside the United States.
- 6The Board of Directors has decided to exclude the $773.4 million arbitration payment from free cash flow calculations under the capital allocation plan.