Western Digital Corp. (NASDAQ: WDC) today announced that the board of directors declared a cash dividend for the quarter ending Jan. 2, 2015, of $0.40 per share of common stock (the "cash dividend"). The cash dividend will be paid on Jan. 15, 2015, to the company's stockholders of record as of Jan. 2, 2015.

The amount of future dividends under the company's dividend policy, and the declaration and payment thereof, will be based upon all relevant factors, including the company's financial position, results of operations, cash flows, capital requirements and restrictions under the company's existing credit agreement, and shall be in compliance with applicable law. The board retains the power to modify, suspend or cancel the company's dividend policy in any manner and at any time as it may deem necessary or appropriate in the future.

The company also announced that its board of directors determined that the amount paid to Seagate Technology in the recently concluded arbitration matter will be excluded from the calculation of free cash flow under the company's capital allocation plan. On Oct. 8, 2014, the Minnesota Supreme Court affirmed the decision of the Court of Appeals of the State of Minnesota which had reinstated a $630.4 million final arbitration award previously issued against the company in the arbitration between the company and Seagate. On Oct. 14, 2014, Seagate was paid $773.4 million by one of the company's foreign subsidiaries using cash held outside of the United States to satisfy the full amount of the final arbitration award, plus accrued interest.