4. In January 2019, we exercised our option to acquire Intel's interest in our joint venture, IM Flash Technologies, LLC ("IMFT") and, in the third quarter of 2019, Intel set the closing date of the transaction to occur on October 31, 2019. At closing, we expect to pay Intel approximately $1.4 billion in cash for Intel's noncontrolling interest in IMFT and IMFT member debt. As of May 30, 2019, current debt included $858 million of IMFT member debt.
5. In the third quarter and first nine months of 2019, we repurchased 4 million shares of our common stock for $157 million and 67 million shares of our common stock for $2.66 billion, respectively, under an accelerated share repurchase agreement, Rule 10b5-1 plans, and through open market repurchases. The shares were recorded as treasury stock.
|
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in millions, except per share amounts) | ||||||||||||
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | ||||||||||
|
May 30,
2019 |
February 28,
2019 |
May 31,
2018 | ||||||||||
| GAAP gross margin | $ | 1,828 | $ | 2,864 | $ | 4,723 | ||||||
| Stock-based compensation | 24 | 23 | 20 | |||||||||
| Start-up and preproduction costs | 23 | 15 | — | |||||||||
| Employee severance | — | 13 | — | |||||||||
| Other | 9 | 13 | 7 | |||||||||
| Non-GAAP gross margin | $ | 1,884 | $ | 2,928 | $ | 4,750 | ||||||
| GAAP operating income | $ | 1,010 | $ | 1,957 | $ | 3,953 | ||||||
| Stock-based compensation | 58 | 57 | 48 | |||||||||
| Start-up and preproduction costs | 23 | 15 | — | |||||||||
| Employee severance | — | 17 | — | |||||||||
| Restructure and asset impairments | 9 | 51 | 8 | |||||||||
| Other | 10 | 13 | 8 | |||||||||
| Non-GAAP operating income | $ | 1,110 | $ | 2,110 | $ | 4,017 | ||||||
| GAAP net income attributable to Micron | $ | 840 | $ | 1,619 | $ | 3,823 | ||||||
| Stock-based compensation | 58 | 57 | 48 | |||||||||
| Start-up and preproduction costs | 23 | 15 | — | |||||||||
| Employee severance | — | 17 | — | |||||||||
| Restructure and asset impairments | 9 | 51 | 8 | |||||||||
| Amortization of debt discount and other costs | 10 | 11 | 23 | |||||||||
| (Gain) loss on debt repurchases and conversions | 317 | 83 | 168 | |||||||||
| (Gain) loss from changes in currency exchange rates | 1 | 3 | 24 | |||||||||
| Other | 12 | 13 | 10 | |||||||||
| Impact of U.S. income tax reform | (42 | ) | (14 | ) | (222 | ) | ||||||
| Estimated tax effects of above, non-cash changes in net deferred income taxes, and assessments of tax exposures | (30 | ) | 116 | 16 | ||||||||
| Non-GAAP net income attributable to Micron | $ | 1,198 | $ | 1,971 | $ | 3,898 | ||||||
| GAAP weighted-average common shares outstanding - Diluted | 1,129 | 1,141 | 1,235 | |||||||||
| Adjustment for capped calls and stock-based compensation | 6 | 8 | 3 | |||||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,135 | 1,149 | 1,238 | |||||||||
| GAAP diluted earnings per share | $ | 0.74 | $ | 1.42 | $ | 3.10 | ||||||
| Effects of the above adjustments | 0.31 | 0.29 | 0.05 | |||||||||
| Non-GAAP diluted earnings per share | $ | 1.05 | $ | 1.71 | $ | 3.15 | ||||||
