MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Inventories
In the third and second quarters of 2023, we recorded charges to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below:
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||
|
June 1,
2023 |
March 2,
2023 |
June 2,
2022 |
June 1,
2023 |
June 2,
2022 | |||||||||
| Provision to write down inventory to net realizable value | $ | (401 | ) | $ | (1,430 | ) | $ | — | $ | (1,831 | ) | $ | — |
| Lower costs from sale of inventory written down in prior periods | 281 | — | — | 281 | — | ||||||||
| $ | (120 | ) | $ | (1,430 | ) | $ | — | $ | (1,550 | ) | $ | — | |
Debt Activity
On April 11, 2023, we issued $600 million principal amount of 5.375% senior unsecured notes due April 15, 2028 and received proceeds of $596 million. Additionally, we issued $900 million principal amount of 5.875% senior unsecured notes due September 15, 2033 and received proceeds of $890 million. On April 13, 2023, we used a portion of the proceeds from the debt issuance to prepay $600 million principal amount of our senior term loan A due October 2024.
|
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts) | |||||||||
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||
|
June 1,
2023 |
March 2,
2023 |
June 2,
2022 | |||||||
| GAAP gross margin | $ | (668 | ) | $ | (1,206 | ) | $ | 4,035 | |
| Stock-based compensation | 60 | 41 | 57 | ||||||
| Other | 5 | 4 | 5 | ||||||
| Non-GAAP gross margin | $ | (603 | ) | $ | (1,161 | ) | $ | 4,097 | |
| GAAP operating expenses | $ | 1,093 | $ | 1,097 | $ | 1,031 | |||
| Stock-based compensation | (91 | ) | (95 | ) | (78 | ) | |||
| Restructure and asset impairments | (68 | ) | (86 | ) | — | ||||
| Litigation contingency accrual | (68 | ) | — | — | |||||
| Non-GAAP operating expenses | $ | 866 | $ | 916 | $ | 953 | |||
| GAAP operating income (loss) | $ | (1,761 | ) | $ | (2,303 | ) | $ | 3,004 | |
| Stock-based compensation | 151 | 136 | 135 | ||||||
| Restructure and asset impairments | 68 | 86 | — | ||||||
| Litigation contingency accrual | 68 | — | — | ||||||
| Other | 5 | 4 | 5 | ||||||
| Non-GAAP operating income (loss) | $ | (1,469 | ) | $ | (2,077 | ) | $ | 3,144 | |
| GAAP net income (loss) | $ | (1,896 | ) | $ | (2,312 | ) | $ | 2,626 | |
| Stock-based compensation | 151 | 136 | 135 | ||||||
| Restructure and asset impairments | 68 | 86 | — | ||||||
| Litigation contingency accrual | 68 | — | — | ||||||
| Amortization of debt discount and other costs | 2 | 4 | 8 | ||||||
| Other | 5 | 4 | 5 | ||||||
| Impact of Idaho income tax reform | — | — | 189 | ||||||
| Estimated tax effects of above and other tax adjustments | 37 | 1 | (24 | ) | |||||
| Non-GAAP net income (loss) | $ | (1,565 | ) | $ | (2,081 | ) | $ | 2,939 | |
| GAAP weighted-average common shares outstanding - Diluted | 1,094 | 1,091 | 1,121 | ||||||
| Adjustment for stock-based compensation | — | — | 15 | ||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,094 | 1,091 | 1,136 | ||||||
| GAAP diluted earnings (loss) per share | $ | (1.73 | ) | $ | (2.12 | ) | $ | 2.34 | |
| Effects of the above adjustments | 0.30 | 0.21 | 0.25 | ||||||
| Non-GAAP diluted earnings (loss) per share | $ | (1.43 | ) | $ | (1.91 | ) | $ | 2.59 | |
