MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Inventories
In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable value (“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:
| 1st Qtr. | 4th Qtr. | 1st Qtr. | ||||
|
November 30,
2023 |
August 31,
2023 |
December 1,
2022 | ||||
| Provision to write down inventory to NRV | $ | — | $ | — | $ | — |
| Lower costs from sale of inventory written down in prior periods | 605 | 563 | — | |||
| $ | 605 | $ | 563 | $ | — | |
| MICRON TECHNOLOGY, INC. | |||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||
| (In millions, except per share amounts) | |||||||||
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||
|
November 30,
2023 |
August 31,
2023 |
December 1,
2022 | |||||||
| GAAP gross margin | $ | (35 | ) | $ | (435 | ) | $ | 893 | |
| Stock-based compensation | 67 | 64 | 36 | ||||||
| Other | 5 | 5 | 5 | ||||||
| Non-GAAP gross margin | $ | 37 | $ | (366 | ) | $ | 934 | ||
| GAAP operating expenses | $ | 1,093 | $ | 1,037 | $ | 1,102 | |||
| Stock-based compensation | (115 | ) | (87 | ) | (90 | ) | |||
| Restructure and asset impairments | — | (4 | ) | (13 | ) | ||||
| Goodwill impairment | — | (101 | ) | — | |||||
| Other | 14 | (3 | ) | — | |||||
| Non-GAAP operating expenses | $ | 992 | $ | 842 | $ | 999 | |||
| GAAP operating income (loss) | $ | (1,128 | ) | $ | (1,472 | ) | $ | (209 | ) |
| Stock-based compensation | 182 | 151 | 126 | ||||||
| Restructure and asset impairments | — | 4 | 13 | ||||||
| Goodwill impairment | — | 101 | — | ||||||
| Other | (9 | ) | 8 | 5 | |||||
| Non-GAAP operating income (loss) | $ | (955 | ) | $ | (1,208 | ) | $ | (65 | ) |
| GAAP net income (loss) | $ | (1,234 | ) | $ | (1,430 | ) | $ | (195 | ) |
| Stock-based compensation | 182 | 151 | 126 | ||||||
| Restructure and asset impairments | — | 4 | 13 | ||||||
| Goodwill impairment | — | 101 | — | ||||||
| Other | (10 | ) | 7 | 10 | |||||
| Estimated tax effects of above and other tax adjustments | 14 | (10 | ) | 7 | |||||
| Non-GAAP net income (loss) | $ | (1,048 | ) | $ | (1,177 | ) | $ | (39 | ) |
| GAAP diluted earnings (loss) per share | $ | (1.12 | ) | $ | (1.31 | ) | $ | (0.18 | ) |
| Effects of the above adjustments | 0.17 | 0.24 | 0.14 | ||||||
| Non-GAAP diluted earnings (loss) per share | $ | (0.95 | ) | $ | (1.07 | ) | $ | (0.04 | ) |
