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MICRON TECHNOLOGY, INC.
NOTES (Unaudited) | |||||||||||
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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 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: | |||||||||||
| 4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | ||||||||
|
August 29,
2024 |
May 30,
2024 |
August 31,
2023 |
August 29,
2024 |
August 31,
2023 | |||||||
| Provision to write down inventory to NRV | $ | — | $ | — | $ | — | $ | — | $ | (1,831 | ) |
| Lower costs from sale of inventory written down in prior periods | — | — | 563 | 987 | 844 | ||||||
| $ | — | $ | — | $ | 563 | $ | 987 | $ | (987 | ) | |
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MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts) | |||||||||||||||
| 4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | ||||||||||||
|
August 29,
2024 |
May 30,
2024 |
August 31,
2023 |
August 29,
2024 |
August 31,
2023 | |||||||||||
| GAAP gross margin | $ | 2,737 | $ | 1,832 | $ | (435 | ) | $ | 5,613 | $ | (1,416 | ) | |||
| Stock-based compensation | 85 | 80 | 64 | 312 | 201 | ||||||||||
| Other | 4 | 5 | 5 | 18 | 19 | ||||||||||
| Non-GAAP gross margin | $ | 2,826 | $ | 1,917 | $ | (366 | ) | $ | 5,943 | $ | (1,196 | ) | |||
| GAAP operating expenses | $ | 1,215 | $ | 1,113 | $ | 1,037 | $ | 4,309 | $ | 4,329 | |||||
| Stock-based compensation | (128 | ) | (137 | ) | (87 | ) | (509 | ) | (363 | ) | |||||
| Restructure and asset impairments | (1 | ) | — | (4 | ) | (1 | ) | (171 | ) | ||||||
| Patent cross-license agreement gain | — | — | — | 200 | — | ||||||||||
| Goodwill impairment | — | — | (101 | ) | — | (101 | ) | ||||||||
| Litigation settlement | — | — | — | — | (68 | ) | |||||||||
| Other | (5 | ) | — | (3 | ) | 9 | (3 | ) | |||||||
| Non-GAAP operating expenses | $ | 1,081 | $ | 976 | $ | 842 | $ | 4,008 | $ | 3,623 | |||||
| GAAP operating income (loss) | $ | 1,522 | $ | 719 | $ | (1,472 | ) | $ | 1,304 | $ | (5,745 | ) | |||
| Stock-based compensation | 213 | 217 | 151 | 821 | 564 | ||||||||||
| Restructure and asset impairments | 1 | — | 4 | 1 | 171 | ||||||||||
| Patent cross-license agreement gain | — | — | — | (200 | ) | — | |||||||||
| Goodwill impairment | — | — | 101 | — | 101 | ||||||||||
| Litigation settlement | — | — | — | — | 68 | ||||||||||
| Other | 9 | 5 | 8 | 9 | 22 | ||||||||||
| Non-GAAP operating income (loss) | $ | 1,745 | $ | 941 | $ | (1,208 | ) | $ | 1,935 | $ | (4,819 | ) | |||
| GAAP net income (loss) | $ | 887 | $ | 332 | $ | (1,430 | ) | $ | 778 | $ | (5,833 | ) | |||
| Stock-based compensation | 213 | 217 | 151 | 821 | 564 | ||||||||||
| Restructure and asset impairments | 1 | — | 4 | 1 | 171 | ||||||||||
| Patent cross-license agreement gain | — | — | — | (200 | ) | — | |||||||||
| Goodwill impairment | — | — | 101 | — | 101 | ||||||||||
| Litigation settlement | — | — | — | — | 68 | ||||||||||
| Other | 5 | 3 | 7 | — | 32 | ||||||||||
| Estimated tax effects of above and other tax adjustments | 236 | 150 | (10 | ) | 72 | 35 | |||||||||
| Non-GAAP net income (loss) | $ | 1,342 | $ | 702 | $ | (1,177 | ) | $ | 1,472 | $ | (4,862 | ) | |||
| GAAP weighted-average common shares outstanding - Diluted | 1,125 | 1,123 | 1,095 | 1,118 | 1,093 | ||||||||||
| Adjustment for stock-based compensation | 12 | 13 | — | 16 | — | ||||||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,137 | 1,136 | 1,095 | 1,134 | 1,093 | ||||||||||
| GAAP diluted earnings (loss) per share | $ | 0.79 | $ | 0.30 | $ | (1.31 | ) | $ | 0.70 | $ | (5.34 | ) | |||
| Effects of the above adjustments | 0.39 | 0.32 | 0.24 | 0.60 | 0.89 | ||||||||||
| Non-GAAP diluted earnings (loss) per share | $ | 1.18 | $ | 0.62 | $ | (1.07 | ) | $ | 1.30 | $ | (4.45 | ) | |||
