Micron Technology, Inc., (NASDAQ:MU) today announced results of
operations for its fourth quarter and full year of 2017, which
ended August 31, 2017.
Fiscal Q4 2017 highlights
- Revenues of $6.14 billion, 91% higher compared with the same
period last year
- GAAP net income of $2.37 billion, or $1.99 per diluted
share
- Non-GAAP net income of $2.39 billion, or $2.02 per diluted
share
Fiscal 2017 highlights
- Revenues of $20.32 billion, 64% higher compared with the prior
fiscal year
- GAAP net income of $5.09 billion, or $4.41 per diluted
share
- Non-GAAP net income of $5.65 billion, or $4.96 per diluted
share
- Cash flows from operations of $8.15 billion
"Micron delivered exceptional fourth quarter and fiscal year
results, reflecting solid execution and robust demand for our
memory and storage solutions," said Micron President and CEO Sanjay
Mehrotra. "We expect healthy industry fundamentals to continue into
2018, supported by increasingly diverse end markets and
applications. We believe our focus on accelerating the deployment
of advanced technologies and solutions will address our customers'
evolving requirements, further strengthen our financial foundation,
and enhance shareholder value."
|
Quarterly Financial Results |
(in millions, except per share amounts) |
GAAP (1) |
|
Non-GAAP (2) |
FQ4-17 |
FQ3-17 |
FQ4-16 |
|
FQ4-17 |
FQ3-17 |
FQ4-16 |
Revenue |
$ |
6,138 |
|
$ |
5,566 |
|
$ |
3,217 |
|
|
$ |
6,138 |
|
$ |
5,566 |
|
$ |
3,217 |
|
Gross margin |
$ |
3,112 |
|
$ |
2,609 |
|
$ |
579 |
|
|
$ |
3,147 |
|
$ |
2,671 |
|
$ |
598 |
|
percent of revenue |
|
50.7% |
|
|
46.9% |
|
|
18.0% |
|
|
|
51.3% |
|
|
48.0% |
|
|
18.6% |
|
Operating income (loss) |
$ |
2,502 |
|
$ |
1,963 |
|
$ |
(32 |
) |
|
$ |
2,546 |
|
$ |
2,071 |
|
$ |
66 |
|
percent of revenue |
|
40.8% |
|
|
35.3% |
|
|
(1.0)% |
|
|
|
41.5% |
|
|
37.2% |
|
|
2.1% |
|
Net income (loss) attributable to Micron |
$ |
2,368 |
|
$ |
1,647 |
|
$ |
(170 |
) |
|
$ |
2,386 |
|
$ |
1,896 |
|
$ |
(9 |
) |
Diluted earnings (loss) per share |
$ |
1.99 |
|
$ |
1.40 |
|
$ |
(0.16 |
) |
|
$ |
2.02 |
|
$ |
1.62 |
|
$ |
(0.01 |
) |
Annual Financial Results |
|
|
(in millions, except per share
amounts) |
GAAP (1) |
|
Non-GAAP (2) |
|
|
FY 17 |
FY 16 |
|
FY 17 |
FY 16 |
|
|
Revenue |
|
|
$ |
20,322 |
|
$ |
12,399 |
|
|
$ |
20,322 |
|
$ |
12,399 |
|
|
|
Gross margin |
|
|
$ |
8,436 |
|
$ |
2,505 |
|
|
$ |
8,639 |
|
$ |
2,592 |
|
|
|
percent of revenue |
|
|
|
41.5% |
|
|
20.2% |
|
|
|
42.5% |
|
|
20.9% |
|
|
|
Operating income |
|
|
$ |
5,868 |
|
$ |
168 |
|
|
$ |
6,232 |
|
$ |
450 |
|
|
|
percent of revenue |
|
|
|
28.9% |
|
|
1.4% |
|
|
|
30.7% |
|
|
3.6% |
|
|
|
Net income (loss) attributable to Micron |
|
|
$ |
5,089 |
|
$ |
(276 |
) |
|
$ |
5,648 |
|
$ |
273 |
|
|
|
Diluted earnings (loss) per share |
|
|
$ |
4.41 |
|
$ |
(0.27 |
) |
|
$ |
4.96 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues for the fourth quarter of 2017 were 10 percent higher
compared to the third quarter of 2017, with DRAM sales volumes 5
percent higher and NAND sales volumes 3 percent higher. DRAM and
NAND average selling prices for the quarter increased 8 percent and
5 percent, respectively. Our overall consolidated gross margin of
50.7 percent for the fourth quarter of 2017 was higher compared to
46.9 percent in the third quarter due to expansion of margins for
DRAM products.
Investments in capital expenditures, net of amounts funded by
partners, were $1.51 billion for the fourth quarter of 2017 and
$5.13 billion for the full year of 2017. We ended the fourth
quarter with cash, marketable investments, and restricted cash of
$6.15 billion.
We will host a conference call on Tuesday, September 26, 2017 at
2:30 p.m. MT to discuss our financial results. The call, audio, and
slides will be available online at investors.micron.com. A webcast
replay will be available on our website until September 26, 2018. A
taped audio replay of the conference call will also be available at
1-404-537-3406 or 1-855-859-2056 (conference number: 76102815)
beginning at 5:30 p.m. MT, Tuesday, September 26, 2017 and
continuing through Tuesday, October 3, 2017. For Investor Relations
and other company updates, follow @MicronTech on Twitter at
twitter.com/MicronTech.
We are a world leader in innovative memory solutions. Through
our global brands – Micron®, Crucial®, and Ballistix® – our broad
portfolio of high-performance memory technologies, including DRAM,
NAND, NOR Flash, and 3D XPoint™ memory, is transforming how the
world uses information. Backed by more than 35 years of technology
leadership, our memory solutions enable the world's most innovative
computing, consumer, enterprise storage, data center, mobile,
embedded, and automotive applications. Our common stock is traded
on the NASDAQ under the MU symbol. To learn more about Micron
Technology, Inc., visit www.micron.com.
The Micron logo and Micron symbol are trademarks of Micron
Technology, Inc. All other trademarks are the property of their
respective owners.
This press release contains forward-looking statements regarding
the industry and our strategic position and financial results.
These forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ
materially. Please refer to the documents we file with the
Securities and Exchange Commission, specifically our most recent
Form 10-K and Form 10-Q. These documents contain and identify
important factors that could cause our actual results to differ
materially from those contained in these forward-looking
statements. These certain factors can be found at
www.micron.com/certainfactors. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. We are under no duty to update any of
the forward-looking statements after the date of this release to
conform these statements to actual results.
(1) GAAP represents U.S. Generally Accepted Accounting
Principles.(2) Non-GAAP represents GAAP excluding the impact of
certain activities which our management excludes in analyzing our
operating results and understanding trends in our earnings.
Non-GAAP also includes the impact on shares used in per share
calculations of our outstanding capped call transactions and from
the exclusion of stock-based compensation. Fiscal 2016 amounts have
been adjusted to conform with current period presentation to
exclude stock-based compensation and the amortization of
acquisition related intangibles from our non-GAAP reporting. For a
reconciliation of GAAP to non-GAAP results, see the accompanying
financial tables and footnotes.
|
MICRON TECHNOLOGY, INC. |
CONSOLIDATED FINANCIAL SUMMARY |
(in millions except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
4th Qtr. |
|
3rd Qtr. |
|
4th Qtr. |
|
Year Ended |
|
|
August 31,2017 |
|
June 1,2017 |
|
September 1,2016 |
|
August 31,2017 |
|
September 1,2016 |
Net sales |
|
$ |
6,138 |
|
|
$ |
5,566 |
|
|
$ |
3,217 |
|
|
$ |
20,322 |
|
|
$ |
12,399 |
|
Cost of goods sold |
|
3,026 |
|
|
2,957 |
|
|
2,638 |
|
|
11,886 |
|
|
9,894 |
|
Gross
margin |
|
3,112 |
|
|
2,609 |
|
|
579 |
|
|
8,436 |
|
|
2,505 |
|
Selling, general, and
administrative |
|
193 |
|
|
204 |
|
|
157 |
|
|
743 |
|
|
659 |
|
Research and
development |
|
447 |
|
|
434 |
|
|
411 |
|
|
1,824 |
|
|
1,617 |
|
Restructure and asset
impairments (1) |
|
(27 |
) |
|
12 |
|
|
51 |
|
|
18 |
|
|
67 |
|
Other operating
(income) expense, net |
|
(3 |
) |
|
(4 |
) |
|
(8 |
) |
|
(17 |
) |
|
(6 |
) |
Operating
income (loss) |
|
2,502 |
|
|
1,963 |
|
|
(32 |
) |
|
5,868 |
|
|
168 |
|
Interest income
(expense), net (2) |
|
(132 |
) |
|
(143 |
) |
|
(126 |
) |
|
(560 |
) |
|
(395 |
) |
Other non-operating
income (expense), net (2) |
|
(49 |
) |
|
(83 |
) |
|
(10 |
) |
|
(112 |
) |
|
(54 |
) |
Income tax (provision)
benefit (3) |
|
47 |
|
|
(92 |
) |
|
(3 |
) |
|
(114 |
) |
|
(19 |
) |
Equity in net income
(loss) of equity method investees |
|
1 |
|
|
2 |
|
|
1 |
|
|
8 |
|
|
25 |
|
Net (income)
attributable to noncontrolling interests |
|
(1 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Net income (loss)
attributable to Micron |
|
$ |
2,368 |
|
|
$ |
1,647 |
|
|
$ |
(170 |
) |
|
$ |
5,089 |
|
|
$ |
(276 |
) |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.13 |
|
|
$ |
1.49 |
|
|
$ |
(0.16 |
) |
|
$ |
4.67 |
|
|
$ |
(0.27 |
) |
Diluted |
|
1.99 |
|
|
1.40 |
|
|
(0.16 |
) |
|
4.41 |
|
|
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
Number of shares used
in per share calculations |
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,109 |
|
|
1,106 |
|
|
1,037 |
|
|
1,089 |
|
|
1,036 |
|
Diluted |
|
1,187 |
|
|
1,177 |
|
|
1,037 |
|
|
1,154 |
|
|
1,036 |
|
CONSOLIDATED FINANCIAL SUMMARY, Continued |
|
As of |
|
August 31, 2017 |
|
June 1, 2017 |
|
September 1, 2016 |
Cash and short-term
investments |
|
$ |
5,428 |
|
|
$ |
4,330 |
|
|
$ |
4,398 |
|
Receivables |
|
3,759 |
|
|
3,497 |
|
|
2,068 |
|
Inventories |
|
3,123 |
|
|
3,064 |
|
|
2,889 |
|
Total current
assets |
|
12,457 |
|
|
11,023 |
|
|
9,495 |
|
Long-term marketable
investments |
|
617 |
|
|
471 |
|
|
414 |
|
Property, plant, and
equipment, net |
|
19,431 |
|
|
19,014 |
|
|
14,686 |
|
Total assets |
|
35,336 |
|
|
33,267 |
|
|
27,540 |
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses |
|
3,664 |
|
|
3,656 |
|
|
3,879 |
|
Current debt (2) |
|
1,262 |
|
|
1,161 |
|
|
756 |
|
Total current
liabilities |
|
5,334 |
|
|
5,143 |
|
|
4,835 |
|
Long-term debt (2) |
|
9,872 |
|
|
10,485 |
|
|
9,154 |
|
|
|
|
|
|
|
|
Total Micron
shareholders' equity |
|
18,621 |
|
|
16,171 |
|
|
12,080 |
|
Noncontrolling
interests in subsidiaries |
|
849 |
|
|
848 |
|
|
848 |
|
Total equity |
|
19,470 |
|
|
17,019 |
|
|
12,928 |
|
|
|
Year Ended |
|
|
August 31, 2017 |
|
September 1, 2016 |
Net cash provided by
operating activities |
|
$ |
8,153 |
|
|
$ |
3,168 |
|
Net cash provided by
(used for) investing activities (a) |
|
(7,537 |
) |
|
(3,044 |
) |
Net cash provided by
(used for) financing activities |
|
349 |
|
|
1,745 |
|
|
|
|
|
|
Depreciation and
amortization |
|
3,986 |
|
|
3,106 |
|
Investments in capital
expenditures |
|
(5,253 |
) |
|
(5,863 |
) |
Acquisition of
Inotera |
|
(2,634 |
) |
|
— |
|
Proceeds from issuance
of debt and equipment sale-leaseback transactions |
|
3,311 |
|
|
2,964 |
|
Repayments of debt |
|
(2,558 |
) |
|
(870 |
) |
(a) 2016
amount adjusted for the retrospective adoption of ASU 2016-18 –
Restricted Cash. |
|
|
|
Inotera Acquisition
On December 6, 2016, we acquired the remaining 67% interest in
Inotera Memories, Inc. ("Inotera") and began consolidating
Inotera's operating results. Cash paid for the Inotera acquisition
was funded, in part, with proceeds from a term loan and the sale of
shares of our common stock to Nanya. Inotera manufactures DRAM
products at its 300mm wafer fabrication facility in Taiwan, and
previously sold such products exclusively to us through supply
agreements.
The aggregate fair value of consideration consisted of $3.11
billion of cash, $995 million for the fair value of Micron shares
exchanged for Inotera shares, and $1.44 billion for the fair value
of our previously-held equity interest in Inotera, net of $361
million for payments attributed to intercompany balances with
Inotera. The provisional fair values of assets and liabilities
acquired include, among other items, cash of $118 million;
inventories of $285 million; property, plant, and equipment of
$3.72 billion; goodwill of $1.12 billion; and accounts payable and
accrued expenses of ($232) million, and could change as additional
information becomes available. In connection with the acquisition,
we revalued our 33% interest in Inotera to its fair value and
recognized a non-operating gain of $71 million in the second
quarter of 2017.
In connection with our acquisition of Inotera, in the second
quarter of 2017, we sold 58 million shares of our common stock to
Nanya for $986 million, of which 54 million were issued from
treasury stock. As a result, treasury stock decreased by $1.03
billion, which resulted in a decrease in retained earnings of $104
million for the difference between the carrying value of the
treasury stock and its $925 million fair value. These shares were
issued in a transaction exempt from the registration requirements
of the Securities Act of 1933, as amended, and subject to certain
restrictions on transfers.
(1) In the fourth quarter of 2017, we recognized gains related
to announced restructure and exit activities, primarily from the
disposition of assets. In the third quarter of 2017, we recognized
a loss of $11 million in connection with the disposition of our
assembly and test facility located in Akita, Japan. In the fourth
quarter of 2016, we initiated a restructure plan in response to
business conditions and the need to accelerate focus on our key
priorities. As a result, we incurred charges of $33 million in
2017 and $58 million in the fourth quarter of 2016.
(2) In connection with the Inotera acquisition, on December 6,
2016, we drew 80 billion New Taiwan dollars under a collateralized,
five-year variable-rate term loan. Principal under the term loan is
payable in six equal semi-annual installments, commencing in June
2019.
In November 2016, we entered into a five-year variable-rate
facility agreement to obtain up to $800 million of financing,
collateralized by certain production equipment and drew $800
million under the facility in 2017. Principal is payable in 16
equal quarterly installments beginning in March 2018.
On August 11, 2017, we redeemed our 2022 Notes with an aggregate
carrying value of $592 million and recognized a non-operating loss
of $34 million in the fourth quarter of 2017. On April 11, 2017, we
repurchased $952 million in aggregate principal of our 2025 Notes
and 2026 Notes, with an aggregate carrying value of $943 million,
and recognized a non-operating loss of $60 million in the third
quarter of 2017.
(3) Our income taxes reflect operations in tax jurisdictions,
including Singapore and Taiwan, where our earnings are indefinitely
reinvested and the tax rates are significantly lower than the U.S.
statutory rate; operations outside the U.S., including Singapore,
where we have tax incentive arrangements that further decrease our
effective tax rates; and a valuation allowance against
substantially all of our U.S. net deferred tax assets. Income tax
(provision) benefit consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
4th Qtr. |
|
3rd Qtr. |
|
4th Qtr. |
|
Year Ended |
|
|
August 31, 2017 |
|
June 1, 2017 |
|
September 1, 2016 |
|
August 31,2017 |
|
September 1,2016 |
Utilization of and
other changes in net deferred tax assets of MMJ, MMT, and
Inotera |
|
$ |
106 |
|
|
$ |
(31 |
) |
|
$ |
(12 |
) |
|
$ |
54 |
|
|
$ |
(114 |
) |
U.S. valuation
allowance release resulting from business acquisition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
Other income tax
(provision) benefit, primarily other non-U.S. operations |
|
(59 |
) |
|
(61 |
) |
|
9 |
|
|
(168 |
) |
|
54 |
|
|
|
$ |
47 |
|
|
$ |
(92 |
) |
|
$ |
(3 |
) |
|
$ |
(114 |
) |
|
$ |
(19 |
) |
|
Income taxes for the full year of 2017 and 2016 included tax
benefits of $28 million and $58 million, respectively, related to
the favorable resolution of certain tax matters, which were
previously reserved as uncertain tax positions.
|
MICRON TECHNOLOGY, INC. |
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS |
(in millions, except per share
amounts) |
|
|
4th Qtr. |
|
3rd Qtr. |
|
4th Qtr. |
|
August 31, 2017 |
|
June 1, 2017 |
|
September 1, 2016 |
|
GAAP |
Adj |
Non-GAAP |
|
GAAP |
Adj |
Non-GAAP |
|
GAAP |
Adj |
Non-GAAP |
Net sales |
$ |
6,138 |
|
$ |
— |
|
$ |
6,138 |
|
|
$ |
5,566 |
|
$ |
— |
|
$ |
5,566 |
|
|
$ |
3,217 |
|
$ |
— |
|
$ |
3,217 |
|
Cost of goods sold |
3,026 |
|
(35 |
) |
2,991 |
|
|
2,957 |
|
(62 |
) |
2,895 |
|
|
2,638 |
|
(19 |
) |
2,619 |
|
Gross
margin |
3,112 |
|
35 |
|
3,147 |
|
|
2,609 |
|
62 |
|
2,671 |
|
|
579 |
|
19 |
|
598 |
|
percent
of revenue |
50.7% |
|
|
51.3% |
|
|
46.9% |
|
|
48.0% |
|
|
18.0% |
|
|
18.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative |
193 |
|
(22 |
) |
171 |
|
|
204 |
|
(20 |
) |
184 |
|
|
157 |
|
(15 |
) |
142 |
|
Research and
development |
447 |
|
(14 |
) |
433 |
|
|
434 |
|
(14 |
) |
420 |
|
|
411 |
|
(13 |
) |
398 |
|
Restructure and asset
impairments |
(27 |
) |
27 |
|
— |
|
|
12 |
|
(12 |
) |
— |
|
|
51 |
|
(51 |
) |
— |
|
Other operating
(income) expense, net |
(3 |
) |
— |
|
(3 |
) |
|
(4 |
) |
— |
|
(4 |
) |
|
(8 |
) |
— |
|
(8 |
) |
Operating
expenses |
610 |
|
(9 |
) |
601 |
|
|
646 |
|
(46 |
) |
600 |
|
|
611 |
|
(79 |
) |
532 |
|
Operating
income (loss) |
2,502 |
|
44 |
|
2,546 |
|
|
1,963 |
|
108 |
|
2,071 |
|
|
(32 |
) |
98 |
|
66 |
|
percent
of revenue |
40.8% |
|
|
41.5% |
|
|
35.3% |
|
|
37.2% |
|
|
(1.0)% |
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net |
(132 |
) |
32 |
|
(100 |
) |
|
(143 |
) |
30 |
|
(113 |
) |
|
(126 |
) |
32 |
|
(94 |
) |
Other non-operating
income (expense), net |
(49 |
) |
49 |
|
— |
|
|
(83 |
) |
83 |
|
— |
|
|
(10 |
) |
11 |
|
1 |
|
|
2,321 |
|
125 |
|
2,446 |
|
|
1,737 |
|
221 |
|
1,958 |
|
|
(168 |
) |
141 |
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision)
benefit |
47 |
|
(107 |
) |
(60 |
) |
|
(92 |
) |
28 |
|
(64 |
) |
|
(3 |
) |
23 |
|
20 |
|
Equity in net income
(loss) of equity method investees |
1 |
|
— |
|
1 |
|
|
2 |
|
— |
|
2 |
|
|
1 |
|
(3 |
) |
(2 |
) |
Net
income (loss) |
2,369 |
|
18 |
|
2,387 |
|
|
1,647 |
|
249 |
|
1,896 |
|
|
(170 |
) |
161 |
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interests |
(1 |
) |
— |
|
(1 |
) |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
Net
income (loss) attributable to Micron |
$ |
2,368 |
|
$ |
18 |
|
$ |
2,386 |
|
|
$ |
1,647 |
|
$ |
249 |
|
$ |
1,896 |
|
|
$ |
(170 |
) |
$ |
161 |
|
$ |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculations |
1,187 |
|
(6 |
) |
1,181 |
|
|
1,177 |
|
(8 |
) |
1,169 |
|
|
1,037 |
|
— |
|
1,037 |
|
Diluted earnings (loss)
per share |
$ |
1.99 |
|
$ |
0.03 |
|
$ |
2.02 |
|
|
$ |
1.40 |
|
$ |
0.22 |
|
$ |
1.62 |
|
|
$ |
(0.16 |
) |
$ |
0.15 |
|
$ |
(0.01 |
) |
|
Year Ended |
|
Year Ended |
|
August 31, 2017 |
|
September 1, 2016 |
|
GAAP |
Adj |
Non-GAAP |
|
GAAP |
Adj |
Non-GAAP |
Net sales |
$ |
20,322 |
|
$ |
— |
|
$ |
20,322 |
|
|
$ |
12,399 |
|
$ |
— |
|
$ |
12,399 |
|
Cost of goods sold |
11,886 |
|
(203 |
) |
11,683 |
|
|
9,894 |
|
(87 |
) |
9,807 |
|
Gross
margin |
8,436 |
|
203 |
|
8,639 |
|
|
2,505 |
|
87 |
|
2,592 |
|
percent
of revenue |
41.5% |
|
|
42.5% |
|
|
20.2% |
|
|
20.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative |
743 |
|
(88 |
) |
655 |
|
|
659 |
|
(69 |
) |
590 |
|
Research and
development |
1,824 |
|
(55 |
) |
1,769 |
|
|
1,617 |
|
(59 |
) |
1,558 |
|
Restructure and asset
impairments |
18 |
|
(18 |
) |
— |
|
|
67 |
|
(67 |
) |
— |
|
Other operating
(income) expense, net |
(17 |
) |
— |
|
(17 |
) |
|
(6 |
) |
— |
|
(6 |
) |
Operating
expenses |
2,568 |
|
(161 |
) |
2,407 |
|
|
2,337 |
|
(195 |
) |
2,142 |
|
Operating
income (loss) |
5,868 |
|
364 |
|
6,232 |
|
|
168 |
|
282 |
|
450 |
|
percent
of revenue |
28.9% |
|
|
30.7% |
|
|
1.4% |
|
|
3.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net |
(560 |
) |
125 |
|
(435 |
) |
|
(395 |
) |
126 |
|
(269 |
) |
Other non-operating
income (expense), net |
(112 |
) |
112 |
|
— |
|
|
(54 |
) |
23 |
|
(31 |
) |
|
5,196 |
|
601 |
|
5,797 |
|
|
(281 |
) |
431 |
|
150 |
|
|
|
|
|
|
|
|
|
Income tax (provision)
benefit |
(114 |
) |
(59 |
) |
(173 |
) |
|
(19 |
) |
85 |
|
66 |
|
Equity in net income
(loss) of equity method investees |
8 |
|
17 |
|
25 |
|
|
25 |
|
33 |
|
58 |
|
Net
income (loss) |
5,090 |
|
559 |
|
5,649 |
|
|
(275 |
) |
549 |
|
274 |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interests |
(1 |
) |
— |
|
(1 |
) |
|
(1 |
) |
— |
|
(1 |
) |
Net
income (loss) attributable to Micron |
$ |
5,089 |
|
$ |
559 |
|
$ |
5,648 |
|
|
$ |
(276 |
) |
$ |
549 |
|
$ |
273 |
|
|
|
|
|
|
|
|
|
Shares used in
calculations |
1,154 |
|
(14 |
) |
1,140 |
|
|
1,036 |
|
14 |
|
1,050 |
|
Diluted earnings (loss)
per share |
$ |
4.41 |
|
$ |
0.55 |
|
$ |
4.96 |
|
|
$ |
(0.27 |
) |
$ |
0.53 |
|
$ |
0.26 |
|
MICRON TECHNOLOGY, INC. |
NON-GAAP ADJUSTMENTS |
(in millions) |
|
|
4th Qtr. |
|
3rd Qtr. |
|
4th Qtr. |
|
Year Ended |
|
August 31, 2017 |
|
June 1, 2017 |
|
September 1, 2016 |
|
August 31, 2017 |
|
September 1, 2016 |
Non-GAAP
adjustments |
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
|
|
|
|
|
|
|
|
Flow-through of Inotera inventory step up |
$ |
11 |
|
|
$ |
36 |
|
|
$ |
— |
|
|
$ |
107 |
|
|
$ |
— |
|
Stock-based compensation |
22 |
|
|
24 |
|
|
18 |
|
|
88 |
|
|
76 |
|
Other |
2 |
|
|
2 |
|
|
1 |
|
|
8 |
|
|
11 |
|
|
35 |
|
|
62 |
|
|
19 |
|
|
203 |
|
|
87 |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general, and administrative |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
22 |
|
|
20 |
|
|
14 |
|
|
75 |
|
|
66 |
|
Inotera
acquisition costs |
— |
|
|
— |
|
|
1 |
|
|
13 |
|
|
3 |
|
|
22 |
|
|
20 |
|
|
15 |
|
|
88 |
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
13 |
|
|
13 |
|
|
11 |
|
|
52 |
|
|
49 |
|
Other |
1 |
|
|
1 |
|
|
2 |
|
|
3 |
|
|
10 |
|
|
14 |
|
|
14 |
|
|
13 |
|
|
55 |
|
|
59 |
|
|
|
|
|
|
|
|
|
|
|
Restructure and asset impairments |
(27 |
) |
|
12 |
|
|
51 |
|
|
18 |
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
Interest
income (expense), net |
|
|
|
|
|
|
|
|
|
Amortization of debt discount and other costs |
32 |
|
|
30 |
|
|
32 |
|
|
125 |
|
|
126 |
|
|
|
|
|
|
|
|
|
|
|
Other
non-operating income (expense) |
|
|
|
|
|
|
|
|
|
(Gain)
loss from changes in currency exchange rates |
12 |
|
|
22 |
|
|
11 |
|
|
74 |
|
|
24 |
|
Loss on
debt repurchases and conversions |
37 |
|
|
61 |
|
|
— |
|
|
100 |
|
|
4 |
|
(Gain)
loss from business acquisition activities |
— |
|
|
— |
|
|
— |
|
|
(71 |
) |
|
(5 |
) |
Other |
— |
|
|
— |
|
|
— |
|
|
9 |
|
|
— |
|
|
49 |
|
|
83 |
|
|
11 |
|
|
112 |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
|
|
|
|
|
|
|
Estimated
tax effects of above and non-cash changes in net deferred income
taxes |
(107 |
) |
|
28 |
|
|
23 |
|
|
(59 |
) |
|
85 |
|
|
|
|
|
|
|
|
|
|
|
Equity in
net income (loss) of equity method investments |
|
|
|
|
|
|
|
|
|
Impairment of equity method investments |
— |
|
|
— |
|
|
— |
|
|
16 |
|
|
25 |
|
Other |
— |
|
|
— |
|
|
(3 |
) |
|
1 |
|
|
8 |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
17 |
|
|
33 |
|
|
$ |
18 |
|
|
$ |
249 |
|
|
$ |
161 |
|
|
$ |
559 |
|
|
$ |
549 |
|
|
The tables above reconcile GAAP to non-GAAP results, diluted
shares, and diluted earnings (loss) per share. The non-GAAP
adjustments above may or may not be infrequent or nonrecurring in
nature but are a result of periodic or non-core operating
activities. We believe this non-GAAP information is helpful to
understanding trends and in analyzing our operating results and
earnings. We are providing this information to investors to assist
in performing analysis of our operating results. When evaluating
performance and making decisions on how to allocate our resources,
management uses this non-GAAP information and believes investors
should have access to similar data when making their investment
decisions. We believe these non-GAAP financial measures increase
transparency by providing investors with useful supplemental
information about the financial performance of our business,
enabling enhanced comparison of our operating results between
periods and with peer companies. The presentation of these adjusted
amounts vary from numbers presented in accordance with U.S. GAAP
and therefore may not be comparable to amounts reported by other
companies. In the first quarter of fiscal 2017, we began excluding
stock-based compensation and amortization of acquisition-related
intangible assets from non-GAAP results. Comparative periods have
been restated.
Our management excludes the following items in analyzing our
operating results and understanding trends in our earnings:
- Flow-through of business acquisition-related inventory
adjustments;
- Stock-based compensation;
- Acquisition-related costs;
- Restructure and asset impairments;
- Amortization of debt discount and other costs, including the
accretion of non-cash interest expense associated with our
convertible debt and MMJ installment debt;
- Gains and losses from changes in currency exchange rates;
- Losses from debt repurchases and conversions;
- Gains and losses loss from business acquisition
activities;
- The estimated tax effects of above and non-cash changes in net
deferred income taxes; and
- Impairments of equity method investments.
Our outstanding capped call transactions are anti-dilutive in
GAAP earnings per share but are expected to mitigate the dilutive
effect of our convertible notes. In periods with non-GAAP income
attributable to Micron, non-GAAP diluted shares include the impact
of the capped calls, based on the average share price for the
period the capped calls are outstanding. Non-GAAP diluted shares
are also adjusted for the impact of additional shares resulting
from the exclusion of stock-based compensation from non-GAAP
income.
|
|
|
Contacts: |
Shanye Hudson |
Marc Musgrove |
|
Investor Relations |
Media Relations |
|
shudson@micron.com |
mmusgrove@micron.com |
|
(208) 492-1205 |
(208) 363-2405 |
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