MICRON TECHNOLOGY, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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1-10658
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75-1618004
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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8000 South Federal Way
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Boise, Idaho 83716-9632
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(Address of principal executive offices)
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(208) 368-4000
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(Registrant’s telephone number, including area code)
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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(d) Exhibits.
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Exhibit No.
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Description
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99.1
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Press Release issued on December 21, 2011
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MICRON TECHNOLOGY, INC.
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Date:
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December 21, 2011
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By:
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/s/ Ronald C. Foster
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Name:
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Ronald C. Foster
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Title:
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Chief Financial Officer and
Vice President of Finance
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Exhibit
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Description
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99.1
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Press Release issued on December 21, 2011
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Contacts:
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Kipp A. Bedard
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Daniel Francisco
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Investor Relations
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Media Relations
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kbedard@micron.com
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dfrancisco@micron.com
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(208) 368-4465
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(208) 368-5584
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1st Qtr.
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4th Qtr.
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1st Qtr.
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||||||||||
Dec. 1,
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Sep. 1,
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Dec. 2,
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||||||||||
2011
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2011
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2010
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Net sales
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$ | 2,090 | $ | 2,140 | $ | 2,252 | ||||||
Cost of goods sold
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1,785 | 1,819 | 1,728 | |||||||||
Gross margin
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305 | 321 | 524 | |||||||||
Selling, general and administrative
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151 | 155 | 140 | |||||||||
Research and development
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230 | 209 | 185 | |||||||||
Other operating (income) expense, net (1)
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6 | 8 | (191 | ) | ||||||||
Operating income (loss)
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(82 | ) | (51 | ) | 390 | |||||||
Interest income (expense), net
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(33 | ) | (28 | ) | (30 | ) | ||||||
Other non-operating income (expense), net (2)
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-- | 1 | (114 | ) | ||||||||
Income tax (provision) benefit (3)
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2 | (16 | ) | (48 | ) | |||||||
Equity in net income (losses) of equity method investees
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(74 | ) | (40 | ) | (26 | ) | ||||||
Net (income) loss attributable to noncontrolling interests
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-- | (1 | ) | (17 | ) | |||||||
Net income (loss) attributable to Micron
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$ | (187 | ) | $ | (135 | ) | $ | 155 | ||||
Earnings (loss) per share:
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Basic
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$ | (0.19 | ) | $ | (0.14 | ) | $ | 0.16 | ||||
Diluted
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(0.19 | ) | (0.14 | ) | 0.15 | |||||||
Number of shares used in per share calculations:
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Basic
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981.4 | 992.2 | 972.9 | |||||||||
Diluted
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981.4 | 992.2 | 1,031.3 |
As of
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Dec. 1,
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Sep. 1,
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|||||||
2011
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2011
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Cash and short-term investments
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$ | 1,915 | $ | 2,160 | ||||
Receivables
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1,383 | 1,497 | ||||||
Inventories
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2,097 | 2,080 | ||||||
Total current assets
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5,491 | 5,832 | ||||||
Property, plant and equipment, net
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7,472 | 7,555 | ||||||
Total assets
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14,211 | 14,752 | ||||||
Accounts payable and accrued expenses
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1,413 | 1,830 | ||||||
Current portion of long-term debt
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146 | 140 | ||||||
Total current liabilities
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2,021 | 2,480 | ||||||
Long-term debt
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1,973 | 1,861 | ||||||
Total Micron shareholders’ equity
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8,271 | 8,470 | ||||||
Noncontrolling interests in subsidiaries
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1,438 | 1,382 | ||||||
Total equity
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9,709 | 9,852 |
Three Months Ended
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Dec. 1,
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Dec. 2,
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2011
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2010
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Net cash provided by operating activities
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$ | 404 | $ | 732 | ||||
Net cash used for investing activities
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(714 | ) | (436 | ) | ||||
Net cash provided by (used for) financing activities
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65 | (798 | ) | |||||
Depreciation and amortization
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581 | 517 | ||||||
Expenditures for property, plant and equipment
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(697 | ) | (465 | ) | ||||
Payments on equipment purchase contracts
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(49 | ) | (105 | ) | ||||
Net contributions from (distributions to) noncontrolling interests
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55 | (49 | ) | |||||
Noncash equipment acquisitions on contracts payable and capital leases
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192 | 63 |
(1)
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Other operating (income) expense consisted of the following:
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1st Qtr.
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4th Qtr.
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1st Qtr.
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Dec. 1,
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Sep. 1,
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Dec. 2,
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2011
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2011
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2010
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(Gain) loss from changes in currency exchange rates
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$ | 11 | $ | -- | $ | 7 | ||||||
(Gain) loss on disposition of property, plant and equipment
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1 | 6 | -- | |||||||||
Samsung patent cross-license agreement
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-- | -- | (200 | ) | ||||||||
Other
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(6 | ) | 2 | 2 | ||||||||
$ | 6 | $ | 8 | $ | (191 | ) |
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In the first quarter of fiscal 2011, the company entered into a 10-year patent cross-license agreement with Samsung Electronics Co. Ltd. (“Samsung”). Under the agreement, Samsung agreed to pay the company $275 million, of which $200 million was received in the first quarter of fiscal 2011. The license is a life-of-patents license for existing patents and applications, and a 10-year term license for all other patents.
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(2)
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During the first quarter of fiscal 2011, in connection with a series of debt restructure transactions, the company recognized a loss of $111 million as follows:
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·
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$15 million from the exchange of $175 million in aggregate principal amount of the company’s 1.875% Convertible Senior Notes due 2014 (the “2014 Notes”) for $175 million in aggregate principal amount of new 1.875% Convertible Senior Notes due 2027;
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·
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$17 million (including transaction fees) from the repurchase of $176 million in aggregate principal amount of the company’s 2014 Notes for $171 million in cash; and
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·
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$79 million (including transaction fees) from the repurchase of $91 million in aggregate principal amount of the company’s 4.25% Convertible Senior Notes due 2013 for $166 million in cash.
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(3)
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Income taxes for the first quarter of fiscal 2012 included a tax benefit of $14 million related to the favorable resolution of certain prior year tax matters. Income taxes in the first quarter of fiscal 2011 included a charge of $33 million in connection with the receipt of $200 million from Samsung. The company has a valuation allowance for a substantial portion of its net deferred tax asset associated with its U.S. operations. Taxes attributable to U.S. operations in fiscal 2012 and 2011 were substantially offset by changes in the valuation allowance.
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