MICRON TECHNOLOGY, INC. |
(Exact name of registrant as specified in its charter) |
Delaware | 1-10658 | 75-1618004 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
8000 South Federal Way |
Boise, Idaho 83716-9632 |
(Address of principal executive offices) |
(208) 368-4000 |
(Registrant’s telephone number, including area code) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release issued on June 25, 2015 |
MICRON TECHNOLOGY, INC. | |||
Date: | June 25, 2015 | By: | /s/ Ernest E. Maddock |
Name: | Ernest E. Maddock | ||
Title: | Chief Financial Officer and Vice President of Finance |
Exhibit | Description | |
99.1 | Press Release issued on June 25, 2015 |
Contacts: | Kipp A. Bedard | Daniel Francisco |
Investor Relations | Media Relations | |
kbedard@micron.com | dfrancisco@micron.com | |
(208) 368-4465 | (208) 368-5584 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine Months Ended | |||||||||||||||||
Jun 4, 2015 | Mar 5, 2015 | May 29, 2014 | Jun 4, 2015 | May 29, 2014 | ||||||||||||||||
Net sales | $ | 3,853 | $ | 4,166 | $ | 3,982 | $ | 12,592 | $ | 12,131 | ||||||||||
Cost of goods sold | 2,651 | 2,761 | 2,614 | 8,347 | 8,079 | |||||||||||||||
Gross margin | 1,202 | 1,405 | 1,368 | 4,245 | 4,052 | |||||||||||||||
Selling, general and administrative | 169 | 187 | 174 | 549 | 527 | |||||||||||||||
Research and development | 406 | 379 | 349 | 1,161 | 1,013 | |||||||||||||||
Other operating (income) expense, net (1) | (4 | ) | (16 | ) | 6 | (36 | ) | 253 | ||||||||||||
Operating income | 631 | 855 | 839 | 2,571 | 2,259 | |||||||||||||||
Interest income (expense), net | (88 | ) | (75 | ) | (75 | ) | (246 | ) | (248 | ) | ||||||||||
Other non-operating income (expense), net (2) | (16 | ) | (6 | ) | (21 | ) | (71 | ) | (223 | ) | ||||||||||
Income tax (provision) benefit (3) | (104 | ) | (47 | ) | (72 | ) | (226 | ) | (215 | ) | ||||||||||
Equity in net income of equity method investees (4) | 68 | 208 | 135 | 400 | 355 | |||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (1 | ) | — | — | (33 | ) | |||||||||||||
Net income attributable to Micron | $ | 491 | $ | 934 | $ | 806 | $ | 2,428 | $ | 1,895 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.87 | $ | 0.76 | $ | 2.26 | $ | 1.79 | ||||||||||
Diluted | 0.42 | 0.78 | 0.68 | 2.05 | 1.58 | |||||||||||||||
Number of shares used in per share calculations: | ||||||||||||||||||||
Basic | 1,073 | 1,074 | 1,067 | 1,072 | 1,058 | |||||||||||||||
Diluted | 1,170 | 1,190 | 1,190 | 1,185 | 1,196 |
As of | Jun 4, 2015 | Mar 5, 2015 | Aug 28, 2014 | |||||||||
Cash and short-term investments | $ | 4,860 | $ | 4,479 | $ | 4,534 | ||||||
Receivables | 2,530 | 2,761 | 2,906 | |||||||||
Inventories | 2,381 | 2,377 | 2,455 | |||||||||
Total current assets | 10,008 | 9,918 | 10,245 | |||||||||
Long-term marketable investments | 2,470 | 1,869 | 819 | |||||||||
Property, plant and equipment, net | 9,857 | 9,233 | 8,682 | |||||||||
Total assets | 25,136 | 23,818 | 22,498 | |||||||||
Accounts payable and accrued expenses | 3,204 | 2,662 | 2,864 | |||||||||
Current debt (2) (5) | 1,148 | 1,199 | 1,638 | |||||||||
Total current liabilities | 4,566 | 4,120 | 4,811 | |||||||||
Long-term debt (2) (5) | 6,403 | 5,519 | 4,955 | |||||||||
Total Micron shareholders' equity | 12,458 | 12,426 | 10,771 | |||||||||
Noncontrolling interests in subsidiaries | 897 | 815 | 802 | |||||||||
Total equity | 13,355 | 13,241 | 11,573 |
Nine Months Ended | ||||||||
Jun 4, 2015 | May 29, 2014 | |||||||
Net cash provided by operating activities | $ | 4,178 | $ | 4,352 | ||||
Net cash provided by (used for) investing activities | (4,722 | ) | (1,204 | ) | ||||
Net cash provided by (used for) financing activities | 215 | (1,953 | ) | |||||
Depreciation and amortization | 2,062 | 1,680 | ||||||
Expenditures for property, plant and equipment | (2,256 | ) | (1,800 | ) | ||||
Proceeds from issuance of debt and sale-leaseback transactions | 2,463 | 1,076 | ||||||
Repayments of debt | (2,051 | ) | (3,134 | ) |
(1) | Other operating expense for the first nine months of fiscal 2014 included a charge of $233 million to accrue a liability in connection with the company's settlement of all pending litigation with Rambus, Inc., including all antitrust and patent matters. The amount accrued represented the discounted value of amounts due under the arrangement. |
(2) | Other non-operating income (expense) consisted of the following: |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine Months Ended | |||||||||||||||||
Jun 4, 2015 | Mar 5, 2015 | May 29, 2014 | Jun 4, 2015 | May 29, 2014 | ||||||||||||||||
Loss on restructure of debt | $ | (18 | ) | $ | — | $ | (16 | ) | $ | (48 | ) | $ | (171 | ) | ||||||
Gain (loss) from changes in currency exchange rates | 1 | (6 | ) | (5 | ) | (26 | ) | (25 | ) | |||||||||||
Adjustment to gain on MMJ Acquisition | — | — | — | — | (33 | ) | ||||||||||||||
Other | 1 | — | — | 3 | 6 | |||||||||||||||
$ | (16 | ) | $ | (6 | ) | $ | (21 | ) | $ | (71 | ) | $ | (223 | ) |
(3) | Income taxes for the third and second quarters of fiscal 2015 and third quarter of fiscal 2014 included $22 million, $33 million and $49 million, respectively, related to the utilization of deferred tax assets as a result of MMJ's and MMT's operations. Income taxes for the third quarter of fiscal 2015 also included $45 million to write down the value of MMJ's deferred tax assets as a result of changes in Japan tax laws and rates. Remaining taxes for fiscal 2015 and 2014 primarily reflect taxes on the company's other non-U.S. operations. The company has a full valuation allowance for its net deferred tax asset associated with its U.S. operations. The provision (benefit) for taxes on U.S. operations for fiscal 2015 and 2014 was substantially offset by changes in the valuation allowance. |
(4) | Equity in net income of equity method investees for the second quarter of fiscal 2015 included $65 million related to the company's share of Inotera's release of valuation allowances against its deferred tax assets related to its net operating loss carryforward. |
(5) | On April 30, 2015, the company issued $550 million in aggregate principal amount of 5.25% Senior Notes due January 2024 (the "2024 Notes") and $450 million in aggregate principal amount of 5.625% Senior Notes due January 2026 (the "2026 Notes"). Issuance costs for the 2024 Notes and 2026 Notes totaled $9 million. On February 3, 2015, the company issued $1.00 billion in aggregate principal amount of 5.25% Senior Notes due August 2023 (the "2023 Notes"). Issuance costs for the 2023 Notes totaled $12 million. |
3rd Qtr. | 2nd Qtr. | |||||||||
Jun 4, 2015 | Mar 5, 2015 | |||||||||
GAAP net income attributable to Micron | $ | 491 | $ | 934 | ||||||
Non-GAAP adjustments: | ||||||||||
Restructure and asset impairments | 1 | 1 | ||||||||
Amortization of debt discount and other costs | 34 | 33 | ||||||||
Loss on restructure of debt | 18 | — | ||||||||
(Gain) loss from changes in currency exchange rates | (1 | ) | 6 | |||||||
Estimated tax effects of above items | — | (1 | ) | |||||||
Non-cash taxes from MMJ and MMT | 22 | 33 | ||||||||
Non-cash taxes from MMJ for changes in Japan tax laws and rates | 45 | — | ||||||||
Non-cash taxes from Inotera | 10 | (65 | ) | |||||||
Total non-GAAP adjustments | 129 | 7 | ||||||||
Non-GAAP net income attributable to Micron | $ | 620 | $ | 941 | ||||||
Number of shares used in diluted per share calculations: | ||||||||||
GAAP | 1,170 | 1,190 | ||||||||
Effect of capped calls | (31 | ) | (27 | ) | ||||||
Non-GAAP | 1,139 | 1,163 | ||||||||
Diluted earnings per share: | ||||||||||
GAAP | $ | 0.42 | $ | 0.78 | ||||||
Effects of above | 0.12 | 0.03 | ||||||||
Non-GAAP | $ | 0.54 | $ | 0.81 |
• | Restructure and asset impairments; |
• | Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with the company's convertible debt and the MMJ creditor installment debt; |
• | Loss on restructure of debt; |
• | (Gain) loss from changes in currency exchange rates; |
• | The estimated tax effects of above items; |
• | Non-cash taxes resulting from utilization of, and other changes in, deferred tax assets of MMJ and MMT; |
• | Non-cash taxes from MMJ resulting from changes in Japan tax laws and rates; and |
• | Non-cash taxes resulting from utilization of, and other changes in, deferred tax assets of Inotera, an equity method investment of the company. |