| Contacts: | Kipp A. Bedard | Daniel Francisco |
| Investor Relations | Media Relations | |
| kbedard@micron.com | dfrancisco@micron.com | |
| (208) 368-4465 | (208) 368-5584 |
| 2nd Qtr. | 1st Qtr. | 2nd Qtr. | Six Months Ended | |||||||||||||||||
| Mar. 4, | Dec. 3, | Mar. 5, | Mar. 4, | Mar. 5 | ||||||||||||||||
2010 | 2009 | 2009 | 2010 | 2009 | ||||||||||||||||
| Net sales | $ | 1,961 | $ | 1,740 | $ | 993 | $ | 3,701 | $ | 2,395 | ||||||||||
| Cost of goods sold (1) | 1,319 | 1,297 | 1,260 | 2,616 | 3,111 | |||||||||||||||
Gross margin | 642 | 443 | (267 | ) | 1,085 | (716 | ) | |||||||||||||
| Selling, general and administrative | 100 | 97 | 90 | 197 | 192 | |||||||||||||||
| Research and development | 148 | 137 | 168 | 285 | 346 | |||||||||||||||
| Restructure (2) | (1 | ) | (1 | ) | 105 | (2 | ) | 39 | ||||||||||||
| Other operating (income) expense (3) | (20 | ) | 9 | 79 | (11 | ) | 88 | |||||||||||||
Operating income (loss) | 415 | 201 | (709 | ) | 616 | (1,381 | ) | |||||||||||||
| Interest income (expense), net | (44 | ) | (45 | ) | (43 | ) | (89 | ) | (74 | ) | ||||||||||
| Other non-operating income (expense) (4) | (1 | ) | 56 | (1 | ) | 55 | (11 | ) | ||||||||||||
| Income tax (provision) benefit (5) | (4 | ) | 7 | (5 | ) | 3 | (18 | ) | ||||||||||||
| Equity in net income (losses) of equity method investees | 13 | (17 | ) | (56 | ) | (4 | ) | (61 | ) | |||||||||||
| Net (income) loss attributable to noncontrolling interests | (14 | ) | 2 | 51 | (12 | ) | 64 | |||||||||||||
Net income (loss) attributable to Micron | $ | 365 | $ | 204 | $ | (763 | ) | $ | 569 | $ | (1,481 | ) | ||||||||
| Earnings (loss) per share: | ||||||||||||||||||||
Basic | $ | 0.43 | $ | 0.24 | $ | (0.99 | ) | $ | 0.67 | $ | (1.91 | ) | ||||||||
Diluted | 0.39 | 0.23 | (0.99 | ) | 0.61 | (1.91 | ) | |||||||||||||
| Number of shares used in per share calculations: | ||||||||||||||||||||
Basic | 847.6 | 846.3 | 773.9 | 847.0 | 773.6 | |||||||||||||||
Diluted | 1,005.3 | 1,000.7 | 773.9 | 1,003.1 | 773.6 | |||||||||||||||
| As of | ||||||||||||
| Mar. 4, | Dec. 3, | Sep. 3, | ||||||||||
2010 | 2009 | 2009 | ||||||||||
| Cash and short-term investments | $ | 1,870 | $ | 1,565 | $ | 1,485 | ||||||
| Receivables | 1,072 | 1,091 | 798 | |||||||||
| Inventories (1) | 1,075 | 1,037 | 987 | |||||||||
| Total current assets | 4,089 | 3,769 | 3,344 | |||||||||
| Property, plant and equipment | 6,525 | 6,876 | 7,089 | |||||||||
| Total assets | 11,952 | 11,726 | 11,459 | |||||||||
| Accounts payable and accrued expenses | 1,040 | 1,059 | 1,037 | |||||||||
| Current portion of long-term debt | 725 | 618 | 424 | |||||||||
| Total current liabilities | 2,247 | 2,242 | 1,892 | |||||||||
| Long-term debt (6) | 1,994 | 2,143 | 2,379 | |||||||||
| Total Micron shareholders’ equity | 5,602 | 5,195 | 4,953 | |||||||||
| Noncontrolling interests in subsidiaries (7) | 1,816 | 1,896 | 1,986 | |||||||||
| Total equity | 7,418 | 7,091 | 6,939 | |||||||||
| Six Months Ended | ||||||||
| Mar. 4, | Mar. 5, | |||||||
2010 | 2009 | |||||||
| Net cash provided by operating activities | $ | 1,130 | $ | 698 | ||||
| Net cash used for investing activities | (263 | ) | (618 | ) | ||||
| Net cash used for financing activities | (482 | ) | (391 | ) | ||||
| Depreciation and amortization | 977 | 1,157 | ||||||
| Expenditures for property, plant and equipment | (155 | ) | (375 | ) | ||||
| Payments on equipment purchase contracts | (136 | ) | (98 | ) | ||||
| Net distributions to noncontrolling interests | (172 | ) | (444 | ) | ||||
| Noncash equipment acquisitions on contracts payable and capital leases | 232 | 175 | ||||||
| (1) | The company’s results of operations for second quarter and first six months of fiscal 2009 include charges of $234 million and $603 million to write down the carrying value of work in process and finished goods inventories of memory products (both DRAM and NAND Flash) to their estimated market values. |
| (2) | In the second quarter of fiscal 2009, in response to a sustained severe downturn in the semiconductor memory industry and global economic conditions, the company announced that it would phase out all remaining 200mm wafer manufacturing operations at its Boise, Idaho facility. In the first quarter of fiscal 2009, the company announced a restructuring of its memory operations. As part of the restructure announced in the first quarter, IM Flash Technologies (“IMFT”), a joint venture between the company and Intel Corporation, terminated its agreement with the company to supply NAND Flash memory from the company’s Boise facility, reducing IMFT’s NAND Flash production by approximately 35,000 200mm wafers per month. As a result of these actions, the company recorded charges of $105 million and $39 million in the second quarter and f irst six month of fiscal 2009, respectively. Charges in other periods presented were de minimus. |
| (3) | Other operating income in the second quarter of fiscal 2010 includes $11 million of receipts from the U.S. government in connection with anti-dumping tariffs. Other operating expense in the first quarter of fiscal 2010 includes losses of $21 million from changes in currency exchange rates. Other operating expense in the second quarter and first six months of fiscal 2009 includes losses of $29 million and $43 million, respectively, on disposals of semiconductor equipment. In the second quarter of fiscal 2009, the company determined that the goodwill associated with its Imaging segment was impaired and wrote off all of the $58 million of goodwill associated with the segment as of March 5, 2009. |
| (4) | Other non-operating income in the first quarter of fiscal 2010 includes a gain of $56 million recognized in connection with the August 2009 issuance of common shares in a public offering by Inotera Memories, Inc. (“Inotera”) – an investment accounted for by company under equity method – at a price equal to $16.02 New Taiwan dollars per common share (approximately $0.49 U.S. dollars per share at the time of issuance). As a result of the issuance, the company’s interest in Inotera decreased from 35.5% to 29.8%. |
| (5) | Income taxes primarily reflect taxes on the company’s non-U.S. operations and U.S. alternative minimum tax. The company has a valuation allowance for its net deferred tax asset associated with its U.S. operations. Taxes attributable to U.S. operations in fiscal 2010 and 2009 were substantially offset by changes in the valuation allowance. |
| (6) | In the first quarter of fiscal 2010, the company adopted the FASB’s new accounting standard for convertible debt instruments that may be settled in cash upon conversion. The new standard was applicable to the company’s $1.3 billion 1.875% convertible senior notes issued in May, 2007 and requires the liability and equity components of such instrument be accounted for separately in a manner such that interest cost will be recognized at a nonconvertible debt borrowing rate in periods subsequent to the issuance of the instrument. Amounts prior to fiscal 2010 have been recast for this adoption. In connection therewith, as of the issuance date of the $1.3 billion convertible debt, there was a decrease in the carrying value of the debt of $402 million, an increase in the carrying value of additional capital of $394 million and a decrease in the carrying value of deferred debt issuance costs (included in other noncurrent assets) of $8 million. In addition, through fiscal 2009, there was a decrease in retained earnings of $94 million and accretion of the carrying value of long-term debt of $107 million as a result of the new standard. |
| (7) | In the first quarter of fiscal 2010, the company adopted the FASB’s new accounting standard for noncontrolling interests. The new standard requires noncontrolling interests be reported as a separate component of equity and that net income or loss attributable to the parent and noncontrolling interests be separately identified in the statement of operations. Amounts prior to fiscal 2010 have been recast for this adoption. |
