FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended November 28, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 1-10658
Micron Technology, Inc.
State or other jurisdiction of incorporation or organization: Delaware
Internal Revenue Service -- Employer Identification No. 75-1618004
8000 S. Federal Way, Boise, Idaho 83706-9632
(208) 368-4000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X No The
number of outstanding shares of the registrant's Common Stock as of
December 18, 1996 was 209,537,615.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
MICRON TECHNOLOGY, INC.
Consolidated Balance Sheets
(Dollars in millions, except for par value data)
November 28, August 29,
As of 1996 1996
(Unaudited)
ASSETS
Cash and equivalents $ 222.3 $ 276.1
Liquid investments 5.5 10.7
Receivables 315.3 347.4
Inventories 304.1 251.4
Prepaid expenses 14.1 13.4
Deferred income taxes 48.8 65.0
Total current assets 910.1 964.0
Product and process technology, net 42.6 43.2
Property, plant and equipment, net 2,740.1 2,708.1
Other assets 27.9 36.2
Total assets $ 3,720.7 $ 3,751.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 427.0 $ 423.7
Short-term debt -- 90.0
Deferred income 10.1 7.8
Equipment purchase contracts 63.5 67.8
Current portion of long-term debt 103.8 75.2
Total current liabilities 604.4 664.5
Long-term debt 305.6 314.6
Deferred income taxes 163.4 157.4
Non-current product and process technology 43.2 43.5
Other liabilities 18.6 15.7
Total liabilities 1,135.2 1,195.7
Minority interests 57.3 53.8
Commitments and contingencies
Common stock, $0.10 par value, authorized 1.0 billion shares, issued and
outstanding 209.3 million and 208.8 million
shares, respectively 20.9 20.9
Additional capital 440.2 434.7
Retained earnings 2,067.1 2,046.4
Total shareholders' equity 2,528.2 2,502.0
Total liabilities and shareholders' equity $ 3,720.7 $ 3,751.5
See accompanying notes to consolidated financial statements.
MICRON TECHNOLOGY, INC.
Consolidated Statements of Operations
(Amounts in millions, except for per share data)
(Unaudited)
November 28, November 30,
For the quarter ended 1996 1995
Net sales $ 728.1 $ 1,185.8
Costs and expenses:
Cost of goods sold 572.9 538.1
Selling, general and administrative 66.6 72.7
Research and development 47.2 46.6
Total costs and expenses 686.7 657.4
Operating income 41.4 528.4
Interest expense (income), net 2.1 (8.4)
Income before income taxes and minority interests 39.3 536.8
Income tax provision 15.6 204.6
Minority interests 3.1 3.7
Net income $ 20.6 $ 328.5
Earnings per share:
Primary $0.10 $1.51
Fully diluted 0.10 1.51
Number of shares used in per share calculations:
Primary 214.0 217.2
Fully diluted 214.5 217.2
Cash dividend declared per share -- $0.05
See accompanying notes to consolidated financial statements.
MICRON TECHNOLOGY, INC.
Consolidated Statements of Cash Flows
(Dollars in millions)
(Unaudited)
November 28, November 30,
For the quarter ended 1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 20.6 $ 328.5
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 110.3 78.4
Decrease (increase) in receivables 32.0 (121.2)
Increase in inventories (52.7) (61.4)
Increase in accounts payable and accrued expenses 3.4 304.6
Increase in deferred income taxes 22.1 11.4
Gain on sale of investment (10.1) --
Other 22.3 (4.9)
Net cash provided by operating activities 147.9 535.4
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment (84.6) (426.7)
Purchase of available-for-sale and held-to-maturity securities (2.1) (184.5)
Proceeds from sales and maturities of securities 19.4 179.1
Proceeds from sale of equipment 1.8 .5
Other (2.1) (4.4)
Net cash used for investing activities (67.6) (436.0)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 37.6 --
Net repayments on borrowings on lines of credit (90.0) --
Payments on equipment purchase contracts (66.8) (55.1)
Repayments of long-term debt (18.3) (6.6)
Proceeds from issuance of common stock 4.2 6.6
Other (.8) .4
Net cash used for financing activities (134.1) (54.7)
Net increase (decrease) in cash and equivalents (53.8) 44.7
Cash and equivalents at beginning of period 276.1 128.1
Cash and equivalents at end of period $ 222.3 $ 172.8
SUPPLEMENTAL DISCLOSURES
Income taxes refunded (paid), net $ 38.4 $ (44.1)
Interest paid (7.9) (2.3)
Noncash investing and financing activities:
Equipment acquisitions on contracts payable and capital leases 62.5 90.8
See accompanying notes to consolidated financial statements.
Notes to Consolidated Financial Statements
(All tabular dollar amounts are stated in millions)
1. Unaudited Interim Financial Statements
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting solely of normal
recurring adjustments) necessary to present fairly the consolidated financial
position of Micron Technology, Inc., and subsidiaries (the "Company"), and their
consolidated results of operations and cash flows.
This report on Form 10-Q for the quarter ended November 28, 1996, should be
read in conjunction with the Company's Annual Report to Shareholders and/or Form
10-K for the year ended August 29, 1996.
2. Receivables November 28, August 29,
1996 1996
Trade receivables $ 296.0 $ 288.2
Income taxes receivable 22.8 69.1
Other 17.8 17.6
Allowance for returns and discounts (13.6) (18.5)
Allowance for doubtful accounts (7.7) (9.0)
$ 315.3 $ 347.4
3. Inventories November 28, August 29,
1996 1996
Finished goods $ 42.5 $ 54.3
Work in progress 128.1 112.8
Raw materials and supplies 133.5 84.3
$ 304.1 $ 251.4
4. Product and process technology, net November 28, August 29,
1996 1996
Product and process technology, at cost $ 169.7 $ 167.5