NOTES
(Unaudited)
Inventories
In the second quarter of 2023, we recorded a charge of $1.43 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values.
Debt Activity
Term Loan Agreement: On November 3, 2022, we entered into a Term Loan Agreement consisting of three tranches and borrowed $2.60 billion in aggregate principal amount, including $927 million due November 3, 2025, $746 million due November 3, 2026, and $927 million due November 3, 2027.
On January 5, 2023, we amended the Term Loan Agreement and borrowed an additional $600 million in aggregate principal amount, including $125 million due November 3, 2025, $250 million due November 3, 2026, and $225 million due November 3, 2027. Borrowings under the Term Loan Agreement will generally bear interest at adjusted term SOFR plus an applicable interest rate margin ranging from 1.00% to 2.00%, varying by tranche and depending on our corporate credit ratings.
Senior Unsecured Notes: On October 31, 2022, we issued $750 million principal amount of 6.750% senior unsecured notes due November 1, 2029 in a public offering and received proceeds of $744 million.
On February 9, 2023, we issued an additional $500 million principal amount of 6.750% senior unsecured notes due November 1, 2029 and received proceeds of $520 million. Additionally, we issued $750 million principal amount of 5.875% senior unsecured notes due February 9, 2033 and received proceeds of $745 million.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)
| 2nd Qtr. | 1st Qtr. | 2nd Qtr. | |||||||
|
March 2,
2023 |
December 1,
2022 |
March 3,
2022 | |||||||
| GAAP gross margin | $ | (1,206 | ) | $ | 893 | $ | 3,676 | ||
| Stock-based compensation | 41 | 36 | 44 | ||||||
| Other | 4 | 5 | 4 | ||||||
| Non-GAAP gross margin | $ | (1,161 | ) | $ | 934 | $ | 3,724 | ||
| GAAP operating expenses | $ | 1,097 | $ | 1,102 | $ | 1,130 | |||
| Stock-based compensation | (95 | ) | (90 | ) | (75 | ) | |||
| Restructure and asset impairments | (86 | ) | (13 | ) | (5 | ) | |||
| Other | — | — | (76 | ) | |||||
| Non-GAAP operating expenses | $ | 916 | $ | 999 | $ | 974 | |||
| GAAP operating income (loss) | $ | (2,303 | ) | $ | (209 | ) | $ | 2,546 | |
| Stock-based compensation | 136 | 126 | 119 | ||||||
| Restructure and asset impairments | 86 | 13 | 5 | ||||||
| Other | 4 | 5 | 80 | ||||||
| Non-GAAP operating income (loss) | $ | (2,077 | ) | $ | (65 | ) | $ | 2,750 | |
| GAAP net income (loss) | $ | (2,312 | ) | $ | (195 | ) | $ | 2,263 | |
| Stock-based compensation | 136 | 126 | 119 | ||||||
| Restructure and asset impairments | 86 | 13 | 5 | ||||||
| Amortization of debt discount and other costs | 4 | 5 | 8 | ||||||
| Other | 4 | 5 | 80 | ||||||
| Estimated tax effects of above and other tax adjustments | 1 | 7 | (31 | ) | |||||
| Non-GAAP net income (loss) | $ | (2,081 | ) | $ | (39 | ) | $ | 2,444 | |
| GAAP weighted-average common shares outstanding - Diluted | 1,091 | 1,090 | 1,130 | ||||||
| Adjustment for stock-based compensation | — | — | 13 | ||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,091 | 1,090 | 1,143 | ||||||
| GAAP diluted earnings (loss) per share | $ | (2.12 | ) | $ | (0.18 | ) | $ | 2.00 | |
| Effects of the above adjustments | 0.21 | 0.14 | 0.14 | ||||||
| Non-GAAP diluted earnings (loss) per share | $ | (1.91 | ) | $ | (0.04 | ) | $ | 2.14 | |
