For the first quarter of 2024, we recorded tax expense based on actual first quarter results, as small changes in our projected pre-tax income cause significant changes in the estimated annual effective tax rate. With our improved fiscal 2024 outlook, we can now estimate a more reliable annual effective tax rate and have reverted to a global annual effective tax rate method. The second fiscal quarter tax benefit arises from applying this estimated annual effective tax rate to our year-to-date results.
| MICRON TECHNOLOGY, INC. | |||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||
| (In millions, except per share amounts) | |||||||||
| 2nd Qtr. | 1st Qtr. | 2nd Qtr. | |||||||
|
February 29,
2024 |
November 30,
2023 |
March 2,
2023 | |||||||
| GAAP gross margin | $ | 1,079 | $ | (35 | ) | $ | (1,206 | ) | |
| Stock-based compensation | 80 | 67 | 41 | ||||||
| Other | 4 | 5 | 4 | ||||||
| Non-GAAP gross margin | $ | 1,163 | $ | 37 | $ | (1,161 | ) | ||
| GAAP operating expenses | $ | 888 | $ | 1,093 | $ | 1,097 | |||
| Stock-based compensation | (129 | ) | (115 | ) | (95 | ) | |||
| Restructure and asset impairments | — | — | (86 | ) | |||||
| Patent cross-license agreement gain | 200 | — | — | ||||||
| Other | — | 14 | — | ||||||
| Non-GAAP operating expenses | $ | 959 | $ | 992 | $ | 916 | |||
| GAAP operating income (loss) | $ | 191 | $ | (1,128 | ) | $ | (2,303 | ) | |
| Stock-based compensation | 209 | 182 | 136 | ||||||
| Restructure and asset impairments | — | — | 86 | ||||||
| Patent cross-license agreement gain | (200 | ) | — | — | |||||
| Other | 4 | (9 | ) | 4 | |||||
| Non-GAAP operating income (loss) | $ | 204 | $ | (955 | ) | $ | (2,077 | ) | |
| GAAP net income (loss) | $ | 793 | $ | (1,234 | ) | $ | (2,312 | ) | |
| Stock-based compensation | 209 | 182 | 136 | ||||||
| Restructure and asset impairments | — | — | 86 | ||||||
| Patent cross-license agreement gain | (200 | ) | — | — | |||||
| Other | 2 | (10 | ) | 8 | |||||
| Estimated tax effects of above and other tax adjustments (1) | (328 | ) | 14 | 1 | |||||
| Non-GAAP net income (loss) | $ | 476 | $ | (1,048 | ) | $ | (2,081 | ) | |
| GAAP weighted-average common shares outstanding - Diluted | 1,114 | 1,100 | 1,091 | ||||||
| Adjustment for stock-based compensation | 20 | — | — | ||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,134 | 1,100 | 1,091 | ||||||
| GAAP diluted earnings (loss) per share | $ | 0.71 | $ | (1.12 | ) | $ | (2.12 | ) | |
| Effects of the above adjustments | (0.29 | ) | 0.17 | 0.21 | |||||
| Non-GAAP diluted earnings (loss) per share | $ | 0.42 | $ | (0.95 | ) | $ | (1.91 | ) | |
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