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) | (IRS Employer Identification No.) |
8000 South Federal Way | ||
Boise, Idaho 83716-9632 | ||
(Address of principal executive offices and Zip Code) |
(208) 368-4000 | ||
(Registrant’s telephone number, including area code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.10 per share | MU | Nasdaq Global Select Market |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits. |
Exhibit No. | Description | ||||||||||
99.1 | |||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MICRON TECHNOLOGY, INC. | |||||||||||
Date: | September 29, 2022 | By: | /s/ Mark Murphy | ||||||||
Name: | Mark Murphy | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Contacts: | Farhan Ahmad | Erica Rodriguez Pompen | ||||||
Investor Relations | Media Relations | |||||||
farhanahmad@micron.com | epompen@micron.com | |||||||
(408) 834-1927 | (408) 834-1873 |
Quarterly Financial Results | |||||||||||||||||||||||
(in millions, except per share amounts) | GAAP(1) |
Non-GAAP(2) |
|||||||||||||||||||||
FQ4-22 | FQ3-22 | FQ4-21 | FQ4-22 | FQ3-22 | FQ4-21 | ||||||||||||||||||
Revenue | $ | 6,643 | $ | 8,642 | $ | 8,274 | $ | 6,643 | $ | 8,642 | $ | 8,274 | |||||||||||
Gross margin | 2,622 | 4,035 | 3,912 | 2,676 | 4,097 | 3,964 | |||||||||||||||||
percent of revenue | 39.5 | % | 46.7 | % | 47.3 | % | 40.3 | % | 47.4 | % | 47.9 | % | |||||||||||
Operating expenses | 1,101 | 1,031 | 957 | 1,014 | 953 | 891 | |||||||||||||||||
Operating income | 1,521 | 3,004 | 2,955 | 1,662 | 3,144 | 3,073 | |||||||||||||||||
percent of revenue | 22.9 | % | 34.8 | % | 35.7 | % | 25.0 | % | 36.4 | % | 37.1 | % | |||||||||||
Net income | 1,492 | 2,626 | 2,720 | 1,621 | 2,939 | 2,778 | |||||||||||||||||
Diluted earnings per share | 1.35 | 2.34 | 2.39 | 1.45 | 2.59 | 2.42 |
Annual Financial Results | |||||||||||||||||
(in millions, except per share amounts) | GAAP(1) |
Non-GAAP(2) |
|||||||||||||||
FY 22 | FY 21 | FY 22 | FY 21 | ||||||||||||||
Revenue | $ | 30,758 | $ | 27,705 | $ | 30,758 | $ | 27,705 | |||||||||
Gross margin | 13,898 | 10,423 | 14,113 | 10,987 | |||||||||||||
percent of revenue | 45.2 | % | 37.6 | % | 45.9 | % | 39.7 | % | |||||||||
Operating expenses | 4,196 | 4,140 | 3,832 | 3,320 | |||||||||||||
Operating income | 9,702 | 6,283 | 10,281 | 7,667 | |||||||||||||
percent of revenue | 31.5 | % | 22.7 | % | 33.4 | % | 27.7 | % | |||||||||
Net income | 8,687 | 5,861 | 9,475 | 6,976 | |||||||||||||
Diluted earnings per share | 7.75 | 5.14 | 8.35 | 6.06 |
FQ1-23 | GAAP(1) Outlook |
Non-GAAP(2) Outlook |
||||||
Revenue |
$4.25 billion ± $250 million | $4.25 billion ± $250 million | ||||||
Gross margin |
25.0% ± 2.0% | 26.0% ± 2.0% | ||||||
Operating expenses |
$1.09 billion ± $25 million | $1.00 billion ± $25 million | ||||||
Diluted earnings (loss) per share |
($0.09) ± $0.10 | $0.04 ± $0.10 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | ||||||||||||||
September 1, 2022 |
June 2, 2022 |
September 2, 2021 |
September 1, 2022 |
September 2, 2021 |
|||||||||||||
Revenue | $ | 6,643 | $ | 8,642 | $ | 8,274 | $ | 30,758 | $ | 27,705 | |||||||
Cost of goods sold | 4,021 | 4,607 | 4,362 | 16,860 | 17,282 | ||||||||||||
Gross margin | 2,622 | 4,035 | 3,912 | 13,898 | 10,423 | ||||||||||||
Research and development | 839 | 773 | 705 | 3,116 | 2,663 | ||||||||||||
Selling, general, and administrative | 280 | 264 | 236 | 1,066 | 894 | ||||||||||||
Restructure and asset impairments | 5 | — | 22 | 48 | 488 | ||||||||||||
Other operating (income) expense, net | (23) | (6) | (6) | (34) | 95 | ||||||||||||
Operating income | 1,521 | 3,004 | 2,955 | 9,702 | 6,283 | ||||||||||||
Interest income | 54 | 20 | 9 | 96 | 37 | ||||||||||||
Interest expense | (45) | (44) | (47) | (189) | (183) | ||||||||||||
Other non-operating income (expense), net | 23 | 8 | 19 | (38) | 81 | ||||||||||||
1,553 | 2,988 | 2,936 | 9,571 | 6,218 | |||||||||||||
Income tax (provision) benefit | (56) | (358) | (230) | (888) | (394) | ||||||||||||
Equity in net income (loss) of equity method investees | (5) | (4) | 14 | 4 | 37 | ||||||||||||
Net income | $ | 1,492 | $ | 2,626 | $ | 2,720 | $ | 8,687 | $ | 5,861 | |||||||
Earnings per share | |||||||||||||||||
Basic | $ | 1.36 | $ | 2.36 | $ | 2.42 | $ | 7.81 | $ | 5.23 | |||||||
Diluted | 1.35 | 2.34 | 2.39 | 7.75 | 5.14 | ||||||||||||
Number of shares used in per share calculations | |||||||||||||||||
Basic | 1,097 | 1,112 | 1,123 | 1,112 | 1,120 | ||||||||||||
Diluted | 1,106 | 1,121 | 1,138 | 1,122 | 1,141 |
As of | September 1, 2022 |
June 2, 2022 |
September 2, 2021 |
||||||||
Assets | |||||||||||
Cash and equivalents | $ | 8,262 | $ | 9,157 | $ | 7,763 | |||||
Short-term investments | 1,069 | 1,070 | 870 | ||||||||
Receivables | 5,130 | 6,229 | 5,311 | ||||||||
Inventories | 6,663 | 5,629 | 4,487 | ||||||||
Assets held for sale | 13 | 15 | 974 | ||||||||
Other current assets | 644 | 608 | 502 | ||||||||
Total current assets | 21,781 | 22,708 | 19,907 | ||||||||
Long-term marketable investments | 1,647 | 1,646 | 1,765 | ||||||||
Property, plant, and equipment | 38,549 | 36,665 | 33,213 | ||||||||
Operating lease right-of-use assets | 678 | 690 | 551 | ||||||||
Intangible assets | 421 | 415 | 349 | ||||||||
Deferred tax assets | 702 | 682 | 782 | ||||||||
Goodwill | 1,228 | 1,228 | 1,228 | ||||||||
Other noncurrent assets | 1,277 | 1,262 | 1,054 | ||||||||
Total assets | $ | 66,283 | $ | 65,296 | $ | 58,849 | |||||
Liabilities and equity | |||||||||||
Accounts payable and accrued expenses | $ | 6,090 | $ | 5,788 | $ | 5,325 | |||||
Current debt | 103 | 107 | 155 | ||||||||
Other current liabilities | 1,346 | 1,114 | 944 | ||||||||
Total current liabilities | 7,539 | 7,009 | 6,424 | ||||||||
Long-term debt | 6,803 | 6,856 | 6,621 | ||||||||
Noncurrent operating lease liabilities | 610 | 629 | 504 | ||||||||
Noncurrent unearned government incentives | 589 | 663 | 808 | ||||||||
Other noncurrent liabilities | 835 | 858 | 559 | ||||||||
Total liabilities | 16,376 | 16,015 | 14,916 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | |||||||||||
Common stock | 123 | 122 | 122 | ||||||||
Additional capital | 10,197 | 9,950 | 9,453 | ||||||||
Retained earnings | 47,274 | 45,916 | 39,051 | ||||||||
Treasury stock | (7,127) | (6,343) | (4,695) | ||||||||
Accumulated other comprehensive income (loss) | (560) | (364) | 2 | ||||||||
Total equity | 49,907 | 49,281 | 43,933 | ||||||||
Total liabilities and equity | $ | 66,283 | $ | 65,296 | $ | 58,849 | |||||
For the year ended | September 1, 2022 |
September 2, 2021 |
||||||
Cash flows from operating activities | ||||||||
Net income | $ | 8,687 | $ | 5,861 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation expense and amortization of intangible assets | 7,116 | 6,214 | ||||||
Stock-based compensation | 514 | 378 | ||||||
(Gain) loss on debt repurchases and conversions | 83 | 1 | ||||||
Restructure and asset impairment | 44 | 454 | ||||||
Change in operating assets and liabilities: |
||||||||
Receivables | 190 | (1,446) | ||||||
Inventories | (2,179) | 866 | ||||||
Accounts payable and accrued expenses | 744 | 210 | ||||||
Other | (18) | (70) | ||||||
Net cash provided by operating activities | 15,181 | 12,468 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant, and equipment | (12,067) | (10,030) | ||||||
Purchases of available-for-sale securities | (1,770) | (3,163) | ||||||
Proceeds from maturities of available-for-sale securities | 1,321 | 1,250 | ||||||
Proceeds from sale of Lehi, Utah fab | 888 | — | ||||||
Proceeds from sales of available-for-sale securities | 294 | 856 | ||||||
Proceeds from government incentives | 115 | 495 | ||||||
Other | (366) | 3 | ||||||
Net cash provided by (used for) investing activities | (11,585) | (10,589) | ||||||
Cash flows from financing activities | ||||||||
Repurchases of common stock - repurchase program | (2,432) | (1,200) | ||||||
Repayments of debt | (2,032) | (1,520) | ||||||
Payments of dividends to shareholders | (461) | — | ||||||
Payments on equipment purchase contracts | (141) | (295) | ||||||
Repurchases of common stock - withholdings on employee equity awards | (125) | (94) | ||||||
Proceeds from issuance of debt | 2,000 | 1,188 | ||||||
Other | 211 | 140 | ||||||
Net cash provided by (used for) financing activities | (2,980) | (1,781) | ||||||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash |
(106) | 41 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 510 | 139 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 7,829 | 7,690 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 8,339 | $ | 7,829 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | ||||||||||||||
September 1, 2022 |
June 2, 2022 |
September 2, 2021 |
September 1, 2022 |
September 2, 2021 |
|||||||||||||
GAAP gross margin | $ | 2,622 | $ | 4,035 | $ | 3,912 | $ | 13,898 | $ | 10,423 | |||||||
Stock-based compensation | 49 | 57 | 43 | 193 | 186 | ||||||||||||
Inventory accounting policy change to FIFO | — | — | — | — | 133 | ||||||||||||
Change in inventory cost absorption | — | — | — | — | 160 | ||||||||||||
3D XPoint inventory write-down | — | — | — | — | 49 | ||||||||||||
Other | 5 | 5 | 9 | 22 | 36 | ||||||||||||
Non-GAAP gross margin | $ | 2,676 | $ | 4,097 | $ | 3,964 | $ | 14,113 | $ | 10,987 | |||||||
GAAP operating expenses | $ | 1,101 | $ | 1,031 | $ | 957 | $ | 4,196 | $ | 4,140 | |||||||
Stock-based compensation | (82) | (78) | (50) | (308) | (209) | ||||||||||||
Restructure and asset impairments | (5) | — | (22) | (48) | (488) | ||||||||||||
Patent license charges | — | — | — | — | (128) | ||||||||||||
Other | — | — | 6 | (8) | 5 | ||||||||||||
Non-GAAP operating expenses | $ | 1,014 | $ | 953 | $ | 891 | $ | 3,832 | $ | 3,320 | |||||||
GAAP operating income | $ | 1,521 | $ | 3,004 | $ | 2,955 | $ | 9,702 | $ | 6,283 | |||||||
Stock-based compensation | 131 | 135 | 93 | 501 | 395 | ||||||||||||
Inventory accounting policy change to FIFO | — | — | — | — | 133 | ||||||||||||
Change in inventory cost absorption | — | — | — | — | 160 | ||||||||||||
3D XPoint inventory write-down | — | — | — | — | 49 | ||||||||||||
Restructure and asset impairments | 5 | — | 22 | 48 | 488 | ||||||||||||
Patent license charges | — | — | — | — | 128 | ||||||||||||
Other | 5 | 5 | 3 | 30 | 31 | ||||||||||||
Non-GAAP operating income | $ | 1,662 | $ | 3,144 | $ | 3,073 | $ | 10,281 | $ | 7,667 | |||||||
GAAP net income |
$ | 1,492 | $ | 2,626 | $ | 2,720 | $ | 8,687 | $ | 5,861 | |||||||
Stock-based compensation | 131 | 135 | 93 | 501 | 395 | ||||||||||||
Inventory accounting policy change to FIFO | — | — | — | — | 133 | ||||||||||||
Change in inventory cost absorption | — | — | — | — | 160 | ||||||||||||
3D XPoint inventory write-down | — | — | — | — | 49 | ||||||||||||
Restructure and asset impairments | 5 | — | 22 | 48 | 488 | ||||||||||||
Patent license charges | — | — | — | — | 128 | ||||||||||||
Amortization of debt discount | 6 | 8 | 8 | 31 | 30 | ||||||||||||
(Gain) loss on debt repurchases and conversions | — | — | — | 83 | 1 | ||||||||||||
Other | 5 | 5 | 3 | 30 | 31 | ||||||||||||
Impact of Idaho income tax reform | — | 189 | — | 189 | — | ||||||||||||
Estimated tax effects of above and other tax adjustments |
(18) | (24) | (68) | (94) | (300) | ||||||||||||
Non-GAAP net income | $ | 1,621 | $ | 2,939 | $ | 2,778 | $ | 9,475 | $ | 6,976 | |||||||
GAAP weighted-average common shares outstanding - Diluted |
1,106 | 1,121 | 1,138 | 1,122 | 1,141 | ||||||||||||
Adjustment for stock-based compensation |
15 | 15 | 9 | 13 | 10 | ||||||||||||
Non-GAAP weighted-average common shares outstanding - Diluted |
1,121 | 1,136 | 1,147 | 1,135 | 1,151 | ||||||||||||
GAAP diluted earnings per share |
$ | 1.35 | $ | 2.34 | $ | 2.39 | $ | 7.75 | $ | 5.14 | |||||||
Effects of the above adjustments |
0.10 | 0.25 | 0.03 | 0.60 | 0.92 | ||||||||||||
Non-GAAP diluted earnings per share |
$ | 1.45 | $ | 2.59 | $ | 2.42 | $ | 8.35 | $ | 6.06 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | ||||||||||||||
September 1, 2022 |
June 2, 2022 |
September 2, 2021 |
September 1, 2022 |
September 2, 2021 |
|||||||||||||
GAAP net cash provided by operating activities |
$ | 3,777 | $ | 3,838 | $ | 3,884 | $ | 15,181 | $ | 12,468 | |||||||
Expenditures for property, plant, and equipment |
(3,613) | (2,578) | (2,015) | (12,067) | (10,030) | ||||||||||||
Proceeds from sales of property, plant, and equipment | 30 | 39 | 4 | 117 | 108 | ||||||||||||
Payments on equipment purchase contracts |
(9) | (27) | (156) | (141) | (295) | ||||||||||||
Amounts funded by partners |
11 | 38 | 160 | 115 | 502 | ||||||||||||
Investments in capital expenditures, net | (3,581) | (2,528) | (2,007) | (11,976) | (9,715) | ||||||||||||
Adjusted free cash flow |
$ | 196 | $ | 1,310 | $ | 1,877 | $ | 3,205 | $ | 2,753 |
As of | September 1, 2022 |
June 2, 2022 |
September 2, 2021 |
||||||||
Cash and short-term investments |
$ | 9,331 | $ | 10,227 | $ | 8,633 | |||||
Current and noncurrent restricted cash |
77 | 104 | 66 | ||||||||
Long-term marketable investments |
1,647 | 1,646 | 1,765 | ||||||||
Current and long-term debt |
(6,906) | (6,963) | (6,776) | ||||||||
Net cash |
$ | 4,149 | $ | 5,014 | $ | 3,688 |
FQ1-23 | GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||||
Revenue |
$4.25 billion ± $250 million | — | $4.25 billion ± $250 million | ||||||||||||||||||||
Gross margin |
25.0% ± 2.0% | 1% | A | 26.0% ± 2.0% | |||||||||||||||||||
Operating expenses |
$1.09 billion ± $25 million | $91 million | B | $1.00 billion ± $25 million | |||||||||||||||||||
Diluted earnings (loss) per share(1) |
($0.09) ± $0.10 | $0.13 | A, B, C | $0.04 ± $0.10 |
Non-GAAP Adjustments
(in millions)
|
|||||||||||||||||||||||
A |
Stock-based compensation – cost of goods sold |
$ | 33 | ||||||||||||||||||||
A |
Other – cost of goods sold |
3 | |||||||||||||||||||||
B |
Stock-based compensation – research and development |
52 | |||||||||||||||||||||
B |
Stock-based compensation – sales, general, and administrative |
39 | |||||||||||||||||||||
C |
Tax effects of the above items and other tax adjustments | 14 | |||||||||||||||||||||
$ | 141 |