2012 Q3 Form 10-Q Financial Statement

#000072312512000084 Filed on July 09, 2012

View on sec.gov

Income Statement

Concept 2012 Q3 2012 Q2 2011 Q2
Revenue $1.963B $2.172B $2.139B
YoY Change -8.27% 1.54% -6.51%
Cost Of Revenue $1.744B $1.938B $1.661B
YoY Change -4.12% 16.68% 15.35%
Gross Profit $219.0M $234.0M $478.0M
YoY Change -31.78% -51.05% -43.63%
Gross Profit Margin 11.16% 10.77% 22.35%
Selling, General & Admin $139.0M $156.0M $151.0M
YoY Change -10.32% 3.31% -20.53%
% of Gross Profit 63.47% 66.67% 31.59%
Research & Development $235.0M $231.0M $211.0M
YoY Change 12.44% 9.48% 48.59%
% of Gross Profit 107.31% 98.72% 44.14%
Depreciation & Amortization $483.0M $502.0M $528.0M
YoY Change -12.97% -4.92% 10.92%
% of Gross Profit 220.55% 214.53% 110.46%
Operating Expenses $374.0M $387.0M $362.0M
YoY Change 3.31% 6.91% 9.04%
Operating Profit -$149.0M -$188.0M $237.0M
YoY Change 192.16% -179.32% -56.11%
Interest Expense -$48.00M $56.00M $28.00M
YoY Change 860.0% 100.0% -36.36%
% of Operating Profit 11.81%
Other Income/Expense, Net $1.000M -$2.000M $10.00M
YoY Change -100.91% -120.0% 900.0%
Pretax Income -$196.0M -$243.0M $225.0M
YoY Change 151.28% -208.0% -76.01%
Income Tax $14.00M -$38.00M $104.0M
% Of Pretax Income 46.22%
Net Earnings -$243.0M -$320.0M $75.00M
YoY Change 80.0% -526.67% -92.01%
Net Earnings / Revenue -12.38% -14.73% 3.51%
Basic Earnings Per Share -$0.24 -$0.32 $0.07
Diluted Earnings Per Share -$0.24 -$0.32 $0.07
COMMON SHARES
Basic Shares Outstanding 1.018B shares 987.3M shares 998.9M shares
Diluted Shares Outstanding 987.3M shares 1.042B shares

Balance Sheet

Concept 2012 Q3 2012 Q2 2011 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.559B $2.325B $2.395B
YoY Change 18.47% -2.92% 3.55%
Cash & Equivalents $2.459B $2.191B $2.395B
Short-Term Investments $100.0M $134.0M $793.0M
Other Short-Term Assets $98.00M $78.00M $87.00M
YoY Change 3.16% -10.34% -9.38%
Inventory $1.812B $1.894B $2.068B
Prepaid Expenses
Receivables $933.0M $973.0M $1.065B
Other Receivables $356.0M $278.0M $356.0M
Total Short-Term Assets $5.758B $5.630B $6.045B
YoY Change -1.27% -6.87% 5.61%
LONG-TERM ASSETS
Property, Plant & Equipment $7.103B $7.158B $7.103B
YoY Change -5.98% 0.77% 7.05%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $389.0M $403.0M $499.0M
YoY Change -19.46% -19.24% -50.59%
Other Assets $286.0M $378.0M $486.0M
YoY Change -31.25% -22.22% -27.14%
Total Long-Term Assets $8.570B $8.686B $8.525B
YoY Change -3.92% 1.89% -1.48%
TOTAL ASSETS
Total Short-Term Assets $5.758B $5.630B $6.045B
Total Long-Term Assets $8.570B $8.686B $8.525B
Total Assets $14.33B $14.32B $14.57B
YoY Change -2.87% -1.74% 1.34%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $818.0M $779.0M $1.238B
YoY Change -31.09% -37.08% 46.68%
Accrued Expenses $290.0M $460.0M $453.0M
YoY Change -37.63% 1.55% 17.97%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $224.0M $262.0M $184.0M
YoY Change 60.0% 42.39% -71.78%
Total Short-Term Liabilities $2.243B $2.177B $2.588B
YoY Change -9.56% -15.88% -0.88%
LONG-TERM LIABILITIES
Long-Term Debt $3.038B $2.936B $1.388B
YoY Change 63.25% 111.53% -19.16%
Other Long-Term Liabilities $630.0M $717.0M $562.0M
YoY Change 12.7% 27.58% -3.44%
Total Long-Term Liabilities $3.668B $3.653B $1.950B
YoY Change 51.57% 87.33% -15.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.243B $2.177B $2.588B
Total Long-Term Liabilities $3.668B $3.653B $1.950B
Total Liabilities $5.911B $5.830B $4.538B
YoY Change 20.63% 28.47% -32.24%
SHAREHOLDERS EQUITY
Retained Earnings -$1.402B -$1.159B -$234.0M
YoY Change 278.92% 395.3%
Common Stock $9.022B $8.890B $8.698B
YoY Change 3.61% 2.21%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $7.700B $7.811B $8.583B
YoY Change
Total Liabilities & Shareholders Equity $14.33B $14.32B $14.57B
YoY Change -2.87% -1.74% 1.34%

Cashflow Statement

Concept 2012 Q3 2012 Q2 2011 Q2
OPERATING ACTIVITIES
Net Income -$243.0M -$320.0M $75.00M
YoY Change 80.0% -526.67% -92.01%
Depreciation, Depletion And Amortization $483.0M $502.0M $528.0M
YoY Change -12.97% -4.92% 10.92%
Cash From Operating Activities $450.0M $686.0M $589.0M
YoY Change 27.12% 16.47% -33.75%
INVESTING ACTIVITIES
Capital Expenditures -$332.0M -$278.0M -$493.0M
YoY Change -61.75% -43.61% 332.46%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$519.0M $518.0M
YoY Change -100.0% -200.19% 227.85%
Cash From Investing Activities -$332.0M -$797.0M $25.00M
YoY Change -59.95% -3288.0% -43.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $250.0M
YoY Change
Cash From Financing Activities 150.0M 208.0M -403.0M
YoY Change -37.5% -151.61% -17.76%
NET CHANGE
Cash From Operating Activities 450.0M 686.0M 589.0M
Cash From Investing Activities -332.0M -797.0M 25.00M
Cash From Financing Activities 150.0M 208.0M -403.0M
Net Change In Cash 268.0M 97.00M 211.0M
YoY Change -214.04% -54.03% -52.37%
FREE CASH FLOW
Cash From Operating Activities $450.0M $686.0M $589.0M
Capital Expenditures -$332.0M -$278.0M -$493.0M
Free Cash Flow $782.0M $964.0M $1.082B
YoY Change -36.01% -10.91% 7.88%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Recently Issued Accounting Standards</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">In June 2011, the FASB issued a new accounting standard on the presentation of comprehensive income. The new standard requires the presentation of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We are required to adopt this standard as of the beginning of 2013. The new standard also required presentation of adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented, which was indefinitely deferred by an update issued by the FASB in December 2011. The adoption of this standard will only impact the presentation of our financial statements.</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have accrued a liability and charged operations for the estimated costs of adjudication or settlement of various asserted and unasserted claims existing as of the balance sheet date, including those described below. We are currently a party to other legal actions arising from the normal course of business, none of which is expected to have a material adverse effect on our business, results of operations or financial condition.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Patent Matters</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As is typical in the semiconductor and other high technology industries, from time to time, others have asserted, and may in the future assert, that our products or manufacturing processes infringe their intellectual property rights.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are engaged in litigation with Rambus, Inc. ("Rambus") relating to certain of Rambus' patents and certain of our claims and defenses. Our lawsuits with Rambus are pending in the U.S. District Court for the District of Delaware, U.S. District Court for the Northern District of California, Germany, France, and Italy. On August&#160;28, 2000, we filed a complaint against Rambus in the U.S. District Court for the District of Delaware seeking declaratory and injunctive relief. The complaint alleges, among other things, various anticompetitive activities and also seeks a declaratory judgment that certain Rambus patents are invalid and/or unenforceable. Rambus subsequently filed an answer and counterclaim in Delaware alleging, among other things, infringement of twelve Rambus patents and seeking monetary damages and injunctive relief. We subsequently added claims and defenses based on Rambus' alleged spoliation of evidence and litigation misconduct. The spoliation and litigation misconduct claims and defenses were heard in a bench trial before Judge Robinson in October 2007. On January 9, 2009, Judge Robinson entered an opinion in our favor holding that Rambus had engaged in spoliation and that the twelve Rambus patents in the suit were unenforceable against us. Rambus subsequently appealed the decision to the U.S. Court of Appeals for the Federal Circuit. On May 13, 2011, the Federal Circuit affirmed Judge Robinson's finding of spoliation, but vacated the dismissal sanction and remanded the case to the Delaware District Court for analysis of the remedy based on the Federal Circuit's decision. On January 13, 2006, Rambus filed a lawsuit against us in the U.S. District Court for the Northern District of California alleging that certain of our DDR2, DDR3, RLDRAM and RLDRAM II products infringe as many as fourteen Rambus patents and seeking monetary damages, treble damages, and injunctive relief. The Northern District of California Court stayed the trial of the patent phase of the Northern District of California case upon appeal of the Delaware spoliation issue to the Federal Circuit.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March&#160;6, 2009, Panavision Imaging, LLC filed suit against us and Aptina Imaging Corporation, then a wholly-owned subsidiary, in the U.S. District Court for the Central District of California. The complaint alleged that certain of our and Aptina's image sensor products infringed four Panavision Imaging U.S. patents and sought injunctive relief, damages, attorneys' fees, and costs. On February&#160;7, 2011, the Court ruled that one of the four patents in suit was invalid for indefiniteness. On March&#160;10, 2011, claims relating to the remaining three patents in suit were dismissed with prejudice. Panavision subsequently filed a motion for reconsideration of the Court's decision regarding invalidity of the first patent, and we filed a motion for summary judgment of non-infringement of such patent. On July 8, 2011, the Court issued an order that rescinded its prior indefiniteness decision, and held that the disputed term does not render the claims in suit indefinite. On February 3, 2012, the Court granted our motion for summary judgment of non-infringement. On March 20, 2012, we executed a settlement agreement with Panavision pursuant to which the parties agreed to a settlement and release of all claims and a dismissal with prejudice of the litigation, which did not have a material effect on our business, results of operations or financial condition.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 1, 2011, HSM Portfolio LLC and Technology Properties Limited LLC filed a patent infringement action in the U.S. District Court for the District of Delaware against us and seventeen other defendants. The complaint alleges that certain of our DRAM and image sensor products infringe two U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 9, 2011, Advanced Data Access LLC filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Tyler) against us and seven other defendants. On November 16, 2011, Advanced Data Access filed an amended complaint. The amended complaint alleges that certain of our DRAM products infringe two U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 14, 2011, Smart Memory Solutions LLC filed a patent infringement action in the U.S. District Court for the District of Delaware against us and Winbond Electronics Corporation of America.&#160; The complaint alleges that certain of our NOR Flash products infringe a single U.S. patent and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On December 5, 2011, the Board of Trustees for the University of Illinois filed a patent infringement action against us in the U.S. District Court for the Central District of Illinois. The complaint alleges that unspecified semiconductor products of ours infringe three U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 26, 2012, Semiconductor Technologies, LLC filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Marshall) against us. The complaint alleges that certain of our DRAM products infringe five U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 28, 2012, Technology Partners Limited LLC (&#8220;TPL&#8221;) filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Tyler) against us. The complaint alleges that certain of our Lexar flash card readers infringe four U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs. On March 26, 2012, TPL filed a parallel complaint with the U.S. International Trade Commission under Section 337 of the Tariff Act of 1930 against us and numerous other companies alleging infringement of the same patents and seeking an exclusion order preventing the importation of certain flash card readers. The District Court action has been stayed pending the outcome of the ITC matter. The ITC matter is scheduled for trial on January 7, 2013. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 17, 2012, Anu IP, LLC (&#8220;Anu&#8221;) filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Marshall) against us. The complaint alleges that certain of our Lexar USB drives infringe one U.S. patent and seeks injunctive relief, damages, attorneys' fees, and costs. On April 18, 2012, Anu filed a parallel complaint with the U.S. International Trade Commission under Section 337 of the Tariff Act of 1930 against us and numerous other companies alleging infringement of the same patent and another related patent and seeking an exclusion order preventing the importation of certain USB drives. The District Court action has been stayed pending the outcome of the ITC matter.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 27, 2012, Semcon Tech, LLC filed a patent infringement action against us in the U.S. District Court for the District of Delaware. The complaint alleges that our use of a Reflexion CMP polishing system purchased from Applied Materials infringes a single U.S. patent and seeks injunctive relief, damages, attorneys' fees, and costs.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Among other things, the above lawsuits pertain to certain of our SDRAM, DDR, DDR2, DDR3, RLDRAM, NAND Flash, NOR Flash and image sensor products, which account for a significant portion of our net sales.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are unable to predict the outcome of assertions of infringement made against us and therefore cannot estimate the range of possible loss. A court determination that our products or manufacturing processes infringe the intellectual property rights of others could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing could have a material adverse effect on our business, results of operations or financial condition.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Antitrust Matters</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 5, 2004, Rambus filed a complaint in the Superior Court of the State of California (San Francisco County) against us and other DRAM suppliers which alleged that the defendants harmed Rambus by engaging in concerted and unlawful efforts affecting Rambus DRAM ("RDRAM") by eliminating competition and stifling innovation in the market for computer memory technology and computer memory chips.&#160; Rambus' complaint alleged various causes of action under California state law including, among other things, a conspiracy to restrict output and fix prices, a conspiracy to monopolize, intentional interference with prospective economic advantage, and unfair competition. Rambus sought a judgment for damages of approximately $3.9 billion, joint and several liability, trebling of damages awarded, punitive damages, a permanent injunction enjoining the defendants from the conduct alleged in the complaint, interest, and attorneys' fees and costs. Trial began on June 20, 2011, and the case went to the jury on September 21, 2011. On November 16, 2011, the jury found for us on all claims. On April 2, 2012, Rambus filed a notice of appeal to the California 1</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">st</sup></font><font style="font-family:inherit;font-size:10pt;"> District Court of Appeal.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">At least sixty-eight purported class action price-fixing lawsuits have been filed against us and other DRAM suppliers in various federal and state courts in the United States and in Puerto Rico on behalf of indirect purchasers alleging a conspiracy to increase DRAM prices in violation of federal and state antitrust laws and state unfair competition law, and/or unjust enrichment relating to the sale and pricing of DRAM products during the period from April 1999 through at least June 2002. The complaints seek joint and several damages, trebled, in addition to restitution, costs and attorneys' fees. A number of these cases have been removed to federal court and transferred to the U.S. District Court for the Northern District of California for consolidated pre-trial proceedings. In July, 2006, the Attorneys General for approximately forty U.S. states and territories filed suit in the U.S. District Court for the Northern District of California. The complaints allege, among other things, violations of the Sherman Act, Cartwright Act, and certain other states' consumer protection and antitrust laws and seek joint and several damages, trebled, as well as injunctive and other relief. On October 3, 2008, the California Attorney General filed a similar lawsuit in California Superior Court, purportedly on behalf of local California government entities, alleging, among other things, violations of the Cartwright Act and state unfair competition law. On June&#160;23, 2010, we executed a settlement agreement resolving these purported class-action indirect purchaser cases and the pending cases of the Attorneys General relating to alleged DRAM price-fixing in the United States. Subject to certain conditions, including final court approval of the class settlements, we agreed to pay approximately $67 million in aggregate in three equal installments over a two-year period. As of May 31, 2012, we have paid $45 million into an escrow account in accordance with the settlement agreement.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Three putative class action lawsuits alleging price-fixing of DRAM products also have been filed against us in Quebec, Ontario, and British Columbia, Canada, on behalf of direct and indirect purchasers, asserting violations of the Canadian Competition Act and other common law claims.&#160; The claims were initiated between December 2004 (British Columbia) and June 2006 (Quebec). The plaintiffs seek monetary damages, restitution, costs, and attorneys' fees. The substantive allegations in these cases are similar to those asserted in the DRAM antitrust cases filed in the United States.&#160; Plaintiffs' motion for class certification was denied in the British Columbia and Quebec cases in May and June 2008, respectively.&#160; Plaintiffs subsequently filed an appeal of each of those decisions.&#160; On November 12, 2009, the British Columbia Court of Appeal reversed, and on November 16, 2011, the Quebec Court of Appeal also reversed the denial of class certification and remanded the cases for further proceedings.&#160;&#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June 21, 2010, the Brazil Secretariat of Economic Law of the Ministry of Justice ("SDE") announced that it had initiated an investigation relating to alleged anticompetitive activities within the DRAM industry. The SDE's Notice of Investigation names various DRAM manufacturers and certain executives, including us, and focuses on the period from July 1998 to June 2002.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September&#160;24, 2010, Oracle America Inc. ("Oracle"), successor to Sun Microsystems, a DRAM purchaser that opted-out of a direct purchaser class action suit that was settled, filed suit against us in U.S. District Court for the Northern District of California. The complaint alleged a conspiracy to increase DRAM prices and other violations of federal and state antitrust and unfair competition laws based on purported conduct for the period from August&#160;1, 1998 through at least June&#160;15, 2002. Oracle sought joint and several damages, trebled, as well as restitution, disgorgement, attorneys' fees, costs and injunctive relief. On March 23, 2012, we entered into a settlement agreement with Oracle pursuant to which we agreed to make a payment of $58 million to Oracle for a settlement and full release of all claims and a dismissal with prejudice of the litigation. The settlement amount was accrued and charged to operations in the second quarter of 2012.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are unable to predict the outcome of these matters and therefore cannot estimate the range of possible loss, except as noted in the U.S. indirect purchasers cases and Oracle above. The final resolution of these alleged violations of antitrust laws could result in significant liability and could have a material adverse effect on our business, results of operations or financial condition.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Commercial Matters</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January&#160;20, 2011, Dr. Michael Jaff&#233;, administrator for Qimonda AG ("Qimonda") insolvency proceedings, filed suit against us and Micron Semiconductor B.V., our Netherlands subsidiary, in the District Court of Munich, Civil Chamber. The complaint seeks to void under Section 133 of the German Insolvency Act a share purchase agreement between us and Qimonda signed in fall 2008 pursuant to which we purchased all of Qimonda's shares of Inotera Memories, Inc. and seeks an order requiring us to retransfer the Inotera shares to the Qimonda estate. The complaint also seeks to terminate under Sections 103 or 133 of the German Insolvency Code a patent cross license between us and Qimonda entered into at the same time as the share purchase agreement. A hearing scheduled to begin on November 9, 2011 was continued and now is scheduled for September 25, 2012. We are unable to predict the outcome of this lawsuit and therefore cannot estimate the range of possible loss. The final resolution of this lawsuit could result in the loss of the Inotera shares or equivalent monetary damages and the termination of the patent cross license, which could have a material adverse effect on our business, results of operation or financial condition.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, our payments under these types of agreements have not had a material adverse effect on our business, results of operations or financial condition.</font></div></div>
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CY2012Q2 mu Available For Sale Securities Debt Maturities After Four Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterFourYearsFairValue
6000000 USD
CY2012Q2 mu Available For Sale Securities Debt Maturities After One Through Two Years Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughTwoYearsAmortizedCost
150000000 USD
CY2012Q2 mu Available For Sale Securities Debt Maturities After One Through Two Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughTwoYearsFairValue
150000000 USD
CY2012Q2 mu Available For Sale Securities Debt Maturities After Two Through Four Years Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesAfterTwoThroughFourYearsAmortizedCost
189000000 USD
CY2012Q2 mu Available For Sale Securities Debt Maturities After Two Through Four Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterTwoThroughFourYearsFairValue
189000000 USD
mu Debt Exchange Convertible Debt Face Amount
DebtExchangeConvertibleDebtFaceAmount
0 USD
mu Debt Exchange Convertible Debt Face Amount
DebtExchangeConvertibleDebtFaceAmount
175000000 USD
CY2011Q3 mu Disposal Group Not Discontinued Operation Divestiture Amount Of Shares Received
DisposalGroupNotDiscontinuedOperationDivestitureAmountOfSharesReceived
20000000 shares
CY2012Q2 mu Disposal Group Not Discontinued Operation Divestiture Amount Of Shares Received
DisposalGroupNotDiscontinuedOperationDivestitureAmountOfSharesReceived
20000000 shares
mu Dram Research And Development Expense Reimbursement
DramResearchAndDevelopmentExpenseReimbursement
108000000 USD
CY2012Q2 mu Dram Research And Development Expense Reimbursement
DramResearchAndDevelopmentExpenseReimbursement
35000000 USD
CY2011Q2 mu Dram Research And Development Expense Reimbursement
DramResearchAndDevelopmentExpenseReimbursement
38000000 USD
mu Dram Research And Development Expense Reimbursement
DramResearchAndDevelopmentExpenseReimbursement
101000000 USD
CY2011Q3 mu Equipment Purchase Contracts
EquipmentPurchaseContracts
67000000 USD
CY2012Q2 mu Equipment Purchase Contracts
EquipmentPurchaseContracts
121000000 USD
CY2011Q2 mu Gain On Patent Cross License Agreement
GainOnPatentCrossLicenseAgreement
35000000 USD
CY2011 mu Gain On Patent Cross License Agreement
GainOnPatentCrossLicenseAgreement
275000000 USD
CY2012Q2 mu Gain On Patent Cross License Agreement
GainOnPatentCrossLicenseAgreement
0 USD
mu Gain On Patent Cross License Agreement
GainOnPatentCrossLicenseAgreement
0 USD
mu Gain On Patent Cross License Agreement
GainOnPatentCrossLicenseAgreement
275000000 USD
mu Minority Interest Net Change From Distributions To Or Contributions From Noncontrolling Interests
MinorityInterestNetChangeFromDistributionsToOrContributionsFromNoncontrollingInterests
236000000 USD
mu Minority Interest Net Change From Distributions To Or Contributions From Noncontrolling Interests
MinorityInterestNetChangeFromDistributionsToOrContributionsFromNoncontrollingInterests
151000000 USD
CY2011Q2 mu Net Charge Relating To Disposition Of Assets
NetChargeRelatingToDispositionOfAssets
74000000 USD
mu Option Indexed To Issuers Equity Cash Paid
OptionIndexedToIssuersEquityCashPaid
0 USD
mu Option Indexed To Issuers Equity Cash Paid
OptionIndexedToIssuersEquityCashPaid
102000000 USD
CY2011Q2 mu Other Other Operating Income Expense Net
OtherOtherOperatingIncomeExpenseNet
24000000 USD
mu Other Other Operating Income Expense Net
OtherOtherOperatingIncomeExpenseNet
42000000 USD
mu Other Other Operating Income Expense Net
OtherOtherOperatingIncomeExpenseNet
-22000000 USD
CY2012Q2 mu Other Other Operating Income Expense Net
OtherOtherOperatingIncomeExpenseNet
-16000000 USD
mu Payments On Equipment Purchase Contracts
PaymentsOnEquipmentPurchaseContracts
132000000 USD
mu Payments On Equipment Purchase Contracts
PaymentsOnEquipmentPurchaseContracts
262000000 USD
CY2011Q2 mu Rd Expenses Reduced By Reimbursements From Third Party
RdExpensesReducedByReimbursementsFromThirdParty
25000000 USD
mu Rd Expenses Reduced By Reimbursements From Third Party
RdExpensesReducedByReimbursementsFromThirdParty
60000000 USD
CY2012Q2 mu Rd Expenses Reduced By Reimbursements From Third Party
RdExpensesReducedByReimbursementsFromThirdParty
18000000 USD
mu Rd Expenses Reduced By Reimbursements From Third Party
RdExpensesReducedByReimbursementsFromThirdParty
71000000 USD
mu Return Of Equity Method Investments
ReturnOfEquityMethodInvestments
48000000 USD
mu Return Of Equity Method Investments
ReturnOfEquityMethodInvestments
1000000 USD
mu Unrecorded Unconditional Purchase Obligation Percentage
UnrecordedUnconditionalPurchaseObligationPercentage
0.5 pure
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--08-30
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2012
dei Document Period End Date
DocumentPeriodEndDate
2012-05-31
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000723125
CY2012Q3 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
1017533224 shares
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
MICRON TECHNOLOGY INC

Files In Submission

Name View Source Status
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0000723125-12-000084-index.html Edgar Link pending
0000723125-12-000084.txt Edgar Link pending
0000723125-12-000084-xbrl.zip Edgar Link pending
a2012q3.htm Edgar Link pending
a2012q3ex10-107.htm Edgar Link pending
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mu-20120531.xml Edgar Link completed
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