2021 Q3 Form 10-K Financial Statement

#000072312521000065 Filed on October 08, 2021

View on sec.gov

Income Statement

Concept 2021 Q3 2021 2020 Q3
Revenue $8.274B $27.71B $6.056B
YoY Change 36.62% 29.25% 24.35%
Cost Of Revenue $4.362B $17.28B $3.988B
YoY Change 9.38% 16.12% 14.76%
Gross Profit $3.912B $10.42B $2.068B
YoY Change 89.17% 59.08% 48.24%
Gross Profit Margin 47.28% 37.62% 34.15%
Selling, General & Admin $236.0M $894.0M $231.0M
YoY Change 2.16% 1.48% 8.96%
% of Gross Profit 6.03% 8.58% 11.17%
Research & Development $705.0M $2.663B $630.0M
YoY Change 11.9% 2.42% 1.12%
% of Gross Profit 18.02% 25.55% 30.46%
Depreciation & Amortization $1.621B $6.214B $1.567B
YoY Change 3.45% 9.98% 10.66%
% of Gross Profit 41.44% 59.62% 75.77%
Operating Expenses $935.0M $3.557B $864.0M
YoY Change 8.22% 2.18% 4.85%
Operating Profit $2.977B $6.283B $1.204B
YoY Change 147.26% 109.22% 85.23%
Interest Expense -$17.00M $183.0M -$38.00M
YoY Change -55.26% -5.67% -311.11%
% of Operating Profit -0.57% 2.91% -3.16%
Other Income/Expense, Net -$1.000M $81.00M $6.000M
YoY Change -116.67% 35.0% -300.0%
Pretax Income $2.936B -$211.0M $1.125B
YoY Change 160.98% -168.51% 71.76%
Income Tax $230.0M $394.0M $136.0M
% Of Pretax Income 7.83% 12.09%
Net Earnings $2.720B $5.861B $988.0M
YoY Change 175.3% 118.12% 76.11%
Net Earnings / Revenue 32.87% 21.16% 16.31%
Basic Earnings Per Share $5.23
Diluted Earnings Per Share $2.384M $5.14 $873.6K
COMMON SHARES
Basic Shares Outstanding 1.120B shares
Diluted Shares Outstanding 1.141B shares

Balance Sheet

Concept 2021 Q3 2021 2020 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.633B $8.633B $8.142B
YoY Change 6.03% 6.03% 2.35%
Cash & Equivalents $7.763B $7.763B $7.624B
Short-Term Investments $870.0M $870.0M $518.0M
Other Short-Term Assets $502.0M $1.476B $538.0M
YoY Change -6.69% 385.53% 128.94%
Inventory $4.487B $4.487B $5.373B
Prepaid Expenses
Receivables $4.920B $4.920B $3.494B
Other Receivables $127.0M $391.0M $186.0M
Total Short-Term Assets $19.91B $19.91B $17.97B
YoY Change 10.81% 10.81% 8.86%
LONG-TERM ASSETS
Property, Plant & Equipment $33.76B $33.76B $31.62B
YoY Change 6.8% 6.8% 11.95%
Goodwill $1.228B $1.228B
YoY Change 0.0% 0.0%
Intangibles $349.0M $334.0M
YoY Change 4.49% -1.76%
Long-Term Investments $1.918B $1.918B $1.048B
YoY Change 83.02% 83.02% -9.97%
Other Assets $1.054B $1.683B $781.0M
YoY Change 34.96% 13.1% 35.83%
Total Long-Term Assets $38.94B $38.94B $35.71B
YoY Change 9.04% 9.04% 10.28%
TOTAL ASSETS
Total Short-Term Assets $19.91B $19.91B $17.97B
Total Long-Term Assets $38.94B $38.94B $35.71B
Total Assets $58.85B $58.85B $53.68B
YoY Change 9.63% 9.63% 9.8%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.744B $1.744B $2.191B
YoY Change -20.4% -20.4% 30.65%
Accrued Expenses $984.0M $1.039B $849.0M
YoY Change 15.9% 22.38% 22.16%
Deferred Revenue $74.00M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $155.0M $155.0M $270.0M
YoY Change -42.59% -42.59% -79.39%
Total Short-Term Liabilities $6.424B $6.424B $6.635B
YoY Change -3.18% -3.18% 3.83%
LONG-TERM LIABILITIES
Long-Term Debt $6.621B $6.621B $6.373B
YoY Change 3.89% 3.89% 40.34%
Other Long-Term Liabilities $559.0M $1.871B $498.0M
YoY Change 12.25% 11.77% 10.18%
Total Long-Term Liabilities $559.0M $8.492B $498.0M
YoY Change 12.25% 5.53% 10.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.424B $6.424B $6.635B
Total Long-Term Liabilities $559.0M $8.492B $498.0M
Total Liabilities $14.92B $14.92B $14.68B
YoY Change 1.59% 1.59% 22.16%
SHAREHOLDERS EQUITY
Retained Earnings $39.05B $33.38B
YoY Change 16.98% 8.53%
Common Stock $9.575B $9.036B
YoY Change 5.97% 8.45%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $43.93B $43.93B $39.00B
YoY Change
Total Liabilities & Shareholders Equity $58.85B $58.85B $53.68B
YoY Change 9.63% 9.63% 9.8%

Cashflow Statement

Concept 2021 Q3 2021 2020 Q3
OPERATING ACTIVITIES
Net Income $2.720B $5.861B $988.0M
YoY Change 175.3% 118.12% 76.11%
Depreciation, Depletion And Amortization $1.621B $6.214B $1.567B
YoY Change 3.45% 9.98% 10.66%
Cash From Operating Activities $3.884B $12.47B $2.271B
YoY Change 71.03% 50.11% 1.7%
INVESTING ACTIVITIES
Capital Expenditures -$2.015B $10.03B -$2.280B
YoY Change -11.62% 21.97% 12.43%
Acquisitions
YoY Change
Other Investing Activities -$519.0M -$3.000M -$458.0M
YoY Change 13.32% -106.98% -149.35%
Cash From Investing Activities -$2.534B -$10.59B -$2.738B
YoY Change -7.45% 39.53% 148.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.294B
YoY Change 415.54%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.344B -$1.781B -182.0M
YoY Change 638.46% 461.83% -120.4%
NET CHANGE
Cash From Operating Activities 3.884B $12.47B 2.271B
Cash From Investing Activities -2.534B -$10.59B -2.738B
Cash From Financing Activities -1.344B -$1.781B -182.0M
Net Change In Cash 6.000M $139.0M -649.0M
YoY Change -100.92% -66.18% -132.05%
FREE CASH FLOW
Cash From Operating Activities $3.884B $12.47B $2.271B
Capital Expenditures -$2.015B $10.03B -$2.280B
Free Cash Flow $5.899B $2.438B $4.551B
YoY Change 29.62% 2837.35% 6.81%

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CY2020 mu Treasury Shares Acquired And Stock Repurchased And Retired
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CY2020 mu Option Indexed To Issuers Equity Settlement Effecton Shareholders Equity
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CY2021 mu Treasury Shares Acquired And Stock Repurchased And Retired
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CY2021 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
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CY2021 us-gaap Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt Subsequent Adjustments
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CY2021 us-gaap Dividends Common Stock Cash
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CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2021 us-gaap Restructuring Costs And Asset Impairment Charges
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CY2020 us-gaap Restructuring Costs And Asset Impairment Charges
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CY2019 us-gaap Restructuring Costs And Asset Impairment Charges
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CY2021 us-gaap Share Based Compensation
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CY2021 us-gaap Gains Losses On Extinguishment Of Debt
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CY2019 us-gaap Gains Losses On Extinguishment Of Debt
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CY2019 us-gaap Increase Decrease In Receivables
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CY2021 us-gaap Increase Decrease In Inventories
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CY2020 us-gaap Increase Decrease In Inventories
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CY2019 us-gaap Increase Decrease In Inventories
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CY2021 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2020 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2019 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2021 us-gaap Increase Decrease In Deferred Income Taxes
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CY2020 us-gaap Increase Decrease In Deferred Income Taxes
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CY2019 us-gaap Increase Decrease In Deferred Income Taxes
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CY2021 us-gaap Other Operating Activities Cash Flow Statement
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CY2020 us-gaap Other Operating Activities Cash Flow Statement
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CY2019 us-gaap Other Operating Activities Cash Flow Statement
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CY2019 us-gaap Net Cash Provided By Used In Operating Activities
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CY2021 us-gaap Payments To Acquire Property Plant And Equipment
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CY2020 us-gaap Payments To Acquire Property Plant And Equipment
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CY2019 us-gaap Payments To Acquire Property Plant And Equipment
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CY2021 us-gaap Payments To Acquire Available For Sale Securities Debt
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CY2020 us-gaap Payments To Acquire Available For Sale Securities Debt
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CY2019 us-gaap Payments To Acquire Available For Sale Securities Debt
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CY2021 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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CY2020 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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CY2019 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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CY2021 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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CY2020 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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CY2019 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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CY2021 mu Proceeds From Government Incentives
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CY2020 mu Proceeds From Government Incentives
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CY2019 mu Proceeds From Government Incentives
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CY2020 us-gaap Payments For Proceeds From Other Investing Activities
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CY2019 us-gaap Payments For Proceeds From Other Investing Activities
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CY2021 us-gaap Net Cash Provided By Used In Investing Activities
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CY2020 us-gaap Net Cash Provided By Used In Investing Activities
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CY2019 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 us-gaap Repayments Of Long Term Debt And Capital Securities
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CY2020 us-gaap Repayments Of Long Term Debt And Capital Securities
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CY2019 us-gaap Repayments Of Long Term Debt And Capital Securities
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CY2021 us-gaap Payments For Repurchase Of Common Stock
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CY2019 us-gaap Payments For Repurchase Of Common Stock
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CY2021 mu Payments On Equipment Purchase Contracts
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CY2020 mu Payments On Equipment Purchase Contracts
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CY2019 mu Payments On Equipment Purchase Contracts
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CY2021 us-gaap Payments To Minority Shareholders
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CY2020 us-gaap Payments To Minority Shareholders
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CY2019 us-gaap Payments To Minority Shareholders
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CY2021 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2020 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2019 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2021 us-gaap Proceeds From Payments For Other Financing Activities
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CY2020 us-gaap Proceeds From Payments For Other Financing Activities
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CY2019 us-gaap Proceeds From Payments For Other Financing Activities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2018Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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7690000000 USD
CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 us-gaap Income Taxes Paid Net
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CY2020 us-gaap Income Taxes Paid Net
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CY2019 us-gaap Income Taxes Paid Net
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CY2021 us-gaap Interest Paid Net
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CY2020 us-gaap Interest Paid Net
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CY2019 us-gaap Interest Paid Net
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CY2021 mu Capital Expenditures Incurred Not Yet Paid And Finance Lease Obligations Incurred
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CY2020 mu Capital Expenditures Incurred Not Yet Paid And Finance Lease Obligations Incurred
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CY2019 mu Capital Expenditures Incurred Not Yet Paid And Finance Lease Obligations Incurred
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CY2021 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
Certain reclassifications have been made to prior period amounts to conform to current period presentation. See<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">“Inventories” below for changes to our significant accounting policies, and the “Inventories” note for additional</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">information.</span></div>
CY2021 us-gaap Fiscal Period
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Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal 2021 contained 52 weeks, fiscal 2020 contained 53 weeks, and fiscal 2019 contained 52 weeks. Our fourth quarter of fiscal 2020 contained 14 weeks and all other fiscal quarters in the years presented contained 13 weeks. All period references are to our fiscal periods unless otherwise indicated.
CY2021 us-gaap Use Of Estimates
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<div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. Estimates and judgments are based on historical experience, forecasted events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and judgments may differ under different assumptions or conditions. We evaluate our estimates and judgments on an ongoing basis. Actual results could differ from estimates.</span></div>
CY2021Q3 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2021Q3 us-gaap Available For Sale Securities Debt Securities Noncurrent
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CY2021Q3 mu Cash Cash Equivalentsand Availablefor Sale Debt Securities
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CY2020Q3 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q3 mu Cash Cash Equivalentsand Availablefor Sale Debt Securities
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CY2021Q3 us-gaap Restricted Cash Noncurrent
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CY2020Q3 us-gaap Restricted Cash Noncurrent
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CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q3 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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CY2020Q3 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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CY2021 us-gaap Equity Securities Without Readily Determinable Fair Value Upward Price Adjustment Annual Amount
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70000000 USD
CY2020 us-gaap Equity Securities Without Readily Determinable Fair Value Upward Price Adjustment Annual Amount
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CY2021Q3 us-gaap Accounts Receivable Net Current
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CY2020Q3 us-gaap Accounts Receivable Net Current
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CY2021Q3 us-gaap Income Taxes Receivable
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CY2020Q3 us-gaap Income Taxes Receivable
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CY2020Q3 us-gaap Other Receivables Net Current
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CY2021Q3 us-gaap Receivables Net Current
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5311000000 USD
CY2020Q3 us-gaap Receivables Net Current
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3912000000 USD
CY2021Q3 us-gaap Inventory Finished Goods Net Of Reserves
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513000000 USD
CY2020Q3 us-gaap Inventory Finished Goods Net Of Reserves
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1001000000 USD
CY2021Q3 us-gaap Inventory Work In Process Net Of Reserves
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3469000000 USD
CY2020Q3 us-gaap Inventory Work In Process Net Of Reserves
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3854000000 USD
CY2021Q3 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
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505000000 USD
CY2020Q3 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
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518000000 USD
CY2021Q3 us-gaap Inventory Net
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4487000000 USD
CY2020Q3 us-gaap Inventory Net
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5373000000 USD
CY2021Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset Before Accumulated Depreciation And Amortization
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69462000000 USD
CY2020Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset Before Accumulated Depreciation And Amortization
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CY2021Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset Accumulated Depreciation And Amortization
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CY2020Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset Accumulated Depreciation And Amortization
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CY2021Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
33213000000 USD
CY2020Q3 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
31031000000 USD
CY2021 us-gaap Depreciation
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6130000000 USD
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<div><span style="color:#000000;font-family:'Arial Narrow',sans-serif;font-size:22pt;font-weight:700;line-height:120%">Contingencies</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are currently a party to legal actions other than those described below arising from the normal course of business, none of which are expected to have a material adverse effect on our business, results of operations, or financial condition.</span></div><div><span><br/></span></div><div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Patent Matters</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As is typical in the semiconductor and other high-tech industries, from time to time, others have asserted, and may in the future assert, that our products or manufacturing processes infringe upon their intellectual property rights.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On August 12, 2014, MLC Intellectual Property, LLC filed a patent infringement action against Micron in the U.S. District Court for the Northern District of California. The complaint alleges that Micron infringes a single U.S. patent and seeks damages, attorneys’ fees, and costs.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On November 21, 2014, Elm 3DS Innovations, LLC (“Elm”) filed a patent infringement action against Micron; Micron Semiconductor Products, Inc.; and Micron Consumer Products Group, Inc. in the U.S. District Court for the District of Delaware. On March 27, 2015, Elm filed an amended complaint against the same entities. The amended complaint alleges that unspecified semiconductor products of ours that incorporate multiple stacked die infringe 13 U.S. patents and seeks damages, attorneys’ fees, and costs. On July 14, 2021, the action was dismissed with prejudice pursuant to a stipulation of dismissal filed by the parties. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On December 15, 2014, Innovative Memory Solutions, Inc. filed a patent infringement action against Micron in the U.S. District Court for the District of Delaware. The complaint alleges that a variety of our NAND products infringe eight U.S. patents and seeks damages, attorneys’ fees, and costs. Subsequently, six patents were invalidated or withdrawn, leaving two asserted patents in the District Court.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 19, 2018, Micron Semiconductor (Xi’an) Co., Ltd. (“MXA”) was served with a patent infringement complaint filed by Fujian Jinhua Integrated Circuit Co., Ltd. (“Jinhua”) in the Fuzhou Intermediate People’s Court in Fujian Province, China (the “Fuzhou Court”). On April 3, 2018, Micron Semiconductor (Shanghai) Co. Ltd. (“MSS”) was served with the same complaint. The complaint alleges that MXA and MSS infringe a Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 98 million Chinese yuan plus court fees incurred.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 21, 2018, MXA was served with a patent infringement complaint filed by United Microelectronics Corporation (“UMC”) in the Fuzhou Court. On April 3, 2018, MSS was served with the same complaint. The complaint alleges that MXA and MSS infringe a Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 90 million Chinese yuan plus court fees incurred.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On April 3, 2018, MSS was served with another patent infringement complaint filed by Jinhua and an additional complaint filed by UMC in the Fuzhou Court. The additional complaints allege that MSS infringes two Chinese patents by manufacturing and selling certain Crucial MX300 SSDs. The complaint filed by UMC seeks an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 90 million Chinese yuan plus court fees incurred. The complaint filed by Jinhua seeks an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 98 million Chinese yuan plus court fees incurred. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On July 5, 2018, MXA and MSS were notified that the Fuzhou Court granted a preliminary injunction against those entities that enjoins them from manufacturing, selling, or importing certain Crucial and Ballistix-branded DRAM modules and solid-state drives in China. The affected products made up slightly more than 1% of our annualized revenue in 2018. We are complying with the ruling and have requested the Fuzhou Court to reconsider or stay its decision.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On May 4, 2020, Flash-Control, LLC filed a patent infringement action against Micron in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by unspecified DDR4 SDRAM, NVRDIMM, NVDIMM, 3D XPoint, and/or SSD products that incorporate memory controllers and flash memory. The complaint seeks damages, attorneys’ fees, and costs. On July 21, 2020, in a separate matter, the District Court ruled that two of the four asserted patents are invalid, and on July 14, 2021, the U.S. Court of Appeals for the Federal Circuit affirmed the ruling of invalidity. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On April 28, 2021, Netlist, Inc. filed two patent infringement actions against Micron, Micron Semiconductor Products, Inc. and Micron Technology Texas, LLC in the U.S. District Court for the Western District of Texas. The first complaint alleges that a single U.S. patent is infringed by certain of our non-volatile dual in-line memory modules. The second complaint alleges that three U.S. patents are infringed by certain of our load-reduced dual in-line memory modules. Each complaint seeks injunctive relief, damages, attorneys’ fees, and costs.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On May 10, 2021, Vervain, LLC filed a patent infringement action against Micron, Micron Semiconductor Products, Inc., and Micron Technology Texas, LLC in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by certain SSD products. The complaint seeks injunctive relief, damages, attorneys’ fees, and costs.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Among other things, the above lawsuits pertain to substantially all of our DRAM, NAND, and other memory and storage products we manufacture, which account for substantially all of our revenue.</span></div><div><span><br/></span></div><div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Qimonda</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda’s insolvency proceedings, filed suit against Micron and Micron Semiconductor B.V. (“Micron B.V.”), 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 Micron B.V. and Qimonda signed in fall 2008, pursuant to which Micron B.V. purchased substantially all of Qimonda’s shares of Inotera (the “Inotera Shares”), representing approximately 18% of Inotera’s outstanding shares at that time, and seeks an order requiring us to re-transfer those shares to the Qimonda estate. The complaint also seeks, among other things, to recover damages for the alleged value of the joint venture relationship with Inotera and to terminate, </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Following a series of hearings with pleadings, arguments, and witnesses on behalf of the Qimonda estate, on March 13, 2014, the court issued judgments: (1) ordering Micron B.V. to pay approximately $1 million in respect of certain Inotera Shares sold in connection with the original share purchase; (2) ordering Micron B.V. to disclose certain information with respect to any Inotera Shares sold by it to third parties; (3) ordering Micron B.V. to disclose the benefits derived by it from ownership of the Inotera Shares, including in particular, any profits distributed on the Inotera Shares and all other benefits; (4) denying Qimonda’s claims against Micron for any damages relating to the joint venture relationship with Inotera; and (5) determining that Qimonda’s obligations under the patent cross-license agreement are canceled. In addition, the court issued interlocutory judgments ordering, among other things: (1) that Micron B.V. transfer to the Qimonda estate the Inotera Shares still owned by Micron B.V. and pay to the Qimonda estate compensation in an amount to be specified for any Inotera Shares sold to third parties; and (2) that Micron B.V. pay the Qimonda estate as compensation an amount to be specified for benefits derived by Micron B.V. from ownership of the Inotera Shares. The interlocutory judgments had no immediate, enforceable effect and Micron, accordingly, has been able to continue to operate with full control of the Inotera Shares subject to further developments in the case. On April 17, 2014, Micron and Micron B.V. filed a notice of appeal with the German Appeals Court challenging the District Court’s decision. After opening briefs, the Appeals Court held a hearing on the matter on July 9, 2015, and thereafter appointed an independent expert to perform an evaluation of Dr. Jaffé’s claims that the amount Micron paid for Qimonda was less than fair market value. On January 25, 2018, the court-appointed expert issued a report concluding that the amount paid by Micron was within an acceptable fair-value range. The Appeals Court held a subsequent hearing on April 30, 2019, and on May 28, 2019, the Appeals Court remanded the case to the expert for supplemental expert opinion. On March 31, 2020, the expert presented a revised opinion to the Appeals Court which reaffirmed the earlier view that the amount paid by Micron was still within an acceptable range of fair value. On March 4, 2021, the Appeals Court issued an order setting forth a new legal view that whether the 2008 sale of Inotera Shares is voidable depends on the question whether, in October 2008, Qimonda had a restructuring plan in place, and whether Micron was aware of and reasonably relied on that restructuring plan sufficient to form a belief that Qimonda was not imminently illiquid.</span></div><div><span><br/></span></div><div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Antitrust Matters</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On April 27, 2018, a complaint was filed against Micron and other DRAM suppliers in the U.S. District Court for the Northern District of California. Subsequently, two substantially identical cases were filed in the same court. The lawsuits purported to be on behalf of a nationwide class of indirect purchasers of DRAM products. On September 3, 2019, the District Court granted Micron’s motion to dismiss and allowed the plaintiffs the opportunity to file a consolidated, amended complaint. On October 28, 2019, the plaintiffs filed a consolidated, amended complaint that purported to be on behalf of a nationwide class of indirect purchasers of DRAM products. The amended complaint asserted claims based on alleged price-fixing of DRAM products under federal and state law during the period from June 1, 2016 to at least February 1, 2018, and sought treble monetary damages, costs, interest, attorneys’ fees, and other injunctive and equitable relief. On December 21, 2020, the District Court dismissed the plaintiffs’ claims and entered judgment against them. On January 19, 2021, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit. On May 3, 2021, several plaintiffs filed a substantially identical complaint in the U.S. District Court for the Northern District of California purportedly on behalf of a nationwide class of indirect purchasers of DRAM products. On July 19, 2021, the District Court dismissed the May 3, 2021 complaint pursuant to an agreement between the plaintiffs and Micron providing that the plaintiffs may refile the complaint if the District Court’s December 21, 2020 dismissal order is not affirmed on appeal. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On June 26, 2018, a complaint was filed against Micron and other DRAM suppliers in the U.S. District Court for the Northern District of California. Subsequently, four substantially identical cases were filed in the same court. On October 28, 2019, the plaintiffs filed a consolidated, amended complaint. The consolidated complaint purported to be on behalf of a nationwide class of direct purchasers of DRAM products. The consolidated complaint asserted claims based on alleged price-fixing of DRAM products under federal and state law during the period from June 1, 2016 through at least February 1, 2018, and sought treble monetary damages, costs, interest, attorneys’ fees, and other injunctive and equitable relief. On December 21, 2020, the District Court granted Micron’s motion to dismiss and granted the plaintiffs permission to file a further amended complaint. On January 11, 2021, the plaintiffs filed a further amended complaint asserting substantially the same claims and seeking the same relief. On September 3, 2021, the District Court granted Micron’s motion to dismiss the further amended complaint with prejudice. </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Additionally, six cases have been filed in the following Canadian courts: Superior Court of Quebec, the Federal Court of Canada, the Ontario Superior Court of Justice, and the Supreme Court of British Columbia. The substantive allegations in these cases are similar to those asserted in the cases filed in the United States.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On May 15, 2018, the Chinese State Administration for Market Regulation (“SAMR”) notified Micron that it was investigating potential collusion and other anticompetitive conduct by DRAM suppliers in China. On May 31, 2018, SAMR made unannounced visits to our sales offices in Beijing, Shanghai, and Shenzhen to seek certain information as part of its investigation. We are cooperating with SAMR in its investigation.</span></div><div><span><br/></span></div><div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Securities Matters</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 5, 2019, a derivative complaint was filed by a shareholder against certain current and former officers and directors of Micron, allegedly on behalf of and for the benefit of Micron, in the U.S. District Court for the District of Delaware alleging securities fraud, breaches of fiduciary duties, and other violations of law involving misrepresentations about purported anticompetitive behavior in the DRAM industry. The complaint seeks damages, fees, interest, costs, and other appropriate relief.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On February 9, 2021, a derivative complaint was filed by a shareholder against Sanjay Mehrotra and other current and former directors of Micron, allegedly on behalf of and for the benefit of Micron, in the U.S. District Court for the District of Delaware alleging violations of securities laws, breaches of fiduciary duties, and other violations of law involving allegedly false and misleading statements about Micron’s commitment to diversity and progress in diversifying its workforce, executive leadership, and Board of Directors. The complaint seeks damages, fees, interest, costs, and an order requiring Micron to take various actions to allegedly improve its corporate governance and internal procedures.</span></div><div><span><br/></span></div><div><span style="color:#0090da;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%">Other</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On December 5, 2017, Micron filed a complaint against UMC and Jinhua in the U.S. District Court for the Northern District of California. The complaint alleges that UMC and Jinhua violated the Defend Trade Secrets Act, the civil provisions of the Racketeer Influenced and Corrupt Organizations Act, and California’s Uniform Trade Secrets Act by misappropriating Micron’s trade secrets and other misconduct. Micron’s complaint seeks damages, restitution, disgorgement of profits, injunctive relief, and other appropriate relief.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On June 13, 2019, current Micron employee, Chris Manning, filed a putative class action lawsuit on behalf of Micron employees subject to the Idaho Wage Claim Act who earned a performance-based bonus after the conclusion of 2018 whose performance rating was calculated based upon a mandatory percentage distribution range of performance ratings. On July 12, 2019, Manning and three other Company employees filed an amended complaint as putative class action representatives. On behalf of themselves and the putative class, Manning and the three other plaintiffs assert claims for violation of the Idaho Wage Claim Act, breach of contract, breach of the covenant of good faith and fair dealing, and fraud. On June 24, 2020, the court entered judgment in favor of Micron based on the statute of limitations, and the plaintiffs filed a notice of appeal on July 23, 2020.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On July 31, 2020, Micron and Intel entered into a binding arbitration agreement under which the parties agreed to present to an arbitral panel various financial disputes related to the IMFT joint venture between Micron and Intel, which ended October 31, 2019, and to other agreements relating to the joint development, production, and sale of non-volatile memory products. Each party alleges that the other owes damages relating to allegations of breach of one or more agreements.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On July 13, 2015, Allied Telesis, Inc. and Allied Telesis International (Asia) Pte Ltd. filed a complaint against Micron in the Superior Court of California in Santa Clara alleging breach of implied and express warranties and fraudulent inducement to contract arising from plaintiffs’ purchase of certain allegedly defective DDR1 products between 2008 and 2010. Through subsequent amendments to the complaint, the plaintiffs substituted Allied Telesis K.K. as plaintiff, withdrew the warranty claims, and added claims of fraudulent concealment, negligent misrepresentation, negligence, and strict products liability. The plaintiff’s amended complaint seeks an unspecified award of damages, including punitive damages and lost profits. On September 3, 2020, the Superior Court granted summary judgment dismissing the claims for negligence and strict products liability and denied summary judgment as to the claims for negligent misrepresentation, fraudulent concealment, and fraudulent inducement to contract. A trial is scheduled to begin on January 10, 2022.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify another 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.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are unable to predict the outcome of the patent matters, Qimonda matter, antitrust matters, securities matters, binding arbitration with Intel, or any other matters noted above, and cannot make a reasonable estimate of the potential loss or range of possible losses. A determination that our products or manufacturing processes infringe the intellectual property rights of others or entering into a license agreement covering such intellectual property could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing, as well as the resolution of any other legal matter noted above, could have a material adverse effect on our business, results of operations, or financial condition.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are currently a party to legal actions other than those described in this note arising from the normal course of business, none of which are expected to have a material adverse effect on our business, results of operations, or financial condition.</span></div>
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