(5) In connection with the company's acquisition of Inotera, in the second quarter of fiscal 2017, the company sold 58 million shares of its common stock to Nanya for $986 million, of which 54 million were issued from treasury stock. As a result, treasury stock decreased by $1.03 billion, which resulted in a decrease in retained earnings of $104 million for the difference between the carrying value of the treasury stock and its $925 million fair value. These shares were issued in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, and subject to certain restrictions on transfers.
| MICRON TECHNOLOGY, INC. | ||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||||
| (in millions except per share amounts) | ||||||||||||
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | ||||||||||
|
June 1,
2017 |
March 2,
2017 |
June 2,
2016 | ||||||||||
| GAAP net income (loss) attributable to Micron | $ | 1,647 | $ | 894 | $ | (215 | ) | |||||
| Non-GAAP adjustments | ||||||||||||
| Flow-through of Inotera inventory step up | 36 | 60 | — | |||||||||
| Stock-based compensation – cost of goods sold | 24 | 23 | 21 | |||||||||
| Stock-based compensation – sales, general, and administrative | 20 | 18 | 14 | |||||||||
| Stock-based compensation – research and development | 13 | 14 | 12 | |||||||||
| Inotera acquisition costs | — | 12 | 2 | |||||||||
| Restructure and asset impairments | 12 | 4 | 25 | |||||||||
| Amortization of debt discount and other costs | 30 | 31 | 30 | |||||||||
| Loss on restructure of debt | 61 | — | 3 | |||||||||
| (Gain) loss from changes in currency exchange rates | 22 | 28 | 5 | |||||||||
| (Gain) loss from business acquisition activities | — | (71 | ) | — | ||||||||
| Other | 3 | 11 | 4 | |||||||||
| Estimated tax effects of above and non-cash changes in net deferred income taxes | 28 | 7 | 70 | |||||||||
| Total non-GAAP adjustments | 249 | 137 | 186 | |||||||||
| Non-GAAP net income attributable to Micron | $ | 1,896 | $ | 1,031 | $ | (29 | ) | |||||
| Number of shares used in diluted per share calculations | ||||||||||||
| GAAP | 1,177 | 1,160 | 1,036 | |||||||||
| Effect of capped calls and other adjustments | (8 | ) | (14 | ) | — | |||||||
| Non-GAAP | 1,169 | 1,146 | 1,036 | |||||||||
| Diluted earnings (loss) per share | ||||||||||||
| GAAP | $ | 1.40 | $ | 0.77 | $ | (0.21 | ) | |||||
| Effects of above | 0.22 | 0.13 | 0.18 | |||||||||
| Non-GAAP | $ | 1.62 | $ | 0.90 | $ | (0.03 | ) | |||||
