- Stock-based compensation;
- Flow-through of business acquisition-related inventory adjustments;
- Acquisition-related costs;
- Start-up and preproduction costs;
- Employee severance;
- Patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with our convertible notes and other debt;
- Gains and losses from debt repurchases and conversions;
- Gains and losses from business acquisition activities;
- Initial impact of inventory accounting policy change to FIFO and change in inventory cost absorption in the second quarter of 2021; and
- The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.
Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock- based compensation from non-GAAP income. Non-GAAP diluted shares also include the impact of capped calls, which are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of convertible notes, based on the average share price for the period the capped calls were outstanding.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
| FQ4-21 | GAAP Outlook |
Adjustments
| Non-GAAP Outlook | ||||
| Revenue | $8.2 billion ± $200 million | — | $8.2 billion ± $200 million | ||||
| Gross margin | 46.0% ± 1% | 1% | A | 47.0% ± 1% | |||
| Operating expenses | $955 million ± $25 million | $55 million | B | $900 million ± $25 million | |||
| Diluted earnings per share(1) | $2.23 ± $0.10 | $0.07 | A, B, C | $2.30 ± $0.10 | |||
| Non-GAAP Adjustments | |||||||
| (in millions) | |||||||
| A Stock-based compensation – cost of goods sold | $ | 45 | |||||
| A Other – cost of goods sold | 6 | ||||||
| B Stock-based compensation – research and development | 30 | ||||||
| B Stock-based compensation – sales, general, and administrative | 25 | ||||||
| C Tax effects of the above items and non-cash changes in net deferred income taxes | (25) | ||||||
| $ | 81 | ||||||
(1) GAAP and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.
The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
Contacts: Farhan Ahmad Investor Relations farhanahmad@micron.com (408) 834-1927 Erica Rodriguez Pompen Media Relations epompen@micron.com (408) 834-1873
