- Stock-based compensation;
- Flow-through of business acquisition-related inventory adjustments;
- Acquisition-related costs;
- Employee severance;
- Gains and losses from settlements and patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount;
- 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.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
| 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 | |||||||
| (1) | GAAP earnings per share based on approximately 1.10 billion diluted shares and non-GAAP earnings per share based on approximately 1.12 billion diluted shares. | |||||||
