NOTES
(Unaudited)
Debt Activity
On November 3, 2022, we entered into a Term Loan Agreement consisting of three tranches and borrowed $2.60 billion in aggregate principal amount, including $927 million due November 3, 2025, $746 million due November 3, 2026, and $927 million due November 3, 2027. Borrowings under the Term Loan Agreement will bear interest at adjusted term SOFR plus an applicable interest rate margin ranging from 1.00% to 2.00%, varying by tranche and depending on our corporate credit ratings.
On October 31, 2022, we issued $750 million principal amount of senior notes due 2029 in a public offering and received net proceeds of $744 million. The notes bear interest at a rate of 6.750% per year and will mature on November 1, 2029.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||
|
December 1,
2022 |
September 1,
2022 |
December 2,
2021 | |||||||
| GAAP gross margin | $ | 893 | $ | 2,622 | $ | 3,565 | |||
| Stock-based compensation | 36 | 49 | 43 | ||||||
| Other | 5 | 5 | 8 | ||||||
| Non-GAAP gross margin | $ | 934 | $ | 2,676 | $ | 3,616 | |||
| GAAP operating expenses | $ | 1,102 | $ | 1,101 | $ | 934 | |||
| Stock-based compensation | (90 | ) | (82 | ) | (73 | ) | |||
| Restructure and asset impairments | (13 | ) | (5 | ) | (38 | ) | |||
| Other | — | — | 68 | ||||||
| Non-GAAP operating expenses | $ | 999 | $ | 1,014 | $ | 891 | |||
| GAAP operating income (loss) | $ | (209 | ) | $ | 1,521 | $ | 2,631 | ||
| Stock-based compensation | 126 | 131 | 116 | ||||||
| Restructure and asset impairments | 13 | 5 | 38 | ||||||
| Other | 5 | 5 | (60 | ) | |||||
| Non-GAAP operating income (loss) | $ | (65 | ) | $ | 1,662 | $ | 2,725 | ||
| GAAP net income (loss) | $ | (195 | ) | $ | 1,492 | $ | 2,306 | ||
| Stock-based compensation | 126 | 131 | 116 | ||||||
| Restructure and asset impairments | 13 | 5 | 38 | ||||||
| Amortization of debt discount and other costs | 5 | 6 | 9 | ||||||
| (Gain) loss on debt repurchases | — | — | 83 | ||||||
| Other | 5 | 5 | (60 | ) | |||||
| Estimated tax effects of above and other tax adjustments | 7 | (18 | ) | (21 | ) | ||||
| Non-GAAP net income (loss) | $ | (39 | ) | $ | 1,621 | $ | 2,471 | ||
| GAAP weighted-average common shares outstanding - Diluted | 1,090 | 1,106 | 1,130 | ||||||
| Adjustment for stock-based compensation | — | 15 | 11 | ||||||
| Non-GAAP weighted-average common shares outstanding - Diluted | 1,090 | 1,121 | 1,141 | ||||||
| GAAP diluted earnings (loss) per share | $ | (0.18 | ) | $ | 1.35 | $ | 2.04 | ||
| Effects of the above adjustments | 0.14 | 0.10 | 0.12 | ||||||
| Non-GAAP diluted earnings (loss) per share | $ | (0.04 | ) | $ | 1.45 | $ | 2.16 | ||
