Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2008


CONSOLIDATED FINANCIAL SUMMARY, Continued
                                                       As of
                                              Feb.   Nov. 29, Aug. 30,
                                               28,
                                               2008    2007     2007
                                             ------- -------- --------
Cash and short-term investments              $ 1,853 $ 2,031  $ 2,616
Receivables                                      894   1,067      994
Inventories (1)                                1,449   1,443    1,532
Total current assets                           4,304   4,652    5,234
Property, plant and equipment, net             8,634   8,576    8,279
Goodwill (2)                                      58     515      515
Total assets                                  13,785  14,498   14,818

Accounts payable and accrued expenses          1,299   1,317    1,385
Current portion of long-term debt                244     281      423
Total current liabilities                      1,720   1,852    2,026
Long-term debt (7)                             2,162   1,936    1,987
Noncontrolling interests in subsidiaries       2,808   2,760    2,607
Total shareholders' equity                     6,738   7,501    7,752


                                                     Six Months Ended
                                                     Feb. 28, Mar. 1,
                                                       2008     2007
                                                     -------- --------
Net cash provided by operating activities            $   558  $   716
Net cash used for investing activities                  (925)  (1,195)
Net cash provided by (used for) financing
 activities                                             (117)     614

Depreciation and amortization                          1,015      800
Expenditures for property, plant and
 equipment                                            (1,306)  (2,180)
Cash received from noncontrolling interests              192      647
Payments on equipment purchase contracts                (274)    (287)

Noncash equipment acquisitions on contracts
  payable and capital leases                             297      667


(1) The results for the second and first quarters of fiscal 2008 include charges of $15 million and $62 million, respectively, to write down the carrying value of work in process and finished goods inventories of memory products to their estimated fair market values.

(2) In the second quarter of fiscal 2008, in accordance with FASB Statement No. 142, "Goodwill and Other Intangible Assets," the company performed a test to determine whether or not its goodwill was impaired. Based on the results of the test, the company wrote off all of the $463 million of goodwill associated with its Memory segment as of February 28, 2008. Final determination of the fair value of goodwill is expected to be completed in the third quarter of fiscal 2008 and any adjustments to reach the final amount will be included in that period.

(3) Other operating (income) expense for the second quarter of fiscal 2008 includes gains of $47 million on disposals of semiconductor equipment. Other operating (income) expense for the first quarter of fiscal 2008 includes $38 million in receipts from the U.S. government in connection with anti-dumping tariffs, losses of $27 million from changes in currency exchange rates and gains of $10 million on disposals of semiconductor equipment. Other operating expense for the first six months of fiscal 2007 includes a gain of $30 million from the sale of certain intellectual property to Toshiba Corporation and $10 million from gains on disposals of semiconductor equipment.

(4) In the fourth quarter of fiscal 2007, the company announced it was pursuing a number of initiatives to drive greater cost efficiencies and revenue growth across its operations. During the second and first quarters of fiscal 2008 and the fourth quarter of fiscal 2007, the company recorded restructure charges of $8 million, $13 million and $19 million, respectively, consisting primarily of employee severance and related costs resulting from a reduction in the company's workforce. The first quarter charge also included a write-down of the carrying value of certain facilities to their estimated fair values. At the end of the second quarter of fiscal 2008, liabilities for unpaid portions of the restructure charge were $6 million.




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