The document is a Form 8-K filed by Micron Technology, Inc. with the SEC on April 2, 2008 reporting their financial results for the second quarter of fiscal year 2008.
The key details are:
1) Micron reported net sales of $1.4 billion for the second quarter, down 11% from the previous quarter due to lower selling prices, partially offset by increased production.
2) They recorded a non-cash goodwill impairment charge of $463 million due to their market capitalization falling below book value.
3) Excluding this charge, their net loss would have been $0.41 per diluted share or $314 million, compared to a loss of $
How the law protects investment in technology - trade secrets, patents, desig...Jane Lambert
On Wednesday 27 Nov 2013 I addressed a seminar on trade secrets, patents, copyrights, design rights, semiconductor topographies and plant varieties. Although I delivered my talk without slides I have prepare these as an aide mémoire for those who attended the talk. They are supplemented by an accompanying handout.
Patent law developed during the industrial revolution when technology meant new products and processes but it now includes software, data, silicon chips and new plant and seed varieties. Consequently patents are fine for protecting developments in manufacturing but not quite so good protecting the new information based industries.
In addition to my overview of these rights I discussed the advantages and disadvantages of patents as opposed to trade secrets law. I suggested a simple IP strategy for most and discussed enforcement.
Bukal Life Care Journal is an annual publication of Bukal Life Care, an NGO based in Baguio City Philippines. We seek to help individuals, groups, and communities through "life care," referring to pastoral care, crisis care, member care, and health care.
Реклама на topnovostroek.ru станет отличным инструментом продаж Ваших предложений.
Максимально целевые посетители
Аудитория московского региона
Прозрачность статистики
The grammatical and pedagogical Port- Royal method marked the recovery of the former rationalist doctrine (teaching) by Minerva Brocense and her followers Scioppio, Perizonio, and Vossio,as well as the diffusion of the rationalist method from the end of the XVII to the teaching of Latin and Greek languages, apart from the teaching of modern languages. Progressively, the portroyalist method and its later modifications were replacing the preponderant Jesuit grammar teaching, based in a method inspired by the baroque fraught with precepts, rules and exceptions. It's our purpose in this article analyse the contribution of the port-royalist method to the teaching of latin, as well as its subsequent influence on the composition of numerous grammatical treatises that determined the Latin teaching throughout the XVII and partly the XIX.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
USDA Loans in California: A Comprehensive Overview.pptx
micron technollogy 8k_040208
1. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
April 2, 2008
Date of Report (date of earliest event reported)
MICRON TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10658 75-1618004
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
8000 South Federal Way
Boise, Idaho 83716-9632
(Address of principal executive offices)
(208) 368-4000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))
2. Item 1.01. Entry into a Material Definitive Agreement.
On March 31, 2008, the Company’s joint venture subsidiary, TECH Semiconductor Singapore Pte. Ltd. (quot;TECHquot;) entered into a new credit facility that
enables it to borrow up to $600 million at SIBOR plus 2.5%, subject to customary covenants (the “Credit Facility”). In addition to TECH, the parties to the Credit
Facility are ABN AMRO Bank N.V., Singapore Branch, Citibank, N.A., Singapore Branch / Citigroup Global Markets Singapore Pte Ltd, DBS Bank Ltd and
Oversea-Chinese Banking Corporation Limited as Original Mandated Lead Arrangers and a syndicate of banks (collectively the “Banks”). The Credit Facility is
available for drawdown from March 31, 2008 to December 31, 2008. TECH is expected to draw $220 million under the new credit facility on April 7, 2008 and retire
the amount outstanding under its previous credit facility by paying off $240 million. Payments under the new facility are due in 13 quarterly installments
commencing in May 2009. The Credit Facility is secured by all of the assets of TECH and contains customary affirmative, negative and financial covenants,
including, among other requirements, negative covenants that restrict TECH’s ability to create liens, incur indebtedness, merge or consolidate, acquire or dispose
of assets, make distributions, enter into transactions with affiliates, enter into restrictive agreements and financial covenants that establish applicable liquidity
ratios, debt service coverage ratios and limit the maximum leverage ratios that TECH can maintain at any one time.
In addition, the Credit Facility contains events of default, that include, among others, non-payment of principal, interest or fees, violation of covenants,
inaccuracy of representations or statements, cross-defaults to certain other indebtedness by TECH or the Company, bankruptcy and insolvency defaults of TECH
or the Company, material adverse change to the business of TECH, specific ownership requirements, material judgments, and non-extension of the term of the
TECH joint venture. The occurrence of an event of default could result in an increased interest rate, the acceleration of TECH’s obligations under the Credit
Facility and an obligation of TECH or the Company, under certain circumstances to repay the full amount of TECH’s borrowings under the Credit Facility.
In connection with the Credit Facility, on March 31, 2008, the Company entered into a Guarantee with ABN AMRO Bank B.V., Singapore Branch, as
security agent for the Banks (the “Guarantee”). Pursuant to the terms of the Guarantee, the Company has guaranteed approximately 73% of the outstanding
amount of the Credit Facility, with the Company’s obligations increasing to 100% of the outstanding amount of the Credit Facility upon the occurrence of certain
conditions. As a condition to granting the Guarantee, the Company has a second position priority interest in all of the assets of TECH behind the Banks. Certain
limited events of default under the Credit Facility will apply to the Company for as long as the Guarantee remains in place, including inaccuracy of representations
and statements the Company, violation of covenants of the Company under the Guarantee, and material adverse change to the business of the Company. In
addition, the Guarantee contains a limited number of covenants including requiring the obligations under the Guarantee to be pari passu with all other
indebtedness of the Company, making no substantial changes to the business, and not entering into a merger where the Company is not the surviving entity or
that has a material adverse affect on its ability to repay the Guarantee.
The foregoing descriptions of the Credit Facility and Guarantee are only summaries and do not purport to be complete. The summaries are qualified in
their entirety by reference to the actual agreements, which will be filed as exhibits to a future periodic or current report.
Item 2.02. Results of Operations and Financial Condition.
On April 2, 2008, the Company announced its financial results for the quarter ended February 28, 2008. The full text of the press release issued in
connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under “Item 1.01, “Entry into a Material Definitive Agreement,” is incorporated herein by reference.
Item 2.05. Costs Associated with Exit or Disposal Activities.
In the fourth quarter of fiscal 2007, the Company began pursuing a number of initiatives to drive greater cost efficiencies and revenue growth across its
operations. These initiatives include workforce reductions in certain areas of the Company as the Company’s business is realigned. Additional initiatives include
establishing certain operations closer in location to the Company’s global customers, evaluating functions more efficiently performed through partnerships or
other outside relationships and reducing the Company’s overhead costs to meet or exceed industry benchmarks.
During the second quarter of fiscal 2008, the first quarter 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. The Company anticipates
that it will incur some level of restructure charges through the end of fiscal 2008 as it continues to implement these initiatives, but is currently unable to estimate
the aggregate amount of the charges.
This Current Report on Form 8-K contains forward-looking statements regarding the date of the TECH drawdown and future restructure charges.
Actual events or results may differ materially from those contained in the forward-looking statements. Please refer to the documents the Company files on a
consolidated basis from time to time with the Securities and Exchange Commission, specifically the Company's most recent Form 10-K and Form 10-Q. These
documents contain and identify important factors that could cause the actual results for the Company on a consolidated basis to differ materially from those
contained in our forward-looking statements (see Certain Factors). Although we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking
statements after the date of this report to conform to actual results.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed herewith:
Exhibit No. Description
99.1 Press Release issued on April 2, 2008
3.
4. SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MICRON TECHNOLOGY, INC.
/s/ D. Mark Durcan
Date: April 2, 2008 By:
Name: D. Mark Durcan
Title: President and Chief Operating Officer
5. INDEX TO EXHIBITS FILED WITH
THE CURRENT REPORT ON FORM 8-K DATED APRIL 2, 2008
Exhibit Description
99.1 Press Release issued on April 2, 2008
6. FOR IMMEDIATE RELEASE
Contacts: Kipp A. Bedard Daniel Francisco
Investor Relations Media Relations
kbedard@micron.com dfrancisco@micron.com
(208) 368-4400 (208) 368-5584
MICRON TECHNOLOGY, INC., REPORTS RESULTS FOR THE
SECOND QUARTER OF FISCAL 2008
BOISE, Idaho, April 2, 2008 – Micron Technology, Inc., (NYSE: MU) today announced results of operations for the company’s second quarter and first six months
of fiscal 2008, which ended February 28, 2008. Despite continued significant declines in average sales prices for the company’s primary products, the company
reported net sales of $1.4 billion for the second quarter of fiscal 2008 compared to net sales of $1.5 billion for the previous quarter. The company also generated
cash flow from operations during the second quarter of fiscal 2008 of $282 million and ended the quarter with cash and investments of $1.9 billion. As a result of
the company’s current market capitalization being below book value, the company was required under FASB Statement No. 142, “Goodwill and Other Intangible
Assets,” to record a non-cash charge of $463 million in the second quarter of fiscal 2008 to write off all the carrying amount of goodwill previously recognized in
the company’s memory segment. The goodwill write-off does not affect the company’s day-to-day business operations, cash balance or competitive position.
Reflecting the goodwill charge, the company reported a net loss for the second quarter of $1.01 per diluted share. On a non-GAAP basis, without the effect of the
charge, the company’s net loss for the second quarter would have been $0.41 per diluted share or $314 million. These results compare to a net loss of $262 million,
or $0.34 per diluted share, for the first quarter of fiscal 2008.
The company’s net sales declined 11 percent in the second quarter of fiscal 2008 compared to the immediately preceding quarter primarily due to lower selling
prices partially offset by increased production of memory products. Average selling prices for the company’s DRAM and NAND Flash memory products
decreased 15 percent and 30 percent, respectively, in the second quarter compared to the first quarter. Comparing the second quarter to the same quarter of the
previous fiscal year, average selling prices for the company’s DRAM and NAND Flash memory products decreased approximately 60 percent and 70 percent,
respectively.
The company achieved second quarter reductions in cost of goods sold per megabit of approximately 15 percent and 25 percent for DRAM and NAND Flash
memory products, respectively, compared to the first quarter of fiscal 2008. These reductions resulted from continuing advancements in our industry-leading
process technology and increased output from our 300mm operations.
The company had capital expenditures of $693 million during the second quarter bringing the expenditures for the first six months to $1.6 billion. The company
estimates capital expenditures aggregating between $2.5 billion and $3 billion for the 2008 fiscal year. In the third quarter of fiscal 2008, TECH Semiconductor, a
consolidated joint venture, entered into a $600 million credit facility to refinance its existing debt of $240 million and to finance future capital expenditures.
The company will host a conference call today at 2:30 p.m. MDT to discuss its financial results. The call, audio and slides will be available online at
www.micron.com. A webcast replay will be available on the company’s Web site until April 2, 2009. A taped audio replay of the conference call will also be
available at (706) 645-9291(conference number: 39996231) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on April 9, 2008.
Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron
manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge
computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To
learn more about Micron visit www.micron.com.
7. MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
Feb. 28, Nov. 29, Mar. 1, Feb. 28, Mar. 1,
2008 2007 2007 2008 2007
Net sales $ 1,359 $ 1,535 $ 1,427 $ 2,894 $ 2,957
Cost of goods sold (1) 1,402 1,530 1,070 2,932 2,158
Gross margin (43) 5 357 (38) 799
Selling, general and administrative 120 112 153 232 333
Research and development 180 163 243 343 426
Goodwill impairment (2) 463 -- -- 463 --
Restructure (3) 8 13 -- 21 --
Other operating (income) expense (4) (42) (23) (5) (65) (36)
Operating income (loss) (772) (260) (34) (1,032) 76
Interest income (expense), net 3 9 31 12 71
Other non-operating income (expense) (6) (1) 5 (7) 8
Income tax benefit (provision) (5) 4 (7) (6) (3) (15)
Noncontrolling interests in net income (6) (3) (48) (9) (77)
Net income (loss) $ (777) $ (262) $ (52) $ (1,039) $ 63
Earnings (loss) per share:
Basic $ (1.01) $ (0.34) $ (0.07) $ (1.35) $ 0.08
Diluted (1.01) (0.34) (0.07) (1.35) 0.08
Number of shares used in per share calculations:
Basic 772.4 771.9 768.7 772.2 767.9
Diluted 772.4 771.9 768.7 772.2 776.3
Reconciliation of GAAP to Non-GAAP Financial Measures (6)
Net income (loss):
On a GAAP basis $ (777) $ (262) $ (52) $ (1,039) $ 63
Goodwill impairment 463 -- -- 463 --
On a non-GAAP basis $ (314) $ (262) $ (52) $ (576) $ 63
Diluted earnings (loss) per share:
On a GAAP basis $ (1.01) $ (0.34) $ (0.07) $ (1.35) $ 0.08
Goodwill impairment 0.60 -- -- 0.60 --
On a non-GAAP basis $ (0.41) $ (0.34) $ (0.07) $ (0.75) $ 0.08
8. CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Feb. 28, Nov. 29, Aug. 30,
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.
(5) Income taxes for fiscal 2008 and 2007 primarily reflect taxes on the company’s non-U.S. operations and U.S. alternative minimum tax. The company has a
valuation allowance for its net deferred tax asset associated with its U.S. operations. Tax attributable to U.S. operations in fiscal 2008 and 2007 were
substantially offset by changes in the valuation allowance.
Effective at the beginning of the first quarter of fiscal 2008, the company adopted the provisions of FIN 48. In connection with the adoption of FIN 48, the
company increased its liability and decreased retained earnings by $1 million for net unrecognized tax benefits at August 31, 2007. Due to certain foreign
statutes of limitations which expired on December 31, 2007, the company recognized approximately $15 million of previously unrecognized tax benefits in the
second quarter of fiscal 2008. The company does not expect to recognize any additional previously unrecognized tax benefits during fiscal 2008.
(6) To supplement our consolidated financial statements presented on a GAAP basis, the company uses non-GAAP measures of net income and earnings per
share, which are adjusted to exclude goodwill impairment charges. Management does not consider these charges in evaluating the core operational activities
of the company. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the
company’s operating results across different time periods. These measures should be considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for or superior to GAAP results. The non-GAAP financial measures presented by the company may be different
than the non-GAAP financial measures presented by other companies.
(7) In the second quarter of fiscal 2008, the company’s TECH subsidiary borrowed $240 million against a credit facility at Singapore Interbank Offered Rate
9. (quot;SIBORquot;) plus 2.5%, subject to customary covenants. On March 31, 2008, TECH entered into a new credit facility that enables it to borrow up to $600 million
at SIBOR plus 2.5%, subject to customary covenants. Payments under the new facility are due in approximately equal installments over 13 quarters
commencing in May 2009. Commencing in May 2009, the amount available under the credit facility declines quarterly through May 2012. The company has
guaranteed approximately 73% of the outstanding facility, which will increase to 100% upon the occurrence of certain conditions.