The document is a press release announcing Micron Technology's financial results for the third quarter of fiscal year 2006. It reports net income of $89 million on revenue of $1.3 billion for the quarter. Gross margin increased to 25% due to higher DRAM pricing and a shift to higher margin products like image sensors. Image sensor sales grew 34% and made up about 16% of revenue. The company also acquired Lexar Media for approximately $900 million in stock.
Uma Nova e espetacular ferramenta criada para os anunciante de amarelas internet ,onde atraves deste pacote poderão visualizar o listado de visitantes em seus anuncios, com nome indereço e e-mail ,para posteriores fechamento de negocios..
Uma Nova e espetacular ferramenta criada para os anunciante de amarelas internet ,onde atraves deste pacote poderão visualizar o listado de visitantes em seus anuncios, com nome indereço e e-mail ,para posteriores fechamento de negocios..
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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
1. ************************************************************************************************
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* REGISTRANT TRANSMISSION AUTHORIZATION *
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* [ ] I have reviewed the submission file and find it to be correct and complete. *
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* links to be correct. *
* [ ] I authorize Merrill Corporation to transmit this filing to the SEC. *
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<SUBMISSION>
<TYPE> 8-K
<FILER>
<CIK> 0000723125
<CCC> xxxxxxx
</FILER>
<ITEMS> 2.02
<ITEMS> 9.01
<PERIOD> 06/28/2006
<SROS> NYSE
<SUBMISSION-CONTACT>
<NAME> EDGAR Advantage Service Team
<PHONE> (800) 688 - 1933
</SUBMISSION-CONTACT>
3. 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
June 28, 2006
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):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))
4. Item 2.02. Results of Operations and Financial Condition.
On June 28, 2006, the Company announced its financial results for the quarter ended June 1, 2006. 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 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed herewith:
Exhibit No. Description
99.1 Press Release issued on June 28, 2006
5. 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.
Date: June 28, 2006 By: /s/ W. G. STOVER, JR.
Name: W. G. Stover, Jr.
Title: Vice President of Finance and
Chief Financial Officer
3
6. INDEX TO EXHIBITS FILED WITH
THE CURRENT REPORT ON FORM 8-K DATED JUNE 28, 2006
Exhibit Description
99.1 Press Release issued on June 28, 2006
4
8. Exhibit 99.1
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 THIRD QUARTER OF FISCAL 2006
BOISE, Idaho, June 28, 2006 — Micron Technology, Inc., (NYSE: MU) today announced results of operations for its third
quarter of fiscal 2006, ended June 1, 2006. For the quarter, the Company had net income of $89 million, or $0.12 per diluted share, on
net sales of $1.3 billion. For the first nine months of fiscal 2006, the Company reported net income of $344 million, or $0.49 per
diluted share, on net sales of $3.9 billion.
The Company’s gross margin increased from 19 percent in the second quarter to 25 percent in the third quarter due to increases
in DRAM pricing and production shifts to higher margin products including CMOS image sensors. Net sales of CMOS image sensors
increased 34 percent in the third quarter of fiscal 2006 while net sales of Memory products increased slightly. Imaging sales grew to
approximately 16 percent of the Company’s net sales for the third quarter of fiscal 2006 as a result of strong customer demand for
Micron’s industry-leading Digital ClarityTM products.
Steven R. Appleton, Micron’s chairman, CEO and president, commented, “Micron continues to focus its resources on higher
margin product offerings in markets outside the traditional PC DRAM arena. For the first time, as a result of our successful
diversification efforts, sales of products other than PC DRAM devices comprised a majority of Micron’s sales.”
In the third quarter, megabit average selling prices for DDR and DDR2 memory products increased approximately 20 percent.
Megabit sales of these products decreased approximately 15 percent compared to the second quarter as production resources were
shifted to Imaging and NAND flash memory products. Sales of NAND flash memory products represented five percent of the
Company’s total net sales in the third quarter of fiscal 2006.
At the end of the third quarter of fiscal 2006, the Company had $2.8 billion in cash and short-term investments. Approximately
$748 million of the cash and short-term investments are held at, and anticipated to be used in the near term by, IM Flash and TECH
Semiconductor. During the third quarter, the Company generated $384 million in cash from operations and invested $417 million in
capital
9. expenditures. The Company anticipates capital additions for fiscal year 2006 to be approximately $2.2 billion.
On June 21, 2006, the Company acquired all of the outstanding common stock of Lexar Media, Inc. (“Lexar”) in a stock-for-
stock merger. Under the terms of the merger agreement, each outstanding share of Lexar common stock was eligible to receive 0.5925
shares of common stock of the Company. The Company issued approximately 50 million shares of common stock to former
shareholders of Lexar. The aggregate purchase price reflected in the merger, including the value of stock options converted from
Lexar’s employee stock option plan, is expected to be approximately $900 million. The Company’s fourth fiscal quarter revenue is not
expected to increase measurably as a result of the Lexar acquisition as the Company will not recognize revenue from Lexar products
in the distribution channel at the June 21, 2006 acquisition date.
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 June 26, 2007. A taped
audio replay of the conference call will also be available at (973) 341-3080 (confirmation code: 7520673) beginning at 5:30 p.m.
MDT today and continuing until 5:30 p.m. MDT on July 7, 2006.
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 Technology, Inc., visit
www.micron.com.
This press release contains forward-looking statements that involve risks and uncertainties concerning the Company’s level of
capital additions for fiscal 2006 and the effect of the Lexar merger on the Company’s revenue for the fourth quarter of fiscal 2006.
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 press release to conform to actual results.
10. MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
Nine Months Ended
3rd Qtr. 2nd Qtr. 3rd Qtr.
Jun. 1, Mar. 2, Jun. 2, Jun. 1, Jun. 2,
2006 2006 2005 2006 2005
Net sales $ 1,312.3 $ 1,225.0 $ 1,054.2 $ 3,899.1 $ 3,622.4
Cost of goods sold 982.5 989.7 967.6 3,022.9 2,758.8
Gross margin 329.8 235.3 86.6 876.2 863.6
Selling, general and administrative 113.2 107.8 88.6 316.3 260.3
Research and development 167.7 159.5 153.4 492.7 453.2
Other operating (income) expense (1) (219.2 ) (25.3 )
1.5 (229.8) (21.1)
Operating income (loss) 47.4 187.2 (130.1 ) 297.0 171.2
Interest income (expense), net 27.0 12.3 (3.8 ) 39.6 (13.3)
Other non-operating income (expense) 3.4 1.0 (1.3 ) 4.5 (2.5)
Income tax benefit (provision) (2) (6.5) (7.3 ) 7.3 (14.0) (10.5)
Noncontrolling interests in net loss 17.2 — — 17.2 —
Net income (loss) 193.2 $ (127.9 ) $
$ 88.5 $ 344.3 $ 144.9
Earnings (loss) per share:
Basic $ 0.12 $ 0.29 $ (0.20 ) $ 0.51 $ 0.22
Diluted 0.12 0.27 (0.20 ) 0.49 0.22
Number of shares used in per share calculations:
Basic 708.6 661.5 648.2 673.4 647.1
Diluted 720.1 714.6 648.2 713.8 701.4
11. CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Jun. 1, Mar. 2, Sep. 1,
2006 2006 2005
Cash and short-term investments $ 2,830.0 $ 2,584.8 $ 1,290.4
Receivables (3) 805.7 926.7 794.4
Inventories 799.7 686.0 771.5
Total current assets 4,520.9 4,286.0 2,925.6
Property, plant and equipment, net 5,438.1 4,711.9 4,683.8
Restricted cash (4) 14.9 14.4 50.2
Total assets 10,300.7 9,377.4 8,006.4
Accounts payable and accrued expenses 951.9 910.4 752.5
Current portion of long-term debt 180.4 148.5 147.0
Total current liabilities 1,279.0 1,204.8 978.6
Long-term debt (4) 338.8 312.1 1,020.2
Noncontrolling interests in subsidiaries 1,112.4 498.6 —
Total shareholders’ equity 7,086.8 6,954.2 5,846.8
Nine Months Ended
Jun. 1, Jun. 2,
2006 2005
Net cash provided by operating activities $ 1,688.7 $ 933.4
Net cash used for investing activities (1,013.4) (1,004.6)
Net cash provided by financing activities 267.9 55.4
Depreciation and amortization 921.1 949.6
Expenditures for property, plant and equipment (790.1) (921.6)
Payments on equipment purchase contracts (150.9) (170.8)
Noncash equipment acquisitions on contracts payable and capital leases 225.3 346.2
(1) Other operating income for the second quarter of fiscal 2006 includes $230.0 million of net proceeds from Intel Corporation
(“Intel”) for the sale of the Company’s existing NAND flash memory designs and certain related technology to Intel and the
Company’s acquisition of a perpetual, paid-up license to use and modify such designs. Other operating expense for the second
quarter of fiscal 2006 includes $9.2 million from losses net of gains on write-downs and disposals of semiconductor equipment.
Other operating income for the third quarter of fiscal 2005 includes gains net of losses on write-downs and disposals of
semiconductor equipment of $14.5 million and net gains of $12.2 million from changes in currency exchange rates. Other
operating income for the first nine months of fiscal 2005 includes gains net of losses on write-downs and disposals of
semiconductor equipment of $13.1 million and $12.0 million in receipts from the U.S. government in connection with anti-
dumping tariffs.
12. (2) Income taxes for 2006 and 2005 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. The provision for
taxes on U.S. operations in 2006 and 2005 was substantially offset by reductions in the valuation allowance. Until such time as
the Company utilizes a significant portion of its U.S. net operating loss carryforwards and unused tax credits, the provision for
taxes on the Company’s U.S. operations is expected to be substantially offset by reductions in the valuation allowance. As of
June 1, 2006, the Company had aggregate U.S. tax net operating loss carryforwards of $1.6 billion and unused U.S. tax credit
carryforwards of $158.1 million. The Company also has unused state tax net operating loss carryforwards of $1.3 billion and
unused state tax credits of $145.9 million. Substantially all of the net operating loss carryforwards expire in 2022 to 2025 and
substantially all of the tax credit carryforwards expire in 2013 to 2026. During the second quarter of fiscal 2006, the Company
utilized approximately $1.0 billion of its U.S. and state tax net operating loss carryforwards as a result of the IM Flash and related
transactions.
(3) On February 14, 2006, the Company terminated its outstanding call spread options covering a total of approximately 53.7 million
shares of its common stock (“Call Spread Options”). The Company originally entered into the Call Spread Options in connection
with its issuance of the Convertible Subordinated Notes. The Company had a receivable of $171.1 million as of the end of the
second quarter of fiscal 2006 for the settlement of the Call Spread Options, which was received in the third quarter of fiscal 2006.
The settlement was accounted for as a capital transaction.
(4) In the second quarter of fiscal 2006, the Company’s $632.5 million 2.5% Convertible Subordinated Notes (“Notes”) were
converted into 53.7 million shares of common stock. In addition, the Company’s related interest rate swap terminated by its terms
on February 6, 2006 and, as a result, $34.8 million pledged as collateral for the swap became unrestricted. Unamortized issuance
costs of $9.5 million were charged to additional capital in the second quarter of fiscal 2006 in connection with the conversion of
the Notes.
Stock-Based Compensation Expense: The Company adopted Statement of Financial Accounting Standards No. 123(R),
“Share-Based Payment,” in the beginning of its fiscal 2006 which addresses accounting for transactions in which the Company obtains
employee services in share-based payment transactions. In accordance therewith, total compensation costs for the Company’s stock
plans aggregated $17.8 million for the first nine months of fiscal 2006, including $5.6 million charged to cost of goods sold, $7.5
million in selling, general and administrative and $4.7 million in research and development. The Company did not record any income
significant tax benefit for share-based compensation arrangements in the first nine months of fiscal 2006. Share-based compensation
cost capitalized and remaining in inventory was $1.2 million at the end of the third quarter of fiscal 2006.
IM Flash Technologies, LLC (“IMFT”): IMFT, which began operations on January 6, 2006, is a joint venture between the
Company and Intel Corporation and was formed to manufacture NAND flash memory products for the exclusive benefit of its
partners. In connection with the formation of IMFT, the Company contributed land and facilities in Lehi, Utah, a fully-paid lease of a
portion of the Company’s manufacturing facility in Manassas, Virginia, a wafer supply agreement to be supported by the Company’s
operations located in Boise, Idaho and $250 million in cash. The aggregate fair value of these contributions was $1.245 billion. Intel
contributed $1.196 billion in cash and notes to IMFT. As a result of these contributions, the Company owns 51% and Intel owns 49%
of IMFT. The parties share the output of IMFT generally in proportion to their ownership in IMFT.
13. Under the terms of the lease, IMFT has the use of approximately 50% of the Company’s manufacturing facility in Manassas,
Virginia for a period of 10 years. IMFT will purchase and install manufacturing equipment into the leased facility which will be
operated and maintained by the Company. The cost of operating and maintaining the equipment is charged to IMFT. Under the terms
of the wafer supply agreement, the Company will manufacture wafers for IMFT in its Boise, Idaho facility for a period of five years.
Such wafers will be sold to IMFT at prices equal to the Company’s variable cost to manufacture, subject to certain cost and volume
performance metrics.
IMFT manufactures NAND flash memory products based on NAND flash designs developed by the Company and Intel and
licensed to the Company. Product design and other research and development costs for NAND flash are shared equally among the
Company and Intel. In the second quarter of 2006, the Company received net proceeds of $230.0 million from Intel for the sale of the
Company’s existing NAND flash memory designs and certain related technology and the Company’s acquisition of a perpetual, paid-
up license to use and modify such designs.
As part of the transaction, the Company and Intel entered into various service contracts with IMFT under which they will provide
operational and administrative support services. The Company and Intel will generally charge IMFT for costs of providing such
services.
The Company has determined that IMFT is a variable interest entity as defined in FASB Interpretation No. 46(R), “Consolidation
of Variable Interest Entities,” (“FIN 46(R)”) and that the Company is the primary beneficiary of the venture. Accordingly, IMFT’s
financial results are included in the accompanying consolidated financial statements of the Company. Upon consolidation, all amounts
pertaining to Intel’s interests in IMFT are reported as noncontrolling interest.
The Company is obligated to provide certain NAND flash memory products to Apple Computer Inc. (“Apple”) until
December 31, 2010. In connection with the obligation, Apple made a prepayment to the Company of $250.0 million in the second
quarter of fiscal 2006.
TECH Semiconductor Singapore Pte Ltd (“TECH”): Since 1998, the Company has participated in TECH, a semiconductor
memory manufacturing joint venture in Singapore among the Company, the Singapore Economic Development Board (“EDB”),
Canon Inc. and Hewlett-Packard Company. On March 3, 2006, certain shareholders of TECH contributed approximately $260 million
in cash as additional capital to TECH, of which the Company’s contribution was approximately $130 million. Following the
contribution, the Company has an approximate 43% ownership interest in TECH.
Effective March 3, 2006, the Company entered into an agreement with EDB, subject to EDB’s contribution of additional amounts
to TECH, whereby EDB granted the Company an option to purchase from EDB, and the Company granted EDB an option to sell to
the Company, EDB’s shares of TECH common stock. The Company’s option to purchase EDB’s shares in TECH is exercisable at any
time prior to October 1, 2009. EDB’s option to put its shares in TECH to the Company is exercisable from March 3, 2008, until
October 1, 2010. If either party exercises its option, the Company expects that it would own approximately 73% of the outstanding
shares of TECH. As a result of the put option agreement noted above, the Company concluded it is the primary beneficiary of TECH
as defined by FIN 46(R) and, therefore, began consolidating TECH’s financial results as of the beginning of the Company’s third
quarter of fiscal 2006.
14. The Company’s basis in TECH of $133.6 million was allocated to the assets and liabilities of TECH based on their estimated fair
values. In connection with the consolidation of TECH, the Company recorded total assets of $990.1 million, including cash of $319.0
million and property, plant and equipment of $562.0 million; and total liabilities of $410.5 million, including debt and capital lease
obligations totaling $338.8 million.
MP Mask Technology Center, LLC (“MP Mask”): In the third quarter of fiscal 2006, the Company formed a joint venture,
MP Mask, with Photronics, Inc. to produce photomasks for leading-edge and advanced next generation semiconductors. Micron
contributed its existing reticle manufacturing operation into the venture. In exchange for a 49.99% interest in MP Mask, Photronics
paid cash and issued notes to Micron aggregating $63 million. Micron and Photronics also entered into supply arrangements wherein
Micron is expected to purchase a substantial majority of the reticles produced by MP Mask. In connection with the joint venture,
Micron received $72 million in exchange for entering into a license agreement with Photronics, which will be recognized over the
term of the 10-year agreement. The financial results of MP Mask are included in the consolidated financial results of Micron.
Lexar Media, Inc. (“Lexar”): On June 21, 2006, the Company acquired Lexar, a designer, developer, manufacturer and
marketer of flash memory products, in a stock for stock merger. Pursuant to the terms of a merger agreement, each issued and
outstanding share of common stock of Lexar was converted into 0.5925 shares of Micron’s common stock (the “Exchange Ratio”),
and each issued, outstanding and unexercised Lexar employee stock option with an exercise price per share of $9.54 or less was
converted into a Micron employee stock option using the Exchange Ratio. In connection therewith, the Company issued
approximately 50 million shares of common stock and approximately 7 million stock options with an aggregate value of
approximately $900 million.