Crucial 2012 Annual Report Download - page 28

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ITEM 6. SELECTED FINANCIAL DATA
2012 2011 2010 2009 2008
(in millions)
Net sales $ 8,234 $ 8,788 $ 8,482 $ 4,803 $ 5,841
Gross margin 968 1,758 2,714 (440)(55)
Operating income (loss) (618) 755 1,589 (1,676)(1,595)
Net income (loss) (1,031) 190 1,900 (1,993)(1,665)
Net income (loss) attributable to Micron (1,032) 167 1,850 (1,882)(1,655)
Diluted earnings (loss) per share (1.04) 0.17 1.85 (2.35)(2.14)
Cash and short-term investments 2,559 2,160 2,913 1,485 1,362
Total current assets 5,758 5,832 6,333 3,344 3,779
Property, plant and equipment, net 7,103 7,555 6,601 7,089 8,819
Total assets 14,328 14,752 14,693 11,459 13,432
Total current liabilities 2,243 2,480 2,702 1,892 1,598
Long-term debt 3,038 1,861 1,648 2,379 2,106
Total Micron shareholders’ equity 7,700 8,470 8,020 4,953 6,525
Noncontrolling interests in subsidiaries 717 1,382 1,796 1,986 2,865
Total equity 8,417 9,852 9,816 6,939 9,390
We partnered with Intel to form IMFT in 2006 and IMFS in 2007 (collectively "IM Flash") to manufacture NAND Flash
memory products for the exclusive use of the members. We have owned 51% of IMFT from inception through August 30,
2012. Our ownership percentage of IMFS had increased from 51% at inception to 82% as of April 6, 2012 due to our making a
series of contributions that were not fully matched by Intel. On April 6, 2012, we entered into a series of agreements with Intel
to restructure IM Flash. We acquired Intel's remaining 18% interest in IMFS for $466 million. In addition, we acquired
IMFT's assets located at our Virginia wafer fabrication facility, for which Intel received a distribution from IMFT of $139
million. For both transactions, the amounts Intel received approximated the book values of Intel's interests in the assets
acquired. We consolidate IM Flash and report Intel's ownership interests as noncontrolling interests in subsidiaries. (See "Item
8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Consolidated Variable Interest
Entities – IM Flash" note.)
On May 7, 2010, we acquired Numonyx Holdings B.V. ("Numonyx"), which manufactured and sold primarily NOR Flash
and NAND Flash memory products. The total fair value of the consideration paid for Numonyx was $1,112 million and
consisted of 137.7 million shares of our common stock issued to the Numonyx shareholders and 4.8 million restricted stock
units issued to employees of Numonyx. In connection with the acquisition, we recorded net assets of $1,549 million. Because
the fair value of the net assets acquired exceeded the purchase price, we recognized a gain on the acquisition of $437 million in
2010. In addition, we recognized a $51 million income tax benefit in connection with the acquisition. (See "Item 8. Financial
Statements and Supplementary Data – Notes to Consolidated Financial Statements – Numonyx" note.)
In the first quarter of 2009, we acquired a noncontrolling interest in Inotera, a publicly-traded DRAM manufacturer in
Taiwan. In connection therewith, we entered into a supply agreement with Inotera to purchase 50% of Inotera’s wafer
production capacity and substantially began purchasing product in the fourth quarter of 2009. As of August 30, 2012, our
ownership interest was 39.7%. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial
Statements – Equity Method Investments – Inotera" note.)
In 2008 through the 2011, we acquired in a series of transactions the noncontrolling interests in TECH Semiconductor
Singapore Pte. Ltd. ("TECH"). (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial
Statements – TECH Semiconductor Singapore Pte. Ltd.")
(See "Item 1A. Risk Factors" and "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements.")