Crucial 2011 Annual Report Download - page 28

ITEM 6. SELECTED FINANCIAL DATA
Amounts and balances in the table below have been adjusted for the retrospective application of new accounting standards for noncontrolling
interests and certain convertible debt instruments.
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 the third quarter of 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 Memories, Inc. ("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 September 1, 2011, our ownership interest was
29.7%. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Equity Method Investments –
Inotera and MeiYa DRAM joint ventures with Nanya" note.)
We have two joint ventures with Intel Corporation: IM Flash Technologies, LLC ("IMFT"), formed in January, 2006, and IM Flash Singapore
LLP ("IMFS"), formed in February, 2007 (collectively "IM Flash"), to manufacture NAND Flash memory products for the exclusive benefit of the
partners. As of September 1, 2011, we owned an approximate 51% interest in IMFT and an approximate 86% interest in IMFS with the remaining
interests held by Intel. Our ownership interest in IMFS has increased from 51% prior to the second quarter of 2010 to 86% on September 1, 2011
as Intel did not match our capital contributions. On September 26, 2011, Intel participated in a capital call of IMFS by contributing $131 million.
After that capital call, our ownership interest in IMFS was reduced to 82%. 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 – NAND Flash joint venture with Intel" note.)
In the third quarter of 2007 through the second quarter of 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" note.)
(See "Item 1A. Risk Factors" and "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements.")
27
2011 2010 2009 2008 2007
(in millions)
Net sales
$
8,788
$
8,482
$
4,803
$
5,841
$
5,688
Gross margin
1,758
2,714
(440
)
(55
)
1,078
Operating income (loss)
755
1,589
(1,676
)
(1,595
)
(280
)
Net income (loss)
190
1,900
(1,993
)
(1,665
)
(209
)
Net income (loss) attributable to Micron
167
1,850
(1,882
)
(1,655
)
(331
)
Diluted earnings (loss) per share
0.17
1.85
(2.35
)
(2.14
)
(0.43
)
Cash and short-term investments
2,160
2,913
1,485
1,362
2,616
Total current assets
5,832
6,333
3,344
3,779
5,234
Property, plant and equipment, net
7,555
6,601
7,089
8,819
8,279
Total assets
14,752
14,693
11,459
13,432
14,810
Total current liabilities
2,480
2,702
1,892
1,598
2,026
Long-term debt
1,861
1,648
2,379
2,106
1,597
Total Micron shareholders’ equity
8,470
8,020
4,953
6,525
8,135
Noncontrolling interests in subsidiaries
1,382
1,796
1,986
2,865
2,607
Total equity
9,852
9,816
6,939
9,390
10,742