Crucial 2012 Annual Report Download - page 83

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Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
For the year ended 2012 2011 2010
Beginning unrecognized tax benefits $ 121 $ 88 $ 1
Settlements with tax authorities (29)(2)(1)
Decreases related to tax positions from prior years (14)(3) —
Foreign currency translation increases (decreases) to tax positions (9) 6 —
Increases related to tax positions taken during current year 6 28 11
Increases related to tax positions from prior years 2 4 14
Unrecognized tax benefits acquired in current year — — 63
Ending unrecognized tax benefits $ 77 $ 121 $ 88
Included in the unrecognized tax benefits balance as of August 30, 2012, September 1, 2011 and September 2, 2010 were
$66 million, $113 million and $87 million, respectively, of unrecognized income tax benefits, which if recognized, would affect
our effective tax rate. In connection with the acquisition of Numonyx in 2010, we accrued a $66 million liability related to
uncertain tax positions on the tax years of Numonyx open to examination. We recorded an indemnification asset for a
significant portion of these unrecognized income tax benefits related to uncertain tax positions. We recognize interest and
penalties related to income tax matters within income tax expense. As of August 30, 2012, September 1, 2011 and September
2, 2010, accrued interest and penalties related to uncertain tax positions was $12 million, $16 million and $6 million,
respectively.
We are unable to reasonably estimate possible increases or decreases in uncertain tax positions that may occur within the
next 12 months due to the uncertainty of the timing of the resolution and/or closure on audits. However, we do not anticipate
any such change would be significant.
We currently operate in several tax jurisdictions where we have arrangements that allow us to compute our tax provision at
rates below the local statutory rates that expire in whole or in part at various dates through 2026. These arrangements
benefitted our tax provision in 2012, 2011 and 2010 by $52 million ($0.05 per diluted share), $72 million ($0.07 per diluted
share) and $69 million ($0.07 per diluted share), respectively.
We and our subsidiaries file income tax returns with the U.S. federal government, various U.S. states and various foreign
jurisdictions throughout the world. Our U.S. federal and state tax returns remain open to examination for 2008 through
2012. In addition, tax years open to examination in multiple foreign taxing jurisdictions range from 2005 to 2012. We are
currently under examination in various taxing jurisdictions in which we conduct business operations. We believe that adequate
amounts of taxes and related interest and penalties have been provided for, and any adjustments as a result of the examinations
are not expected to materially adversely affect our business, results of operations or financial condition.
Earnings Per Share
For the year ended 2012 2011 2010
Net income (loss) available to Micron shareholders – Basic $ (1,032) $ 167 $ 1,850
Net effect of assumed conversion of debt — — 93
Net income (loss) available to Micron shareholders – Diluted $ (1,032) $ 167 $ 1,943
Weighted-average common shares outstanding – Basic 991.2 988.0 887.5
Net effect of dilutive equity awards, escrow shares and assumed
conversion of debt — 19.5 163.2
Weighted-average common shares outstanding – Diluted 991.2 1,007.5 1,050.7
Earnings (loss) per share:
Basic $ (1.04) $ 0.17 $ 2.09
Diluted (1.04) 0.17 1.85