Crucial 2013 Annual Report Download - page 106

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105
Quarterly Financial Information (Unaudited)
(in millions except per share amounts)
2013 Fourth
Quarter Third
Quarter Second
Quarter First
Quarter
Net sales $ 2,843 $ 2,318 $ 2,078 $ 1,834
Gross margin 708 556 366 217
Operating income (loss) 207 149 (23)(97)
Net income (loss) 1,710 43 (284)(275)
Net income (loss) attributable to Micron 1,708 43 (286)(275)
Earnings (loss) per share:
Basic $ 1.65 $ 0.04 $ (0.28) $ (0.27)
Diluted 1.51 0.04 (0.28)(0.27)
The results of operations for the fourth quarter of 2013 include a gain of $1,484 million for the acquisition of Elpida. The
fourth quarter of 2013 includes Elpida's results of operation from the July 31, 2013 acquisition date. (See "Acquisition of
Elpida" note.)
The results of operations for the fourth quarter of 2013 include a gain of $48 million from the issuance of shares by
Inotera, which reduced our ownership interest from 39.7% to 35.5%. (See "Equity Method Investment - Inotera" note.)
The results of operations for the fourth, third, second and first quarters of 2013 include losses of $3 million, $47 million,
$120 million and $58 million, respectively, for the Elpida Acquisition Hedges. (See "Derivatives - Elpida Acquisition Hedges"
note.)
In 2013 we took action to dispose of 200mm wafer manufacturing facilities and optimize operations including our
workforce. The results of operations for the fourth, third and second quarters of 2013 include charges of $32 million, $55
million and $60 million, respectively, for the restructure and asset impairments. The results of operations for the first quarter of
2013 included a credit of $21 million for restructure activities. (See "Restructure and Asset Impairments" note.)
The results of operations in the second quarter of 2013 included a loss of $31 million loss on extinguishment of debt. (See
"Debt - Debt Restructure" note.)
2012 Fourth
Quarter Third
Quarter Second
Quarter First
Quarter
Net sales $ 1,963 $ 2,172 $ 2,009 $ 2,090
Gross margin 219 234 210 305
Operating loss (149)(188)(204)(71)
Net loss (242)(320)(282)(187)
Net loss attributable to Micron (243)(320)(282)(187)
Loss per share:
Basic $ (0.24) $ (0.32) $ (0.29) $ (0.19)
Diluted (0.24)(0.32)(0.29)(0.19)
As a result of the ongoing challenging global environment in the solar industry and unfavorable worldwide supply and
demand conditions, on May 25, 2012, the Board of Directors of Transform approved a liquidation plan. As a result of the
liquidation plan, we recognized a charge of $69 million in the third quarter of 2012. (See "Equity Method Investment - Other -
Transform" note.)
On March 23, 2012, we entered into a settlement agreement with Oracle pursuant to which we agreed to make a payment
of $58 million to Oracle for a settlement and full release of all claims and a dismissal with prejudice of their suit against us.
The settlement amount was accrued and charged to operations in the second quarter of 2012.