Crucial 2013 Annual Report Download - page 34

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ITEM 6. SELECTED FINANCIAL DATA
2013 2012 2011 2010 2009
(in millions except per share amounts)
Net sales $ 9,073 $ 8,234 $ 8,788 $ 8,482 $ 4,803
Gross margin 1,847 968 1,758 2,714 (440)
Operating income (loss) 236 (612) 761 1,612 (1,646)
Net income (loss) 1,194 (1,031) 190 1,900 (1,993)
Net income (loss) attributable to Micron 1,190 (1,032) 167 1,850 (1,882)
Diluted earnings (loss) per share $ 1.13 $ (1.04) $ 0.17 $ 1.85 $ (2.35)
Cash and short-term investments $ 3,101 $ 2,559 $ 2,160 $ 2,913 $ 1,485
Total current assets 8,911 5,758 5,832 6,333 3,344
Property, plant and equipment, net 7,626 7,103 7,555 6,601 7,089
Total assets 19,118 14,328 14,752 14,693 11,459
Total current liabilities 4,125 2,243 2,480 2,702 1,892
Long-term debt 4,452 3,038 1,861 1,648 2,379
Total Micron shareholders’ equity 9,142 7,700 8,470 8,020 4,953
Noncontrolling interests in subsidiaries 864 717 1,382 1,796 1,986
Total equity $ 10,006 $ 8,417 $ 9,852 $ 9,816 $ 6,939
On July 31, 2013, we completed our acquisition of 100% of the equity of Elpida Memory, Inc. ("Elpida") and 24%
ownership interest in Rexchip Electronics Corporation ("Rexchip"), a Taiwan corporation and manufacturing joint venture in
which Elpida and its subsidiaries have a 65% ownership interest. Elpida and Rexchip manufacture and sell DRAM products
for both mobile and computing (including desktop PCs, servers, notebooks and workstations) applications. The assets of
Elpida and its subsidiaries include, among others: a 300mm DRAM wafer fabrication facility located in Hiroshima, Japan; its
approximate 65% ownership interest in Rexchip, whose assets include a 300mm DRAM wafer fabrication facility located in
Taichung City, Taiwan; and a 100% ownership interest in Akita, whose assets include an assembly and test facility located in
Akita, Japan. As a result of the consummation of our acquisition of Elpida and the Rexchip shares, we own approximately 89%
of Rexchip's common stock. The total consideration paid for Elpida and Rexchip was $949 million and we recorded net assets
of $2,601 million and noncontrolling interests of $168 million in connection with the transaction. Because the fair value of the
net assets acquired less noncontrolling interests exceeded the consideration we paid, we recognized a gain on the acquisition of
$1,484 million in 2013. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial
Statements – Acquisition of Elpida Memory, Inc." note.)
We entered into a joint venture relationship 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 29, 2013. 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.