Crucial 2014 Annual Report Download - page 30

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ITEM 6. SELECTED FINANCIAL DATA
2014 2013 2012 2011 2010
(in millions except per share amounts)
Net sales $ 16,358 $ 9,073 $ 8,234 $ 8,788 $ 8,482
Gross margin 5,437 1,847 968 1,758 2,714
Operating income (loss) 3,087 236 (612) 761 1,612
Net income (loss) 3,079 1,194 (1,031) 190 1,900
Net income (loss) attributable to Micron 3,045 1,190 (1,032) 167 1,850
Diluted earnings (loss) per share 2.54 1.13 (1.04) 0.17 1.85
Cash and short-term investments 4,534 3,101 2,559 2,160 2,913
Total current assets 10,245 8,911 5,758 5,832 6,333
Property, plant and equipment, net 8,682 7,626 7,103 7,555 6,601
Total assets 22,498 19,118 14,328 14,752 14,693
Total current liabilities 4,811 4,125 2,243 2,480 2,702
Long-term debt 4,955 4,452 3,038 1,861 1,648
Redeemable convertible notes 57 — — — —
Total Micron shareholders’ equity 10,771 9,142 7,700 8,470 8,020
Noncontrolling interests in subsidiaries 802 864 717 1,382 1,796
Total equity 11,573 10,006 8,417 9,852 9,816
On July 31, 2013, we completed the MMJ Acquisition, in which we acquired Elpida, now known as MMJ, and a
controlling interest in Rexchip, now known as MMT. The MMJ Group's products include mobile DRAM targeted to mobile
phones and tablets and computing DRAM targeted to desktop PCs, servers, notebooks and workstations. The MMJ Acquisition
included a 300mm DRAM wafer fabrication facility located in Hiroshima, Japan, a 300mm DRAM wafer fabrication facility in
Taichung City, Taiwan and an assembly and test facility located in Akita, Japan. In connection with the MMJ Acquisition, we
recorded net assets of $2.60 billion, noncontrolling interests of $168 million and a gain on the transaction of $1.48 billion in
2013. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Micron
Memory Japan, Inc." note.)
We entered into a joint venture relationship with Intel to form IMFT in 2006 and IMFS in 2007 to manufacture NAND
Flash memory products for the exclusive use of the members. We have owned 51% of IMFT from inception through
August 28, 2014. Our ownership percentage of IMFS had increased from 51% at inception to 82% as of April 6, 2012 due to a
series of contributions by us that were not fully matched by Intel. On April 6, 2012, we entered into a series of agreements with
Intel to restructure IM Flash, in which 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 – Equity – Noncontrolling
Interests in Subsidiaries – IM Flash" note.)
On May 7, 2010, we acquired Numonyx, which manufactured and sold primarily NOR Flash and NAND Flash memory
products. The total fair value of the consideration paid for Numonyx was $1.11 billion and consisted of 138 million shares of
our common stock issued to the Numonyx shareholders and 5 million restricted stock units issued to employees of Numonyx.
In connection with the acquisition, we recorded net assets of $1.55 billion. 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.