Crucial 2014 Annual Report Download - page 93

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91
Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
For the year ended 2014 2013 2012
Beginning unrecognized tax benefits $ 78 $ 77 $ 121
Increases related to tax positions taken during current year 152 4 6
Foreign currency translation increases (decreases) to tax positions 1 4 (9)
Settlements with tax authorities (1)(8)(29)
Decreases related to tax positions from prior years (1) — (14)
Lapse of statute of limitations (1) — —
Increases related to tax positions from prior years — — 2
Unrecognized tax benefits acquired in current year — 1 —
Ending unrecognized tax benefits $ 228 $ 78 $ 77
Included in the unrecognized tax benefits balance as of August 28, 2014, August 29, 2013 and August 30, 2012 were
$66 million, $63 million and $66 million, respectively, of unrecognized income tax benefits, which if recognized, would affect
our effective tax rate. The increase in unrecognized tax benefits in fiscal 2014 primarily related to transfer pricing and other
matters which were substantially offset by changes in our deferred tax asset valuation allowance. We recognize interest and
penalties related to income tax matters within income tax expense. As of August 28, 2014, August 29, 2013 and August 30,
2012, the amount accrued for interest and penalties related to uncertain tax positions was $19 million, $16 million and $12
million, respectively. The resolution of tax audits or lapses of statute of limitations could reduce our unrecognized tax benefits.
Although each matter is individually insignificant and the timing of final resolution is uncertain, the estimated potential
reduction in our unrecognized tax benefits in the next 12 months ranges from $0 to $77 million, including interest and
penalties.
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 2014, 2013 and 2012 by $286 million ($0.24 per diluted share), $141 million ($0.13 per diluted
share) and $52 million ($0.05 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 2010 through
2014. In addition, tax returns open to examination in multiple foreign taxing jurisdictions range from the years 2005 to
2014. We believe that adequate amounts of taxes and related interest and penalties have been provided for, and any
adjustments as a result of examinations are not expected to materially adversely affect our business, results of operations or
financial condition.
Earnings Per Share
For the year ended 2014 2013 2012
Net income (loss) available to Micron shareholders – Basic $ 3,045 $ 1,190 $ (1,032)
Dilutive effect related to equity method investment (2) — —
Net income (loss) available to Micron shareholders – Diluted $ 3,043 $ 1,190 $ (1,032)
Weighted-average common shares outstanding – Basic 1,060 1,022 991
Dilutive effect of equity plans and convertible notes 138 35 —
Weighted-average common shares outstanding – Diluted 1,198 1,057 991
Earnings (loss) per share:
Basic $ 2.87 $ 1.16 $ (1.04)
Diluted 2.54 1.13 (1.04)