Crucial 2015 Annual Report Download - page 87

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Included in the unrecognized tax benefits balance as of September 3, 2015, August 28, 2014, and August 29, 2013 were
$53 million, $66 million, and $63 million, respectively, of unrecognized income tax benefits, which if recognized, would affect
our effective tax rate. The increase in unrecognized tax benefits in 2015 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 September 3, 2015, August 28, 2014, and August 29, 2013, the
amount accrued for interest and penalties related to uncertain tax positions was $16 million, $19 million, and $16 million,
respectively. The resolution of tax audits or lapses of statute of limitations could also reduce our unrecognized tax benefits.
Although 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 $67 million, including interest and penalties.
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 2011 through
2015. In addition, tax returns open to examination in multiple foreign taxing jurisdictions range from the years 2007 to
2015. 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 2015 2014 2013
Net income available to Micron shareholders – Basic $ 2,899 $ 3,045 $ 1,190
Dilutive effect related to equity method investment (3)(2) —
Net income available to Micron shareholders – Diluted $ 2,896 $ 3,043 $ 1,190
Weighted-average common shares outstanding – Basic 1,070 1,060 1,022
Dilutive effect of equity plans and convertible notes 100 138 35
Weighted-average common shares outstanding – Diluted 1,170 1,198 1,057
Earnings per share:
Basic $ 2.71 $ 2.87 $ 1.16
Diluted 2.47 2.54 1.13
Listed below are the potential common shares, as of the end of the periods shown, that could dilute basic earnings per
share in the future that were not included in the computation of diluted earnings per share because to do so would have been
antidilutive:
For the year ended 2015 2014 2013
Equity plans 18 7 40
Convertible notes 18 26 186
Our 2033 Notes and, to the extent our 2027 Notes and 2031 Notes were outstanding during the periods presented, contain
terms that upon conversion require us to settle the aggregate principal amount in cash and the remainder of our conversion
obligation amount in either shares of our common stock or cash, at our election. Our 2032 Notes and 2043 Notes, and, to the
extent our 2014 Notes were outstanding during the periods presented, contain terms that upon conversion provide us the option
to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due. It is our current intent to
settle the principal amount of our 2032 Notes and 2043 Notes in cash upon conversion. As a result of these conversion terms
and stated intent, the shares underlying the 2014 Notes, 2027 Notes, 2031 Notes, 2032 Notes, 2033 Notes, and 2043 Notes
were considered in diluted earnings per share for the periods they were outstanding under the treasury stock method. (See
"Debt" note.)