| 2nd Qtr. | 1st Qtr. | 2nd Qtr. | Six Months Ended | |||||||||||||||||
|
March 3,
2016 |
December 3,
2015 |
March 5,
2015 |
March 3,
2016 |
March 5,
2015 | ||||||||||||||||
| Loss from changes in currency exchange rates | $ | (5 | ) | $ | (3 | ) | $ | (6 | ) | $ | (8 | ) | $ | (27 | ) | |||||
| Loss on restructure of debt | — | (1 | ) | — | (1 | ) | (30 | ) | ||||||||||||
| Other | (1 | ) | — | — | (1 | ) | 2 | |||||||||||||
| $ | (6 | ) | $ | (4 | ) | $ | (6 | ) | $ | (10 | ) | $ | (55 | ) | ||||||
During the first quarter of fiscal 2016, the company recognized a loss of $1 million on the repurchase of $57 million in aggregate principal amount of 2033E Notes for $94 million in cash. In the first six months of fiscal 2015, the company recognized losses of $30 million from transactions to restructure its debt, including conversions, settlements and repurchases of convertible notes, and the early repayment of a note.
(2) Income taxes included a provision related to changes in amounts of net deferred tax assets associated with the company's MMJ and MMT operations of $10 million for the second quarter of fiscal 2016, $22 million for the first quarter of fiscal 2016, and $33 million for the second quarter of fiscal 2015. Income taxes for the first quarter of fiscal 2016 also included a benefit of $41 million from business acquisition activities. Remaining taxes for fiscal 2016 and 2015 primarily reflect taxes on the company's other non-U.S. operations. The company has a full valuation allowance for its net deferred tax asset associated with its U.S. operations. Income taxes on U.S. operations for fiscal 2016 and 2015 were substantially offset by changes in the valuation allowance.
(3) In the second quarter of fiscal 2016, the company recorded capital lease obligations aggregating $424 million related to equipment sale-leaseback transactions at a weighted-average effective interest rate of 2.7%, payable in periodic installments through December 2020. In the first quarter of fiscal 2016, the company drew the remaining $174 million of financing under a term loan agreement, collateralized by certain property, plant, and equipment.
| MICRON TECHNOLOGY, INC. | ||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||
| (in millions except per share amounts) | ||||||||||
| 2nd Qtr. | 1st Qtr. | |||||||||
|
March 3,
2016 |
December 3,
2015 | |||||||||
| GAAP net income (loss) attributable to Micron | $ | (97 | ) | $ | 206 | |||||
| Non-GAAP adjustments: | ||||||||||
| Restructure and asset impairments | 1 | 15 | ||||||||
| Amortization of debt discount and other costs | 31 | 33 | ||||||||
| Loss on restructure of debt | — | 1 | ||||||||
| (Gain) loss from changes in currency exchange rates | 5 | 3 | ||||||||
| Estimated tax effects of above items | (1 | ) | 2 | |||||||
| Non-cash taxes from MMJ, MMT, and Inotera | 13 | 30 | ||||||||
| Non-cash taxes from business acquisition activities | — | (41 | ) | |||||||
| Total non-GAAP adjustments | 49 | 43 | ||||||||
| Non-GAAP net income (loss) attributable to Micron | $ | (48 | ) | $ | 249 | |||||
| Number of shares used in diluted per share calculations: | ||||||||||
| GAAP | 1,036 | 1,085 | ||||||||
| Effect of capped calls | — | (50 | ) | |||||||
| Non-GAAP | 1,036 | 1,035 | ||||||||
| Diluted earnings (loss) per share: | ||||||||||
| GAAP | $ | (0.09 | ) | $ | 0.19 | |||||
| Effects of above | 0.04 | 0.05 | ||||||||
| Non-GAAP | $ | (0.05 | ) | $ | 0.24 | |||||
