Quarterly Financial Information

12 Months Ended

Aug. 28, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

Quarterly Financial Information (Unaudited)

(in millions except per share amounts)

2014	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Net sales	$	4,227	$	3,982	$	4,107	$	4,042
Gross margin	1,385		1,368		1,403		1,281
Operating income	828		839		869		551
Net income	1,151		806		741		381
Net income attributable to Micron	1,150		806		731		358
Earnings per share:
Basic	$	1.08	$	0.76	$	0.69	$	0.34
Diluted	0.96		0.68		0.61		0.30

The results of operations for the first quarter of 2014 included a $233 million charge to accrue a liability for the settlement of all pending litigation between us and Rambus, including all antitrust and patent matters, which reflects the discounted value of amounts due under the arrangement. (See "Contingencies" note.)

The results of operations in the first, second, third and fourth quarters of 2014 included losses of $92 million, $80 million, $16 million and $17 million, respectively, for losses on restructure of debt. (See "Debt – 2014 Debt Restructure" note.)

The results of operations for the fourth quarter of 2014 included a gain of $93 million from the issuance of shares by Inotera, which reduced our ownership interest from 35% to 33%. (See "Equity Method Investments – Inotera" note.)

The results of operations for the fourth quarter of 2014 included a gain of $119 million from the sale of interest in Aptina to ON Semiconductor Corporation. (See "Equity Method Investments – Other" note.)

The results of operations for the fourth quarter of 2014 included a $66 million charge associated with a license agreement with Tessera executed in the fourth quarter of 2014. (See "Contingencies" note.)

The results of operations for the fourth quarter of 2014 included a $190 million income tax benefit from increases in the amounts of the MMJ Group's deferred tax assets expected to be realized based on our forecasted utilization of net operating losses. (See "Income Taxes" note.)

2013	Fourth Quarter		Third Quarter		Second Quarter			First Quarter
Net sales	$	2,843	$	2,318	$	2,078		$	1,834
Gross margin	708		556		366			217
Operating income (loss)	207		149		(23		)	(97		)
Net income (loss)	1,710		43		(284		)	(275		)
Net income (loss) attributable to Micron	1,708		43		(286		)	(275		)
Earnings (loss) per share:
Basic	$	1.65	$	0.04	$	(0.28	)	$	(0.27	)
Diluted	1.51		0.04		(0.28		)	(0.27		)

The results of operations for the fourth quarter of 2013 included a gain of $1.48 billion for the MMJ Acquisition. The fourth quarter of 2013 includes the MMJ Group's results of operation from the July 31, 2013 acquisition date. (See "Micron Memory Japan, Inc." note.)

The results of operations for the fourth quarter of 2013 included a gain of $48 million from the issuance of shares by Inotera, which reduced our ownership interest from 40% to 35%. (See "Equity Method Investments – Inotera" note.)

The results of operations for the fourth, third, second and first quarters of 2013 included losses of $3 million, $47 million, $120 million and $58 million, respectively, for the MMJ Acquisition Hedges. (See "Derivative Instruments – Derivative Instruments without Hedge Accounting Designation" note.)

In 2013 we took action to dispose of 200mm wafer manufacturing facilities and optimize operations including our workforce. The results of operations for the fourth, third and second quarters of 2013 include charges of $32 million, $55 million and $60 million, respectively, for the restructure and asset impairments. The results of operations for the first quarter of 2013 included a credit of $21 million for restructure activities. (See "Restructure and Asset Impairments" note.)

The results of operations in the second quarter of 2013 included a loss of $31 million on extinguishment of debt. (See "Debt – 2013 Debt Restructure" note.)