8-KOther EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Corporate Update (Mar 4, 2010)

Filed March 4, 2010For Securities:MU

Summary

Micron Technology, Inc. (MU) filed this Form 8-K on March 4, 2010, to retrospectively adjust its prior fiscal year 2009 Form 10-K. The primary purpose is to reflect the adoption of new accounting standards for noncontrolling interests and convertible debt instruments, which require retrospective application. Additionally, the company has restated its reportable segments, with the Imaging segment no longer meeting the criteria to be considered a separate reportable segment and now included in 'All Other' nonreportable segments. These accounting changes impact how noncontrolling interests are presented on the balance sheet and income statement, and how Micron's convertible debt is classified and accounted for. Specifically, its $1.3 billion in 1.875% convertible senior notes issued in May 2007 are now bifurcated into liability and equity components. Investors should note that these adjustments are primarily for presentation and reflect changes in accounting rules rather than new operational events. The filing provides revised sections of the 2009 Form 10-K to incorporate these changes.

Key Highlights

  • 1Micron is retrospectively adjusting its Fiscal Year 2009 10-K filing due to the adoption of new accounting standards.
  • 2New standards require changes in the accounting and presentation of Noncontrolling Interests in subsidiaries.
  • 3Convertible debt instruments, specifically the 1.875% senior notes ($1.3 billion principal), are now bifurcated into liability and equity components.
  • 4The Imaging segment is no longer considered a reportable segment and has been reclassified into 'All Other' nonreportable segments.
  • 5These adjustments are effective at the beginning of fiscal 2010 and have been applied retrospectively.
  • 6The filing provides revised sections of the 2009 10-K (Exhibits 99.1-99.5) to reflect these changes.
  • 7This filing aims to allow for the incorporation of these revised financial statements by reference in future SEC filings.

Frequently Asked Questions

Micron Technology is filing this 8-K to retrospectively update its previous Form 10-K for the fiscal year ended September 3, 2009. This update is necessary to reflect the adoption of new accounting standards concerning noncontrolling interests and convertible debt, as well as a change in how the company reports its business segments.

Under the new standard, noncontrolling interests in subsidiaries will now be reported as a separate component within the equity section of the consolidated balance sheets and will be included in net income on the statement of operations.

The new standard requires that convertible debt instruments settled partially or fully in cash upon conversion must be separated into their liability and equity components. For Micron's $1.3 billion in 1.875% convertible senior notes issued in May 2007, this means the debt is now accounted for with a distinct liability component (based on the fair value of similar non-convertible debt at issuance) and an equity component.

The Imaging segment no longer meets the quantitative thresholds to be classified as a reportable segment, and management does not anticipate it will in the future. Consequently, it has been moved from a separate reportable segment to the 'All Other' category of nonreportable segments.