8-KShareholder MattersExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Rights Modification (Jul 19, 2019)

Filed July 19, 2019For Securities:MU

Summary

Micron Technology, Inc. (MU) filed an 8-K on July 19, 2019, to announce the expiration of its Section 382 Rights Agreement, originally dated July 20, 2016. This agreement and the associated common stock purchase rights expired by their terms at the close of business on July 19, 2019, rendering the agreement of no further force or effect. This expiration is a routine corporate action and does not appear to signify any immediate change in Micron's financial health or strategic direction based on this filing alone. Investors should note that the expiration of such rights agreements is common after a certain period and is typically designed to prevent hostile takeovers. The company included a press release announcing this expiration as an exhibit.

Key Highlights

  • 1Micron Technology's Section 382 Rights Agreement and associated stock purchase rights expired on July 19, 2019.
  • 2The expiration was by the terms of the original agreement dated July 20, 2016.
  • 3The Rights Agreement is now of no further force or effect.
  • 4This filing was made on July 19, 2019, coinciding with the expiration date.
  • 5A press release announcing the expiration was issued and attached as an exhibit.
  • 6David A. Zinsner, Senior Vice President and Chief Financial Officer, signed the filing.

Frequently Asked Questions

The expiration of the Section 382 Rights Agreement is a standard corporate governance event. These agreements are typically put in place to deter hostile takeovers by making it more expensive or difficult for an unwelcome entity to acquire a significant stake in the company. Its expiration means this specific anti-takeover measure is no longer active.

Based solely on this 8-K filing, the expiration appears to be a routine, pre-planned event and not indicative of negative news or financial distress. Rights agreements have a set term, and their expiration is often a normal course of business as the specified period concludes.

The Section 382 Rights Agreement was likely implemented to help preserve the value of Micron's net operating losses (NOLs) under Section 382 of the U.S. Internal Revenue Code. Section 382 limits a corporation's ability to use its NOLs to offset taxable income following a significant ownership change, and rights plans can help prevent such changes.

More information can be found in Exhibit 99.1, which is the press release dated July 19, 2019, attached to this 8-K filing. This press release likely provides further details and context on the expiration of the Rights Agreement.