Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Micron Technology Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Product and process technology	613)	742)	633)	616)	583)	567)
Amortizing assets, gross amount	613)	742)	633)	616)	583)	567)
Accumulated amortization	(209)	(321)	(284)	(282)	(243)	(344)
Amortizing assets, net	404)	421)	349)	334)	340)	223)
In-process R&D	—)	—)	—)	—)	—)	108)
Non-amortizing assets	—)	—)	—)	—)	—)	108)
Intangible assets	404)	421)	349)	334)	340)	331)
Goodwill	1,150)	1,228)	1,228)	1,228)	1,228)	1,228)
Intangible assets and goodwill	1,554)	1,649)	1,577)	1,562)	1,568)	1,559)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

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Item	Description	The company
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Micron Technology Inc. intangible assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Micron Technology Inc. intangible assets and goodwill increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Micron Technology Inc., adjustments to financial statements

US$ in millions

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Adjustment to Total Assets
Total assets (as reported)	64,254)	66,283)	58,849)	53,678)	48,887)	43,376)
Less: Goodwill	1,150)	1,228)	1,228)	1,228)	1,228)	1,228)
Total assets (adjusted)	63,104)	65,055)	57,621)	52,450)	47,659)	42,148)
Adjustment to Total Micron Shareholders’ Equity
Total Micron shareholders’ equity (as reported)	44,120)	49,907)	43,933)	38,996)	35,881)	32,294)
Less: Goodwill	1,150)	1,228)	1,228)	1,228)	1,228)	1,228)
Total Micron shareholders’ equity (adjusted)	42,970)	48,679)	42,705)	37,768)	34,653)	31,066)
Adjustment to Net Income (loss) Attributable To Micron
Net income (loss) attributable to Micron (as reported)	(5,833)	8,687)	5,861)	2,687)	6,313)	14,135)
Add: Goodwill impairment	101)	—)	—)	—)	—)	—)
Net income (loss) attributable to Micron (adjusted)	(5,732)	8,687)	5,861)	2,687)	6,313)	14,135)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

Micron Technology Inc., Financial Data: Reported vs. Adjusted

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Micron Technology Inc., adjusted financial ratios

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Net Profit Margin
Reported net profit margin	-37.54%	28.24%	21.16%	12.54%	26.97%	46.51%
Adjusted net profit margin	-36.89%	28.24%	21.16%	12.54%	26.97%	46.51%
Total Asset Turnover
Reported total asset turnover	0.24	0.46	0.47	0.40	0.48	0.70
Adjusted total asset turnover	0.25	0.47	0.48	0.41	0.49	0.72
Financial Leverage
Reported financial leverage	1.46	1.33	1.34	1.38	1.36	1.34
Adjusted financial leverage	1.47	1.34	1.35	1.39	1.38	1.36
Return on Equity (ROE)
Reported ROE	-13.22%	17.41%	13.34%	6.89%	17.59%	43.77%
Adjusted ROE	-13.34%	17.85%	13.72%	7.11%	18.22%	45.50%
Return on Assets (ROA)
Reported ROA	-9.08%	13.11%	9.96%	5.01%	12.91%	32.59%
Adjusted ROA	-9.08%	13.35%	10.17%	5.12%	13.25%	33.54%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Micron Technology Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Micron Technology Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Micron Technology Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Micron Technology Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Micron Technology Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Micron Technology Inc., Financial Ratios: Reported vs. Adjusted

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	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron	(5,833)	8,687)	5,861)	2,687)	6,313)	14,135)
Revenue	15,540)	30,758)	27,705)	21,435)	23,406)	30,391)
Profitability Ratio
Net profit margin¹	-37.54%	28.24%	21.16%	12.54%	26.97%	46.51%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron	(5,732)	8,687)	5,861)	2,687)	6,313)	14,135)
Revenue	15,540)	30,758)	27,705)	21,435)	23,406)	30,391)
Profitability Ratio
Adjusted net profit margin²	-36.89%	28.24%	21.16%	12.54%	26.97%	46.51%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Micron ÷ Revenue
= 100 × -5,833 ÷ 15,540 = -37.54%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Micron ÷ Revenue
= 100 × -5,732 ÷ 15,540 = -36.89%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Micron Technology Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenue	15,540)	30,758)	27,705)	21,435)	23,406)	30,391)
Total assets	64,254)	66,283)	58,849)	53,678)	48,887)	43,376)
Activity Ratio
Total asset turnover¹	0.24	0.46	0.47	0.40	0.48	0.70
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	15,540)	30,758)	27,705)	21,435)	23,406)	30,391)
Adjusted total assets	63,104)	65,055)	57,621)	52,450)	47,659)	42,148)
Activity Ratio
Adjusted total asset turnover²	0.25	0.47	0.48	0.41	0.49	0.72

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 15,540 ÷ 64,254 = 0.24

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 15,540 ÷ 63,104 = 0.25

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Micron Technology Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	64,254)	66,283)	58,849)	53,678)	48,887)	43,376)
Total Micron shareholders’ equity	44,120)	49,907)	43,933)	38,996)	35,881)	32,294)
Solvency Ratio
Financial leverage¹	1.46	1.33	1.34	1.38	1.36	1.34
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	63,104)	65,055)	57,621)	52,450)	47,659)	42,148)
Adjusted total Micron shareholders’ equity	42,970)	48,679)	42,705)	37,768)	34,653)	31,066)
Solvency Ratio
Adjusted financial leverage²	1.47	1.34	1.35	1.39	1.38	1.36

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Micron shareholders’ equity
= 64,254 ÷ 44,120 = 1.46

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Micron shareholders’ equity
= 63,104 ÷ 42,970 = 1.47

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Micron Technology Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron	(5,833)	8,687)	5,861)	2,687)	6,313)	14,135)
Total Micron shareholders’ equity	44,120)	49,907)	43,933)	38,996)	35,881)	32,294)
Profitability Ratio
ROE¹	-13.22%	17.41%	13.34%	6.89%	17.59%	43.77%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron	(5,732)	8,687)	5,861)	2,687)	6,313)	14,135)
Adjusted total Micron shareholders’ equity	42,970)	48,679)	42,705)	37,768)	34,653)	31,066)
Profitability Ratio
Adjusted ROE²	-13.34%	17.85%	13.72%	7.11%	18.22%	45.50%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to Micron ÷ Total Micron shareholders’ equity
= 100 × -5,833 ÷ 44,120 = -13.22%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Micron ÷ Adjusted total Micron shareholders’ equity
= 100 × -5,732 ÷ 42,970 = -13.34%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Micron Technology Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron	(5,833)	8,687)	5,861)	2,687)	6,313)	14,135)
Total assets	64,254)	66,283)	58,849)	53,678)	48,887)	43,376)
Profitability Ratio
ROA¹	-9.08%	13.11%	9.96%	5.01%	12.91%	32.59%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron	(5,732)	8,687)	5,861)	2,687)	6,313)	14,135)
Adjusted total assets	63,104)	65,055)	57,621)	52,450)	47,659)	42,148)
Profitability Ratio
Adjusted ROA²	-9.08%	13.35%	10.17%	5.12%	13.25%	33.54%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to Micron ÷ Total assets
= 100 × -5,833 ÷ 64,254 = -9.08%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Micron ÷ Adjusted total assets
= 100 × -5,732 ÷ 63,104 = -9.08%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Micron Technology Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Micron Technology Inc. (NASDAQ:MU)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Micron Technology Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Micron Technology Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)