Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Micron Technology Inc. (NASDAQ:MU)

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

Micron Technology Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
U.S. federal 20  36  54  —  —  (6)
State (1)
Foreign 148  319  374  152  27  93 
Current 170  357  427  153  28  88 
U.S. federal (39) 146  (232) —  (39) (15)
State (23) (91) (101) —  (2) (1)
Foreign 172  281  74  (39) 32  85 
Deferred 110  336  (259) (39) (9) 69 
Income tax provision 280  693  168  114  19  157 

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Micron Technology Inc.’s current decreased from 2018 to 2019 and from 2019 to 2020.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Micron Technology Inc.’s deferred increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Micron Technology Inc.’s income tax provision increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.

Effective Income Tax Rate (EITR)

Micron Technology Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
U.S. federal income tax statutory rate 21.00% 21.00% 25.70% 35.00% 35.00% 35.00%
Change in unrecognized tax benefits 1.10% 0.80% -0.40% 0.00% 0.00% 0.00%
Change in valuation allowance 0.70% 0.60% -14.50% -1.20% 22.40% 0.00%
U.S. tax on foreign operations 0.50% 4.60% 0.10% 0.70% 0.00% 0.00%
Foreign tax rate differential -8.50% -14.10% -18.20% -30.80% -106.80% 0.00%
Foreign derived intangible income deduction -2.20% 0.00% 0.00% 0.00% 0.00% 0.00%
Research and development tax credits -2.10% -1.70% -0.60% -1.30% 17.10% 0.00%
State taxes, net of federal benefit -0.80% -1.40% 0.60% 0.00% 0.00% 0.00%
Other -0.30% -0.10% -0.10% -0.20% 25.50% -28.98%
Effective income tax rate, before the Tax Act 9.40% 9.70% -7.40% 2.20% -6.80% 6.02%
Repatriation Tax related to the Tax Act 0.00% 0.10% 7.30% 0.00% 0.00% 0.00%
Remeasurement of deferred tax assets and liabilities related to the Tax Act 0.00% 0.00% 1.30% 0.00% 0.00% 0.00%
Effective income tax rate 9.40% 9.80% 1.20% 2.20% -6.80% 6.02%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Item Description The company
Effective income tax rate, before the Tax Act Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Micron Technology Inc.’s effective income tax rate, before the Tax Act increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Components of Deferred Tax Assets and Liabilities

Micron Technology Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Net operating loss and tax credit carryforwards 912  1,045  1,417  3,426  3,014  2,869 
Accrued salaries, wages, and benefits 176  122  163  211  142  143 
Operating lease liabilities 114  —  —  —  —  — 
Property, plant, and equipment —  80  —  —  —  — 
Other 91  110  115  145  141  183 
Gross deferred tax assets 1,293  1,357  1,695  3,782  3,297  3,195 
Valuation allowance (294) (277) (228) (2,321) (2,107) (2,051)
Deferred tax assets, net of valuation allowance 999  1,080  1,467  1,461  1,190  1,144 
Right-of-use assets (95) —  —  —  —  — 
Product and process technology (57) (138) (62) (85) (81) (43)
Property, plant, and equipment (50) —  (173) (300) (135) (2)
Other (99) (109) (213) (327) (319) (424)
Deferred tax liabilities (301) (247) (448) (712) (535) (469)
Net deferred tax assets (liabilities) 698  833  1,019  749  655  675 

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Micron Technology Inc.’s gross deferred tax assets decreased from 2018 to 2019 and from 2019 to 2020.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Micron Technology Inc.’s deferred tax assets, net of valuation allowance decreased from 2018 to 2019 and from 2019 to 2020.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Micron Technology Inc.’s net deferred tax assets (liabilities) decreased from 2018 to 2019 and from 2019 to 2020.

Deferred Tax Assets and Liabilities, Classification

Micron Technology Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Current deferred tax assets (included in Other current assets) —  —  —  —  —  104 
Deferred tax assets 707  837  1,022  766  657  597 
Current deferred tax liabilities (included in Accounts payable and accrued expenses) —  —  —  —  — 
Deferred tax liabilities (included in Other noncurrent liabilities) 17  22 

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Micron Technology Inc.’s deferred tax assets decreased from 2018 to 2019 and from 2019 to 2020.
Deferred tax liabilities (included in Other noncurrent liabilities) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Micron Technology Inc.’s deferred tax liabilities (included in Other noncurrent liabilities) increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Deferred Taxes

Micron Technology Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Adjustment to Current Assets
Current assets (as reported) 17,965  16,503  16,039  12,457  9,495  8,596 
Less: Current deferred tax assets, net —  —  —  —  —  104 
Current assets (adjusted) 17,965  16,503  16,039  12,457  9,495  8,492 
Adjustment to Total Assets
Total assets (as reported) 53,678  48,887  43,376  35,336  27,540  24,143 
Less: Current deferred tax assets, net —  —  —  —  —  104 
Less: Noncurrent deferred tax assets, net 707  837  1,022  766  657  597 
Total assets (adjusted) 52,971  48,050  42,354  34,570  26,883  23,442 
Adjustment to Current Liabilities
Current liabilities (as reported) 6,635  6,390  5,754  5,334  4,835  3,905 
Less: Current deferred tax liabilities, net —  —  —  —  — 
Current liabilities (adjusted) 6,635  6,390  5,754  5,334  4,835  3,901 
Adjustment to Total Liabilities
Total liabilities (as reported) 14,682  12,019  10,112  15,845  14,612  10,855 
Less: Current deferred tax liabilities, net —  —  —  —  — 
Less: Noncurrent deferred tax liabilities, net 17  22 
Total liabilities (adjusted) 14,673  12,015  10,109  15,828  14,610  10,829 
Adjustment to Total Micron Shareholders’ Equity
Total Micron shareholders’ equity (as reported) 38,996  35,881  32,294  18,621  12,080  12,302 
Less: Net deferred tax assets (liabilities) 698  833  1,019  749  655  675 
Total Micron shareholders’ equity (adjusted) 38,298  35,048  31,275  17,872  11,425  11,627 
Adjustment to Net Income (loss) Attributable To Micron
Net income (loss) attributable to Micron (as reported) 2,687  6,313  14,135  5,089  (276) 2,899 
Add: Deferred income tax expense (benefit) 110  336  (259) (39) (9) 69 
Net income (loss) attributable to Micron (adjusted) 2,797  6,649  13,876  5,050  (285) 2,968 

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).


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


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Micron Technology Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Current Ratio
Reported current ratio 2.71 2.58 2.79 2.34 1.96 2.20
Adjusted current ratio 2.71 2.58 2.79 2.34 1.96 2.18
Net Profit Margin
Reported net profit margin 12.54% 26.97% 46.51% 25.04% -2.23% 17.90%
Adjusted net profit margin 13.05% 28.41% 45.66% 24.85% -2.30% 18.33%
Total Asset Turnover
Reported total asset turnover 0.40 0.48 0.70 0.58 0.45 0.67
Adjusted total asset turnover 0.40 0.49 0.72 0.59 0.46 0.69
Financial Leverage
Reported financial leverage 1.38 1.36 1.34 1.90 2.28 1.96
Adjusted financial leverage 1.38 1.37 1.35 1.93 2.35 2.02
Return on Equity (ROE)
Reported ROE 6.89% 17.59% 43.77% 27.33% -2.28% 23.57%
Adjusted ROE 7.30% 18.97% 44.37% 28.26% -2.49% 25.53%
Return on Assets (ROA)
Reported ROA 5.01% 12.91% 32.59% 14.40% -1.00% 12.01%
Adjusted ROA 5.28% 13.84% 32.76% 14.61% -1.06% 12.66%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Micron Technology Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Micron Technology Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Micron Technology Inc.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Micron Technology Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Micron Technology Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

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


Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets 17,965  16,503  16,039  12,457  9,495  8,596 
Current liabilities 6,635  6,390  5,754  5,334  4,835  3,905 
Liquidity Ratio
Current ratio1 2.71 2.58 2.79 2.34 1.96 2.20
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 17,965  16,503  16,039  12,457  9,495  8,492 
Adjusted current liabilities 6,635  6,390  5,754  5,334  4,835  3,901 
Liquidity Ratio
Adjusted current ratio2 2.71 2.58 2.79 2.34 1.96 2.18

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 17,965 ÷ 6,635 = 2.71

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 17,965 ÷ 6,635 = 2.71

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Micron Technology Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 2,687  6,313  14,135  5,089  (276) 2,899 
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Profitability Ratio
Net profit margin1 12.54% 26.97% 46.51% 25.04% -2.23% 17.90%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron 2,797  6,649  13,876  5,050  (285) 2,968 
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Profitability Ratio
Adjusted net profit margin2 13.05% 28.41% 45.66% 24.85% -2.30% 18.33%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Micron ÷ Revenue
= 100 × 2,687 ÷ 21,435 = 12.54%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Micron ÷ Revenue
= 100 × 2,797 ÷ 21,435 = 13.05%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Micron Technology Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Total assets 53,678  48,887  43,376  35,336  27,540  24,143 
Activity Ratio
Total asset turnover1 0.40 0.48 0.70 0.58 0.45 0.67
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Adjusted total assets 52,971  48,050  42,354  34,570  26,883  23,442 
Activity Ratio
Adjusted total asset turnover2 0.40 0.49 0.72 0.59 0.46 0.69

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 21,435 ÷ 53,678 = 0.40

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 21,435 ÷ 52,971 = 0.40

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Micron Technology Inc.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 53,678  48,887  43,376  35,336  27,540  24,143 
Total Micron shareholders’ equity 38,996  35,881  32,294  18,621  12,080  12,302 
Solvency Ratio
Financial leverage1 1.38 1.36 1.34 1.90 2.28 1.96
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 52,971  48,050  42,354  34,570  26,883  23,442 
Adjusted total Micron shareholders’ equity 38,298  35,048  31,275  17,872  11,425  11,627 
Solvency Ratio
Adjusted financial leverage2 1.38 1.37 1.35 1.93 2.35 2.02

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 Financial leverage = Total assets ÷ Total Micron shareholders’ equity
= 53,678 ÷ 38,996 = 1.38

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Micron shareholders’ equity
= 52,971 ÷ 38,298 = 1.38

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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 2,687  6,313  14,135  5,089  (276) 2,899 
Total Micron shareholders’ equity 38,996  35,881  32,294  18,621  12,080  12,302 
Profitability Ratio
ROE1 6.89% 17.59% 43.77% 27.33% -2.28% 23.57%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron 2,797  6,649  13,876  5,050  (285) 2,968 
Adjusted total Micron shareholders’ equity 38,298  35,048  31,275  17,872  11,425  11,627 
Profitability Ratio
Adjusted ROE2 7.30% 18.97% 44.37% 28.26% -2.49% 25.53%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 ROE = 100 × Net income (loss) attributable to Micron ÷ Total Micron shareholders’ equity
= 100 × 2,687 ÷ 38,996 = 6.89%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Micron ÷ Adjusted total Micron shareholders’ equity
= 100 × 2,797 ÷ 38,298 = 7.30%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Micron Technology Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 2,687  6,313  14,135  5,089  (276) 2,899 
Total assets 53,678  48,887  43,376  35,336  27,540  24,143 
Profitability Ratio
ROA1 5.01% 12.91% 32.59% 14.40% -1.00% 12.01%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Micron 2,797  6,649  13,876  5,050  (285) 2,968 
Adjusted total assets 52,971  48,050  42,354  34,570  26,883  23,442 
Profitability Ratio
Adjusted ROA2 5.28% 13.84% 32.76% 14.61% -1.06% 12.66%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

2020 Calculations

1 ROA = 100 × Net income (loss) attributable to Micron ÷ Total assets
= 100 × 2,687 ÷ 53,678 = 5.01%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Micron ÷ Adjusted total assets
= 100 × 2,797 ÷ 52,971 = 5.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Micron Technology Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.