Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - MICRON TECHNOLOGY INC | exhibit_99-3.htm |
| 8-K - 8-K - MICRON TECHNOLOGY INC | fy09_8-k.htm |
| EX-23.1 - EXHIBIT 23.1 - MICRON TECHNOLOGY INC | exhibit_23-1.htm |
| EX-99.2 - EXHIBIT 99.2 - MICRON TECHNOLOGY INC | exhibit_99-2.htm |
| EX-99.1 - EXHIBIT 99.1 - MICRON TECHNOLOGY INC | exhibit_99-1.htm |
| EX-99.5 - EXHIBIT 99.5 - MICRON TECHNOLOGY INC | exhibit_99-5.htm |
EXHIBIT
99.4
Item
7A. Quantitative
and Qualitative Disclosures about Market Risk
Interest
Rate Risk
As of September 3, 2009, $2,064 million
of the Company’s $2,803 million of debt was at fixed interest
rates. As a result, the fair value of the Company’s debt instruments
fluctuates based on changes in market interest rates. The estimated
fair value of the Company’s debt instruments was $2,868 million as of September
3, 2009 and was $2,167 million as of August 28, 2008. The Company
estimates that as of September 3, 2009, a 1% decrease in market interest rates
would change the fair value of the fixed-rate debt instruments by approximately
$55 million. As of September 3, 2009, $739 million of the Company’s
debt instruments had variable interest rates and an increase of 1% would
increase annual interest expense by approximately $8 million.
Foreign
Currency Exchange Rate Risk
The information in this section should
be read in conjunction with the information related to changes in the exchange
rates of foreign currency in “Item 1A. Risk Factors.” Changes in
foreign currency exchange rates could materially adversely affect the Company’s
results of operations or financial condition.
The functional currency for
substantially all of the Company’s operations is the U.S. dollar. The
Company held cash and other assets in foreign currencies valued at an aggregate
of U.S. $229 million as of September 3, 2009 and U.S. $425 million as of August
28, 2008. The Company also had foreign currency liabilities valued at
an aggregate of U.S. $742 million as of September 3, 2009, and U.S. $580 million
as of August 28, 2008. Significant components of the Company’s assets
and liabilities denominated in foreign currencies were as follows (in U.S.
dollar equivalents):
|
2009
|
2008
|
|||||||||||||||||||||||
|
Singapore
Dollars
|
Yen
|
Euro
|
Singapore
Dollars
|
Yen
|
Euro
|
|||||||||||||||||||
|
(in
millions)
|
||||||||||||||||||||||||
|
Cash
and equivalents
|
$ | 7 | $ | 8 | $ | 21 | $ | 84 | $ | 130 | $ | 25 | ||||||||||||
|
Net
deferred tax assets
|
-- | 115 | 1 | -- | 85 | 2 | ||||||||||||||||||
|
Accounts
payable and accrued expenses
|
(68 | ) | (141 | ) | (99 | ) | (105 | ) | (127 | ) | (61 | ) | ||||||||||||
|
Debt
|
(289 | ) | (25 | ) | (4 | ) | (49 | ) | (108 | ) | (4 | ) | ||||||||||||
|
Other
liabilities
|
(6 | ) | (54 | ) | (38 | ) | (8 | ) | (45 | ) | (43 | ) | ||||||||||||
The Company estimates that, based on
its assets and liabilities denominated in currencies other than the U.S. dollar
as of September 3, 2009, a 1% change in the exchange rate versus the U.S. dollar
would result in foreign currency gains or losses of approximately U.S. $3
million for the Singapore dollar and U.S. $1 million for euro and the
yen. Historically, the Company has not used derivative instruments to
hedge its foreign currency exchange rate risk.
1