12/3/2003 - Texas Instruments Incorporated (TI) (NYSE: TXN) completed the sale of its remaining shares of Micron Technology, Inc. (NYSE: MU) common stock. Late last month, TI sold approximately 3.2 million shares of Micron and recently sold 29.1 million shares, for a total of 32.3 million sold in the fourth quarter.
TI will recognize a pre-tax gain of $97 million from these sales, which will be recorded in other income (expense) net (OI&E) in TI's fourth-quarter results. TI also will recognize a previously reserved tax benefit of $62 million in its fourth quarter associated with TI's impairment write-down of Micron common stock in the fourth quarter of 2002. The combined effect of the gain and the tax benefit will be an increase of $125 million to the company's net income for the fourth quarter.
TI carries its public stock holdings at current market value on its balance sheet and records an impairment write-down against earnings if a stock's value declines below its cost basis and the decline is deemed to be other than temporary. In the fourth quarter of 2002, TI recorded an impairment write-down of its Micron common stock to $9.74 per share but fully reserved the tax benefit associated with the action at that time. The tax benefit was to expire at the end of 2003. The cost basis of the shares sold today was $15.22 per share for tax purposes.
TI's Micron shares originally were acquired in connection with the sale of TI's semiconductor memory operation to Micron in 1998. Following today's transaction, TI no longer owns any Micron shares.
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.
Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web site at www.ti.com.
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