Micron Corp's annual 10-k report's tax rate reconciliation shows a $41 million increase in 2024 tax expense due to "change in unrecognized tax benefits." UTB table shows a $54M increase due to current year positions, and an $89M decrease due to prior years. (1/x) investors.micron.com/static-files... - ThreadSky

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mindthegaap.bsky.social • 1 day ago

Micron Corp's annual 10-k report's tax rate reconciliation shows a $41 million increase in 2024 tax expense due to "change in unrecognized tax benefits." UTB table shows a $54M increase due to current year positions, and an $89M decrease due to prior years. (1/x)
https://investors.micron.com/static-files/c5f6c770-a182-417e-bb2b-6e192c403164

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mindthegaap.bsky.social•1 day ago

The meaning of the $54M is super clear. This is $54M of income tax the company hasn't paid yet, and that it believes a properly functioning IRS (or other tax administration) will require them to pay. Put another way, Micron claimed $54M of tax breaks, in 2024, that it believes it shouldn't have.

mindthegaap.bsky.social•1 day ago

The $89 million is (usually) clear as mud. All we know is that $89 M of tax breaks Micron claimed in prior years that they were doubtful about... are no longer doubtful. Could be b/c the IRS did its job and disallowed the tax breaks; could be b/c the IRS didn't audit, so they got away with it.

mindthegaap.bsky.social•1 day ago

But the (unusual) rate reconciliation adds info here (I think). If Micron's current-year UTB addition was $54M, and the reconciliation effect was only $41M, then Micron must have reduced its taxes by $13M by getting away with probably-illegal tax breaks from prior years, which is part of that $89M.

mindthegaap.bsky.social•1 day ago

Which means that of the $89M in we-shouldn't-get-away-with-this tax breaks Micron reported in prior years that got resolved in 2024, they really did, in the end, get away with $13M of it.
Right?

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