That's about how much less Micron will have to pay for Elpida due to the weak yen.
From the cc:
"With the weakening of the yen, approximately one half of the savings from the lower purchase price for Elpida is reflected as a loss on the hedge and has been included in our income statement for the quarter. Any reduction in purchase price will not be recognized on our balance sheet until the transaction is closed using the exchange value at that time. We do not provide any guidance on hedging gains or losses given the extreme volatility of the yen at this time."
Sentiment: Strong Buy
Doesn't matter if it shows up on the P&L because when they actually complete the purchase they will need to come up with approximately $240 million less, since they will be buying yen to use for payment.
This is real tangible CA$H baby not buried in some goodwill statement like dream says, considering they won't do the currency exchange until the deal closes.
Not rocket science bro.
In my HO, the key to MU success is to do the Elipida deal and start producing the right kind of chips that are in high demand from their factories. Chip demand will increase and so will revenues. As MU starts to generate positive income growth and acquires more business from other companies the EPS will grow and so will the P/E. Just take a look at QCOM and we may be looking at the future of MU. I also believe that Hynix and MU will somehow do a JV or merge and AAPL will shift more orders to MU in fear of Samsung. MU and Hynix were pretty chummy at the RMBS trials. MU's SSD division should start to produce a greater return
No sht. But that's really not a loss? Tell that to Dell's board when they got rid of Michael Dell. It's indeed a loss and nothing else but a loss. Man, Micron's already rationalizing its books worse than I thought they would at this point. It'll be amazing to watch going into the down season. When the Yen appreciates again and Micron loses operations with Elpida, there'll be yet another excuse.
Your Belligerence, so an entity loses money while conducting arbitrage (investing in currencies), in this case betting that the Yen while appreciate against the dollar, loses $120 million, and states that the loss is not "real". Since when? Take it slow with me because I'm not a rocket scientist, but at least do know what today's date is.