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# Micron's $11.22 Billion Singapore Tax Cut Shrank To $2.21 Billion After A Minimum Tax
- URL: https://www.bullished.co/microns-11-22-billion-singapore-tax-cut-shrank-to-2-21-billion-after-a-minimum-tax-7e1279c9/
- Published: 2026-10-09T14:55:57.000Z
- Updated: 2026-10-09T14:55:57.000Z
- Description: Micron's 10-K shows $9.03 billion of Pillar Two top-up taxes offset most of its Singapore incentives, with $9.82 billion of tax still payable.
- Author: Matteo Parrino
- Tags: SEC Filings, MU, Industry: Technology

Singapore tax incentives cut Micron's income tax provision by [$11.22 billion](https://www.sec.gov/Archives/edgar/data/0000723125/000072312526000023/mu-20260903.htm?ref=bullished.co) in fiscal 2026, but $9.03 billion of top-up taxes under the global Pillar Two minimum tax erased most of it, according to the company's 10-K. The net benefit was $2.21 billion, or $1.93 per diluted share.

## What the tax footnote says

The 10-K puts the effective tax rate at 14.8%, against 11.6% a year earlier. Management attributes the change mainly to the 15% minimum tax, which Singapore enacted effective for Micron in 2026 and which it says largely offsets the benefit of its Singapore incentive arrangements.

The net benefit was $1.05 billion, or $0.93 per diluted share, in fiscal 2025\. The incentives expire, in whole or in part, at various dates through 2034.

The [FY2025 10-K](https://www.sec.gov/Archives/edgar/data/0000723125/000072312525000028/mu-20250828.htm?ref=bullished.co) said the company expected a tax rate in the mid to high-teens percentage range from 2026 and gave no dollar figure for the effect.

The bill has not been paid. Income taxes payable inside other noncurrent liabilities stood at $9.82 billion at fiscal year-end, up from $648 million a year earlier. The cash flow statement shows only $1.254 billion of income taxes paid in 2026, and management says the rise in noncurrent liabilities was largely due to higher noncurrent income taxes payable tied to Pillar Two.

## Cash that is not all earned

Micron's cash and marketable investments reached $73.45 billion, from $11.94 billion a year earlier. Part of that is customer money: $12.75 billion of deposits from strategic customer agreements, with repayment of almost all due in 2029 through 2031\. Noncurrent customer contract liabilities rose to $12.895 billion from $142 million.

Most of these take-or-pay contracts carry price bands. If a customer meets its minimum purchases, Micron returns the deposit. If not, it may keep all or part of it as revenue. Remaining performance obligations were about $134 billion, versus an amount the company called not material a year earlier. Management says it expects margins on band-priced agreements, even at floor prices, to be meaningfully above its past peak quarterly margins.

## Buyback ceiling and what to watch

On October 8, the Board raised the maximum discretionary repurchase authorization to $35.16 billion, effective December 9, 2026\. Repurchases must follow the company's CHIPS Act funding agreements. Micron bought back $650 million of stock in 2026\. The stock traded at $1,024.31 in Friday trading, down 1.11% as of 10:53 a.m. ET (market data).

The filing also reports net income of $84.969 billion on revenue of $133.188 billion.

The next thing to check is whether the $9.82 billion of tax payable begins moving out as cash, with the higher buyback ceiling taking effect December 9.

### Sources

- [10-K Filing — Micron Technology (MU)](https://www.sec.gov/Archives/edgar/data/0000723125/000072312526000023/mu-20260903.htm?ref=bullished.co) — SEC EDGAR
- [10-K Filing — Micron Technology (MU), FY2025 filed 2025-10-03 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000723125/000072312525000028/mu-20250828.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Micron Technology (MU), filed 2025-12-18 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0000723125/000072312525000046/mu-20251127.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Micron Technology (MU), filed 2026-03-19 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0000723125/000072312526000006/mu-20260226.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Micron Technology (MU), filed 2026-06-25 (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0000723125/000072312526000015/mu-20260528.htm?ref=bullished.co) — SEC EDGAR
- [EXCLUSIVE: MU Stock Could Soar 190% and Hit $3,000 In 24 Months — Wall Street Bull Says Math Is 'Pretty Simple, Frankly'](https://www.benzinga.com/analyst-stock-ratings/analyst-color/26/10/62268653/exclusive-mu-stock-could-soar-190-and-hit-3000-in-24-months-wall-street-bull-says-math-is-pretty-simple-frankly?ref=bullished.co) — benzinga.com
- [Veteran analyst aggressively resets Micron stock target on 3-5 year run](https://www.thestreet.com/investing/stocks/micron-mu-stock-da-davidson-target?ref=bullished.co) — thestreet.com
- [Tech: Micron looks past semiconductor downturn for opportunities, ramps up investment in Penang](https://theedgemalaysia.com/article/tech-micron-looks-past-semiconductor-downturn-opportunities-ramps-investment-penang?ref=bullished.co) — The Edge Malaysia
- [Micron's DRAM Sales Reach $40B: Can AI Demand Drive Growth?](https://finance.yahoo.com/technology/ai/articles/microns-dram-sales-reach-40b-125800292.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Micron Analyst Sees Stock Nearly Tripling to $3,000, Warns Short Sellers: 'You Have an Expiry'](https://www.benzinga.com/markets/prediction-markets/26/10/62256022/micron-stock-3000-price-target-short-sellers?ref=bullished.co) — benzinga.com