For NAND, we are projecting industry supply growth in the low 40% range for calendar 2014. This includes a 10% increase in industry wafer production with the remaining supply growth coming from technology. Micron's total NAND supply growth was below the industry in 2013, but will be slightly above the industry in 2014 given our DRAM to NAND conversion. This supply forecast compares to the five-year NAND bit demand CAGR in the low to mid-40% range implying favorable long-term supply and demand balance.
Our emphasis in NAND is on continuing to improve customer enablement and product placement in value-added applications. We're very pleased with the results for the quarter and the outlook for healthy memory industry dynamics. We remain focused on optimizing value for our shareholders and worldwide customers in 2014 and beyond.
I'll stop here and turn it over to Ron and Mark before returning for Q&A. Ron?
Ronald C. Foster - CFO and VP of Finance: Thanks, Mark. Our first quarter of fiscal 2014 ended on November 28th. To ensure you have easier access to the materials we're covering today, we posted to our website a file containing the financial information I will cover, including GAAP and non-GAAP results, certain key metrics for the first quarter as well as guidance for the second quarter of fiscal 2014.
For the first quarter, we reported net income of $358 million or $0.30 per diluted share on record net sales of $4,042 million. These results include the unanticipated costs of the Rambus settlement and debt restructuring. As a reminder, the results for the previous quarter included the $1.5 billion non-operating gain recognized as part of the purchase accounting for the Elpida acquisition.
On a non-GAAP basis, net income for the quarter was $881 million or $0.77 per share, non-GAAP adjustments totaled $523 million or $0.47 per share. Key adjustments included the following; a $233 million charge recognized on the Rambus settlement, which was expensed entirely in the first quarter; $111 million non-cash flow through of Elpida inventory step up related to the acquisition; $92 million in accounting losses recognized on the convertible note transactions, a portion of which resulted from mark-to-market accounting and our improved share price in the last month of the quarter. Approximately $17 million of this amount was recorded as interest expense for the make-whole premiums on the notes.
Q1 adjustments also included $50 million in non-cash amortization of debt discounts and other costs. This primarily consists of the imputed interest on the convertible notes and Elpida installment debt; $73 million in non-cash taxes related to the Elpida operations in the quarter; and finally, $54 million share anti-dilutive effect of capped calls based on the average stock price during the first quarter of $17.48.
In the second quarter, we expect the following non-GAAP adjustments; around $30 million flow-through of Elpida inventory step-up, reported as a higher cost of goods sold in Q2. This should be immaterial in future periods. Approximately $50 million amortization of debt discounts on the convertible notes and the Elpida installment debt.