Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2019
September 26, 2019
Micron enters fiscal 2020 with strengthened product portfolio, supported by solid Q4 and fiscal 2019 execution and performance
BOISE, Idaho, Sept. 26, 2019 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and fullyear of fiscal 2019, which ended August 29, 2019.
Fiscal Q4 2019 highlights

Revenues of $4.87 billion versus $4.79 billion for the prior quarter and $8.44 billion for the same period last year
GAAP net income of $561 million, or $0.49 per diluted share
Non-GAAP net income of $637 million, or $0.56 per diluted share
Operating cash flow of $2.23 billion versus $2.71 billion for the prior quarter and $5.16 billion for the same period last year
Fiscal 2019 highlights

Revenues of $23.41 billion versus $30.39 billion for the prior fiscal year
GAAP net income of $6.31 billion, or $5.51 per diluted share
Non-GAAP net income of $7.31 billion, or $6.35 per diluted share
Operating cash flow of $13.19 billion versus $17.40 billion for the prior fiscal year
Share repurchases of $2.66 billion under the authorized buyback program"Micron delivered fourth quarter results ahead of expectations, capping a fiscal 2019 in which we executed well in a challenging environment,
significantly improved our competitive position, and returned cash to shareholders through share repurchases," said Micron Technology President andCEO Sanjay Mehrotra. "We are encouraged by signs of improving industry demand, but are mindful of continued near-term macroeconomic and trade
uncertainties. As markets recover, Micron is well positioned to address the robust secular demand for memory and storage solutions."

Quarterly Financial Results
GAAP (1)(in millions, except per share amounts)

FQ4-19

Non-GAAP (2)FQ3-19

FQ4-18

FQ4-19

FQ3-19

FQ4-18

Revenue$

4,870 $

4,788 $

8,440$

4,870 $

4,788 $

8,440

Gross margin
percent of revenue$

1,395 $
28.6%

1,828 $
38.2%

5,151
61.0%

$

1,491 $
30.6%

1,884 $
39.3%

5,179
61.4%

Operating expenses

$

745 $

818 $

774$

797 $

774 $

740

Operating income
percent of revenue

$

650 $
13.3%

1,010 $
21.1%

4,377
51.9%

$

694 $
14.3%

1,110 $
23.2%

4,439
52.6%

Net income attributable to Micron

$

561 $

840 $

4,325$

637 $

1,198 $

4,313

Diluted earnings per share$

0.49 $

0.74 $

3.56$

0.56 $

1.05 $

3.53

Annual Financial Results
GAAP (1)(in millions, except per share amounts)

FY 19

Non-GAAP (2)
FY 18

FY 19

FY 18

Revenue$

23,406 $30,391$

23,406 $30,391Gross margin
percent of revenue$

10,702 $45.7%

17,891
58.9%$

10,973 $46.9%

17,994
59.2%

Operating expenses$

3,326 $

2,897$

3,172 $

2,751

Operating income
percent of revenue$

7,376 $
31.5%

14,99449.3%$

7,801 $
33.3%

15,24350.2%

Net income attributable to Micron$

6,313 $

14,135$

7,314 $

14,700

Diluted earnings per share$

5.51 $

11.51$

6.35 $

11.95

Investments in capital expenditures, net of amounts funded by partners, were $1.97 billion for the fourth quarter of 2019 and $9.11 billion for the fullyear of 2019, which resulted in adjusted free cash flows(3) of $263 million for the fourth quarter of 2019 and $4.08 billion for the full year of 2019.
Micron repurchased an aggregate of 67 million shares of its common stock for $2.66 billion during 2019 and ended the fourth quarter with cash,marketable investments, and restricted cash of $9.25 billion, for a net cash(4) position of $3.40 billion.

Business Outlook
The following table presents Micron's guidance for the first quarter of fiscal 2020:
FQ1-20GAAP (1) Outlook

Non-GAAP (2) Outlook

Revenue$5.0 billion ± $200 million$5.0 billion ± $200 million

Gross margin
Operating expenses

25.5% ± 1.5%

26.5% ± 1.5%$818 million ± $25 million$780 million ± $25 million$0.42 ± $0.07$0.46 ± $0.07

Diluted earnings per share

Micron expects investments in capital expenditures, net of amounts funded by partners, to be in the range of $7 billion to $8 billion for fiscal 2020.
Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted atinvestors.micron.com.
Investor Webcast
Micron will host a conference call on Thursday, September 26, 2019 at 2:30 p.m. MT to discuss financial results and provide forward-looking guidance
for its fiscal first quarter. The call, audio, and slides will be available online at investors.micron.com. A webcast replay will be available on the website
until September 26, 2020. For Investor Relations and other company updates, follow @MicronTech on Twitter at twitter.com/MicronTech.
About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions. Through our global brands – Micron®, Crucial®, and Ballistix® – our broad
portfolio of high-performance memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint™ memory, is transforming how
the world uses information to enrich life. Backed by 40 years of technology leadership, our memory and storage solutions enable disruptive trends,
including artificial intelligence, machine learning, and autonomous vehicles, in key market segments like data center, networking, automotive,industrial, mobile, graphics, and client. Our common stock is traded on the Nasdaq under the MU symbol. To learn more about Micron Technology,Inc., visit micron.com.
Micron and the Micron orbit logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements regarding the industry, our strategic position, and financial and operating results. These
forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to thedocuments we file with the Securities and Exchange Commission, specifically our most recent Form 10-K and Form 10-Q. These documents containand identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Thesecertain factors can be found at www.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of theforward-looking statements after the date of this release to conform these statements to actual results.

(1) GAAP represents U.S. Generally Accepted Accounting Principles.
(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results andunderstanding trends in our earnings. Non-GAAP shares used in per share calculations also include the impact of our outstanding capped calltransactions and the effect of stock-based compensation.
(3) Adjusted free cash flow consists of cash provided by operating activities less investments in capital expenditures, net of amounts funded bypartners.
(4) Net cash consists of cash, marketable investments, and restricted cash less current and long-term debt.

Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within
this press release.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY(in millions, except per share amounts)
4th Qtr.
August 29,
2019
Revenue (1)Cost of goods sold

Gross margin
Selling, general, and administrative
Research and development
Other operating (income) expense, net (2)

$

4,870
3,475

3rd Qtr.
May 30,2019$

4th Qtr.
August 30,
2018

4,788
2,960

$

8,440
3,289

Year Ended
August 29,
August 30,
20192018$

23,406
12,704$30,391
12,500

1,395
212
623

1,828
206
606

5,151
215
567

10,702836
2,441

17,891813
2,141(90 )6(8 )49(57 )

Operating income
Interest income (expense), net
Other non-operating income (expense), net (3)Income tax (provision) benefit
Equity in net income (loss) of equity method investees
Net income attributable to noncontrolling interests
Net income attributable to Micron

650
18

1,010
23

4,377
(16 )

7,376
77

14,994(222 )(13 )(71 )2(25 )(317 )
135—
(11 )

(15 )
(20 )
—(1 )

(405 )(693 )
3(45 )(465 )(168 )
(1 )
(3 )

$

561

$

840

$

4,325$

6,313$

14,135

$

0.51

$

0.76

$

3.73

$

5.67

$

12.27

Earnings per share

Basic
Diluted

0.49

0.74

3.56

5.51

11.51

1,104

1,105

1,128

1,129

1,159

1,114

1,152

1,216

1,143

1,229

Number of shares used in per share calculations

Basic
DilutedCONSOLIDATED FINANCIAL SUMMARY, Continued

August 29,
2019

As ofCash and short-term investments$May 30,
2019

7,955$

6,689

August 30,
2018
$

6,802

Receivables (1)Inventories

3,195
5,118

3,257
4,905

5,478
3,595

Total current assets (1)Long-term marketable investments
Property, plant, and equipment
Total assets

16,503
1,164
28,24048,887

15,066
1,167
27,13846,28816,039473
23,672
43,376

Accounts payable and accrued expenses

4,626

3,494

4,374

Current debt (3)Total current liabilities

1,310
6,390

1,346
5,397

859
5,754

Long-term debt (3)

4,541

3,563

3,777

Total Micron shareholders' equity (1)Noncontrolling interests in subsidiaries
Total equity

35,881889
36,77035,323867
36,19032,294
870
33,164

Year Ended
August 29,
August 30,
2019
2018
Net cash provided by operating activities
Net cash provided by (used for) investing activities
Net cash provided by (used for) financing activities$

13,189$(10,085 )(2,438 )17,400(8,216 )(7,776 )Depreciation and amortization
Investments in capital expenditures
Repayments of debt
Payments to acquire treasury stock
Proceeds from issuance of stock

5,473(9,855 )(3,340 )(2,729 )179

4,860(9,085 )(10,194 )(71 )1,655Proceeds from issuance of debt (3)3,550

1,009(1) In the first quarter of 2019, we adopted ASU 2014-09 – Revenue from Contracts with Customers (as amended, "ASC 606"), which

supersedes nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States. The core
principal of ASC 606 is that an entity should recognize revenue when it transfers control of promised goods or services to customers in anamount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 in
the first quarter of 2019 under the modified retrospective method and, in connection therewith, made certain adjustments to our opening
balances as of August 31, 2018. Adjustments to opening balances included an increase to receivables of $114 million, reduction of deferred tax
assets of $92 million, increase of other current assets of $30 million, and an increase to retained earnings of $50 million.

(2) In the fourth quarter of 2019, we finalized the sale of our 200mm fabrication facility in Singapore and recognized gains of $128 million inother operating (income) expense, net.
(3) On July 12, 2019, we issued $900 million and $850 million in principal of senior unsecured notes due in 2027 and 2030, respectively. On July

31, 2019, we prepaid $728 million in principal of our senior secured Term Loan B due 2022 and recognized a loss of $7 million in othernon-operating income (expense), net.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(in millions, except per share amounts)
4th Qtr.
August 29,2019
GAAP gross margin$Stock-based compensationStart-up and preproduction costs
Employee severance
Other

1,395

3rd Qtr.
May 30,2019$

4th Qtr.
August 30,
2018

1,828

$

5,151

Year Ended
August 29,
August 30,
2019
2018
$

10,702$

17,891

29

24

21

102

83

12

23

—

58

—

47

—

—

73

—

8

9

7

38

20

Non-GAAP gross margin

$

1,491

$

1,884

$

5,179

$

10,973$

17,994GAAP operating income

$

650

$

1,010

$

4,377

$

7,376

$

14,994

Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Other

67

58

47

243

198

1223—58—79——116—(122 )

97(32 )

28810840

23

Non-GAAP operating income

$

694$

1,110$

4,439$

7,801$

15,243

GAAP net income attributable to Micron

$

561$

840$

4,325$

6,313$

14,135

Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases andconversions(Gain) loss from changes in currency exchange
rates
OtherImpact of U.S. income tax reform
Estimated tax effects of above, non-cashchanges in net deferred income taxes,andassessments of tax exposures
Non-GAAP net income attributable to Micron
GAAP weighted-average common shares outstanding - Diluted

$

67

58

47

243

198

1223—

58—

79—

—

116

—

(122 )

97(32 )

28

10

10

23

49

101

10

317

(1 )

396

385

—

115

975

13

12

848

28

—

(42 )

(83 )

(9 )

(174 )

7(30 )(28 )

123(76 )

637

$

1,198

$

4,313

$

7,314

$

14,700

1,128

1,129

1,216

1,143

1,229

Adjustment for capped calls and stock-based
compensation

66

4

7

1Non-GAAP weighted-average common shares outstanding Diluted

1,134

1,135

1,220

1,150

1,230

GAAP diluted earnings per share$0.49

Effects of the above adjustments$0.07$

Non-GAAP diluted earnings per share

0.56

0.74$

3.56

0.31$

$

(0.03 )

1.05

$

5.51

$

11.51

0.84

3.53

$

0.44

6.35

$

11.95

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr.
August 29,
2019
GAAP net cash provided by operating activities$Expenditures for property, plant, and equipment
Payments on equipment purchase contracts
Amounts funded by partners$

4th Qtr.
August 30,
2018

2,711

$

Year Ended
August 29,
August 30,
2019
2018

5,155

$

13,189$17,400(2,028 )(2,403 )(2,251 )(9,780 )(8,879 )

(21 )

(17 )

(36 )

(75 )

(206 )

79$

Adjusted free cash flow

2,233

3rd Qtr.
May 30,
2019

263

213
$

225

504

$

747

3,093

$

August 29,
2019

As ofCash and short-term investments
Current and noncurrent restricted cash
Long-term marketable investments
Current and long-term debt

$

7,955

$

May 30,
2019
$

6,689

9,204

August 30,
2018
$

6,802

1277781

1,164

1,167473(5,851 )$Net cash

889

4,081

3,395(4,909 )
$

3,024

(4,636 )$2,720

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating income, net income attributable to Micron, diluted shares,
diluted earnings per share, adjusted free cash flow, and net cash. The non-GAAP adjustments above may or may not be infrequent or nonrecurring innature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and inanalyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results.
When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes
investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increasetransparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced
comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from numberspresented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes
the following items in analyzing our operating results and understanding trends in our earnings:

Stock-based compensation;
Flow-through of business acquisition-related inventory adjustments;
Acquisition-related costs;
Start-up and preproduction costs;
Employee severance;
Restructure and asset impairments;
Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with ourconvertible debt and MMJ creditor debt;
Gains and losses from debt repurchases and conversions;
Gains and losses from changes in currency exchange rates;
Gains and losses from business acquisition activities;
Impact of U.S. income tax reform for the one-time transition tax, release of U.S. valuation allowance, and remeasurementof net deferred taxes reflecting lower U.S. corporate tax rates; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, and assessments of tax exposures.
Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible
notes. In periods with non-GAAP income attributable to Micron, non-GAAP diluted shares include the impact of capped calls based on the average
share price for the period the capped calls are outstanding. Non-GAAP diluted shares are also adjusted for the impact of additional shares resulting
from the exclusion of stock-based compensation from non-GAAP income.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK(in millions, except per share amounts)
GAAP Outlook

Adjustments

Non-GAAP Outlook

Revenue
Gross margin$5.0 billion ± $200 million
25.5% ± 1.5%

Operating expenses$818 million ± $25 million

Diluted earnings per share (1)$0.42 ± $0.07

—
1% A
$38
million B$5.0 billion ± $200 million
26.5% ± 1.5%$780 million ± $25 million$0.04 A, B, C

$0.46 ± $0.07

Non-GAAP Adjustments
AA
B
BCC

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions

CTax effects of the above items and non-cash changes in net deferred income taxes$30
720
187(77 )35$40(1) GAAP and non-GAAP earnings per share are based on approximately 1.13 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any
potential business combinations, divestitures, restructuring activities, balance sheet valuation adjustments, strategic investments, financing
transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outsideof our control.
Contacts: Farhan Ahmad Investor Relations farhanahmad@micron.com (408) 834-1927 Erica Rodriguez Pompen Media Relations
epompen@micron.com (408) 834-1873