September 20, 2018

Micron Technology, Inc., Reports Results for the Fourth Quarter and Full Year of Fiscal
2018
Record FY18 revenue over $30 billion driven by strong execution and diverse demand growth
BOISE, Idaho, Sept. 20, 2018 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ: MU) today announced results ofoperations for its fourth quarter and full year of fiscal 2018, which ended August 30, 2018.
Fiscal Q4 2018 highlights
Revenues of $8.44 billion, up 38 percent compared with the same period last year
GAAP net income of $4.33 billion, or $3.56 per diluted share Non-GAAP net income of $4.31 billion, or $3.53 per diluted share Operating cash flow of $5.16 billion, compared with $3.20 billion for the same period last year

Fiscal 2018 highlights
Revenues of $30.39 billion, up 50 percent compared with the prior fiscal year
GAAP net income of $14.14 billion, or $11.51 per diluted share Non-GAAP net income of $14.70 billion, or $11.95 per diluted share Operating cash flow of $17.40 billion, compared with $8.15 billion for the prior fiscal year"Micron delivered an exceptional fourth quarter and capped record fiscal year results by becoming the second largest
semiconductor company in the U.S.," said Sanjay Mehrotra, President and CEO of Micron Technology. "In the fourth
quarter, we set revenue records across all our major markets, from automotive and industrial to mobile and cloud
datacenters. The secular and diversified growth drivers in our industry combined with accelerating pace of transformation of
the new Micron form a tremendous catalyst for us to create enduring value for our customers and investors in 2019 and theyears ahead."

Quarterly Financial Results(in millions, except per share amounts)
Revenue
Gross margin
percent of revenue
Operating income
percent of revenue
Net income attributable to Micron
Diluted earnings per share

FQ4-18
8,440
5,151
61.0%
$
4,377
51.9%
$
4,325
$
3.56
$
$

GAAP (1)FQ3-18
$
7,797
$
4,723
60.6%
$
3,953
50.7%
$
3,823
$
3.10

FQ4-17
6,138
3,112
50.7%
$
2,502
40.8%
$
2,368
$
1.99
$
$

Non-GAAP (2)FQ4-18
FQ3-18
FQ4-17$8,440 $
7,797 $
6,138$
5,179 $
4,750 $
3,147
61.4%
60.9%
51.3%
$
4,439 $
4,017 $
2,546
52.6%
51.5%
41.5%
$
4,313 $
3,898 $
2,386$
3.53 $
3.15 $
2.02

Annual Financial Results
GAAP (1)(in millions, except per share amounts)
Revenue
Gross margin
percent of revenue
Operating income
percent of revenue

$
$
$

FY 18
30,391 $17,891 $58.9%
14,994 $
49.3%

FY 17
20,322
8,436
41.5%
5,868
28.9%

$
$
$

Non-GAAP (2)
FY 18
FY 17
30,391 $
20,322
17,994 $
8,639
59.2%
42.5%
15,243 $
6,232
50.2%
30.7%

Net income attributable to Micron
Diluted earnings per share$$

14,135 $11.51 $

5,089
4.41

$
$

14,700 $11.95 $

5,648
4.96

Revenues for the fourth quarter of 2018 were 8 percent higher compared to the third quarter of 2018, reflecting increased
demand broadly across our products and end markets. Our overall gross margin was 61.0 percent for the fourth quarter of2018 compared to 60.6 percent in the third quarter benefiting from strong execution across our product portfolio.
Investments in capital expenditures, net of amounts funded by partners, were $2.06 billion for the fourth quarter of 2018 and$8.20 billion for the full year of 2018, which resulted in adjusted free cash flows(3) of $3.09 billion for the fourth quarter of2018 and $9.20 billion for the full year of 2018. We repurchased or converted $2.23 billion principal amount of our debt
during the quarter and $6.96 billion for the full year of 2018, lowering our total carrying value of debt to $4.64 billion exiting
the fiscal year. We ended the fourth quarter in a record net cash position of $2.72 billion with cash, marketable investments,
and restricted cash of $7.36 billion.
We will host a conference call on Thursday, September 20, 2018 at 2:30 p.m. MT to discuss our financial results. The call,audio, and slides will be available online at investors.micron.com. A webcast replay will be available on our website until
September 20, 2019. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-8592056 (conference number: 5685754) beginning at 5:30 p.m. MT, Thursday, September 20, 2018 and continuing throughThursday, September 27, 2018. For Investor Relations and other company updates, follow @MicronTech on Twitter attwitter.com/MicronTech.
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 oftechnology leadership, our memory and storage solutions enable disruptive trends, including artificial intelligence, machinelearning, and autonomous vehicles, in key market segments like cloud, data center, networking and mobile. Our common
stock is traded on the NASDAQ under the MU symbol. To learn more about Micron Technology, Inc., visit micron.com.
The Micron logo and Micron symbol are trademarks of Micron Technology, Inc. All other trademarks are the property of
their respective owners.
This press release contains forward-looking statements regarding the industry and our strategic position and financial
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 the documents we file with the Securities and Exchange Commission, specifically our mostrecent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual
results to differ materially from those contained in these forward-looking statements. These certain factors can be found atwww.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements arereasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to
update any of the forward-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 our management excludes in analyzing ouroperating results and understanding trends in our earnings. Non-GAAP also includes the impact on shares used in per
share calculations of our outstanding capped call transactions and from the exclusion of stock-based compensation. For areconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.
(3) Adjusted free cash flow consists of cash provided by operating activities of $5.16 billion for the fourth quarter of 2018 and$17.40 billion for the full year of 2018 less investments in capital expenditures, net of amounts funded by partners, for therespective periods.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY(in millions except per share amounts)

Net sales
Cost of goods sold4th Qtr.
3rd Qtr.
4th Qtr.
Year Ended
August 30, May 31, August 31, August 30, August 31,
2018
2018
2017
2018
2017
$
8,440 $ 7,797 $
6,138 $ 30,391 $ 20,322
3,289
3,074
3,026
12,50011,886

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

Operating income
Interest income (expense), net
Other non-operating income (expense), net (1)(2)

Income tax (provision) benefit
Equity in net income (loss) of equity method investees
Net (income) attributable to noncontrolling interests
Net income attributable to Micron

$

5,151
215
567
(8 )
4,377
(16 )

4,723
211
603
(44 )
3,953
(44 )

3,112
193
447
(30 )
2,502
(132 )

17,891
813
2,141
(57 )
14,994(222 )

8,436
743
1,824
1
5,868
(560 )(15 )(193 )(49 )(465 )(112 )

(20 )
109
—
(2 )
(1 )
—
4,325 $ 3,823 $

47
1
(1 )
2,368 $

(168 )(1 )(3 )14,135 $(114 )
8
(1 )
5,089

3.73
3.56

2.13
1.99

12.27
11.51

4.67
4.41

Earnings per share

Basic
Diluted

$

$

3.30
3.10

$

$

$

Number of shares used in per share calculations

Basic
Diluted

1,159
1,216

1,159
1,235

1,109
1,187

1,152
1,229

1,089
1,154

CONSOLIDATED FINANCIAL SUMMARY, Continued
August 30,
2018
6,802
5,478
3,595
16,039473
23,672
81
43,376

May 31,
2018
$
7,071
4,912
3,369
15,499487
22,705
119
41,845

Accounts payable and accrued expenses

4,611

3,998

3,664

Current debt (1)Total current liabilities

859
5,754

1,454
5,883

1,262
5,334

Long-term debt (1)

3,777

5,890

9,872

Total Micron shareholders' equity (3)Noncontrolling interests in subsidiaries
Total equity

32,294
870
33,16428,649869
29,51818,621
849
19,470

As ofCash and short-term investments
Receivables
Inventories
Total current assets
Long-term marketable investments
Property, plant, and equipment, net
Restricted cash
Total assets

Net cash provided by operating activities
Net cash provided by (used for) investing activities
Net cash provided by (used for) financing activities
Depreciation and amortization

$

$

$

August 31,
2017
5,428
3,759
3,123
12,457617
19,431
107
35,336

Year Ended
August 30,
August 31,
2018
2017
17,400$8,153(8,216 )(7,537 )(7,776 )
349
4,860

3,986

Investments in capital expenditures
Acquisition of Inotera
Repayments of debt

(9,085 )—(10,194 )(5,253 )(2,634 )(2,558 )

(3)

1,655
1,009

142
3,311

Proceeds from issuance of stock
Proceeds from issuance of debt

1. In the fourth quarter of 2018, we prepaid or repurchased debt with an aggregate principal amount of $2.00 billion andrecognized non-operating losses of $9 million. In addition, we settled convertible notes with an aggregate principal
amount of $228 million for cash of $1.27 billion and recognized non-operating gains of $25 million. As of August 30,
2018, $35 million of aggregate principal amount of our convertible notes had converted but will not settle until the firstquarter of 2019. As a result of the unsettled conversions, the carrying value of debt increased by $132 million as ofAugust 30, 2018 and we recognized non-operating losses of $15 million in the fourth quarter of 2018.
In the third quarter of 2018, we prepaid debt with an aggregate principal amount of $2.08 billion and recognized nonoperating losses of $42 million. In addition, we repurchased or settled convertible notes with an aggregate principal
amount of $228 million for cash of $1.11 billion and recognized non-operating losses of $32 million. In the second
quarter of 2018, we settled convertible notes with an aggregate principal amount of $65 million for cash of $295
million. In the first quarter of 2018, we redeemed notes with an aggregate principal amount of $2.25 billion for cash of$2.42 billion and recognized non-operating losses of $190 million.
During 2018, Intel Corporation provided non-interest bearing convertible debt financing of $1.01 billion to IM Flash
Technologies, LLC ("IMFT") pursuant to the terms of the IMFT joint venture agreement.
2. On December 22, 2017, the United States enacted comprehensive tax legislation commonly referred to as the Tax
Cuts and Jobs Act (the "Tax Act") which lowers the U.S. corporate income tax rate from 35% to 21% and significantly
affects how income from foreign operations is taxed in the United States. As a result of our fiscal year-end, our U.S.
statutory federal rate was 25.7% for 2018 (based on the 35% corporate rate through December 31, 2017 and 21%
from that date through the end of fiscal year 2018) and will be 21% for subsequent years. The Tax Act imposed a
one-time transition tax in 2018 on the higher of accumulated foreign income, as determined as of November 2, 2017or December 31, 2017 (the "Repatriation Tax"); provided a U.S. federal tax exemption on foreign earnings distributed
to the United States; and, beginning in 2019, creates a new minimum tax on certain foreign earnings in excess of adeemed return on tangible assets (the "Foreign Minimum Tax"). The Tax Act allows us to elect to pay any
Repatriation Tax due in eight annual interest-free payments in increasing amounts beginning in December 2018.
The Securities and Exchange Commission Staff Accounting Bulletin No. 118 allows the use of provisional amounts(reasonable estimates) if our analyses of the impacts of the Tax Act has not been completed when our financial
statements are issued. The provisional amounts below were revised during 2018 and represent reasonable estimatesof the effects of the Tax Act for which the analysis is not yet complete. Our income tax (provision) benefit consisted of
the following:

4th Qtr.
August30,
2018
Provisional estimate for the Repatriation Tax, net of adjustments
related to uncertain tax positions
Remeasurement of deferred tax assets and liabilities reflecting thelower U.S. corporate tax rates
Provisional estimate for the release of the valuation allowance on the
net deferred tax assets of our U.S. operations
Utilization of and other changes in net deferred tax assets of MMJ,
MMT, and MTTW
Other income tax (provision) benefit

$

$

3rd
Qtr.
May
31,
2018

4th Qtr.
August31,
2017

Year Ended
AugustAugust
30,
31,
2018
2017

$

—

$ (1,030 ) $

—

83

$ 222

—

—

—

(133 )

—

—

—

—

1,337

—

10
(35 )
(113 )(78 )(20 ) $ 109 $

106
(59 )
47

$

(68 )
(274 )(168 ) $3. In October 2017, we issued 34 million shares of our common stock in a public offering for $41.00 per share forproceeds of $1.36 billion, net of underwriting fees and other offering costs.

54(168 )(114 )

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

Net sales
Cost of goods sold

Gross margin
percent of revenue
Selling, general, andadministrative
Research and development
Other operating (income) expense,
net

Operating expenses
Operating income (loss)
percent of revenue
Interest income (expense), net
Other non-operating income(expense), net

Income tax (provision) benefit
Equity in net income (loss) ofequity method investees

Net income (loss)

4th Qtr.
August 30, 2018
NonGAAPAdj
GAAP$ 8,440 $— $ 8,440
3,289
(28 )
3,261
5,151
28
5,179
61.0%
61.4%

4th Qtr.
August 31, 2017
NonGAAPAdj
GAAP$ 6,138 $ — $ 6,138
3,026
(35 )
2,991
3,112
35
3,147
50.7%
51.3%

215
567

(13 )
(14 )

202
553

211
603

(14 )
(15 )

197
588

193
447

(22 )
(14 )

171
433

(8 )
774
4,377
51.9%

(7 )
(34 )
62

(15 )
740
4,439
52.6%

(44 )
770
3,953
50.7%

(8 )
(37 )
64

(52 )
733
4,017
51.5%

(30 )
610
2,502
40.8%

27
(9 )
44

(3 )
601
2,546
41.5%

(16 )

23

7

(44 )

23

(21 )

(132 )

32(100 )

(15 )
4,346

14
99

(1 )
4,445

(193 )
3,716

194
281

1
3,997

(49 )
2,321

49
125

—
2,446

(20 )

(111 )(131 )

109(206 )(97 )

47(107 )

(60 )

—
4,326

—
(12 )

—
4,314

(2 )
3,823

—
75

(2 )
3,898

1
2,369

—
18

1
2,387

(1 )

—

(1 )

—

—

—

(1 )

—

(1 )

$

3,823 $

75 $

3,898

$ 2,368 $

18 $

2,386

$

1,235
3
3.10 $ 0.05 $

1,238
3.15

1,187
(6 )
$ 1.99 $ 0.03 $

1,181
2.02

Net income (loss) attributable tononcontrolling interests

Net income (loss) attributable to$ 4,325 $ (12 ) $Micron4,313

Shares used in calculations
Diluted earnings (loss) per share

1,220
3.53

1,216
4
$ 3.56 $ (0.03 ) $Net sales
Cost of goods sold

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

Operating expenses
Operating income (loss)
percent of revenue

3rd Qtr.
May 31, 2018
NonGAAPAdj
GAAP$ 7,797 $ — $ 7,797
3,074
(27 )
3,047
4,723
27
4,750
60.6%
60.9%

Year EndedYear Ended
August 30, 2018
August 31, 2017
GAAP
Adj Non-GAAP
GAAP
Adj Non-GAAP$ 30,391 $ — $ 30,391 $ 20,322 $ — $ 20,322
12,500(103 )
12,397
11,886(203 )
11,683
17,891103
17,994
8,436
203
8,639
58.9%
59.2%
41.5%
42.5%
813
2,141
(57 )
2,897
14,994
49.3%

(61 )
(57 )
(28 )
(146 )
249

752
2,084
(85 )
2,751
15,243
50.2%

743
1,824
1
2,568
5,868
28.9%

(88 )
(55 )
(18 )
(161 )
364

655
1,769
(17 )
2,407
6,232
30.7%

Interest income (expense), net
Other non-operating income (expense), net(222 )(465 )
14,307

101
465
815

(121 )—
15,122(560 )(112 )
5,196

125
112
601

(435 )—
5,797

Income tax (provision) benefit
Equity in net income (loss) of equity method investees(168 )(1 )14,138(250 )—
565(418 )(1 )
14,703(114 )
8
5,090

(59 )
17
559

(173 )
25
5,649

(3 )
14,700 $(1 )—5,089 $ 559 $

(1 )
5,648

1,230
11.95

1,154
(14 )
4.41 $ 0.55 $

1,140
4.96

Net income (loss)
Net income (loss) attributable to noncontrolling interests

Net income (loss) attributable to Micron(3 )—$ 14,135 $ 565 $Shares used in calculations
Diluted earnings (loss) per share

$

1,229
1
11.51 $ 0.44 $$MICRON TECHNOLOGY, INC.
NON-GAAP ADJUSTMENTS(in millions)
4th Qtr.
August30, 2018

3rd Qtr.
May 31,2018$$

4th Qtr.
August31, 2017

Year Ended
AugustAugust30, 2018
31, 2017

Non-GAAP adjustments

Cost of goods sold
Stock-based compensation
Flow-through of Inotera inventory step up
Other

Selling, general, and administrative
Stock-based compensation
Inotera acquisition costs

21
—
7
28

20
—
7
27

$

22
11
2
35

$

83
—
20
103

$

88
107
8
203

13
—
13

14
—
14

22
—
22

61
—
61

75
13
88

13
1
14

14
1
15

13
1
14

54
3
57

52
3
55

Other operating (income) expense, net
Restructure and asset impairments

7

8

(27 )

28

18

Interest income (expense), net
Amortization of debt discount and other costs

23

23

32

101

125

(1 )
15
—
—
14

168
24
—
2
194

37
12
—
—
49

385
75
—
5
465

100
74
(71 )
9
112

Research and development
Stock-based compensation
Other

Other non-operating income (expense)(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates(Gain) loss from business acquisition activities
Other

Income taxes

Impact of U.S. income tax reform
Estimated tax effects of above, including tax benefits fromstock-based compensation, and non-cash changes in net
deferred income taxes

Equity in net income (loss) of equity method investments
Impairment of equity method investments
Other
$

(83 )

(222 )—(174 )—(28 )(111 )

16(206 )(107 )(107 )(76 )(250 )

(59 )
(59 )

—
—
—
(12 )

—
—
—
75

—
—
—
18

—
—
—
565

16
1
17
559

$

$

$

$

The tables above reconcile GAAP to non-GAAP results, diluted shares, and diluted earnings per share. The non-GAAP
adjustments above may or may not be infrequent or nonrecurring in nature but are a result of periodic or non-core
operating activities. We believe this non-GAAP information is helpful to understanding trends and in analyzing 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 believethese non-GAAP financial measures increase transparency 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 vary from numbers presented 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;
 Restructure and asset impairments;
 Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated withour convertible 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 loss from business acquisition activities;
 Impact of the U.S. income tax reform for provisional estimate of Repatriation Tax, release of U.S. valuation allowance,and remeasurement of net deferred taxes reflecting the lower U.S. corporate tax rates: The estimated tax effects of above, including tax benefits from stock-based compensation, and non-cash changes in
net deferred taxes; and Impairments of equity method investments.


Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate thedilutive effect of our convertible notes. In periods with non-GAAP income attributable to Micron, non-GAAP diluted shares
include the impact of the 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.
Contacts:
Farhan Ahmad
Investor Relations
farhanahmad@micron.com(408) 834-1927
David OroMedia Relations
davidoro@micron.com(707) 558-8585