Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2022
June 30, 2022
Multiple end-market and product revenue records reflect broad portfolio momentum
BOISE, Idaho, June 30, 2022 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal
2022, which ended June 2, 2022.
Fiscal Q3 2022 highlights

Revenue of $8.64 billion versus $7.79 billion for the prior quarter and $7.42 billion for the same period last year
GAAP net income of $2.63 billion, or $2.34 per diluted share
Non-GAAP net income of $2.94 billion, or $2.59 per diluted share
Operating cash flow of $3.84 billion versus $3.63 billion for the prior quarter and $3.56 billion for the same period last year
“Micron delivered record revenue in the fiscal third quarter driven by our team’s excellent execution across technology, products and manufacturing,”
said Micron Technology President and CEO Sanjay Mehrotra. “Recently, the industry demand environment has weakened, and we are taking action tomoderate our supply growth in fiscal 2023. We are confident about the long-term secular demand for memory and storage and are well positioned todeliver strong cross-cycle financial performance.”
Quarterly Financial Results
GAAP(1)(in millions, except per share amounts)
Revenue
Gross margin
percent of revenue
Operating expenses
Operating income
percent of revenue
Net income
Diluted earnings per share

FQ3-22
$

8,642
4,035
46.7%
1,031
3,004
34.8%
2,626
2.34

Non-GAAP(2)FQ2-22
$

7,786
3,676
47.2%
1,130
2,546
32.7%
2,263
2.00

FQ3-21
$

7,422
3,126
42.1%
1,327
1,799
24.2%
1,735
1.52

FQ3-22
$

8,642
4,097
47.4%
953
3,144
36.4%
2,939
2.59

FQ2-22
$

7,786
3,724
47.8%
974
2,750
35.3%
2,444
2.14

FQ3-21
$

7,422
3,185
42.9%
821
2,364
31.9%
2,173
1.88

Investments in capital expenditures, net(2) were $2.53 billion for the third quarter of 2022, which resulted in adjusted free cash flow(2) of $1.31 billion.
Micron repurchased approximately 13.8 million shares of its common stock for $981 million during the third quarter of fiscal 2022 and ended thequarter with cash, marketable investments, and restricted cash of $11.98 billion, for a net cash(2) position of $5.01 billion.
On June 30, 2022, our Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 26, 2022, to shareholders ofrecord as of the close of business on July 11, 2022.
Business Outlook
The following table presents Micron’s guidance for the fourth quarter of 2022:
FQ4-22
Revenue
Gross margin
Operating expenses
Diluted earnings per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$7.2 billion ± $400 million
41.5% ± 1.5%
$1.13 billion ± $25 million$1.52 ± $0.20$7.2 billion ± $400 million
42.5% ± 1.5%
$1.05 billion ± $25 million$1.63 ± $0.20

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, June 30, 2022 at 2:30 p.m. Mountain time to discuss its third quarter financial results and provide
forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will beavailable for one year after the call. 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 transforming how the world uses information to enrich life for all. With arelentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of
high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations thatour people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data
center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU),
visit micron.com.
© 2022 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property 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 our industry, demand for our products, our strategic position, and our financial andoperating 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 most recent 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 theseforward-looking statements. These certain factors can be found at 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 noduty to update any of the forward-looking statements 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, adjusted free cash flow, net cash, and business outlook. 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 STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited)
3rd Qtr.
June 2,
2022
Revenue$

Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments
Other operating (income) expense, net
Operating income
Interest income
Interest expense
Other non-operating income (expense), net

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

2nd Qtr.
March 3,2022

3rd Qtr.
June 3,2021

Nine months ended
June 2,June 3,2022
2021

8,642 $
4,607

7,786 $
4,110

7,422 $
4,296

24,115 $12,83919,431
12,920

4,035

3,676

3,126

11,276

6,511

773
264
—
(6)

792
263
5
70

670
230
453
(26)

2,277
786
43
(11)

1,958
658
466
101

3,004

2,546

1,799

8,181

3,328

20
(44)
8

12
(55)
6

8
(46)
45

42
(144)
(61)

28
(136)
62

2,988

2,509

1,806

8,018

3,282

(358)
(4)

(255)
9

(65)
(6)

(832)
9

(164)
23

Net income$

2,626 $

2,263 $

1,735 $

7,195 $

3,141

Earnings per share
Basic
Diluted$2.36 $
2.34

2.02 $
2.00

1.55 $
1.52

6.44 $
6.38

2.81
2.75

1,112
1,121

1,119
1,130

1,121
1,145

1,117
1,127

1,119
1,141

Number of shares used in per share calculations
Basic
Diluted

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)

(Unaudited)
June 2,2022

As ofAssetsCash and equivalents
Short-term investments
Receivables
Inventories
Assets held for sale$

March 3,2022

September 2,
2021

9,157 $
1,070
6,229
5,629
15
608

9,116 $
1,006
5,384
5,383
13
600

7,763
870
5,311
4,487
974
502

22,708
1,646
36,665
690
415
682
1,228
1,262

21,502
1,717
36,171
587
414
762
1,228
1,315

19,907
1,765
33,213
551
349
782
1,228
1,054

$

65,296 $63,696 $58,849$5,788 $
107
1,114

5,650 $
123
1,145

5,325
155
944

Other noncurrent liabilities

7,009
6,856
629
663
858

6,918
6,953
535
704
741

6,424
6,621
504
808
559

Total liabilities

16,01515,851

14,916122
9,950
45,916(6,343)
(364)

122
9,816
43,407(5,362)
(138)

122
9,453
39,051(4,695)2

49,28147,84543,93365,296 $63,696 $58,849Other current assets
Total current assets
Long-term marketable investments
Property, plant, and equipment
Operating lease right-of-use assets
Intangible assets
Deferred tax assets
Goodwill
Other noncurrent assets
Total assets
Liabilities and equity
Accounts payable and accrued expenses
Current debt
Other current liabilities
Total current liabilities
Long-term debt
Noncurrent operating lease liabilities
Noncurrent unearned government incentives

Commitments and contingencies
Shareholders’ equity
Common stock
Additional capital
Retained earnings
Treasury stock
Accumulated other comprehensive income (loss)
Total equity$

Total liabilities and equity

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
June 2,2022

Nine months ended
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense and amortization of intangible assets
Stock-based compensation(Gain) loss on debt repurchases and conversions
Restructure and asset impairments
Change in operating assets and liabilities
Receivables$

June 3,
2021

7,195 $

3,141

5,234
378
83
43

4,593
285
1
446

(906)

(340)

Inventories
Accounts payable and accrued expenses
Other(1,146)
382
141

814
(309)
(47)

Net cash provided by operating activities

11,4048,584(8,454)(1,359)
888
964
258
104
(162)

(8,015)(1,919)
—
1,024
473
335
47

(7,761)(8,055)(2,008)(1,648)
(335)
(132)
(116)
2,000
99

(1,344)
(150)
—
(139)
(84)
1,188
92

(2,140)

(437)

(71)

44

1,432
7,829

136
7,690

9,261 $

7,826

Cash flows from investing activities
Expenditures for property, plant, and equipment
Purchases of available-for-sale securities
Proceeds from sale of Lehi, Utah fab
Proceeds from maturities of available-for-sale securities
Proceeds from sales of available-for-sale securities
Proceeds from government incentives
Other
Net cash provided by (used for) investing activities
Cash flows from financing activities
Repayments of debt
Repurchases of common stock - repurchase program
Payments of dividends to shareholders
Payments on equipment purchase contracts
Repurchases of common stock - withholdings on employee equity awards
Proceeds from issuance of debt
Other
Net cash provided by (used for) financing activities
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash
Net increase (decrease) in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period
Cash, cash equivalents, and restricted cash at end of period$

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Lehi, Utah Fab and 3D XPoint
In the second quarter of 2021, we updated our portfolio strategy to further strengthen our focus on memory and storage innovations for the data center
market. In connection therewith, we determined that there was insufficient market validation to justify the ongoing investments required tocommercialize 3D XPoint at scale. Accordingly, we ceased development of 3D XPoint technology and engaged in discussions with potential buyers forthe sale of our facility located in Lehi that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as held
for sale and ceased depreciating the assets. On June 30, 2021, we announced a definitive agreement to sell our Lehi facility to Texas Instruments
Incorporated (“TI”) and closed the sale on October 22, 2021.
In the first quarter of 2022, we received $893 million from TI for the sale of the Lehi facility and disposed of $918 million of net assets, consisting
primarily of property, plant, and equipment of $921 million; $55 million of other assets, consisting primarily of a receivable for reimbursement ofproperty taxes, equipment spare parts, and raw materials; and $58 million of liabilities, consisting primarily of a finance lease obligation. As a result of
the disposition of the Lehi facility, we recognized a loss of $23 million included in restructure and asset impairments in the first quarter of 2022.
In the third quarter of 2021, we recognized a charge of $435 million included in restructure and asset impairments in connection with the definitive
agreement with TI (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expectedconsideration, net of estimated selling costs. In the second quarter of 2021, we also recognized a charge of $49 million in cost of goods sold to write
down 3D XPoint inventory in connection with our decision to cease further development of this technology.
Debt Activity
On November 1, 2021, we issued in a public offering $1.00 billion in principal amount of 2.703% senior notes due 2032 (green bonds), $500 million inprincipal amount of 3.366% senior notes due 2041, and $500 million in principal amount of 3.477% senior notes due 2051, and received aggregate net
proceeds of $1.99 billion.
On November 17, 2021, we redeemed $1.25 billion in principal amount of our 2.497% senior notes due 2023 and $600 million in principal amount of
our 4.640% senior notes due 2024 for $1.93 billion in cash and recognized a non-operating loss of $83 million.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
3rd Qtr.
June 2,2022
GAAP gross margin
Stock-based compensation

2nd Qtr.
March 3,2022

3rd Qtr.
June 3,2021$

4,035 $
57
5

3,676 $
44
4

3,126
45
14

Non-GAAP gross margin$

4,097 $

3,724 $

3,185

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments$

1,031 $
(78)——

1,130 $
(75)
(5)
(76)

1,327
(53)
(453)
—

Non-GAAP operating expenses

$

953 $

974 $

821

GAAP operating income
Stock-based compensation
Restructure and asset impairments$

3,004 $
135—
52,546 $
119
5
80

1,799
98
453
14

Non-GAAP operating income$

3,144 $

2,750 $

2,364

GAAP net income
Stock-based compensation
Restructure and asset impairments
Amortization of debt discount and other costs
Other
Impact of Idaho income tax reform$

2,626 $
135
—
8
5
189
(24)

2,263 $
119
5
8
80
—
(31)

1,735
98
453
7
15
—
(135)

$

2,939 $

2,444 $

2,173

1,121
15

1,130
13

1,145
9

1,136

1,143

1,154

$

2.34 $
0.25

2.00 $
0.14

1.52
0.36

$

2.59 $

2.14 $

1.88

Other

Other

Other

Estimated tax effects of above and other tax adjustments
Non-GAAP net income
GAAP weighted-average common shares outstanding - Diluted
Adjustment for stock-based compensation
Non-GAAP weighted-average common shares outstanding - Diluted
GAAP diluted earnings per share
Effects of the above adjustments
Non-GAAP diluted earnings per share

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
3rd Qtr.
June 2,2022
GAAP net cash provided by operating activities$

Expenditures for property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Payments on equipment purchase contracts
Amounts funded by partners
Investments in capital expenditures, net
Adjusted free cash flow$

Cash and short-term investments$

3rd Qtr.
June 3,2021

3,838 $

3,628 $

3,560

(2,578)39(27)
38(2,611)27(27)
11(2,259)
74
(16)
159

(2,528)(2,600)(2,042)

1,310 $

1,028 $

1,518

June 2,
2022

As of

2nd Qtr.
March 3,2022

10,227 $March 3,2022
10,122 $September 2,
2021
8,633

Current and noncurrent restricted cash
Long-term marketable investments
Current and long-term debt$

Net cash

104
1,646(6,963)108
1,717(7,076)66
1,765(6,776)

5,014 $

4,871 $

3,688

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, 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 in nature,
but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in 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. Whenevaluating 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 increase transparency
by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of ouroperating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented inaccordance 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;
Employee severance;
Gains and losses from settlements and patent license charges;
Restructure and asset impairments;
Amortization of debt discount and other costs;
Gains and losses from debt repurchases and conversions;
Gains and losses from business acquisition activities; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures,certain tax matters related to prior fiscal periods, and significant changes in tax law.
Non-GAAP diluted shares are 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
FQ4-22
Revenue
Gross margin
Operating expenses
Diluted earnings per share(1)GAAP Outlook

Adjustments$7.2 billion ± $400 million
41.5% ± 1.5%
$1.13 billion ± $25 million—
1%$83 million$1.52 ± $0.20

$0.11

A
B

Non-GAAP Outlook$7.2 billion ± $400 million
42.5% ± 1.5%
$1.05 billion ± $25 million

A, B, C

$1.63 ± $0.20

Non-GAAP Adjustments(in millions)
A Stock-based compensation – cost of goods sold
A Other – cost of goods sold
B Stock-based compensation – research and development
B Stock-based compensation – sales, general, and administrative

$

45
4
48
35
(9)

$

123

C Tax effects of the above items and other tax adjustments(1) GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings per share 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