December 19, 2017

Micron Technology, Inc., Reports Results for the First Quarter of Fiscal 2018
Robust revenue and profitability growth supported by focused execution on strategic priorities
BOISE, Idaho, Dec. 19, 2017 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ:MU) today announced results ofoperations for its first quarter of fiscal 2018, which ended November 30, 2017.
Fiscal Q1 2018 Highlights
Revenues of $6.80 billion, 71 percent higher compared with the same period last year
GAAP net income of $2.68 billion, or $2.19 per diluted share Non-GAAP net income of $2.99 billion, or $2.45 per diluted share Operating cash flow of $3.64 billion, 220 percent higher compared with the same period last year"Micron's strong results were driven by double-digit sequential revenue growth in mobile, server and SSD applications, withexpanded gross margins and improved profitability," said Micron President and CEO Sanjay Mehrotra.
"We are making solid progress on our strategic priorities to drive cost competitiveness, deploy high value solutions andstrengthen our balance sheet. We believe these actions will position Micron to benefit from the broad demand trends aheadof us."
Quarterly Financial Results
GAAP (1)(in millions except per shareamounts)
Net sales
Gross margin
percent of net sales
Operating income
percent of net sales
Net income attributable to Micron
Diluted earnings per share

$$
$
$
$

FQ1-18
6,803
3,747
55.1%
3,097
45.5%
2,678
2.19$
$
$
$
$

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

Non-GAAP (2)

$
$
$
$
$

FQ1-17
3,970
1,011
25.5%
359
9.0%
180
0.16

$
$
$
$
$

FQ1-186,8033,769
55.4%
3,157
46.4%
2,994
2.45$
$
$
$
$

FQ4-17
6,138
3,147
51.3%
2,546
41.5%
2,386
2.02$
$
$
$
$

FQ1-17
3,970
1,032
26.0%
438
11.0%
335
0.32

Revenues for the first quarter of 2018 were 11 percent higher compared to the fourth quarter of 2017, reflecting increased
demand for our mobile, server, and SSD products. Our overall consolidated gross margin of 55.1 percent for the firstquarter of 2018 was higher compared to 50.7 percent for the fourth quarter of 2017 and reflects margin expansion for bothDRAM and Trade NAND products supported by ongoing strength in the pricing environment and a favorable product mix.
Investments in capital expenditures, net of amounts funded by partners, were $1.92 billion for the first quarter of 2018.
During the quarter, we raised $1.36 billion from an equity offering and repurchased or converted $2.36 billion principal
amount of our debt, lowering our total face value debt to $9.34 billion exiting the quarter. We ended the first quarter withcash, marketable investments, and restricted cash of $6.61 billion.
We will host a conference call on Tuesday, December 19, 2017 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
December 19, 2018. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-8592056 (conference number: 2696628) beginning at 5:30 p.m. MT, Tuesday, December 19, 2017 and continuing throughTuesday, December 26, 2017. 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 nearly 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. 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 toupdate 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.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY(in millions except per share amounts)
1st Qtr.
November 30,
2017
$
6,803
3,056
3,747
191
448
113,097

4th Qtr.
August 31,
2017
$
6,138
3,026
3,112
193
447
(30 )
2,502

1st Qtr.
December 1,
2016
$
3,970
2,959
1,011
159
470
23359

Interest income (expense), net (1)(101 )(132 )(132 )

Other non-operating income (expense), net (1)(204 )

(49 )

(14 )

(114 )
——
2,678

47
1(1 )
2,368

(31 )
(2 )
—180

Net sales
Cost of goods sold
Gross margin

Selling, general, and administrative
Research and development
Other operating (income) expense, net
Operating income(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$$$

Earnings per share
Basic
Diluted

$

2.36
2.19$

2.13
1.99

$

0.17
0.16

Number of shares used in per share calculations
Basic
Diluted

1,134
1,225

1,109
1,187

1,040
1,091

CONSOLIDATED FINANCIAL SUMMARY, Continued

As ofNovember 30,2017

August 31,2017

Cash and short-term investments
Receivables
Inventories
Total current assets
Long-term marketable investments
Property, plant, and equipment, net
Total assets

$

6,174
3,876
3,160
13,358314
20,72337,191

$

5,428
3,759
3,123
12,457617
19,43135,336

Accounts payable and accrued expenses

3,766

3,664

Current debt (1)

1,401
5,583

1,262
5,334

7,644

9,872

22,526867
23,393

18,621
849
19,470Total current liabilities
Long-term debt

(1)

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

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

Quarter Ended
November 30,December 1,2017
2016
3,636
$
1,138$(a)Depreciation and amortization
Investments in capital expenditures
Proceeds from issuance of debt
Repayments of debt

(1,434 )(1,282 )(936 )(212 )

1,119(2,089 )
150(2,744 )803(1,288 )16(188 )(a) December 1, 2016 amount adjusted for the retrospective adoption of ASU 2016-18 — Restricted Cash.

(1) In the first quarter of 2018, we redeemed our 2023 Secured Notes and 2023 Notes with an aggregate principal amountof $2.25 billion for cash of $2.42 billion and recognized non-operating losses of $190 million. In the fourth quarter of 2017,
we redeemed our 2022 Notes with a principal amount of $600 million and recognized a non-operating loss of $34 million.
(2) Our income taxes reflect operations in tax jurisdictions, including Singapore and Taiwan, where our earnings areindefinitely reinvested and the tax rates are significantly lower than the U.S. statutory rate; operations outside the UnitedStates, including Singapore, where we have tax incentive arrangements that further decrease our effective tax rates; and avaluation allowance against substantially all of our net deferred tax assets in the United States. Income tax (provision)
benefit consisted of the following (in millions):
1st Qtr.
November
30,
2017
Utilization of and other changes in net deferred tax assets of MMJ, MMT, andMTTW
Other income tax (provision) benefit, primarily other non-U.S. operations$$(26 )
(88 )(114 )

4th Qtr.
August31,
2017$$

1st Qtr.
December1,2016

106 $
(59 )
47 $

(13 )
(18 )
(31 )

We have a full valuation allowance for our net deferred tax asset associated with our U.S. operations. The amount of thedeferred tax asset considered realizable could be adjusted if significant positive evidence increases. Income taxes on U.S.
operations in the first quarters of 2018 and 2017 were substantially offset by changes in the valuation allowance.
(3) In October 2017, we issued 34 million shares of our common stock for $41.00 per share in a public offering, forproceeds of $1.36 billion, net of underwriting fees and other offering costs.

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 net sales

1st Qtr.
November 30, 2017
NonGAAPAdj
GAAP$ 6,803 $ — $ 6,803
3,056
(22 )
3,034
3,747
223,769
55.1%
55.4%

Selling, general, andadministrative
Research anddevelopment
Other operating(income) expense,net
Operating expenses
Operating income
percent of net sales

Interest income(expense), net
Other non-operating
income (expense),
net

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

Net income (loss)
attributable tononcontrollinginterests
Net income
attributable to Micron$

Shares used in
calculations
Diluted earnings pershare$

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%

1st Qtr.
December 1, 2016
NonGAAPAdj
GAAP$ 3,970 $ — $ 3,970
2,959
(21 )
2,938
1,011
21
1,032
25.5%
26.0%

191(18 )173

193(22 )171

159(16 )

143

448

(14 )

434

447

(14 )

433

470(13 )

457

11
650
3,097
45.5%

(6 )
(38 )
60

5612
3,157
46.4%

(30 )
610
2,502
40.8%

27(9 )
44(3 )
601
2,546
41.5%

23
652
359
9.0%

(29 )
(58 )
79(6 )
594
438
11.0%

(101 )

29(72 )

(132 )

32(100 )(132 )

32(100 )(204 )
2,792

204
293

—
3,085

(49 )
2,321

49125

—
2,446

(14 )
213

14125

—
338

(114 )

23(91 )

47(107 )(60 )(31 )13(18 )—
2,678—
316—
2,994

1
2,369—
18

12,387

(2 )
180

17155

15335—

——

(1 )

—

(1 )

——

—

180

$ 155 $

335

1,091

(29 )

1,062

0.16

$ 0.16 $

0.32

2,678

$ 316 $

2,994

1,225

(5 )

1,220

2.19$ 0.26 $

2.45$

$

2,368$

18 $

2,386

1,187

(6 )

1,181

1.99

$ 0.03 $2.02$$

MICRON TECHNOLOGY, INC.
NON-GAAP ADJUSTMENTS(in millions)
1st Qtr.
4th Qtr.
1st Qtr.
November 30, August 31, December 1,2017
2017
2016
Non-GAAP adjustments

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

$

Other

20—
222$

22
11235$

19—
221

Selling, general, and administrative

18—
18

22—
22

15
116

13
1
14

13
1
14

12
1
13

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

6(27 )

29

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

29

32

32

195
9204

37
1249

2
12
14

23(107 )13———316———
18

16
117
155

Stock-based compensation
Other

Research and developmentStock-based compensation
Other

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

Income taxes
Estimated tax effects of above and non-cash changes in net deferred income taxes
Equity in net income (loss) of equity method investments
Impairment of equity method investments
Other$$$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;
 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 installment debt;
 Losses from debt repurchases and conversions; Gains and losses from changes in currency exchange rates; The estimated tax effects of above and non-cash changes in net deferred income 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:Shanye Hudson
Investor Relations
shudson@micron.com(208) 492-1205
Marc Musgrove
Media Relations
mmusgrove@micron.com(208) 363-2405