Micron Technology, Inc. Reports Results for the First Quarter of Fiscal 2022
December 20, 2021
On track for record revenue and solid profitability in fiscal 2022
BOISE, Idaho, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its first quarter of fiscal
2022, which ended Dec. 2, 2021.
Fiscal Q1 2022 highlights

Revenue of $7.69 billion versus $8.27 billion for the prior quarter and $5.77 billion for the same period last year
GAAP net income of $2.31 billion, or $2.04 per diluted share
Non-GAAP net income of $2.47 billion, or $2.16 per diluted share
Operating cash flow of $3.94 billion versus $3.88 billion for the prior quarter and $1.97 billion for the same period last year
“Micron delivered solid fiscal first quarter results led by strong product portfolio momentum,” said Micron Technology President and CEO Sanjay
Mehrotra. “We are now shipping our industry-leading DRAM and NAND technologies across major end markets, and we delivered new solutions todata center, client, mobile, graphics and automotive customers. As powerful secular trends including 5G, AI, and EV adoption fuel demand growth, ourtechnology leadership and world-class execution position us to create significant shareholder value in fiscal 2022 and beyond.”
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

FQ1-22$

FQ4-21

7,687$
3,565
46.4 %
934
2,631
34.2 %
2,306
2.04

8,274$
3,912
47.3 %
957
2,955
35.7 %
2,720
2.39

Non-GAAP(2)FQ1-215,773
1,736
30.1 %870
866
15.0 %
803
0.71

FQ1-22
$

7,687
$
3,616
47.0 %
891
2,725
35.4 %
2,471
2.16

FQ4-21
8,274
$
3,964
47.9 %
891
3,073
37.1 %
2,778
2.42

FQ1-215,773
1,784
30.9 %
811
973
16.9 %
897
0.78

Investments in capital expenditures, net(2) were $3.27 billion for the first quarter of 2022, which resulted in adjusted free cash flows(2) of $671 million.
Micron repurchased approximately 3.6 million shares of its common stock for $259 million during the first quarter of fiscal 2022 and ended the quarterwith cash, marketable investments, and restricted cash of $11.48 billion, for a net cash(2) position of $4.46 billion.
On December 17, 2021, Micron’s Board of Directors declared a quarterly dividend of $0.10 per share, payable in cash on January 18, 2022, toshareholders of record as of the close of business on January 3, 2022.
Business Outlook
The following table presents Micron’s guidance for the second quarter of 2022:
FQ2-22
Revenue
Gross margin
Operating expenses
Diluted earnings per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$7.5 billion ± $200 million
45.0% ± 1%
$1,058 million ± $25 million$1.83 ± $0.10$7.5 billion ± $200 million
46.0% ± 1%$975 million ± $25 million$1.95 ± $0.10

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 Monday, Dec. 20, 2021 at 2:30 p.m. MT to discuss its first quarter financial results and provide forward-looking
guidance for its second quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available 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 arelentless 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.
© 2021 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, our strategic position, and our 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. 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 certainfactors can be found at www.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 forwardlooking 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, adjusted free cash flow, net cash, and business outlook. Further information regarding Micron’s use ofnon-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)
1st Qtr.
December 2,2021
Revenue$

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

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

7,687
4,122

4th Qtr.
September 2,2021
$

8,274
4,362

1st Qtr.
December 3,
2020
$

5,773
4,037

3,565

3,912

1,736

712
259
38(75)

705
236
22(6)

647
214
8
1

2,631

2,955

866

10(45)
(75)

9(47)
19

10(48)
13

2,521

2,936

841(219)4(230)
14(51)
13Net income

$

2,306

$

2,720$

803

Earnings per share
BasicDiluted

$

2.06
2.04

$

2.42
2.39$

0.72
0.71

Number of shares used in per share calculations
Basic
Diluted

1,119
1,130

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS

1,123
1,138

1,115
1,135

(In millions)(Unaudited)
December 2,
2021

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

Other 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

September 2,20218,680
900
5,250
4,827
13
521

$

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

20,191
1,817
35,155
574
347
746
1,228
1,188

Other noncurrent assets
Total assets
Liabilities and equity
Accounts payable and accrued expenses
Current debt

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

$

61,246$

58,849

$

5,470
118
924

$

5,325
155
944

Other current liabilities
Total current liabilities
Long-term debt
Noncurrent operating lease liabilities
Noncurrent unearned government incentives
Other noncurrent liabilities

6,512
6,904523
767
632

6,424
6,621
504
808
559

Total liabilities

15,33814,916

122
9,564
41,267(4,954)
(91)

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

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

45,908

Total equity$

Total liabilities and equity

61,24643,933$58,849MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
December 2,2021

Three 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
Change in operating assets and liabilities
Receivables$2,306 $December 3,2020

803

1,671
118
83

1,487
92
—

67251

Inventories
Accounts payable and accrued expenses
Deferred income taxes, net
Other(344)
(42)
54
25

130(753)(24)(19)

Net cash provided by operating activities

3,938

1,967(3,265)
(528)
893
313
124
55(77)(2,738)(1,002)—216
45
40
21(2,485)(3,418)(1,949)
(259)
(112)
(102)
(78)
2,000(13)

(84)
—
—
(57)
(97)
—
24(513)

(214)

(6)

27934
7,829

(1,638)7,690

8,763 $

6,052

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
Repurchases of common stock - withholdings on employee equity awards
Payments on equipment purchase contracts
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 heldfor 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)
1st Qtr.
December 2,
2021
GAAP gross margin
Stock-based compensation

4th Qtr.
September 2,
2021

1st Qtr.
December 3,
2020$

3,565 $
43
8

3,912
43
9$

1,736
41
7

Non-GAAP gross margin$

3,616 $

3,964$

1,784

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments

$

934 $
(73)
(38)
68957 $
(50)
(22)
6870
(51)
(8)
—Non-GAAP operating expenses$891 $

891$

811

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

2,631 $
116
38(60)

2,955
93
22
3$

866
92
87

Non-GAAP operating income$

2,725 $

3,073$

973

GAAP net income
Stock-based compensation
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions
Other$

2,306 $
116
38
983(60)(21)2,720 $
93
228—
3(68)

803
92
87—
7(20)

$

2,471 $

2,778

897

1,130
111,138
91,13511

1,141

1,1471,146$

2.04 $
0.12

2.39
0.03$

0.71
0.07$

2.16 $

2.42$

0.78

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$RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
1st Qtr.
December 2,2021
GAAP net cash provided by operating activities$Expenditures for property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Payments on equipment purchase contracts$(3,265)
21(78)
55

Amounts funded by partners
$671

3,884

$

1,877

1,967
(2,738)12(97)
40(2,007)$

December 2,As of

1st Qtr.
December 3,2020(2,015)4(156)
160(3,267)

Investments in capital expenditures, net
Adjusted free cash flow

3,938

4th Qtr.
September 2,2021(2,783)$September 2,(816)2021Cash and short-term investments
Current and noncurrent restricted cash
Long-term marketable investments

$

9,580
83
1,817(7,022)

$

8,633
66
1,765(6,776)

$

4,458

$

3,688

Current and long-term debt
Net cash

2021

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, dilutedearnings 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;
Initial impact of inventory accounting policy change to FIFO and change in inventory cost absorption in the second quarterof 2021; 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
FQ2-22GAAP Outlook

Revenue
Gross margin
Operating expenses$7.5 billion ± $200 million
45.0% ± 1%
$1,058 million ± $25 million—1%$83 million$1.83 ± $0.10$0.12

Diluted earnings per share(1)Adjustments

Non-GAAP Outlook$7.5 billion ± $200 million
46.0% ± 1%$975 million ± $25 million

ABA, B, C$1.95 ± $0.10

Non-GAAP Adjustments(in millions)AA
B
B

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – research and development
Stock-based compensation – sales, general, and administrativeC

Tax effects of the above items and other tax adjustments$4854835(2)$134(1) GAAP earnings per share based on approximately 1.13 billion diluted shares and non-GAAP earnings per share based on approximately 1.14

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