March 22, 2018

Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2018
Record revenue and profitability supported by solid execution and broad demand for Micron's
products
BOISE, Idaho, March 22, 2018 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ:MU) today announced results ofoperations for its second quarter of fiscal 2018, which ended March 1, 2018.
Fiscal Q2 2018 Highlights
Revenues of $7.35 billion, up 58 percent compared with the same period last year
GAAP net income of $3.31 billion, or $2.67 per diluted share Non-GAAP net income of $3.50 billion, or $2.82 per diluted share Operating cash flow of $4.35 billion, compared with $1.77 billion for the same period last year (adjusted for theInotera acquisition)"Micron executed exceptionally well in the second quarter, delivering record results and strong free cash flow driven bybroad-based demand for our memory and storage solutions. Our performance was accentuated by an ongoing shift to highvalue solutions as we grew sales to our cloud, mobile and automotive customers and set new records for SSDs andgraphics memory," said Micron President and CEO Sanjay Mehrotra. "Secular technology trends are driving robust demand
for memory and storage, and Micron is well-positioned to address these growing opportunities."
Quarterly Financial Results(in millions except per share amounts)
Net sales
Gross margin
percent of net sales
Operating income
percent of net sales
Net income attributable to Micron
Diluted earnings per share

FQ2-18
7,351
4,270
58.1%
$
3,567
48.5%
$
3,309
$
2.67$
$

GAAP (1)FQ1-18
$
6,803
$
3,747
55.1%
$
3,097
45.5%
$
2,678
$
2.19

FQ2-17
4,648
1,70436.7%
$
1,044
22.5%
$
894$
0.77$
$

Non-GAAP (2)FQ2-18
FQ1-18
FQ2-17$
7,351 $
6,803 $
4,648$
4,296 $
3,769 $
1,789
58.4%
55.4%
38.5%
$
3,630 $
3,157 $
1,177
49.4%
46.4%
25.3%
$
3,495 $
2,994 $
1,031$
2.82 $
2.45 $
0.90

Revenues for the second quarter of 2018 were 8 percent higher compared to the first quarter of 2018, reflecting increased
demand broadly across our products and end markets. Our overall consolidated gross margin of 58.1 percent for thesecond quarter of 2018 was higher compared to 55.1 percent for the first quarter of 2018 primarily due to execution across
our product portfolio.
Investments in capital expenditures, net of amounts funded by partners, were $2.11 billion, which resulted in adjusted free
cash flows of $2.2 billion for the second quarter of 2018. We ended the second quarter with cash, marketable investments,
and restricted cash of $8.68 billion.
We will host a conference call on Thursday, March 22, 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 March 22,
2019. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-859-2056 (conferencenumber: 4687088) beginning at 5:30 p.m. MT, Thursday, March 22, 2018 and continuing through Thursday, March 29,
2018. For Investor Relations and other company updates, follow @MicronTech on Twitter at twitter.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, machinelearning, 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 financialresults. 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.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY(in millions except per share amounts)
2nd Qtr.
1st Qtr.
2nd Qtr.
Six Months Ended
March 1, November 30, March 2, March 1, March 2,2018
2017
2017
2018
2017
$ 7,351 $6,803$ 4,648 $ 14,154 $ 8,618
3,081
3,056
2,944
6,137
5,903
4,270
3,747
1,704
8,017
2,715
196
191
187
387
346
523
448
473
971
943
(16 )
11—(5 )
23
3,567
3,097
1,044
6,664
1,403

Net sales
Cost of goods sold
Gross margin

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

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

Income tax (provision) benefit (2)Equity in net income (loss) of equity method investees
Net (income) attributable to noncontrolling interests
Net income attributable to Micron

$

(61 )

(101 )(153 )(162 )(285 )(53 )(204 )

34(257 )20(143 )1(2 )3,309 $

(114 )——
2,678(38 )
7
—
894 $

(257 )(69 )15(2 )—
5,987 $ 1,074

2.86
2.67

2.36
2.19

0.81
0.77

5.23
4.86

$

Earnings per share
Basic
Diluted$$$$$1.000.95

Number of shares used in per share calculations
Basic
Diluted

1,156
1,238

1,134
1,225

1,099
1,160

1,145
1,232

1,070
1,125

CONSOLIDATED FINANCIAL SUMMARY, Continued
As ofCash and short-term investments
Receivables

March 1,
2018
$
8,042
4,437

$

November 30,
2017
6,174
3,876

August 31,
2017
$
5,428
3,759

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

3,184
15,836520
21,864
41,263

3,160
13,358314
20,72337,191

3,123
12,457617
19,43135,336

Accounts payable and accrued expenses

4,194

3,766

3,664

Current debt
Total current liabilities

1,514
6,135

1,401
5,583

1,262
5,334

Long-term debt (1)

7,802

7,644

9,872

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

25,697869
26,56622,526867
23,393

18,621
849
19,470(1)

Net cash provided by operating activities

Six Months Ended
March
March
1,2,2018
2017$ 7,984 $ 2,543

Net cash provided by (used for) investing activities (a)Net cash provided by (used for) financing activities(3,843 )(1,420 )(5,385 )2,341

Depreciation and amortization
Investments in capital expenditures
Acquisition of Inotera
Repayments of debt
Proceeds from issuance of stock
Proceeds from issuance of debt

2,296
(4,370 )—(3,379 )
1,554
650

1,837
(2,461 )(2,634 )(556 )
68
2,961(a)March 2, 2017 amount adjusted for the retrospective adoption of ASU 2016-18 — Restricted Cash.

(1) In the first and second quarters of 2018, Intel Corporation provided non-interest bearing convertible debt financing of$150 million and $500 million, respectively, to IM Flash Technologies, LLC ("IMFT") pursuant to the terms of the IMFT jointventure agreement.
In the second quarter of 2018, we settled convertible notes with aggregate principal amount of $65 million for cash of $295
million. Additionally, holders converted $71 million of aggregate principal amount of our convertible notes in the second
quarter of 2018, which resulted in an increase to the carrying value of $238 million. As a result of the conversions, werecognized non-operating losses of $23 million in the second quarter of 2018. We will settle the conversions entirely in cashin the third quarter of 2018. 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.
(2) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax
Cuts and Jobs Act (the "Tax Act") that 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 will be 25.7% for 2018 (based on the 35% corporate rate through December 31, 2017 and 21% from that datethrough the end of fiscal year 2018) and 21% for subsequent years. The Tax Act imposes a one-time transition tax in 2018
on the higher of our accumulated foreign income, as determined as of November 2, 2017 or December 31, 2017 (the"Repatriation Tax"); provides 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 a deemed 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-freepayments in increasing amounts beginning in December 2018. In connection with the provisions of the Tax Act, we arecontinuing to evaluate whether to account for the Foreign Minimum Tax provisions that begin for us in 2019 as a period costor in our measurement of deferred taxes.

The Securities and Exchange Commission's 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
for the second quarter of fiscal year 2018 are issued. Provisional amounts may be adjusted during a one-year
measurement period as accounting for the income tax effects of the Tax Act are completed or as estimates are revised. Our
income tax (provision) benefit consisted of the following:

SecondFirst
Quarter
Quarter201820172018
Provisional estimate for the Repatriation Tax, on substantially all of ouraccumulated foreign earnings, net of adjustments related to uncertain tax
positionsRemeasurement of deferred tax assets and liabilities reflecting the lower 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, andMTTW
Other income tax (provision) benefit$ (1,335 ) $ —$$Six Months
2018
2017

—

$ (1,335 ) $ —(133 )——(133 )

—

1,337

——

1,337

—

(17 )
(8 )
(26 )
5(30 )(88 )(143 ) $ (38 ) $ (114 ) $(43 ) (21 )(83 ) (48 )(257 ) $ (69 )(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

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

2nd Qtr.
March 1, 2018
NonGAAPAdj
GAAP$ 7,351 $ — $ 7,351
3,081(26 ) 3,055
4,270
26 4,296
58.1%
58.4%

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

196
523
(16 )
703
3,567
48.5%

(16 )
180
191
(14 )
509
448
(7 )
(23 )
11(37 )
666
650
63 3,630
3,097
49.4% 45.5%(18 )173(14 )434(6 )
5(38 )
612
60 3,157
46.4%

Interest income (expense), net
Other non-operating income (expense), net(61 )
(53 )
3,453

26
53142

(35 )
—
3,595

(101 )(204 )
2,792

29
204293

Income tax (provision) benefit
Equity in net income (loss) of equity method
investees(143 )

44(99 )

(114 )

1
3,311

—
186

1
3,497

—
2,678

Operating expenses
Operating income
percent of net sales

Net income

Net income (loss) attributable to noncontrollinginterests
Net income attributable to Micron

2nd Qtr.
March 2, 2017
NonGAAPAdj
GAAP$ 4,648 $ — $ 4,648
2,944(85 ) 2,859
1,70485 1,789
36.7%
38.5%
187
473
—
660
1,044
22.5%

(30 )
157(14 )
459
(4 )
(4 )
(48 )
612
133 1,177
25.3%

(72 )
—
3,085

(153 )
34925

31(122 )(34 )—130 1,055

23(91 )

(38 )7(31 )

—
316

—
2,994

7
894

—
137

7
1,031

(2 )
(2 )
—
—
—
—
$ 3,309 $ 186 $ 3,495 $ 2,678 $ 316 $ 2,994$———
894 $ 137 $ 1,031

Shares used in calculations
Diluted earnings per share

1,238
2 1,240$ 2.67 $ 0.15 $ 2.82

1,225(5 ) 1,220$ 2.19 $ 0.26 $ 2.45

1,160(14 ) 1,146$ 0.77 $ 0.13 $ 0.90

MICRON TECHNOLOGY, INC.
NON-GAAP ADJUSTMENTS(in millions)
2ndQtr.
March
1,
2018

1st Qtr.
November30,
2017

2ndQtr.
March
2,
2017

Non-GAAP adjustments
Cost of goods sold
Stock-based compensation
Flow-through of Inotera inventory step up
OtherSelling, general, and administrative
Stock-based compensation

$22—
426$

20
—
222$

23
60
285

16—
1618—
1818
1230

14—
1413
11414—
14

Other operating (income) expense, netRestructure and asset impairments

764Interest income (expense), net
Amortization of debt discount and other costs

2629312327—
353

195
9——
204

—
28(71 )
9(34 )

131——(87 )44$ 186 $

23233167
7$ 137

Other

Research and development
Stock-based compensation
Other

Other non-operating income (expense)
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 from stock-based compensation, and noncash changes in net deferred taxes

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 withU.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;
 Gains and losses 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; and The estimated tax effects of above, including tax benefits from stock-based compensation, and non-cash changes in
net deferred taxes.


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
David OroMedia Relations
davidoro@micron.com(707) 558-8585