MICRON TECHNOLOGY, INC. REPORTS RESULTS FOR THE SECOND QUARTER OF FISCAL 2020
March 25, 2020
Strong execution drives profitability and 13th consecutive quarter of free cash flow
BOISE, Idaho, March 25, 2020 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal
2020, which ended February 27, 2020.
Fiscal Q2 2020 highlights

Revenue of $4.80 billion versus $5.14 billion for the prior quarter and $5.84 billion for the same period last year
GAAP net income of $405 million, or $0.36 per diluted share
Non-GAAP net income of $517 million, or $0.45 per diluted share
Operating cash flow of $2.00 billion versus $2.01 billion for the prior quarter and $3.44 billion for the same period last year
“Micron delivered solid second quarter results and revenue at the high end of the guidance range, despite the unfolding COVID-19 pandemic,” said
Micron Technology President and CEO Sanjay Mehrotra. “I am grateful to our team f​ or the excellent business execution we have achieved during thisunprecedented situation. Their resilience, together with Micron’s technology leadership, stronger product portfolio, and healthy balance sheet, give us
confidence that we will emerge from this challenging time well-positioned to capture the robust long-term demand opportunities for memory andstorage.”

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 attributable to Micron
Diluted earnings per share

FQ2-20
$

4,797
$
1,355
28.2 %
915
440
9.2 %
405
0.36

Non-GAAP (2)FQ1-20

FQ2-19

5,144
$
1,366
26.6 %
848
518
10.1 %
491
0.43

5,835
$
2,864
49.1 %
907
1,957
33.5 %
1,619
1.42

FQ2-20
4,797
$
1,398
29.1 %
856
542
11.3 %
517
0.45

FQ1-20
5,144
$
1,405
27.3 %
811
594
11.5 %
548
0.48

FQ2-195,835
2,928
50.2 %
818
2,110
36.2 %
1,971
1.71

Investments in capital expenditures, net(2) were $1.94 billion for the second quarter of fiscal 2020, which resulted in adjusted free cash flows(2) of $63
million. Micron repurchased approximately 785,000 shares of its common stock for $44 million during the second quarter of fiscal 2020 and ended thequarter with cash, marketable investments, and restricted cash of $8.12 billion, for a net cash(2) position of $2.70 billion.
Business Outlook
The following table presents Micron’s guidance for the third quarter of fiscal 2020:

FQ3-20
Revenue
Gross margin
Operating expenses
Interest (income) expense, net
Diluted earnings per share

GAAP (1) Outlook

Non-GAAP (2) Outlook$4.6 billion - $5.2 billion
30% ± 1.5%$891 million ± $25 million$38 million$0.41 ± $0.15$4.6 billion - $5.2 billion
31% ±1.5%$825 million ± $25 million$35 million$0.55 ± $0.15

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 Wednesday, March 25, 2020 at 2:30 p.m. MT to discuss its second fiscal quarter financial results and provide
forward-looking guidance for its third fiscal 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. Through our global brands — Micron® and Crucial® — our broad portfolio of
high-performance memory and storage technologies, including DRAM, NAND, 3D XPoint™ memory, and NOR, is transforming how the world uses
information to enrich life. Backed by more than 40 years of technology leadership, our memory and storage solutions enable disruptive trends,
including artificial intelligence, 5G, machine learning, and autonomous vehicles, in key market segments like mobile, data center, client, consumer,
industrial, graphics, automotive, and networking. Our common stock is traded on the Nasdaq under the MU symbol. To learn more about Micron
Technology, Inc., visit micron.com.
Micron and the Micron orbit logo are trademarks 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 the industry, our strategic position, and 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 the
documents we file with the Securities and Exchange Commission, specifically our most recent Form 10-K and Form 10-Q. These documents containand identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Thesecertain factors can be found at www.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 no duty to update any of theforward-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 management excludes in analyzing our operating results andunderstanding trends in our earnings, adjusted free cash flow, and net cash. Further information regarding Micron’s use of non-GAAP measuresand 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)
2nd Qtr.
February 27,
2020
Revenue$

Cost of goods sold

Gross margin
Selling, general, and administrative
Research and development
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

Net income

$

5,144
3,778

2nd Qtr.
February 28,
2019
$

5,835
2,971

Six Months Ended
February 27,
February 28,
2020
2019
$

9,941
7,220

$

13,748
6,269

1,355

1,366

2,864

2,721

7,479

223
681
11

211
640
(3)

209
601
97

434
1,321
8

418
1,212
133

440

518

1,957

958

5,716

34
(46)
(1)

44
(47)
46

58
(27)
(84)

78
(93)
45

96
(60)
(75)

427

561

1,904

988

5,677

(21)
1

(55)
2

(280)
1

(76)
3

(757)
1

407

508

1,625

915

4,921

(2)

Net income attributable to noncontrolling interests

Net income attributable to Micron

4,797
3,442

1st Qtr.
November 28,
2019

(17)

(6)

(19)

(9)

$

405

$

491

$

1,619

$

896

$

4,912

$

0.37

$

0.44

$

1.45

$

0.81

$

4.37

Earnings per share

Basic
Diluted

0.36

0.43

1.42

0.79

4.24

Number of shares used in per share calculations

Basic
Diluted

1,111

1,107

1,114

1,109

1,123

1,133

1,129

1,141

1,131

1,157

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
February 27,
2020

As of
AssetsCash and equivalents
Short-term investments
Receivables
Inventories$

Other current assets

Total current assets

Other noncurrent assets

Liabilities and equity
Accounts payable and accrued expenses
Current debt$

15,976586
29,647
332
764
1,228
605
510

Long-term marketable investments
Property, plant, and equipment
Intangible assets
Deferred tax assets
Goodwill
Operating lease right-of-use assets

Total assets

7,118
363
3,049
5,208
238

November 28,
2019

6,969
619
3,419
4,943
217

August 29,
2019$

16,167599
29,352
333
783
1,228
608
579

7,152
803
3,195
5,118
235
16,503
1,164
28,240
340
837
1,228
—
575

$

49,648$49,649$48,887

$

5,077
237
508

$

5,408
462
447

$

4,626
1,310
454

Other current liabilities

Total current liabilities

Other noncurrent liabilities

5,822
5,188
548
586
383

6,317
5,188
511
609
426

6,390
4,541
—
636
452

Total liabilities

12,527

13,051

12,019

98

98

98

119

119

118

8,725

8,428

8,214

31,602

31,21830,761(3,414)(3,271)(3,221)(9)6

937,023—36,500—35,881889

37,02336,50036,770Long-term debt
Noncurrent operating lease liabilities
Noncurrent unearned government incentives

Commitments and contingencies
Redeemable noncontrolling interest
Micron shareholders’ equity

Common stock
Additional capital
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total Micron shareholders’ equity
Noncontrolling interest in subsidiary

Total equity
Total liabilities and equity$

49,648$49,649$48,887MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
February 27,
2020

Six 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
Amortization of debt discount and other costs
Stock-based compensation
Gain on debt prepayments, repurchases, and conversions
Change in operating assets and liabilities
Receivables
Inventories
Accounts payable and accrued expenses
Deferred income taxes, net
OtherNet cash provided by operating activities
Cash flows from investing activities
Expenditures for property, plant, and equipment
Purchases of available-for-sale securities
Proceeds from sales of available-for-sale securities
Proceeds from maturities 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
Acquisition of noncontrolling interest in IMFT
Payments to acquire treasury stock
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 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$

915

February 28,
2019

$

4,921

2,661

2,648

16

29

157

118

(42)

69

104

1,202

(90)

(800)

257

(326)

38

320

(4)

64

4,012

8,245

(3,999)
(566)
1,059
523
105
(21)

(5,349)(2,566)
160
391
455
(10)

(2,899)(6,919)(1,676)
(744)
(159)
(29)
1,250
151

(705)
—
(2,568)
(37)
1,800
27

(1,207)(1,483)

(14)

(1)

(108)
7,279

(158)
6,587

7,171

$

6,429

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Property, Plant, and Equipment
We periodically assess the estimated useful lives of our property, plant, and equipment. Based on our assessment of planned technology nodetransitions, capital spending, and re-use rates, we revised the estimated useful lives of equipment in our NAND wafer fabrication facilities and our
research and development facilities from five years to seven years as of the beginning of the first quarter of fiscal 2020. As a result, we estimate thereduction in non-cash depreciation expense for assets existing at that time benefited operating income and net income by approximately $125 million
and diluted earnings per share by approximately $0.11 for the second quarter of fiscal 2020, and benefited operating income and net income byapproximately $200 million and diluted earnings per share by approximately $0.17 for the first six months of fiscal 2020.

Adoption of Lease Accounting Standard
In the first quarter of fiscal 2020, we adopted ASU 2016-02 – Leases (as amended, “ASC 842”), which amends a number of aspects of leaseaccounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset
and corresponding lease liability, measured at the present value of lease payments. In adoption, we applied the modified retrospective method andelected to not recast prior periods. As a result, we recognized $567 million for operating lease liabilities and right-of-use assets and reclassified an
additional $66 million of other balances to right-of-use assets to conform to the new presentation requirements of ASC 842.
Debt Activity
Subsequent to the second quarter of fiscal 2020, on March 13, 2020, we drew the $2.5 billion available under our revolving credit facility. Borrowings
under the revolving credit facility are scheduled to mature on July 3, 2023, and we may repay amounts borrowed any time without penalty. The
revolving credit facility bears interest at a rate equal to LIBOR plus 1.25% based on our current corporate credit rating and leverage ratio.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
2nd Qtr.
February 27,
2020
GAAP gross margin$

Stock-based compensation
Start-up and preproduction costs
Employee severance
Other

1,355

1st Qtr.
November 28,
2019
$

1,366

2nd Qtr.
February 28,
2019
$

2,864

37

31

23

—

—

15

—

1

13

6

7

13

Non-GAAP gross margin

$

1,398

$

1,405

$

2,928

GAAP operating expenses

$

915

$

848

$

907

Stock-based compensation
Employee severance
Restructure and asset impairments
Other

(48)

(41)

(34)

—

—

(4)

(10)

4

(51)

(1)

—

—

Non-GAAP operating expenses

$

856

$

811

$

818

GAAP operating income

$

440

$

518

$

1,957

Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Other

85

72

57

—

—

15

—

1

17

10

(4)

51

7

7

13

Non-GAAP operating income

$

542

$

594

$

2,110

GAAP net income attributable to Micron

$

405

$

491

$

1,619

Stock-based compensation
Start-up and preproduction costs
Employee severance
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions
Other
Impact of U.S. income tax reform
Estimated tax effects of above, non-cash changes in net
deferred income taxes, and assessments of tax exposures

85

72

57

—

—

15

—

1

17

10

(4)

51

6

10

11

—

(42)

83

7

7

16

—

—

(14)

4

13

116

Non-GAAP net income attributable to Micron$

GAAP weighted-average common shares outstanding - Diluted

Adjustment for capped calls and stock-based compensation$

Effects of the above adjustments
Non-GAAP diluted earnings per share

$

1,133

Non-GAAP weighted-average common shares outstanding - Diluted
GAAP diluted earnings per share

517

$

1,129

1,971
1,141

11

9

8

1,144

1,138

1,149

0.36

$

0.09
$

548

0.45

0.43

$

0.05
$

0.48

1.42
0.29

$

1.71

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
2nd Qtr.
February 27,
2020
GAAP net cash provided by operating activities
Investments in capital expenditures, net$

Expenditures for property, plant, and equipment, net (1)Payments on equipment purchase contracts
Amounts funded by partners
Adjusted free cash flow

2,001

1st Qtr.
November 28,
2019
$

$

3,435

(2,013)(1,936)(2,629)

(18)

(11)

(17)

93
$

2,011

2nd Qtr.
February 28,
2019

63

22
$

86

225
$

1,014

(1) Expenditures for property, plant and equipment, net include proceeds from sales of property, plant, and equipment of $43 million for the second
quarter of fiscal 2020, $7 million for the first quarter of fiscal 2020, and $20 million for the second quarter of fiscal 2019.

February 27,
2020

As of
Cash and short-term investments
Current and noncurrent restricted cash
Long-term marketable investments

August 29,
2019

$

7,481
53
586
(5,425)

$

7,588
126
599
(5,650)

$

7,955
127
1,164
(5,851)

$

2,695

$

2,663

$

3,395

Current and long-term debt
Net cashNovember 28,
2019

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income attributable to Micron,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 ouroperating 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 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 our operating results between periods and with peer companies. The presentation of these adjusted amounts varies
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;
Start-up and preproduction costs;
Employee severance;
Restructure and asset impairments;
Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with ourconvertible debt and MMJ creditor debt;
Gains and losses from debt repurchases and conversions;
Gains and losses from business acquisition activities;

Impact of U.S. income tax reform for the one-time transition tax, release of U.S. valuation allowance, and remeasurementof net deferred taxes reflecting lower U.S. corporate tax rates; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, and assessments of tax exposures.
Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible
notes. In periods with non-GAAP income attributable to Micron, non-GAAP diluted shares include the impact of 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.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK(In millions, except per share amounts)
GAAP Outlook
Revenue
Gross margin
Operating expenses
Interest (income) expense, net$4.6 billion - $5.2 billion
30% ± 1.5%$891 million ± $25 million$38 million

Diluted earnings per share (1)$0.41 ± $0.15

Adjustments

Non-GAAP Outlook—
1% A$66 million B$3 million C$4.6 billion - $5.2 billion
31% ±1.5%$825 million ± $25 million$35 million$0.14 A, B, C, D

$0.55 ± $0.15

Non-GAAP Adjustments
A
A
B
B
B
C

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Other – operating expenses
Amortization of debt discount and other costsD

Tax effects of the above items and non-cash changes in net deferred income taxes

$

41
7
26
21
19
3
41

$

158

(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