Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2021
September 28, 2021
Fiscal 2021 marks record year for mobile, auto and industrial markets
BOISE, Idaho, Sept. 28, 2021 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and fullyear of fiscal 2021, which ended Sept. 2, 2021.
Fiscal Q4 2021 highlights

Revenue of $8.27 billion versus $7.42 billion for the prior quarter and $6.06 billion for the same period last year
GAAP net income of $2.72 billion, or $2.39 per diluted share
Non-GAAP net income of $2.78 billion, or $2.42 per diluted share
Operating cash flow of $3.88 billion versus $3.56 billion for the prior quarter and $2.27 billion for the same period last year
Fiscal 2021 highlights

Revenue of $27.71 billion versus $21.44 billion for the prior year
GAAP net income of $5.86 billion, or $5.14 per diluted share
Non-GAAP net income of $6.98 billion, or $6.06 per diluted share
Operating cash flow of $12.47 billion versus $8.31 billion for the prior year
“Micron’s outstanding fourth quarter execution capped a year of several key milestones,” said Micron Technology President and CEO Sanjay
Mehrotra. “In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated aquarterly dividend. The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term
growth.”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

FQ4-21$

Non-GAAP(2)FQ3-21

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

$

FQ4-20

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

$

6,056
2,068
34.1%
911
1,157
19.1%
988
0.87

FQ4-21$

FQ3-21

8,274
3,964
47.9%
891
3,073
37.1%
2,778
2.42

$

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

FQ4-20
$

6,056
2,111
34.9%
809
1,302
21.5%
1,229
1.08

Annual 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

FY 21
$

27,705
10,423
37.6%
4,140
6,283
22.7%
5,861
5.14

Non-GAAP(2)
FY 20

$

21,435
6,552
30.6%
3,549
3,003
14.0%
2,687
2.37

FY 21
$

27,705
10,987
39.7%
3,320
7,667
27.7%
6,976
6.06

FY 20
$

21,435
6,718
31.3%
3,299
3,419
16.0%
3,235
2.83

Investments in capital expenditures, net(2) were $2.01 billion for the fourth quarter of 2021 and $9.72 billion for the full year of 2021, which resulted inadjusted free cash flows(2) of $1.88 billion for the fourth quarter of 2021 and $2.75 billion for the full year of 2021. Micron repurchased approximately
13.9 million shares of its common stock for $1.05 billion during the fourth quarter of 2021 and 15.6 million shares of its common stock for $1.20 billion

during the full year of 2021 and ended the year with cash, marketable investments, and restricted cash of $10.46 billion, for a net cash(2) position of$3.69 billion.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2022:
GAAP(1) Outlook

FQ1-22
Revenue
Gross margin
Operating expenses
Diluted earnings per share

Non-GAAP(2) Outlook$7.65 billion ± $200 million $7.65 billion ± $200 million
46.0% ± 1%
47.0% ± 1%
$986 million ± $25 million $915 million ± $25 million$2.00 ± $0.10$2.10 ± $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 Tuesday, Sept. 28, 2021 at 2:30 p.m. MT to discuss its fourth quarter financial results and provide forward-looking
guidance for its first 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 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.
© 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, the completion of and timing for closing thepending sale of our Lehi facility, and our financial and operating results. These forward- looking statements are subject to a number of risks anduncertainties 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 todiffer materially from those contained in these forward-looking statements. These certain 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 ofactivity, 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 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)

4th Qtr.
September 2,
2021
Revenue
Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments$

3rd Qtr.
June 3,2021

4th Qtr.
September 3,
2020

Year Ended
September 2, September 3,
2021
2020

8,274 $
4,362

7,422 $
4,296

6,056 $
3,988

27,705 $17,282

21,435
14,883

3,912

3,126

2,068

10,423

6,552

705
236
22

670
230
453

630
231
50

2,663
894
488

2,600
881
60

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

Earnings per share
Basic
DilutedNumber of shares used in per share calculations
Basic
Diluted

(26)

—

95

8

1,799

1,157

6,283

3,003

9
(47)
19

8
(46)
45

13
(50)
5

37
(183)
81

114
(194)
60

2,936

1,806

1,125

6,218

2,983

(230)
14

(65)
(6)

(136)
1

(394)
37

(280)
7

2,720

1,735

990

5,861

2,710

—

—

(2)

—

(23)

$

2,720 $

1,735 $

988 $

5,861 $

2,687$

2.42 $
2.39

1.55 $
1.52

0.89 $
0.87

5.23 $
5.14

2.42
2.37

1,123
1,138

1,121
1,145

1,111
1,131

1,120
1,141

1,110
1,131

Net income attributable to noncontrolling interests
Net income attributable to Micron

(6)
2,955

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
September 2,
2021

As of
AssetsCash 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
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
Other noncurrent liabilities
Total liabilities

Commitments and contingencies$

June 3,2021

September 3,
2020

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

7,759 $
590
4,231
4,537
966
478

7,624
518
3,912
5,373
—
538

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

18,561
1,399
32,209
558
350
822
1,228
816

17,965
1,048
31,031
584
334
707
1,228
781

$

58,849 $55,943 $53,678$5,325 $
155
944

4,427 $
297
738

5,817
270
548

6,424
6,621
504
808
559

5,462
6,418
513
722
569

6,635
6,373
533
643
498

14,916

13,684

14,682

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

Total liabilities and equity

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

120
9,285
36,452(3,645)
47

119
8,917
33,384(3,495)71

43,93342,25938,996

58,849 $55,943 $53,678

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
September 2,
2021

For the year 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
Noncash restructure and asset impairment
Stock-based compensation(Gain) loss on debt prepayments, repurchases, and conversions
Change in operating assets and liabilities
Receivables
Inventories
Accounts payable and accrued expenses
Deferred income taxes, net
Other

$

September 3,
2020

5,861 $

2,710

6,214
30
454
378
1

5,650
26
40
328
(40)

(1,446)
866
210
(50)
(50)

(723)
(435)
725
79
(54)

12,4688,306

Cash flows from investing activities
Expenditures for property, plant, and equipment
Purchases of available-for-sale securities
Proceeds from maturities of available-for-sale securities
Proceeds from sales of available-for-sale securities
Proceeds from government incentives
Other(10,030)(3,163)
1,250
856
495
3

(8,223)(1,857)
814
1,458
262
(43)

Net cash provided by (used for) investing activities(10,589)(7,589)(1,520)(1,294)
(295)
—
1,188
140

(4,366)
(251)
(63)
(744)
5,000
107

(1,781)

(317)

41

11

139
7,690

411
7,279

7,829 $

7,690

Net cash provided by operating activities

Cash flows from financing activities
Repayments of debt
Payments to acquire treasury stock
Payments on equipment purchase contracts
Acquisition of noncontrolling interest in IMFT
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)$Inventory
Effective as of the beginning of the second quarter of 2021, we changed our method of inventory costing from average cost to FIFO. This change inaccounting principle is preferable because in an environment with continuously changing production costs FIFO more closely matches the actual costof goods sold with the revenues from sales of those specific units, better represents the actual cost of inventories remaining on hand at any periodend, and improves comparability with our semiconductor industry peers. The change to FIFO was not material to any prior periods, nor was the
cumulative effect of $133 million material to the second quarter of 2021. As such, prior periods were not retrospectively adjusted, and the cumulative
effect was reported as an increase to cost of goods sold for the second quarter of 2021 of $133 million, with an offsetting reduction to beginninginventories. This charge resulted in a corresponding reduction to operating income, a $128 million reduction to net income, and an $0.11 reduction to
diluted earnings per share for both the second quarter and the year ended 2021.
Beginning in the second quarter of 2021, we changed the classification of spare parts for equipment to better align with the manner in which they areused in operations. As a result, we now present spare parts as other current assets and no longer as a component of raw materials inventories. This
reclassification was applied on a retrospective basis. As a result, $254 million of spare parts were presented in other current assets as of September 2,
2021, and we reclassified $256 million and $234 million of spare parts from inventories to other current assets in the accompanying balance sheets asof June 3, 2021 and September 3, 2020, respectively.
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
for the 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 that we have entered into a definitive agreement to sell our Lehi
facility to Texas Instruments for cash consideration of $900 million. The sale is anticipated to close later this calendar year.
In the third quarter of 2021, we recognized a charge of $435 million included in restructure and asset impairments (and a tax benefit of $104 million
included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs, to berealized from the sale of these assets and liabilities. The impairment charge was based on Level 3 inputs including expected consideration and thecomposition of assets included in the sale, which were derived from the agreement with TI. In the second quarter of 2021, we also recognized acharge of $49 million to cost of goods sold to write down 3D XPoint inventory due to our decision to cease further development of this technology.
As of September 2, 2021, the significant balances of assets held for sale in connection with our Lehi facility were as follows:

September 2,
2021

As of
Property, plant, and equipment
Other current assets
Impairment

$

1,334
50
(435)

Lehi assets held for sale$949

As of September 2, 2021, we also had a $50 million finance lease obligation included in the current portion of long- term debt and $11 million of otherliabilities that we expect to transfer with the sale. The expected cash consideration, net of estimated selling expenses, approximates the carrying valueof the net assets and liabilities expected to transfer in the sale, after giving effect to the impairment charge discussed above.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
4th Qtr.
September 2,
2021

3rd Qtr.
June 3,2021

4th Qtr.
September 3,
2020

Year Ended
September 2, September 3,
2021
2020

GAAP gross margin
Stock-based compensation
Inventory accounting policy change to FIFO
Change in inventory cost absorption
3D XPoint inventory write-down
Other

$

3,912 $
43———
93,126 $
45
—
—
—
14

2,068 $
37———
6

10,423 $
186
133
160
49
36

6,552
139
—
—
—
27

Non-GAAP gross margin$

3,964 $

3,185 $

2,111 $

10,987 $6,718

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Patent license charges
Other

$

957 $
(50)
(22)
—
6

1,327 $
(53)
(453)
—
—

911 $
(52)
(50)
—
—

4,140 $
(209)
(488)
(128)
5

3,549
(189)
(60)
—
(1)

Non-GAAP operating expenses

$

891 $

821 $

809 $

3,320 $

3,299

GAAP operating income
Stock-based compensation
Inventory accounting policy change to FIFO
Change in inventory cost absorption
3D XPoint inventory write-downRestructure and asset impairments
Patent license charges
Other

$

2,955 $
93
—
—
—
22
—
3

1,799 $
98
—
—
—
453
—
14

1,157 $
89
—
—
—
50
—
6

6,283 $
395
133
160
49
488
128
31

3,003
328
—
—
—
60
—
28

Non-GAAP operating income$

3,073 $

2,364 $

1,302 $

7,667 $

3,419

GAAP net income attributable to Micron
Stock-based compensation
Inventory accounting policy change to FIFO
Change in inventory cost absorption
3D XPoint inventory write-downRestructure and asset impairments
Patent license charges
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions
Other
Estimated tax effects of above and other tax adjustments$

2,720 $
93
—
—
—
22
—
8
—
3
(68)

1,735 $
98
—
—
—
453
—
7
1
14
(135)

988 $
89
—
—
—
50
—
6
—
6
90

5,861 $
395
133
160
49
488
128
30
1
31
(300)

2,687
328
—
—
—
60
—
26
(40)
28
146

Non-GAAP net income attributable to Micron$

2,778 $

2,173 $

1,229 $

6,976 $

3,235

1,138

1,145

1,131

1,141

1,131

9

9

11

10

10

1,147

1,154

1,142

1,151

1,141

GAAP weighted-average common shares
outstanding - Diluted
Adjustment for stock-based compensation and capped
calls
Non-GAAP weighted-average common shares
outstanding - Diluted

GAAP diluted earnings per share
Effects of the above adjustments$

2.39 $
0.03

1.52 $
0.36

0.87 $
0.21

5.14 $
0.92

2.37
0.46

Non-GAAP diluted earnings per share$

2.42 $

1.88 $

1.08 $

6.06 $

2.83

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr.
September
2,
2021
GAAP net cash provided by operating
activities
Investments in capital expenditures, net
Expenditures for property, plant, andequipment, net(1)Payments on equipment purchase
contracts
Amounts funded by partners
Adjusted free cash flow

$

3,884

3rd Qtr.
June 3,
2021

$

3,560

$

2,271

Year Ended
September
September
2,
3,
2021
2020

$

12,468$8,306(2,011)(2,185)(2,268)(9,922)(8,154)

(156)

(16)

(14)

(295)

(63)

160
$

4th Qtr.
September
3,
2020

1,877

159
$

1,518

122
$

111

502
$

2,753

272
$

361

(1) Expenditures for property, plant, and equipment, net include proceeds from sales of property, plant, and equipment of $4 million for the fourth

quarter of 2021, $74 million for the third quarter of 2021, $12 million for the fourth quarter of 2020, $108 million for the full year of 2021, and $69 million
for the full year of 2020.

As of

September 2,
2021

June 3,2021

September 3,
2020

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

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

8,349 $
67
1,399
(6,715)

8,142
66
1,048
(6,643)

Net cash$

3,688 $

3,100 $

2,613

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 amounts 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;
Patent license charges;
Restructure and asset impairments;
Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with ourconvertible notes and other debt;
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. Non-GAAP diluted shares also include the impact of capped calls, which are anti-dilutive in GAAP earnings per share but are expected tomitigate the dilutive effect of convertible notes, based on the average share price for the period the capped calls were outstanding.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
FQ1-22
Revenue
Gross margin
Operating expenses
Diluted earnings per share(1)GAAP Outlook$7.65 billion ± $200
million46.0% ± 1%
$986 million ± $25
million$2.00 ± $0.10

Adjustments

Non-GAAP Outlook$7.65 billion ± $200
million47.0% ± 1%
$915 million ± $25
million—
1% A$71 million B$0.10 A, B, C

$2.10 ± $0.10

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
C Tax effects of the above items and other tax adjustments

$

43
5
39
32
(4)

$

115

(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