Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2022
September 29, 2022
Record revenue year in mobile, auto, industrial, and networking markets
BOISE, Idaho, Sept. 29, 2022 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and fullyear of fiscal 2022, which ended September 1, 2022.
Fiscal Q4 2022 highlights

Revenue of $6.64 billion versus $8.64 billion for the prior quarter and $8.27 billion for the same period last year
GAAP net income of $1.49 billion, or $1.35 per diluted share
Non-GAAP net income of $1.62 billion, or $1.45 per diluted share
Operating cash flow of $3.78 billion versus $3.84 billion for the prior quarter and $3.88 billion for the same period last year
Fiscal 2022 highlights

Revenue of $30.76 billion versus $27.71 billion for the prior year
GAAP net income of $8.69 billion, or $7.75 per diluted share
Non-GAAP net income of $9.48 billion, or $8.35 per diluted share
Operating cash flow of $15.18 billion versus $12.47 billion for the prior year
“In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered our sixth consecutive year of positive free cash flow, allowing us toreturn a record $2.9 billion to our shareholders,” said Micron Technology President and CEO Sanjay Mehrotra. “Our technology and manufacturingleadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing tonavigate the weakened near-term supply-demand environment. We are taking decisive steps to reduce our supply growth including a nearly 50%
wafer fab equipment capex cut versus last year, and we expect to emerge from this downcycle well positioned to capitalize on the long-term demand
for memory and storage.”
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

FQ4-22
$

6,643
$
2,622
39.5%
1,101
1,521
22.9%
1,492
1.35

Non-GAAP(2)FQ3-22

FQ4-21

8,642
$
4,035
46.7%
1,031
3,004
34.8%
2,626
2.34

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

FQ4-22$

FQ3-22

6,643
$
2,676
40.3%
1,014
1,662
25.0%
1,621
1.45

8,642
$
4,097
47.4%
953
3,144
36.4%
2,939
2.59

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

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
Diluted earnings per share

FY 22

FY 21

$ 30,758$ 27,705
13,898
10,423
45.2%
37.6%
4,196
4,140
9,702
6,283
31.5%
22.7%
8,687
5,861
7.75
5.14

Non-GAAP(2)
FY 22

FY 21

$ 30,758$ 27,705
14,113
10,987
45.9%
39.7%
3,832
3,320
10,281
7,667
33.4%
27.7%
9,475
6,976
8.35
6.06

Investments in capital expenditures, net(2) were $3.58 billion for the fourth quarter of 2022 and $11.98 billion for the full year of 2022, which resulted inadjusted free cash flows(2) of $196 million for the fourth quarter of 2022 and $3.21 billion for the full year of 2022. Micron repurchased approximately

13.2 million shares of its common stock for $784 million during the fourth quarter of 2022 and 35.4 million shares of its common stock for $2.43 billion
during the full year of 2022 and ended the year with cash, marketable investments, and restricted cash of $11.06 billion, for a net cash(2) position of$4.15 billion. On September 29, 2022, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 26,
2022, to shareholders of record as of the close of business on October 11, 2022.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2023:
GAAP(1) Outlook

Non-GAAP(2) Outlook$4.25 billion ± $250 million
25.0% ± 2.0%
$1.09 billion ± $25 million($0.09) ± $0.10$4.25 billion ± $250 million
26.0% ± 2.0%
$1.00 billion ± $25 million$0.04 ± $0.10

FQ1-23
Revenue
Gross margin
Operating expenses
Diluted earnings (loss) per share

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 Thursday, September 29, 2022 at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results andprovide 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 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 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.
© 2022 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 the
documents we file with the Securities and Exchange Commission, including 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 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 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 1,
2022
Revenue
Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments
Other operating (income) expense, net$

3rd Qtr.
June 2,2022

4th Qtr.
September 2,
2021

Year Ended
September 1,
September 2,
2022
2021

6,643 $
4,021

8,642 $
4,607

8,274 $
4,362

30,758 $16,86027,705
17,282

2,622

4,035

3,912

13,898

10,423

839
280
5
(23)

773
264
—
(6)

705
236
22
(6)

3,116
1,066
48
(34)

2,663
894
488
95

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

1,521

3,004

2,955

9,702

6,283

54
(45)
23

20
(44)
8

9
(47)
19

96
(189)
(38)

37
(183)
81

1,553

2,988

2,936

9,571

6,218

(56)

(358)

(230)

(888)

(394)

(5)

(4)

14

4

37

Net income$

1,492 $

2,626 $

2,720 $

8,687 $

5,861

Earnings per share
Basic
Diluted$1.36 $
1.35

2.36 $
2.34

2.42 $
2.39

7.81 $
7.75

5.23
5.14

1,097
1,106

1,112
1,121

1,123
1,138

1,112
1,122

1,120
1,141

Number of shares used in per sharecalculations
Basic
Diluted

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
September 1,
2022

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

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$

21,781
1,647
38,549
678
421
702
1,228
1,277

Other noncurrent assets
Total assets

8,262
1,069
5,130
6,663
13
644

June 2,2022

September 2,
2021

9,157
1,070
6,229
5,629
15
608

$

22,708
1,646
36,665
690
415
682
1,228
1,262

7,763
870
5,311
4,487
974
502
19,907
1,765
33,213
551
349
782
1,228
1,054

$

66,283$65,296$

58,849

$

6,090
103
1,346

$

5,788
107
1,114

$

5,325
155
944

Other noncurrent liabilities

7,539
6,803
610
589
835

7,009
6,856
629
663
858

6,424
6,621
504
808
559

Total liabilities

16,376

16,015

14,916

123

122

122

Commitments and contingencies
Shareholders’ equity
Common stockAdditional capital
Retained earnings
Treasury stock

10,19747,274(7,127)(560)

Accumulated other comprehensive income (loss)

9,950
45,916(6,343)(364)

49,907

Total equity$

Total liabilities and equity

66,283

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

49,281$

65,29643,933$58,849MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
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
Stock-based compensation(Gain) loss on debt repurchases and conversions
Restructure and asset impairment
Change in operating assets and liabilities:
Receivables
Inventories
Accounts payable and accrued expenses

September 1,
2022

September 2,
2021

$

$

8,687

5,861

7,116
514
83
44

6,214
378
1
454

190
(2,179)744(18)(1,446)
866
210
(70)

15,181

12,468(12,067)(1,770)
1,321
888
294
115
(366)

(10,030)(3,163)
1,250
—
856
495
3

(11,585)(10,589)(2,432)(2,032)
(461)
(141)
(125)
2,000
211

(1,200)(1,520)
—
(295)
(94)
1,188
140

(2,980)(1,781)

Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash

(106)

41

Net increase (decrease) in cash, cash equivalents, and restricted cash

510
7,829

139
7,690

Other
Net cash provided by operating activities
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 sale of Lehi, Utah fab
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
Repurchases of common stock - repurchase program
Repayments of debt
Payments of dividends to shareholders
Payments on equipment purchase contracts
Repurchases of common stock - withholdings on employee equity awards
Proceeds from issuance of debt
Other
Net cash provided by (used for) financing activities

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)

$

8,339

$

7,829

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, Utah that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as
held for sale as of the second quarter of 2021 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 and other related adjustments, we recognized a loss of $23 million included in restructure and asset impairments inthe first quarter of 2022.
In 2021, we recognized a charge of $435 million included in restructure and asset impairments in connection with the definitive agreement with TI (anda 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. The impairment charge was based on Level 3 inputs including expected consideration and the composition of assets includedin the sale, which were derived from the agreement with TI. We also recognized a charge of $49 million to cost of goods sold in 2021 to write down 3D
XPoint inventory due to our decision to cease further development of this technology. Our 3D XPoint technology development and Lehi facility
operations were primarily included in our CNBU segment results.
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)
4th Qtr.
September 1,
2022
GAAP gross margin
Stock-based compensation
Inventory accounting policy change to
FIFOChange in inventory cost absorption
3D XPoint inventory write-down

$

Other

3rd Qtr.
June 2,2022

4th Qtr.
September 2,
2021

Year Ended
September 1,
September 2,
2022
2021

2,622 $
49

4,035 $
57

3,912 $
43

13,898 $193

10,423
186

—
—
—
5

—
—
—
5

—
—
—
9

—
—
—
22

133
160
49
36

Non-GAAP gross margin$

2,676 $

4,097 $

3,964 $

14,113 $10,987GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Patent license charges$

1,101 $
(82)
(5)
—
—

1,031 $
(78)
—
—
—

957 $
(50)
(22)
—
6

4,196 $
(308)
(48)
—
(8)

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

Non-GAAP operating expenses$

1,014 $

953 $

891 $

3,832 $

3,320

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

1,521 $
131

3,004 $
135

2,955 $
93

9,702 $
501

6,283
395

—
—
—
5
—
5

—
—
—
—
—
5

—
—
—
22
—
3

—
—
—
48
—
30

133
160
49
488
128
31

1,662 $

3,144 $

3,073 $

10,281 $

7,667

Other

Other
Non-GAAP operating income$

GAAP net income$
Stock-based compensation
Inventory accounting policy change to
FIFOChange in inventory cost absorption
3D XPoint inventory write-downRestructure and asset impairments
Patent license charges
Amortization of debt discount(Gain) loss on debt repurchases andconversions
Other
Impact of Idaho income tax reform
Estimated tax effects of above and othertax adjustments$
Non-GAAP net income

2,720 $
93

8,687 $
501

5,861
395

—
—
—
5
—
6

—
—
—
—
—
8

—
—
—
22
—
8

—
—
—
48
—
31

133
160
49
488
128
30

—
5
—

—
5
189

—
3
—

83
30
189

1
31
—

(18)

(24)

(68)

(94)

(300)

2,939 $

2,778 $

9,475 $

6,976

1,106

1,121

1,138

1,122

1,141

15

15

9

13

10

1,121

1,136

1,147

1,135

1,151

$

1.35 $
0.10

2.34 $
0.25

2.39 $
0.03

7.75 $
0.60

5.14
0.92

$

1.45 $

2.59 $

2.42 $

8.35 $

6.06

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

2,626 $
135

1,621 $GAAP weighted-average common shares
outstanding - Diluted
Adjustment for stock-based
compensation
Non-GAAP weighted-average commonshares outstanding - Diluted
GAAP diluted earnings per share

1,492 $
131

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr.
September 1,
2022
GAAP net cash provided by operating
activities$

Expenditures for property, plant, andequipment
Proceeds from sales of property, plant, andequipment
Payments on equipment purchase contracts
Amounts funded by partners
Investments in capital expenditures, net
Adjusted free cash flow$

3rd Qtr.
June 2,2022

4th Qtr.
September 2,
2021

3,777 $

3,838 $

3,884 $

15,181 $

12,468(3,613)(2,578)(2,015)(12,067)(10,030)

30
(9)
11

39
(27)
38

4
(156)
160

117
(141)
115

108
(295)
502

(3,581)(2,528)(2,007)(11,976)(9,715)

1,310 $

1,877 $

196 $September 1,
2022

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

3,205 $

June 2,
2022

2,753

September 2,
2021$

9,331 $
77
1,647
(6,906)

10,227 $104
1,646(6,963)

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

4,149 $

5,014 $

3,688

Current and long-term debt
Net cashYear Ended
September 1,
September 2,
2022
2021

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, 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 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;
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
FQ1-23

GAAP Outlook

Revenue
Gross margin
Operating expenses$4.25 billion ± $250 million
25.0% ± 2.0%
$1.09 billion ± $25 million

Diluted earnings (loss) per share(1)($0.09) ± $0.10

Adjustments—
1% A$91 million B

Non-GAAP Outlook$4.25 billion ± $250 million
26.0% ± 2.0%
$1.00 billion ± $25 million$0.13 A, B, C

$0.04 ± $0.10

Non-GAAP Adjustments(in millions)

(1)

A
A
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

$

33
3
52
39
14

$

141

GAAP earnings per share based on approximately 1.10 billion diluted shares and non-GAAP earnings per share based on approximately 1.12
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