June 20, 2018

Micron Technology, Inc., Reports Results for the Third Quarter of Fiscal 2018
Strong execution and broad secular demand led to another record quarter for revenue and profitability
BOISE, Idaho, June 20, 2018 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ:MU) today announced results ofoperations for its third quarter of fiscal 2018, which ended May 31, 2018.
Fiscal Q3 2018 Highlights
Revenues of $7.80 billion, up 40 percent compared with the same period last year
GAAP net income of $3.82 billion, or $3.10 per diluted share Non-GAAP net income of $3.90 billion, or $3.15 per diluted share Operating cash flow of $4.26 billion, compared with $2.41 billion for the same period last year Ended the quarter with a net cash positive position"Micron delivered record results in financial performance for the third fiscal quarter, supported by strong execution andongoing secular demand trends," said Micron President and CEO Sanjay Mehrotra. "We strengthened our competitive
position and grew our revenue across virtually all of our high-value product segments. We set new records for revenue inSSDs, Mobile Managed NAND and Automotive solutions along with Cloud/Enterprise and Graphics DRAM Memory. We see
ongoing momentum and healthy industry fundamentals in the fourth quarter to close out an exceptionally strong fiscal
2018."

Quarterly Financial Results(in millions except per shareamounts)
Net sales
Gross margin
percent of net sales
Operating income
percent of net sales
Net income attributable to Micron
Diluted earnings per share

$$
$
$
$

FQ3-18
7,797
4,723
60.6%
3,953
50.7%
3,823
3.10

GAAP (1)FQ2-18$7,351$
4,270
58.1%
$
3,567
48.5%
$
3,309$
2.67$$$$$

FQ3-17
5,566
2,609
46.9%
1,963
35.3%
1,647
1.40$
$
$
$
$

FQ3-18
7,797
4,750
60.9%
4,017
51.5%
3,898
3.15

Non-GAAP (2)FQ2-18
FQ3-17$
7,351
$
5,566
$
4,296
$
2,671
58.4%
48.0%
$
3,630
$
2,071
49.4%
37.2%
$
3,495
$
1,896
$
2.82
$
1.62

Revenues for the third quarter of 2018 were 6 percent higher compared to the second quarter of 2018, reflecting increased
demand broadly across our products and end markets. Our overall consolidated gross margin of 60.6 percent for the thirdquarter of 2018 was higher compared to 58.1 percent for the second quarter of 2018 primarily due to execution across ourproduct portfolio.
Investments in capital expenditures, net of amounts funded by partners, were $2.10 billion, which resulted in adjusted free
cash flows(3) of $2.16 billion for the third quarter of 2018. During the quarter, we repurchased or converted $2.31 billion
principal amount of our debt, lowering our total carrying value of debt to $7.34 billion exiting the quarter. We ended the thirdquarter in a net cash positive position with cash, marketable investments, and restricted cash of $7.68 billion.
We will host a conference call on Wednesday, June 20, 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
June 20, 2019. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-859-2056(conference number: 5788319) beginning at 5:30 p.m. MT, Wednesday, June 20, 2018 and continuing through Wednesday,June 27, 2018. For Investor Relations and other company updates, follow @MicronTech on Twitter attwitter.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, machinelearning, 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 toupdate 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.
(3)

Adjusted free cash flow consists of cash provided by operating activities of $4.26 billion less investments in capital
expenditures, net of amounts funded by partners.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY(in millions except per share amounts)
3rd Qtr.
2nd Qtr.
3rd Qtr.
MayMarchJune
31, 2018
1, 2018
1, 2017$
7,797 $
7,351 $
5,566
3,074
3,081
2,957
4,7234,270
2,609
211
196
204
603
523
434(44 )
(16 )
8
3,953
3,567
1,963

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 noncontrollinginterests
Net income attributable to Micron$

Nine Months Ended
MayJune31, 2018
1, 2017$
21,951 $14,1849,211
8,860
12,740
5,324
598
550
1,574
1,377(49 )31
10,617
3,366(44 )(61 )(143 )(206 )(428 )(193 )

(53 )

(83 )

(450 )(63 )

109(143 )(92 )(148 )(161 )(2 )

12(1 )

7—
3,823

$

(2 )
3,309 $

—
1,647

2.86
2.67

1.49
1.40

$

(2 )
9,810 $

—
2,721

8.53
7.96

2.52
2.38

Earnings per share

Basic
Diluted

$

3.30
3.10$

$

$

$

Number of shares used in per share calculations

Basic
Diluted

1,159
1,235

1,156
1,238

1,106
1,177

1,150
1,233

1,0821,142

CONSOLIDATED FINANCIAL SUMMARY, Continued

As ofCash and short-term investments
Receivables
Inventories
Total current assets
Long-term marketable investments
Property, plant, and equipment, net
Restricted cash
Total assets$

May 31, 2018
7,071
4,912
3,369
15,499487
22,705
119
41,845$

March 1, 2018
8,042
4,437
3,184
15,836520
21,864113
41,263$

August 31, 2017
5,428
3,759
3,123
12,457617
19,431
107
35,336

Accounts payable and accrued expenses

3,998

4,194

3,664

Current debt (1)1,454
5,8831,514
6,135

1,262
5,334

5,890

7,802

9,872

28,649869
29,51825,697869
26,566

18,621
849
19,470Total current liabilities
Long-term debt

(1)

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

Nine Months Ended
May 31, 2018
June 1, 2017
Net cash provided by operating activities (a)Net cash provided by (used for) investing activities
Net cash provided by (used for) financing activities
Depreciation and amortization
Investments in capital expenditures
Acquisition of Inotera
Repayments of debtProceeds from issuance of stock
Proceeds from issuance of debt$(a)12,245$

4,950(6,087 )(4,443 )(6,259 )
1,207

3,552
(6,798 )—(6,767 )
1,636969

2,888(3,730 )(2,634 )(1,774 )1083,136(a) June 1, 2017 amount adjusted for the retrospective adoption of ASU 2016-18 — Restricted Cash.

1. In the third quarter of 2018, we prepaid debt with an aggregate principal amount of $2.08 billion for cash of $2.11
billion and recognized non-operating losses of $42 million. We repurchased or settled convertible notes with anaggregate principal amount of $228 million for cash of $1.11 billion and recognized non-operating losses of $32
million. Additionally, as of May 31, 2018, $101 million of aggregate principal amount of our convertible notes had
converted but will not settle until the fourth quarter of 2018. As a result of the unsettled conversions, the carrying
values increased by $456 million as of May 31, 2018 and we recognized non-operating losses of $94 million in thethird quarter of 2018. In the second quarter of 2018, we settled convertible notes with an aggregate principal amountof $65 million for cash of $295 million. 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.
In the first nine months of 2018, Intel Corporation provided non-interest bearing convertible debt financing of $969
million to IM Flash Technologies, LLC ("IMFT") pursuant to the terms of the IMFT joint venture agreement.
2. On December 22, 2017, the United States 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 date through the end of fiscal year 2018) and 21% for subsequent years. The Tax Act imposes a one-timetransition tax in 2018 on the higher of our accumulated foreign income, as determined as of November 2, 2017 orDecember 31, 2017 (the "Repatriation Tax"); provides a U.S. federal tax exemption on foreign earnings distributed tothe United States; and, beginning in 2019, creates a new minimum tax on certain foreign earnings in excess of adeemed 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-free payments in increasing amounts beginning in December 2018. In
connection with the provisions of the Tax Act, we are continuing to evaluate whether to account for the Foreign
Minimum Tax provisions that begin for us in 2019 as a period cost or in our measurement of deferred taxes.
The Securities and Exchange Commission 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 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:

3rd Qtr.
May 31,
2018
Provisional estimate for the Repatriation Tax, net of adjustments
related to uncertain tax positions$
Remeasurement of deferred tax assets and liabilities reflecting
the lower U.S. corporate tax rates
Provisional estimate for the release of the valuation allowanceon the net deferred tax assets of our U.S. operations
Utilization of and other changes in net deferred tax assetsof MMJ, MMT, and MTTW
Other income tax (provision) benefit$222

2nd Qtr.
March 1,2018$

3rd Qtr.
June 1,2017(1,335 ) $——(133 )

—
(35 )
(78 )
109 $

Nine Months Ended
May 31,June 1,2018
2017$(1,113 ) $——(133 )—1,337—

1,337

—

(17 )
5(143 ) $

(31 )
(61 )
(92 ) $

(78 )(161 )(148 ) $(52 )(109 )(161 )

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)
3rd Qtr.
May 31, 2018
GAAPNet sales$ 7,797
Cost of goods sold
3,074
Gross margin
4,723
percent of net sales
60.6%
Selling, general, andadministrative
Research anddevelopment
Other operating(income) expense, net

Operating expenses
Operating income
percent of net sales

NonAdjGAAP$ — $ 7,797
(27 )
3,047
274,750
60.9%

2nd Qtr.
March 1, 2018
NonGAAPAdj
GAAP$ 7,351 $ — $7,351
3,081(26 )
3,055
4,270
264,296
58.1%
58.4%

3rd Qtr.
June 1, 2017
GAAP$ 5,566
2,957
2,609
46.9%

NonAdjGAAP$ — $ 5,566
(62 )
2,895
62
2,671
48.0%

211(14 )197

196(16 )180

204(20 )

184

603

(15 )

588

523

(14 )

509

434

(14 )

420(44 )
770
3,953
50.7%

(8 )
(37 )
64(52 )
733
4,017
51.5%

(16 )
703
3,567
48.5%

(7 )
(37 )
63(23 )
666
3,630
49.4%

8646
1,963
35.3%

(12 )
(46 )
108(4 )
600
2,071
37.2%

Interest income(expense), net
Other non-operating
income (expense), net(44 )23(21 )

(61 )26(35 )(143 )

30(113 )(193 )
3,716

194
281

1
3,997

(53 )
3,453

53142

—
3,595

(83 )
1,737

83
221

—
1,958

109

(206 )(97 )(143 )

44(99 )

(92 )

28(64 )Net income

(2 )
3,823

—
75

(2 )
3,898

1
3,311

—
186

1
3,497

2
1,647

—
249

2
1,896

Net income (loss)
attributable tononcontrollinginterests

—

——

(2 )

—

(2 )

—

—

—

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

Net income
attributable to Micron $Shares used in
calculations
Diluted earnings pershare$

3,823

$

75 $

3,898

1,235

31,2383.10$ 0.05 $3.15$$

3,309$ 186 $

3,495

1,238

2

1,240

2.67

$ 0.15 $2.82$$

1,647$ 249 $

1,896

1,177

(8 )

1,169

1.40

$ 0.22 $1.62

MICRON TECHNOLOGY, INC.
NON-GAAP ADJUSTMENTS(in millions)
3rd Qtr.
May 31,2018

2nd Qtr.
March 1,2018

3rd Qtr.
June 1,
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

20—
72722—
4262436262

1414161620
20

1411514—
1413
114

Other operating (income) expense, net
Restructure and asset impairments

8712Interest income (expense), net
Amortization of debt discount and other costs

232630Research 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
Other

Income taxes
Impact of U.S. income tax reform
Estimated tax effects of above, including tax benefits from stock-based
compensation, and non-cash changes in net deferred taxes
$

168
242
19423273536122—83(222 )131—

16(206 )75(87 )
44186

2828249$$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