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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 1, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to
Commission file number 1-10658
https://cdn.kscope.io/12e3dcee99c16746b4f1989dcd7e8ad4-Micron Logo.jpg
Micron Technology, Inc.
(Exact name of registrant as specified in its charter)
Delaware75-1618004
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
8000 S. Federal Way, Boise, Idaho
83716-9632
(Address of principal executive offices)(Zip Code)
(Registrant’s telephone number, including area code)
(208) 368-4000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.10 per shareMUNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated FilerNon-Accelerated FilerSmaller Reporting CompanyEmerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YesNo
The number of outstanding shares of the registrants common stock as of June 22, 2023 was 1,095,301,608.



Table of Contents
PART I. Financial Information

2 | 2023 Q3 10-Q

Table of Contents
Definitions of Commonly Used Terms

As used herein, “we,” “our,” “us,” and similar terms include Micron Technology, Inc. and its consolidated subsidiaries, unless the context indicates otherwise. Abbreviations, terms, or acronyms are commonly used or found in multiple locations throughout this report and include the following:
TermDefinitionTermDefinition
2023 Notes
2.497% Senior Notes due April 2023, repaid November 2021
DDR
Double data rate DRAM
2024 Notes
4.640% Senior Notes due February 2024, repaid November 2021
EBITDAEarnings before interest, taxes, depreciation, and amortization
2024 Term Loan ASenior Term Loan A due October 2024ESG
Environmental, social, and governance
2025 Term Loan A
Senior Term Loan A due November 2025
EUVExtreme ultraviolet lithography
2026 Term Loan A
Senior Term Loan A due November 2026
GDDR
Graphics double data rate
2027 Term Loan A
Senior Term Loan A due November 2027
HBM
High-bandwidth memory, a stacked DRAM technology optimized for memory-bandwidth intensive applications
2026 Notes4.975% Senior Notes due February 2026InoteraInotera Memories, Inc.
2027 Notes4.185% Senior Notes due February 2027LIBORLondon Interbank Offered Rate
2028 Notes
5.375% Senior Notes due April 2028
LPDRAMLow-power DRAM
2029 A Notes
5.327% Senior Notes due February 2029MCPMultichip packaged solutions with managed NAND and LPDRAM
2029 B Notes
6.750% Senior Notes due November 2029MicronMicron Technology, Inc. (Parent Company)
2030 Notes4.663% Senior Notes due February 2030NRVNet realizable value
2032 Green Bonds2.703% Senior Notes due April 2032OEMOriginal equipment manufacturer
2033 A Notes5.875% Senior Notes due February 2033QimondaQimonda AG
2033 B Notes
5.875% Senior Notes due September 2033
Revolving Credit Facility$2.5 billion Revolving Credit Facility due May 2026
2041 Notes3.366% Senior Notes due November 2041SOFRSecured Overnight Financing Rate
2051 Notes3.477% Senior Notes due November 2051SSDSolid state drive

We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless 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 that our 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.

Micron, Crucial, any associated logos, and all other Micron trademarks are the property of Micron. Other product names or trademarks that are not owned by Micron are for identification purposes only and may be the trademarks of their respective owners.

All period references herein are to our fiscal periods unless otherwise indicated. Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal years 2023 and 2022 each contain 52 weeks.

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Available Information

Investors and others should note that we announce material financial information about our business and products through a variety of means, including our investor relations website (investors.micron.com), filings with the U.S. Securities and Exchange Commission (“SEC”), press releases, public conference calls, blog posts (micron.com/about/blog), and webcasts. We use these channels to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on such channels.


Forward-Looking Statements

This Form 10-Q contains trend information and other forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements may be identified by words such as "anticipate," "expect," "intend," "pledge," "committed," "plan," "opportunities," "future," "believe," "target," "on track," "estimate," "continue," "likely," "may," "will," "would," "should," "could," and variations of such words and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Specific forward-looking statements include, but are not limited to, statements such as those made regarding the expected one-time payment to the Qimonda estate; restructure plans and expected related savings and charges; market conditions and profitability in our industry; potential write-downs of inventories in future quarters; reductions in our wafer starts and the corresponding impact on our costs in 2023; the impact of the Cyberspace Administration of China decision; the timing for construction and ramping of production for new memory manufacturing fabs in the United States; the construction or expansion of our backend facilities; the receipt of government grants and investment tax credits; the sufficiency of our cash and investments; capital spending in 2023; funding of sustainability-focused projects; and allocation and dispersal of the net proceeds of our 2032 Green Bonds. Our actual results could differ materially from our historical results and those discussed in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, those identified in “Part II. Other Information – Item 1A. Risk Factors.”
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

Micron Technology, Inc.
Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
Quarter endedNine months ended
June 1,
2023
June 2,
2022
June 1,
2023
June 2,
2022
Revenue$3,752 $8,642 $11,530 $24,115 
Cost of goods sold4,420 4,607 12,511 12,839 
Gross margin(668)4,035 (981)11,276 
Research and development758 773 2,395 2,277 
Selling, general, and administrative219 264 701 786 
Restructure and asset impairments68  167 43 
Other operating (income) expense, net48 (6)29 (11)
Operating income (loss)(1,761)3,004 (4,273)8,181 
Interest income127 20 334 42 
Interest expense(119)(44)(259)(144)
Other non-operating income (expense), net 8 (2)(61)
(1,753)2,988 (4,200)8,018 
Income tax (provision) benefit(139)(358)(201)(832)
Equity in net income (loss) of equity method investees
(4)(4)(2)9 
Net income (loss)$(1,896)$2,626 $(4,403)$7,195 
Earnings (loss) per share
Basic$(1.73)$2.36 $(4.03)$6.44 
Diluted(1.73)2.34 (4.03)6.38 
Number of shares used in per share calculations
Basic1,094 1,112 1,092 1,117 
Diluted1,094 1,121 1,092 1,127 

See accompanying notes to consolidated financial statements.
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Micron Technology, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(In millions)
(Unaudited)
Quarter endedNine months ended
June 1,
2023
June 2,
2022
June 1,
2023
June 2,
2022
Net income (loss)$(1,896)$2,626 $(4,403)$7,195 
Other comprehensive income (loss), net of tax
Gains (losses) on derivative instruments22 (210)222 (330)
Gains (losses) on investments12 (18) (38)
Foreign currency translation adjustments1  (1)1 
Pension liability adjustments(2)2 (1)1 
Other comprehensive income (loss)33 (226)220 (366)
Total comprehensive income (loss)$(1,863)$2,400 $(4,183)$6,829 

See accompanying notes to consolidated financial statements.
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Micron Technology, Inc.
Consolidated Balance Sheets
(In millions, except par value amounts)
(Unaudited)
As ofJune 1,
2023
September 1,
2022
Assets
Cash and equivalents$9,298 $8,262 
Short-term investments1,054 1,069 
Receivables2,429 5,130 
Inventories8,238 6,663 
Other current assets715 657 
Total current assets21,734 21,781 
Long-term marketable investments973 1,647 
Property, plant, and equipment38,727 38,549 
Operating lease right-of-use assets655 678 
Intangible assets410 421 
Deferred tax assets708 702 
Goodwill1,252 1,228 
Other noncurrent assets1,221 1,277 
Total assets$65,680 $66,283 
Liabilities and equity
Accounts payable and accrued expenses$4,177 $6,090 
Current debt259 103 
Other current liabilities668 1,346 
Total current liabilities5,104 7,539 
Long-term debt12,986 6,803 
Noncurrent operating lease liabilities603 610 
Noncurrent unearned government incentives632 589 
Other noncurrent liabilities950 835 
Total liabilities20,275 16,376 
Commitments and contingencies
Shareholders’ equity
Common stock, $0.10 par value, 3,000 shares authorized, 1,236 shares issued and 1,095 outstanding (1,226 shares issued and 1,094 outstanding as of September 1, 2022)
124 123 
Additional capital10,782 10,197 
Retained earnings42,391 47,274 
Treasury stock, 141 shares held (132 shares as of September 1, 2022)
(7,552)(7,127)
Accumulated other comprehensive income (loss)(340)(560)
Total equity45,405 49,907 
Total liabilities and equity$65,680 $66,283 

See accompanying notes to consolidated financial statements.
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Micron Technology, Inc.
Consolidated Statements of Changes in Equity
(In millions, except per share amounts)
(Unaudited)
Common StockAdditional CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive
Income (Loss)
Total Shareholders’ Equity
Number
of Shares
Amount
Balance at September 1, 20221,226$123 $10,197 $47,274 $(7,127)$(560)$49,907 
Net income (loss)— — — (195)— — (195)
Other comprehensive income (loss), net— — — — — 87 87 
Stock issued under stock plans8  7 — — — 7 
Stock-based compensation expense— — 146 — — — 146 
Repurchase of stock - repurchase program— — — — (425)— (425)
Repurchase of stock - withholdings on employee equity awards(2) (15)(80)— — (95)
Dividends and dividend equivalents declared ($0.115 per share)
— — — (126)— — (126)
Balance at December 1, 20221,232$123 $10,335 $46,873 $(7,552)$(473)$49,306 
Net income (loss)— — — (2,312)— — (2,312)
Other comprehensive income (loss), net— — — — — 100 100 
Stock issued under stock plans3  142 — — — 142 
Stock-based compensation expense— — 157 — — — 157 
Repurchase of stock - withholdings on employee equity awards  (1)(7)— — (8)
Dividends and dividend equivalents declared ($0.115 per share)
— — — (128)— — (128)
Balance at March 2, 20231,235$123 $10,633 $44,426 $(7,552)$(373)$47,257 
Net income (loss)— — — (1,896)— — (1,896)
Other comprehensive income (loss), net— — — — — 33 33 
Stock issued under stock plans1 1 6 — — — 7 
Stock-based compensation expense— — 145 — — — 145 
Repurchase of stock - withholdings on employee equity awards  (2)(11)— — (13)
Dividends and dividend equivalents declared ($0.115 per share)
— — — (128)— — (128)
Balance at June 1, 20231,236$124 $10,782 $42,391 $(7,552)$(340)$45,405 

See accompanying notes to consolidated financial statements.













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Micron Technology, Inc.
Consolidated Statements of Changes in Equity
(In millions, except per share amounts)
(Unaudited)
Common StockAdditional CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive
Income (Loss)
Total Shareholders’ Equity
Number
of Shares
Amount
Balance at September 2, 20211,216$122 $9,453 $39,051 $(4,695)$2 $43,933 
Net income (loss)— — — 2,306 — — 2,306 
Other comprehensive income (loss), net— — — — — (93)(93)
Stock issued under stock plans5  5 — — — 5 
Stock-based compensation expense— — 118 — — — 118 
Repurchase of stock - repurchase program— — — — (259)— (259)
Repurchase of stock - withholdings on employee equity awards(1) (12)(90)— — (102)
Balance at December 2, 20211,220$122 $9,564 $41,267 $(4,954)$(91)$45,908 
Net income (loss)— — — 2,263 — — 2,263 
Other comprehensive income (loss), net— — — — — (47)(47)
Stock issued under stock plans4  124 — — — 124 
Stock-based compensation expense— — 129 — — — 129 
Repurchase of stock - repurchase program— — — — (408)— (408)
Repurchase of stock - withholdings on employee equity awards(1) (1)(10)— — (11)
Dividends and dividend equivalents declared ($0.10 per share)
— — — (113)— — (113)
Balance at March 3, 20221,223$122 $9,816 $43,407 $(5,362)$(138)$47,845 
Net income (loss)— — — 2,626 — — 2,626 
Other comprehensive income (loss), net— — — — — (226)(226)
Stock issued under stock plans  3 — — — 3 
Stock-based compensation expense— — 131 — — — 131 
Repurchase of stock - repurchase program— — — — (981)— (981)
Repurchase of stock - withholdings on employee equity awards   (5)— — (5)
Dividends and dividend equivalents declared ($0.10 per share)
— — — (112)— — (112)
Balance at June 2, 20221,223$122 $9,950 $45,916 $(6,343)$(364)$49,281 

See accompanying notes to consolidated financial statements.
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Micron Technology, Inc.
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
Nine months endedJune 1,
2023
June 2,
2022
Cash flows from operating activities
Net income (loss)$(4,403)$7,195 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
Depreciation expense and amortization of intangible assets5,819 5,234 
Provision to write down inventories to net realizable value1,831  
Stock-based compensation448 378 
(Gain) loss on debt repurchases 83 
Change in operating assets and liabilities:  
Receivables2,728 (906)
Inventories(3,406)(1,146)
Accounts payable and accrued expenses(1,764)382 
Other57 184 
Net cash provided by operating activities1,310 11,404 
Cash flows from investing activities 
Expenditures for property, plant, and equipment(6,215)(8,454)
Purchases of available-for-sale securities(496)(1,359)
Proceeds from maturities of available-for-sale securities1,170 964 
Proceeds from government incentives248 104 
Proceeds from sales of available-for-sale securities22 258 
Proceeds from sale of Lehi, Utah fab 888 
Other(90)(162)
Net cash provided by (used for) investing activities(5,361)(7,761)
Cash flows from financing activities  
Proceeds from issuance of debt6,716 2,000 
Repayments of debt(706)(2,008)
Repurchases of common stock - repurchase program(425)(1,648)
Payments of dividends to shareholders(378)(335)
Payments on equipment purchase contracts(112)(132)
Other (17)
Net cash provided by (used for) financing activities5,095 (2,140)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash(13)(71)
Net increase (decrease) in cash, cash equivalents, and restricted cash1,031 1,432 
Cash, cash equivalents, and restricted cash at beginning of period8,339 7,829 
Cash, cash equivalents, and restricted cash at end of period$9,370 $9,261 

See accompanying notes to consolidated financial statements.
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Micron Technology, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tabular amounts in millions, except per share amounts)
(Unaudited)

Significant Accounting Policies

For a discussion of our significant accounting policies, see “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended September 1, 2022. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended September 1, 2022.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Micron Technology, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended September 1, 2022.

In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. Certain reclassifications have been made to prior period amounts to conform to current period presentation.

Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal years 2023 and 2022 each contain 52 weeks. All period references are to our fiscal periods unless otherwise indicated. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended September 1, 2022.


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Cash and Investments

All of our short-term investments and long-term marketable investments were classified as available-for-sale as of the dates noted below. Cash and equivalents and the fair values of our available-for-sale investments, which approximated amortized costs, were as follows:
June 1, 2023September 1, 2022
As ofCash and EquivalentsShort-term Investments
Long-term Marketable Investments(1)
Total Fair ValueCash and EquivalentsShort-term Investments
Long-term Marketable Investments(1)
Total Fair Value
Cash$6,834 $ $ $6,834 $6,055 $ $ $6,055 
Level 1(2)
Money market funds1,132   1,132 1,196   1,196 
Level 2(3)
Certificates of deposit1,326 50  1,376 976 50  1,026 
Corporate bonds1 776 507 1,284  759 995 1,754 
Asset-backed securities 17 435 452  20 608 628 
Government securities5 111 31 147 2 155 44 201 
Commercial paper 100  100 33 85  118 
9,298 $1,054 $973 $11,325 8,262 $1,069 $1,647 $10,978 
Restricted cash(4)
72 77 
Cash, cash equivalents, and restricted cash$9,370 $8,339 
(1)The maturities of long-term marketable securities primarily range from one to four years.
(2)The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets.
(3)The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of June 1, 2023 or September 1, 2022.
(4)Restricted cash is included in other current assets and other noncurrent assets and primarily relates to certain government incentives received prior to being earned and for which restrictions lapse upon achieving certain performance conditions or which will be returned if performance conditions are not met.

Gross realized gains and losses from sales of available-for-sale securities were not significant for any period presented.

Non-marketable Equity Investments

In addition to the amounts included in the table above, we had $217 million and $222 million of non-marketable equity investments without a readily determinable fair value that were included in other noncurrent assets as of June 1, 2023 and September 1, 2022, respectively.


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Receivables
As ofJune 1,
2023
September 1,
2022
Trade receivables$2,042 $4,765 
Income and other taxes244 251 
Other143 114 
$2,429 $5,130 


Inventories
As ofJune 1,
2023
September 1,
2022
Finished goods$1,775 $1,028 
Work in process5,722 4,830 
Raw materials and supplies741 805 
$8,238 $6,663 

The third quarter and first nine months of 2023, included charges of $401 million and $1.83 billion, respectively, to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable value.


Property, Plant, and Equipment
As ofJune 1,
2023
September 1,
2022
Land$279 $280 
Buildings17,622 16,676 
Equipment(1)
65,175 61,354 
Construction in progress(2)
2,398 1,897 
Software1,251 1,124 
 86,725 81,331 
Accumulated depreciation(47,998)(42,782)
 $38,727 $38,549 
(1)Includes costs related to equipment not placed into service of $3.33 billion as of June 1, 2023 and $3.35 billion as of September 1, 2022.
(2)Includes building-related construction, tool installation, and software costs for assets not placed into service.


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Intangible Assets
June 1, 2023September 1, 2022
As ofGross
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Amount
Accumulated
Amortization
Net Carrying
Amount
Product and process technology$622 $(212)$410 $742 $(321)$421 

In the first nine months of 2023 and 2022, we capitalized $72 million and $130 million, respectively, for product and process technology with weighted-average useful lives of 9 years. Amortization expense was $66 million and $63 million for the first nine months of 2023 and 2022, respectively. Expected amortization expense is $19 million for the remainder of 2023, $72 million for 2024, $50 million for 2025, $46 million for 2026, and $42 million for 2027.


Leases

The components of lease cost are presented below:
Quarter endedNine months ended
June 1,
2023
June 2,
2022
June 1,
2023
June 2,
2022
Finance lease cost
Amortization of right-of-use assets$28 $23 $77 $75 
Interest on lease liabilities6 6 18 18 
Operating lease cost(1)
34 32 101 91 
$68 $61 $196 $184 
(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented.

Supplemental cash flow information related to leases was as follows:
Nine months endedJune 1,
2023
June 2,
2022
Cash flows used for operating activities
Finance leases
$17 $18 
Operating leases
91 81 
Cash flows used for financing activities – Finance leases79 79 
Noncash acquisitions of right-of-use assets
Finance leases354 304 
Operating leases
35 190 

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Supplemental balance sheet information related to leases was as follows:
As ofJune 1,
2023
September 1,
2022
Finance lease right-of-use assets (included in property, plant, and equipment)$1,187 $904 
Current operating lease liabilities (included in accounts payable and accrued expenses)62 60 
Weighted-average remaining lease term (in years)
Finance leases
1012
Operating leases
1112
Weighted-average discount rate
Finance leases
3.48 %2.65 %
Operating leases
3.11 %2.90 %

As of June 1, 2023, maturities of lease liabilities by fiscal year were as follows:
For the year endingFinance LeasesOperating Leases
Remainder of 2023$49 $3 
2024184 73 
2025169 73 
2026159 72 
2027154 72 
2028 and thereafter641 524 
Less imputed interest(185)(152)
$1,171 $665 

The table above excludes obligations for leases that have been executed but have not yet commenced. As of June 1, 2023, excluded obligations consisted of $175 million of estimated finance lease payments over a weighted-average period of 11 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.


Accounts Payable and Accrued Expenses
As ofJune 1,
2023
September 1,
2022
Accounts payable$1,640 $2,142 
Property, plant, and equipment1,523 2,170 
Salaries, wages, and benefits412 877 
Income and other taxes148 420 
Other454 481 
$4,177 $6,090 


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Debt
June 1, 2023September 1, 2022
Net Carrying AmountNet Carrying Amount
As ofStated RateEffective RateCurrentLong-TermTotalCurrentLong-TermTotal
2024 Term Loan A5.860 %5.90 %$ $587 $587 $ $1,187 $1,187 
2025 Term Loan A6.503 %6.64 % 1,050 1,050    
2026 Term Loan A6.628 %6.76 %49 933 982    
2027 Term Loan A6.753 %6.89 %57 1,078 1,135    
2026 Notes
4.975 %5.07 % 499 499  498 498 
2027 Notes(1)
4.185 %4.27 % 796 796  806 806 
2028 Notes5.375 %5.52 % 596 596    
2029 A Notes5.327 %5.40 % 697 697  697 697 
2029 B Notes6.750 %6.54 % 1,263 1,263    
2030 Notes
4.663 %4.73 % 846 846  846 846 
2032 Green Bonds2.703 %2.77 % 995 995  994 994 
2033 A Notes5.875 %5.96 % 745 745    
2033 B Notes5.875 %6.01 % 890 890    
2041 Notes3.366 %3.41 % 497 497  496 496 
2051 Notes3.477 %3.52 % 496 496  496 496 
Finance lease obligations
N/A3.48 %153 1,018 1,171 103 783 886 
 
$259 $12,986 $13,245 $103 $6,803 $6,906 
(1) In 2021, we entered into fixed-to-floating interest rate swaps on the 2027 Notes with an aggregate $900 million notional amount equal to the principal amount of the 2027 Notes. The resulting variable interest paid is at a rate equal to SOFR plus approximately 3.33%. The fixed-to-floating interest rate swaps are accounted for as fair value hedges, and as a result, the carrying values of our 2027 Notes reflect adjustments in fair value.

Debt Activity

The table below presents the effects of debt financing and prepayment activities in the first nine months of 2023.
Increase (Decrease) in PrincipalIncrease (Decrease) in Carrying ValueIncrease (Decrease) in Cash
Issuances
2025 Term Loan A$1,052 $1,050 $1,050 
2026 Term Loan A996 994 994 
2027 Term Loan A1,152 1,149 1,149 
2028 Notes600 596 596 
2029 B Notes1,250 1,264 1,264 
2033 A Notes750 745 745 
2033 B Notes900 890 890 
Prepayments
2024 Term Loan A(600)(600)(600)
$6,100 $6,088 $6,088 

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Term Loan Agreement

On November 3, 2022, we entered into a term loan agreement consisting of three tranches and borrowed $2.60 billion in aggregate principal amount, including $927 million due November 3, 2025; $746 million due November 3, 2026; and $927 million due November 3, 2027 (the “Term Loan Agreement”). We incurred aggregate fees of $6 million in connection with these borrowings.

On January 5, 2023, we amended the Term Loan Agreement and borrowed an additional $600 million in aggregate principal amount, including $125 million due November 3, 2025, $250 million due November 3, 2026, and $225 million due November 3, 2027. The additional borrowings have terms that are identical to, and will be treated as a single class with, the three original tranches.

The 2026 Term Loan A and 2027 Term Loan A each require equal quarterly installment payments in an amount equal to 1.25% of the original principal amount. The 2025 Term Loan A does not require quarterly installment payments. Borrowings under the Term Loan Agreement will generally bear interest at adjusted term SOFR plus an applicable interest rate margin ranging from 1.00% to 2.00%, varying by tranche and depending on our corporate credit ratings. Adjusted term SOFR for the Term Loan Agreement is the SOFR benchmark plus 0.10%. The Term Loan Agreement requires us to maintain, on a consolidated basis, a leverage ratio of total indebtedness to adjusted EBITDA, as defined in the Term Loan Agreement and calculated as of the last day of each fiscal quarter, not to exceed 3.25 to 1.00, except as described below.

On March 27, 2023, we further amended the Term Loan Agreement to provide that in lieu of the foregoing leverage ratio, during the fourth quarter of 2023 and each quarter of 2024, we will be required to maintain, on a consolidated basis, a net leverage ratio of total net indebtedness to adjusted EBITDA, as defined in the Term Loan Agreement and calculated as of the last day of each fiscal quarter, not to exceed 3.25 to 1.00, or alternatively, for up to three of such five quarters, we may elect to comply with a requirement of minimum liquidity, as defined in the Term Loan Agreement, of not less than $5.0 billion. Each of the leverage ratio and net leverage ratio maximums, as applicable, is subject to a temporary four quarter increase in such ratio to 3.75 to 1.00 following certain material acquisitions. Our obligations under the Term Loan Agreement are unsecured.

2024 Term Loan A

On March 27, 2023, we also amended the agreement governing the 2024 Term Loan A to align the leverage ratio covenant with the corresponding covenant in the Term Loan Agreement described above.

On April 13, 2023, we used a portion of the proceeds from our April 11, 2023 issuance of senior unsecured notes to prepay $600 million principal amount of our 2024 Term Loan A.

On June 7, 2023, the 2024 Term Loan A agreement was amended, pursuant to its transition provisions, to replace LIBOR-based benchmark rates with SOFR-based benchmark rates effective July 1, 2023. After giving effect to this amendment, borrowings under the 2024 Term Loan A will generally bear interest at adjusted term SOFR plus an applicable interest rate margin ranging from 0.625% to 1.375% depending on our corporate credit ratings. Adjusted term SOFR for the 2024 Term Loan A is the SOFR benchmark plus a credit spread adjustment ranging from approximately 0.11% to 0.43% depending on the applicable interest period selected.

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Senior Unsecured Notes

On October 31, 2022, we issued $750 million principal amount of senior unsecured 2029 B Notes. The 2029 B Notes bear interest at a rate of 6.750% per year and will mature on November 1, 2029. Aggregate issuance costs and debt discount for these notes were $6 million.

On February 9, 2023, we issued an additional $500 million principal amount of 2029 B Notes at a $22 million premium. The additional notes have terms that are identical to the terms of the original 2029 B Notes other than the original offering price. Also on February 9, 2023, we issued $750 million principal amount of senior unsecured 2033 A Notes. The 2033 A Notes bear interest at a rate of 5.875% per year and will mature on February 9, 2033. Aggregate issuance costs for these notes were $7 million.

On April 11, 2023, we issued $600 million principal amount of senior unsecured 2028 Notes and $900 million principal amount of senior unsecured 2033 B Notes. The 2028 Notes bear interest at a rate of 5.375% per year and will mature on April 15, 2028. The 2033 B Notes bear interest at a rate of 5.875% per year and will mature on September 15, 2033. Aggregate issuance costs and debt discount for these notes were $14 million.

We may redeem the 2028 Notes, the 2029 B Notes, the 2033 A Notes, and the 2033 B Notes (the “Notes”), in whole or in part, at our option prior to their maturity dates at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the present value of the remaining scheduled payments of principal and interest, plus accrued interest in each case. We may also redeem the Notes, in whole or in part, at a price equal to par either one, two, or three months prior to maturity in accordance with the terms of the Notes.

The Notes contain covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries (which are generally domestic subsidiaries in which we own at least 80% of the voting stock and which own principal property, as defined in the indenture governing such notes) to (1) create or incur certain liens; (2) enter into certain sale and lease-back transactions; and (3) consolidate with or merge with or into, or convey, transfer, or lease all or substantially all of our properties and assets, to another entity. These covenants are subject to a number of limitations and exceptions. Additionally, if a change of control triggering event, as defined in the indenture governing the Notes, occurs with respect to a series of Notes, we will be required to offer to purchase such Notes at 101% of the outstanding aggregate principal amount plus accrued interest up to the purchase date.

Revolving Credit Facility

As of June 1, 2023, $2.50 billion was available to us under the Revolving Credit Facility and no amounts were outstanding. Any amounts outstanding under the Revolving Credit Facility would mature in May 2026 and amounts borrowed may be prepaid any time without penalty. Under the transition provisions of the Revolving Credit Facility agreement, after the retirement of LIBOR on June 30, 2023, any amounts drawn under the Revolving Credit Facility would generally bear interest at a rate equal to adjusted term SOFR plus 1.00% to 1.75%, depending on our corporate credit ratings. Adjusted term SOFR for the Revolving Credit Facility agreement is the SOFR benchmark plus a credit spread adjustment ranging from approximately 0.11% to 0.43% depending on the applicable interest period selected.

On March 27, 2023, we amended the agreement governing the Revolving Credit Facility to align the leverage ratio covenant with the corresponding covenants in the Term Loan Agreement and 2024 Term Loan A described above.

On June 7, 2023, the Revolving Credit Facility agreement was amended, pursuant to its transition provisions, to replace LIBOR-based benchmark rates with SOFR-based benchmark rates effective July 1, 2023.
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Maturities of Notes Payable

As of June 1, 2023, maturities of notes payable by fiscal year were as follows:
Remainder of 2023$27 
2024107 
2025695 
20261,659 
20271,780 
2028 and thereafter7,942 
Unamortized issuance costs, discounts, and premium, net(35)
Hedge accounting fair value adjustment(101)
$12,074 


Commitments

In the second quarter of 2023, we entered into an 18-year power purchase agreement in Singapore to purchase up to 450 megawatts of power at variable prices. This contract, which begins in the fourth quarter of 2023, is expected to supply the majority of our power consumption needs in Singapore with more favorable pricing than our existing supply arrangements.


Contingencies

We are currently a party to legal actions other than those described below arising from the normal course of business, none of which are expected to have a material adverse effect on our business, results of operations, or financial condition.

Patent Matters

As is typical in the semiconductor and other high-tech industries, from time to time, others have asserted, and may in the future assert, that our products or manufacturing processes infringe upon their intellectual property rights.

On March 19, 2018, Micron Semiconductor (Xi’an) Co., Ltd. (“MXA”) was served with a patent infringement complaint filed by Fujian Jinhua Integrated Circuit Co., Ltd. (“Jinhua”) in the Fuzhou Intermediate People’s Court in Fujian Province, China (the “Fuzhou Court”). On April 3, 2018, Micron Semiconductor (Shanghai) Co. Ltd. (“MSS”) was served with the same complaint. The complaint alleges that MXA and MSS infringed one Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 98 million Chinese yuan plus court fees incurred.

On March 21, 2018, MXA was served with a patent infringement complaint filed by United Microelectronics Corporation (“UMC”) in the Fuzhou Court. On April 3, 2018, MSS was served with the same complaint. The complaint alleges that MXA and MSS infringed one Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 90 million Chinese yuan plus court fees incurred. On November 26, 2021, pursuant to a settlement agreement between UMC and Micron, UMC filed an application to the Fuzhou Court to withdraw its complaints against MXA and MSS.

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On April 3, 2018, MSS was served with another patent infringement complaint filed by Jinhua and an additional complaint filed by UMC in the Fuzhou Court. The additional complaints allege that MSS infringes two Chinese patents by manufacturing and selling certain Crucial MX300 SSDs. The complaint filed by UMC seeks an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 90 million Chinese yuan plus court fees incurred. The complaint filed by Jinhua seeks an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China; to stop manufacturing, using, selling, and offering for sale the accused products in China; and to pay damages of 98 million Chinese yuan plus court fees incurred. On November 26, 2021, pursuant to a settlement agreement between UMC and Micron, UMC filed an application to the Fuzhou Court to withdraw its complaint against MSS.

On July 5, 2018, MXA and MSS were notified that the Fuzhou Court granted a preliminary injunction against those entities that enjoins them from manufacturing, selling, or importing certain Crucial and Ballistix-branded DRAM modules and solid-state drives in China. We are complying with the ruling and have requested the Fuzhou Court to reconsider or stay its decision.

On May 4, 2020, Flash-Control, LLC (“Flash-Control”) filed a patent infringement action against Micron in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by unspecified DDR4 SDRAM, NVRDIMM, NVDIMM, 3D XPoint, and/or SSD products that incorporate memory controllers and flash memory. The complaint seeks damages, attorneys’ fees, and costs. On July 21, 2020, in a separate matter, the District Court ruled that two of the four asserted patents are invalid, and on July 14, 2021, the U.S. Court of Appeals for the Federal Circuit affirmed the ruling of invalidity. On May 10, 2023, Flash-Control voluntarily dismissed its complaint with prejudice.

On April 28, 2021, Netlist, Inc. (“Netlist”) filed two patent infringement actions against Micron, Micron Semiconductor Products, Inc. (“MSP”), and Micron Technology Texas, LLC (“MTEC”) in the U.S. District Court for the Western District of Texas. The first complaint alleges that one U.S. patent is infringed by certain of our non-volatile dual in-line memory modules. The second complaint alleges that three U.S. patents are infringed by certain of our load-reduced dual in-line memory modules (“LRDIMMs”). Each complaint seeks injunctive relief, damages, attorneys’ fees, and costs. On March 31, 2022, Netlist filed a patent infringement complaint against Micron and Micron Semiconductor Germany, GmbH in Dusseldorf Regional Court alleging that two German patents are infringed by certain of our LRDIMMs. The complaint seeks damages, costs, and injunctive relief. On June 10, 2022, Netlist filed a patent infringement complaint against Micron, MSP, and MTEC in the U.S. District Court for the Eastern District of Texas (“E.D. Tex.”) alleging that six U.S. patents are infringed by certain of our memory modules and HBM products. On August 1, 2022, Netlist filed a second patent infringement complaint against the same defendants in E.D. Tex. alleging that one U.S. patent is infringed by certain of our LRDIMMs. On August 15, 2022, Netlist amended the second complaint to assert that two additional U.S. patents are infringed by certain of our LRDIMMs. The complaints in E.D. Tex. seek injunctive relief, damages, and attorneys’ fees.

On May 10, 2021, Vervain, LLC filed a patent infringement action against Micron, MSP, and MTEC in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by certain SSD products. The complaint seeks injunctive relief, damages, attorneys’ fees, and costs. On April 21, 2023, the complaint was dismissed with prejudice pursuant to an agreement between the parties.

On August 16, 2022, Sonrai Memory Ltd. filed a patent infringement action against Micron in the U.S. District Court for the Western District of Texas. The complaint alleges that two U.S. patents are infringed by certain SSD and NAND flash products. The complaint seeks damages, attorneys’ fees, and costs.

On January 23, 2023, Besang Inc. filed a patent infringement complaint against Micron, MSP, and MTEC in the U.S. District Court for the Eastern District of Texas. The complaint alleges that one U.S. patent is infringed by certain of our 3D NAND and SSD products. The complaint seeks an injunction, damages, attorneys’ fees, and costs.

Among other things, the above lawsuits pertain to substantially all of our DRAM, NAND, and other memory and storage products we manufacture, which account for substantially all of our revenue.

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Qimonda

On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda’s insolvency proceedings, filed suit against Micron and Micron Semiconductor B.V. (“Micron B.V.”), in the District Court of Munich, Civil Chamber. The complaint seeks to void, under Section 133 of the German Insolvency Act, a share purchase agreement between Micron B.V. and Qimonda signed in fall 2008, pursuant to which Micron B.V. purchased substantially all of Qimonda’s shares of Inotera (the “Inotera Shares”), representing approximately 18% of Inotera’s outstanding shares at that time, and seeks an order requiring us to re-transfer those shares to the Qimonda estate. The complaint also seeks, among other things, to recover damages for the alleged value of the joint venture relationship with Inotera and to terminate, under Sections 103 or 133 of the German Insolvency Code, a patent cross-license between us and Qimonda entered into at the same time as the share purchase agreement.

Following a series of hearings with pleadings, arguments, and witnesses on behalf of the Qimonda estate, on March 13, 2014, the court issued judgments: (1) ordering Micron B.V. to pay approximately $1 million in respect of certain Inotera Shares sold in connection with the original share purchase; (2) ordering Micron B.V. to disclose certain information with respect to any Inotera Shares sold by it to third parties; (3) ordering Micron B.V. to disclose the benefits derived by it from ownership of the Inotera Shares, including in particular, any profits distributed on the Inotera Shares and all other benefits; (4) denying Qimonda’s claims against Micron for any damages relating to the joint venture relationship with Inotera; and (5) determining that Qimonda’s obligations under the patent cross-license agreement are canceled. In addition, the court issued interlocutory judgments ordering, among other things: (1) that Micron B.V. transfer to the Qimonda estate the Inotera Shares still owned by Micron B.V. and pay to the Qimonda estate compensation in an amount to be specified for any Inotera Shares sold to third parties; and (2) that Micron B.V. pay the Qimonda estate as compensation an amount to be specified for benefits derived by Micron B.V. from ownership of the Inotera Shares. The interlocutory judgments had no immediate, enforceable effect and Micron, accordingly, has been able to continue to operate with full control of the Inotera Shares subject to further developments in the case. Micron and Micron B.V. appealed the judgments to the German Appeals Court, which thereafter appointed an independent expert to perform an evaluation of Dr. Jaffé’s claims that the amount Micron paid for Qimonda was less than fair market value. On March 31, 2020, the expert presented an opinion to the Appeals Court concluding that the amount paid by Micron was within an acceptable range of fair value. On October 5, 2022, the Appeals Court ruled that the relevant issue to be addressed is whether Qimonda's creditors were prejudiced such that the original transaction should be voided.

On May 9, 2023, Micron and Dr. Jaffé reached an agreement in principle to dismiss the case in exchange for a one-time payment by Micron to the Qimonda estate and a waiver of each party’s claims. The agreement is expected to be formally entered by the Appeals Court in July 2023.

Antitrust Matters

Six cases have been filed against Micron alleging price fixing of DRAM products in the following Canadian courts on the dates indicated: Superior Court of Quebec (April 30, 2018 and May 3, 2018), the Federal Court of Canada (May 2, 2018), the Ontario Superior Court of Justice (May 15, 2018), and the Supreme Court of British Columbia (May 10, 2018). The plaintiffs in these cases are individuals seeking certification of class actions on behalf of direct and indirect purchasers of DRAM in Canada (or regions of Canada) between June 1, 2016 and February 1, 2018.

On May 15, 2018, the Chinese State Administration for Market Regulation (“SAMR”) notified Micron that it was investigating potential collusion and other anticompetitive conduct by DRAM suppliers in China. On May 31, 2018, SAMR made unannounced visits to our sales offices in Beijing, Shanghai, and Shenzhen to seek certain information as part of its investigation. We are cooperating with SAMR in its investigation.

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Securities Matters

On February 9, 2021, a derivative complaint was filed by a shareholder against Sanjay Mehrotra and other current and former directors of Micron, allegedly on behalf of and for the benefit of Micron, in the U.S. District Court for the District of Delaware alleging violations of securities laws, breaches of fiduciary duties, and other violations of law involving allegedly false and misleading statements about Micron’s commitment to diversity and progress in diversifying its workforce, executive leadership, and Board of Directors. The complaint seeks damages, fees, interest, costs, and an order requiring Micron to take various actions to allegedly improve its corporate governance and internal procedures.

Other Matters

In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify another party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, our payments under these types of agreements have not had a material adverse effect on our business, results of operations, or financial condition.

Contingency Assessment

Except for the expected one-time payment to the Qimonda estate described above, which is not material, we are unable to predict the outcome of any of the matters noted above and cannot make a reasonable estimate of the potential loss or range of possible losses. A determination that our products or manufacturing processes infringe the intellectual property rights of others or entering into a license agreement covering such intellectual property could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing, as well as the resolution of any other legal matter noted above, could have a material adverse effect on our business, results of operations, or financial condition.


Equity

Common Stock Repurchases: Our Board of Directors has authorized the discretionary repurchase of up to $10 billion of our outstanding common stock through open-market purchases, block trades, privately-negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase authorization has no expiration date, does not obligate us to acquire any common stock, and is subject to market conditions and our ongoing determination of the best use of available cash. No shares were repurchased in the second or third quarters of 2023. In the first quarter of 2023, we repurchased 8.6 million shares of our common stock for $425 million. Through June 1, 2023, we had repurchased an aggregate of $6.89 billion under the authorization. Amounts repurchased are included in treasury stock.

Dividends: We declared and paid dividends of $126 million ($0.115 per share) in each of the first three quarters of 2023. On June 28, 2023, our Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on