Micron Technology MU · USD

Segment and Other InformationWe initiated a strategic reorganization of our business units to a market segment-focused business unit structure, with AI growth opportunities in every business unit. We completed the reorganization of our operations and organizational structure and began to manage operations under our new segment structure effective in the fourth quarter of 2025. As high-performance memory and storage become increasingly vital to drive the growth of AI, this business unit reorganization allows us to stay at the forefront of innovation in each market segment through deeper customer engagement and to address the dynamic needs of the industry. All prior-period segment amounts have been retrospectively adjusted to reflect the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income (loss). The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments. There are no changes to our Consolidated Financial Statements for any prior periods.We have the following four business units, which are our reportable segments:•Cloud Memory Business Unit (“CMBU”): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers. •Core Data Center Business Unit (“CDBU”): Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers.•Mobile and Client Business Unit (“MCBU”): Focused on memory and storage solutions for the mobile and client segments.•Automotive and Embedded Business Unit (“AEBU”): Focused on memory and storage solutions for the automotive, industrial, and consumer segments.Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production.

Revenue and Customer Contract LiabilitiesRevenue by TechnologyFor the year ended202520242023DRAM$28,578 $17,603 $10,978 NAND8,503 7,227 4,206 Other (primarily NOR)297 281 356 $37,378 $25,111 $15,540 See Note 27. Segment and Other Information for disclosure of disaggregated revenue by market segment. Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Substantially all contracts with our customers are short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. From time to time, we have contracts with initial terms that include performance obligations that extend beyond one year. As of August 28, 2025, our future performance obligations beyond one year were $143 million, which included customer prepayments and other contract liabilities.As of August 28, 2025 and August 29, 2024, customer prepayments made to secure product supply in future periods and other contract liabilities were $169 million and $907 million, respectively, of which $26 million and $766 million were reported in other current liabilities, respectively. The remainder of the customer prepayments and other contract liabilities were in other noncurrent liabilities. Revenue recognized during 2025 from the beginning balance as of August 29, 2024 included $778 million from shipments against customer prepayments and other contract liabilities.As of August 28, 2025 and August 29, 2024, other current liabilities included $1.19 billion and $718 million, respectively, for estimates of consideration payable to customers including estimates for pricing adjustments and returns.In 2023, we received an aggregate of $228 million from settlements of insurance claims involving a power disruption in 2022 and an operational disruption in 2017, of which $186 million was for business interruption and recognized in revenue.

CommitmentsAs of August 28, 2025, we had noncancelable commitments with remaining contractual terms in excess of one year of approximately $5.5 billion for purchase obligations, of which approximately $1.2 billion will be due in 2026, $1.2 billion due in 2027, $1.0 billion due in 2028, $400 million due in 2029, $400 million due in 2030, and $1.3 billion due in 2031 and thereafter. Purchase obligations primarily include payments for goods or services with either a fixed or minimum quantity and price, which includes payments for the acquisition of property, plant, and equipment. Payments for leases that have been executed but have not yet commenced are excluded.

DebtAs of August 28, 2025As of August 29, 2024Net Carrying AmountNet Carrying AmountStated RateEffective RatePrincipalCurrentLong-TermTotalPrincipalCurrentLong-TermTotal2028 Notes5.375 %5.52 %$542 $— $540 $540 $600 $— $597 $597 2029 Term Loan A5.455 %5.49 %984 — 982 982 — — — — 2029 A Notes5.327 %5.40 %700 — 698 698 700 — 698 698 2029 B Notes6.750 %6.54 %1,159 — 1,168 1,168 1,250 — 1,261 1,261 2030 Notes4.663 %4.73 %796 — 794 794 850 — 847 847 2031 Notes5.300 %5.41 %1,000 — 995 995 1,000 — 994 994 2032 Green Bonds2.703 %2.77 %1,000 — 996 996 1,000 — 996 996 2032 Notes5.650 %5.79 %500 — 496 496 — — — — 2033 A Notes5.875 %5.96 %750 — 746 746 750 — 745 745 2033 B Notes5.875 %6.01 %900 — 892 892 900 — 891 891 2035 A Notes5.800 %5.90 %1,000 — 992 992 — — — — 2035 B Notes6.050 %6.14 %1,250 — 1,241 1,241 — — — — 2041 Notes3.366 %3.41 %500 — 497 497 500 — 497 497 2051 Notes3.477 %3.52 %500 — 496 496 500 — 496 496 2026 Term Loan AN/AN/A— — — — 922 49 872 921 2026 NotesN/AN/A— — — — 500 — 499 499 2027 Term Loan AN/AN/A— — — — 1,065 57 1,006 1,063 2027 NotesN/AN/A— — — — 900 — 838 838 Finance lease obligationsN/A5.19 %3,044 560 2,484 3,044 2,054 325 1,729 2,054 $14,625 $560 $14,017 $14,577 $13,491 $431 $12,966 $13,397 As of August 28, 2025, all of our debt, other than finance lease obligations, were unsecured obligations that rank equally in right of payment with all of our other existing and future unsecured indebtedness and were effectively subordinated to all future secured indebtedness, to the extent of the value of the assets securing such indebtedness. All our unsecured debt were obligations of our parent company, Micron, and were structurally subordinated to all liabilities of its subsidiaries, including trade payables. The terms of our indebtedness generally contain cross payment default and cross acceleration provisions. Micron’s guarantees of certain liabilities of its subsidiaries are unsecured obligations ranking equally in right of payment with all of Micron’s other existing and future unsecured indebtedness.

Income TaxesOur income tax (provision) benefit consisted of the following:For the year ended202520242023Income (loss) before income taxes and equity in net income (loss) of equity method investeesU.S.$686 $544 $235 Foreign8,968 696 (5,893) $9,654 $1,240 $(5,658)Income tax (provision) benefitCurrentU.S. federal$(275)$(82)$(5)State(15)(1)(1)Foreign(670)(333)(178) (960)(416)(184)DeferredU.S. federal(118)18 (84)State— — — Foreign(46)(53)91 (164)(35)7 Income tax (provision) benefit$(1,124)$(451)$(177)The table below reconciles our tax (provision) benefit based on the U.S. federal statutory rate to our effective rate:For the year ended202520242023U.S. federal income tax (provision) benefit at statutory rate$(2,027)21.0 %$(260)21.0 %$1,188 21.0 %U.S. tax on foreign operations(476)4.9 (7)0.6 6 0.1 Change in valuation allowance36 (0.4)(59)4.8 (50)(0.9)Change in unrecognized tax benefits(23)0.2 (41)3.3 (30)(0.5)Foreign tax rate differential1,132 (11.7)(214)17.2 (1,285)(22.8)Research and development tax credits208 (2.2)76 (6.1)43 0.8 State taxes, net of federal benefit(7)0.1 12 (1.0)37 0.7 Other33 (0.3)42 (3.4)(86)(1.5)Income tax (provision) benefit$(1,124)11.6 %$(451)36.4 %$(177)(3.1)%We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $1.05 billion (benefiting our diluted earnings per share by $0.93) for 2025. As a result of low level of profitability and geographic mix of income, the benefit from tax incentive arrangements was not material for 2024 or 2023.As of August 28, 2025, certain non-U.S. subsidiaries had cumulative undistributed earnings of $4.31 billion that were deemed to be indefinitely reinvested. A provision has not been recognized to the extent that distributions from such subsidiaries are subject to additional foreign withholding or state income tax. Determination of the amount of unrecognized deferred tax liabilities related to investments in these foreign subsidiaries is not practicable.Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes as well as carryforwards.

LeasesWe have finance and operating leases through which we obtain the right to use facilities, land, and equipment that support our business operations. Our finance leases consist primarily of (1) equipment leases and (2) gas and other supply agreements that are deemed to contain embedded leases. Our operating leases consist primarily of offices, laboratories, other facilities, and land. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 99 years for land. In determining the lease term, we assess whether we are reasonably certain to exercise any options to renew or terminate a lease or to purchase the right-of-use asset. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease. Our assessment includes determining whether we or the supplier control the assets used to fulfill the agreements by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those assets.The components of lease cost are presented below:For the year ended202520242023Finance lease costAmortization of right-of-use asset$335 $176 $105 Interest on lease liability127 70 24 Operating lease cost(1)153 140 137 $615 $386 $266 (1)Includes short-term and variable lease costs.Supplemental cash flow information related to leases was as follows:For the year ended202520242023Cash flows used for operating activitiesFinance leases$120 $61 $24 Operating leases149 132 139 Cash flows used for financing activities – Finance leases323 155 109 Non-cash acquisitions of right-of-use assetsFinance leases1,298 905 508 Operating leases166 54 57 Supplemental balance sheet information related to leases was as follows:As ofAugust 28,2025August 29,2024Finance lease right-of-use assets (included in property, plant, and equipment)$3,004 $2,038 Current operating lease liabilities (included in accounts payable and accrued expenses)74 71 Weighted-average remaining lease term (in years)Finance leases78Operating leases1210Weighted-average discount rateFinance leases5.19 %4.91 %Operating leases4.26 %3.

We have established policies and processes for assessing, identifying, and managing material risk from cybersecurity threats and have integrated these processes into our overall risk management systems and processes. We have aligned our cybersecurity program with recognized security frameworks, such as NIST-CSF (National Institute of Standard and Technologies – CyberSecurity Framework). We routinely assess material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. We conduct regular risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks. Following these risk assessments, we implement and maintain reasonable safeguards to minimize identified risks, reasonably address any identified gaps in existing safeguards, and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate high-level personnel, including our Chief Security Officer and Chief Information Officer, to manage the risk assessment and mitigation process.We have implemented technical solutions that are designed to protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, and access controls. We regularly evaluate, monitor, and improve these solutions. As part of our overall risk management system, we monitor and test our safeguards and train our employees on these safeguards, in collaboration with human resources, information technology, legal, compliance and ethics, and management. Personnel at all levels and departments are made aware of our cybersecurity policies through periodic trainings.We periodically engage assessors, consultants, auditors, or other third parties in connection with our risk assessment processes.

EquityCommon Stock RepurchasesOur 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, restrictions applicable under our CHIPS Act direct funding agreements, and our ongoing determination of the best use of available cash. See Item 8. Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 20. Government Incentives. No shares were repurchased in 2025. We repurchased 3.2 million shares of our common stock for $300 million in 2024. Through August 28, 2025, we had repurchased an aggregate of $7.19 billion under the authorization. Amounts repurchased are included in treasury stock.DividendsIn each quarter of 2025, we declared and paid dividends of $0.115 per share. On September 23, 2025, our Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 21, 2025, to shareholders of record as of the close of business on October 3, 2025.