SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

MICRON TECHNOLOGY, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in millions)



For the year ended	September 3, 2015			August 28, 2014			August 29, 2013
Net sales	$	5,547		$	5,819		$	4,404
Cost of goods sold	3,329			3,514			3,721
Gross margin	2,218			2,305			683

Selling, general and administrative	299			264			238
Research and development	1,483			1,389			921
Other operating (income) expense, net	(12		)	251			77
Operating income (loss)	448			401			(553		)

Gain on MMJ Acquisition	—			(33		)	1,484
Interest income (expense), net	(273		)	(209		)	(189		)
Other non-operating income (expense), net	(85		)	(86		)	(248		)
	90			73			494

Income tax (provision) benefit	38			18			(1		)
Equity in earnings (loss) of subsidiaries	2,773			2,956			703
Equity in net loss of equity method investees	(2		)	(2		)	(6		)
Net income attributable to Micron	2,899			3,045			1,190
Other comprehensive income (loss)	(43		)	(7		)	(17		)
Comprehensive income attributable to Micron	$	2,856		$	3,038		$	1,173

See accompanying notes to condensed financial statements.

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

MICRON TECHNOLOGY, INC.

(Parent Company Only)

CONDENSED BALANCE SHEETS

(in millions except par value amounts)



As of	September 3, 2015		August 28, 2014
Assets
Cash and equivalents	$	721	$	1,249
Short-term investments	479		384
Receivables	133		114
Notes and accounts receivable from subsidiaries	1,091		1,767
Finished goods	77		84
Work in process	321		228
Raw materials and supplies	86		68
Other current assets	82		215
Total current assets	2,990		4,109
Investment in subsidiaries	13,051		10,149
Long-term marketable investments	932		819
Noncurrent notes receivable from and prepaid expenses to subsidiaries	163		111
Property, plant and equipment, net	1,679		1,519
Equity method investments	—		9
Other noncurrent assets	488		543
Total assets	$	19,303	$	17,259

Liabilities and equity
Accounts payable and accrued expenses	$	677	$	766
Short-term debt and accounts payable to subsidiaries	384		619
Current debt	655		1,065
Other current liabilities	8		30
Total current liabilities	1,724		2,480
Long-term debt	4,797		3,191
Other noncurrent liabilities	431		760
Total liabilities	6,952		6,431

Commitments and contingencies

Redeemable convertible notes	49		68

Micron shareholders' equity:
Common stock, $0.10 par value, 3,000 shares authorized, 1,084 shares issued and outstanding (1,073 as of August 28, 2014)	108		107
Other equity	12,194		10,653
Total Micron shareholders' equity	12,302		10,760
Total liabilities and equity	$	19,303	$	17,259

See accompanying notes to condensed financial statements.

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

MICRON TECHNOLOGY, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF CASH FLOWS

(in millions)



For the year ended	September 3, 2015			August 28, 2014			August 29, 2013
Net cash (used for) provided by operating activities	$	996		$	888		$	(347	)

Cash flows from investing activities
Purchases of available-for-sale securities	(1,799		)	(1,047		)	(924		)
Expenditures for property, plant, and equipment	(609		)	(392		)	(350		)
Cash contributions to subsidiaries	(151		)	(121		)	(23		)
Payments to settle hedging activities	(135		)	(27		)	(256		)
Cash paid for acquisitions	(57		)	—			(596		)
Expenditures for intangible assets	(42		)	(43		)	(34		)
Proceeds from sales and maturities of available-for-sale securities	1,581			557			678
Proceeds from settlement of hedging activities	78			23			38
Proceeds from repayment of loans to subsidiaries, net	65			379			851
Cash distributions from subsidiaries	33			227			38
Proceeds from sales of property, plant, and equipment	19			45			38
Proceeds from receipt of loan payments	10			56			—
Cash received from disposition of interest in Aptina	1			105			—
Other	5			7			(36		)
Net cash provided by (used for) investing activities	(1,001		)	(231		)	(576		)

Cash flows from financing activities
Repayments of debt	(1,645		)	(2,469		)	(777		)
Cash paid to acquire treasury stock	(884		)	(76		)	(5		)
Payments of licensing obligations	(82		)	(47		)	(31		)
Proceeds from issuance of debt	2,050			1,750			693
Proceeds from issuance of stock under equity plans	73			265			150
Proceeds from equipment sale-leaseback transactions	—			—			126
Other	(35		)	(32		)	(43		)
Net cash provided by (used for) financing activities	(523		)	(609		)	113

Effect of changes in currency exchange rates on cash and cash equivalents	—			(1		)	—

Net increase (decrease) in cash and equivalents	(528		)	47			(810		)
Cash and equivalents at beginning of period	1,249			1,202			2,012
Cash and equivalents at end of period	$	721		$	1,249		$	1,202

See accompanying notes to condensed financial statements.

MICRON TECHNOLOGY, INC.

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

NOTES TO CONDENSED FINANCIAL STATEMENTS

(All tabular amounts in millions)

Basis of Presentation

Micron, a Delaware corporation, was incorporated in 1978. Micron is the parent company of its consolidated subsidiaries and, together with its consolidated subsidiaries, is a global leader in advanced semiconductor systems.

These condensed financial statements have been prepared on a parent-only basis. Under this parent-only presentation, Micron's investments in its consolidated subsidiaries are presented under the equity method of accounting. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and footnotes required by Generally Accepted Accounting Principles (GAAP) in the United States for annual financial statements. Because these parent-only financial statements and notes do not include all of the information and footnotes required by GAAP in the U.S. for annual financial statements, these parent-only financial statements and other information included should be read in conjunction with Micron's audited Consolidated Financial Statements contained within Part II, Item 8 of this Form 10-K for the year ended September 3, 2015.

Effective in the fourth quarter of 2015, Micron adopted ASU 2015-03 – Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, as appropriate, consistent with debt discounts, as opposed to an asset. The new accounting standard required retrospective application; therefore, Micron's financial statements and notes to those statements contained herein have been adjusted to reflect the impact of adopting this new accounting standard.

Debt



					2015						2014
Instrument⁽¹⁾	Stated Rate		Effective Rate		Current		Long-Term		Total		Current		Long-Term		Total
Capital lease obligations⁽²⁾	N/A		N/A		$	174	$	40	$	214	$	172	$	233	$	405
2022 senior notes	5.875	%	6.14	%	—		589		589		—		587		587
2023 senior notes	5.250	%	5.43	%	—		988		988		—		—		—
2024 senior notes	5.250	%	5.38	%	—		545		545		—		—		—
2025 senior notes	5.500	%	5.56	%	—		1,138		1,138		—		1,137		1,137
2026 senior notes	5.625	%	5.73	%	—		446		446		—		—		—
2031B convertible senior notes⁽³⁾	1.875	%	6.98	%	—		—		—		361		—		361
2032C convertible senior notes⁽⁴⁾	2.375	%	5.95	%	—		197		197		—		309		309
2032D convertible senior notes⁽⁴⁾	3.125	%	6.33	%	—		150		150		—		284		284
2033E convertible senior notes⁽⁴⁾	1.625	%	4.50	%	217		—		217		272		—		272
2033F convertible senior notes⁽⁴⁾	2.125	%	4.93	%	264		—		264		260		—		260
2043G convertible senior notes	3.000	%	6.76	%	—		644		644		—		631		631
Other	1.654	%	1.65	%	—		60		60		—		10		10
					$	655	$	4,797	$	5,452	$	1,065	$	3,191	$	4,256


⁽¹⁾	Micron has either the obligation or the option to pay cash for the principal amount due upon conversion for all of its convertible notes. Micron's current intent is to settle in cash the principal amount of all of its convertible notes upon conversion.

⁽²⁾ Weighted-average imputed rate of 4.5% and 4.7% as of September 3, 2015 and August 28, 2014, respectively.


⁽³⁾	Amount recorded for 2014 included the debt and equity components. The equity component was reclassified to a debt liability as a result of Micron's obligation to settle the conversions of the 2031B Notes in cash.

⁽⁴⁾

Since the closing price of Micron's common stock for at least 20 trading days in the 30 trading day period ending on June 30, 2015 exceeded 130% of the initial conversion price per share, holders have the right to convert their notes at any time during the calendar quarter ended September 30, 2015. The closing price of Micron's common stock also exceeded the thresholds for the calendar quarter ended September 30, 2015; therefore, these notes are convertible by the holders through December 31, 2015. The 2033 Notes are classified as current because the terms of these notes require us to pay cash for the principal amount of any converted notes.

Micron's convertible and senior notes are unsecured obligations that rank equally in right of payment with all of Micron's other existing and future unsecured indebtedness, and are effectively subordinated to all of Micron's other existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness. The convertible notes and the 2022 Notes, 2023 Notes, 2024 Notes, 2025 Notes, and 2026 Notes of Micron are structurally subordinated to all liabilities of its subsidiaries, including trade payables. Micron guarantees certain debt obligations of its subsidiaries. Micron does not guarantee the MMJ creditor installment payments. As of September 3, 2015, Micron had guaranteed $655 million of debt obligations of its subsidiaries. Micron's guarantees of its subsidiary debt obligations are unsecured obligations ranking equally in right of payment with all of its other existing and future unsecured indebtedness.

Capital Lease Obligations

Micron has various capital lease obligations due in periodic installments with a weighted-average remaining term of 1 year. As of September 3, 2015 and August 28, 2014, Micron had production equipment with carrying values of $140 million and $305 million, respectively, under capital leases.

Convertible Senior Notes and Other Senior Notes

For further information, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Debt" of Micron's consolidated financial statements.

Other Facilities

Micron has a credit facility with an aggregate revolving commitment which is subject to certain adjustments, including an availability block that effectively limits the maximum amount Micron could draw to $540 million. As of September 3, 2015, $50 million of principal was outstanding under this facility and $270 million was available for Micron to draw. For further information, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Debt – Other Facilities – Revolving Credit Facilities" of Micron's consolidated financial statements.

Maturities of Notes Payable and Future Minimum Lease Payments

As of September 3, 2015, maturities of notes payable and future minimum lease payments under capital lease obligations were as follows:



	Notes Payable			Capital Lease Obligations
2016	$	—		$	179
2017	—			30
2018	233			3
2019	224			3
2020	347			3
2021 and thereafter	4,854			3
Unamortized discounts and interest, respectively	(420		)	(7		)
	$	5,238		$	214

Commitments

Micron has provided various financial guarantees issued in the normal course of business on behalf of its subsidiaries. These contracts include debt guarantees and guarantees on certain banking facilities. Micron enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. Micron has entered into agreements covering certain activities of its subsidiaries, and occasionally Micron may be required to perform under such agreements on behalf of its subsidiaries.

As of September 3, 2015, the maximum potential amount of future payments Micron could have been required to make under its debt guarantees was approximately $655 million. Substantially all of this amount relates to guarantees for debt of wholly-owned entities whereby Micron would be obligated to perform under the guarantee if a subsidiary were to default on the terms of their debt arrangements. In the event of performance under the guarantee, Micron would be permitted to seek reimbursement from the subsidiary company(s) through liquidation of the assets which were collateral under various debt instruments. At the time these contracts were entered into, the collateralized assets approximated the value of the outstanding guarantees. The majority of these guarantees expire at various times between March 2016 and February 2020. Micron guarantees a credit facility of a subsidiary that provides for up to $750 million of financing. As of September 3, 2015, $75 million of principal amount was outstanding under this facility.

Micron guarantees certain banking facilities for its wholly-owned consolidated entities. Substantially all of these guarantees relate to bank overdraft protections. The maximum potential amount of future payments Micron could be required to make under these guarantees varies based on the extent of potential overdrafts. Micron's business processes substantially mitigate the risk of wholly-owned subsidiaries overdrafting their bank accounts. The majority of these guarantees have no contractual expiration.

Contingencies

As is typical in the semiconductor and other high technology industries, from time to time others have asserted, and may in the future assert, that Micron and its subsidiaries' products or manufacturing processes infringe their intellectual property rights. Micron has accrued a liability and charged operations for the estimated costs of adjudication or settlement of various asserted and unasserted claims existing as of the balance sheet date. Micron is currently a party to various litigation regarding patent, commercial, and other matters. Micron is a party to the matters listed in the "Contingencies" note in the consolidated financial statements. For further information, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Contingencies" of Micron's consolidated financial statements.

Redeemable Convertible Notes

For further information, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Redeemable Convertible Notes" of Micron's consolidated financial statements.

Related Party Transactions

Substantially all of Micron's activities relate to manufacturing services performed for a subsidiary and to royalties received from its subsidiaries for use of product and process technology. Micron's net sales to consolidated subsidiaries were $5.42 billion, $5.64 billion, and $4.19 billion for 2015, 2014, and 2013, respectively. Gross margins on manufacturing activities are commensurate with market rates for such services. Transactions between Micron and its consolidated subsidiaries are eliminated in consolidation.

Micron engages in various transactions with its equity method investees and eliminates the profits or losses on those transactions to the extent of its ownership interest until such time as the profits or losses are realized. Micron held an equity interest in Aptina through August 15, 2014. Net sales for 2014 and 2013 included $43 million and $182 million, respectively, from products sold to and services performed for Aptina.

On August 15, 2014, ON Semiconductor Corporation acquired Aptina for approximately $433 million and Micron recognized a non-operating gain of $119 million on the sale of its shares based on its diluted ownership interest of approximately 27%. The gain approximated Micron's share of the consideration because the carrying value of its investment had been reduced to zero since the second quarter of 2012, at which time Micron ceased recognizing its proportionate share of Aptina's losses. For further information regarding transactions between Micron and its equity method investees, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Equity Method Investments – Other" of Micron's consolidated financial statements.