(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-1618004 |
(State or other jurisdiction of | (IRS Employer Identification No.) |
incorporation or organization) | |
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 |
Large Accelerated Filer x | Accelerated Filer o |
Non-Accelerated Filer o (Do not check if a smaller reporting company) | Smaller Reporting Company o |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Net sales | $ | 2,318 | $ | 2,172 | $ | 6,230 | $ | 6,271 | ||||||||
Cost of goods sold | 1,762 | 1,938 | 5,091 | 5,522 | ||||||||||||
Gross margin | 556 | 234 | 1,139 | 749 | ||||||||||||
Selling, general and administrative | 127 | 156 | 369 | 481 | ||||||||||||
Research and development | 226 | 231 | 664 | 683 | ||||||||||||
Restructure and asset impairments | 55 | 5 | 94 | 11 | ||||||||||||
Other operating (income) expense, net | (1 | ) | 30 | (17 | ) | 37 | ||||||||||
Operating income (loss) | 149 | (188 | ) | 29 | (463 | ) | ||||||||||
Interest income | 2 | 3 | 8 | 7 | ||||||||||||
Interest expense | (54 | ) | (56 | ) | (167 | ) | (126 | ) | ||||||||
Other non-operating income (expense), net | (45 | ) | (2 | ) | (263 | ) | 24 | |||||||||
52 | (243 | ) | (393 | ) | (558 | ) | ||||||||||
Income tax (provision) benefit | 1 | 38 | (3 | ) | 31 | |||||||||||
Equity in net loss of equity method investees | (10 | ) | (115 | ) | (120 | ) | (262 | ) | ||||||||
Net income (loss) | 43 | (320 | ) | (516 | ) | (789 | ) | |||||||||
Net income attributable to noncontrolling interests | — | — | (2 | ) | — | |||||||||||
Net income (loss) attributable to Micron | $ | 43 | $ | (320 | ) | $ | (518 | ) | $ | (789 | ) | |||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.04 | $ | (0.32 | ) | $ | (0.51 | ) | $ | (0.80 | ) | |||||
Diluted | 0.04 | (0.32 | ) | (0.51 | ) | (0.80 | ) | |||||||||
Number of shares used in per share calculations: | ||||||||||||||||
Basic | 1,024.0 | 987.3 | 1,017.9 | 983.9 | ||||||||||||
Diluted | 1,046.6 | 987.3 | 1,017.9 | 983.9 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Net income (loss) | $ | 43 | $ | (320 | ) | $ | (516 | ) | $ | (789 | ) | |||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustments | (7 | ) | 8 | 2 | (11 | ) | ||||||||||
Gain (loss) on derivatives, net | (1 | ) | (2 | ) | (9 | ) | (17 | ) | ||||||||
Gain (loss) on investments, net | (1 | ) | (1 | ) | (2 | ) | (31 | ) | ||||||||
Pension liability adjustments | — | 2 | (1 | ) | 2 | |||||||||||
Other comprehensive income (loss) | (9 | ) | 7 | (10 | ) | (57 | ) | |||||||||
Total comprehensive income (loss) | 34 | (313 | ) | (526 | ) | (846 | ) | |||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (1 | ) | 5 | (3 | ) | 5 | ||||||||||
Comprehensive income (loss) attributable to Micron | $ | 33 | $ | (308 | ) | $ | (529 | ) | $ | (841 | ) |
As of | May 30, 2013 | August 30, 2012 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 2,440 | $ | 2,459 | ||||
Short-term investments | 112 | 100 | ||||||
Receivables | 1,503 | 1,289 | ||||||
Inventories | 1,732 | 1,812 | ||||||
Other current assets | 99 | 98 | ||||||
Total current assets | 5,886 | 5,758 | ||||||
Long-term marketable investments | 347 | 374 | ||||||
Property, plant and equipment, net | 6,830 | 7,103 | ||||||
Equity method investments | 272 | 389 | ||||||
Intangible assets, net | 331 | 371 | ||||||
Other noncurrent assets | 389 | 333 | ||||||
Total assets | $ | 14,055 | $ | 14,328 | ||||
Liabilities and equity | ||||||||
Accounts payable and accrued expenses | $ | 1,590 | $ | 1,641 | ||||
Deferred income | 223 | 248 | ||||||
Equipment purchase contracts | 172 | 130 | ||||||
Current portion of long-term debt | 357 | 224 | ||||||
Total current liabilities | 2,342 | 2,243 | ||||||
Long-term debt | 3,267 | 3,038 | ||||||
Other noncurrent liabilities | 420 | 630 | ||||||
Total liabilities | 6,029 | 5,911 | ||||||
Commitments and contingencies | ||||||||
Micron shareholders' equity: | ||||||||
Common stock, $0.10 par value, 3,000 shares authorized, 1,034.7 shares issued and outstanding (1,017.7 as of August 30, 2012) | 103 | 102 | ||||||
Additional capital | 9,076 | 8,920 | ||||||
Accumulated deficit | (1,920 | ) | (1,402 | ) | ||||
Accumulated other comprehensive income | 69 | 80 | ||||||
Total Micron shareholders' equity | 7,328 | 7,700 | ||||||
Noncontrolling interests in subsidiaries | 698 | 717 | ||||||
Total equity | 8,026 | 8,417 | ||||||
Total liabilities and equity | $ | 14,055 | $ | 14,328 |
Nine Months Ended | May 30, 2013 | May 31, 2012 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (516 | ) | $ | (789 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation expense and amortization of intangible assets | 1,354 | 1,658 | ||||||
Amortization of debt discount and other costs | 86 | 55 | ||||||
Losses from currency hedges, net | 224 | 29 | ||||||
Equity in net loss of equity method investees | 120 | 262 | ||||||
Noncash restructure and asset impairments | 93 | 7 | ||||||
Stock-based compensation | 61 | 71 | ||||||
Loss on extinguishment of debt | 31 | — | ||||||
Change in operating assets and liabilities: | ||||||||
Receivables | (280 | ) | 134 | |||||
Inventories | 38 | 182 | ||||||
Accounts payable and accrued expenses | 42 | (101 | ) | |||||
Customer prepayments | (95 | ) | 296 | |||||
Deferred income | (22 | ) | (61 | ) | ||||
Other | (42 | ) | (79 | ) | ||||
Net cash provided by operating activities | 1,094 | 1,664 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant and equipment | (964 | ) | (1,367 | ) | ||||
Purchases of available-for-sale securities | (574 | ) | (499 | ) | ||||
Payments to settle hedging activities | (216 | ) | (48 | ) | ||||
Additions to equity method investments | — | (180 | ) | |||||
Proceeds from sales and maturities of available-for-sale securities | 592 | 63 | ||||||
Proceeds from sales of property, plant and equipment | 23 | 51 | ||||||
Proceeds from settlement of hedging activities | 23 | 31 | ||||||
Other | (54 | ) | (31 | ) | ||||
Net cash used for investing activities | (1,170 | ) | (1,980 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of debt | 812 | 1,065 | ||||||
Proceeds from equipment sale-leaseback transactions | 106 | 403 | ||||||
Cash received for capped call transactions | 24 | — | ||||||
Cash received from noncontrolling interests | 11 | 151 | ||||||
Repayments of debt | (664 | ) | (152 | ) | ||||
Payments on equipment purchase contracts | (162 | ) | (132 | ) | ||||
Cash paid for capped call transactions | (48 | ) | (102 | ) | ||||
Distributions to noncontrolling interests | (33 | ) | (387 | ) | ||||
Acquisition of noncontrolling interests | — | (466 | ) | |||||
Other | 11 | (33 | ) | |||||
Net cash provided by financing activities | 57 | 347 | ||||||
Net increase (decrease) in cash and equivalents | (19 | ) | 31 | |||||
Cash and equivalents at beginning of period | 2,459 | 2,160 | ||||||
Cash and equivalents at end of period | $ | 2,440 | $ | 2,191 | ||||
Noncash investing and financing activities | ||||||||
Equipment acquisitions on contracts payable and capital leases | $ | 387 | $ | 643 |
As of | May 30, 2013 | August 30, 2012 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Money market funds | $ | 2,018 | $ | — | $ | — | $ | 2,018 | $ | 2,159 | $ | — | $ | — | $ | 2,159 | ||||||||||||||||
Corporate bonds | 255 | 1 | — | 256 | 233 | 1 | — | 234 | ||||||||||||||||||||||||
Government securities | 96 | — | — | 96 | 144 | — | — | 144 | ||||||||||||||||||||||||
Commercial paper | 79 | — | — | 79 | 39 | — | — | 39 | ||||||||||||||||||||||||
Asset-backed securities | 72 | — | — | 72 | 77 | — | — | 77 | ||||||||||||||||||||||||
Certificates of deposit | 33 | — | — | 33 | 31 | — | — | 31 | ||||||||||||||||||||||||
Marketable equity securities | 10 | — | (1 | ) | 9 | 10 | — | — | 10 | |||||||||||||||||||||||
$ | 2,563 | $ | 1 | $ | (1 | ) | $ | 2,563 | $ | 2,693 | $ | 1 | $ | — | $ | 2,694 |
Amortized Cost | Fair Value | |||||||
Money market funds not due at a single maturity date | $ | 2,018 | $ | 2,018 | ||||
Due in 1 year or less | 198 | 198 | ||||||
Due in 1 - 2 years | 140 | 141 | ||||||
Due in 2 - 4 years | 181 | 181 | ||||||
Due after 4 years | 16 | 16 | ||||||
$ | 2,553 | $ | 2,554 |
As of | May 30, 2013 | August 30, 2012 | ||||||
Trade receivables (net of allowance for doubtful accounts of $5 and $5, respectively) | $ | 1,250 | $ | 933 | ||||
Related party receivables | 56 | 63 | ||||||
Income and other taxes | 51 | 80 | ||||||
Other | 146 | 213 | ||||||
$ | 1,503 | $ | 1,289 |
As of | May 30, 2013 | August 30, 2012 | ||||||
Finished goods | $ | 453 | $ | 512 | ||||
Work in process | 1,169 | 1,148 | ||||||
Raw materials and supplies | 110 | 152 | ||||||
$ | 1,732 | $ | 1,812 |
As of | May 30, 2013 | August 30, 2012 | ||||||
Land | $ | 90 | $ | 92 | ||||
Buildings | 4,605 | 4,714 | ||||||
Equipment | 15,050 | 15,653 | ||||||
Construction in progress | 61 | 43 | ||||||
Software | 305 | 323 | ||||||
20,111 | 20,825 | |||||||
Accumulated depreciation | (13,281 | ) | (13,722 | ) | ||||
$ | 6,830 | $ | 7,103 |
As of | May 30, 2013 | August 30, 2012 | ||||||||||||
Investment Balance | Ownership Percentage | Investment Balance | Ownership Percentage | |||||||||||
Inotera | $ | 259 | 35.5 | % | $ | 370 | 39.7 | % | ||||||
Other | 13 | Various | 19 | Various | ||||||||||
$ | 272 | $ | 389 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Inotera | $ | (13 | ) | $ | (38 | ) | $ | (121 | ) | $ | (157 | ) | ||||
Other | 3 | (77 | ) | 1 | (105 | ) | ||||||||||
$ | (10 | ) | $ | (115 | ) | $ | (120 | ) | $ | (262 | ) |
As of | May 30, 2013 | August 30, 2012 | ||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Product and process technology | $ | 580 | $ | (266 | ) | $ | 575 | $ | (234 | ) | ||||||
Customer relationships | 127 | (110 | ) | 127 | (98 | ) | ||||||||||
Other | 1 | (1 | ) | 1 | — | |||||||||||
$ | 708 | $ | (377 | ) | $ | 703 | $ | (332 | ) |
As of | May 30, 2013 | August 30, 2012 | ||||||
Accounts payable | $ | 736 | $ | 818 | ||||
Related party payables | 228 | 130 | ||||||
Salaries, wages and benefits | 216 | 290 | ||||||
Customer advances | 166 | 141 | ||||||
Income and other taxes | 31 | 25 | ||||||
Other | 213 | 237 | ||||||
$ | 1,590 | $ | 1,641 |
As of | May 30, 2013 | August 30, 2012 | ||||||
Capital lease obligations, due in periodic installments, weighted-average remaining term of 3.6 years and weighted-average rate 4.5% as of May 30, 2013 | $ | 912 | $ | 883 | ||||
2032C convertible senior notes, due May 2032, holder can put back May 2019(1), stated rate 2.375%, effective rate 6.0%, net of discount of $90 and $99, respectively(2) | 460 | 451 | ||||||
2014 convertible senior notes, due June 2014, stated rate 1.875%, effective rate 7.9%, net of discount of $27 and $89, respectively(2) | 458 | 860 | ||||||
2032D convertible senior notes, due May 2032, holder can put back May 2021(1), stated rate 3.125%, effective rate 6.3%, net of discount of $83 and $89, respectively(2) | 367 | 361 | ||||||
2031A convertible senior notes, due August 2031, holder can put back August 2018(1), stated rate 1.5%, effective rate 6.5%, net of discount of $71 and $80, respectively | 274 | 265 | ||||||
2033E convertible senior notes, due February 2033, holder can put back February 2018(1), stated rate 1.625%, effective rate 4.5%, net of discount of $30 | 270 | — | ||||||
2033F convertible senior notes, due February 2033, holder can put back February 2020(1), stated rate 2.125%, effective rate 4.9%, net of discount of $41 | 259 | — | ||||||
2031B convertible senior notes, due August 2031, holder can put back August 2020(1), stated rate 1.875%, effective rate 7.0%, net of discount of $94 and $102, respectively | 251 | 243 | ||||||
Term note payable, due in periodic installments through January 2018, stated rate 2.4% | 195 | — | ||||||
2027 convertible senior notes, due June 2027, holder can put back June 2017(1), stated rate 1.875%, effective rate 6.9%, net of discount of $30 and $34, respectively | 145 | 141 | ||||||
Intel senior note, due in periodic installments through April 2014, variable rate | 33 | 58 | ||||||
3,624 | 3,262 | |||||||
Less current portion | (357 | ) | (224 | ) | ||||
$ | 3,267 | $ | 3,038 |
Nine Months Ended May 30, 2013 | Nine Months Ended May 31, 2012 | |||||||||||||||||||||||
Attributable to Micron | Noncontrolling Interests | Total Equity | Attributable to Micron | Noncontrolling Interests | Total Equity | |||||||||||||||||||
Beginning balance | $ | 7,700 | $ | 717 | $ | 8,417 | $ | 8,470 | $ | 1,382 | $ | 9,852 | ||||||||||||
Net income (loss) | (518 | ) | 2 | (516 | ) | (789 | ) | — | (789 | ) | ||||||||||||||
Other comprehensive income (loss) | (11 | ) | 1 | (10 | ) | (52 | ) | (5 | ) | (57 | ) | |||||||||||||
Comprehensive income (loss) | (529 | ) | 3 | (526 | ) | (841 | ) | (5 | ) | (846 | ) | |||||||||||||
Acquisition of noncontrolling interests | — | — | — | — | (466 | ) | (466 | ) | ||||||||||||||||
Contribution from noncontrolling interests | — | 11 | 11 | — | 151 | 151 | ||||||||||||||||||
Distributions to noncontrolling interests | — | (33 | ) | (33 | ) | — | (387 | ) | (387 | ) | ||||||||||||||
Capital and other transactions attributable to Micron | 157 | — | 157 | 182 | — | 182 | ||||||||||||||||||
Ending balance | $ | 7,328 | $ | 698 | $ | 8,026 | $ | 7,811 | $ | 675 | $ | 8,486 |
As of August 30, 2012 | Other Comprehensive Income | As of May 30, 2013 | ||||||||||
Cumulative foreign currency translation adjustments | $ | 49 | $ | 2 | $ | 51 | ||||||
Gain (loss) on derivatives, net | 31 | (10 | ) | 21 | ||||||||
Gain (loss) on investments, net | 1 | (2 | ) | (1 | ) | |||||||
Pension liability adjustments | (1 | ) | (1 | ) | (2 | ) | ||||||
Accumulated other comprehensive income | $ | 80 | $ | (11 | ) | $ | 69 |
As of May 30, 2013 | Notional Amount (in U.S. Dollars) | Fair Value of | ||||||||||
Asset | (Liability) | |||||||||||
Forward contracts: | ||||||||||||
Yen | $ | 916 | $ | — | $ | (86 | ) | |||||
Singapore dollar | 242 | 1 | (3 | ) | ||||||||
Euro | 206 | 1 | (3 | ) | ||||||||
Shekel | 76 | — | (1 | ) | ||||||||
Currency options: | ||||||||||||
Yen | 849 | 61 | — | |||||||||
New Taiwan dollar | 351 | — | — | |||||||||
$ | 2,640 | $ | 63 | $ | (93 | ) | ||||||
As of August 30, 2012 | ||||||||||||
Forward contracts: | ||||||||||||
Yen | $ | 18 | $ | — | $ | — | ||||||
Singapore dollar | 251 | — | (1 | ) | ||||||||
Euro | 173 | 2 | (1 | ) | ||||||||
Shekel | 65 | — | (1 | ) | ||||||||
Currency options: | ||||||||||||
Yen | 5,050 | (1) | 57 | — | ||||||||
New Taiwan dollar | 342 | 2 | — | |||||||||
$ | 5,899 | $ | 61 | $ | (3 | ) |
(1) | Notional amount includes purchased options of $2,527 million and sold options of $2,523 million. |
Notional Amount (in U.S. Dollars) | Fair Value of | |||||||||||
As of May 30, 2013 | Asset | (Liability) | ||||||||||
Forward contracts: | ||||||||||||
Yen | $ | 20 | $ | — | $ | (2 | ) | |||||
Euro | 13 | — | — | |||||||||
Currency options: | ||||||||||||
Yen | 35 | — | (3 | ) | ||||||||
$ | 68 | $ | — | $ | (5 | ) | ||||||
As of August 30, 2012 | ||||||||||||
Forward contracts: | ||||||||||||
Yen | $ | 108 | $ | 2 | $ | — | ||||||
Euro | 35 | — | — | |||||||||
Currency options: | ||||||||||||
Yen | 32 | — | — | |||||||||
$ | 175 | $ | 2 | $ | — |
As of May 30, 2013 | Assets(1) | Liability(2) | ||||||
Gross amount | $ | 63 | $ | (98 | ) | |||
Gross amounts offset in the statement of financial position | (62 | ) | 62 | |||||
Net amounts presented in the statement of financial position | $ | 1 | $ | (36 | ) |
As of | May 30, 2013 | August 30, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 2,018 | $ | — | $ | — | $ | 2,018 | $ | 2,159 | $ | — | $ | — | $ | 2,159 | ||||||||||||||||
Commercial paper | — | 54 | — | 54 | — | 29 | — | 29 | ||||||||||||||||||||||||
Certificates of deposit | — | 32 | — | 32 | — | 27 | — | 27 | ||||||||||||||||||||||||
Government securities | — | — | — | — | — | 5 | — | 5 | ||||||||||||||||||||||||
2,018 | 86 | — | 2,104 | 2,159 | 61 | — | 2,220 | |||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Corporate bonds | — | 45 | — | 45 | — | 31 | — | 31 | ||||||||||||||||||||||||
Government securities | — | 41 | — | 41 | — | 51 | — | 51 | ||||||||||||||||||||||||
Commercial paper | — | 25 | — | 25 | — | 10 | — | 10 | ||||||||||||||||||||||||
Certificates of deposit | — | 1 | — | 1 | — | 4 | — | 4 | ||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||
— | 112 | — | 112 | — | 100 | — | 100 | |||||||||||||||||||||||||
Long-term marketable investments: | ||||||||||||||||||||||||||||||||
Corporate bonds | — | 211 | — | 211 | — | 203 | — | 203 | ||||||||||||||||||||||||
Asset-backed securities | — | 72 | — | 72 | — | 73 | — | 73 | ||||||||||||||||||||||||
Government securities | — | 55 | — | 55 | — | 88 | — | 88 | ||||||||||||||||||||||||
Marketable equity securities | 7 | 2 | — | 9 | 5 | 5 | — | 10 | ||||||||||||||||||||||||
7 | 340 | — | 347 | 5 | 369 | — | 374 | |||||||||||||||||||||||||
$ | 2,025 | $ | 538 | $ | — | $ | 2,563 | $ | 2,164 | $ | 530 | $ | — | $ | 2,694 |
As of | May 30, 2013 | August 30, 2012 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||
Convertible notes | $ | 3,825 | $ | 2,484 | $ | 2,669 | $ | 2,321 | ||||||||
Other notes | 220 | 228 | 56 | 58 |
Quarter Ended | Nine Months Ended | |||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||
Average expected life in years | 4.8 | 5.0 | 5.1 | 5.1 | ||||||||
Weighted-average expected volatility | 55 | % | 61 | % | 60 | % | 66 | % | ||||
Weighted-average risk-free interest rate | 0.7 | % | 0.9 | % | 0.7 | % | 1.0 | % |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Service-based awards | — | 0.1 | 5.4 | 3.9 | ||||||||||||
Performance-based awards | — | — | 1.2 | 1.9 | ||||||||||||
Weighted-average grant-date fair values per share | $ | 9.97 | $ | 6.82 | $ | 6.21 | $ | 5.43 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Stock-based compensation expense by caption: | ||||||||||||||||
Cost of goods sold | $ | 7 | $ | 5 | $ | 20 | $ | 17 | ||||||||
Selling, general and administrative | 10 | 12 | 28 | 41 | ||||||||||||
Research and development | 4 | 4 | 13 | 13 | ||||||||||||
$ | 21 | $ | 21 | $ | 61 | $ | 71 | |||||||||
Stock-based compensation expense by type of award: | ||||||||||||||||
Stock options | $ | 14 | $ | 13 | $ | 41 | $ | 44 | ||||||||
Restricted stock awards | 7 | 8 | 20 | 27 | ||||||||||||
$ | 21 | $ | 21 | $ | 61 | $ | 71 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Loss on restructure of ST consortium agreement | $ | 26 | $ | — | $ | 26 | $ | — | ||||||||
Loss on impairment of LED assets | 25 | — | 29 | — | ||||||||||||
Loss on impairment of MIT assets | — | — | 62 | — | ||||||||||||
Gain on termination of lease to Transform | — | — | (25 | ) | — | |||||||||||
Other | 4 | 5 | 2 | 11 | ||||||||||||
$ | 55 | $ | 5 | $ | 94 | $ | 11 |
Other current assets | $ | 75 | ||
Other noncurrent assets | 37 | |||
Accounts payable and accrued expenses | (43 | ) | ||
Other noncurrent liabilities | (34 | ) | ||
$ | 35 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
(Gain) loss on disposition of property, plant and equipment | $ | 5 | $ | 4 | $ | (10 | ) | $ | 10 | |||||||
Other | (6 | ) | 26 | (7 | ) | 27 | ||||||||||
$ | (1 | ) | $ | 30 | $ | (17 | ) | $ | 37 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Gain (loss) from changes in currency exchange rates | $ | (45 | ) | $ | (1 | ) | $ | (231 | ) | $ | (14 | ) | ||||
Loss on extinguishment of debt | — | — | (31 | ) | — | |||||||||||
Gain (loss) from disposition of investments | (1 | ) | — | (1 | ) | 39 | ||||||||||
Other | 1 | (1 | ) | — | (1 | ) | ||||||||||
$ | (45 | ) | $ | (2 | ) | $ | (263 | ) | $ | 24 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Net income (loss) available to Micron shareholders - basic and diluted | $ | 43 | $ | (320 | ) | $ | (518 | ) | $ | (789 | ) | |||||
Weighted-average common shares outstanding - basic | 1,024.0 | 987.3 | 1,017.9 | 983.9 | ||||||||||||
Net effect of dilutive equity awards and convertible notes | 22.6 | — | — | — | ||||||||||||
Weighted-average common shares outstanding - diluted | 1,046.6 | 987.3 | 1,017.9 | 983.9 | ||||||||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.04 | $ | (0.32 | ) | $ | (0.51 | ) | $ | (0.80 | ) | |||||
Diluted | 0.04 | (0.32 | ) | (0.51 | ) | (0.80 | ) |
As of | May 30, 2013 | August 30, 2012 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 62 | $ | 157 | ||||
Receivables | 58 | 78 | ||||||
Inventories | 61 | 67 | ||||||
Other current assets | 3 | 5 | ||||||
Total current assets | 184 | 307 | ||||||
Property, plant and equipment, net | 1,401 | 1,342 | ||||||
Other noncurrent assets | 45 | 36 | ||||||
Total assets | $ | 1,630 | $ | 1,685 | ||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 82 | $ | 104 | ||||
Deferred income | 9 | 10 | ||||||
Equipment purchase contracts | 76 | 58 | ||||||
Current portion of long-term debt | 6 | 6 | ||||||
Total current liabilities | 173 | 178 | ||||||
Long-term debt | 14 | 18 | ||||||
Other noncurrent liabilities | 120 | 129 | ||||||
Total liabilities | $ | 307 | $ | 325 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
IM Flash distributions to Micron | $ | 34 | $ | 249 | $ | 34 | $ | 402 | ||||||||
IM Flash distributions to Intel | 33 | 240 | 33 | 387 | ||||||||||||
Micron contributions to IM Flash | 2 | — | 12 | 103 | ||||||||||||
Intel contributions to IM Flash | 1 | — | 11 | 131 |
As of | May 30, 2013 | August 30, 2012 | ||||||
Current assets | $ | 29 | $ | 19 | ||||
Noncurrent assets (primarily property, plant and equipment) | 188 | 170 | ||||||
Current liabilities | 33 | 12 |
Quarter Ended | Nine Months Ended | |||||||||||||||
May 30, 2013 | May 31, 2012 | May 30, 2013 | May 31, 2012 | |||||||||||||
Net sales: | ||||||||||||||||
DSG | $ | 924 | $ | 750 | $ | 2,280 | $ | 2,014 | ||||||||
NSG | 730 | 760 | 2,060 | 2,177 | ||||||||||||
ESG | 305 | 265 | 865 | 769 | ||||||||||||
WSG | 276 | 276 | 752 | 956 | ||||||||||||
All Other | 83 | 121 | 273 | 355 | ||||||||||||
$ | 2,318 | $ | 2,172 | $ | 6,230 | $ | 6,271 | |||||||||
Operating income (loss): | ||||||||||||||||
DSG | $ | 118 | $ | (75 | ) | $ | (40 | ) | $ | (377 | ) | |||||
NSG | 58 | (2 | ) | 135 | 196 | |||||||||||
ESG | 65 | 33 | 208 | 87 | ||||||||||||
WSG | (62 | ) | (103 | ) | (213 | ) | (288 | ) | ||||||||
All Other | (30 | ) | (41 | ) | (61 | ) | (81 | ) | ||||||||
$ | 149 | $ | (188 | ) | $ | 29 | $ | (463 | ) |
• | Overview: An overview of our business and operations and highlights of key transactions and events. |
• | Results of Operations: An analysis of our financial results consisting of the following: |
◦ | Consolidated results; |
◦ | Operating results by business segment; |
◦ | Operating results by product; and |
◦ | Operating expenses and other. |
• | Liquidity and Capital Resources: An analysis of changes in our balance sheet and cash flows and discussion of our |
• | Off-Balance Sheet Arrangements: Contingent liabilities, commitments and off-balance sheet arrangements. |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||||||||||||||||
2013 | % of Net Sales | 2012 | % of Net Sales | 2013 | % of Net Sales | 2013 | % of Net Sales | 2012 | % of Net Sales | |||||||||||||||||||||||||
(dollar amounts in millions) | ||||||||||||||||||||||||||||||||||
Net sales | $ | 2,318 | 100 | % | $ | 2,172 | 100 | % | $ | 2,078 | 100 | % | $ | 6,230 | 100 | % | $ | 6,271 | 100 | % | ||||||||||||||
Cost of goods sold | 1,762 | 76 | % | 1,938 | 89 | % | 1,712 | 82 | % | 5,091 | 82 | % | 5,522 | 88 | % | |||||||||||||||||||
Gross margin | 556 | 24 | % | 234 | 11 | % | 366 | 18 | % | 1,139 | 18 | % | 749 | 12 | % | |||||||||||||||||||
SG&A | 127 | 5 | % | 156 | 7 | % | 123 | 6 | % | 369 | 6 | % | 481 | 8 | % | |||||||||||||||||||
R&D | 226 | 10 | % | 231 | 11 | % | 214 | 10 | % | 664 | 11 | % | 683 | 11 | % | |||||||||||||||||||
Restructure and asset impairments | 55 | 2 | % | 5 | — | % | 60 | 3 | % | 94 | 2 | % | 11 | — | % | |||||||||||||||||||
Other operating (income) expense, net | (1 | ) | — | % | 30 | 1 | % | (8 | ) | — | % | (17 | ) | — | % | 37 | 1 | % | ||||||||||||||||
Operating income (loss) | 149 | 6 | % | (188 | ) | (9 | )% | (23 | ) | (1 | )% | 29 | — | % | (463 | ) | (7 | )% | ||||||||||||||||
Interest income (expense), net | (52 | ) | (2 | )% | (53 | ) | (2 | )% | (53 | ) | (3 | )% | (159 | ) | (3 | )% | (119 | ) | (2 | )% | ||||||||||||||
Other non-operating income (expense), net | (45 | ) | (2 | )% | (2 | ) | — | % | (159 | ) | (8 | )% | (263 | ) | (4 | )% | 24 | — | % | |||||||||||||||
Income tax (provision) benefit | 1 | — | % | 38 | 2 | % | 9 | — | % | (3 | ) | — | % | 31 | — | % | ||||||||||||||||||
Equity in net loss of equity method investees | (10 | ) | — | % | (115 | ) | (5 | )% | (58 | ) | (3 | )% | (120 | ) | (2 | )% | (262 | ) | (4 | )% | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | % | — | — | % | (2 | ) | — | % | (2 | ) | — | % | — | — | % | |||||||||||||||||
Net income (loss) attributable to Micron | $ | 43 | 2 | % | $ | (320 | ) | (15 | )% | $ | (286 | ) | (14 | )% | $ | (518 | ) | (8 | )% | $ | (789 | ) | (13 | )% |
• | losses of $47 million and $120 million for the third and second quarters of 2013, respectively, on currency hedges for the Elpida and Rexchip transaction; and |
• | a $31 million charge for the second quarter of 2013 associated with the early repurchase of debt. |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||||||||||||||||
2013 | % of Net Sales | 2012 | % of Net Sales | 2013 | % of Net Sales | 2013 | % of Net Sales | 2012 | % of Net Sales | |||||||||||||||||||||||||
DSG | $ | 924 | 40 | % | $ | 750 | 35 | % | $ | 756 | 36 | % | $ | 2,280 | 37 | % | $ | 2,014 | 32 | % | ||||||||||||||
NSG | 730 | 31 | % | 760 | 35 | % | 713 | 34 | % | 2,060 | 33 | % | 2,177 | 35 | % | |||||||||||||||||||
ESG | 305 | 13 | % | 265 | 12 | % | 282 | 14 | % | 865 | 14 | % | 769 | 12 | % | |||||||||||||||||||
WSG | 276 | 12 | % | 276 | 13 | % | 213 | 10 | % | 752 | 12 | % | 956 | 15 | % | |||||||||||||||||||
All Other | 83 | 4 | % | 121 | 5 | % | 114 | 6 | % | 273 | 4 | % | 355 | 6 | % | |||||||||||||||||||
$ | 2,318 | 100 | % | $ | 2,172 | 100 | % | $ | 2,078 | 100 | % | $ | 6,230 | 100 | % | $ | 6,271 | 100 | % |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 924 | $ | 750 | $ | 756 | $ | 2,280 | $ | 2,014 | ||||||||||
Operating income (loss) | 118 | (75 | ) | (46 | ) | (40 | ) | (377 | ) |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 730 | $ | 760 | $ | 713 | $ | 2,060 | $ | 2,177 | ||||||||||
Operating income (loss) | 58 | (2 | ) | 64 | 135 | 196 |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 305 | $ | 265 | $ | 282 | $ | 865 | $ | 769 | ||||||||||
Operating income | 65 | 33 | 65 | 208 | 87 |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 276 | $ | 276 | $ | 213 | $ | 752 | $ | 956 | ||||||||||
Operating loss | (62 | ) | (103 | ) | (87 | ) | (213 | ) | (288 | ) |
Third Quarter | Second Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2013 | % of Net Sales | 2012 | % of Net Sales | 2013 | % of Net Sales | 2013 | % of Net Sales | 2012 | % of Net Sales | ||||||||||||||||||||||||||
DRAM | $ | 1,098 | 47 | % | $ | 875 | 40 | % | $ | 891 | 43 | % | $ | 2,709 | 43 | % | $ | 2,382 | 38 | % | |||||||||||||||
NAND Flash | 936 | 40 | % | 948 | 44 | % | 870 | 42 | % | 2,609 | 42 | % | 2,791 | 45 | % | ||||||||||||||||||||
NOR Flash | 194 | 8 | % | 228 | 10 | % | 197 | 9 | % | 619 | 10 | % | 743 | 12 | % | ||||||||||||||||||||
Other | 90 | 5 | % | 121 | 6 | % | 120 | 6 | % | 293 | 5 | % | 355 | 5 | % | ||||||||||||||||||||
$ | 2,318 | 100 | % | $ | 2,172 | 100 | % | $ | 2,078 | 100 | % | $ | 6,230 | 100 | % | $ | 6,271 | 100 | % |
Third Quarter 2013 Versus | First Nine Months 2013 Versus | ||||||||
Second Quarter | Third Quarter | First Nine Months | |||||||
2013 | 2012 | 2012 | |||||||
(percentage change from period indicated) | |||||||||
Net sales | 23 | % | 25 | % | 14 | % | |||
Average selling prices per gigabit | 16 | % | (7 | )% | (16 | )% | |||
Gigabits sold | 6 | % | 36 | % | 35 | % | |||
Cost per gigabit | (5 | )% | (27 | )% | (26 | )% |
Third Quarter 2013 Versus | First Nine Months 2013 Versus | ||||||||
Second Quarter | Third Quarter | First Nine Months | |||||||
2013 | 2012 | 2012 | |||||||
(percentage change from period indicated) | |||||||||
Sales to trade customers: | |||||||||
Net sales | 8 | % | 18 | % | 13 | % | |||
Average selling prices per gigabit | 8 | % | 10 | % | (26 | )% | |||
Gigabits sold | — | % | 7 | % | 53 | % | |||
Cost per gigabit | 1 | % | (7 | )% | (27 | )% |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Loss on restructure of ST consortium agreement | $ | 26 | $ | — | $ | — | $ | 26 | $ | — | ||||||||||
Loss on impairment of LED assets | 25 | — | 1 | 29 | — | |||||||||||||||
Loss on impairment of MIT assets | — | — | 62 | 62 | — | |||||||||||||||
Gain on termination of lease to Transform | — | — | — | (25 | ) | — | ||||||||||||||
Other | 4 | 5 | (3 | ) | 2 | 11 | ||||||||||||||
$ | 55 | $ | 5 | $ | 60 | $ | 94 | $ | 11 |
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
Inotera | $ | (13 | ) | $ | (38 | ) | $ | (55 | ) | $ | (121 | ) | $ | (157 | ) | |||||
Other | 3 | (77 | ) | (3 | ) | 1 | (105 | ) | ||||||||||||
$ | (10 | ) | $ | (115 | ) | $ | (58 | ) | $ | (120 | ) | $ | (262 | ) |
• | Equity Plans |
• | Other Operating (Income) Expense, Net |
• | Other Non-operating Income (Expense), Net |
• | Income Taxes |
As of | May 30, 2013 | August 30, 2012 | ||||||
Cash and equivalents and short-term investments: | ||||||||
Money market funds | $ | 2,018 | $ | 2,159 | ||||
Bank deposits | 336 | 239 | ||||||
Commercial paper | 79 | 39 | ||||||
Corporate bonds | 45 | 31 | ||||||
Government securities | 41 | 56 | ||||||
Certificates of deposit | 33 | 31 | ||||||
Asset-backed securities | — | 4 | ||||||
$ | 2,552 | $ | 2,559 | |||||
Long-term marketable investments | $ | 347 | $ | 374 |
Payments Due by Period | ||||||||||||||||||||||||||||
As of May 30, 2013 | Total | Remainder of 2013 | 2014 | 2015 | 2016 | 2017 | 2018 and Thereafter | |||||||||||||||||||||
(amounts in millions) | ||||||||||||||||||||||||||||
Notes payable (1) | $ | 3,557 | $ | 30 | $ | 619 | $ | 100 | $ | 98 | $ | 273 | $ | 2,437 | ||||||||||||||
Capital lease obligations (1) | 1,004 | 67 | 316 | 250 | 255 | 45 | 71 | |||||||||||||||||||||
Operating leases(2) | 71 | 6 | 15 | 9 | 8 | 7 | 26 | |||||||||||||||||||||
(1) Amounts represent principal and interest cash payments over the life of debt obligations, including anticipated interest payments that are not recorded on our consolidated balance sheet. Any future redemption or conversion of convertible debt could impact the amount or timing of our cash payments. | ||||||||||||||||||||||||||||
(2) Amounts do not include contingent payments. |
DRAM | Trade NAND Flash* | ||||||
(percentage change in average selling prices) | |||||||
2012 from 2011 | (45 | )% | (55 | )% | |||
2011 from 2010 | (39 | )% | (12 | )% | |||
2010 from 2009 | 28 | % | 26 | % | |||
2009 from 2008 | (52 | )% | (52 | )% | |||
2008 from 2007 | (51 | )% | (68 | )% | |||
* Trade NAND Flash excludes sales to Intel from IM Flash. |
• | we may incur losses in connection with our financial support, including outstanding guarantees and financing, of the Elpida Companies' working capital financing and eligible capital expenditures, which losses may arise even if the transactions do not close; |
• | we may be unable to maintain customers, successfully execute our integration strategies, or achieve planned synergies; |
• | we may be unable to accurately forecast the anticipated financial results of the combined business; |
• | our consolidated financial condition may be adversely impacted by the increased leverage resulting from the transactions; |
• | increased exposure to the DRAM market, which experienced significant declines in pricing during the first quarter of 2013 as well as 2012 and 2011; |
• | deterioration of Elpida's and Rexchip's operations and customer base during the period between signing and closing; |
• | increased exposure to operating costs denominated in yen and New Taiwan dollar; |
• | integration issues with Elpida's and Rexchip's primary manufacturing operations in Japan and Taiwan; |
• | integration issues of our product and process technology with Elpida and Rexchip; |
• | integration of business systems and processes; and |
• | an overlap in customers. |
• | integrating the operations, technologies and products of acquired or newly formed entities into our operations; |
• | increasing capital expenditures to upgrade and maintain facilities; |
• | increased debt levels; |
• | the assumption of unknown or underestimated liabilities; |
• | the use of cash to finance a transaction, which may reduce the availability of cash to fund working capital, capital expenditures, research and development expenditures and other business activities; |
• | diverting management's attention from normal daily operations; |
• | managing larger or more complex operations and facilities and employees in separate and diverse geographic areas; |
• | hiring and retaining key employees; |
• | requirements imposed by governmental authorities in connection with the regulatory review of a transaction, which may include, among other things, divestitures or restrictions on the conduct of our business or the acquired business; |
• | inability to realize synergies or other expected benefits; |
• | failure to maintain customer, vendor and other relationships; |
• | inadequacy or ineffectiveness of an acquired company's internal financial controls, disclosure controls and procedures, and/or environmental, health and safety, anti-corruption, human resource, or other policies or practices; and |
• | impairment of acquired intangible assets and goodwill as a result of changing business conditions, technological advancements or worse-than-expected performance of the acquired business. |
• | require us to use a large portion of our cash flow to pay principal and interest on debt, which will reduce the amount of cash flow available to fund working capital, capital expenditures, acquisitions, research and development expenditures and other business activities; |
• | limit our future ability to raise funds for capital expenditures, strategic acquisitions or business opportunities, research and development and other general corporate requirements; |
• | contribute to a future downgrade of our credit rating, which could increase future borrowing costs; and |
• | increase our vulnerability to adverse economic and semiconductor memory industry conditions. |
• | higher costs for supply obtained under the market-based provisions of the Inotera Supply Agreement; |
• | difficulties and delays in ramping production at Inotera and delays in the future; and |
• | difficulties in transferring technology to Inotera. |
• | that we will be successful in developing competitive new semiconductor memory technologies; |
• | that we will be able to cost-effectively manufacture new products; |
• | that we will be able to successfully market these technologies; and |
• | that margins generated from sales of these products will allow us to recover costs of development efforts. |
• | our interests could diverge from our partners or we may not be able to agree with partners on ongoing manufacturing and operational activities, or on the amount, timing or nature of further investments in our joint venture; |
• | we may experience difficulties in transferring technology to joint ventures; |
• | we may experience difficulties and delays in ramping production at joint ventures; |
• | our control over the operations of our joint ventures is limited; |
• | we may recognize losses from equity investment Inotera in our future results of operations; |
• | due to financial constraints, our joint venture partners may be unable to meet their commitments to us or our joint ventures and may pose credit risks for our transactions with them; |
• | due to differing business models or long-term business goals, our partners may decide not to join us in funding capital investment by our joint ventures, which may result in higher levels of cash expenditures by us; |
• | cash flows may be inadequate to fund increased capital requirements; |
• | we may experience difficulties or delays in collecting amounts due to us from our joint ventures and partners; |
• | the terms of our partnering arrangements may turn out to be unfavorable; and |
• | changes in tax, legal or regulatory requirements may necessitate changes in the agreements with our partners. |
• | we may be required to compensate customers for costs incurred or damages caused by defective or incompatible product or replace products; |
• | we could incur a decrease in revenue or adjustment to pricing commensurate with the reimbursement of such costs or alleged damages; and |
• | we may encounter adverse publicity, which could cause a decrease in sales of our products. |
• | export and import duties, changes to import and export regulations, and restrictions on the transfer of funds; |
• | compliance with U.S. and international laws involving international operations, including the Foreign Corrupt Practices Act, export control laws and similar rules and regulations; |
• | political and economic instability; |
• | problems with the transportation or delivery of our products; |
• | issues arising from cultural or language differences and labor unrest; |
• | longer payment cycles and greater difficulty in collecting accounts receivable; |
• | compliance with trade, technical standards and other laws in a variety of jurisdictions; |
• | contractual and regulatory limitations on our ability to maintain flexibility with our staffing levels; |
• | disruptions to our manufacturing operations as a result of actions imposed by foreign governments; |
• | changes in economic policies of foreign governments; and |
• | difficulties in staffing and managing international operations. |
Period | Total number of shares purchased | Average price paid per share | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs | |||||||||
March 1, 2013 | - | April 4, 2013 | 1,262 | $ | 9.34 | N/A | N/A | ||||||
April 5, 2013 | - | May 2, 2013 | 302 | 9.24 | N/A | N/A | |||||||
May 3, 2013 | - | May 30, 2013 | 1,206 | 10.82 | N/A | N/A | |||||||
2,770 | 9.97 |
Exhibit Number | Description of Exhibit | |
3.1 | Restated Certificate of Incorporation of the Registrant (1) | |
3.2 | Bylaws of the Registrant, as amended (2) | |
10.107 | MTV Asset Purchase and Sale Agreement, dated April 6, 2012, among Micron Technology, Inc., Intel Corporation and IM Flash Technologies, LLC | |
10.131 | Currency Option Transaction 590297603-2 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.132 | Currency Option Transaction 590297604-2 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.133 | Currency Option Transaction 590297605-2 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.134 | Currency Option Transaction 590332910-1 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.135 | Currency Option Transaction 590332913-1 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.136 | Currency Option Transaction 590332916-1 Trade Date March 26, 2013, by and between Micron Technology, Inc. and Deutsche Bank AG, London Branch | |
10.137 | Foreign Exchange Forward and Currency Option Transactions (Ref. No. 5371036; 5371039) dated March 26, 2013, by and between Micron Technology, Inc. and Morgan Stanley Bank, N.A. | |
10.138 | Currency Exchange Confirmation (Ref. No. SDB2634749868-2634749919) dated March 26, 2013, by and between Micron Technology, Inc. and J. Aron & Company, an affiliate of the Goldman Sachs Group, Inc. | |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer | |
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer | |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350 | |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
(1) | Incorporated by reference to Quarterly Report on Form 10-Q for the quarter ended May 31, 2001 |
(2) | Incorporated by reference to Current Report on Form 8-K dated January 22, 2013 |
Micron Technology, Inc. | ||
(Registrant) | ||
Date: | July 8, 2013 | /s/ Ronald C. Foster |
Ronald C. Foster Vice President of Finance and Chief Financial Officer (Principal Financial and Accounting Officer) |
ARTICLE I PURCHASE AND SALE; ASSUMED LIABILITIES; CLOSING | 3 |
ARTICLE II REPRESENTATIONS AND WARRANTIES OF IMFT | 10 |
ARTICLE III REPRESENTATIONS AND WARRANTIES OF MICRON | 12 |
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF INTEL | 13 |
ARTICLE V CONDITION TO CLOSING | 14 |
ARTICLE VI COVENANTS | 14 |
ARTICLE VII MISCELLANEOUS | 16 |
ARTICLE VIII DEFINITIONS | 20 |
INTEL CORPORATION | ||
By: | /s/ Brian Krzanich | |
Brian Krzanich Senior Vice President, Chief Operating Officer | ||
MICRON TECHNOLOGY, INC. | ||
By: | /s/ D. Mark Durcan | |
D. Mark Durcan Chief Executive Officer | ||
IM FLASH TECHNOLOGIES, LLC | ||
By: | /s/ Rodney Morgan | |
Rodney Morgan Co-Executive Officer | ||
By: | /s/ Keyvan Esfarjani | |
Keyvan Esfarjani Co-Executive Officer |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590297603-2 USI: 10302106780112000000000000000000590297603P | 2 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party B |
Seller: | Party A |
Currency Option Style: | European |
Currency Option Type: | USD Put/JPY Call |
Put Currency and Put | Currency Amount: USD 219,780,219.78 |
Call Currency and Call | Currency Amount: JPY 20,000,000,000 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 91.00000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590297604-2 USI: 10302106780112000000000000000000590297604P | 17 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party A |
Seller: | Party B |
Currency Option Style: | European |
Currency Option Type: | JPY Put/USD Call |
Put Currency and Put Currency Amount:: | JPY 20,000,000,000 |
Call Currency and Call Currency Amount: | USD 219,780,219.78 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 91.00000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590297605-2 USI: 10302106780112000000000000000000590297605P | 2 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party B |
Seller: | Party A |
Currency Option Style: | European |
Currency Option Type: | JPY Put/USD Call |
Put Currency and Put Currency Amount: | JPY 20,000,000,000 |
Call Currency and Call Currency Amount: | USD 211,976,682.56 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 94.35000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590332910-1 USI: 10302106780112000000000000000000590332910P | 2 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party B |
Seller: | Party A |
Currency Option Style: | European |
Currency Option Type: | USD Put/JPY Call |
Put Currency and Put Currency Amount: | USD 43,956,043.96 |
Call Currency and Call Currency Amount: | JPY 4,000,000,000 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 91.00000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590332913-1 USI: 10302106780112000000000000000000590332913P | 17 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party A |
Seller: | Party B |
Currency Option Style: | European |
Currency Option Type: | JPY Put/USD Call |
Put Currency and Put Currency Amount: | JPY 4,000,000,000 |
Call Currency and Call Currency Amount: | USD 43,956,043.96 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 91.00000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Deutsche Bank AG, London Branch | ![]() |
Currency Option Transaction Our ref: 590332916-1 USI: 10302106780112000000000000000000590332916P | 2 April, 2013 |
MICRON TECHNOLOGY INC CORPORATION SERVICE COMPANY 80 STATE STREET ALBANY 12207 2543,NEW YORK,UNITED STATES +1 6464612650 Dear Sirs, | Deutsche Bank AG, London Branch FX Options Operations Winchester House 1, Great Winchester Street London. EC2N 2DB Telex: 94015555 Swift: DEUT GB2L Direct Line. +44 207 541 1709 Direct Fax: +44 207 545 6338/6366 |
Trade Date: | 26 March 2013 |
Buyer: | Party B |
Seller: | Party A |
Currency Option Style: | European |
Currency Option Type: | JPY Put/USD Call |
Put Currency and Put Currency Amount: | JPY 4,000,000,000 |
Call Currency and Call Currency Amount: | USD 42,395,336.51 |
Expiration Date: | 25 September 2013 |
Expiration Time: | 10:00 hours (Local time in New York) |
Settlement Date: | 27 September 2013 |
Strike Price: | JPY 94.35000 per USD 1.00 |
(i) | Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into this Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgement and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered to be investment advice or a recommendation to enter into the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. |
(ii) | Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts the terms and conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of the Transaction. |
(iii) | Status of Parties. The other party is not acting as a fiduciary for or adviser to it in respect of this Transaction. |
Confirmed as of the date first above written: | DB Authorized Signatory | |||
MICRON TECHNOLOGY INC | ||||
By: | /s/ Anne Miller | By: | /s/ Sangeetha Manvi | |
Name: | Name: | Sangeetha Manvi | ||
Authorised Signatory | Authorised Signatory |
Morgan Stanley | Morgan Stanley Bank, N.A. One Utah Center 201 South Main Street, 51h floor Salt Lake City, UT 84111 Tel: (718) 754-8540 Fax: (718) 233-0006 I mail: spndfconfo@morganstanley.com Queries: fxspconfo@morganstanley.com |
Trade Date: | 26 March 2013 |
Currency Pair: | USDJPY |
Amount and Currency Payable by Party A: | JPY 16,000,000,000 |
Amount and Currency Payable by Party B: | USD 175,824,175.82 |
Forward Rate: | 91.00 JPY per USD |
Settlement Date: | 27 September 2013 |
Calculation Agent: | Party A |
Trade Date: | 26 March 2013 |
Buyer: | Party B |
Seller: | Party A |
Currency Option Style: | European |
Currency Option Type: | USD Call / JPY Put |
Call Currency Amount: | USD 169,312,169.31 |
Put Currency Amount: | JPY 16,000,000,000.00 |
Strike Price: | 94.50 |
Premium: | Zero |
Premium Payment Date: | 28 March 2013 |
Option Expiration Date: | 25 September 2013 |
Option Expiration Time: | 10:00 a.m., local time in New York |
Option Settlement Date: | 27 September 2013 |
Automatic Exercise: | Applicable |
Calculation Agent: | Party A |
Confirmation | |
DATE: | Mar 26 2013 |
TO: | MICRON TECHNOLOGY, INC. |
ATTENTION: | FX OPERATIONS |
FROM: | J. Aron & Company |
SUBJECT: | Transaction |
REFERENCE NUMBER: | SDB2634749868-2634749919 |
USI (UNIQUE SWAP IDENTIFIER): | 1030444992SDB00000263474986817KNU1R0000000 |
Trade Date: | Mar 26 2013 |
Part I: | |
Buyer: | Counterparty |
Seller: | ARON |
Currency Option Style: | European |
Currency Option Type: | USD Call / JPY Put |
Call Currency and Call Currency Amount: | USD 425,237,867.43 |
Put Currency and Put Currency Amount: | JPY 40,000,000,000.00 |
Strike Price: | 94.065 JPY/USD |
Expiration Date: | Sep 25 2013 |
Expiration Time: | 10:00 a.m. New York time |
Automatic Exercise: | Applicable |
Settlement Date: | Sep 27 2013 |
Settlement: | Deliverable |
Premium: | Zero |
Other terms and conditions: | None |
Calculation Agent: | ARON, unless otherwise specified in the Agreement |
Currency and Amount payable by Counterparty: | USD 439,560,439.56 |
Currency and Amount payable by ARON: | JPY 40,000,000,000.00 |
Forward Rate: | 91.00 JPY/USD |
Settlement Date: | Sep 27 2013 |
Settlement: | Deliverable |
Very truly yours, | |||
J. Aron & Company | |||
By: | /s/ Arthur Ambrose | ||
Name: | Arthur Ambrose | ||
Title: | Vice President | ||
Agreed and Accepted By: | |||
MICRON TECHNOLOGY, INC. | |||
By: | /s/ Anne Miller |
1. | I have reviewed this quarterly report on Form 10-Q of Micron Technology, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 8, 2013 | /s/ D. Mark Durcan |
D. Mark Durcan Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Micron Technology, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 8, 2013 | /s/ Ronald C. Foster |
Ronald C. Foster Vice President of Finance and Chief Financial Officer |
Date: | July 8, 2013 | /s/ D. Mark Durcan |
D. Mark Durcan Chief Executive Officer |
Date: | July 8, 2013 | /s/ Ronald C. Foster |
Ronald C. Foster Vice President of Finance and Chief Financial Officer |
'N&-',!]0&YB<8$T7UWBO*OC*\
Other Non-Operating Income (Expense), Net (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
May 30, 2013
|
May 31, 2012
|
May 30, 2013
|
May 31, 2012
|
|
Component of Other Expense, Nonoperating [Line Items] | ||||
Gain (loss) from changes in currency exchange rates | $ (45) | $ (1) | $ (231) | $ (14) |
Loss from extinguishment of debt | 0 | 0 | (31) | 0 |
Gain (loss) from disposition of investments | (1) | 0 | (1) | 39 |
Other | 1 | (1) | 0 | (1) |
Other non-operating income (expense), net | (45) | (2) | (263) | 24 |
Fair Value Adjustments on Hedges and Derivative Contracts [Member] | Elpida Memory, Inc. and Rexchip Electronics Corporation [Member]
|
||||
Component of Other Expense, Nonoperating [Line Items] | ||||
Gain (loss) from changes in currency exchange rates | $ (47) | $ (225) |
Income Taxes Income Tax Holiday (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended |
---|---|---|
May 30, 2013
|
May 30, 2013
|
|
Income Tax Holiday [Line Items] | ||
Tax benefit due to arrangements allowing computation of tax provision at rates below local statutory rates | $ 25 | $ 72 |
Tax benefit per diluted share due to arrangements allowing computation of tax provision at rates below local statutory rates (in dollars per share) | $ 0.02 | $ 0.07 |
Debt
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt
(1) Holders of these notes have the right to require us to repurchase all or a portion of their notes on the dates specified. (2) For these notes, we have the option to pay cash for the aggregate amount due upon conversion. It is our current intent to settle the principal amount of these notes in cash upon conversion. As a result, the notes are considered in diluted earnings per share under the treasury stock method. Capital Lease Obligations For the third quarter of 2013, we received $33 million in proceeds from equipment sale-leaseback transactions and as a result recorded capital lease obligations aggregating $33 million at a weighted-average effective interest rate of 3.9%, payable in periodic installments through June 2017. In the first nine months of 2013, we received $106 million in proceeds from equipment sale-leaseback transactions and as a result recorded capital lease obligations aggregating $106 million at a weighted-average effective interest rate of 4.4%, payable in periodic installments through June 2017. Partial Repurchase of the 2014 Notes On February 12, 2013, we repurchased $464 million of aggregate principal amount of our 1.875% Convertible Senior Notes due June 2014 (the "2014 Notes") for $477 million in privately negotiated transactions. The liability and equity components of the 2014 Notes were stated separately pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. Accordingly, the repurchase resulted in the derecognition of $431 million in debt for the principal amount (net of $33 million of debt discount) and $15 million in additional capital for the equity component. We recognized a charge of $31 million associated with the early repurchase, based on the estimated $462 million fair value of the debt component and the $431 million carrying value (net of unamortized discount) of the notes repurchased. The fair value of the debt component was estimated using an interest rate for non-convertible debt, with terms similar to the debt component of the 2014 Notes on a stand-alone basis issued by entities with credit ratings similar to ours at the repurchase date (Level 2 fair value measurements). 2033E and 2033F Notes On February 12, 2013, we issued $300 million of 1.625% Convertible Senior Notes due February 2033 (the "2033E Notes") and $300 million of 2.125% Convertible Senior Notes due February 2033 (the "2033F Notes" and together with the 2033E Notes, the "2033 Notes"). Issuance costs for the 2033 Notes totaled $16 million. The initial conversion rate for the 2033 Notes is 91.4808 shares of common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $10.93 per share of common stock. Interest is payable in February and August of each year. Upon issuance of the 2033 Notes, we recorded $526 million of debt, $72 million of additional capital and $14 million of deferred debt issuance costs (included in other noncurrent assets). The amount recorded as debt was based on the fair value of the debt component as a standalone instrument and was determined using an average interest rate for similar nonconvertible debt issued by entities with credit ratings comparable to ours at the time of issuance (Level 2 fair value measurements). The difference between the debt recorded at inception and the principal amount ($31 million for the 2033E Notes and $43 million for the 2033F Notes) is being accreted to principal as interest expense through February 2018 for the 2033E Notes and February 2020 for the 2033F Notes, the expected life of the notes. Conversion Rights: Holders may convert their 2033 Notes under the following circumstances: (1) if the 2033 Notes are called for redemption; (2) during any calendar quarter if the closing price of our common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is more than 130% of the conversion price (approximately $14.21 per share) of the 2033 Notes; (3) if the trading price of the 2033 Notes is less than 98% of the product of the closing price of our common stock and the conversion rate of the 2033 Notes during the periods specified in the indenture; (4) if specified distributions or corporate events occur, as set forth in the indenture for the 2033 Notes; or (5) at any time after November 15, 2032. Upon conversion, we will pay cash equal to the lesser of the aggregate principal amount and the conversion value of the notes being converted and cash, shares of common stock or a combination of cash and shares of common stock, at our option, for any remaining conversion obligation. As a result, the 2033 Notes are considered in diluted earnings per share under the treasury stock method. Cash Redemption at Our Option: We may redeem for cash the 2033E Notes on or after February 20, 2018 and the 2033F Notes on or after February 20, 2020. The redemption price will equal the principal amount plus accrued and unpaid interest. Cash Repurchase at the Option of the Holder: We may be required by the holders of the 2033 Notes to repurchase for cash all or a portion of the 2033E Notes on February 15, 2018 and on February 15, 2023 and all or a portion of the 2033F Notes on February 15, 2020 and on February 15, 2023. The repurchase price is equal to the principal amount plus accrued and unpaid interest. Upon a change in control or a termination of trading, as defined in the indenture, holders of the 2033 Notes may require us to repurchase for cash all or a portion of their 2033 Notes at a repurchase price equal to the principal amount plus accrued and unpaid interest. Term Note Payable On October 2, 2012, we entered into a facility agreement to obtain financing collateralized by semiconductor production equipment. Subject to customary conditions, we could draw up to $214 million under the facility agreement. Amounts drawn are payable in 10 equal semi-annual installments beginning six months after the draw date. On October 18, 2012, we drew $173 million with interest at 2.4% per annum. On January 31, 2013, we drew the remaining $41 million with interest at 2.4% per annum. The facility agreement contains customary covenants and events of default. Revolving Credit Facility On September 5, 2012, we entered into a three-year revolving credit facility. Under this credit facility, we can draw up to the lesser of $255 million or 80% of the net outstanding balance of certain trade receivables. Amounts drawn would be collateralized by a security interest in such receivables. The availability of the facility is subject to certain customary conditions, including the absence of any event or circumstance that has a material adverse effect on our business or financial condition. The revolving credit facility contains customary covenants and a repayment provision in the event that the maximum aging of the receivables exceeds a specified threshold. Interest is payable monthly on any outstanding principal balance at a variable rate equal to the 30-day Singapore Interbank Offering Rate ("SIBOR") plus 2.8% per annum. As of May 30, 2013, we had not drawn any amounts under this facility. Subsequent Events - Financing On June 27, 2013, we entered into a senior secured three-year revolving credit facility, collateralized by a security interest in certain trade receivables. Under this facility, we can draw up to 85% of the net outstanding balance of certain trade receivables, subject to certain adjustments, including an availability block that has the effect of limiting the maximum committed draw amount to approximately $153 million. The revolving credit facility contains customary covenants and conditions, including as a funding condition the absence of any event or circumstance that has a material adverse effect on our business or financial condition. Generally, interest is payable on any outstanding principal balance at a variable rate equal to the London Interbank Offered Rate (“LIBOR”) plus a spread from 1.5% to 2.0%, or at our option, at a rate equal to an alternate base rate (defined as the highest of (1) the prime rate, (2) one-month LIBOR plus 1.0% or (3) the Federal Funds Effective Rate) plus a spread from 0.5% to 1.0%. In either case, the spread added to the applicable interest rate basis varies depending upon the amount of the monthly average undrawn availability under the facility. |
Receivables (Details) (USD $)
In Millions, unless otherwise specified |
May 30, 2013
|
Aug. 30, 2012
|
---|---|---|
Receivables [Abstract] | ||
Trade receivables (net of allowance for doubtful accounts of $5 and $5, respectively) | $ 1,250 | $ 933 |
Related party receivables | 56 | 63 |
Income and other taxes | 51 | 80 |
Other | 146 | 213 |
Receivables | 1,503 | 1,289 |
Allowance for doubtful accounts | 5 | 5 |
Intel [Member]
|
||
Receivables [Abstract] | ||
Other | 38 | 34 |
Nanya Technology Corporation ('Nanya') [Member]
|
||
Receivables [Abstract] | ||
Other | 17 | |
Currency Hedges [Member]
|
||
Receivables [Abstract] | ||
Other | 1 | 63 |
Aptina [Member]
|
||
Receivables [Abstract] | ||
Related party receivables | $ 56 | $ 62 |
Investments
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Text Block] | Investments As of May 30, 2013 and August 30, 2012, available-for-sale investments, including cash equivalents, were as follows:
As of May 30, 2013, no available-for-sale security had been in a loss position for longer than 12 months. The table below presents the amortized cost and fair value of available-for-sale debt securities, including cash equivalents, as of May 30, 2013, by contractual maturity:
Net unrealized holding gains reclassified out of accumulated other comprehensive income from sales of available-for-sale securities were $34 million in the second quarter of 2012 and were not significant for any other periods presented. Proceeds from the sales of available-for-sale securities were $346 million and $481 million for the third quarter and first nine months of 2013, respectively, and $18 million and $59 million for the third quarter and first nine months of 2012, respectively. Gross realized gains from sales of available-for-sale securities were $34 million for the second quarter of 2012 and were not significant for any other periods presented. |
Other Operating (Income) Expense, Net
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net
Other operating expense for the third quarter of fiscal 2012 included $17 million from the termination of a lease with IMFT, and a charge of $10 million to write off a receivable in connection with resolution of certain prior year tax matters. |
Derivative Financial Instruments - Hedging Relationship (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
May 30, 2013
|
May 31, 2012
|
May 30, 2013
|
May 31, 2012
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income | $ (224) | $ (29) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | 2 | 6 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 3 | 3 | ||
Other Non-Operating Income Expense Net [Member] | Nondesignated [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income | (50) | (11) | (223) | (28) |
Other Comprehensive Income [Member] | Cash Flow Hedging [Member]
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||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (3) | $ (9) | $ (11) |
Equity Method Investments (Details)
Share data in Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||
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May 30, 2013
USD ($)
|
May 31, 2012
USD ($)
|
May 30, 2013
USD ($)
|
May 31, 2012
USD ($)
|
Aug. 30, 2012
USD ($)
|
May 31, 2012
Nanya Technology Corporation ('Nanya') [Member]
USD ($)
|
Feb. 28, 2013
Nanya Technology Corporation ('Nanya') [Member]
USD ($)
|
May 31, 2012
Nanya Technology Corporation ('Nanya') [Member]
USD ($)
|
May 28, 2013
Inotera [Member]
USD ($)
|
May 28, 2013
Inotera [Member]
TWD
|
Mar. 31, 2012
Inotera [Member]
USD ($)
|
May 30, 2013
Inotera [Member]
USD ($)
|
Mar. 31, 2013
Inotera [Member]
USD ($)
|
May 31, 2012
Inotera [Member]
USD ($)
|
Dec. 31, 2012
Inotera [Member]
|
May 30, 2013
Inotera [Member]
USD ($)
|
May 31, 2012
Inotera [Member]
USD ($)
|
Aug. 30, 2012
Inotera [Member]
USD ($)
|
May 30, 2013
Inotera [Member]
Inventories [Member]
DRAM [Member]
USD ($)
|
May 31, 2012
Inotera [Member]
Inventories [Member]
DRAM [Member]
USD ($)
|
May 30, 2013
Inotera [Member]
Inventories [Member]
DRAM [Member]
USD ($)
|
May 31, 2012
Inotera [Member]
Inventories [Member]
DRAM [Member]
USD ($)
|
Aug. 29, 2013
Inotera [Member]
Scenario, Forecast [Member]
USD ($)
|
May 30, 2013
Inotera [Member]
Nanya Technology Corporation ('Nanya') [Member]
|
May 30, 2013
Other [Member]
USD ($)
|
May 31, 2012
Other [Member]
USD ($)
|
May 30, 2013
Other [Member]
USD ($)
|
May 31, 2012
Other [Member]
USD ($)
|
Aug. 30, 2012
Other [Member]
USD ($)
|
May 30, 2013
Other [Member]
Aptina [Member]
USD ($)
|
May 31, 2012
Other [Member]
Transform [Member]
USD ($)
|
Mar. 04, 2010
Other [Member]
Transform [Member]
|
May 30, 2013
Other [Member]
Transform [Member]
|
May 30, 2013
Other [Member]
Transform [Member]
Origin Energy Limited [Member]
|
May 30, 2013
Primarily Inotera [Member]
USD ($)
|
|
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||
Investment Balance | $ 272,000,000 | $ 272,000,000 | $ 389,000,000 | $ 259,000,000 | $ 259,000,000 | $ 370,000,000 | $ 13,000,000 | $ 13,000,000 | $ 19,000,000 | $ 0 | $ 0 | ||||||||||||||||||||||||
Ownership Percentage (in hundredths) | 35.50% | 35.50% | 39.70% | 30.20% | 50.00% | ||||||||||||||||||||||||||||||
Equity in net loss of equity method investees | (10,000,000) | (115,000,000) | (120,000,000) | (262,000,000) | (13,000,000) | (38,000,000) | (121,000,000) | (157,000,000) | 3,000,000 | (77,000,000) | 1,000,000 | (105,000,000) | |||||||||||||||||||||||
Maximum exposure to loss related variable interest entities | 262,000,000 | ||||||||||||||||||||||||||||||||||
Percentage interest held by a third party (in hundredths) | 36.10% | 50.00% | |||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||
Number of shares issued by Inotera | 634 | 634 | |||||||||||||||||||||||||||||||||
Stock price per share | $ 0.32 | 9.47 | |||||||||||||||||||||||||||||||||
Ownership percentage before transaction | 39.70% | 39.70% | 29.70% | ||||||||||||||||||||||||||||||||
Ownership percentage after transaction | 35.50% | 35.50% | 39.70% | ||||||||||||||||||||||||||||||||
Gain on Inotera stock issuance | 48,000,000 | ||||||||||||||||||||||||||||||||||
Payments to acquire equity method investments | 0 | 180,000,000 | 170,000,000 | ||||||||||||||||||||||||||||||||
Market value of equity interest in Inotera | 854,000,000 | 854,000,000 | |||||||||||||||||||||||||||||||||
Amount in accumulated other comprehensive income (loss) for cumulative translation adjustments on its investment | 51,000,000 | 51,000,000 | 49,000,000 | ||||||||||||||||||||||||||||||||
Inotera Amortization | 12,000,000 | 36,000,000 | |||||||||||||||||||||||||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||
Inotera net loss | 24,000,000 | ||||||||||||||||||||||||||||||||||
Inotera current liabilities that exceed current assets | 1,680,000,000 | ||||||||||||||||||||||||||||||||||
Percentage of Inotera's wafer production obligated to purchase (in hundredths) | 50.00% | ||||||||||||||||||||||||||||||||||
Purchases of DRAM products from Inotera | 341,000,000 | 178,000,000 | 742,000,000 | 476,000,000 | |||||||||||||||||||||||||||||||
Reduction in research and development costs under cost sharing arrangement | 35,000,000 | 19,000,000 | 108,000,000 | ||||||||||||||||||||||||||||||||
Ownership percentage after stock transactions during period (in hundredths) | 50.00% | ||||||||||||||||||||||||||||||||||
Other than temporary impairment in Transform | $ 69,000,000 |
Contingencies
|
9 Months Ended |
---|---|
May 30, 2013
|
|
Disclosure Text Block [Abstract] | |
Contingencies | Contingencies We have 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, including those described below. We are currently a party to other legal actions arising from the normal course of business, none of which is 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 technology industries, from time to time others have asserted, and may in the future assert, that our products or manufacturing processes infringe their intellectual property rights. We are engaged in litigation with Rambus, Inc. ("Rambus") relating to certain of Rambus' patents and certain of our claims and defenses. Our lawsuits with Rambus are pending in the U.S. District Court for the District of Delaware, U.S. District Court for the Northern District of California, Germany, France, and Italy. On August 28, 2000, we filed a complaint against Rambus in the U.S. District Court for the District of Delaware seeking declaratory and injunctive relief. The complaint alleges, among other things, various anticompetitive activities and also seeks a declaratory judgment that certain Rambus patents are invalid and/or unenforceable. Rambus subsequently filed an answer and counterclaim in Delaware alleging, among other things, infringement of twelve Rambus patents and seeking monetary damages and injunctive relief. We subsequently added claims and defenses based on Rambus' alleged spoliation of evidence and litigation misconduct. The spoliation and litigation misconduct claims and defenses were heard in a bench trial before Judge Robinson in October 2007. On January 9, 2009, Judge Robinson entered an opinion in our favor holding that Rambus had engaged in spoliation and that the twelve Rambus patents in the suit were unenforceable against us. Rambus subsequently appealed the decision to the U.S. Court of Appeals for the Federal Circuit. On May 13, 2011, the Federal Circuit affirmed Judge Robinson's finding of spoliation, but vacated the dismissal sanction and remanded the case to the Delaware District Court for analysis of the remedy based on the Federal Circuit's decision. On January 2, 2013, Judge Robinson entered a new opinion in our favor holding that Rambus had engaged in spoliation, that Rambus' spoliation was done in bad faith, that the spoliation prejudiced us, and that the appropriate sanction was to declare the twelve Rambus patents in the suit unenforceable against us. On March 27, 2013, Rambus filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. On January 13, 2006, Rambus filed a lawsuit against us in the U.S. District Court for the Northern District of California alleging that certain of our DDR2, DDR3, RLDRAM and RLDRAM II products infringe as many as fourteen Rambus patents and seeking monetary damages, treble damages, and injunctive relief. The Northern District of California Court stayed the trial of the patent phase of the Northern District of California case upon appeal of the Delaware spoliation issue to the Federal Circuit. On September 1, 2011, HSM Portfolio LLC and Technology Properties Limited LLC filed a patent infringement action in the U.S. District Court for the District of Delaware against us and seventeen other defendants. The complaint alleges that certain of our DRAM and image sensor products infringe two U.S. patents and seeks damages, attorneys' fees, and costs. On September 9, 2011, Advanced Data Access LLC filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Tyler) against us and seven other defendants. On November 16, 2011, Advanced Data Access filed an amended complaint. The amended complaint alleged that certain of our DRAM products infringed two U.S. patents and sought injunctive relief, damages, attorneys' fees, and costs. On March 20, 2013, we executed a settlement agreement resolving this litigation. The settlement amount did not have a material effect on our business, results of operations or financial condition. On September 14, 2011, Smart Memory Solutions LLC filed a patent infringement action in the U.S. District Court for the District of Delaware against us and Winbond Electronics Corporation of America. The complaint alleged that certain of our NOR Flash products infringed a single U.S. patent and sought injunctive relief, damages, attorneys' fees, and costs. On March 20, 2013, we executed a settlement agreement resolving this litigation. The settlement amount did not have a material effect on our business, results of operations or financial condition. On December 5, 2011, the Board of Trustees for the University of Illinois filed a patent infringement action against us in the U.S. District Court for the Central District of Illinois. The complaint alleges that unspecified semiconductor products of ours infringe three U.S. patents and seeks injunctive relief, damages, attorneys' fees, and costs. We have filed three petitions for inter-partes review by the Patent and Trademark Office, challenging the validity of each of the patents in suit. The District Court has stayed the litigation pending the outcome of the inter-partes review by the Patent Office. On March 26, 2012, Semiconductor Technologies, LLC filed a patent infringement action in the U.S. District Court for the Eastern District of Texas (Marshall) against us. The complaint alleged that certain of our DRAM products infringed five U.S. patents and sought injunctive relief, damages, attorneys' fees, and costs. On March 20, 2013, we executed a settlement agreement resolving this litigation. The settlement amount did not have a material effect on our business, results of operations or financial condition. On April 27, 2012, Semcon Tech, LLC filed a patent infringement action against us in the U.S. District Court for the District of Delaware. The complaint alleges that our use of various chemical mechanical planarization systems purchased from Applied Materials and others infringes a single U.S. patent and seeks injunctive relief, damages, attorneys' fees, and costs. Among other things, the above lawsuits pertain to certain of our SDRAM, DDR, DDR2, DDR3, RLDRAM, NAND Flash, NOR Flash and image sensor products, which account for a significant portion of our net sales. We are unable to predict the outcome of assertions of infringement made against us and therefore cannot estimate the range of possible loss, except as noted in the discussion of the Advanced Data Access LLC, Smart Memory Solutions LLC and Semiconductor Technologies, LLC matters above. A court determination that our products or manufacturing processes infringe the intellectual property rights of others could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing could have a material adverse effect on our business, results of operations or financial condition. Antitrust Matters On May 5, 2004, Rambus filed a complaint in the Superior Court of the State of California (San Francisco County) against us and other DRAM suppliers which alleged that the defendants harmed Rambus by engaging in concerted and unlawful efforts affecting Rambus DRAM by eliminating competition and stifling innovation in the market for computer memory technology and computer memory chips. Rambus' complaint alleged various causes of action under California state law including, among other things, a conspiracy to restrict output and fix prices, a conspiracy to monopolize, intentional interference with prospective economic advantage, and unfair competition. Rambus sought a judgment for damages of approximately $3.9 billion, joint and several liability, trebling of damages awarded, punitive damages, a permanent injunction enjoining the defendants from the conduct alleged in the complaint, interest, and attorneys' fees and costs. Trial began on June 20, 2011, and the case went to the jury on September 21, 2011. On November 16, 2011, the jury found for us on all claims. On April 2, 2012, Rambus filed a notice of appeal to the California 1st District Court of Appeal. At least sixty-eight purported class action price-fixing lawsuits have been filed against us and other DRAM suppliers in various federal and state courts in the United States and in Puerto Rico on behalf of indirect purchasers alleging a conspiracy to increase DRAM prices in violation of federal and state antitrust laws and state unfair competition law, and/or unjust enrichment relating to the sale and pricing of DRAM products during the period from April 1999 through at least June 2002. The complaints seek joint and several damages, trebled, in addition to restitution, costs and attorneys' fees. A number of these cases have been removed to federal court and transferred to the U.S. District Court for the Northern District of California for consolidated pre-trial proceedings. In July, 2006, the Attorneys General for approximately forty U.S. states and territories filed suit in the U.S. District Court for the Northern District of California. The complaints allege, among other things, violations of the Sherman Act, Cartwright Act, and certain other states' consumer protection and antitrust laws and seek joint and several damages, trebled, as well as injunctive and other relief. On October 3, 2008, the California Attorney General filed a similar lawsuit in California Superior Court, purportedly on behalf of local California government entities, alleging, among other things, violations of the Cartwright Act and state unfair competition law. On June 23, 2010, we executed a settlement agreement resolving these purported class-action indirect purchaser cases and the pending cases of the Attorneys General relating to alleged DRAM price-fixing in the United States. Subject to certain conditions, including final court approval of the class settlements, we agreed to pay approximately $67 million in aggregate in three equal installments over a two-year period. We had paid the full amount into an escrow account by the end of the first quarter of 2013 in accordance with the settlement agreement. Three putative class action lawsuits alleging price-fixing of DRAM products also have been filed against us in Quebec, Ontario, and British Columbia, Canada, on behalf of direct and indirect purchasers, asserting violations of the Canadian Competition Act and other common law claims (collectively the "Canadian Cases"). The claims were initiated between December 2004 (British Columbia) and June 2006 (Quebec). The plaintiffs seek monetary damages, restitution, costs, and attorneys' fees. The substantive allegations in these cases are similar to those asserted in the DRAM antitrust cases filed in the United States. Plaintiffs' motion for class certification was denied in the British Columbia and Quebec cases in May and June 2008, respectively. Plaintiffs subsequently filed an appeal of each of those decisions. On November 12, 2009, the British Columbia Court of Appeal reversed, and on November 16, 2011, the Quebec Court of Appeal also reversed the denial of class certification and remanded the cases for further proceedings. On October 16, 2012, we entered into a settlement agreement resolving these three putative class action cases subject to certain conditions including final court approval of the settlement. The settlement amount did not have a material effect on our business, results of operations or financial condition. On June 21, 2010, the Brazil Secretariat of Economic Law of the Ministry of Justice ("SDE") announced that it had initiated an investigation relating to alleged anticompetitive activities within the DRAM industry. The SDE's Notice of Investigation names various DRAM manufacturers and certain executives, including us, and focuses on the period from July 1998 to June 2002. We are unable to predict the outcome of these matters and therefore cannot estimate the range of possible loss, except as noted in the U.S. indirect purchaser cases and the Canadian Cases above. The final resolution of these alleged violations of antitrust laws could result in significant liability and could have a material adverse effect on our business, results of operations or financial condition. Commercial Matters On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda AG ("Qimonda") insolvency proceedings, filed suit against us and Micron Semiconductor B.V., our Netherlands subsidiary, 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 us and Qimonda signed in fall 2008 pursuant to which we purchased all of Qimonda's shares of Inotera Memories, Inc. and seeks an order requiring us to retransfer the Inotera shares purchased from Qimonda to the Qimonda estate. The complaint also seeks 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. A three-judge panel will render a decision after a series of hearings with pleadings, arguments and witnesses. Hearings were held on September 25, 2012, February 5, 2013, June 11, 2013 and July 2, 2013. An additional hearing is scheduled for October 8, 2013. We are unable to predict the outcome of this lawsuit and therefore cannot estimate the range of possible loss. The final resolution of this lawsuit could result in the loss of the Inotera shares or equivalent monetary damages and the termination of the patent cross license, which could have a material adverse effect on our business, results of operation or financial condition. As of May 30, 2013, the Inotera shares purchased from Qimonda had a carrying value of $143 million. Other In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify the other 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. Under the Sponsor Agreement, we have provided payment guarantees related to financing of capital expenditures. (See "Pending Acquisition of Elpida Memory, Inc." note.) |
Consolidated Variable Interest Entities (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IM Flash's distributions to, and contributions from, shareholders | IM Flash distributions and contributions: The following table presents IM Flash's distributions to and contributions from its shareholders ("IM Flash" includes both IMFT and IMFS prior to April 6, 2012 and includes only IMFT from April 6, 2013 through May 30, 2013):
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IM Flash Technologies, LLC [Member]
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Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total IMFT and MP Mask assets and liabilities | The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets, excluding intercompany balances:
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MP Mask Technology Center LLC [Member]
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Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total IMFT and MP Mask assets and liabilities | The following table presents the assets and liabilities of MP Mask included in our consolidated balance sheets, excluding intercompany balances:
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Earnings Per Share Earnings Per Share - Potential Common Shares Excluded in the Computation of Diluted Earnings Per Share Because They Would Have Been Antidilutive (Details)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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May 30, 2013
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May 31, 2012
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May 30, 2013
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May 31, 2012
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 185.4 | 379.7 | 373.8 | 379.7 |
Equity Method Investments - 2 (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 1 Months Ended | |||||
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May 03, 2013
Micron Technology Italia, Srl. [Member]
mm
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May 30, 2013
Aptina [Member]
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May 31, 2012
Aptina [Member]
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May 30, 2013
Aptina [Member]
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May 31, 2012
Aptina [Member]
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May 22, 2013
Aptina [Member]
Short Term interest free loan to Aptina [Member]
integer
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Jul. 03, 2013
Aptina [Member]
Short Term interest free loan to Aptina [Member]
Scenario, Forecast [Member]
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May 30, 2013
Aptina [Member]
Short Term interest free loan to Aptina [Member]
Other Current Assets [Member]
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Related Party Transaction [Line Items] | ||||||||
Revenues from transactions with related party | $ 61 | $ 99 | $ 170 | $ 292 | ||||
Cost of goods sold from transactions with related party | 70 | 208 | ||||||
Diameter of Wafer Used in Production (in millimeters) | 200 | |||||||
Maximum loan amount available to Aptina | 45 | |||||||
Draws available under short term note to Aptina | 3 | |||||||
Loan Receivable Number Of Payments | 3 | |||||||
Outstanding balance of Aptina's loan agreement | 15 | |||||||
Additional loan agreeement draws by Aptina subsequent to Q3-13 | $ 30 |
Accounts Payable and Accrued Expenses (Tables)
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May 30, 2013
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Accounts Payable And Accrued Liabilities Schedule |
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Earnings Per Share
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May 30, 2013
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Earnings Per Share | Earnings Per Share Basic earnings per share is computed based on the weighted-average number of common shares and stock rights outstanding. Diluted earnings per share is computed based on the weighted-average number of common shares and stock rights outstanding plus the dilutive effects of equity awards and convertible notes. Potential common shares that would increase earnings per share amounts or decrease loss per share amounts are antidilutive and are therefore excluded from diluted earnings per share calculations. Antidilutive potential common shares that could dilute basic earnings per share in the future were 185.4 million and 373.8 million for the third quarter and first nine months of 2013, respectively, and were 379.7 million for the third quarter and first nine months of 2012.
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Income Taxes
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9 Months Ended |
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May 30, 2013
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Disclosure Text Block [Abstract] | |
Income Taxes | Income Taxes Income taxes for the third quarter of 2013 included an $8 million tax benefit related to the sale of non-U.S. assets. Income taxes for the second quarter of 2013 included tax benefits related to non-U.S. jurisdictions of $10 million in aggregate for the favorable resolution of certain prior year tax matters (which was previously reserved as an uncertain tax position) and $9 million for a favorable change in tax law applicable to prior years. Income taxes for the third quarter and first nine months of 2012 included tax benefits of $42 million and $56 million, respectively, related to the favorable resolution of certain prior year tax matters, which were previously reserved as an uncertain tax position. Remaining taxes for the third quarters and first nine months of 2013 and 2012, respectively, primarily reflect taxes on our non-U.S. operations. We have a valuation allowance for our net deferred tax asset associated with our U.S. operations. The (provision) benefit for taxes on U.S. operations for the third quarters and first nine months of 2013 and 2012 was substantially offset by changes in the valuation allowance. We currently operate in several tax jurisdictions where we have arrangements that allow us to compute our tax provision at rates below the local statutory rates. These arrangements expire in whole or in part at various dates through 2026. Such arrangements benefitted our tax provision for the third quarter and first nine months of 2013 by $25 million ($0.02 per diluted share) and by $72 million ($0.07 per diluted share), respectively and were not significant for the third quarter or first nine months of 2012. |
Other Non-Operating Income (Expense), Net Other Non-Operating Income (Expense), Net (Tables)
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May 30, 2013
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Schedule of Other Nonoperating Income (Expense) [Table Text Block] |
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Inventories (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Table Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Inventory |
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Micron Shareholders' Equity and Noncontrolling Interests in Subsidiaries (Tables)
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May 30, 2013
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Schedule of Stockholders Equity [Table Text Block] | Changes in the components of equity were as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income (loss), net of tax, attributable to Micron shareholders at the end of each period, as well as other comprehensive income for the nine months ended May 30, 2013, were as follows:
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Segment Information (Tables)
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May 30, 2013
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Segment Information |
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Variable Interest Entities (Policies)
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9 Months Ended |
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May 30, 2013
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Policy Text Block [Abstract] | |
Variable Interest Entities | We have interests in entities that are Variable Interest Entities ("VIEs"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIEs require significant assumptions and judgments. |
Micron Shareholders' Equity and Noncontrolling Interests in Subsidiaries Shareholders' Equity - Capped Call Transactions (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
9 Months Ended | 3 Months Ended | ||
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May 30, 2013
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May 31, 2012
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May 30, 2013
Purchased Call Option [Member]
Convertible Senior Notes Due 2033 [Member]
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Nov. 29, 2012
Purchased Call Option [Member]
2013 convertible senior notes [Member]
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Option Indexed to Issuer's Equity [Line Items] | ||||
Option indexed to issuer's equity, strike price (in dollars per share) | 10.93 | 5.08 | ||
Option Indexed to Issuer's Equity, capped ceiling (in dollars per share) | $ 14.51 | $ 6.64 | ||
Option indexed to issuer's equity, shares (in shares) | 54.9 | 45.2 | ||
Option Indexed To Issuers Equity Settlement Minimum Proceeds | $ 0 | |||
Option Indexed to Issuer's Equity, Settlement Maximum Proceeds | 196 | |||
Option indexed to issuers equity cash paid | 48 | 102 | 48 | |
Option indexed to issuers equity cash received upon settlement | $ 24 | $ 0 | $ 24 |
Equity Plans (Tables)
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May 30, 2013
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Assumptions used in Black-Scholes option valuation model | Assumptions used in the Black-Scholes model are presented below:
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Schedule of restricted stock awards activity | Restricted Stock Awards granted for the third quarters and first nine months of 2013 and 2012 were as follows:
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Stock-based compensation expense | Stock-based Compensation Expense Total compensation costs for our equity plans were as follows:
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Fair Value Measurements - Assets measured (Details) (USD $)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Aug. 30, 2012
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May 31, 2012
Transform [Member]
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May 30, 2013
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
|
Aug. 30, 2012
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
|
Aug. 30, 2012
Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
|
May 30, 2013
Level 1 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
|
Aug. 30, 2012
Level 1 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
|
May 30, 2013
Level 1 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
|
May 30, 2013
Level 1 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
|
May 30, 2013
Level 1 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
|
May 30, 2013
Level 1 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
|
Aug. 30, 2012
Level 1 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 1 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 1 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 1 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 1 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 2 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 2 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Money market funds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Commercial paper [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Certificates of deposit [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Government securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Corporate bonds [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Asset-backed securities [Member]
Fair Value, Measurements, Recurring [Member]
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May 30, 2013
Level 3 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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Aug. 30, 2012
Level 3 [Member]
Marketable equity securities [Member]
Fair Value, Measurements, Recurring [Member]
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ 2,104,000,000 | $ 2,220,000,000 | $ 2,018,000,000 | $ 2,159,000,000 | $ 54,000,000 | $ 29,000,000 | $ 32,000,000 | $ 27,000,000 | $ 0 | $ 5,000,000 | $ 2,018,000,000 | $ 2,159,000,000 | $ 2,018,000,000 | $ 2,159,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 86,000,000 | $ 61,000,000 | $ 0 | $ 0 | $ 54,000,000 | $ 29,000,000 | $ 32,000,000 | $ 27,000,000 | $ 0 | $ 5,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||||||
Short-term investments | 112,000,000 | 100,000,000 | 112,000,000 | 100,000,000 | 1,000,000 | 4,000,000 | 41,000,000 | 51,000,000 | 45,000,000 | 31,000,000 | 25,000,000 | 10,000,000 | 0 | 4,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 112,000,000 | 100,000,000 | 1,000,000 | 4,000,000 | 41,000,000 | 51,000,000 | 45,000,000 | 31,000,000 | 25,000,000 | 10,000,000 | 0 | 4,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Long-term marketable investments | 347,000,000 | 374,000,000 | 347,000,000 | 374,000,000 | 55,000,000 | 88,000,000 | 211,000,000 | 203,000,000 | 72,000,000 | 73,000,000 | 9,000,000 | 10,000,000 | 7,000,000 | 5,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 7,000,000 | 5,000,000 | 340,000,000 | 369,000,000 | 55,000,000 | 88,000,000 | 211,000,000 | 203,000,000 | 72,000,000 | 73,000,000 | 2,000,000 | 5,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | 2,563,000,000 | 2,694,000,000 | 2,025,000,000 | 2,164,000,000 | 538,000,000 | 530,000,000 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than temporary impairment in Transform | 69,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 272,000,000 | $ 389,000,000 | $ 0 |
Other Non-Operating Income (Expense), Net
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May 30, 2013
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Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Operating Income Expense, Net [Text Block] | Other Non-Operating Income (Expense), Net
Gain (loss) from changes in currency exchange rates for the third quarter and first nine months of 2013 included currency losses of $47 million and $225 million, respectively, from changes in the market value of currency hedges executed in connection with our planned acquisitions of Elpida and Rexchip. Loss from extinguishment of debt for the second quarter of 2013 resulted from the early repurchase of a portion of our 2014 Notes. (See "Debt" note.) |
Variable Interest Entities
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9 Months Ended |
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May 30, 2013
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Disclosure Text Block [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have interests in entities that are Variable Interest Entities ("VIEs"). If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIEs require significant assumptions and judgments. Unconsolidated Variable Interest Entities Inotera: Inotera Memories, Inc. ("Inotera") is a VIE because its equity is not sufficient to permit it to finance its activities without additional support from its shareholders. In the second quarter of 2013, we entered into agreements with Nanya Technology Corporation ("Nanya") and Inotera to amend the joint venture relationship involving Inotera. These amendments included a new supply agreement between us and Inotera. We have determined that we do not have the power to direct the activities of Inotera that most significantly impact its economic performance, primarily due to (1) limitations on our governance rights that require the consent of other parties for key operating decisions and (2) Inotera's dependence on Nanya for financing and the ability of Inotera to operate in Taiwan. Therefore, we do not consolidate Inotera and we account for our interest under the equity method. Transform: Transform Solar Pty Ltd. ("Transform") is a VIE because its equity is not sufficient to permit it to finance its activities without additional financial support from us or its parent, Origin Energy Limited ("Origin"). We have determined that we do not have the power to direct the activities of Transform that most significantly impact its economic performance, primarily due to limitations on our governance rights that require the consent of Origin for key operating decisions. Therefore, we do not consolidate Transform and we account for our interest under the equity method. As of August 30, 2012, Transform's operations were substantially discontinued. For further information regarding our VIEs that we account for under the equity method, see "Equity Method Investments" note. EQUVO Entities: EQUVO HK Limited and EQUVA Capital 1 Pte. Ltd. (together, the "EQUVO Entities") are special purpose entities created to facilitate equipment sale-leaseback financing transactions between us and a consortium of financial institutions that fund the sale-leaseback transactions ("Financing Entities"). Neither we nor the Financing Entities have an equity interest in the EQUVO Entities. The EQUVO Entities are VIEs because their equity is not sufficient to permit them to finance their activities without additional support from the Financing Entities and because the third-party equity holder lacks characteristics of a controlling financial interest. By design, the arrangements with the EQUVO Entities are merely financing vehicles and we do not bear any significant risks from variable interests with the EQUVO Entities. Therefore, we have determined that we do not have the power to direct the activities of the EQUVO Entities that most significantly impact their economic performance and we do not consolidate the EQUVO Entities. Consolidated Variable Interest Entities IMFT: IM Flash Technologies, LLC ("IMFT") is a VIE because all of its costs are passed to us and its other member, Intel Corporation ("Intel"), through product purchase agreements and IMFT is dependent upon us or Intel for any additional cash requirements. We determined that we have the power to direct the activities of IMFT that most significantly impact its economic performance. The primary activities of IMFT are driven by the constant introduction of product and process technology. Because we perform a significant majority of the technology development, we have the power to direct its key activities. In addition, IMFT manufactures certain products exclusively for us using our technology. We also determined that we have the obligation to absorb losses and the right to receive benefits from IMFT that could potentially be significant to it. Therefore, we consolidate IMFT. MP Mask: MP Mask Technology Center, LLC ("MP Mask") is a VIE because substantially all of its costs are passed to us and its other member, Photronics, Inc. ("Photronics"), through product purchase agreements and MP Mask is dependent upon us or Photronics for any additional cash requirements. We determined that we have the power to direct the activities of MP Mask that most significantly impact its economic performance, primarily because (1) of our tie-breaking voting rights over key operating decisions and (2) nearly all key MP Mask activities are driven by our supply needs. We also determined that we have the obligation to absorb losses and the right to receive benefits from MP Mask that could potentially be significant to it. Therefore, we consolidate MP Mask. For further information regarding our consolidated VIEs, see "Consolidated Variable Interest Entities" note. |
Receivables
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 30, 2013
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Receivables | Receivables
As of May 30, 2013 and August 30, 2012, related party receivables included $56 million and $62 million, respectively, due from Aptina primarily for sales of image sensors under a wafer supply agreement. As of May 30, 2013 and August 30, 2012, other receivables included $1 million and $63 million, respectively, from our currency hedges. As of May 30, 2013 and August 30, 2012, other receivables included $38 million and $34 million, respectively, due from Intel for amounts related to NAND Flash and certain emerging memory technologies product design and process development activities under cost-sharing agreements. As of August 30, 2012, other receivables also included $17 million due from Nanya for amounts related to DRAM product design and process development activities under a cost-sharing agreement. (See "Derivative Financial Instruments," "Consolidated Variable Interest Entities" and "Equity Method Investments" notes.) |
Pending Acquisition of Elpida Memory, Inc. (Elpida Company [Member])
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9 Months Ended |
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May 30, 2013
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Elpida Company [Member]
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Business Acquisition [Line Items] | |
Pending Acquisition of Elpida Memory, Inc. | Pending Acquisition of Elpida Memory, Inc. On July 2, 2012, we entered into an "Agreement on Support for Reorganization Companies" (the "Sponsor Agreement") with the trustees of Elpida Memory, Inc. ("Elpida") and its subsidiary, Akita Elpida Memory, Inc. ("Akita" and, together with Elpida, the "Elpida Companies"), which provides for, among other things, our acquisition of Elpida and our support for the plans of reorganization of the Elpida Companies in connection with their corporate reorganization proceedings in Japan. The Elpida Companies filed petitions for commencement of corporate reorganization proceedings with the Tokyo District Court (the "Japan Court") under the Corporate Reorganization Act of Japan on February 27, 2012 (the "Japan Proceeding"). On March 23, 2012, the Japan Court issued an order to commence the Japan Proceeding. Elpida filed a Verified Petition for Recognition and Chapter 15 Relief (the "U.S. Proceeding") in the United States Bankruptcy Court for the District of Delaware (the "U.S. Court") on March 19, 2012 and, on April 24, 2012, the U.S. Court entered an order that, among other things, recognized the Japan Proceeding as a foreign main proceeding pursuant to 11 U.S.C. § 1517(b). On February 26, 2013, the Elpida Companies' creditors approved the plans of reorganization of Elpida and Akita and on February 28, 2013, the Japan Court issued an order approving the plans of reorganization. Appeals filed by certain creditors of Elpida in Japan challenging the plan approval order issued by the Japan Court were denied. On June 25, 2013, the U.S. Court issued a recognition order, which recognized the order of the Japan Court approving the Elpida plan of reorganization. In a related transaction, on July 2, 2012, we entered into a share purchase agreement (the "Rexchip Share Purchase Agreement") with Powerchip Technology Corporation, a Taiwanese corporation ("Powerchip"), and certain of its affiliates (collectively, the "Powerchip Group") to acquire the Powerchip Group's approximately 24% interest in Rexchip Electronics Corporation ("Rexchip"), a manufacturing joint venture formed by Elpida and Powerchip. For more information about the acquisition of the Rexchip shares from the Powerchip Group, see "Rexchip Share Purchase Agreement" below. Elpida currently owns, directly and indirectly through a subsidiary, approximately 65% of Rexchip's outstanding common stock. As a result, if the transactions contemplated by the Sponsor Agreement and the Rexchip Share Purchase Agreement are completed, we will own 100% of Elpida and, directly or indirectly through one or more of our subsidiaries, approximately 89% of Rexchip. Elpida's assets include, among others: a 300mm DRAM wafer fabrication facility located in Hiroshima, Japan; its ownership interest in Rexchip, whose assets include a 300mm DRAM wafer fabrication facility located in Taiwan; and an assembly and test facility located in Akita, Japan. Elpida's semiconductor memory products include Mobile DRAM targeted toward mobile phones and tablets. We believe that combining the complementary product portfolios of Micron and Elpida will strengthen our position in the memory market and enable us to provide customers with a wider portfolio of high-quality memory solutions. We also believe that the Elpida transactions will strengthen our market position in the memory industry through increased research and development and manufacturing scale, improved access to core memory market segments, and additional wafer capacity to balance among our DRAM, NAND Flash and NOR Flash memory solutions. There can be no assurance that we will be able to successfully consummate the transactions described above. Elpida Sponsor Agreement Under the Sponsor Agreement, we committed to support plans of reorganization for the Elpida Companies that would provide for payments by the Elpida Companies to their secured and unsecured creditors in an aggregate amount of 200 billion yen (or the equivalent of approximately $1.98 billion, assuming approximately 101 yen per U.S. dollar, the exchange rate as of May 30, 2013), less certain expenses of the reorganization proceedings and certain other items. The Sponsor Agreement provides that we will invest 60 billion yen (or the equivalent of approximately $593 million) in cash in Elpida at the closing in exchange for 100% ownership of Elpida's equity. As a condition to the execution of the Sponsor Agreement, we deposited 1.8 billion yen (or the equivalent of approximately $18 million) into an escrow account in July 2012, which will be applied toward our purchase price for the Elpida shares at closing. The Elpida Companies will use the proceeds of our investment to fund initial installment payments to their creditors of 60 billion yen, which amount is subject to reduction for certain items specified in the Sponsor Agreement. The initial installment payments will be made within three months following the closing of our acquisition of Elpida. The remaining 140 billion yen (or the equivalent of approximately $1.38 billion) of installment payments payable to the Elpida Companies' creditors are scheduled to be made by the Elpida Companies in six annual installments payable at the end of each calendar year beginning in the calendar year after the first installment payments are made. We or one of our subsidiaries are committed to enter into a supply agreement with Elpida following the closing, which will provide for our purchase on a cost-plus basis of all product produced by Elpida. Cash flows from such supply agreement will be used to satisfy the required installment payments under the plans of reorganization. Although certain key parameters of the supply agreement have been agreed to with Elpida, the detailed terms have not been completed, and the final terms will be subject to Japan Court approval. The Sponsor Agreement contains certain termination rights, including (i) in the event of a material adverse change affecting either Elpida and its subsidiaries or Rexchip disproportionate to industry trends or (ii) if our acquisition of Elpida has not closed by January 2, 2014, which date may be extended six months under certain limited circumstances. The consummation of the Sponsor Agreement remains subject to satisfaction or waiver of certain conditions, including the closing of the purchase of the Rexchip shares from the Powerchip Group under the Rexchip Share Purchase Agreement described above. There can be no assurance that the various conditions will be satisfied or that the Elpida Acquisition will ultimately be consummated on the terms and conditions set forth in the Sponsor Agreement. If the remaining closing conditions are not satisfied or waived, we will not be able to close the acquisitions. However, we believe the requirements for closing will be achieved and that we will close the acquisitions. Summary Description of the Plans of Reorganization Pursuant to the Sponsor Agreement, the trustees of the Elpida Companies prepared plans of reorganization for Elpida and Akita, which plans set forth the treatment of the Elpida Companies' pre-petition creditors and their claims utilizing the support contemplated by the Sponsor Agreement. Generally, Elpida's plan of reorganization provides that secured creditors will recover 100% of the amount of their fixed claims, whereas unsecured creditors will recover at least 17.4% of the amount of their fixed claims. The remaining portion of the unsecured claims are expected to be discharged, without payment, over the period that payments are made pursuant to the plans of reorganization. The creditors will be paid by Elpida in installments, with the first installment payment to occur within three months after the closing of Micron's acquisition of Elpida. The remaining installment payments will occur on the last business day of each calendar year over a six-year period beginning in the calendar year after the first installment payment is made. The secured creditors will be paid in full on or before the sixth installment payment date, while the unsecured creditors will be paid in seven installments. To the extent any claims remain unfixed as of the seventh installment payment date, an additional payment will be made to unsecured creditors once the remaining claims are finally fixed to the extent the remaining reserve exceeds the amounts payable with respect to the fixed claims. Akita's plan of reorganization provides that secured creditors will recover 100% of the amount of their claims, whereas unsecured creditors will recover 19% of the amount of their claims. The secured creditors of Akita will be paid in full on the first installment payment date, while the unsecured creditors will be paid in seven installments. The initial installment payment to be made by the Elpida Companies pursuant to the plans of reorganization is 60 billion yen (or the equivalent of approximately $593 million), which amount is subject to reduction for certain items specified in the Sponsor Agreement. The Elpida Companies will use the proceeds of Micron's investment at the closing of the Elpida acquisition to fund the initial installment payment. The remaining 140 billion yen (or the equivalent of approximately $1.38 billion) of installment payments will be made by the Elpida Companies in six annual installments, with payments of 20 billion yen (or the equivalent of approximately $198 million) in each of the first four installment payments, and payments of 30 billion yen (or the equivalent of approximately $297 million) in each of the final two installment payments. Cash flows from the cost-plus supply agreement described above will be used to satisfy the second through seventh installment payments under the plans of reorganization. Certain contingency matters related to the Elpida Companies, which are primarily comprised of outstanding litigation claims, were not treated as fixed claims under the plans of reorganization at the time the plans were filed with the Japan Court. A portion of each installment amount payable to the creditors of the Elpida Companies will be reserved in the event that any of these matters become fixed claims, in which case these fixed claims will be paid under the plans of reorganization in the same manner as the fixed claims of other creditors. To the extent the aggregate amounts reserved from the installment payments exceed the aggregate amounts payable with respect to these unfixed claims once they become fixed, the excess amounts reserved will be distributed to unsecured creditors with respect to their fixed claims, resulting in an increased recovery for the unsecured creditors out of the installment payments. To the extent the aggregate amounts reserved is less than the aggregate amounts payable with respect to these unfixed claims once they become fixed, the Elpida Companies would be responsible to fund any shortfall to ensure that the creditors receive the recovery to which they are entitled under the plans of reorganization with respect to these claims. As a result, there is a possibility that the total amount payable by the Elpida Companies to their creditors under the plans of reorganization will exceed 200 billion yen. In addition, if these unfixed claims are resolved pursuant to settlement arrangements or other post-petition agreements, a substantial portion of the amounts payable with respect to the claims may have to be funded by the Elpida Companies outside of the installment payments provided for by the plans of reorganization. Micron Credit Support Arrangements with Respect to the Elpida Companies Pursuant to the Sponsor Agreement, we agreed, subject to certain conditions, to provide certain support to Elpida with respect to obtaining financing for working capital purposes and capital expenditures. This support included a commitment to use reasonable best efforts to assist Elpida with the extension or replacement of Elpida's then-existing working capital credit facility through the closing of the Elpida acquisition, which assistance may include the provision of a payment guarantee by us under certain circumstances. Under the Sponsor Agreement, we also agreed, subject to certain conditions, to use reasonable best efforts to assist the Elpida Companies in financing up to 64 billion yen (or the equivalent of approximately $633 million) of eligible capital expenditures incurred through June 30, 2014, including up to 40 billion yen (or the equivalent of approximately $395 million) incurred prior to June 30, 2013, which may include us providing payment guarantees of third party financing under certain circumstances or direct financial support from Micron or one of its subsidiaries. As of May 30, 2013 we provided a guarantee of Elpida's payments through December 2014 related to financing of capital expenditures with an outstanding borrowing of 5 billion yen (or the equivalent of approximately $50 million). We also provided a guarantee of Elpida's payments relating to an extension of Elpida's existing working capital credit facility, with an outstanding borrowing as of May 30, 2013 of 8 billion yen (or the equivalent of approximately $79 million). On June 28, 2013, Elpida's working capital credit facility matured and was repaid in full, relieving us of our payment guarantee. We have entered into an omnibus reimbursement agreement with Elpida in connection with our financial support obligations under the Sponsor Agreement, whereby Elpida and certain of its subsidiaries have agreed, among other things, to reimburse us for any amounts that we are required to pay under or in connection with the payment guarantees. These obligations under the omnibus reimbursement agreement are collateralized by approximately 93% of the Rexchip shares held by Elpida and one of its subsidiaries. In the event we are required to make any payments to Elpida's lenders under the guarantees, our rights will be subrogated to those of the lenders, including any rights to exercise remedies with respect to collateral securing the underlying loans. Failure to close the Elpida acquisition would not relieve us of our obligations under the foregoing payment guarantees. Under the Sponsor Agreement, certain conditions require Elpida's cash balances to be below a certain level in order for capital expenditure financing support to be available to Elpida. As of May 30, 2013, these conditions were not satisfied. As a result, we would not be obligated to provide any such further support unless and until such conditions, as well as all other applicable conditions, are met. Although we were not obligated to do so, in June 2013, we provided an additional payment guarantee related to the financing of capital expenditures of an aggregate of $16 million in order for Elpida to obtain more favorable financing terms. The financing of Elpida is collateralized by certain of its semiconductor equipment. Rexchip Share Purchase Agreement On July 2, 2012, we entered into the Rexchip Share Purchase Agreement with the Powerchip Group, under which we will purchase approximately 714 million shares of Rexchip common stock, which represents approximately 24% of Rexchip's outstanding common stock, for approximately 10 billion New Taiwan dollars (or the equivalent of approximately $334 million, assuming approximately 30 New Taiwan dollars per U.S. dollar, the exchange rate as of May 30, 2013). The consummation of the Rexchip Share Purchase Agreement is subject to various closing conditions, including the closing of the transactions contemplated by the Sponsor Agreement. At the closing of the Sponsor Agreement and the Rexchip Share Purchase Agreement, we will own, directly or indirectly through one or more of our subsidiaries, approximately 89% of Rexchip. Currency Hedging Elpida Hedges: On July 2, 2012, we executed a series of separate currency exchange transactions pursuant to which we purchased call options to buy 200 billion yen with a weighted-average strike price of 79.15 (yen per U.S. dollar). In addition, to reduce the cost of these call options, we sold put options to sell 100 billion yen with a strike price of 83.32 and we sold call options to buy 100 billion yen with a strike price of 75.57. These currency exchange transactions (the "Original Elpida Hedges") were settled on March 26, 2013 and we paid $191 million on settlement. Upon settlement of the Original Elpida Hedges, on March 26, 2013, we executed a series of new separate currency exchange transactions to hedge our exposure to the yen-denominated acquisition payments under the Sponsor Agreement pursuant to which we entered into below-market forward contracts to buy 80 billion yen with a weighted-average price of 91.00 (yen per U.S. dollar) and purchased put options to sell 80 billion yen with a weighted-average strike price of 94.24 (the "New Elpida Hedges"). The New Elpida Hedges, which expire on September 25, 2013, mitigate the risk of a strengthening yen for certain of our yen-denominated payments under the Sponsor Agreement while preserving some ability for us to benefit if the value of the yen weakens relative to the U.S. dollar. The forward and option contracts detailed above were not designated for hedge accounting and are remeasured at fair value each period with gains and losses reflected in our results of operations. As a result of the mark-to-market adjustments for the Original Elpida Hedges and the New Elpida Hedges (the "Elpida Hedges"), we recorded losses to other non-operating expense of $46 million and $222 million for the third quarter and first nine months of 2013, respectively. As of May 30, 2013, our cumulative loss on the Elpida Hedges was $214 million. Rexchip Hedges: On July 25, 2012, we purchased call options to buy 10 billion New Taiwan dollars with a weighted-average strike price of 29.21 (New Taiwan dollar per U.S. dollar). These options expired on April 2, 2013 and we paid $3 million on settlement. On April 9, 2013, we purchased call options for $1 million to buy 10 billion New Taiwan dollars with a strike price of 28.50 (New Taiwan dollar per U.S. dollar). These options expire on September 25, 2013. These option contracts were not designated for hedge accounting and were remeasured at fair value each period with gains and losses reflected in our results of operations. |
Derivative Financial Instruments (Tables)
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Total gross notional amounts and fair values for currency derivatives without hedge accounting designation were as follows:
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Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation were as follows:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the gross amounts of our derivative assets and liabilities and the net amounts recorded in our consolidated balance sheet:
(1) Included in receivables - other. (2) Included in accounts payable and accrued expenses - other. |
Consolidated Variable Interest Entities
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Variable Interest Entities Disclosure [Text Block] | Consolidated Variable Interest Entities IM Flash IMFT: Since its inception in 2006 through May 30, 2013, we have owned 51% of IMFT, a venture between us and Intel to manufacture NAND Flash memory products and, since the third quarter of 2012, certain emerging memory technologies, for the exclusive use of the members. IMFT is governed by a Board of Managers and the number of managers appointed by each member to the board varies based on the members' respective ownership interests, which is based on cumulative contributions to IMFT. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights, commencing in 2015, pursuant to which Intel may elect to sell to us, or we may elect to purchase from Intel, Intel's interest in IMFT. If Intel elects to sell to us, we would set the closing date of the transaction within two years following such election and could elect to receive financing of the purchase price from Intel for one to two years from the closing date. IMFT manufactures NAND Flash memory products using designs and technology we develop with Intel. We generally share with Intel the cost of product design, other NAND Flash R&D costs and, since the third quarter of 2012, the R&D cost of certain emerging memory technologies. Our R&D expenses were reduced by reimbursements from Intel of $33 million and $99 million for the third quarter and first nine months of 2013, respectively, and $18 million and $60 million for the third quarter and first nine months of 2012, respectively. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets, excluding intercompany balances:
Our ability to access IMFT's cash and investments to finance our other operations is subject to agreement by Intel. Creditors of IMFT have recourse only to its assets and do not have recourse to any other of our assets. IMFS: We partnered with Intel in 2007 to form IM Flash Singapore, LLP ("IMFS") to manufacture NAND Flash memory products for the exclusive use of the members. For the third quarter of 2012, we acquired Intel's remaining interest in IMFS and terminated IMFS' supply agreement with us and Intel. Supply Agreements: IMFT sells products to the joint venture members generally in proportion to their ownership interests at long-term negotiated prices approximating cost. Prior to the third quarter of 2012, IMFS also sold product to us and Intel generally in proportion to our ownership interests at long-term negotiated prices approximating cost. Due to changes in the ownership interest of IMFS, our share of its output grew from 57% at the beginning of the first quarter of 2012 to 78% in the second quarter of 2012. As a result of our acquisition of Intel's remaining interest in IMFS, the termination of IMFT's lease to a portion of our Virginia facility and other IM Flash restructuring agreements with Intel, Intel has not had rights to the output from either IMFS or our Virginia facility since the third quarter of 2012. Subsequent to the third quarter of 2012, we also sell NAND Flash products to Intel under other negotiated arrangements. Aggregate NAND Flash sales to Intel were $258 million and $566 million for the third quarter and first nine months of 2013, respectively, and were $300 million and $816 million for the third quarter and first nine months of 2012, respectively. Receivables from Intel as of May 30, 2013 and August 30, 2012 were $171 million and $103 million, respectively, for sales of NAND Flash products. IM Flash distributions and contributions: The following table presents IM Flash's distributions to and contributions from its shareholders ("IM Flash" includes both IMFT and IMFS prior to April 6, 2012 and includes only IMFT from April 6, 2013 through May 30, 2013):
MP Mask In 2006, we formed a joint venture with Photronics to produce photomasks for leading-edge and advanced next generation semiconductors. At inception through May 30, 2013, we owned 50.01% and Photronics owned 49.99% of MP Mask. For the third quarter and first nine months of 2012, we contributed $13 million and $21 million, respectively, and Photronics contributed $13 million and $20 million, respectively, to MP Mask. In connection with the formation of the joint venture in 2006, we received $72 million in exchange for entering into a license agreement with Photronics, which is being recognized over the term of the 10-year agreement. Deferred income and other noncurrent liabilities included an aggregate of $21 million and $26 million as of May 30, 2013 and August 30, 2012, respectively, related to this agreement. We purchase a substantial majority of the reticles produced by MP Mask pursuant to a supply arrangement. The following table presents the assets and liabilities of MP Mask included in our consolidated balance sheets, excluding intercompany balances:
Creditors of MP Mask have recourse only to the assets of MP Mask and do not have recourse to any other of our assets. |
Investments (Tables)
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Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | As of May 30, 2013 and August 30, 2012, available-for-sale investments, including cash equivalents, were as follows:
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Investments Classified by Contractual Maturity Date [Table Text Block] | The table below presents the amortized cost and fair value of available-for-sale debt securities, including cash equivalents, as of May 30, 2013, by contractual maturity:
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Intangible Assets (Tables)
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Schedule Of Finite Lived Intangible Assets By Major Class |
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Fair Value Measurements - Fair and Carrying Value (Details) (USD $)
In Millions, unless otherwise specified |
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Fair Value [Member] | Level 2 [Member]
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Convertible notes | $ 3,825 | $ 2,669 |
Other notes | 220 | 56 |
Carrying Value [Member]
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Convertible notes | 2,484 | 2,321 |
Other notes | $ 228 | $ 58 |