(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 |
Term | Definition | Term | Definition | |||
2021 MSAC Term Loan | Variable Rate MSAC Senior Secured Term Loan due 2021 | MCP | Multi-Chip Package | |||
2021 MSTW Term Loan | Variable Rate MSTW Senior Secured Term Loan due 2021 | Micron | Micron Technology, Inc. (Parent Company) | |||
2022 Term Loan B | Senior Secured Term Loan B due 2022 | MSTW | Micron Semiconductor Taiwan Co., Ltd. | |||
2032 Notes | 2032C and 2032D Notes | MMJ | Micron Memory Japan, Inc. | |||
2032C Notes | 2.375% Convertible Senior Notes due 2032 | MMJ Companies | MAI and MMJ | |||
2032D Notes | 3.125% Convertible Senior Notes due 2032 | MMJ Group | MMJ and its subsidiaries | |||
2033 Notes | 2033E and 2033F Notes | MMT | Micron Memory Taiwan Co., Ltd. | |||
2033E Notes | 1.625% Convertible Senior Notes due 2033 | Nanya | Nanya Technology Corporation | |||
2033F Notes | 2.125% Convertible Senior Notes due 2033 | Qimonda | Qimonda AG | |||
2043G Notes | 3.00% Convertible Senior Notes due 2043 | R&D | Research and Development | |||
Elpida | Elpida Memory, Inc. | SG&A | Selling, General, and Administration | |||
IMFT | IM Flash Technologies, LLC | SSD | Solid-State Drive | |||
Inotera | Inotera Memories, Inc. | TAIBOR | Taipei Interbank Offered Rate | |||
Intel | Intel Corporation | Tera Probe | Tera Probe, Inc. | |||
Japan Court | Tokyo District Court | VIE | Variable Interest Entity | |||
MAI | Micron Akita, Inc. |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Net sales | $ | 4,648 | $ | 2,934 | $ | 8,618 | $ | 6,284 | ||||||||
Cost of goods sold | 2,944 | 2,355 | 5,903 | 4,856 | ||||||||||||
Gross margin | 1,704 | 579 | 2,715 | 1,428 | ||||||||||||
Selling, general, and administrative | 187 | 175 | 346 | 354 | ||||||||||||
Research and development | 473 | 403 | 943 | 824 | ||||||||||||
Restructure and asset impairments | 4 | 1 | 33 | 16 | ||||||||||||
Other operating (income) expense, net | (4 | ) | 5 | (10 | ) | 7 | ||||||||||
Operating income (loss) | 1,044 | (5 | ) | 1,403 | 227 | |||||||||||
Interest income | 8 | 12 | 15 | 23 | ||||||||||||
Interest expense | (161 | ) | (97 | ) | (300 | ) | (193 | ) | ||||||||
Other non-operating income (expense), net | 34 | (6 | ) | 20 | (10 | ) | ||||||||||
925 | (96 | ) | 1,138 | 47 | ||||||||||||
Income tax (provision) benefit | (38 | ) | (5 | ) | (69 | ) | (1 | ) | ||||||||
Equity in net income (loss) of equity method investees | 7 | 5 | 5 | 64 | ||||||||||||
Net income (loss) | 894 | (96 | ) | 1,074 | 110 | |||||||||||
Net (income) attributable to noncontrolling interests | — | (1 | ) | — | (1 | ) | ||||||||||
Net income (loss) attributable to Micron | $ | 894 | $ | (97 | ) | $ | 1,074 | $ | 109 | |||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | 0.81 | $ | (0.09 | ) | $ | 1.00 | $ | 0.11 | |||||||
Diluted | 0.77 | (0.09 | ) | 0.95 | 0.10 | |||||||||||
Number of shares used in per share calculations | ||||||||||||||||
Basic | 1,099 | 1,036 | 1,070 | 1,035 | ||||||||||||
Diluted | 1,160 | 1,036 | 1,125 | 1,072 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Net income (loss) | $ | 894 | $ | (96 | ) | $ | 1,074 | $ | 110 | |||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Foreign currency translation adjustments | — | 1 | 37 | (89 | ) | |||||||||||
Gain (loss) on derivatives, net | — | 3 | (7 | ) | (1 | ) | ||||||||||
Pension liability adjustments | — | 1 | (1 | ) | (5 | ) | ||||||||||
Gain (loss) on investments, net | — | 1 | (1 | ) | (2 | ) | ||||||||||
Other comprehensive income (loss) | — | 6 | 28 | (97 | ) | |||||||||||
Total comprehensive income (loss) | 894 | (90 | ) | 1,102 | 13 | |||||||||||
Comprehensive (income) attributable to noncontrolling interests | — | (1 | ) | — | (1 | ) | ||||||||||
Comprehensive income (loss) attributable to Micron | $ | 894 | $ | (91 | ) | $ | 1,102 | $ | 12 |
As of | March 2, 2017 | September 1, 2016 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 3,633 | $ | 4,140 | ||||
Short-term investments | 265 | 258 | ||||||
Receivables | 2,891 | 2,068 | ||||||
Inventories | 3,000 | 2,889 | ||||||
Other current assets | 156 | 140 | ||||||
Total current assets | 9,945 | 9,495 | ||||||
Long-term marketable investments | 589 | 414 | ||||||
Equity method investments | 38 | 1,364 | ||||||
Deferred tax assets | 679 | 657 | ||||||
Property, plant, and equipment, net | 19,098 | 14,686 | ||||||
Intangible assets, net | 425 | 464 | ||||||
Goodwill | 1,190 | 104 | ||||||
Other noncurrent assets | 391 | 356 | ||||||
Total assets | $ | 32,355 | $ | 27,540 | ||||
Liabilities and equity | ||||||||
Accounts payable and accrued expenses | $ | 3,801 | $ | 3,879 | ||||
Deferred income | 289 | 200 | ||||||
Current debt | 1,117 | 756 | ||||||
Total current liabilities | 5,207 | 4,835 | ||||||
Long-term debt | 11,308 | 9,154 | ||||||
Other noncurrent liabilities | 677 | 623 | ||||||
Total liabilities | 17,192 | 14,612 | ||||||
Commitments and contingencies | ||||||||
Redeemable convertible notes | 28 | — | ||||||
Micron shareholders' equity | ||||||||
Common stock, $0.10 par value, 3,000 shares authorized, 1,110 shares issued and 1,106 outstanding (1,094 issued and 1,040 outstanding as of September 1, 2016) | 111 | 109 | ||||||
Additional capital | 8,003 | 7,736 | ||||||
Retained earnings | 6,247 | 5,299 | ||||||
Treasury stock, 4 shares held (54 as of September 1, 2016) | (67 | ) | (1,029 | ) | ||||
Accumulated other comprehensive (loss) | (7 | ) | (35 | ) | ||||
Total Micron shareholders' equity | 14,287 | 12,080 | ||||||
Noncontrolling interests in subsidiaries | 848 | 848 | ||||||
Total equity | 15,135 | 12,928 | ||||||
Total liabilities and equity | $ | 32,355 | $ | 27,540 |
Six months ended | March 2, 2017 | March 3, 2016 | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 1,074 | $ | 110 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation expense and amortization of intangible assets | 1,774 | 1,511 | ||||||
Amortization of debt discount and other costs | 63 | 64 | ||||||
Stock-based compensation | 101 | 101 | ||||||
Gain on remeasurement of previously-held equity interest in Inotera | (71 | ) | — | |||||
Equity in net (income) loss of equity method investees | (5 | ) | (64 | ) | ||||
Change in operating assets and liabilities | ||||||||
Receivables | (773 | ) | 542 | |||||
Inventories | 174 | (268 | ) | |||||
Accounts payable and accrued expenses | 399 | (67 | ) | |||||
Payments attributed to intercompany balances with Inotera | (361 | ) | — | |||||
Deferred income taxes, net | 59 | (27 | ) | |||||
Other | 109 | (19 | ) | |||||
Net cash provided by operating activities | 2,543 | 1,883 | ||||||
Cash flows from investing activities | ||||||||
Acquisition of Inotera | (2,634 | ) | — | |||||
Expenditures for property, plant, and equipment | (2,428 | ) | (2,209 | ) | ||||
Purchases of available-for-sale securities | (803 | ) | (679 | ) | ||||
Payments to settle hedging activities | (249 | ) | (66 | ) | ||||
Proceeds from sales and maturities of available-for-sale securities | 620 | 1,950 | ||||||
Proceeds from settlement of hedging activities | 74 | 114 | ||||||
Other | 54 | (136 | ) | |||||
Net cash provided by (used for) investing activities | (5,366 | ) | (1,026 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of debt | 2,961 | 174 | ||||||
Proceeds from issuance of stock under equity plans | 68 | 24 | ||||||
Proceeds from equipment sale-leaseback transactions | — | 424 | ||||||
Repayments of debt | (556 | ) | (519 | ) | ||||
Payments on equipment purchase contracts | (33 | ) | (14 | ) | ||||
Cash paid to acquire treasury stock | (33 | ) | (147 | ) | ||||
Other | (66 | ) | (10 | ) | ||||
Net cash provided by (used for) financing activities | 2,341 | (68 | ) | |||||
Effect of changes in currency exchange rates on cash and equivalents | (25 | ) | 2 | |||||
Net increase (decrease) in cash and equivalents | (507 | ) | 791 | |||||
Cash and equivalents at beginning of period | 4,140 | 2,287 | ||||||
Cash and equivalents at end of period | $ | 3,633 | $ | 3,078 |
Consideration | ||||
Cash paid for Inotera Acquisition | $ | 4,099 | ||
Less cash received from selling Micron Shares | (986 | ) | ||
Net cash paid for Inotera Acquisition | 3,113 | |||
Fair value of our previously-held equity interest in Inotera | 1,441 | |||
Fair value of Micron Shares exchanged for Inotera shares | 995 | |||
Other | 3 | |||
Payments attributed to intercompany balances with Inotera | (361 | ) | ||
$ | 5,191 | |||
Assets acquired and liabilities assumed | ||||
Cash and equivalents | $ | 118 | ||
Inventories | 285 | |||
Other current assets | 27 | |||
Property, plant, and equipment | 3,781 | |||
Deferred tax assets | 74 | |||
Goodwill | 1,086 | |||
Other noncurrent assets | 117 | |||
Accounts payable and accrued expenses | (232 | ) | ||
Debt | (56 | ) | ||
Other noncurrent liabilities | (9 | ) | ||
$ | 5,191 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Net sales | $ | 4,648 | $ | 2,927 | $ | 8,613 | $ | 6,272 | ||||||||
Net income (loss) | 890 | (196 | ) | 1,080 | (48 | ) | ||||||||||
Net income (loss) attributable to Micron | 890 | (197 | ) | 1,080 | (49 | ) | ||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | 0.81 | (0.18 | ) | 0.98 | (0.04 | ) | ||||||||||
Diluted | 0.77 | (0.18 | ) | 0.93 | (0.04 | ) |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||||||||||||||||||||
Cash and Equivalents | Short-term Investments | Long-term Marketable Investments(1) | Total Fair Value | Cash and Equivalents | Short-term Investments | Long-term Marketable Investments(1) | Total Fair Value | |||||||||||||||||||||||||
Cash | $ | 2,744 | $ | — | $ | — | $ | 2,744 | $ | 2,258 | $ | — | $ | — | $ | 2,258 | ||||||||||||||||
Level 1(2) | ||||||||||||||||||||||||||||||||
Money market funds | 306 | — | — | 306 | 1,507 | — | — | 1,507 | ||||||||||||||||||||||||
Level 2(3) | ||||||||||||||||||||||||||||||||
Certificates of deposit | 456 | 9 | 8 | 473 | 373 | 33 | — | 406 | ||||||||||||||||||||||||
Corporate bonds | 13 | 120 | 300 | 433 | — | 142 | 235 | 377 | ||||||||||||||||||||||||
Government securities | 24 | 76 | 106 | 206 | 2 | 62 | 82 | 146 | ||||||||||||||||||||||||
Asset-backed securities | — | 2 | 175 | 177 | — | 12 | 97 | 109 | ||||||||||||||||||||||||
Commercial paper | 90 | 58 | — | 148 | — | 9 | — | 9 | ||||||||||||||||||||||||
$ | 3,633 | $ | 265 | $ | 589 | $ | 4,487 | $ | 4,140 | $ | 258 | $ | 414 | $ | 4,812 |
(1) | The maturities of long-term marketable investments range from one to four years. |
(2) | The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets. |
(3) | The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to such pricing information as of March 2, 2017. |
As of | March 2, 2017 | September 1, 2016 | ||||||
Trade receivables | $ | 2,528 | $ | 1,765 | ||||
Income and other taxes | 125 | 119 | ||||||
Other | 238 | 184 | ||||||
$ | 2,891 | $ | 2,068 |
As of | March 2, 2017 | September 1, 2016 | ||||||
Finished goods | $ | 862 | $ | 899 | ||||
Work in process | 1,833 | 1,761 | ||||||
Raw materials and supplies | 305 | 229 | ||||||
$ | 3,000 | $ | 2,889 |
As of | September 1, 2016 | Additions | Retirements and Other | March 2, 2017 | ||||||||||||
Land | $ | 145 | $ | 205 | $ | (2 | ) | $ | 348 | |||||||
Buildings | 6,653 | 785 | (12 | ) | 7,426 | |||||||||||
Equipment(1) | 25,910 | 5,170 | (254 | ) | 30,826 | |||||||||||
Construction in progress(2) | 475 | (18 | ) | 3 | 460 | |||||||||||
Software | 422 | 11 | (2 | ) | 431 | |||||||||||
33,605 | 6,153 | (267 | ) | 39,491 | ||||||||||||
Accumulated depreciation | (18,919 | ) | (1,720 | ) | 246 | (20,393 | ) | |||||||||
$ | 14,686 | $ | 4,433 | $ | (21 | ) | $ | 19,098 |
(1) | Included costs related to equipment not placed into service of $956 million and $1.47 billion as of March 2, 2017 and September 1, 2016, respectively. |
(2) | Included building-related construction and tool installation costs for assets not placed into service. |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||
Investment Balance | Ownership Percentage | Investment Balance | Ownership Percentage | |||||||||||
Inotera | $ | — | — | % | $ | 1,314 | 33 | % | ||||||
Tera Probe | 23 | 40 | % | 36 | 40 | % | ||||||||
Other | 15 | Various | 14 | Various | ||||||||||
$ | 38 | $ | 1,364 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Inotera | $ | — | $ | 2 | $ | 9 | $ | 54 | ||||||||
Tera Probe | 7 | 3 | (5 | ) | 6 | |||||||||||
Other | — | — | 1 | 4 | ||||||||||||
$ | 7 | $ | 5 | $ | 5 | $ | 64 |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortizing assets | ||||||||||||||||
Product and process technology | $ | 755 | $ | (439 | ) | $ | 757 | $ | (402 | ) | ||||||
Other | 1 | — | 1 | — | ||||||||||||
756 | (439 | ) | 758 | (402 | ) | |||||||||||
Non-amortizing assets | ||||||||||||||||
In-process R&D | 108 | — | 108 | — | ||||||||||||
Total intangible assets | $ | 864 | $ | (439 | ) | $ | 866 | $ | (402 | ) | ||||||
Goodwill | $ | 1,190 | $ | 104 |
As of | March 2, 2017 | September 1, 2016 | ||||||
Accounts payable | $ | 1,380 | $ | 1,186 | ||||
Property, plant, and equipment payables | 1,378 | 1,649 | ||||||
Salaries, wages, and benefits | 447 | 289 | ||||||
Customer advances | 153 | 132 | ||||||
Income and other taxes | 117 | 41 | ||||||
Related party payables | 7 | 273 | ||||||
Other | 319 | 309 | ||||||
$ | 3,801 | $ | 3,879 |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||||||||||||||||||
Stated Rate | Effective Rate | Current | Long-Term | Total | Current | Long-Term | Total | |||||||||||||||||||||||
MMJ creditor installment payments | N/A | 6.52 | % | $ | 148 | $ | 446 | $ | 594 | $ | 189 | $ | 680 | $ | 869 | |||||||||||||||
Capital lease obligations | N/A | 3.42 | % | 349 | 914 | 1,263 | 380 | 1,026 | 1,406 | |||||||||||||||||||||
2021 MSAC senior secured term loan | 3.464 | % | 3.87 | % | — | 445 | 445 | — | — | — | ||||||||||||||||||||
2021 MSTW senior secured term loan | 2.852 | % | 3.02 | % | — | 2,584 | 2,584 | — | — | — | ||||||||||||||||||||
2022 senior notes | 5.875 | % | 6.14 | % | — | 591 | 591 | — | 590 | 590 | ||||||||||||||||||||
2022 senior secured term loan B | 4.540 | % | 4.95 | % | 5 | 728 | 733 | 5 | 730 | 735 | ||||||||||||||||||||
2023 senior notes | 5.250 | % | 5.43 | % | — | 990 | 990 | — | 990 | 990 | ||||||||||||||||||||
2023 senior secured notes | 7.500 | % | 7.69 | % | — | 1,238 | 1,238 | — | 1,237 | 1,237 | ||||||||||||||||||||
2024 senior notes | 5.250 | % | 5.38 | % | — | 546 | 546 | — | 546 | 546 | ||||||||||||||||||||
2025 senior notes | 5.500 | % | 5.56 | % | — | 1,140 | 1,140 | — | 1,139 | 1,139 | ||||||||||||||||||||
2026 senior notes | 5.625 | % | 5.73 | % | — | 446 | 446 | — | 446 | 446 | ||||||||||||||||||||
2032C convertible senior notes(1) | 2.375 | % | 5.95 | % | — | 207 | 207 | — | 204 | 204 | ||||||||||||||||||||
2032D convertible senior notes(1) | 3.125 | % | 6.33 | % | — | 156 | 156 | — | 154 | 154 | ||||||||||||||||||||
2033E convertible senior notes(1) | 1.625 | % | 4.50 | % | 171 | — | 171 | — | 168 | 168 | ||||||||||||||||||||
2033F convertible senior notes(1) | 2.125 | % | 4.93 | % | 274 | — | 274 | — | 271 | 271 | ||||||||||||||||||||
2043G convertible senior notes | 3.000 | % | 6.76 | % | — | 664 | 664 | — | 657 | 657 | ||||||||||||||||||||
Other notes payable | 2.189 | % | 2.59 | % | 170 | 213 | 383 | 182 | 316 | 498 | ||||||||||||||||||||
$ | 1,117 | $ | 11,308 | $ | 12,425 | $ | 756 | $ | 9,154 | $ | 9,910 |
(1) | Since the closing price of our common stock exceeded 130% of the conversion price per share for at least 20 trading days in the 30 trading day period ended on December 31, 2016, these notes are convertible by the holders through the calendar quarter ending March 31, 2017. The 2033 Notes were classified as current as of March 2, 2017 because the terms of these notes require us to pay cash for the principal amount of any converted notes and holders of these notes had the right to convert their notes as of that date. |
• | MSTW must maintain a consolidated ratio of total debt to adjusted EBITDA not higher than 5.5x in 2017 and 2018, and not higher than 4.5x in 2019 through 2021; |
• | MSTW must maintain adjusted consolidated tangible net worth of not less than 4.0 billion New Taiwan dollars in 2017 and 2018, not less than 6.5 billion New Taiwan dollars in 2019 and 2020, and not less than 12.0 billion New Taiwan dollars in 2021; |
• | on a consolidated basis, Micron must maintain a ratio of total debt to adjusted EBITDA not higher than 3.5x in 2017, not higher than 3.0x in 2018 and 2019, and not higher than 2.5x in 2020 and 2021; and |
• | on a consolidated basis, Micron must maintain adjusted tangible net worth not less than $9.0 billion in 2017, not less than $12.5 billion in 2018 and 2019, and not less than $16.5 billion in 2020 and 2021. |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||
Noncontrolling Interest Balance | Noncontrolling Interest Percentage | Noncontrolling Interest Balance | Noncontrolling Interest Percentage | |||||||||||
IMFT | $ | 832 | 49 | % | $ | 832 | 49 | % | ||||||
Other | 16 | Various | 16 | Various | ||||||||||
$ | 848 | $ | 848 |
As of | March 2, 2017 | September 1, 2016 | ||||||
Assets | ||||||||
Cash and equivalents | $ | 94 | $ | 98 | ||||
Receivables | 103 | 89 | ||||||
Inventories | 102 | 68 | ||||||
Other current assets | 6 | 6 | ||||||
Total current assets | 305 | 261 | ||||||
Property, plant, and equipment, net | 1,680 | 1,792 | ||||||
Other noncurrent assets | 42 | 50 | ||||||
Total assets | $ | 2,027 | $ | 2,103 | ||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 151 | $ | 175 | ||||
Deferred income | 6 | 7 | ||||||
Current debt | 16 | 16 | ||||||
Total current liabilities | 173 | 198 | ||||||
Long-term debt | 37 | 66 | ||||||
Other noncurrent liabilities | 91 | 94 | ||||||
Total liabilities | $ | 301 | $ | 358 |
As of | March 2, 2017 | September 1, 2016 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||
Notes and MMJ creditor installment payments | $ | 10,092 | $ | 9,690 | $ | 7,257 | $ | 7,050 | ||||||||
Convertible notes | 3,191 | 1,472 | 2,408 | 1,454 |
Notional Amount (in U.S. Dollars) | Fair Value | |||||||||||||||
Current Assets(1) | Current Liabilities(2) | Noncurrent Liabilities(3) | ||||||||||||||
As of March 2, 2017 | ||||||||||||||||
New Taiwan dollar | $ | 2,855 | $ | 57 | $ | (2 | ) | $ | — | |||||||
Yen | 1,033 | — | (12 | ) | (4 | ) | ||||||||||
Euro | 151 | — | (1 | ) | — | |||||||||||
Singapore dollar | 134 | — | (1 | ) | — | |||||||||||
Other | 20 | — | — | — | ||||||||||||
$ | 4,193 | $ | 57 | $ | (16 | ) | $ | (4 | ) | |||||||
As of September 1, 2016 | ||||||||||||||||
Yen | $ | 1,668 | $ | — | $ | (10 | ) | $ | — | |||||||
Euro | 93 | — | — | — | ||||||||||||
Singapore dollar | 206 | — | — | — | ||||||||||||
Other | 85 | — | (1 | ) | — | |||||||||||
$ | 2,052 | $ | — | $ | (11 | ) | $ | — |
(1) | Included in receivables – other. |
(2) | Included in accounts payable and accrued expenses – other. |
(3) | Included in other noncurrent liabilities. |
Notional Amount (in U.S. Dollars) | Fair Value | |||||||||||
Current Assets(1) | Current Liabilities(2) | |||||||||||
As of March 2, 2017 | ||||||||||||
Yen | $ | 6 | $ | — | $ | — | ||||||
Euro | 6 | — | — | |||||||||
$ | 12 | $ | — | $ | — | |||||||
As of September 1, 2016 | ||||||||||||
Yen | $ | 107 | $ | 2 | $ | (1 | ) | |||||
Euro | 65 | — | (1 | ) | ||||||||
$ | 172 | $ | 2 | $ | (2 | ) |
(1) | Included in receivables – other. |
(2) | Included in accounts payable and accrued expenses – other. |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Stock options granted | 4 | 5 | 6 | 7 | ||||||||||||
Weighted-average grant-date fair value per share | $ | 8.37 | $ | 6.59 | $ | 8.15 | $ | 7.01 | ||||||||
Average expected life in years | 5.5 | 5.5 | 5.5 | 5.5 | ||||||||||||
Weighted-average expected volatility | 47 | % | 47 | % | 47 | % | 47 | % | ||||||||
Weighted-average risk-free interest rate | 1.9 | % | 1.7 | % | 1.8 | % | 1.7 | % | ||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Restricted stock awards granted | 5 | 6 | 8 | 9 | ||||||||||||
Weighted-average grant-date fair value per share | $ | 18.67 | $ | 14.71 | $ | 18.52 | $ | 15.84 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Stock-based compensation expense by caption | ||||||||||||||||
Cost of goods sold | $ | 23 | $ | 19 | $ | 42 | $ | 37 | ||||||||
Selling, general, and administrative | 18 | 21 | 33 | 38 | ||||||||||||
Research and development | 14 | 15 | 26 | 26 | ||||||||||||
$ | 55 | $ | 55 | $ | 101 | $ | 101 | |||||||||
Stock-based compensation expense by type of award | ||||||||||||||||
Stock options | $ | 18 | $ | 22 | $ | 35 | $ | 42 | ||||||||
Restricted stock awards | 37 | 33 | 66 | 59 | ||||||||||||
$ | 55 | $ | 55 | $ | 101 | $ | 101 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
2016 Restructuring Plan | $ | 4 | $ | — | $ | 33 | $ | — | ||||||||
Other | — | 1 | — | 16 | ||||||||||||
$ | 4 | $ | 1 | $ | 33 | $ | 16 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Loss from changes in currency exchange rates | $ | (28 | ) | $ | (5 | ) | $ | (40 | ) | $ | (8 | ) | ||||
Gain on remeasurement of previously-held equity interest in Inotera | 71 | — | 71 | — | ||||||||||||
Other | (9 | ) | (1 | ) | (11 | ) | (2 | ) | ||||||||
$ | 34 | $ | (6 | ) | $ | 20 | $ | (10 | ) |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Utilization of and other changes in net deferred tax assets of MMJ, MMT, and Inotera | $ | (8 | ) | $ | (10 | ) | $ | (21 | ) | $ | (32 | ) | ||||
U.S. valuation allowance release resulting from business acquisition | — | — | — | 41 | ||||||||||||
Other, income tax (provision) benefit, primarily other non-U.S. operations | (30 | ) | 5 | (48 | ) | (10 | ) | |||||||||
$ | (38 | ) | $ | (5 | ) | $ | (69 | ) | $ | (1 | ) |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Net income (loss) available to Micron – Basic and Diluted | $ | 894 | $ | (97 | ) | $ | 1,074 | $ | 109 | |||||||
Weighted-average common shares outstanding – Basic | 1,099 | 1,036 | 1,070 | 1,035 | ||||||||||||
Dilutive effect of equity plans and convertible notes | 61 | — | 55 | 37 | ||||||||||||
Weighted-average common shares outstanding – Diluted | 1,160 | 1,036 | 1,125 | 1,072 | ||||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | 0.81 | $ | (0.09 | ) | $ | 1.00 | $ | 0.11 | |||||||
Diluted | 0.77 | (0.09 | ) | 0.95 | 0.10 |
Quarter ended | Six months ended | |||||||||||||||
March 2, 2017 | March 3, 2016 | March 2, 2017 | March 3, 2016 | |||||||||||||
Net sales | ||||||||||||||||
CNBU | $ | 1,917 | $ | 1,053 | $ | 3,387 | $ | 2,192 | ||||||||
MBU | 1,082 | 503 | 2,114 | 1,337 | ||||||||||||
SBU | 1,041 | 901 | 1,901 | 1,785 | ||||||||||||
EBU | 590 | 460 | 1,168 | 939 | ||||||||||||
All Other | 18 | 17 | 48 | 31 | ||||||||||||
$ | 4,648 | $ | 2,934 | $ | 8,618 | $ | 6,284 | |||||||||
Operating income | ||||||||||||||||
CNBU | $ | 736 | $ | (33 | ) | $ | 940 | $ | 7 | |||||||
MBU | 170 | (10 | ) | 259 | 138 | |||||||||||
SBU | 71 | (3 | ) | 26 | (17 | ) | ||||||||||
EBU | 193 | 96 | 371 | 217 | ||||||||||||
All Other | 7 | 5 | 19 | 8 | ||||||||||||
1,177 | 55 | 1,615 | 353 | |||||||||||||
Unallocated | ||||||||||||||||
Flow-through of Inotera inventory step up | (60 | ) | — | (60 | ) | — | ||||||||||
Stock-based compensation | (55 | ) | (55 | ) | (101 | ) | (101 | ) | ||||||||
Restructure and asset impairments | (4 | ) | (1 | ) | (33 | ) | (16 | ) | ||||||||
Other | (14 | ) | (4 | ) | (18 | ) | (9 | ) | ||||||||
(133 | ) | (60 | ) | (212 | ) | (126 | ) | |||||||||
Operating income (loss) | $ | 1,044 | $ | (5 | ) | $ | 1,403 | $ | 227 |
• | Overview: Overview of our operations, business, and highlights of key 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 financial condition and liquidity. |
• | Recently Adopted and Issued Accounting Standards |
Second Quarter | First Quarter | Six Months | |||||||||||||||||||||||||||||||||
2017 | % of Net Sales | 2016 | % of Net Sales | 2017 | % of Net Sales | 2017 | % of Net Sales | 2016 | % of Net Sales | ||||||||||||||||||||||||||
Net sales | $ | 4,648 | 100 | % | $ | 2,934 | 100 | % | $ | 3,970 | 100 | % | $ | 8,618 | 100 | % | $ | 6,284 | 100 | % | |||||||||||||||
Cost of goods sold | 2,944 | 63 | % | 2,355 | 80 | % | 2,959 | 75 | % | 5,903 | 68 | % | 4,856 | 77 | % | ||||||||||||||||||||
Gross margin | 1,704 | 37 | % | 579 | 20 | % | 1,011 | 25 | % | 2,715 | 32 | % | 1,428 | 23 | % | ||||||||||||||||||||
SG&A | 187 | 4 | % | 175 | 6 | % | 159 | 4 | % | 346 | 4 | % | 354 | 6 | % | ||||||||||||||||||||
R&D | 473 | 10 | % | 403 | 14 | % | 470 | 12 | % | 943 | 11 | % | 824 | 13 | % | ||||||||||||||||||||
Restructure and asset impairments | 4 | — | % | 1 | — | % | 29 | 1 | % | 33 | — | % | 16 | — | % | ||||||||||||||||||||
Other operating (income) expense, net | (4 | ) | — | % | 5 | — | % | (6 | ) | — | % | (10 | ) | — | % | 7 | — | % | |||||||||||||||||
Operating income (loss) | 1,044 | 22 | % | (5 | ) | — | % | 359 | 9 | % | 1,403 | 16 | % | 227 | 4 | % | |||||||||||||||||||
Interest income (expense), net | (153 | ) | (3 | )% | (85 | ) | (3 | )% | (132 | ) | (3 | )% | (285 | ) | (3 | )% | (170 | ) | (3 | )% | |||||||||||||||
Other non-operating income (expense), net | 34 | 1 | % | (6 | ) | — | % | (14 | ) | — | % | 20 | — | % | (10 | ) | — | % | |||||||||||||||||
Income tax (provision) benefit | (38 | ) | (1 | )% | (5 | ) | — | % | (31 | ) | (1 | )% | (69 | ) | (1 | )% | (1 | ) | — | % | |||||||||||||||
Equity in net income (loss) of equity method investees | 7 | — | % | 5 | — | % | (2 | ) | — | % | 5 | — | % | 64 | 1 | % | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | % | (1 | ) | — | % | — | — | % | — | — | % | (1 | ) | — | % | ||||||||||||||||||
Net income (loss) attributable to Micron | $ | 894 | 19 | % | $ | (97 | ) | (3 | )% | $ | 180 | 5 | % | $ | 1,074 | 12 | % | $ | 109 | 2 | % |
Second Quarter | First Quarter | Six Months | |||||||||||||||||||||||||||||||||
2017 | % of Total | 2016 | % of Total | 2017 | % of Total | 2017 | % of Total | 2016 | % of Total | ||||||||||||||||||||||||||
CNBU | $ | 1,917 | 41 | % | $ | 1,053 | 36 | % | $ | 1,470 | 37 | % | $ | 3,387 | 39 | % | $ | 2,192 | 35 | % | |||||||||||||||
MBU | 1,082 | 23 | % | 503 | 17 | % | 1,032 | 26 | % | 2,114 | 25 | % | 1,337 | 21 | % | ||||||||||||||||||||
SBU | 1,041 | 22 | % | 901 | 31 | % | 860 | 22 | % | 1,901 | 22 | % | 1,785 | 28 | % | ||||||||||||||||||||
EBU | 590 | 13 | % | 460 | 16 | % | 578 | 15 | % | 1,168 | 14 | % | 939 | 15 | % | ||||||||||||||||||||
All Other | 18 | — | % | 17 | 1 | % | 30 | 1 | % | 48 | 1 | % | 31 | — | % | ||||||||||||||||||||
$ | 4,648 | $ | 2,934 | $ | 3,970 | $ | 8,618 | $ | 6,284 |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 1,917 | $ | 1,053 | $ | 1,470 | $ | 3,387 | $ | 2,192 | ||||||||||
Operating income (loss) | 736 | (33 | ) | 204 | 940 | 7 |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 1,082 | $ | 503 | $ | 1,032 | $ | 2,114 | $ | 1,337 | ||||||||||
Operating income (loss) | 170 | (10 | ) | 89 | 259 | 138 |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 1,041 | $ | 901 | $ | 860 | $ | 1,901 | $ | 1,785 | ||||||||||
Operating income (loss) | 71 | (3 | ) | (45 | ) | 26 | (17 | ) |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 590 | $ | 460 | $ | 578 | $ | 1,168 | $ | 939 | ||||||||||
Operating income | 193 | 96 | 178 | 371 | 217 |
Second Quarter | First Quarter | Six Months | |||||||||||||||||||||||||||||||||
2017 | % of Total | 2016 | % of Total | 2017 | % of Total | 2017 | % of Total | 2016 | % of Total | ||||||||||||||||||||||||||
DRAM | $ | 2,960 | 64 | % | $ | 1,588 | 54 | % | $ | 2,421 | 61 | % | $ | 5,381 | 62 | % | $ | 3,533 | 56 | % | |||||||||||||||
Non-Volatile Memory | |||||||||||||||||||||||||||||||||||
Trade | 1,412 | 30 | % | 1,074 | 37 | % | 1,272 | 32 | % | 2,684 | 31 | % | 2,217 | 35 | % | ||||||||||||||||||||
Non-Trade | 158 | 3 | % | 126 | 4 | % | 123 | 3 | % | 281 | 3 | % | 252 | 4 | % | ||||||||||||||||||||
Other | 118 | 3 | % | 146 | 5 | % | 154 | 4 | % | 272 | 3 | % | 282 | 4 | % | ||||||||||||||||||||
$ | 4,648 | $ | 2,934 | $ | 3,970 | $ | 8,618 | $ | 6,284 |
Second Quarter 2017 Versus | First Six Months 2017 Versus | ||||||||
First Quarter | Second Quarter | First Six Months | |||||||
2017 | 2016 | 2016 | |||||||
(percentage change from period indicated) | |||||||||
Net sales | 22 | % | 86 | % | 52 | % | |||
Average selling prices per gigabit | 21 | % | 7 | % | (8 | )% | |||
Gigabits sold | 1 | % | 75 | % | 66 | % | |||
Cost per gigabit | (3 | )% | (23 | )% | (22 | )% |
Second Quarter 2017 Versus | First Six Months 2017 Versus | ||||||||
First Quarter | Second Quarter | First Six Months | |||||||
2017 | 2016 | 2016 | |||||||
(percentage change from period indicated) | |||||||||
Sales to trade customers | |||||||||
Net sales | 11 | % | 31 | % | 21 | % | |||
Average selling prices per gigabit | (6 | )% | (12 | )% | (16 | )% | |||
Gigabits sold | 18 | % | 49 | % | 45 | % | |||
Cost per gigabit | (15 | )% | (24 | )% | (22 | )% |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Utilization of and other changes in net deferred tax assets of MMJ, MMT, and Inotera | $ | (8 | ) | $ | (10 | ) | $ | (13 | ) | $ | (21 | ) | $ | (32 | ) | |||||
U.S. valuation allowance release resulting from business acquisition | — | — | — | — | 41 | |||||||||||||||
Other, income tax (provision) benefit, primarily other non-U.S. operations | (30 | ) | 5 | (18 | ) | (48 | ) | (10 | ) | |||||||||||
$ | (38 | ) | $ | (5 | ) | $ | (31 | ) | $ | (69 | ) | $ | (1 | ) | ||||||
Effective tax rate | 4.1 | % | 5.2 | % | 14.6 | % | 6.1 | % | 2.1 | % |
• | operations in tax jurisdictions, including Singapore and Taiwan, where our earnings are indefinitely reinvested and the tax rates are significantly lower than the U.S. statutory rate; |
• | operations outside the U.S., including Singapore, where we have tax incentive arrangements that further decrease our effective tax rates; |
• | exclusion of certain jurisdictions from the consolidated effective tax rate computations for instances where no benefit is recorded on forecasted losses; and |
• | a valuation allowance against substantially all of our U.S. net deferred tax assets. |
Second Quarter | First Quarter | Six Months | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Inotera | $ | — | $ | 2 | $ | 9 | $ | 9 | $ | 54 | ||||||||||
Tera Probe | 7 | 3 | (12 | ) | (5 | ) | 6 | |||||||||||||
Other | — | — | 1 | 1 | 4 | |||||||||||||||
$ | 7 | $ | 5 | $ | (2 | ) | $ | 5 | $ | 64 |
• | Equity Plans |
• | Restructure and Asset Impairments |
• | Other Non-Operating Income (Expense), Net |
As of | March 2, 2017 | September 1, 2016 | ||||||
Cash and equivalents and short-term investments | $ | 3,898 | $ | 4,398 | ||||
Long-term marketable investments | 589 | 414 |
• | MSTW must maintain a consolidated ratio of total debt to adjusted EBITDA not higher than 5.5x in 2017 and 2018, and not higher than 4.5x in 2019 through 2021; |
• | MSTW must maintain adjusted consolidated tangible net worth of not less than 4.0 billion New Taiwan dollars in 2017 and 2018, not less than 6.5 billion New Taiwan dollars in 2019 and 2020, and not less than 12.0 billion New Taiwan dollars in 2021; |
• | on a consolidated basis, Micron must maintain a ratio of total debt to adjusted EBITDA not higher than 3.5x in 2017, not higher than 3.0x in 2018 and 2019, and not higher than 2.5x in 2020 and 2021; and |
• | on a consolidated basis, Micron must maintain adjusted tangible net worth not less than $9.0 billion in 2017, not less than $12.5 billion in 2018 and 2019, and not less than $16.5 billion in 2020 and 2021. |
First Six Months | ||||||||
2017 | 2016 | |||||||
Net cash provided by operating activities | $ | 2,543 | $ | 1,883 | ||||
Net cash provided by (used for) investing activities | (5,366 | ) | (1,026 | ) | ||||
Net cash provided by (used for) financing activities | 2,341 | (68 | ) | |||||
Effect of changes in currency exchange rates on cash and equivalents | (25 | ) | 2 | |||||
Net increase (decrease) in cash and equivalents | $ | (507 | ) | $ | 791 |
Settlement Option for | If Settled With Minimum Cash Required | If Settled Entirely With Cash | ||||||||||||||||
Principal Amount | Amount in Excess of Principal | Underlying Shares | Cash | Remainder in Shares | Cash | |||||||||||||
2032C Notes | Cash and/or shares | Cash and/or shares | 23 | $ | — | 23 | $ | 574 | ||||||||||
2032D Notes | Cash and/or shares | Cash and/or shares | 18 | — | 18 | 438 | ||||||||||||
2033E Notes | Cash | Cash and/or shares | 16 | 176 | 9 | 397 | ||||||||||||
2033F Notes | Cash | Cash and/or shares | 27 | 297 | 15 | 672 | ||||||||||||
84 | $ | 473 | 65 | $ | 2,081 |
Payments Due by Period | ||||||||||||||||||||||||||||
As of March 2, 2017 | Total | Remainder of 2017 | 2018 | 2019 | 2020 | 2021 | 2022 and Thereafter | |||||||||||||||||||||
Notes payable(1)(2) | $ | 14,689 | $ | 332 | $ | 1,039 | $ | 1,529 | $ | 2,105 | $ | 1,562 | $ | 8,122 | ||||||||||||||
Capital lease obligations(2) | 1,400 | 202 | 372 | 313 | 215 | 87 | 211 | |||||||||||||||||||||
Operating leases(3) | 146 | 14 | 26 | 25 | 20 | 17 | 44 | |||||||||||||||||||||
Total | $ | 16,235 | $ | 548 | $ | 1,437 | $ | 1,867 | $ | 2,340 | $ | 1,666 | $ | 8,377 |
(1) | Amounts include MMJ Creditor Installment Payments, convertible notes, and other notes. Any future redemptions, repurchases, or conversions of debt could impact the amount and timing of our cash payments. |
(2) | Amounts include principal and interest. |
(3) | Amounts include contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year. |
DRAM | Trade Non-Volatile | |||||
(percentage change in average selling prices) | ||||||
2016 from 2015 | (35 | )% | (20 | )% | ||
2015 from 2014 | (11 | )% | (17 | )% | ||
2014 from 2013 | 6 | % | (23 | )% | ||
2013 from 2012 | (11 | )% | (18 | )% | ||
2012 from 2011 | (45 | )% | (55 | )% |
• | 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, R&D expenditures, and other business activities; |
• | result in certain of our debt instruments being accelerated to be immediately due and payable or being deemed to be in default if certain terms of default are triggered under cross-default and/or cross-acceleration provisions; |
• | result in all obligations owing under the 2021 MSTW Term Loan being accelerated to be immediately due and payable if our MSTW subsidiary fails to comply with financial covenants; |
• | increase the interest rate under the 2021 MSTW Term Loan if we or MSTW fails to maintain certain financial covenants; |
• | adversely impact our credit rating, which could increase future borrowing costs; |
• | limit our future ability to raise funds for capital expenditures, strategic acquisitions or business opportunities, R&D, and other general corporate requirements; |
• | restrict our ability to incur indebtedness, create or incur certain liens, and enter into sale-leaseback financing transactions; |
• | increase our vulnerability to adverse economic and semiconductor memory industry conditions; |
• | increase our exposure to interest rate risk from variable rate indebtedness; |
• | continue to dilute our earnings per share as a result of the conversion provisions in our convertible notes; and |
• | require us to continue to pay cash amounts substantially in excess of the principal amounts upon settlement of our convertible notes to minimize dilution of our earnings per share. |
• | we may be unable to realize the anticipated financial benefits of the acquisition; |
• | increased exposure to the DRAM market, which has historically experienced significant declines in pricing; |
• | increased leverage resulting from the transaction; |
• | higher capital expenditures in future periods; |
• | increased exposure to operating costs denominated in New Taiwan dollars; |
• | changed relationship with Nanya and its affiliated companies; |
• | effectiveness of internal controls and disclosure controls and procedures; |
• | effectiveness of environmental, health and safety, anti-corruption, human resource, or other policies or practices; |
• | integration issues with Inotera's manufacturing operations in Taiwan; and |
• | integration of business systems and processes. |
• | 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. |
• | we may be required to compensate customers for costs incurred or damages caused by defective or incompatible product and to 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. |
• | 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; |
• | our joint venture partners' products may compete with our products; |
• | 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 our equity method investments; |
• | 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, we and our partners may not participate to the same extent on funding capital investments in our joint ventures; |
• | 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. |
• | 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, R&D expenditures, and other business activities; |
• | diverting management's attention from 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. |
• | suspension of production; |
• | remediation costs; |
• | alteration of our manufacturing processes; |
• | regulatory penalties, fines, and legal liabilities; and |
• | reputational challenges. |
• | export and import duties, changes to import and export regulations, customs regulations and processes, and restrictions on the transfer of funds; |
• | compliance with U.S. and international laws involving international operations, including the Foreign Corrupt Practices Act, export and import laws, and similar rules and regulations; |
• | theft of intellectual property; |
• | 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 | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares (or units) purchased as part of publicly announced plans or programs | (d) Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs | ||||||||||||
December 2, 2016 | – | January 5, 2017 | 3,701,568 | $ | 18.15 | — | $ | 294,184,917 | ||||||||
January 6, 2017 | – | February 2, 2017 | — | — | — | 294,184,917 | ||||||||||
February 3, 2017 | – | March 2, 2017 | — | — | — | 294,184,917 | ||||||||||
3,701,568 | — | — |
Exhibit Number | Description of Exhibit | |
3.1 | Restated Certificate of Incorporation of the Registrant (1) | |
3.2 | Bylaws of the Registrant, Amended and Restated (2) | |
4.26 | Supplemental Indenture, dated as of January 19, 2017, by and between Micron Technology, Inc. and U.S. Bank National Association, as trustee | |
4.27 | Supplemental Indenture, dated as of January 19, 2017, by and between Micron Technology, Inc. and U.S. Bank National Association, as trustee | |
10.8 | Amended and Restated 2007 Equity Incentive Plan (3) | |
10.49* | Second Amended and Restated Supply Agreement, dated February 10, 2017, by and among Micron Technology, Inc., Intel Corporation and Micron Semiconductor Asia Pte. Ltd. | |
10.50* | Amended and Restated Supplemental Wafer Supply Agreement, dated February 10, 2017, by and among Micron Technology, Inc., Intel Corporation and Micron Semiconductor Asia Pte. Ltd. | |
10.51* | Amended and Restated Wafer Supply Agreement No. 3 dated, February 10, 2017, by and among Micron Technology, Intel Corporation and Micron Semiconductor Asia Pte. Ltd. | |
10.64 | Deferred Compensation Plan | |
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 |
Micron Technology, Inc. | ||
(Registrant) | ||
Date: | March 28, 2017 | /s/ Ernest E. Maddock |
Ernest E. Maddock Chief Financial Officer and Vice President, Finance (Principal Financial and Accounting Officer) |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | ||
By: | /s/ Paula Oswald | |
Name: Paula Oswald | ||
Title:Vice President | ||
MICRON TECHNOLOGY, INC. | ||
By: | /s/ Don Whitt | |
Name: Don Whitt | ||
Title: Vice President, Tax and Treasury |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | ||
By: | /s/ Paula Oswald | |
Name: Paula Oswald | ||
Title: Vice President | ||
MICRON TECHNOLOGY, INC. | ||
By: | /s/ Don Whitt | |
Name: Don Whitt | ||
Title: Vice President, Tax and Treasury |
INTEL CORPORATION | ||
By: | /s/ Brian Krzanich | |
Name: Title: | Brian Krzanich Chief Executive Officer | |
MICRON SEMICONDUCTOR ASIA PTE. LTD. | ||
By: | /s/ Wayne Allan | |
Name: Title: | Wayne Allan Managing Director | |
MICRON TECHNOLOGY, INC. | ||
By: | /s/ D. Mark Durcan | |
Name: Title: | D. Mark Durcan Chief Executive Officer |
(a) | With respect to Base Run at Risk Probed Wafers of [***], Final Price equals: (i) the total of [***] Costs [***] for [***]; (ii) plus [***] the amount [***]; and (iii) which such [***] is then [***]. |
(b) | With respect to Qualified Probed Wafers and Incremental Run at Risk Probed Wafers of [***], Final Price equals: (i) the total of [***] Costs [***] for [***]; (ii) plus [***] the amount [***]; and (iii) which such [***] is then [***]. |
(c) | With respect to Pre-Qualified Probed Wafers, Final Price equals the [***] as contemplated in Section 4.5(a). |
(d) | With respect to each Foregone Wafer, Final Price equals: (i) the total [***] Costs [***] in which such Foregone Wafer [***]; (ii) plus [***] the amount [***]; and (iii) which such [***] is then [***]. Foregone Wafers will be deemed to exist (and will be invoiced) [***], subject to Section 3.1 (b), [***]. |
INTEL CORPORATION | ||
By: | /s/ Brian Krzanich | |
Name: Title: | Brian Krzanich Chief Executive Officer | |
MICRON SEMICONDUCTOR ASIA PTE. LTD. | ||
By: | /s/ Wayne Allan | |
Name: Title: | Wayne Allan Managing Director | |
MICRON TECHNOLOGY, INC. | ||
By: | /s/ D. Mark Durcan | |
Name: Title: | D. Mark Durcan Chief Executive Officer |
▪ | Each[***] beginning on the Start Date and ending [***] after the Start Date, [***] Qualified Probed Wafers [***]. |
▪ | Beginning [***] after the Start Date and ending on the one-year anniversary of the Start Date, [***] Qualified Probed Wafers. |
A. | Intel desires to purchase and Micron desires to supply [***] WOPW of Probed Wafers for a one-year period. |
B. | Under the [***] Letter Agreement dated as of the Effective Date, by and among Intel, MSA and MTI (the “[***] Letter Agreement”), the Parties desire that a certain payment from Intel to Micron be made to address certain startup costs associated with the manufacture of [***] Products at the Singapore Fab. |
C. | Under the Amended and Restated Deposit Agreement entered into as of February 10, 2017, by and among Intel and MTI (the “Deposit Agreement”), Intel has agreed to make with Micron a refundable deposit against Intel’s payment obligations in accordance with Section 2.3 of the Deposit Agreement. |
INTEL CORPORATION | ||
By: | /s/ Brian Krzanich | |
Name: Title: | Brian Krzanich Chief Executive Officer | |
MICRON SEMICONDUCTOR ASIA PTE. LTD. | ||
By: | /s/ Wayne Allan | |
Name: Title: | Wayne Allan Managing Director | |
MICRON TECHNOLOGY, INC. | ||
By: | /s/ D. Mark Durcan | |
Name: Title: | D. Mark Durcan Chief Executive Officer |
1.1 | Purpose. The purpose of the Plan is to provide Eligible Employees an opportunity to defer to a future date the receipt of base and bonus compensation for services performed for the Employer. |
1.2 | Effective Date. The Effective Date of the Plan is March 1, 2017. |
2.1 | “Account” means an account established for the purpose of recording amounts credited on behalf of a Participant and any income, expenses, gains, losses or distributions included thereon. The Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant or to the Participant’s Beneficiary pursuant to the Plan. |
2.2 | “Administrator” means, unless otherwise determined by the Plan Sponsor, the Micron Technology, Inc. Retirement at Micron (RAM) Committee. |
2.3 | “Base Compensation” means the Participant’s base rate of compensation (including regular compensation, holiday, vacation, personal and sick pay) payable for services performed for the Employer for the Plan Year, as adjusted to reflect increases and decreases to the base rate during the Plan Year. |
2.4 | “Beneficiary” means the persons, trusts, estates or other entities entitled under Section 8.2 to receive benefits under the Plan upon the death of a Participant. |
2.5 | “Board” or “Board of Directors” means the Board of Directors of the Plan Sponsor. |
2.6 | “Bonus Compensation” means the Participant’s bonus or incentive compensation payable for services performed for the Employer for the Plan Year pursuant to, among others designated by the Employer, the Micron Technology, Inc. Executive Incentive Plan, the Micron Technology, Inc. Annual Incentive Plan, the Micron Technology, Inc. Incentive Pay Plan and/or the Micron Technology, Inc. Sales and Field Application Engineer FAE Variable Incentive Plan. |
2.7 | “Change in Control” means the occurrence of an event involving the Plan Sponsor that is described in Section 9.6. |
2.8 | “Code” means the Internal Revenue Code of 1986, as amended. |
2.9 | “Compensation” means Base Compensation, Bonus Compensation and/or Performance-Based Compensation. |
2.10 | “Disability” means a determination by the Administrator that the Participant is either (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Employer. A Participant will be considered to have incurred a Disability if he is determined to be totally disabled by the Social Security Administration or the Railroad Retirement Board. |
2.11 | “Discretionary Credits” has the meaning set forth in Section 5.1 hereof. |
2.12 | “Distribution Date” means the earliest to occur of: (1) a Specified Payment Date elected by the Participant or (2) the Participant’s Separation from Service for any reason (including death or Disability). Notwithstanding the foregoing, in the case of a distribution to a Specified Employee on account of Separation from Service, the Distribution Date shall be the Specified Employee Delayed Payment Date. |
2.13 | “Election Period” means the period established by the Administrator during which Participant deferral and distribution elections must be made in accordance with the requirements of Code Section 409A. The Election Period for Base Compensation and for Bonus Compensation that does not qualify as Performance-Based Compensation shall end no later |
2.14 | “Eligible Employee” means an employee of the Employer selected by the Employer for participation in the Plan. |
2.15 | “Employer” means the Plan Sponsor and any other entity which is authorized by the Plan Sponsor to participate in and, in fact, does adopt the Plan. |
2.16 | “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. |
2.17 | “Participant” means an Eligible Employee who commences participation in the Plan in accordance with Article 3. |
2.18 | “Performance-Based Compensation” means any bonus, award or other compensation designated by the Employer, the amount of which, or the entitlement to which, is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least twelve (12) consecutive months. For such bonus or award to be performance-based with respect to a Participant’s deferral election with respect to such bonus or award, the following requirements must be met: (i) the performance criteria must be established in writing no later than ninety (90) days after the beginning of the applicable “performance period”; (ii) the outcome of the performance criteria must be substantially uncertain when the criteria are established; (iii) no bonus or award, or portion of any bonus or award, that will be paid either regardless of performance, or based upon a level of performance that is substantially certain to be met at the time the criteria are established, shall be considered Performance-Based Compensation; (iv) Performance-Based Compensation shall not include payments based upon subjective performance criteria unless: (a) the subjective performance criteria are bona fide and relate to the Participant’s performance, the performance of a group of employees that includes the Participant, or the performance of a business unit for which the Participant provides services (which may include the entire organization); and (b) the determination that any subjective performance criteria have been met is not made by the Participant or a family member of the Participant (as defined in Code Section 267(c)(4), applied as if the family of an individual includes the spouse of any member of the family), or a person under the effective control of the Participant or such a family member, and no amount of the compensation of the person making such determination is effectively controlled in whole or in part by the Participant or such a family member. A performance-based bonus that otherwise meets the above criteria may provide for payment regardless of satisfaction of the performance criteria upon the Participant’s death, disability (defined as a medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months), or a change in control event (as defined in Treasury Regulations Section 1.409A-3(i)(5)(i)). Any amount that actually becomes payable upon such events without regard to the satisfaction of the performance criteria will not be considered Performance-Based Compensation. |
2.19 | “Plan” means the unfunded plan of deferred compensation set forth herein, as adopted by the Plan Sponsor and as amended from time to time. |
2.20 | “Plan Sponsor” means Micron Technology, Inc. or any successor by merger, consolidation or otherwise. |
2.21 | “Plan Year” means the period commencing January 1 and ending on December 31. |
2.22 | “Related Employer” means the Employer and (a) any corporation that is a member of a controlled group of corporations as defined in Code Section 414(b) that includes the Employer and (b) any trade or business that is under common control as defined in Code Section 414(c) that includes the Employer. |
2.23 | “Separation from Service” means the date that the Participant dies, retires or otherwise has a termination of employment with respect to all entities comprising the Related Employer. A Separation from Service does not occur if the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does not exceed six months or such longer period during which the Participant’s right to reemployment is provided by statute or contract. If the period of leave exceeds six months and the Participant’s right to re-employment is not provided either by statute or contract, a Separation from Service will be deemed to have occurred on the first day following the six-month period. If the period of leave is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where the impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29 month period of absence may be substituted for the six month period. |
2.24 | “Specified Employee” is an employee who on the date of his Separation from Service is a “specified employee” within the meaning given such term under Code Section 409A and the regulations thereunder applying the default criteria. |
2.25 | “Specified Employee Delayed Payment Date” means the first business day of the seventh month following the date of a Specified Employee’s Separation from Service. |
2.26 | “Specified Payment Date” means a calendar year elected by the Participant to receive his her deferrals that is after the Plan Year for which the deferrals are made. |
2.27 | “Valuation Date” means each business day of the Plan Year that the Nasdaq Global Stock Market is open. |
2.28 | “Years of Service” shall be determined in accordance with the Participant’s Years of Service credited under the Micron Technology, Inc. Retirement at Micron (RAM) Plan. |
3.1 | Participation. An Eligible Employee shall commence participation in the Plan upon the effectiveness of his first deferral election in accordance with Section 4.1. |
3.2 | Termination of Participation. The Administrator may terminate a Participant’s participation in the Plan in a manner consistent with Code Section 409A. If the Employer terminates a Participant’s participation before the Participant experiences a Separation from Service the Participant’s vested Accounts shall be paid in accordance with the provisions of Article 9. |
4.1 | Deferral Agreement. An Eligible Employee may elect during the applicable Election Period, by executing in writing or electronically a deferral agreement on form(s) approved by the Administrator, to defer the receipt of a designated percentage of Base Compensation per payroll period that is earned and payable after the effective date of such election, a designated percentage of Bonus Compensation per payroll period that is earned and payable after the effective date of such election and a designated percentage of Performance-Based Compensation that is payable after the effective date of such election and have such amount credited to the Participant’s Account pursuant to the terms of the Plan. The Participant shall make a separate deferral election for Base, Bonus and Performance-Based Compensation deferrals for each Plan Year. |
4.2 | Revocation/Modification of Deferral Elections. Except as otherwise provided in Section 9.2, a Participant may not revoke or modify his deferral agreement after the Election Period. The Administrator in its discretion may cancel a deferral election if permitted under Code Section 409A (such as upon disability), provided that the Participant shall not be provided an election with respect to such cancellation. Notwithstanding anything in this Plan to the contrary, if a Participant receives a hardship distribution of elective deferrals from a qualified cash or deferred arrangement maintained by the Employer, then such Participant’s deferral election shall be cancelled for the remainder of the calendar year in which he received such hardship distribution, to the extent necessary to satisfy the requirements of Treas. Reg. Section 1.401(k)-1(d)(3). |
4.3 | Amount of Deferrals. An Eligible Employee is not required to make a deferral election for any Plan Year. However, if an Eligible Employee makes a deferral election, the following minimums and maximums apply. These minimums and/or maximums may be modified by the Administrator for a given Plan Year on the election forms for such Plan Year without the need of a formal plan amendment. |
(a) | Minimum Base Compensation Deferral Election. The minimum deferral election percentage an Eligible Employee may make for a Plan Year with respect to Base Compensation is 1% of Base Compensation. |
(b) | Minimum Bonus Compensation Deferral Election. The minimum deferral election percentage an Eligible Employee may make for a Plan Year with respect to Bonus Compensation is 1% of such Eligible Employee’s Bonus for a Plan Year. |
(c) | Maximum Base Compensation Deferral Election. The maximum deferral election percentage an Eligible Employee may make for a Plan Year with respect to Base Compensation is 75% of Base Compensation. |
(d) | Maximum Bonus Compensation Deferral Election. The maximum deferral election percentage an Eligible Employee may make for a Plan Year with respect to Bonus Compensation is 100% of such Eligible Employee’s Bonus for a Plan Year. |
4.4 | Timing of Election to Defer. Each Eligible Employee who desires to defer Compensation otherwise payable during a Plan Year must execute a deferral agreement within the Election Period. |
4.5 | Election of Payment Schedule and Form of Payment. All elections of a payment schedule and a form of payment will be made in accordance with rules and procedures established by the Administrator. At the time an Eligible Employee completes a deferral agreement during the Election Period, the Eligible Employee must elect a form of payment in which to receive such deferrals in a payment schedule permitted under Section 9.3 and may elect a Specified Payment Date that occurs during the Participant’s employment. If an Eligible Employee fails to elect a form of payment permitted under Section 9.3, then he shall be deemed to have elected a lump sum form of payment. |
4.6 | No Deferrals from Severance. Deferral elections shall not apply to severance or other amounts payable after a Participant’s Separation from Service. |
5.1 | Employer Contributions. The Employer may, in its sole discretion, make discretionary Employer credits (“Discretionary Credits”) on behalf of any Eligible Participant. In its sole discretion, the Employer shall determine the Eligible Participants to be credited with any Discretionary Credit, the amount of any such Discretionary Credit and the vesting schedule applicable thereto (including any accelerated vesting thereof and the events of such acceleration). In addition, the Employer may permit the Participant to elect the timing and form of distribution of such Discretionary Credits, provided that any such election shall be made no later than the latest time permitted by Code Section 409A. |
6.1 | Establishment of Account. For accounting and computational purposes only, the Administrator will establish and maintain an Account on behalf of each Participant which will reflect the credits made pursuant to Section 6.2, distributions or withdrawals, along with the earnings, expenses, gains and losses allocated thereto, attributable to the hypothetical investments made with the amounts in the Account as provided in Article 7. The Administrator will establish and maintain such other records and accounts, as it decides in its discretion to be reasonably required or appropriate to discharge its duties under the Plan. |
6.2 | Credits to Account. A Participant’s Account will be credited for each Plan Year with the amount of his elective deferrals under Section 4.1 at the time the amount subject to the deferral election would otherwise have been payable to the Participant and the amount of Employer contributions treated as allocated on his behalf under Article 5. |
7.1 | Investment Options. The amount credited to each Account shall be treated as invested in the investment options selected in advance by the Administrator. The Administrator, in its sole discretion, shall be permitted to add or remove investment options from the Plan menu from time to time, provided that any such additions or removals of investment options shall not be effective with respect to any period prior to the effective date of such change. |
7.2 | Investment Allocations. A Participant’s investment allocation constitutes a deemed, not actual, investment among the investment options comprising the investment menu. At no time shall a Participant have any real or beneficial ownership in any investment option included in the investment menu, nor shall the Employer or any trustee acting on its behalf have any obligation to purchase actual securities as a result of a Participant’s investment allocation. A Participant’s investment allocation shall be used solely for purposes of adjusting the value of a Participant’s Account. |
(a) | A Participant shall specify an investment allocation for each of his Accounts in accordance with procedures established by the Administrator. Except as otherwise provided by the Administrator, the following provisions of this Section 7.2 shall apply to allocations under the Plan. |
(i) | Allocation among the investment options must be designated in increments of 1%. The Participant’s investment allocation will become effective on the same business day or, in the case of investment allocations received after a time specified by the Administrator, the next business day. |
(ii) | A Participant may change an investment allocation on any business day, both with respect to future credits to the Plan and with respect to existing Accounts, in accordance with procedures adopted by the Administrator. Changes shall become effective on the same business day or, in the case of investment allocations received after a time specified by the Administrator, the next business day, and shall be applied prospectively. |
7.3 | Adjustment of Accounts. The amount credited to each Account shall be adjusted for hypothetical investment earnings, expenses, gains or losses in an amount equal to the earnings, expenses, gains or losses attributable to the investment options selected by the Participant from among the investment options provided in Section 7.1. A Participant (or the Participant’s Beneficiary after the death of the Participant) may, in accordance with rules and procedures established by the Administrator, select the investments from among the options provided in Section 7.1 to be used for the purpose of calculating future hypothetical investment adjustments to the Account or to future credits to the Account under Section 6.2 effective as of the Valuation Date coincident with or next following notice to the Administrator. Each Account shall be adjusted as of each Valuation Date to reflect: (a) the hypothetical earnings, expenses, gains and losses described above; (b) amounts credited pursuant to Section 6.2; and (c) distributions or withdrawals. In addition, each Account may be adjusted for its allocable share of the hypothetical costs and expenses associated with the maintenance of the hypothetical investments provided in Section 7.1. |
8.1 | Vesting. |
(a) | A Participant, at all times, has a 100% nonforfeitable interest in the amounts credited to his Account attributable to his elective deferrals made in accordance with Section 4.1. |
(b) | A Participant’s right to the amounts credited to his Account attributable to Discretionary Credits made in accordance with Article 5, if any, shall vest at to 100% of the applicable Discretionary Credit on the date that such Participant achieves two Years of Service (each, an “Employer Contribution Vesting Date”). Upon a Separation from Service prior to an Employer Contribution Vesting Date, the Participant shall forfeit the nonvested portion of his Account. Notwithstanding the foregoing, a Participant’s rights to the amounts credited to his Account attributable to Discretionary Credits made in accordance with Article 5, if any, shall vest as to 100% of the applicable Discretionary Credit in the event of such Participant’s death or Disability, or upon the occurrence of a Change in Control. |
8.2 | Death; Disability. A Participant may designate a Beneficiary or Beneficiaries, or change any prior designation of Beneficiary or Beneficiaries in accordance with rules and procedures established by the Administrator. |
9.1 | Amount of Benefits. The vested amount credited to a Participant’s Account as determined under Articles 6, 7 and 8 shall determine and constitute the basis for the value of benefits payable to the Participant under the Plan. |
9.2 | Method and Timing of Distributions. Except as otherwise expressly provided herein, amounts credited to a Participant’s Account for each Plan Year shall be paid to the Participant in accordance with the Participant’s distribution election under Article 4. Distributions shall commence to be paid to the Participant as soon as administratively feasible following the Distribution Date, but in no event later than the time prescribed by Treas. Reg. Section 1.409A-3(d). A Participant may make a one (1) time change to his or her distribution election for a Plan Year to elect a later Specified Payment Date in accordance with this Section 9.2 and may make a one (1) time change to his or her distribution election for a Plan Year to elect a different payment schedule in accordance with this Section 9.2; provided, however, that an election to defer payment or change the form of distribution shall not take effect until at least 12 months after the date on which the election is made and shall be effective only if (i) the election is made at least twelve (12) months before the Specified Payment |
9.3 | Form of Distribution. Vested amounts credited to a Participant’s Account shall, at the Participant’s election specified in his deferral agreement in accordance with Article 4, be payable to the Participant in a single sum cash payment or in substantially equal annual cash installments over not less than two (2) years and not more than ten (10) years. Annual installment payments shall be calculated by dividing the Account balance by the remaining annual installments to be made. |
9.4 | Payment Election Overrides. Notwithstanding the Participant’s election as to the time and form of payment, upon the Participant’s death or Disability, the Participant’s entire Account (including any amounts with respect to which installment payments have previously commenced) shall be paid to the Participant or his Beneficiary in a single sum cash payment. |
9.5 | Change in Control. Notwithstanding the Participant’s election as to the time and form of payment, in the event of a Change in Control, the Participant’s entire Account (including any amounts with respect to which installment payments have previously commenced) shall be paid to the Participant in a single sum cash payment upon the Change in Control. |
(a) | Relevant Corporations. To constitute a Change in Control for purposes of the Plan, the event must relate to (i) the corporation for whom the Participant is performing services at the time of the Change in Control, (ii) the corporation that is liable for the payment of the Participant’s benefits under the Plan (or all corporations liable if more than one corporation is liable) but only if either the deferred compensation is attributable to the performance of services by the Participant for such corporation (or corporations) or there is a bona fide business purpose for such corporation (or corporations) to be liable for such payment and, in either case, no significant purpose of making such corporation (or corporations) liable for such payment is the avoidance of federal income tax, or (iii) a corporation that is a majority shareholder of a corporation identified in (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (i) or (ii). A majority shareholder is defined as a shareholder owning more than fifty percent (50%) of the total fair market value and voting power of such corporation. |
(b) | Stock Ownership. Code Section 318(a) applies for purposes of determining stock ownership. Stock underlying a vested option is considered owned by the individual who owns the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option). If, however, a vested option is exercisable for stock that is not substantially vested (as defined by Treasury Regulation Section 1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the individual who holds the option. |
(c) | Change in the Ownership of a Corporation. A change in the ownership of a corporation occurs on the date that any one person or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such corporation. If any one person or more than one person acting as a group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation as discussed below in Section 9.6(d)). An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property |
(d) | Change in the effective control of a corporation. A change in the effective control of a corporation occurs on the date that either (i) any one person, or more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing thirty percent (30%) or more of the total voting power of the stock of such corporation, or (ii) a majority of members of the corporation’s board of directors is replaced during any twelve month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term corporation refers solely to the relevant corporation identified in Section 9.6(a) for which no other corporation is a majority shareholder for purposes of Section 9.6(a). In the absence of an event described in Section 9.6(d)(i) or (ii), a change in the effective control of a corporation will not have occurred. A change in effective control may also occur in any transaction in which either of the two corporations involved in the transaction has a change in the ownership of such corporation as described in Section 9.6(c) or a change in the ownership of a substantial portion of the assets of such corporation as described in Section 9.6(e). If any one person, or more than one person acting as a group, is considered to effectively control a corporation within the meaning of this Section 9.6(d), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation or to cause a change in the ownership of the corporation within the meaning of Section 9.6(c). For purposes of this Section 9.6(d), persons will or will not be considered to be acting as a group in accordance with rules similar to those set forth in Section 9.6(c) with the following exception. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. |
(e) | Change in the ownership of a substantial portion of a corporation’s assets. A change in the ownership of a substantial portion of a corporation’s assets occurs on the date that any one person, or more than one person acting as a group (as determined in accordance with rules similar to those set forth in Section 9.6(d)), acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the corporation or the value of the assets being disposed of determined without regard to any liabilities associated with such assets. There is no Change in Control event under this Section 9.6(e) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer. A transfer of assets by a corporation is not treated as a change in ownership of such assets if the assets are transferred to (i) a shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the corporation, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in Section 9.6(e)(iii). For purposes of the foregoing, and except as otherwise provided, a person’s status is determined immediately after the transfer of assets. |
9.7 | Permissible Delays in Payment. Distributions may be delayed beyond the date payment would otherwise occur in accordance with the provisions of Articles 8 and 9 in any of the following circumstances as long as the Employer treats all payments to similarly situated Participants on a reasonably consistent basis. |
(a) | The Employer may delay payment if it reasonably anticipates that its deduction with respect to such payment would be limited or eliminated by the application of Code Section 162(m). Payment must be made during the Participant’s |
(b) | The Employer may also delay payment if it reasonably anticipates that the making of the payment will violate federal securities laws or other applicable laws provided payment is made at the earliest date on which the Employer reasonably anticipates that the making of the payment will not cause such violation. |
(c) | The Employer reserves the right to amend the Plan to provide for a delay in payment upon such other events and conditions as the Secretary of the Treasury may prescribe in generally applicable guidance published in the Internal Revenue Bulletin. |
9.8 | Permitted Acceleration of Payment. The Employer may permit acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a payment under the Plan provided such acceleration would be permitted by the provisions of Reg. Sec. 1.409A-3(j)(4), including the following events: |
(a) | Domestic Relations Order. A payment may be accelerated if such payment is made to an alternate payee pursuant to and following the receipt and qualification of a domestic relations order as defined in Code Section 414(p). |
(b) | Compliance with Ethics Agreements and Legal Requirements. A payment may be accelerated as may be necessary to comply with ethics agreements with the Federal government or as may be reasonably necessary to avoid the violation of Federal, state, local or foreign ethics law or conflicts of laws, in accordance with the requirements of Code Section 409A. |
(c) | FICA Tax. A payment may be accelerated to the extent required to pay the Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) of the Code with respect to compensation deferred under the Plan (the “FICA Amount”). Additionally, a payment may be accelerated to pay the income tax on wages imposed under Code Section 3401 of the Code on the FICA Amount and to pay the additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes. The total payment under this subsection (d) may not exceed the aggregate of the FICA Amount and the income tax withholding related to the FICA Amount. |
(d) | Section 409A Additional Tax. A payment may be accelerated if the Plan fails to meet the requirements of Code Section 409A; provided that such payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A. |
(e) | Offset. A payment may be accelerated in the Employer’s discretion as satisfaction of a debt of the Participant to the Employer, where such debt is incurred in the ordinary course of the service relationship between the Participant and the Employer, the entire amount of the reduction in any of the Employer’s taxable years does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant. |
(f) | Other Events. A payment may be accelerated in the Administrator’s discretion in connection with such other events and conditions as permitted by Code Section 409A. |
10.1 | Amendment by Plan Sponsor. The Plan Sponsor reserves the right to amend the Plan (for itself and each Employer) through action of its Board of Directors. No amendment can directly or indirectly deprive any current or former Participant or Beneficiary of all or any portion of his Account which had accrued and vested prior to the amendment. |
10.2 | Plan Termination Following Change in Control or Corporate Dissolution. The Plan Sponsor reserves the right to terminate the Plan and distribute all amounts credited to all Participant Accounts within the 30 days preceding or the twelve months following a Change in Control as determined in accordance with the rules set forth in Section 9.6. For this purpose, the Plan will be treated as terminated only if all agreements, methods, programs and other arrangements sponsored by the Related Employer immediately after the Change in Control which are treated as a single plan under |
10.3 | Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under Code Section 409A and Reg. Sec. 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the date the Plan Sponsor takes all necessary action to irrevocably terminate and liquidate the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within the three year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan sponsor. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin. |
11.1 | Establishment of Trust. The Plan Sponsor may but is not required to establish a trust to hold amounts which the Plan Sponsor may contribute from time to time to correspond to some or all amounts credited to Participants under Section 6.2. In the event that the Plan Sponsor wishes to establish a trust to provide a source of funds for the payment of Plan benefits, any such trust shall be constructed to constitute an unfunded arrangement that does not affect the status of the Plan as an unfunded plan for purposes of Title I of ERISA and the Code. |
11.2 | Rabbi Trust. Any trust established by the Plan Sponsor shall be between the Plan Sponsor and a trustee pursuant to a separate written agreement under which assets are held, administered and managed, subject to the claims of the Plan Sponsor’s creditors in the event of the Plan Sponsor’s insolvency. The trust is intended to be treated as a rabbi trust in accordance with existing guidance of the Internal Revenue Service, and the establishment of the trust shall not cause the Participant to realize current income on amounts contributed thereto. The Plan Sponsor must notify the trustee in the event of a bankruptcy or insolvency. |
11.3 | Investment of Trust Funds. Any amounts contributed to the trust by the Plan Sponsor shall be invested by the trustee in accordance with the provisions of the trust and the instructions of the Administrator. Trust investments need not reflect the hypothetical investments selected by Participants under Section 7.1 for the purpose of adjusting Accounts and the earnings or investment results of the trust need not affect the hypothetical investment adjustments to Participant Accounts under the Plan. |
12.1 | Powers and Responsibilities of the Administrator. The Administrator has the full power and the full responsibility to administer the Plan in all of its details, subject, however, to the applicable requirements of ERISA. The Administrator’s powers and responsibilities include, but are not limited to, the following: |
(a) | To make and enforce such rules and procedures as it deems necessary or proper for the efficient administration of the Plan; |
(b) | To interpret the Plan, its interpretation thereof to be final, except as provided in Section 12.2, on all persons claiming benefits under the Plan; |
(c) | To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan; |
(d) | To administer the claims and review procedures specified in Section 12.2; |
(e) | To compute the amount of benefits which will be payable to any Participant, former Participant or Beneficiary in accordance with the provisions of the Plan; |
(f) | To determine the person or persons to whom such benefits will be paid; |
(g) | To authorize the payment of benefits; |
(h) | To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA; |
(i) | To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan; |
(j) | By written instrument, to allocate and delegate its responsibilities, including the formation of an administrative committee to administer the Plan. |
12.2 | Claims and Review Procedures. |
(a) | Claims Procedure. If any person believes he is being denied any rights or benefits under the Plan, such person may file a claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing. Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary for such person to perfect such claim and an explanation of why such material or information is necessary, and (iv) a description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the person’s right to bring a civil action following an adverse decision on review. Such notification will be given within 90 days (45 days in the case of a claim regarding Disability) after the claim is received by the Administrator. The Administrator may extend the period for providing the notification by 90 days (30 days in the case of a claim regarding Disability) if special circumstances require an extension of time for processing the claim and if written notice of such extension and circumstance is given to such person within the initial 90 day period (45 day period in the case of a claim regarding Disability). If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his claim. |
(b) | Review Procedure. Within 60 days (180 days in the case of a claim regarding Disability) after the date on which a person receives a written notification of denial of claim (or, if written notification is not provided, within 60 days (180 days in the case of a claim regarding Disability) of the date denial is considered to have occurred), such person (or his duly authorized representative) may (i) file a written request with the Administrator for a review of his denied claim and of pertinent documents and (ii) submit written issues and comments to the Administrator. The Administrator will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain specific reasons for the decision as well as specific references to pertinent Plan provisions. The notification will explain that the person is entitled to receive, upon request and free of charge, reasonable access to and copies of all pertinent documents and has the right to bring a civil action following an adverse decision on review. The decision on review will be made within 60 days (45 days in the case of a claim regarding Disability). The Administrator may extend the period for making the decision on review by 60 days (45 days in the case of a claim regarding Disability) if special circumstances require an extension of time for processing the request such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60-day period (45 days in the case of a claim regarding Disability). If the decision on review is not made within such period, the claim will be considered denied. |
(c) | Exhaustion of Claims Procedures and Right to Bring Legal Claim. No action at law or equity shall be brought more than one (1) year after the Administrator’s affirmation of a denial of a claim, or, if earlier, more than four (4) years after the facts or events giving rising to the claimant’s allegation(s) or claim(s) first occurred. |
12.3 | Plan Administrative Costs. All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator in administering the Plan shall be paid by the Plan to the extent not paid by the Employer. |
13.1 | Unsecured General Creditor of the Employer. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Employer. For purposes of the payment of benefits under the Plan, any and all of the Employer’s assets shall be, and shall remain, the general, unpledged, |
13.2 | Employer’s Liability. Each Employer’s liability for the payment of benefits under the Plan shall be defined only by the Plan and by the deferral elections entered into between a Participant and the Employer. An Employer shall have no obligation or liability to a Participant under the Plan except as provided by the Plan and a deferral election or agreements. An Employer shall have no liability to Participants employed by other Employers. |
13.3 | Limitation of Rights. Neither the establishment of the Plan, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits, will be construed as giving to the Participant or any other person any legal or equitable right against the Employer, the Plan or the Administrator, except as provided herein; and in no event will the terms of employment or service of the Participant be modified or in any way affected hereby. |
13.4 | Anti-Assignment. Except as may be necessary to fulfill a domestic relations order within the meaning of Code Section 414(p), none of the benefits or rights of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or equitable process available to any creditor of the Participant and his or her Beneficiary. Neither the Participant nor his or her Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he or she may expect to receive, contingently or otherwise, under the Plan, except the right to designate a Beneficiary to receive death benefits provided hereunder. Notwithstanding the preceding, the benefit payable from a Participant’s Account may be reduced, at the discretion of the administrator, to satisfy any debt or liability to the Employer. |
13.5 | Facility of Payment. If the Administrator determines, on the basis of medical reports or other evidence satisfactory to the Administrator, that the recipient of any benefit payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the Administrator may direct the Employer to disburse such payments to a person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient. The receipt by such person or institution of any such payments therefore, and any such payment to the extent thereof, shall discharge the liability of the Employer, the Plan and the Administrator for the payment of benefits hereunder to such recipient. |
13.6 | Notices. Any notice or other communication to the Employer or Administrator in connection with the Plan shall be deemed delivered in writing if addressed to the Plan Sponsor at the following address: 8000 South Federal Way, Boise, ID 83707, and if either actually delivered at said address or, in the case or a letter, 5 business days shall have elapsed after the same shall have been deposited in the United States mails, first-class postage prepaid and registered or certified. |
13.7 | Tax Withholding. If the Employer concludes that tax is owing with respect to any deferral or payment hereunder, the Employer shall withhold such amounts from any payments due the Participant or from amounts deferred, as permitted by law, or otherwise make appropriate arrangements with the Participant or his Beneficiary for satisfaction of such obligation. Tax, for purposes of this Section 13.7 means any federal, state, local or any other governmental income tax, employment or payroll tax, excise tax, or any other tax or assessment owing with respect to amounts deferred, any earnings thereon, and any payments made to Participants under the Plan. |
13.8 | Indemnification. |
(a) | Each Indemnitee (as defined in Section 13.8(e)) shall be indemnified and held harmless by the Employer for all actions taken by him and for all failures to take action (regardless of the date of any such action or failure to take action), to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated, against all expense, liability, and loss (including, without limitation, attorneys’ fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Indemnitee in connection with any Proceeding (as defined in Subsection (e)). No indemnification pursuant to this Section shall be made, however, in any case where (1) the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness or (2) there is a settlement to which the Employer does not consent. |
(b) | The right to indemnification provided in this Section shall include the right to have the expenses incurred by the Indemnitee in defending any Proceeding paid by the Employer in advance of the final disposition of the Proceeding, to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated; provided that, if such law requires, the payment of such expenses incurred by the Indemnitee in advance of the final disposition of a |
(c) | Indemnification pursuant to this Section shall continue as to an Indemnitee who has ceased to be such and shall inure to the benefit of his heirs, executors, and administrators. The Employer agrees that the undertakings made in this Section shall be binding on its successors or assigns and shall survive the termination, amendment or restatement of the Plan. |
(d) | The foregoing right to indemnification shall be in addition to such other rights as the Indemnitee may enjoy as a matter of law or by reason of insurance coverage of any kind and is in addition to and not in lieu of any rights to indemnification to which the Indemnitee may be entitled pursuant to the by-laws of the Employer. |
(e) | For the purposes of this Section, the following definitions shall apply: |
(i) | “Indemnitee” shall mean each person serving as an Administrator (or any other person who is an employee, director, or officer of the Employer) who was or is a party to, or is threatened to be made a party to, or is otherwise involved in, any Proceeding, by reason of the fact that he is or was performing administrative functions under the Plan. |
(ii) | “Proceeding” shall mean any threatened, pending, or completed action, suit, or proceeding (including, without limitation, an action, suit, or proceeding by or in the right of the Employer), whether civil, criminal, administrative, investigative, or through arbitration. |
13.9 | Successors. The provisions of the Plan shall bind and inure to the benefit of the Plan Sponsor, the Employer and their successors and assigns and the Participant and the Participant’s designated Beneficiaries. |
13.10 | Disclaimer. It is the Plan Sponsor’s intention that the Plan comply with the requirements of Code Section 409A. Neither the Plan Sponsor nor the Employer shall have any liability to any Participant should any provision of the Plan fail to satisfy the requirements of Code Section 409A. |
13.11 | Governing Law. The Plan will be construed, administered and enforced according to the laws of Delaware. |
MICRON TECHNOLOGY, INC. | ||
By: Its: |
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: | March 28, 2017 | /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: | March 28, 2017 | /s/ Ernest E. Maddock |
Ernest E. Maddock Chief Financial Officer and Vice President, Finance |
Date: | March 28, 2017 | /s/ D. Mark Durcan |
D. Mark Durcan Chief Executive Officer |
Date: | March 28, 2017 | /s/ Ernest E. Maddock |
Ernest E. Maddock Chief Financial Officer and Vice President, Finance |
Document and Entity Information Document - shares |
6 Months Ended | |
---|---|---|
Mar. 02, 2017 |
Mar. 21, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MICRON TECHNOLOGY INC | |
Entity Central Index Key | 0000723125 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 02, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,106,307,123 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 894 | $ (96) | $ 1,074 | $ 110 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 0 | 1 | 37 | (89) |
Gain (loss) on derivatives, net | 0 | 3 | (7) | (1) |
Pension liability adjustments | 0 | 1 | (1) | (5) |
Gain (loss) on investments, net | 0 | 1 | (1) | (2) |
Other comprehensive income (loss) | 0 | 6 | 28 | (97) |
Total comprehensive income (loss) | 894 | (90) | 1,102 | 13 |
Comprehensive (income) attributable to noncontrolling interests | 0 | (1) | 0 | (1) |
Comprehensive income (loss) attributable to Micron | $ 894 | $ (91) | $ 1,102 | $ 12 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Liabilities and equity | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, authorized shares (in shares) | 3,000 | 3,000 |
Common Stock, issued (in shares) | 1,110 | 1,094 |
Common Stock, outstanding (in shares) | 1,106 | 1,040 |
Treasury Stock, held (in shares) | 4 | 54 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Cash flows from operating activities | ||
Net income | $ 1,074 | $ 110 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense and amortization of intangible assets | 1,774 | 1,511 |
Amortization of debt discount and other costs | 63 | 64 |
Stock-based compensation | 101 | 101 |
Gain on remeasurement of previously-held equity interest in Inotera | (71) | 0 |
Equity in net (income) loss of equity method investees | (5) | (64) |
Change in operating assets and liabilities | ||
Receivables | (773) | 542 |
Inventories | 174 | (268) |
Accounts payable and accrued expenses | 399 | (67) |
Payments attributed to intercompany balances with Inotera | (361) | 0 |
Deferred income taxes, net | 59 | (27) |
Other | 109 | (19) |
Net cash provided by operating activities | 2,543 | 1,883 |
Cash flows from investing activities | ||
Acquisition of Inotera | (2,634) | 0 |
Expenditures for property, plant, and equipment | (2,428) | (2,209) |
Purchases of available-for-sale securities | (803) | (679) |
Payments to settle hedging activities | (249) | (66) |
Proceeds from sales and maturities of available-for-sale securities | 620 | 1,950 |
Proceeds from settlement of hedging activities | 74 | 114 |
Other | 54 | (136) |
Net cash provided by (used for) investing activities | (5,366) | (1,026) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 2,961 | 174 |
Proceeds from issuance of stock under equity plans | 68 | 24 |
Proceeds from equipment sale-leaseback transactions | 0 | 424 |
Repayments of debt | (556) | (519) |
Payments on equipment purchase contracts | (33) | (14) |
Cash paid to acquire treasury stock | (33) | (147) |
Other | (66) | (10) |
Net cash provided by (used for) financing activities | 2,341 | (68) |
Effect of changes in currency exchange rates on cash and equivalents | (25) | 2 |
Net increase (decrease) in cash and equivalents | (507) | 791 |
Cash and equivalents at beginning of period | 4,140 | 2,287 |
Cash and equivalents at end of period | $ 3,633 | $ 3,078 |
Business and Basis of Presentation |
6 Months Ended |
---|---|
Mar. 02, 2017 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation We are a world leader in innovative memory solutions. Through our global brands – Micron®, Crucial®, Lexar®, and Ballistix® – our broad portfolio of high-performance memory technologies, including DRAM, NAND Flash, NOR Flash, and 3D XPoint™ memory, is transforming how the world uses information. Backed by more than 35 years of technology leadership, our memory solutions enable the world's most innovative computing, consumer, enterprise storage, data center, mobile, embedded, and automotive applications. The accompanying consolidated financial statements include the accounts of Micron and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended September 1, 2016. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. Certain reclassifications have been made to prior period amounts to conform to current period presentation. Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal years 2017 and 2016 each contain 52 weeks. All period references are to our fiscal periods unless otherwise indicated. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended September 1, 2016. |
Variable Interest Entities |
6 Months Ended |
---|---|
Mar. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have interests in entities that are 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 VIEs Inotera: Prior to our acquisition of the remaining interest in Inotera on December 6, 2016, Inotera was a VIE because of the terms of its supply agreement with us. We had determined that we did not have the power to direct the activities of Inotera that most significantly impacted its economic performance, primarily due to limitations on our governance rights that required the consent of other parties for key operating decisions and due to Inotera's dependence on Nanya for financing and the ability of Inotera to operate in Taiwan. Therefore, we did not consolidate Inotera and we accounted for our interest under the equity method. (See "Acquisition of Inotera" and "Equity Method Investments – Inotera" notes.) EQUVO: EQUVO HK Limited ("EQUVO"), a special purpose entity, was created to facilitate an equipment sale-leaseback financing transaction between us and a consortium of financial institutions. Neither we nor the financing entities have an equity interest in EQUVO. EQUVO was a VIE because its equity was not sufficient to permit it to finance its activities without additional support from the financing entities and because the third-party equity holder lacked characteristics of a controlling financial interest. By design, the arrangement with EQUVO was merely a financing vehicle and we did not bear any significant risks from variable interests with EQUVO. Therefore, we had determined that we did not have the power to direct the activities of EQUVO that most significantly impact its economic performance and we did not consolidate EQUVO. In February 2017, we completed all of our obligations under the sale-leaseback financing and no longer have any variable interests in EQUVO. SC Hiroshima Energy Corporation: SC Hiroshima Energy Corporation ("SCHE") is an entity created to construct and operate a cogeneration, electrical power plant to support our wafer manufacturing facility in Hiroshima, Japan. We do not have an equity interest in SCHE. SCHE is a VIE due to the nature of its tolling agreements with us and our option to purchase SCHE's assets. We do not control the operation and maintenance of the plant, which we have determined are the activities of SCHE that most significantly impact its economic performance. Therefore, we do not consolidate SCHE. PTI Xi'an: Powertech Technology Inc. Xi'an ("PTI Xi'an") is a wholly-owned subsidiary of Powertech Technology Inc. ("PTI") and was created to provide assembly services to us at our manufacturing site in Xi'an, China. We do not have an equity interest in PTI Xi'an. PTI Xi'an is a VIE because of the terms of its service agreement with us and its dependency on PTI to finance its operations. We have determined that we do not have the power to direct the activities of PTI Xi'an that most significantly impact its economic performance, primarily because we have no governance rights. Therefore, we do not consolidate PTI Xi'an. Consolidated VIE IMFT: IMFT is a VIE because all of its costs are passed to us and its other member, Intel, through product purchase agreements and because IMFT is dependent upon us or Intel for additional cash requirements. 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 consolidate IMFT because we have the power to direct the activities of IMFT that most significantly impact its economic performance and because we have the obligation to absorb losses and the right to receive benefits from IMFT that could potentially be significant to it. (See "Equity – Noncontrolling Interests in Subsidiaries – IMFT" note.) |
Recently Adopted Accounting Standards |
6 Months Ended |
---|---|
Mar. 02, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09 – Improvements to Employee Share-Based Payment Accounting, which simplified several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, forfeitures, and classification within the statement of cash flows. We adopted this ASU as of the beginning of the first quarter of 2017 and elected to account for forfeitures when they occur, on a modified retrospective basis. As a result of the adoption of this ASU, in the first quarter of 2017, we recognized deferred tax assets of $325 million for the excess tax benefits that arose directly from tax deductions related to equity compensation greater than amounts recognized for financial reporting and also recognized an increase of an equal amount in the valuation allowance against those deferred tax assets. The adoption did not have any other material impacts on our financial statements. In April 2015, the FASB issued ASU 2015-05 – Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which provided additional guidance to customers about whether a cloud computing arrangement included a software license. Under ASU 2015-05, cloud computing arrangements that contain a software license should be accounted for in a manner consistent with the acquisition of other software licenses, otherwise customers should account for the arrangement as a service contract. ASU 2015-05 also removed the requirement to analogize to ASC 840-10 – Leases, to determine the asset acquired in a software licensing arrangement. We adopted this ASU as of the beginning of the first quarter of 2017 on a prospective basis. The adoption of this ASU did not have a material impact on our financial statements. In February 2015, the FASB issued ASU 2015-02 – Amendments to the Consolidation Analysis, which amended the consolidation requirements in Accounting Standards Codification 810 – Consolidation. ASU 2015-02 made targeted amendments to the consolidation guidance for VIEs. We adopted this ASU as of the beginning of the first quarter of 2017 under a modified-retrospective approach. The adoption of this ASU did not have an impact on our financial statements. |
Recently Issued Accounting Standards |
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Mar. 02, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04 – Simplifying the Test for Goodwill Impairment, which modifies the goodwill impairment test and requires an entity to write down the carrying value of goodwill up to the amount by which the carrying amount of a reporting unit exceeds its fair value. This ASU will be effective for us beginning in the first quarter of 2021 with early adoption permitted and requires prospective adoption. We expect to adopt this ASU in the fourth quarter of 2017. Since the ASU simplifies the test for goodwill impairment, we do not expect the adoption of the ASU itself to have a material impact on our financial statements. In November 2016, the FASB issued ASU 2016-18 – Restricted Cash, which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. This ASU will be effective for us beginning in the first quarter of 2019 with early adoption permitted and requires retrospective adoption. We are evaluating the timing and effects of our adoption of this ASU on our financial statements. In October 2016, the FASB issued ASU 2016-16 – Intra-Entity Transfers Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This ASU will be effective for us beginning in the first quarter of 2019 with early adoption permitted and requires modified retrospective adoption. We are evaluating the timing and effects of our adoption of this ASU on our financial statements. In June 2016, the FASB issued ASU 2016-13 – Measurement of Credit Losses on Financial Instruments, which requires a financial asset (or a group of financial assets) measured on the basis of amortized cost to be presented at the net amount expected to be collected. This ASU requires that the income statement reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This ASU requires that credit losses of debt securities designated as available-for-sale be recorded through an allowance for credit losses and limits the credit loss to the amount by which fair value is below amortized cost. We are required to adopt this ASU beginning in the first quarter of 2021; however, we are permitted to adopt this ASU as early as the first quarter of 2020. This ASU is required to be adopted using a modified retrospective approach, with prospective adoption for debt securities for which an other-than-temporary impairment had been recognized before the effective date. We are evaluating the timing and effects of our adoption of this ASU on our financial statements. In February 2016, the FASB issued ASU 2016-02 – Leases, which amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. This ASU will be effective for us beginning in the first quarter of 2020 with early adoption permitted and is required to be adopted using a modified retrospective approach. The adoption of this ASU will result in an increase to our consolidated balance sheets for these right-of-use assets and corresponding liabilities. We are evaluating the timing and other effects of our adoption of this ASU on our financial statements. In January 2016, the FASB issued ASU 2016-01 – Recognition and Measurement of Financial Assets and Financial Liabilities, which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This ASU will be effective for us beginning in the first quarter of 2019 and requires modified retrospective adoption. We are evaluating the effects of our adoption of this ASU on our financial statements. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under generally accepted accounting principles in the U.S. The core principal of this ASU, as amended, is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We are required to adopt this ASU beginning in our the quarter of 2019; however, we are permitted to adopt this ASU as early as the first quarter of 2018. This ASU allows for either full retrospective or modified retrospective adoption. We expect that, as a result of the adoption of this ASU, the timing of recognizing revenue from sales of products to our distributors under agreements allowing rights of return or price protection will be generally earlier than under the existing revenue recognition guidance. After adoption, the impact of this change in any reporting period is expected to be the net effect of changes to revenue recognized as of the beginning and end of each period. Revenue recognized upon resale by our customers with these rights was 20% and 22% for the second quarter and first six months of 2017, respectively, and 24% for the second quarter and first six months of 2016. We are evaluating the timing, method, and other effects of our adoption of this ASU on our financial statements. |
Acquisition of Inotera |
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Acquisition of Inotera | Acquisition of Inotera Through December 6, 2016, we held a 33% ownership interest in Inotera, Nanya and certain of its affiliates held a 32% ownership interest, and the remaining ownership interest was publicly held. On December 6, 2016, we acquired the 67% remaining interest in Inotera not owned by us (the "Inotera Acquisition") and began consolidating Inotera's operating results. The cash paid for the Inotera Acquisition was funded, in part, with proceeds from the 2021 MSTW Term Loan and the sale of shares of our common stock to Nanya. Inotera manufactures DRAM products at its 300mm wafer fabrication facility in Taoyuan City, Taiwan, and sold such products exclusively to us through supply agreements. SG&A expenses for the first six months of 2017 and for full fiscal 2016 included transaction costs of $13 million and $3 million, respectively, incurred in connection with the Inotera Acquisition. In connection with the Inotera Acquisition, we revalued our previously-held 33% equity interest to its fair value. In determining the fair value, we used various valuation techniques, including the share price of Inotera prior to the announcement of the acquisition and discounted cash flow projections using inputs including discount rate and terminal growth rate (Level 3). As a result, we recognized a non-operating gain of $71 million in the second quarter of 2017. In connection with the Inotera Acquisition, we sold 58 million shares of our common stock to Nanya (the "Micron Shares") and received cash proceeds of $986 million. Because the sale of the Micron Shares to Nanya was contemporaneously contemplated with, and contingent upon, the closing the Inotera Acquisition, the issuance of the Micron Shares was treated in purchase accounting as a non-cash exchange for a portion of the shares of Inotera held by Nanya. The Micron Shares were issued in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, and are subject to certain restrictions on transfers. To reflect the lack of transferability, the fair value of the Micron Shares based on the trading price of our common stock on the acquisition date was reduced by a discount of $81 million, which was determined based on the implied volatility derived from traded options on our stock and on the duration of the lack of transferability (Level 2). We estimated the assets acquired and liabilities assumed of Inotera as of the December 6, 2016 acquisition date. These estimates could change as additional information becomes available. The consideration and provisional valuation of assets acquired and liabilities assumed are as follows:
As a result of the Inotera Acquisition, we expect to experience greater operational flexibility to drive new technology in products manufactured by Inotera, optimize the deployment of our cash flows across our operations, and enhance our ability to adapt our product offerings to changes in market conditions. We are evaluating the assignment of goodwill to our reporting units. Goodwill resulting from the Inotera Acquisition is not deductible for Taiwan corporate income tax purposes; however, it is deductible for Taiwan surtax purposes. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations as if the Inotera Acquisition had occurred on September 4, 2015. The pro forma financial information includes the accounting effects of the business combination, including adjustments for depreciation of property, plant, and equipment, interest expense, elimination of intercompany activities, and revaluation of inventories. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the Inotera Acquisition occurred on September 4, 2015.
The unaudited pro forma financial information for 2017 includes our results for the quarter and six months ended March 2, 2017 (which includes the results of Inotera since our acquisition of Inotera on December 6, 2016), the results of Inotera for the three months ended November 30, 2016, and the adjustments described above. The pro forma information for 2016 includes our results for the quarter and six months ended March 3, 2016, the results of Inotera for the quarter and six months ended February 28, 2016, and the adjustments described above. Technology Transfer and License Agreements with Nanya Effective December 6, 2016, under the terms of technology transfer and license agreements, Nanya has options to require us to transfer to Nanya for Nanya's use certain technology and deliverables related to the next DRAM process node generation after our 20nm process node (the "1X Process Node") and the next DRAM process node generation after the 1X Process Node. Under the terms of the agreements, Nanya would pay royalties to us for a license to the transferred technologies based on revenues from products utilizing the technologies, subject to specified caps, and we would also receive an equity interest in Nanya upon the achievement of certain milestones. |
Cash and Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Investments | Cash and Investments Cash and equivalents and the fair values of our available-for-sale investments, which approximated amortized costs, were as follows:
Proceeds from sales of available-for-sale securities were $36 million and $548 million for the second quarter and first six months of 2017, respectively, and $585 million and $992 million for the second quarter and first six months of 2016, respectively. Gross realized gains and losses from sales of available-for-sale securities were not material for any period presented. As of March 2, 2017, there were no available-for-sale securities that had been in a loss position for longer than 12 months. Other noncurrent assets, excluded from the table above, included restricted cash of $97 million and $122 million as of March 2, 2017 and September 1, 2016, respectively. |
Receivables |
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Receivables | Receivables
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Inventories |
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Inventories | Inventories
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Property, Plant, and Equipment |
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Property, Plant, and Equipment | Property, Plant, and Equipment
Depreciation expense was $976 million and $1.72 billion for the second quarter and first six months of 2017, respectively, and $745 million and $1.45 billion for the second quarter and first six months of 2016, respectively. In the fourth quarter of 2016, we revised the estimated useful lives of equipment in our DRAM wafer fabrication facilities from five to seven years, which reduced depreciation costs by approximately $100 million per quarter in 2017. |
Equity Method Investments |
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Equity Method Investments | Equity Method Investments
Equity in net income (loss) of equity method investees, net of tax, included the following:
Inotera Through December 6, 2016, we partnered with Nanya in Inotera, a Taiwan DRAM memory company, at which time we acquired the remaining 67% interest in Inotera. Historically, we accounted for our interest in Inotera on a two-month lag under the equity method. As a result of the Inotera Acquisition, we account for Inotera without a lag, consistent with our other wholly-owned subsidiaries. From January 2013 through December 2015, we purchased all of Inotera's DRAM output under supply agreements at prices reflecting discounts from market prices for our comparable components. After December 2015 and until our acquisition of the remaining interest in Inotera, the price for DRAM products purchased by us was based on a formula that equally shared margin between Inotera and us. We purchased $504 million of DRAM products from Inotera in the first quarter of 2017 and $326 million and $705 million in the second quarter and first six months of 2016, respectively. Tera Probe We have a 40% interest in Tera Probe, which provides semiconductor wafer testing and probe services to us and others. In the first quarter of 2017, we recorded an impairment charge of $16 million within equity in net income (loss) of equity method investees to write down the carrying value of our investment in Tera Probe to its fair value based on its trading price (Level 1). As of March 2, 2017, our proportionate share of Tera Probe's underlying equity exceeded our investment balance by $47 million, which is expected to be accreted to earnings over a weighted-average period of seven years. We incurred manufacturing costs for services performed by Tera Probe for us of $16 million and $32 million in the second quarter and first six months of 2017, respectively, and $18 million and $39 million in the second quarter and first six months of 2016, respectively. |
Intangible Assets and Goodwill |
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Intangible Assets and Goodwill | Intangible Assets and Goodwill
During the first six months of 2017 and 2016, we capitalized $14 million and $16 million, respectively, for product and process technology with weighted-average useful lives of ten years. Amortization expense was $27 million and $54 million for the second quarter and first six months of 2017, respectively, and $29 million and $60 million for the second quarter and first six months of 2016, respectively. Expected amortization expense is $55 million for the remainder of 2017, $95 million for 2018, $47 million for 2019, $31 million for 2020, and $27 million for 2021. |
Accounts Payable and Accrued Expenses |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses
As of September 1, 2016, related party payables included $266 million due to Inotera primarily for the purchase of DRAM products. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt
Capital Lease Obligations In the second quarter of 2017, we recorded capital lease obligations aggregating $82 million at a weighted-average effective interest rate of 2.9% and a weighted-average expected term of 7 years. In the first six months of 2017, we recorded capital lease obligations aggregating $133 million. 2021 MSAC Senior Secured Term Loan In November 2016, we entered into a five-year variable-rate facility agreement to obtain up to $800 million of financing, collateralized by certain production equipment. On December 2, 2016, we drew $450 million under the 2021 MSAC Term Loan and may utilize the remaining facility in multiple draws until June 10, 2017. Interest is payable quarterly at a per annum rate equal to three-month LIBOR plus 2.4%. Principal is payable in 16 equal quarterly installments beginning in March 2018. The 2021 MSAC Term Loan contains covenants which are customary for financings of this type, including negative covenants that limit or restrict our ability to create liens or dispose of the equipment securing the facility agreement. The 2021 MSAC Term Loan also contains a covenant that the ratio of the outstanding loan to the fair value of the equipment collateralizing the loan not exceed 0.8. If such ratio is exceeded, we are required to grant a security interest in additional equipment and/or prepay the 2021 MSAC Term Loan in an amount sufficient to reduce such ratio to 0.8 or less. The 2021 MSAC Term Loan also contains customary events of default which could result in the acceleration of all amounts to be immediately due and payable and cancellation of all commitments under the facility agreement. The 2021 MSAC Term Loan is guaranteed by Micron. 2021 MSTW Senior Secured Term Loan In connection with the Inotera Acquisition, on December 6, 2016, we drew 80 billion New Taiwan dollars (equivalent to $2.5 billion) under a collateralized, five-year term loan that bears interest at a variable per annum rate equal to the three-month or six-month TAIBOR, at our option, plus a margin of 2.05%. Principal under the 2021 MSTW Term Loan is payable in six equal semi-annual installments, commencing in June 2019, through December 2021. The 2021 MSTW Term Loan is collateralized by certain assets, including a real estate mortgage on Inotera's main production facility and site, a chattel mortgage over certain equipment of Inotera, all of the stock of our MSTW subsidiary, and the 82% of stock of Inotera owned by MSTW. The 2021 MSTW Term Loan is guaranteed by Micron. The 2021 MSTW Term Loan contains affirmative and negative covenants, including covenants that limit or restrict our ability to create liens in or dispose of collateral securing obligations under the 2021 MSTW Term Loan, mergers involving MSTW and/or Inotera, loans or guarantees to third parties by Inotera and/or MSTW, and MSTW's and/or Inotera's distribution of cash dividends. The 2021 MSTW Term Loan also contains financial covenants, which are tested semi-annually, as follows:
If MSTW fails to maintain a required financial covenant, the interest rate will be increased by 0.25% until such time as the required financial ratios are maintained. If MSTW's failure continues for two consecutive semi-annual periods, such will constitute an event of default that could result in all obligations owed under the 2021 MSTW Term Loan being accelerated to be immediately due and payable. Micron's failure to maintain a required financial covenant will only result in a 0.25% increase to the interest rate but will not constitute an event of default. The 2021 MSTW Term Loan also contains customary events of default. Convertible Senior Notes As of March 2, 2017, the trading price of our common stock was higher than the initial conversion prices of our 2032 Notes and our 2033 Notes. As a result, the conversion values for these notes exceeded the principal amounts by $1.21 billion as of March 2, 2017. 2022 Senior Secured Term Loan B Repricing Amendment In October 2016, we amended our 2022 Term Loan B, substantially all of which was treated as a debt modification, to reduce the margins added to the base rate from 5.00% to 2.75% and to the adjusted LIBOR rate from 6.00% to 3.75%. Tender Offers On March 27, 2017, we commenced tender offers to purchase up to $1.00 billion aggregate purchase price, exclusive of accrued interest (such aggregate purchase price subject to increase by us), of our 2022 senior notes, 2023 senior notes, 2024 senior notes, 2025 senior notes, and 2026 senior notes. |
Contingencies |
6 Months Ended |
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Mar. 02, 2017 | |
Loss Contingency [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-tech 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. On November 21, 2014, Elm 3DS Innovations, LLC ("Elm") filed a patent infringement action against Micron, MSP, and Micron Consumer Products Group, Inc. in the U.S. District Court for the District of Delaware. On March 27, 2015, Elm filed an amended complaint against the same entities. The amended complaint alleges that unspecified semiconductor products of ours that incorporate multiple stacked die infringe thirteen U.S. patents and seeks damages, attorneys' fees, and costs. On December 15, 2014, Innovative Memory Solutions, Inc. filed a patent infringement action against Micron in the U.S. District Court for the District of Delaware. The complaint alleges that a variety of our NAND Flash products infringe eight U.S. patents and seeks damages, attorneys' fees, and costs. On June 24, 2016, the President and Fellows of Harvard University filed a patent infringement action against Micron in the U.S. District Court for the District of Massachusetts. The complaint alleges that a variety of our DRAM products infringe two U.S. patents and seeks damages, injunctive relief, and other unspecified relief. Among other things, the above lawsuits pertain to certain of our DDR DRAM, DDR2 DRAM, DDR3 DRAM, DDR4 DRAM, SDR SDRAM, PSRAM, RLDRAM, LPDRAM, NAND Flash, and certain other memory products we manufacture, 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. A determination that our products or manufacturing processes infringe the intellectual property rights of others or entering into a license agreement covering such intellectual property could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing could have a material adverse effect on our business, results of operations, or financial condition. Qimonda On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda insolvency proceedings, filed suit against Micron and Micron Semiconductor B.V., our Netherlands subsidiary ("Micron B.V."), in the District Court of Munich, Civil Chamber. The complaint seeks to void under Section 133 of the German Insolvency Act a share purchase agreement between Micron B.V. and Qimonda signed in fall 2008 pursuant to which Micron B.V. purchased substantially all of Qimonda's shares of Inotera Memories, Inc. (the "Inotera Shares"), representing approximately 18% of Inotera's outstanding shares as of March 2, 2017, and seeks an order requiring us to re-transfer those shares to the Qimonda estate. The complaint also seeks, among other things, to recover damages for the alleged value of the joint venture relationship with Inotera and to terminate under Sections 103 or 133 of the German Insolvency Code a patent cross-license between us and Qimonda entered into at the same time as the share purchase agreement. Following a series of hearings with pleadings, arguments, and witnesses on behalf of the Qimonda estate, on March 13, 2014, the Court issued judgments: (1) ordering Micron B.V. to pay approximately $1 million in respect of certain Inotera shares sold in connection with the original share purchase; (2) ordering Micron B.V. to disclose certain information with respect to any Inotera Shares sold by it to third parties; (3) ordering Micron B.V. to disclose the benefits derived by it from ownership of the Inotera Shares, including in particular, any profits distributed on such shares and all other benefits; (4) denying Qimonda's claims against Micron for any damages relating to the joint venture relationship with Inotera; and (5) determining that Qimonda's obligations under the patent cross-license agreement are canceled. In addition, the Court issued interlocutory judgments ordering, among other things: (1) that Micron B.V. transfer to the Qimonda estate the Inotera Shares still owned by it and pay to the Qimonda estate compensation in an amount to be specified for any Inotera Shares sold to third parties; and (2) that Micron B.V. pay the Qimonda estate as compensation an amount to be specified for benefits derived by it from ownership of the Inotera Shares. The interlocutory judgments have no immediate, enforceable effect on us, and, accordingly, we expect to be able to continue to operate with full control of the Inotera Shares subject to further developments in the case. We have filed a notice of appeal, and the parties have submitted briefs to the appeals court. We are unable to predict the outcome of the matter 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 monetary damages, unspecified damages based on the benefits derived by Micron B.V. from the ownership of the Inotera Shares, and/or the termination of the patent cross-license, which could have a material adverse effect on our business, results of operation, or financial condition. 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. |
Redeemable Convertible Notes |
6 Months Ended |
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Mar. 02, 2017 | |
Temporary Equity [Abstract] | |
Redeemable Convertible Notes | Redeemable Convertible Notes Under the terms of the indentures governing the 2033 Notes, upon conversion, we would be required to pay cash equal to the lesser of (1) the aggregate principal amount or (2) the conversion value of the notes being converted. To the extent the conversion value exceeds the principal amount, we could pay cash, shares of common stock, or a combination thereof, at our option, for the amount of such excess. The closing price of our common stock met the thresholds for conversion for the calendar quarter ended December 31, 2016; therefore, the 2033 Notes are convertible by the holders through the calendar quarter ended March 31, 2017. As a result, the 2033 Notes were classified as current debt and the aggregate difference between the principal amount and the carrying value of $28 million was classified as redeemable convertible notes in the accompanying consolidated balance sheet. The closing price of our common stock did not meet the thresholds for the calendar quarter ended June 30, 2016; therefore, the 2033 Notes were not convertible by the holders as of September 1, 2016. Therefore, as of September 1, 2016, the 2033 Notes had been classified as noncurrent debt and the aggregate difference between the principal amount and the carrying value had been classified as additional capital. |
Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Micron Shareholders' Equity Treasury Stock: In connection with the Inotera Acquisition, in the second quarter of 2017, we sold 58 million shares of our common stock to Nanya for $986 million in cash, of which 54 million shares were issued from treasury stock. As a result, treasury stock decreased by $1.03 billion, resulting in a decrease in retained earnings of $104 million for the difference between the carrying value of the treasury stock and its $925 million fair value. Outstanding Capped Calls: Our capped calls are intended to reduce the effect of potential dilution from our convertible notes and provide for our receipt of cash or shares, at our election, from our counterparties if the trading price of our stock is above strike prices on the expiration dates. As of March 2, 2017, the dollar value of cash or shares that we would receive from our outstanding capped calls upon their expiration dates range from $0, if the trading price of our stock is below strike prices for all capped calls at expiration, to $652 million, if the trading price of our stock is at or above the cap prices for all capped calls. Expiration of Capped Calls: In the second quarter of 2017, we share-settled a portion of our 2032C and 2032D Capped Calls and received 4 million shares of our stock, equal to a value of $67 million, based on the volume-weighted trading stock prices at the expiration dates. The shares received were recorded as treasury stock. Shareholder Rights Agreement: On January 18, 2017, our shareholders approved a Section 382 Rights Agreement (the "Rights Agreement"), under which our shareholders of record as of the close of business on August 1, 2016 received one right for each share of common stock outstanding, which entitles shareholders to purchase additional shares of our common stock at a significant discount in the event of an ownership change. The Rights Agreement is intended to avoid an ownership change, as defined by Section 382 of the Internal Revenue Code of 1986, as amended, and thereby preserve our current ability to utilize certain net operating loss and credit carryforwards. Noncontrolling Interests in Subsidiaries
IMFT: Since IMFT's inception in 2006, we have owned 51% of IMFT, a joint venture between us and Intel that manufactures NAND Flash and 3D XPoint memory products exclusively for the members. The members share the output of IMFT generally in proportion to their investment. IMFT is governed by a Board of Managers for which the number of managers appointed by each member varies based on the members' respective ownership interests. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights. Through December 2018, Intel can put to us, and from January 2019 through December 2021, we can call from Intel, Intel's interest in IMFT, in either case, for an amount equal to the noncontrolling interest balance attributable to Intel at such time either member exercises its right. If Intel exercises its put right, we can elect to set the closing date of the transaction to be any time within two years following such election by Intel and can elect to receive financing of the purchase price from Intel for one to two years from the closing date. Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets. In the first six months of 2016, we and Intel contributed $38 million and $37 million, respectively, to IMFT. IMFT manufactures memory products using designs and technology we develop with Intel. We generally share with Intel the costs of product design and process development activities for NAND Flash and 3D XPoint memory at IMFT and our other facilities. Our R&D expenses were reduced by reimbursements from Intel of $59 million and $115 million for the second quarter and first six months of 2017, respectively, and $53 million and $99 million for the second quarter and first six months of 2016, respectively. Our sales include Non-Trade Non-Volatile Memory, which primarily consists of products sold to Intel through our IMFT joint venture at long-term negotiated prices approximating cost. Non-Trade Non-Volatile Memory sales to Intel were $158 million and $281 million for the second quarter and first six months of 2017, respectively, and $126 million and $252 million for the second quarter and first six months of 2016, respectively. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. Restrictions on Net Assets As a result of the corporate reorganization proceedings the MMJ Companies initiated in March 2012, and for so long as such proceedings continue, the MMJ Group is subject to certain restrictions on dividends, loans, and advances. In addition, the 2021 MSTW Term Loan contains covenants that limit or restrict the ability of MSTW and/or Inotera to distribute cash dividends. Also, our ability to access the cash and other assets of IMFT through dividends, loans, or advances, including to finance our other operations, is limited and is subject to agreement by Intel. As a result, our total restricted net assets (net assets less intercompany balances and noncontrolling interests) as of March 2, 2017 were $3.38 billion for the MMJ Group, $2.80 billion for MSTW and Inotera, and $894 million for IMFT, which included cash and equivalents of $529 million for the MMJ Group, $297 million for MSTW and Inotera, and $94 million for IMFT. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements All of our marketable debt and equity investments (excluding equity method investments) were classified as available-for-sale and carried at fair value. Amounts reported as cash and equivalents, receivables, and accounts payable and accrued expenses approximate fair value. The estimated fair value and carrying value of debt instruments (excluding the carrying value of the equity and mezzanine equity components of our convertible notes) were as follows:
The fair values of our convertible notes were determined based on inputs that were observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of our convertible notes when available, our stock price, and interest rates based on similar debt issued by parties with credit ratings similar to ours (Level 2). The fair values of our other debt instruments were estimated based on discounted cash flows using inputs that were observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of our notes, when available, and interest rates based on similar debt issued by parties with credit ratings similar to ours (Level 2). |
Derivative Instruments |
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Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We use derivative instruments to manage a portion of our exposure to changes in currency exchange rates from our monetary assets and liabilities denominated in currencies other than the U.S. dollar. We do not use derivative instruments for speculative purpose. Derivative Instruments without Hedge Accounting Designation Currency Derivatives: To hedge our exposures of monetary assets and liabilities to changes in currency exchange rates, we generally utilize a rolling hedge strategy with currency forward contracts that mature within 8 months. In addition, to mitigate the risk of the yen strengthening against the U.S. dollar on our MMJ creditor installment payments due in December 2017 and 2018, we entered into forward contracts to purchase 18 billion yen in December 2017 and 28 billion yen in December 2018. At the end of each reporting period, monetary assets and liabilities denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars and the associated outstanding forward contracts are marked to market. Currency forward contracts are valued at fair values based on the middle of bid and ask prices of dealers or exchange quotations (Level 2). Total notional amounts and gross fair values for derivative instruments without hedge accounting designation were as follows:
Realized and unrealized gains and losses on derivative instruments without hedge accounting designation as well as the change in the underlying monetary assets and liabilities due to changes in currency exchange rates are included in other non-operating income (expense), net. For derivative instruments without hedge accounting designation, we recognized net gains of $61 million and net losses of $117 million for the second quarter and first six months of 2017, respectively, and net gains of $92 million and $71 million for the second quarter and first six months of 2016, respectively. Derivative Instruments with Cash Flow Hedge Accounting Designation Currency Derivatives: We utilize currency forward contracts that generally mature within 12 months to hedge our exposure to changes in cash flows from changes in currency exchange rates for certain capital expenditures. Currency forward contracts are measured at fair value based on market-based observable inputs including currency exchange spot and forward rates, interest rates, and credit-risk spreads (Level 2). For derivative instruments designated as cash flow hedges, the effective portion of the realized and unrealized gain or loss on the derivatives is included as a component of accumulated other comprehensive income (loss). Amounts in accumulated other comprehensive income (loss) are reclassified into earnings in the same line items and in the same periods in which the underlying transactions affect earnings. The ineffective and excluded portion of the realized and unrealized gain or loss is included in other non-operating income (expense), net. Total notional amounts and gross fair values for derivative instruments with cash flow hedge accounting designation were as follows:
We recognized losses in accumulated other comprehensive income (loss) from the effective portion of cash flow hedges of $9 million in the first six months of 2017, and gains of $5 million and $1 million in the second quarter and first six months of 2016, respectively. Neither the ineffective portions of cash flow hedges recognized in other non-operating income (expense) nor amounts reclassified from accumulated other comprehensive income (loss) to earnings were material in the second quarters and first six months 2017 and 2016. The amount from cash flow hedges included in accumulated other comprehensive income (loss) that is expected to be reclassified into earnings in the next 12 months is not material. |
Equity Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Plans | Equity Plans As of March 2, 2017, 72 million shares were available for future awards under our equity plans. Stock Options
Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")
Stock-based Compensation Expense
As of March 2, 2017, $438 million of total unrecognized compensation costs for unvested awards was expected to be recognized through the second quarter of 2021, resulting in a weighted-average period of 1.3 years. Stock-based compensation expense does not reflect significant income tax benefits, which is consistent with our treatment of income or loss from our U.S. operations. |
Restructure and Asset Impairments |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructure and Asset Impairments | Restructure and Asset Impairments
In the fourth quarter of 2016, we initiated a restructure plan in response to business conditions and the need to accelerate focus on our key priorities (the "2016 Restructuring Plan"). The 2016 Restructuring Plan includes the elimination of certain projects and programs, the permanent closure of a number of open headcount requisitions, workforce reductions in certain areas of our business, and other non-headcount related spending reductions. As a result, we incurred charges of $33 million in the first six months of 2017 and $58 million in the fourth quarter of 2016 and do not expect to incur additional material charges. As of March 2, 2017 and September 1, 2016, we had accrued liabilities of $9 million and $24 million, respectively, related to the 2016 Restructuring Plan. |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Our income tax (provision) benefit consisted of the following:
We have a full valuation allowance for our net deferred tax asset associated with our U.S. operations. The amount of the deferred tax asset considered realizable could be adjusted if significant positive evidence increases. Income taxes on U.S. operations in the second quarters and first six months of 2017 and 2016 were substantially offset by changes in the valuation allowance. As of the date of the Inotera Acquisition, Inotera's net operating loss carryforward was $654 million, substantially all of which expires on various dates through 2022. In connection with the Inotera Acquisition, we assumed $54 million of uncertain tax positions, of which $26 million was recorded in purchase accounting as a reduction to deferred tax assets. The amounts recorded in purchase accounting primarily related to the surtax treatment of certain purchase accounting adjustments. During the second quarter of 2017, $21 million of the uncertain tax positions assumed in the Inotera Acquisition reached effective settlement with no impact to tax expense or purchase accounting. Although the timing of final resolution is uncertain, the estimated potential reduction in the Inotera unrecognized tax benefits in the next 12 months ranges from $0 to $33 million, including interest and penalties. We operate in a number of tax jurisdictions, including Singapore and Taiwan, where our earnings are indefinitely reinvested and are taxed at lower effective tax rates than the U.S. statutory rate and in a number of locations outside the U.S., including Singapore, where we have tax incentive arrangements that are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements, which expire in whole or in part at various dates through 2030, reduced our tax provision for the second quarter and first six months 2017 by $132 million (benefitting our diluted earnings per share by $0.11) and $172 million ($0.15 per diluted share), respectively, and were not material for the second quarter or first six months of 2016. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share
Antidilutive potential common shares that could dilute basic earnings per share in the future were 60 million and 62 million for the second quarter and first six months of 2017, respectively, and 185 million and 72 million for the second quarter and first six months of 2016, respectively. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Segment information reported herein is consistent with how it is reviewed and evaluated by our chief operating decision maker. We have the following four business units, which are our reportable segments: Compute and Networking Business Unit ("CNBU"): Includes memory products sold into compute, networking, graphics, and cloud server markets. Mobile Business Unit ("MBU"): Includes memory products sold into smartphone, tablet, and other mobile-device markets. Storage Business Unit ("SBU"): Includes memory products sold into enterprise, client, cloud, and removable storage markets. SBU also includes products sold to Intel through our IMFT joint venture. Embedded Business Unit ("EBU"): Includes memory products sold into automotive, industrial, connected home, and consumer electronics markets. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating expenses (income) are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. In the first quarter of 2017, we revised the measure of segment profitability reviewed by our chief operating decision maker and, as a result, certain items are no longer allocated to our business units. Comparative periods have been revised to reflect these changes. Items not allocated are identified in the table below. We do not identify or report internally our assets (other than goodwill) or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments.
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Certain Concentrations |
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Mar. 02, 2017 | |
Risks and Uncertainties [Abstract] | |
Certain Concentrations | Certain Concentrations Customer concentrations included net sales to Apple of 11% and Intel of 10% for the first six months of 2017. |
Business and Basis of Presentation (Policies) |
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Mar. 02, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the accounts of Micron and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended September 1, 2016. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. |
Reclassifications | Certain reclassifications have been made to prior period amounts to conform to current period presentation. |
Fiscal Period | Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal years 2017 and 2016 each contain 52 weeks. All period references are to our fiscal periods unless otherwise indicated |
Variable Interest Entities (Policies) |
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Mar. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | We have interests in entities that are 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. |
Acquisition of Inotera (Tables) - Inotera |
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inotera Acquisition | The consideration and provisional valuation of assets acquired and liabilities assumed are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro Forma Information including Inotera |
|
Cash and Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and equivalents and the fair values of available-for-sale investments | Cash and equivalents and the fair values of our available-for-sale investments, which approximated amortized costs, were as follows:
|
Receivables (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Receivables |
|
Inventories (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories |
|
Property, Plant, and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant, and Equipment |
|
Equity Method Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments |
Equity in net income (loss) of equity method investees, net of tax, included the following:
|
Intangible Assets and Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill |
|
Accounts Payable and Accrued Expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable And Accrued Expenses |
|
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt |
|
Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Noncontrolling Interests In Subsidiaries |
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IM Flash Technologies, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total IM Flash assets and liabilities | The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair value and carrying value of debt instruments | The estimated fair value and carrying value of debt instruments (excluding the carrying value of the equity and mezzanine equity components of our convertible notes) were as follows:
|
Derivative Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments without Hedge Accounting Designation | Total notional amounts and gross fair values for derivative instruments without hedge accounting designation were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments with Cash Flow Hedge Accounting Designation | Total notional amounts and gross fair values for derivative instruments with cash flow hedge accounting designation were as follows:
|
Equity Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options granted and assumptions used in Black-Scholes option valuation model |
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted stock awards activity |
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Stock-based compensation expense by caption |
|
Restructure and Asset Impairments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructure and Related Costs |
|
Other Non-Operating Income (Expense), Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense), Net |
|
Income Taxes Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax (Expense) Benefit | Our income tax (provision) benefit consisted of the following:
|
Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share |
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Results by Segment |
|
Recently Adopted Accounting Standards Recently Adopted Accounting Standards (Details) - New Accounting Pronouncement, Early Adoption, Effect - Accounting Standards Update 2016-09 $ in Millions |
3 Months Ended |
---|---|
Dec. 01, 2016
USD ($)
| |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Deferred Tax Assets, Increase from ASU adoption | $ 325 |
DTA Valuation Allowance, Increase from ASU adoption | $ 325 |
Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
ASU 2014-09 | Scenario, Previously Reported | Customers with Price Protection or Rights of Return | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Percent of revenue from customers with rights of return or price protection | 20.00% | 24.00% | 22.00% | 24.00% |
Acquisition of Inotera (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 06, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Sep. 01, 2016 |
Dec. 05, 2016 |
|
Acquisition of Inotera | |||||||
Gain on difference between fair value and carrying value of pre-acquisition equity interests in Inotera | $ 71 | $ 0 | $ 71 | $ 0 | |||
Consideration | |||||||
Payments attributed to intercompany balances with Inotera | 361 | 0 | |||||
Assets acquired and liabilities assumed | |||||||
Goodwill | 1,190 | 1,190 | $ 104 | ||||
Unaudited Pro Forma Financial Information | |||||||
Net sales | 4,648 | 2,927 | 8,613 | 6,272 | |||
Net income (loss) | 890 | (196) | 1,080 | (48) | |||
Net income (loss) attributable to Micron | $ 890 | $ (197) | $ 1,080 | $ (49) | |||
Earnings (loss) per share, basic (in dollars per share) | $ 0.81 | $ (0.18) | $ 0.98 | $ (0.04) | |||
Earnings (loss) per share, diluted (in dollars per share) | $ 0.77 | $ (0.18) | $ 0.93 | $ (0.04) | |||
Inotera | Nanya and certain of its affiliates | |||||||
Acquisition of Inotera | |||||||
Percentage interest in Inotera held by Nanya immediately prior to acquisition (in hundredths) | 32.00% | ||||||
Inotera | |||||||
Acquisition of Inotera | |||||||
Ownership interest in Inotera immediately prior to acquisition | 33.00% | ||||||
Percentage of Inotera voting interests acquired | 67.00% | ||||||
Micron Shares | |||||||
Cash proceeds received from issuance of Micron Shares to Nanya | $ 986 | ||||||
Consideration | |||||||
Cash paid for Inotera Acquisition | 4,099 | ||||||
Less cash received from selling Micron Shares | (986) | ||||||
Net cash paid for Inotera Acquisition | 3,113 | ||||||
Fair value of our previously-held equity interest in Inotera | 1,441 | ||||||
Fair value of Micron Shares exchanged for Inotera shares | 995 | ||||||
Other | 3 | ||||||
Payments attributed to intercompany balances with Inotera | (361) | ||||||
Total fair value of consideration for Inotera including previously held equity interests | 5,191 | ||||||
Assets acquired and liabilities assumed | |||||||
Cash and equivalents | 118 | ||||||
Inventories | 285 | ||||||
Other current assets | 27 | ||||||
Property, plant, and equipment | 3,781 | ||||||
Deferred tax assets | 74 | ||||||
Goodwill | 1,086 | ||||||
Other noncurrent assets | 117 | ||||||
Accounts payable and accrued expenses | (232) | ||||||
Long-term debt | (56) | ||||||
Other noncurrent liabilities | (9) | ||||||
Total assets acquired and liabilities assumed, including goodwill | $ 5,191 | ||||||
Inotera | Private Placement | |||||||
Micron Shares | |||||||
Number of Micron Shares issued to Nanya as consideration for Inotera shares not already owned (in shares) | 58 | ||||||
Cash proceeds received from issuance of Micron Shares to Nanya | $ 986 | ||||||
Consideration | |||||||
Less cash received from selling Micron Shares | (986) | ||||||
Inotera | Private Placement | Level 2 | |||||||
Micron Shares | |||||||
Discount for lack of transferability on Micron Shares issued to Nanya | $ 81 | ||||||
Inotera | Selling, general, and administrative | |||||||
Acquisition of Inotera | |||||||
Transaction costs incurred in connection with acquisition of Inotera | $ 13 | $ 3 | |||||
Inotera | Other non-operating income expense, net | Level 3 | |||||||
Acquisition of Inotera | |||||||
Gain on difference between fair value and carrying value of pre-acquisition equity interests in Inotera | $ 71 |
Cash and Investments (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Sep. 01, 2016 |
Sep. 03, 2015 |
||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | $ 3,633,000,000 | $ 3,078,000,000 | $ 3,633,000,000 | $ 3,078,000,000 | $ 4,140,000,000 | $ 2,287,000,000 | |||||||
Short-term investments | 265,000,000 | 265,000,000 | 258,000,000 | ||||||||||
Long-term marketable investments | [1] | 589,000,000 | 589,000,000 | 414,000,000 | |||||||||
Total fair value | 4,487,000,000 | 4,487,000,000 | 4,812,000,000 | ||||||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | |||||||||||||
Proceeds from sales of available-for-sale securities | 36,000,000 | $ 585,000,000 | 548,000,000 | $ 992,000,000 | |||||||||
Available-for-sale securities in an unrealized loss position for longer than twelve months | 0 | 0 | |||||||||||
Other noncurrent assets | |||||||||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | |||||||||||||
Noncurrent restricted cash and cash equivalents | 97,000,000 | $ 97,000,000 | 122,000,000 | ||||||||||
Minimum | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Long-term marketable investments, general maturities (in years) | 1 year | ||||||||||||
Maximum | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Long-term marketable investments, general maturities (in years) | 4 years | ||||||||||||
Cash | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | 2,744,000,000 | $ 2,744,000,000 | 2,258,000,000 | ||||||||||
Short-term investments | 0 | 0 | 0 | ||||||||||
Long-term marketable investments | 0 | 0 | 0 | ||||||||||
Total fair value | 2,744,000,000 | 2,744,000,000 | 2,258,000,000 | ||||||||||
Money market funds | Level 1 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [2] | 306,000,000 | 306,000,000 | 1,507,000,000 | |||||||||
Short-term investments | [2] | 0 | 0 | 0 | |||||||||
Long-term marketable investments | [1],[2] | 0 | 0 | 0 | |||||||||
Total fair value | [2] | 306,000,000 | 306,000,000 | 1,507,000,000 | |||||||||
Certificates of deposit | Level 2 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [3] | 456,000,000 | 456,000,000 | 373,000,000 | |||||||||
Short-term investments | [3] | 9,000,000 | 9,000,000 | 33,000,000 | |||||||||
Long-term marketable investments | [1],[3] | 8,000,000 | 8,000,000 | 0 | |||||||||
Total fair value | [3] | 473,000,000 | 473,000,000 | 406,000,000 | |||||||||
Corporate bonds | Level 2 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [3] | 13,000,000 | 13,000,000 | 0 | |||||||||
Short-term investments | [3] | 120,000,000 | 120,000,000 | 142,000,000 | |||||||||
Long-term marketable investments | [1],[3] | 300,000,000 | 300,000,000 | 235,000,000 | |||||||||
Total fair value | [3] | 433,000,000 | 433,000,000 | 377,000,000 | |||||||||
Government securities | Level 2 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [3] | 24,000,000 | 24,000,000 | 2,000,000 | |||||||||
Short-term investments | [3] | 76,000,000 | 76,000,000 | 62,000,000 | |||||||||
Long-term marketable investments | [1],[3] | 106,000,000 | 106,000,000 | 82,000,000 | |||||||||
Total fair value | [3] | 206,000,000 | 206,000,000 | 146,000,000 | |||||||||
Asset-backed securities | Level 2 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [3] | 0 | 0 | 0 | |||||||||
Short-term investments | [3] | 2,000,000 | 2,000,000 | 12,000,000 | |||||||||
Long-term marketable investments | [1],[3] | 175,000,000 | 175,000,000 | 97,000,000 | |||||||||
Total fair value | [3] | 177,000,000 | 177,000,000 | 109,000,000 | |||||||||
Commercial paper | Level 2 | |||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||
Cash and equivalents | [3] | 90,000,000 | 90,000,000 | 0 | |||||||||
Short-term investments | [3] | 58,000,000 | 58,000,000 | 9,000,000 | |||||||||
Long-term marketable investments | [1],[3] | 0 | 0 | 0 | |||||||||
Total fair value | [3] | $ 148,000,000 | $ 148,000,000 | $ 9,000,000 | |||||||||
|
Receivables (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Current Receivables [Abstract] | ||
Trade receivables | $ 2,528 | $ 1,765 |
Income and other taxes | 125 | 119 |
Other | 238 | 184 |
Receivables | $ 2,891 | $ 2,068 |
Inventories (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Finished goods | $ 862 | $ 899 |
Work in process | 1,833 | 1,761 |
Raw materials and supplies | 305 | 229 |
Inventories | $ 3,000 | $ 2,889 |
Property, Plant, and Equipment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Sep. 01, 2016 |
||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | $ 33,605 | |||||||||
Property, Plant and Equipment, Additions | 6,153 | |||||||||
Property, plant and equipment, retirements and other | (267) | |||||||||
Property, plant and equipment, gross ending balance | $ 39,491 | 39,491 | ||||||||
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||||||||||
Accumulated depreciation beginning balance | (18,919) | |||||||||
Accumulated depreciation, addition due to current period depreciation expense | (1,720) | |||||||||
Retirements and other changes to accumulated depreciation | 246 | |||||||||
Accumulated depreciation ending balance | (20,393) | (20,393) | ||||||||
Movement in Property, Plant and Equipment, Net [Roll Forward] | ||||||||||
Property, plant, and equipment, net | 19,098 | 19,098 | $ 14,686 | |||||||
Property, plant and equipment, net affect of additions and depreciation expense | 4,433 | |||||||||
Property, plant and equipment, net affect retirements and other adjustments | (21) | |||||||||
Depreciation [Abstract] | ||||||||||
Depreciation expense | 976 | $ 745 | 1,720 | $ 1,450 | ||||||
Land | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | 145 | |||||||||
Property, Plant and Equipment, Additions | 205 | |||||||||
Property, plant and equipment, retirements and other | (2) | |||||||||
Property, plant and equipment, gross ending balance | 348 | 348 | ||||||||
Buildings | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | 6,653 | |||||||||
Property, Plant and Equipment, Additions | 785 | |||||||||
Property, plant and equipment, retirements and other | (12) | |||||||||
Property, plant and equipment, gross ending balance | 7,426 | 7,426 | ||||||||
Equipment | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | [1] | 25,910 | ||||||||
Property, Plant and Equipment, Additions | 5,170 | |||||||||
Property, plant and equipment, retirements and other | (254) | |||||||||
Property, plant and equipment, gross ending balance | [1] | 30,826 | 30,826 | |||||||
Equipment | Equipment not placed into service | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | 1,470 | |||||||||
Property, plant and equipment, gross ending balance | 956 | 956 | ||||||||
Construction in progress | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | [2] | 475 | ||||||||
Property, Plant and Equipment, Net transfers out of CIP | (18) | |||||||||
Property, plant and equipment, retirements and other | 3 | |||||||||
Property, plant and equipment, gross ending balance | [2] | 460 | 460 | |||||||
Software | ||||||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||||||
Property, plant and equipment, gross beginning balance | 422 | |||||||||
Property, Plant and Equipment, Additions | 11 | |||||||||
Property, plant and equipment, retirements and other | (2) | |||||||||
Property, plant and equipment, gross ending balance | $ 431 | $ 431 | ||||||||
|
Property, Plant, and Equipment Change in Useful Lives (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Mar. 02, 2017 |
Dec. 01, 2016 |
Sep. 01, 2016 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Jun. 02, 2016 |
|
Change in Accounting Estimate [Line Items] | |||||||
Decrease in depreciation from change in useful lives | $ 976 | $ 745 | $ 1,720 | $ 1,450 | |||
Equipment | DRAM | Service Life | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Useful life of equipment | 7 years | 5 years | |||||
Scenario, Adjustment | Equipment | DRAM | Service Life | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Decrease in depreciation from change in useful lives | $ (100) | $ (100) |
Equity Method Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 02, 2017 |
Dec. 01, 2016 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Dec. 06, 2016 |
Sep. 01, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||||
Investment Balance | $ 38 | $ 38 | $ 1,364 | ||||
Equity in net income (loss) of equity method investees, net of tax | 7 | $ 5 | 5 | $ 64 | |||
Inotera | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment Balance | $ 0 | $ 0 | $ 1,314 | ||||
Ownership Percentage (in hundredths) | 0.00% | 0.00% | 33.00% | ||||
Equity in net income (loss) of equity method investees, net of tax | $ 0 | 2 | $ 9 | 54 | |||
Tera Probe | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment Balance | $ 23 | $ 23 | $ 36 | ||||
Ownership Percentage (in hundredths) | 40.00% | 40.00% | 40.00% | ||||
Equity in net income (loss) of equity method investees, net of tax | $ 7 | 3 | $ (5) | 6 | |||
Difference between cost of Tera Probe investment and underlying equity | 47 | $ 47 | |||||
Weighted-average period for remaining Tera Probe amortization (in years) | 7 years | ||||||
Tera Probe | Level 1 | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Other than temporary impairment in Tera Probe | $ 16 | ||||||
Other | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment Balance | 15 | $ 15 | $ 14 | ||||
Equity in net income (loss) of equity method investees, net of tax | $ 0 | $ 0 | $ 1 | $ 4 | |||
Inotera | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of Inotera voting interests acquired | 67.00% |
Equity Method Investments - 2 (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 02, 2017 |
Dec. 01, 2016 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Inotera | Inventories | DRAM | |||||
Related Party Transaction [Line Items] | |||||
Purchases of DRAM products from Inotera | $ 504 | $ 326 | $ 705 | ||
Tera Probe | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases from Tera Probe | $ 16 | $ 18 | $ 32 | $ 39 |
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Sep. 01, 2016 |
|
Amortizing assets [Line Items] | |||||
Amortizing assets, Gross Amount | $ 756 | $ 756 | $ 758 | ||
Accumulated Amortization | (439) | (439) | (402) | ||
Amortization expense for intangible assets | 27 | $ 29 | 54 | $ 60 | |
Annual amortization expense for intangible assets [Abstract] | |||||
Remainder of 2017 | 55 | 55 | |||
2018 | 95 | 95 | |||
2019 | 47 | 47 | |||
2020 | 31 | 31 | |||
2021 | 27 | 27 | |||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||
Total intangible assets, Gross Amount (excluding goodwill) | 864 | 864 | 866 | ||
Goodwill | 1,190 | 1,190 | 104 | ||
In-process R&D | |||||
Non-amortizing assets [Line Items] | |||||
Non-amortizing assets, Gross Amount | 108 | 108 | 108 | ||
Product and process technology | |||||
Amortizing assets [Line Items] | |||||
Amortizing assets, Gross Amount | 755 | 755 | 757 | ||
Accumulated Amortization | (439) | (439) | (402) | ||
Product and process technology intangible asset capitalized during period | $ 14 | $ 16 | |||
Product and process technology intangible asset capitalized during period, weighted-average useful lives (in years) | 10 years | 10 years | |||
Other | |||||
Amortizing assets [Line Items] | |||||
Amortizing assets, Gross Amount | 1 | $ 1 | 1 | ||
Accumulated Amortization | $ 0 | $ 0 | $ 0 |
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Accounts payable | $ 1,380 | $ 1,186 |
Property, plant, and equipment payables | 1,378 | 1,649 |
Salaries, wages, and benefits | 447 | 289 |
Customer advances | 153 | 132 |
Income and other taxes | 117 | 41 |
Related party payables | 7 | 273 |
Other | 319 | 309 |
Total accounts payable and accrued expenses | $ 3,801 | 3,879 |
Inotera | DRAM | ||
Related party payables | $ 266 |
Debt - Schedule of Long-term Debt (Details) $ in Millions, TWD in Billions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 06, 2016
USD ($)
payment
|
Dec. 06, 2016
TWD
payment
|
Dec. 02, 2016
USD ($)
|
Oct. 26, 2016 |
Mar. 02, 2017
USD ($)
payment
|
Mar. 02, 2017
USD ($)
payment
|
Mar. 02, 2017
USD ($)
payment
d
|
Mar. 27, 2017
USD ($)
|
Mar. 02, 2017
TWD
payment
|
Sep. 01, 2016
USD ($)
|
|||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 1,117 | $ 1,117 | $ 1,117 | $ 756 | ||||||||||||
Long-term debt | 11,308 | 11,308 | 11,308 | 9,154 | ||||||||||||
Total Debt | 12,425 | 12,425 | 12,425 | 9,910 | ||||||||||||
Reorganization obligation | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | 148 | 148 | 148 | 189 | ||||||||||||
Long-term debt | 446 | 446 | 446 | 680 | ||||||||||||
Total Debt | $ 594 | $ 594 | $ 594 | 869 | ||||||||||||
Effective rate (in ten thousandths) | 6.52% | 6.52% | 6.52% | 6.52% | ||||||||||||
Capital lease obligations | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 349 | $ 349 | $ 349 | 380 | ||||||||||||
Long-term debt | 914 | 914 | 914 | 1,026 | ||||||||||||
Total Debt | 1,263 | $ 1,263 | 1,263 | 1,406 | ||||||||||||
Capital Lease Obligations | ||||||||||||||||
Capital lease obligation incurred | $ 82 | $ 133 | ||||||||||||||
Capital lease obligations | Weighted Average | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Effective rate (in ten thousandths) | 3.42% | 3.42% | 3.42% | 3.42% | ||||||||||||
Capital Lease Obligations | ||||||||||||||||
Weighted average effective interest rate incurred in period (in thousandths) | 2.90% | |||||||||||||||
Weighted-average expected capital lease term | 7 years | |||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt instrument, original term | 7 years | |||||||||||||||
Secured Debt | 2021 MSAC senior secured term loan | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 445 | 445 | 445 | 0 | ||||||||||||
Total Debt | $ 445 | $ 445 | $ 445 | 0 | ||||||||||||
Stated rate | 3.464% | 3.464% | 3.464% | 3.464% | ||||||||||||
Effective rate (in ten thousandths) | 3.87% | 3.87% | 3.87% | 3.87% | ||||||||||||
Capital Lease Obligations | ||||||||||||||||
Weighted-average expected capital lease term | 5 years | |||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt instrument, original term | 5 years | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | $ 800 | $ 800 | |||||||||||||
Draw on facility agreement | $ 450 | |||||||||||||||
Debt instruments number of periodic payments | payment | 16 | 16 | 16 | 16 | ||||||||||||
Secured Debt | 2021 MSAC senior secured term loan | Maximum | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt Instrument, covenant, ratio of debt to fair value of equipment | 0.8 | 0.8 | 0.8 | 0.8 | ||||||||||||
Secured Debt | 2021 MSAC senior secured term loan | LIBOR | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt Instrument Variable Reference Rate Period 1 | 3 months | |||||||||||||||
Margin on variable rate financing (in thousandths) | 2.40% | |||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 2.40% | |||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 2,584 | 2,584 | 2,584 | 0 | ||||||||||||
Total Debt | $ 2,584 | $ 2,584 | $ 2,584 | 0 | ||||||||||||
Stated rate | 2.852% | 2.852% | 2.852% | 2.852% | ||||||||||||
Effective rate (in ten thousandths) | 3.02% | 3.02% | 3.02% | 3.02% | ||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant Compliance, Penalty Interest Percent | 0.25% | 0.25% | 0.25% | 0.25% | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2017 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | $ 9,000 | $ 9,000 | $ 9,000 | |||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2017_2018 | Micron Semiconductor Taiwan Co. Ltd. | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | TWD | TWD 4.0 | |||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2019_2020 | Micron Semiconductor Taiwan Co. Ltd. | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | TWD | 6.5 | |||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2021 | Micron Semiconductor Taiwan Co. Ltd. | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | TWD | TWD 12.0 | |||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2018_2019 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | 12,500 | 12,500 | 12,500 | |||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Minimum | Debt Covenant Period 2020_2021 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Tangible net worth | $ 16,500 | $ 16,500 | $ 16,500 | |||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Maximum | Debt Covenant Period 2017 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 3.5 | 3.5 | 3.5 | 3.5 | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Maximum | Debt Covenant Period 2017_2018 | Micron Semiconductor Taiwan Co. Ltd. | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 5.5 | 5.5 | 5.5 | 5.5 | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Maximum | Debt Covenant Period 2019_2021 | Micron Semiconductor Taiwan Co. Ltd. | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 4.5 | 4.5 | 4.5 | 4.5 | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Maximum | Debt Covenant Period 2018_2019 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 3.0 | 3.0 | 3.0 | 3.0 | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Maximum | Debt Covenant Period 2020_2021 | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 2.5 | 2.5 | 2.5 | 2.5 | ||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Inotera | ||||||||||||||||
Capital Lease Obligations | ||||||||||||||||
Weighted-average expected capital lease term | 5 years | 5 years | ||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt instrument, original term | 5 years | 5 years | ||||||||||||||
Debt instruments number of periodic payments | payment | 6 | 6 | ||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
2021 Term loan draw | $ 2,500 | TWD 80.0 | ||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Inotera | Micron Semiconductor Taiwan Co. Ltd. | Inotera Stock | ||||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Percentage of post-acquisition Inotera shares subject to collateralization | 82.00% | 82.00% | ||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Inotera | Minimum | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt Instrument Variable Reference Rate Period 1 | 3 months | 3 months | ||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Inotera | Maximum | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Debt Instrument Variable Reference Rate Period 1 | 6 months | 6 months | ||||||||||||||
Secured Debt | 2021 MSTW senior secured term loan | Inotera | Taipei Interbank Offered Rate TAIBOR | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 2.05% | 2.05% | ||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 2.05% | 2.05% | ||||||||||||||
Secured Debt | 2022 senior secured term loan B | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 5 | $ 5 | $ 5 | 5 | ||||||||||||
Long-term debt | 728 | 728 | 728 | 730 | ||||||||||||
Total Debt | $ 733 | $ 733 | $ 733 | 735 | ||||||||||||
Stated rate | 4.54% | 4.54% | 4.54% | 4.54% | ||||||||||||
Effective rate (in ten thousandths) | 4.95% | 4.95% | 4.95% | 4.95% | ||||||||||||
Secured Debt | 2022 senior secured term loan B | Variable Interest Rate Base Rate Option | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 5.00% | 2.75% | ||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 5.00% | 2.75% | ||||||||||||||
Secured Debt | 2022 senior secured term loan B | LIBOR | Variable Interest Rate LIBOR Rate Option | ||||||||||||||||
Secured Debt Instruments | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 6.00% | 3.75% | ||||||||||||||
2021 MSTW Senior Secured Term Loan | ||||||||||||||||
Margin on variable rate financing (in thousandths) | 6.00% | 3.75% | ||||||||||||||
Secured Debt | 2023 senior secured notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 1,238 | 1,238 | 1,238 | 1,237 | ||||||||||||
Total Debt | $ 1,238 | $ 1,238 | $ 1,238 | 1,237 | ||||||||||||
Stated rate | 7.50% | 7.50% | 7.50% | 7.50% | ||||||||||||
Effective rate (in ten thousandths) | 7.69% | 7.69% | 7.69% | 7.69% | ||||||||||||
Corporate bonds | Subsequent Event | ||||||||||||||||
Tender Offers | ||||||||||||||||
Cash tender offer for the repurchase of debt | $ 1,000 | |||||||||||||||
Corporate bonds | 2022 senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 591 | 591 | 591 | 590 | ||||||||||||
Total Debt | $ 591 | $ 591 | $ 591 | 590 | ||||||||||||
Stated rate | 5.875% | 5.875% | 5.875% | 5.875% | ||||||||||||
Effective rate (in ten thousandths) | 6.14% | 6.14% | 6.14% | 6.14% | ||||||||||||
Corporate bonds | 2023 senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 990 | 990 | 990 | 990 | ||||||||||||
Total Debt | $ 990 | $ 990 | $ 990 | 990 | ||||||||||||
Stated rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||||||
Effective rate (in ten thousandths) | 5.43% | 5.43% | 5.43% | 5.43% | ||||||||||||
Corporate bonds | 2024 senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 546 | 546 | 546 | 546 | ||||||||||||
Total Debt | $ 546 | $ 546 | $ 546 | 546 | ||||||||||||
Stated rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||||||
Effective rate (in ten thousandths) | 5.38% | 5.38% | 5.38% | 5.38% | ||||||||||||
Corporate bonds | 2025 senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 1,140 | 1,140 | 1,140 | 1,139 | ||||||||||||
Total Debt | $ 1,140 | $ 1,140 | $ 1,140 | 1,139 | ||||||||||||
Stated rate | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||||
Effective rate (in ten thousandths) | 5.56% | 5.56% | 5.56% | 5.56% | ||||||||||||
Corporate bonds | 2026 senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 446 | 446 | 446 | 446 | ||||||||||||
Total Debt | $ 446 | $ 446 | $ 446 | 446 | ||||||||||||
Stated rate | 5.625% | 5.625% | 5.625% | 5.625% | ||||||||||||
Effective rate (in ten thousandths) | 5.73% | 5.73% | 5.73% | 5.73% | ||||||||||||
Convertible Debt | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Conversion rights, threshold percentage of applicable conversion price (in hundredths) | 130.00% | |||||||||||||||
Conversion rights, minimum number of trading days (in days) | d | 20 | |||||||||||||||
Conversion rights, consecutive trading period (in days) | 30 days | |||||||||||||||
Convertible Senior Notes | ||||||||||||||||
Conversion Value in Excess of Principal | $ 1,210 | |||||||||||||||
Convertible Debt | 2032C convertible senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | [1] | $ 0 | [1] | 0 | [1] | 0 | |||||||||
Long-term debt | 207 | [1] | 207 | [1] | 207 | [1] | 204 | |||||||||
Total Debt | $ 207 | [1] | $ 207 | [1] | $ 207 | [1] | 204 | |||||||||
Stated rate | 2.375% | 2.375% | 2.375% | 2.375% | ||||||||||||
Effective rate (in ten thousandths) | 5.95% | 5.95% | 5.95% | 5.95% | ||||||||||||
Convertible Debt | 2032D convertible senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | 0 | |||||||||
Long-term debt | 156 | [1] | 156 | [1] | 156 | [1] | 154 | |||||||||
Total Debt | $ 156 | [1] | $ 156 | [1] | $ 156 | [1] | 154 | |||||||||
Stated rate | 3.125% | 3.125% | 3.125% | 3.125% | ||||||||||||
Effective rate (in ten thousandths) | 6.33% | 6.33% | 6.33% | 6.33% | ||||||||||||
Convertible Debt | 2033E convertible senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | [1] | $ 171 | $ 171 | $ 171 | 0 | |||||||||||
Long-term debt | [1] | 0 | 0 | 0 | 168 | |||||||||||
Total Debt | [1] | $ 171 | $ 171 | $ 171 | 168 | |||||||||||
Stated rate | 1.625% | 1.625% | 1.625% | 1.625% | ||||||||||||
Effective rate (in ten thousandths) | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||||||
Convertible Debt | 2033F convertible senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | [1] | $ 274 | $ 274 | $ 274 | 0 | |||||||||||
Long-term debt | [1] | 0 | 0 | 0 | 271 | |||||||||||
Total Debt | [1] | $ 274 | $ 274 | $ 274 | 271 | |||||||||||
Stated rate | 2.125% | 2.125% | 2.125% | 2.125% | ||||||||||||
Effective rate (in ten thousandths) | 4.93% | 4.93% | 4.93% | 4.93% | ||||||||||||
Convertible Debt | 2043G convertible senior notes | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 0 | $ 0 | $ 0 | 0 | ||||||||||||
Long-term debt | 664 | 664 | 664 | 657 | ||||||||||||
Total Debt | $ 664 | $ 664 | $ 664 | 657 | ||||||||||||
Stated rate | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||||||
Effective rate (in ten thousandths) | 6.76% | 6.76% | 6.76% | 6.76% | ||||||||||||
Other notes payable | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Current debt | $ 170 | $ 170 | $ 170 | 182 | ||||||||||||
Long-term debt | 213 | 213 | 213 | 316 | ||||||||||||
Total Debt | $ 383 | $ 383 | $ 383 | $ 498 | ||||||||||||
Other notes payable | Weighted Average | ||||||||||||||||
Long-term Debt by Current and Noncurrent | ||||||||||||||||
Stated rate | 2.189% | 2.189% | 2.189% | 2.189% | ||||||||||||
Effective rate (in ten thousandths) | 2.59% | 2.59% | 2.59% | 2.59% | ||||||||||||
|
Contingencies (Details) - Pending Litigation $ in Millions |
6 Months Ended |
---|---|
Mar. 02, 2017
USD ($)
patent
| |
Qimonda AG Inotera Share Purchase Proceedings | |
Loss Contingencies [Line Items] | |
Percentage of total Inotera shares subject to litigation | 18.00% |
Loss contingency, judgment under appeal | $ | $ 1 |
Patent Matters | Elm 3DS Innovations, LLC | |
Loss Contingencies [Line Items] | |
Number of patents allegedly infringed | 13 |
Patent Matters | Innovative Memory Solutions, Inc. | |
Loss Contingencies [Line Items] | |
Number of patents allegedly infringed | 8 |
Patent Matters | Harvard University | |
Loss Contingencies [Line Items] | |
Number of patents allegedly infringed | 2 |
Redeemable Convertible Notes (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Redeemable convertible notes | $ 28 | $ 0 |
2033E and 2033F convertible senior notes | ||
Debt Instrument [Line Items] | ||
Redeemable convertible notes | $ 28 |
Equity - Treasury Stock (Details) - Inotera shares in Millions, $ in Millions |
Dec. 06, 2016
USD ($)
shares
|
---|---|
Class of Stock [Line Items] | |
Cash proceeds received from issuance of Micron Shares to Nanya (treasury shares component) | $ 986 |
Private Placement | |
Class of Stock [Line Items] | |
Number of Micron Shares issued to Nanya as consideration for Inotera shares not already owned (in shares) | shares | 58 |
Cash proceeds received from issuance of Micron Shares to Nanya (treasury shares component) | $ 986 |
Private Placement | Treasury Stock, Common | |
Class of Stock [Line Items] | |
Cash proceeds received from issuance of Micron Shares to Nanya (treasury shares component) | $ 925 |
Treasury shares included in sale of shares to Nanya | shares | 54 |
Decrease in treasury stock as a result of the issuance of shares to Nanya | $ 1,030 |
Decrease in retained earnings due to reissuance of treasury shares at price lower than purchase price | $ 104 |
Equity - Outstanding Capped Calls (Details) - USD ($) shares in Millions |
6 Months Ended | |
---|---|---|
Mar. 02, 2017 |
Sep. 01, 2016 |
|
Option Indexed to Issuer's Equity [Line Items] | ||
Treasury Stock, held (in shares) | 4 | 54 |
Call Option | Purchased options | Minimum | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Range of value at expiration of outstanding capped calls | $ 0 | |
Call Option | Purchased options | Maximum | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Range of value at expiration of outstanding capped calls | $ 652,000,000 | |
Call Option | Purchased options | 2032C and 2032D convertible senior notes | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Capped call settlement shares received | 4 | |
Capped call settlement, dollar value of shares received | $ 67,000,000 | |
Treasury Stock, held (in shares) | 4 |
Equity - Shareholder Rights Agreement (Details) |
Mar. 02, 2017
right_per_share
|
---|---|
Equity [Abstract] | |
Shareholder Rights Plan, Purchase Discount Rights Received (per share) | 1 |
Equity - NCI and Consolidated VIE Disclosures (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
Sep. 01, 2016 |
|
Variable Interest Entity [Line Items] | |||||
Noncontrolling interests in subsidiaries | $ 848 | $ 848 | $ 848 | ||
Noncontrolling Interest Items [Abstract] | |||||
R and D expenses reduced by reimbursements from Intel | 473 | $ 403 | 943 | $ 824 | |
Net sales | 4,648 | 2,934 | 8,618 | 6,284 | |
Intel | Non-Volatile Memory | Non-Trade Sales | |||||
Noncontrolling Interest Items [Abstract] | |||||
Net sales | 158 | 126 | 281 | 252 | |
Intel | Collaborative Arrangement Process Design and Process Development | |||||
Noncontrolling Interest Items [Abstract] | |||||
R and D expenses reduced by reimbursements from Intel | (59) | $ (53) | (115) | (99) | |
Other consolidated entities | |||||
Variable Interest Entity [Line Items] | |||||
Noncontrolling interests in subsidiaries | 16 | 16 | 16 | ||
Variable Interest Entity, Primary Beneficiary | IM Flash Technologies, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Noncontrolling interests in subsidiaries | $ 832 | $ 832 | $ 832 | ||
Noncontrolling interest percentage (in hundredths) | 49.00% | 49.00% | 49.00% | ||
Ownership percentage after stock transactions during period (in hundredths) | 51.00% | 51.00% | |||
Noncontrolling Interest Items [Abstract] | |||||
Micron contributions to IMFT | 38 | ||||
Intel contributions to IMFT | $ 37 |
Equity - Consolidated VIE assets and liabilities (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
Mar. 03, 2016 |
Sep. 03, 2015 |
|||
---|---|---|---|---|---|---|---|
Assets | |||||||
Cash and equivalents | $ 3,633 | $ 4,140 | $ 3,078 | $ 2,287 | |||
Receivables | 2,891 | 2,068 | |||||
Inventories | 3,000 | 2,889 | |||||
Other current assets | 156 | 140 | |||||
Total current assets | 9,945 | 9,495 | |||||
Property, plant, and equipment, net | 19,098 | 14,686 | |||||
Other noncurrent assets | 391 | 356 | |||||
Total assets | 32,355 | 27,540 | |||||
Liabilities | |||||||
Accounts payable and accrued expenses | 3,801 | 3,879 | |||||
Deferred income | 289 | 200 | |||||
Current debt | 1,117 | 756 | |||||
Total current liabilities | 5,207 | 4,835 | |||||
Long-term debt | 11,308 | 9,154 | |||||
Other noncurrent liabilities | 677 | 623 | |||||
Total liabilities | 17,192 | 14,612 | |||||
Variable Interest Entity, Primary Beneficiary | IM Flash Technologies, LLC | |||||||
Assets | |||||||
Cash and equivalents | [1] | 94 | 98 | ||||
Receivables | [1] | 103 | 89 | ||||
Inventories | [1] | 102 | 68 | ||||
Other current assets | [1] | 6 | 6 | ||||
Total current assets | [1] | 305 | 261 | ||||
Property, plant, and equipment, net | [1] | 1,680 | 1,792 | ||||
Other noncurrent assets | [1] | 42 | 50 | ||||
Total assets | [1] | 2,027 | 2,103 | ||||
Liabilities | |||||||
Accounts payable and accrued expenses | [1] | 151 | 175 | ||||
Deferred income | [1] | 6 | 7 | ||||
Current debt | [1] | 16 | 16 | ||||
Total current liabilities | [1] | 173 | 198 | ||||
Long-term debt | [1] | 37 | 66 | ||||
Other noncurrent liabilities | [1] | 91 | 94 | ||||
Total liabilities | [1] | $ 301 | $ 358 | ||||
|
Equity - Restrictions on Net Assets (Details) $ in Millions |
Mar. 02, 2017
USD ($)
|
---|---|
MMJ Group | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | $ 3,380 |
MSTW and Inotera | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 2,800 |
IM Flash Technologies, LLC | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 894 |
Cash and Cash Equivalents | MMJ Group | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 529 |
Cash and Cash Equivalents | MSTW and Inotera | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 297 |
Cash and Cash Equivalents | IM Flash Technologies, LLC | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | $ 94 |
Fair Value Measurements - Fair and Carrying Value (Details) - USD ($) $ in Millions |
Mar. 02, 2017 |
Sep. 01, 2016 |
---|---|---|
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 12,425 | $ 9,910 |
Fair Value | Level 2 | Notes and MMJ creditor installment payments | ||
Fair value disclosure [Line Items] | ||
Fair value of Notes and MMJ creditor installment payments | 10,092 | 7,257 |
Fair Value | Level 2 | Convertible Notes | ||
Fair value disclosure [Line Items] | ||
Fair value of Convertible notes | 3,191 | 2,408 |
Carrying Value | Notes and MMJ creditor installment payments | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | 9,690 | 7,050 |
Carrying Value | Convertible Notes | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 1,472 | $ 1,454 |
Derivative Instruments - Fair Values (Details) - Forward Contracts $ in Millions, ¥ in Billions |
6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2017
USD ($)
|
Mar. 02, 2017
JPY (¥)
|
Sep. 01, 2016
USD ($)
|
||||||||
Not Designated as Hedging Instrument | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | $ 4,193 | $ 2,052 | ||||||||
Foreign Currency Cash Flow Hedges [Abstract] | ||||||||||
General maturity of non-designated currency forward contracts (in days) | 8 months | |||||||||
Not Designated as Hedging Instrument | 2017 Reorganization Payment Hedges | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | ¥ | ¥ 18 | |||||||||
Not Designated as Hedging Instrument | 2018 Reorganization Payment Hedges | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | ¥ | ¥ 28 | |||||||||
Not Designated as Hedging Instrument | New Taiwan dollar | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | $ 2,855 | |||||||||
Not Designated as Hedging Instrument | Yen | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | 1,033 | 1,668 | ||||||||
Not Designated as Hedging Instrument | Euro | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | 151 | 93 | ||||||||
Not Designated as Hedging Instrument | Singapore dollar | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | 134 | 206 | ||||||||
Not Designated as Hedging Instrument | Other | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | 20 | 85 | ||||||||
Not Designated as Hedging Instrument | Accounts receivable | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 57 | 0 | |||||||
Not Designated as Hedging Instrument | Accounts receivable | New Taiwan dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 57 | ||||||||
Not Designated as Hedging Instrument | Accounts receivable | Yen | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Accounts receivable | Euro | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Accounts receivable | Singapore dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Accounts receivable | Other | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | (16) | (11) | |||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | New Taiwan dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | (2) | ||||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Yen | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | (12) | (10) | |||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Euro | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | (1) | 0 | |||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Singapore dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | (1) | 0 | |||||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Other | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | 0 | (1) | |||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | (4) | 0 | |||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | New Taiwan dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | 0 | ||||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Yen | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | (4) | 0 | |||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Euro | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Singapore dollar | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | 0 | 0 | |||||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Other | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [3] | 0 | 0 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | $ 12 | 172 | ||||||||
Foreign Currency Cash Flow Hedges [Abstract] | ||||||||||
General maturity of hedge contracts (in months) | 12 months | |||||||||
Designated as Hedging Instrument | Cash Flow Hedging | Yen | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | $ 6 | 107 | ||||||||
Designated as Hedging Instrument | Cash Flow Hedging | Euro | ||||||||||
Notional Disclosures [Abstract] | ||||||||||
Notional Amount Outstanding | 6 | 65 | ||||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 2 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | Yen | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 2 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | Euro | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Assets | [1] | 0 | 0 | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | 0 | (2) | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | Yen | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | 0 | (1) | |||||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | Euro | ||||||||||
Derivative, Fair Value, Net [Abstract] | ||||||||||
Fair Value of Liabilities | [2] | $ 0 | $ (1) | |||||||
|
Derivative Instruments - Hedging Relationship (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Not Designated as Hedging Instrument | Other non-operating income expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) from derivative instruments without hedge accounting designation | $ 61 | $ 92 | $ (117) | $ 71 |
Designated as Hedging Instrument | Cash Flow Hedging | Other comprehensive income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, effective portion of cash flow hedges | $ 5 | $ (9) | $ 1 |
Equity Plans - Share Based Compensation (Details) - $ / shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future awards (in shares) | 72 | 72 | ||
Stock options | ||||
Stock Options [Abstract] | ||||
Stock options granted (in shares) | 4 | 5 | 6 | 7 |
Weighted-average grant-date fair values per share (in dollars per share) | $ 8.37 | $ 6.59 | $ 8.15 | $ 7.01 |
Average expected life (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted-average expected volatility (in hundredths) | 47.00% | 47.00% | 47.00% | 47.00% |
Weighted-average risk-free interest rate (in thousandths) | 1.90% | 1.70% | 1.80% | 1.70% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Restricted stock awards | ||||
Restricted Stock and Restricted Stock Units (Restricted Stock Awards) | ||||
Restricted stock awards granted (in shares) | 5 | 6 | 8 | 9 |
Weighted-average grant-date fair values per share (in dollars per share) | $ 18.67 | $ 14.71 | $ 18.52 | $ 15.84 |
Equity Plans - Stock-based compensation expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 55 | $ 55 | $ 101 | $ 101 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total unrecognized compensation costs, net of estimated forfeitures, related to non-vested awards expected to be recognized | 438 | $ 438 | ||
Weighted average period that unrecognized compensation costs is expected to be recognized (in years) | 1 year 4 months | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 18 | 22 | $ 35 | 42 |
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 37 | 33 | 66 | 59 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 23 | 19 | 42 | 37 |
Selling, general, and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 18 | 21 | 33 | 38 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 14 | $ 15 | $ 26 | $ 26 |
Restructure and Asset Impairments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 02, 2017 |
Sep. 01, 2016 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructure and asset impairments | $ 4 | $ 1 | $ 33 | $ 16 | |
2016 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
2016 Restructuring Plan | 4 | $ 58 | 0 | 33 | 0 |
Accrued restructuring reserve for the 2016 Restructuring Plan | 9 | $ 24 | 9 | ||
Other Restructuring Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructure and asset impairments | $ 0 | $ 1 | $ 0 | $ 16 |
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Other Nonoperating Income (Expense) [Abstract] | ||||
Loss from changes in currency exchange rates | $ (28) | $ (5) | $ (40) | $ (8) |
Gain on remeasurement of previously-held equity interest in Inotera | 71 | 0 | 71 | 0 |
Other | (9) | (1) | (11) | (2) |
Other non-operating income (expense), net | $ 34 | $ (6) | $ 20 | $ (10) |
Income Taxes Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Utilization of and other changes in net deferred tax assets of MMJ, MMT, and Inotera | $ (8) | $ (10) | $ (21) | $ (32) |
U.S. valuation allowance release resulting from business acquisition | 0 | 0 | 0 | 41 |
Other, income tax (provision) benefit, primarily other non-U.S. operations | (30) | 5 | (48) | (10) |
Income tax (provision) benefit | $ (38) | $ (5) | $ (69) | $ (1) |
Income Tax Unrecognized Tax Benefits (Details) - Inotera - USD ($) |
3 Months Ended | |
---|---|---|
Dec. 06, 2016 |
Mar. 02, 2017 |
|
Income Tax Contingency [Line Items] | ||
Uncertain tax positions recognized in connection with Inotera Acquisition | $ 54,000,000 | |
Effective settlement of uncertain positions assumed in the Inotera Acquisition | $ 21,000,000 | |
Uncertain Tax Position Arising From Purchase Accounting [Member] | ||
Income Tax Contingency [Line Items] | ||
Uncertain tax positions recognized in connection with Inotera Acquisition | 26,000,000 | |
Minimum | ||
Income Tax Contingency [Line Items] | ||
Estimated potential reduction in unrecognized tax benefits in the next 12 months | 0 | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
Estimated potential reduction in unrecognized tax benefits in the next 12 months | $ 33,000,000 | |
Foreign | ||
Income Tax Contingency [Line Items] | ||
Inotera's foreign net operating loss carryforward | $ 654,000,000 |
Income Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Mar. 02, 2017 |
Mar. 02, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Tax benefit due to arrangements allowing computation of tax provision at rates below local statutory rates | $ 132 | $ 172 |
Tax benefit per diluted share due to arrangements allowing computation of tax provision at rates below local statutory rates (in dollars per share) | $ 0.11 | $ 0.15 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017 |
Mar. 03, 2016 |
Mar. 02, 2017 |
Mar. 03, 2016 |
|
Earnings Per Share [Abstract] | ||||
Net income available to Micron shareholders - Basic | $ 894 | $ (97) | $ 1,074 | $ 109 |
Net income available to Micron shareholders – Diluted | $ 894 | $ (97) | $ 1,074 | $ 109 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted-average common shares outstanding - Basic (in shares) | 1,099 | 1,036 | 1,070 | 1,035 |
Dilutive effect of equity plans and convertible notes (in shares) | 61 | 0 | 55 | 37 |
Weighted-average common shares outstanding - Diluted (in shares) | 1,160 | 1,036 | 1,125 | 1,072 |
Earnings Per Share, Basic [Abstract] | ||||
Basic (in dollars per share) | $ 0.81 | $ (0.09) | $ 1.00 | $ 0.11 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted (in dollars per share) | $ 0.77 | $ (0.09) | $ 0.95 | $ 0.10 |
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 60 | 185 | 62 | 72 |
Segment Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 02, 2017
USD ($)
|
Mar. 03, 2016
USD ($)
|
Mar. 02, 2017
USD ($)
segment
|
Mar. 03, 2016
USD ($)
|
|
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||
Number of reportable segments | segment | 4 | |||
Net Sales | ||||
Net sales | $ 4,648 | $ 2,934 | $ 8,618 | $ 6,284 |
Operating Income | ||||
Stock-based compensation | (55) | (55) | (101) | (101) |
Restructure and asset impairments | (4) | (1) | (33) | (16) |
Other | 4 | (5) | 10 | (7) |
Operating income (loss) | 1,044 | (5) | 1,403 | 227 |
Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | 1,177 | 55 | 1,615 | 353 |
Unallocated | ||||
Operating Income | ||||
Flow-through of Inotera inventory step up | (60) | 0 | (60) | 0 |
Stock-based compensation | (55) | (55) | (101) | (101) |
Restructure and asset impairments | (4) | (1) | (33) | (16) |
Other | (14) | (4) | (18) | (9) |
Operating income (loss) | (133) | (60) | (212) | (126) |
CNBU | ||||
Net Sales | ||||
Net sales | 1,917 | 1,053 | 3,387 | 2,192 |
CNBU | Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | 736 | (33) | 940 | 7 |
MBU | ||||
Net Sales | ||||
Net sales | 1,082 | 503 | 2,114 | 1,337 |
MBU | Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | 170 | (10) | 259 | 138 |
SBU | ||||
Net Sales | ||||
Net sales | 1,041 | 901 | 1,901 | 1,785 |
SBU | Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | 71 | (3) | 26 | (17) |
EBU | ||||
Net Sales | ||||
Net sales | 590 | 460 | 1,168 | 939 |
EBU | Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | 193 | 96 | 371 | 217 |
All Other | ||||
Net Sales | ||||
Net sales | 18 | 17 | 48 | 31 |
All Other | Operating Segments | ||||
Operating Income | ||||
Operating income (loss) | $ 7 | $ 5 | $ 19 | $ 8 |
Certain Concentrations (Details) - Net Sales - Customer Concentration Risk |
6 Months Ended |
---|---|
Mar. 02, 2017 | |
Apple | |
Concentration Risk [Line Items] | |
Concentration risk, percentage of net sales (in hundredths) | 11.00% |
Intel | |
Concentration Risk [Line Items] | |
Concentration risk, percentage of net sales (in hundredths) | 10.00% |
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