Micron Technology (MU) 10-Q 12 Jan 10 2010 Q1 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 03, 2009	3 Months Ended Dec. 04, 2008
Net sales	$1,740	$1,402
Cost of goods sold	1,297	1,851
Gross margin	443	(449)
Selling, general and administrative	97	102
Research and development	137	178
Restructure	(1)	(66)
Other operating (income) expense, net	9	9
Operating income (loss)	201	(672)
Interest income	2	10
Interest expense	(47)	(41)
Other non-operating income (expense), net	56	(10)
[IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments]	212	(713)
Income tax (provision) benefit	7	(13)
Equity in net losses of equity method investees, net of tax	(17)	(5)
Net income (loss)	202	(731)
Net loss attributable to noncontrolling interests	2	13
Net income (loss) attributable to Micron	$204	($718)
Earnings (loss) per share:
Basic	0.24	-0.93
Diluted	0.23	-0.93
Number of shares used in per share calculations:
Basic	846.3	773.3
Diluted	1000.7	773.3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 03, 2009	Sep. 03, 2009
Assets
Cash and equivalents	$1,565	$1,485
Receivables	1,091	798
Inventories	1,037	987
Other current assets	76	74
Total current assets	3,769	3,344
Intangible assets, net	334	344
Property, plant and equipment, net	6,876	7,089
Equity method investments	366	315
Other assets	381	367
Total assets	11,726	11,459
Liabilities and equity
Accounts payable and accrued expenses	1,059	1,037
Deferred income	212	209
Equipment purchase contracts	353	222
Current portion of long-term debt	618	424
Total current liabilities	2,242	1,892
Long-term debt	2,143	2,379
Other liabilities	250	249
Total liabilities	4,635	4,520
Commitments and contingencies
Common stock, $0.10 par value, authorized 3,000 shares, issued and outstanding 849.8 million and 848.7 million shares, respectively	85	85
Additional capital	7,287	7,257
Accumulated deficit	(2,181)	(2,385)
Accumulated other comprehensive income (loss)	4	(4)
Total Micron shareholders' equity	5,195	4,953
Noncontrolling interests in subsidiaries	1,896	1,986
Total equity	7,091	6,939
Total liabilities and equity	$11,726	$11,459

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
Share data in Millions	Dec. 03, 2009	Sep. 03, 2009
Liabilities and equity
Common stock, par value	0.1	0.1
Common Stock, authorized shares	3,000	3,000
Common Stock, issued shares	849.8	848.7
Common Stock, outstanding shares	849.8	848.7

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Dec. 03, 2009	3 Months Ended Dec. 04, 2008
Cash flows from operating activities
Net income (loss)	$202	($731)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	491	605
Share-based compensation	31	9
Equity in net losses of equity method investees, net of tax	17	5
Provision to write down inventories to estimated market values	9	369
Gain from Inotera stock issuance	(56)	0
Noncash restructure charges (credits)	(6)	(83)
Change in operating assets and liabilities:
(Increase) decrease in receivables	(324)	138
Decrease in customer prepayments	(60)	(29)
(Increase) decrease in inventories	(59)	39
Increase (decrease) in accounts payable and accrued expenses	66	(67)
Increase in deferred income	0	78
Other	15	26
Net cash provided by operating activities	326	359
Cash flows from investing activities
Expenditures for property, plant and equipment	(62)	(270)
(Increase) in restricted cash	(30)	0
Acquisition of equity method investment	0	(409)
Proceeds from maturities of available-for-sale securities	0	123
Proceeds from sales of property, plant and equipment	31	6
Other	36	61
Net cash used for investing activities	(25)	(489)
Cash flows from financing activities
Repayments of debt	(280)	(163)
Distributions to noncontrolling interests	(88)	(150)
Payments on equipment purchase contracts	(49)	(64)
Proceeds from debt	200	285
Other	(4)	4
Net cash used for financing activities	(221)	(88)
Net increase (decrease) in cash and equivalents	80	(218)
Cash and equivalents at beginning of period	1,485	1,243
Cash and equivalents at end of period	1,565	1,025
Supplemental disclosures
Income taxes paid, net	(2)	(8)
Interest paid, net of amounts capitalized	(36)	(29)
Noncash investing and financing activities:
Equipment acquisitions on contracts payable and capital leases	$176	$153

Business and Significant Accoun

Business and Significant Accounting Policies
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Basis of presentation	Business and Significant Accounting Policies Basis of presentation:Micron Technology, Inc. and its consolidated subsidiaries (hereinafter referred to collectively as the Company) is a global manufacturer and marketer of semiconductor devices, principally DRAM and NAND Flash memory.In addition, the Company manufactures semiconductor components for CMOS image sensors and other semiconductor products.The primary products of the Companys reportable segment, Memory, are DRAM and NAND Flash memory. The accompanying consolidated financial statements include the accounts of the Company and its 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 the Companys Annual Report on Form 10-K for the year ended September 3, 2009, except for changes resulting from the adoption of new accounting standards for convertible debt and noncontrolling interests.Prior year amounts and balances have been retrospectively adjusted to reflect the adoption of these new accounting standards.(See Retrospective Adoption of New Accounting Standards note.) In preparation of the accompanying consolidated financial statements, the Company evaluated events and transactions occurring after December 3, 2009 through January 12, 2010.In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company and its consolidated results of operations and cash flows.
Fiscal year	The Companys fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31.The Companys fiscal 2010 contains 52 weeks and the first quarter of fiscal 2010, which ended on December 3, 2009, contained 13 weeks.The Companys fiscal 2009, which ended on September 3, 2009, contained 53 weeks and the first quarter of fiscal 2009 contained 14 weeks.All period references are to the Companys fiscal periods unless otherwise indicated.These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the year ended September 3, 2009.
Recently adopted accounting standards	Recently adopted accounting standards:In May 2008, the FASB issued a new accounting standard for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement.This standard requires that issuers of convertible debt instruments that may be settled in cash upon conversion separately account for the liability and equity components of such instruments in a manner such that interest cost will be recognized at the entitys nonconvertible debt borrowing rate in subsequent periods.The Company adopted this standard as of the beginning of 2010 and retrospectively accounted for its $1.3 billion of 1.875% convertible senior notes under the provisions of this guidance from the May 2007 issuance date of the notes.As a result, prior financial statement amounts were recast.(See Retrospective Adoption of Accounting Standards note.) In December 2007, the FASB issued a new accounting standard on noncontrolling interests in consolidated financial statements.This standard requires that (1) noncontrolling interests be reported as a separate component of equity, (2) net income attributable to the parent and to the noncontrolling interest be separately identified in the statement of operations, (3) changes in a parents ownership interest while the parent retains its controlling interest be accounted for as equity transactions and (4) any retained noncontrolling equity investment upon the deconsolidation of a subsidiary be initially measured at fair value.The Company adopted this standard as of the beginning of 2010.As a result of the retrospective adoption of the presentation and disclosure requirements, prior financial statement amounts were recast.(See Retrospective Adoption of Accounting Standards note.) In December 2007, the FASB issued a new accounting standard on business combinations, which establishes the principles and requirements for how an acquirer (1) recognizes and measures in its financial statements identifiable assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree, (2) recognizes and measures goodwill acquired in the business combination or a gain from a bargain purchase and (3) determines what information to disclose.The Company adopted this standard effective as of the beginning of 2010.The adoption did not have a significant impact on the Companys financial statements. In September 2006, the FASB issued a new accounting standard on fair value measurements and disclosures, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.The Company adopted this standard effective as of the beginning of 2009 for financial assets and financial liabilities.The Company adopted this standard effective as of the beginning of 2010 for all other assets and liabilities.The adoptions did not have a significant impact on the Companys financial statements.
Recently issued accounting standards	Recently issued accounting standards:In June 2009, the FASB issued a new accounting standard on variable interest entities which (1) replaces the quantitative-based risks and rewards calculation for determining whether an enterprise is the primary beneficiary in a variable interest entity with an approach that is primarily qualitative, (2) requires ongoing assessments of whether an enterprise is the primary beneficiary of a variable interest entity and (3) requires additional disclosures about an enterprises involvement in variable interest entities.The Company is required to adopt this standard as of the beginning of 2011.The Company is evaluating the impact the adoption of this standard will have on its financial statements.

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Receivables	Supplemental Balance Sheet Information Receivables December 3, 2009 September 3, 2009 Trade receivables (net of allowance for doubtful accounts of $5 million and $5 million, respectively) $ 884 $ 591 Related party receivables 53 70 Income and other taxes 62 49 Other 92 88 $ 1,091 $ 798 Related party receivables included $52 million and $69 million due from Aptina Imaging Corporation under a wafer supply agreement as of December 3, 2009 and September 3, 2009, respectively, and $1 million and $1 million, respectively, due from Inotera Memories, Inc. for reimbursement of expenses incurred under a technology transfer agreement. As of December 3, 2009 and September 3, 2009, other receivables included $51 million and $29 million, respectively, due from Intel Corporation for amounts related to NAND Flash product design and process development activities.
Inventories	Inventories December 3, 2009 September 3, 2009 Finished goods $ 298 $ 233 Work in process 629 649 Raw materials and supplies 110 105 $ 1,037 $ 987 The Companys results of operations for the first quarter of 2009 included a charge of $369 million to write down the carrying value of work in process and finished goods inventories of memory products (both DRAM and NAND Flash) to their estimated market values.
Intangible assets, net	Intangible Assets December 3, 2009 September 3, 2009 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Product and process technology $ 436 $ (183 ) $ 439 $ (181 ) Customer relationships 127 (54 ) 127 (50 ) Other 28 (20 ) 28 (19 ) $ 591 $ (257 ) $ 594 $ (250 ) During the first quarter of 2010 and 2009, the Company capitalized $7 million and $12 million, respectively, for product and process technology with weighted-average useful lives of 10 years. Amortization expense for intangible assets was $17 million and $22 million for the first quarter of 2010 and 2009, respectively.Annual amortization expense for intangible assets is estimated to be $67 million for 2010, $63 million for 2011, $55 million for 2012, $50 million for 2013 and $42 million for 2014.
Property, plant and equipment	Property, Plant and Equipment December 3, 2009 September 3, 2009 Land $ 96 $ 96 Buildings 4,471 4,463 Equipment 12,189 11,843 Construction in progress 49 47 Software 272 269 17,077 16,718 Accumulated depreciation (10,201 ) (9,629 ) $ 6,876 $ 7,089 Depreciation expense was $454 million and $569 million for the first quarter of 2010 and 2009, respectively. The Company, through its IM Flash joint venture, has an unequipped wafer manufacturing facility in Singapore that has been idle since it was completed in the first quarter of 2009.The Company has been recording depreciation expense for the facility since it was completed and its net book value was $617 million as of December 3, 2009.Utilization of the facility is dependent upon market conditions, including, but not limited to, worldwide market supply of and demand for semiconductor products, availability of financing, agreement between the Company and its joint venture partner and the Companys operations, cash flows and alternative capacity utilization opportunities. As of December 3, 2009 and September 3, 2009, the Company had buildings and equipment of $68 million and $81 million, respectively, classified as held for sale assets and included in other noncurrent assets.
Equity method investments	Equity Method Investments The Company has partnered with Nanya Technology Corporation (Nanya) in two Taiwan DRAM memory companies, Inotera Memories, Inc. (Inotera) and MeiYa Technology Corporation (MeiYa), which are accounted for as equity method investments.The Company also has an equity method investment in Aptina Imaging Corporation (Aptina), a CMOS imaging company. DRAM joint ventures with Nanya:The Company has a partnering arrangement with Nanya pursuant to which the Company and Nanya jointly develop process technology and designs to manufacture stack DRAM products.In addition, the Company has deployed and licensed certain intellectual property related to the manufacture of stack DRAM products to Nanya and licensed certain intellectual property from Nanya.As a result, the Company is to receive an aggregate of $207 million from Nanya through 2010.During the first quarters of 2010 and 2009, the Company recognized $26 million and $28 million, respectively, of license revenue in net sales from this agreement and had recognized $168 million of cumulative license revenue from May 2008 through December 3, 2009.In addition, the Company may receive royalties in future periods from Nanya for sales of stack DRAM products manufactured by or for Nanya. The Company has concluded that both Inotera and MeiYa are variable interest entities because of the Inotera and MeiYa supply agreements with the Company and Nanya.Nanya and the Company are considered related parties under the accounting standards for consolidating variable interest entities.The Company reviewed several factors to determine whether it is the primary beneficiary of Inotera and MeiYa, including the size and nature of the entities operations relative to Nanya and the Company, nature of the day-to-day operations and certain other factors.Based on those factors, the Company determined that Nanya is more closely associated with, and therefore the primary beneficiary of, Inotera and MeiYa.The Company accounts for its interests using the equity method of accounting and does not consolidate these entities.The Company recognizes its share of earnings or losses from these entities on a two-month lag. Inotera:In the first quarter of 2009, the Company acquired a 35.5% ownership interest in Inotera, a publicly-traded entity in Taiwan, from Qimonda AG.On August 3, 2009, Inotera sold common shares in a public offering at a price equal to 16.02 New Taiwan dollars per common share (approximately $0.49 U.S. dollars on August 3, 2009).As a result of the share issuance, the Companys interest in Inotera decreased from 35.5% to 29.8% and the Company recognized a gain of $56 million in the first quarter of 2010.As of December 3, 2009, the ownership of Inotera was held 29.9% by Nanya, 29.8% by the Company and the balance was publicly held.On December 15, 2009, Inoteras Board of Directors approved the issuance of 640 million common shares.The issuance price was set on January 6, 2010 at 22.50 New Taiwan dollars per share ($0.70 U.S. dollars at January 6, 2010).The Company expects to purchase its allotted portion of the offering, estimated to be approximately 150 million shares.The actual number
Accounts payable and accrued expenses	Accounts Payable and Accrued Expenses December 3, 2009 September 3, 2009 Accounts payable $ 541 $ 526 Salaries, wages and benefits 172 147 Related party payables 129 83 Customer advances 90 150 Income and other taxes 40 32 Other 87 99 $ 1,059 $ 1,037 As of December 3, 2009 and September 3, 2009, related party payables consisted of amounts due to Inotera under the Inotera Supply Agreement, including $129 million and $51 million, respectively, for the purchase of trench DRAM products and $32 million for underutilized capacity as of September 3, 2009. (See Equity Method Investments DRAM joint ventures with Nanya Inotera note.) As of December 3, 2009 and September 3, 2009, customer advances included $83 million and $142 million, respectively, for the Companys obligation to provide certain NAND Flash memory products to Apple Computer, Inc. (Apple) until December 31, 2010 pursuant to a prepaid NAND Flash supply agreement.As of December 3, 2009 and September 3, 2009, other accounts payable and accrued expenses included $21 million and $24 million, respectively, for amounts due to Intel for NAND Flash product design and process development and licensing fees pursuant to a product designs development agreement.
Debt	Debt December 3, 2009 September 3, 2009 Convertible senior notes, stated interest rate of 1.875%, effective interest rate of 7.9%, net of discount of $282 million and $295 million, respectively, due June 2014 $ 1,018 $ 1,005 TECH credit facility, effective interest rates of 3.9% and 3.6% , respectively, net of discount of $3 million and $2 million, respectively, due in periodic installments through May 2012 497 548 Capital lease obligations, weighted-average imputed interest rate of 6.7%, due in monthly installments through February 2023 543 559 Convertible senior notes, interest rate of 4.25%, due October 2013 230 230 EDB notes, denominated in Singapore dollars, interest rate of 5.4%, due February 2012 217 208 Mai-Liao Power note, effective imputed interest rate of 12.1%, net of discount of $14 million and $18 million, respectively, due November 2010 186 182 Convertible subordinated notes, interest rate of 5.6%, due April 2010 70 70 Other notes -- 1 2,761 2,803 Less current portion (618 ) (424 ) $ 2,143 $ 2,379 In the first quarter of 2010, the Company adopted the FASBs new accounting standard for certain convertible debt.The new standard was applicable to the Companys 1.875% convertible senior notes with an aggregate principal amount of $1.3 billion issued in May 2007 (the Convertible Notes) and requires the liability and equity components of the Convertible Notes to be stated separately.(See Retrospective Adoption of New Accounting Standards note.) The TECH credit facility is collateralized by substantially all of the assets of TECH (approximately $1,502 million as of December 3, 2009) and contains covenants that, among other requirements, establish certain liquidity, debt service coverage and leverage ratios, and restrict TECHs ability to incur indebtedness, create liens and acquire or dispose of assets.In the first quarter of 2010, the debt covenants were modified and as of December 3, 2009, TECH was in compliance with the covenants.In connection with the modification, the Company has guaranteed approximately 85% of the outstanding amount borrowed under TECHs credit facility and the Companys guarantee is expected to increase to 100% of the outstanding amount borrowed under the facility in April 2010.Under the terms of the credit facility, TECH had $60 million in restricted cash as of December 3, 2009. In the first quarter of 2010, the Company recorded $10 million in capital lease obligations with a weighted-average imputed interest rate of 9.2%, payable in periodic installments through February 2011.As of December 3, 2009, the Company had $42 million of capital lease obligations with covenants that require minimum levels of tangible net worth, cash and investments, and restricted cash of $24 million.The Company was in compliance with these covenants as of December 3, 2009. On November 25, 2009, the Companys note with Nan Ya Plastics was replaced with a note from Mai-Liao Power Corporation, an affiliate of Nan Ya Plastics.Nan Ya Plastics and Mai-Li
Contingencies	Contingencies The Company has accrued a liability and charged operations for the estimated costs of adjudication or settlement of various asserted and unasserted claims existing as of the balance sheet date, including those described below.The Company is currently a party to other legal actions arising out of the normal course of business, none of which is expected to have a material adverse effect on the Companys business, results of operations or financial condition. In the normal course of business, the Company is a party to a variety of agreements pursuant to which it 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 the Companys obligations and the unique facts and circumstances involved in each particular agreement.Historically, payments made by the Company under these types of agreements have not had a material effect on the Companys business, results of operations or financial condition. The Company is involved in the following antitrust, patent and securities matters. Antitrust matters:On May 5, 2004, Rambus, Inc. (Rambus) filed a complaint in the Superior Court of the State of California (San Francisco County) against the Company and other DRAM suppliers alleging that the defendants harmed Rambus by engaging in concerted and unlawful efforts affecting Rambus DRAM (RDRAM) by eliminating competition and stifling innovation in the market for computer memory technology and computer memory chips.Rambuss complaint alleges various causes of action under California state law including, among other things, a conspiracy to restrict output and fix prices, a conspiracy to monopolize, intentional interference with prospective economic advantage, and unfair competition.Rambus alleges that it is entitled to actual damages of more than a billion dollars and seeks joint and several liability, treble damages, punitive damages, a permanent injunction enjoining the defendants from the conduct alleged in the complaint, interest, and attorneys fees and costs.Trial is scheduled to begin in January 2010. At least sixty-eight purported class action price-fixing lawsuits have been filed against the Company and other DRAM suppliers in various federal and state courts in the United States and in Puerto Rico on behalf of indirect purchasers alleging price-fixing in violation of federal and state antitrust laws, violations of state unfair competition law, and/or unjust enrichment relating to the sale and pricing of DRAM products during the period from April 1999 through at least June 2002.The complaints seek joint and several damages, trebled, in addition to restitution, costs and attorneys fees.A number of these cases have been removed to federal court and transferred to the U.S. District Court for the Northern District of California for consolidated pre-trial proceedings.On January 29, 2008, the Northern District of California court granted in part and denied in part the Companys motion to dismiss plaintiffs second amended consolidated complaint.Plaintiffs subsequently filed a motion seeking certification

Retrospective Adoption of Accou

Retrospective Adoption of Accounting Guidance
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Retrospective Adoption of Accounting Guidance	Retrospective Adoption of New Accounting Standards Effective at the beginning of 2010, the Company adopted new accounting standards for noncontrolling interests and certain convertible debt instruments.Reported amounts prior to 2010 in this 10-Q have been recast for the retrospective adoption of these standards, and the impact the new standards is summarized below. Noncontrolling interests in subsidiaries:Under the new standard, noncontrolling interests in subsidiaries is (1) reported as a separate component of equity in the consolidated balance sheets and(2) included in net income in the statement of operations. Convertible debt instruments:The new standard applies to convertible debt instruments that may be fully or partially settled in cash upon conversion and is applicable to the Companys 1.875% convertible senior notes with an aggregate principal amount of $1.3 billion issued in May 2007 (the Convertible Notes).The standard requires the liability and equity components of the Convertible Notes to be stated separately.The liability component recognized at the issuance of the Convertible Notes equals the estimated fair value of a similar liability without a conversion option and the remainder of the proceeds received at issuance was allocated to equity.In connection therewith, at the May 2007 issuance of the Convertible Notes there was a $402 million decrease in debt, a $394 million increase in additional capital, and an $8 million decrease in deferred debt issuance costs (included in other noncurrent assets).The fair value of the liability was determined using a interest rate for similar nonconvertible debt issued as of the original May 2007 issuance date by entities with credit ratings comparable to the Companys credit rating at the time of issuance.In subsequent periods, the liability component recognized at issuance is increased to the principal amount of the Convertible Notes through the amortization of interest costs. Through 2009, $107 million of interest was amortized.Information related to equity and debt components is as follows: As of December 3, 2009 September 3, 2009 Carrying amount of the equity component $ 394 $ 394 Principal amount of the Convertible Notes 1,300 1,300 Unamortized discount 282 295 Net carrying amount of the Convertible Notes 1,018 1,005 The unamortized discount as of December 3, 2009, will be recognized as interest expense over approximately 4.5 years through June 2014, the maturity date of the Convertible Notes. Information related to interest rates and expenses is as follows: Quarter Ended December 3, 2009 December 4, 2008 Effective interest rate 7.9 % 7.9 % Interest costs related to contractual interest coupon 6 7 Interest costs related to amortization of discount and issuance costs 13 13 Effect of retrospective adoption of new accounting standards on financial statements:The following tables set forth the financial statement line items affected by retrospective application of the new accounting standards for noncontro

Derivative Financial Instrument

Derivative Financial Instruments
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company is exposed to currency exchange rate risk for the monetary assets and liabilities held in foreign currencies, primarily the Singapore dollar, euro and yen.The Company uses derivative instruments to manage exposures to foreign currency.The Companys primary objective in holding these derivatives is to reduce the volatility of earnings associated with changes in foreign currency.The Companys derivatives consist primarily of forward contracts that reduce the effects on earnings attributable to Micron shareholders as a result of changes in foreign exchange rates.The Company utilizes a rolling hedge strategy with currency forward contracts that generally mature within 35 days.The currency forward contracts are not designated for hedge accounting.At the end of each reporting period, the Companys monetary assets and liabilities denominated in foreign currencies are remeasured in U.S. Dollars and the associated outstanding forward contracts are marked-to-market.Fair value is determined using quoted prices of forward contracts traded in an active market (Level 1).Realized and unrealized foreign currency gains and losses on derivative instruments and the underlying monetary assets are included in other operating income (expense). The Companys derivatives expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement.The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across multiple major financial institutions.In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. Total gross notional amounts and fair values for currency forward contracts outstanding as of December 3, 2009, presented by currency, were as follows: Currency Notional Amount Outstanding (in U.S. Dollars) Balance Sheet Location Fair Value of Asset (Liability) Singapore dollar $ 297 Receivables $ 0 Euro 216 Accounts payable and accrued expenses (0 ) Yen 85 Accounts payable and accrued expenses (1 ) $ 598 $ (1 ) For the first quarter of 2010, the Company recognized a gain of $9 million in other operating income (expense) on currency forward contracts.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Fair Value Measurements	Fair Value Measurements SFAS No. 157 establishes three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), observable inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Fair value measurements on a recurring basis: Assets measured at fair value on a recurring basis as of September 3, 2009 and December 3, 2009 were as follows: As of December 3, 2009 As of September 3, 2009 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Money market(1) $ 1,388 $ -- $ -- $ 1,388 $ 1,184 $ -- $ -- $ 1,184 Certificates of deposit(2) -- 173 -- 173 -- 217 -- 217 Marketable equity investments(3) 16 -- -- 16 15 -- -- 15 Fixed assets held for sale(3)(4) -- -- 68 68 -- -- -- -- $ 1,404 $ 173 $ 68 $ 1,645 $ 1,199 $ 217 $ -- $ 1,416 (1)Included in cashand equivalents (2)$113 million and $60 million included in cashand equivalents and other noncurrent assets, respectively, as of December 3, 2009 and $187 million and $30 million, respectively, as of September 3, 2009 (3)Included in other noncurrent assets (4) The Company adopted the accounting standard for fair value measurements of nonfinancial assets and nonfinancial liabilities at the beginning of 2010. Level 2 assets are valued using observable inputs in active markets for similar assets or alternative pricing sources and models utilizing observable market inputs.During the first quarter of 2009, the Company recognized impairment charges of $7 million for other-than-temporary declines in the value of marketable equity instruments. The Company determined the fair values of fixed assets held for sale using inputs obtained from equipment dealers utilizing significant judgments regarding the remaining useful life and configuration of these assets (Level 3).Losses recognized in the first quarter of 2010 due to fair value measurements using Level 3 inputs were not material. As of December 3, 2009, the estimated fair value of the Companys convertible debt instruments was $1,624 million compared to their carrying value of $1,318 million in debt (the carrying value excludes the equity component of the Convertible Notes which is classified in equity). As of September 3, 2009, the estimated fair value of the Companys convertible debt instruments was $1,410 million compared to their carrying value of $1,305 million in debt (the carrying value excludes the equity component of the Convertible Notes which is classified in equity). The fair value of the convertible debt instruments is ba

Equity Plans

Equity Plans
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Equity Plans	Equity Plans As of December 3, 2009, under its equity plans, the Company had an aggregate of 183.1 million shares of its common stock reserved for issuance for stock and restricted stock awards, of which 131.2 million shares were subject to outstanding awards and 51.9 million shares were available for future grants.Awards are subject to terms and conditions as determined by the Companys Board of Directors. Stock options:The Company granted 14.1 million and 6.8 million stock options during the first quarters of 2010 and 2009, respectively, with weighted-average grant-date fair values per share of $4.02 and $2.31, respectively. The fair values of option awards were estimated as of the date of grant using the Black-Scholes option valuation model.The Black-Scholes model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable and requires the input of subjective assumptions, including the expected stock price volatility and estimated option life.The expected volatilities utilized by the Company were based on implied volatilities from traded options on the Companys stock and on historical volatility.The expected lives of options granted in and subsequent to 2009 were based, in part, on historical experience and on the terms and conditions of the options.The expected lives of options granted prior to 2009 were based on the simplified method provided by the Securities and Exchange Commission.The risk-free interest rates utilized by the Company were based on the U.S. Treasury yield in effect at the time of the grant.No dividends were assumed in the Companys estimated option values.Assumptions used in the Black-Scholes model are presented below: Quarter ended December 3, 2009 December 4, 2008 Average expected life in years 5.10 4.75 Weighted-average expected volatility 61 % 60 % Weighted-average risk-free interest rate 2.3 % 2.6 % Restricted stock and restricted stock units (Restricted Stock Awards):As of December 3, 2009, there were 10.4 million shares of Restricted Stock Awards outstanding, of which 4.2 million were performance-based Restricted Stock Awards.For service-based Restricted Stock Awards, restrictions generally lapse either in one-fourth or one-third increments during each year of employment after the grant date.For performance-based Restricted Stock Awards, vesting is contingent upon meeting certain Company-wide performance goals, whose achievement was deemed probable as of December 3, 2009. During the first quarter of 2010, the Company granted 1.8 million and 1.1 million shares of service-based and performance-based Restricted Awards, respectively.During the first quarter of 2009, the Company granted 1.7 millionshares of service-based Restricted Awards and 1.7 million shares of performance-based Restricted Awards.The weighted-average grant-date fair values per share were $7.51 and $4.48 for Restricted Awards granted during the first quarters of 2010 and 2009, respectively. Stock-based compensation expense:Total compensation costs for the Companys equity plans we

Restructure

Restructure
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Restructure	Restructure In response to a severe downturn in the semiconductor memory industry and global economic conditions, the Company initiated a restructure plan in 2009 primarily within the Companys Memory segment.In the first quarter of 2009, IM Flash, a joint venture between the Company and Intel, terminated its agreement with the Company to obtain NAND Flash memory supply from the Companys Boise facility.Also, the Company and Intel agreed to suspend tooling and the ramp of NAND Flash production at IM Flashs Singapore wafer fabrication facility.In addition, the Company phased out all remaining 200mm DRAM wafer manufacturing operations in Boise, Idaho in the second half of 2009.The Company does not expect to incur any additional material restructure charges related to the plan initiated in 2009.The following table summarizes restructure charges (credits) resulting from the Companys restructure activities: Quarter Ended December 3, 2009 December 4, 2008 (Gain) write-down of equipment $ (4 ) $ 56 Severance and other termination benefits 1 22 Gain from termination of NAND Flash supply agreement -- (144 ) Other 2 -- $ (1 ) $ (66 ) During the first quarter of 2010, the Company made cash payments of $5 million for severance and related termination benefits, and costs to decommission production facilities.As of December 3, 2009 and September 3, 2009, $3 million and $5 million, respectively, of restructure costs, primarily related to severance and other termination benefits, remained unpaid and were included in accounts payable and accrued expenses.

Other Operating

Other Operating (Income) Expense, Net
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Other Operating (Income) Expense, Net	Other Operating (Income) Expense, Net Other operating (income) expense consisted of the following: Quarter Ended December 3, 2009 December 4, 2008 Losses from changes in currency exchange rates $ 21 $ 3 (Gain) loss on disposals of property, plant and equipment (2 ) 14 Other (10 ) (8 ) $ 9 $ 9

Income Taxes

Income Taxes
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Income Taxes	Income Taxes Income taxes for the first quarters of 2010 and 2009 primarily reflect taxes on the Companys non-U.S. operations and U.S. alternative minimum tax.The Company has a valuation allowance for its net deferred tax asset associated with its U.S. operations.The benefit for taxes on U.S. operations in the first quarters of 2010 and 2009 was substantially offset by changes in the valuation allowance.

Earnings Per Share

Earnings Per Share
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is computed based on the weighted-average number of common shares and stock rights outstanding.Diluted earnings per share is computed based on the weighted-average number of common shares and stock rights outstanding plus the dilutive effects of stock options and convertible notes.Potential common shares that would increase earnings per share amounts or decrease loss per share amounts are antidilutive and are therefore excluded from diluted earnings per share calculations.Antidilutive potential common shares that could dilute basic earnings per share in the future were 99.8 million and 219.1 million for the first quarters of 2010 and 2009, respectively. Quarter ended December 3, 2009 December 4, 2008 Net income (loss) available to Microns shareholders - Basic $ 204 $ (718 ) Net effect of assumed conversion of debt 23 -- Net income (loss) available to Microns shareholders - Diluted $ 227 $ (718 ) Weighted-average common shares outstanding- Basic 846.3 773.3 Net effect of dilutive stock options and assumed conversion of debt 154.4 -- Weighted-average common shares outstanding- Diluted 1,000.7 773.3 Earnings (loss) per share: Basic $ 0.24 $ (0.93 ) Diluted 0.23 (0.93 )

Comprehensive Income

Comprehensive Income (Loss)
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income and comprehensive income attributable to Micron for the first quarter of 2010 was $210 million and $212 million, respectively, and each included, net of tax, $8 million of unrealized gains from the change in cumulative translation adjustments for the Companys equity method investments.Comprehensive loss and comprehensive loss attributable to Micron for the first quarter of 2009 was $(727) million and $(714) million, respectively, and each included $4 million of unrealized gains on investments, net of tax.

Consolidated Variable Interest

Consolidated Variable Interest Entities
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Consolidated Variable Interest Entities	Consolidated Variable Interest Entities NAND Flash joint ventures with Intel (IM Flash):The Company has formed two joint ventures with Intel (IM Flash Technologies, LLC formed January 2006 and IM Flash Singapore, LLP formed February 2007) to manufacture NAND Flash memory products for the exclusive benefit of the partners.IMFT and IMFS are each governed by a Board of Managers, with the Company and Intel initially appointing an equal number of managers to each of the boards.The number of managers appointed by each party adjusts depending on the parties ownership interests.These ventures will operate until 2016 but are subject to prior termination under certain terms and conditions.IMFT and IMFS are aggregated as IM Flash in the following disclosure due to the similarity of their ownership structure, function, operations and the way the Companys management reviews the results of their operations.At inception and through December 3, 2009, the Company owned 51% and Intel owned 49% of IM Flash. IM Flash is a variable interest entity because all costs of IM Flash are passed to the Company and Intel through product purchase agreements.IM Flash is dependent upon the Company and Intel for any additional cash requirements.The Company and Intel are also considered related parties under the accounting standards for consolidating variable interest entities due to restrictions on transfers of ownership interests.As a result, the primary beneficiary of IM Flash is the entity that is most closely associated with IM Flash.The Company considered several factors to determine whether it or Intel is more closely associated with IM Flash, including the size and nature of IM Flashs operations relative to the Company and Intel, and which entity had the majority of economic exposure under the purchase agreements.Based on those factors, the Company determined that it is more closely associated with IM Flash and is therefore the primary beneficiary.Accordingly, the financial results of IM Flash are included in the Companys consolidated financial statements and all amounts pertaining to Intels interests in IM Flash are reported as noncontrolling interests in subsidiaries. IM Flash manufactures NAND Flash memory products using designs developed by the Company and Intel.Product design and other research and development (RD) costs for NAND Flash are generally shared equally between the Company and Intel.As a result of reimbursements received from Intel under a NAND Flash RD cost-sharing arrangement, the Companys RD expenses were reduced by $26 million and $32 million for the first quarters in 2010 and 2009, respectively. IM Flash sells products to the joint venture partners generally in proportion to their ownership at long-term negotiated prices approximating cost.IM Flash sales to Intel were $193 million and $318 million for the first quarters of 2010 and 2009, respectively.As of December 3, 2009 and September 3, 2009, IM Flash had receivables from Intel primarily for sales of NAND Flash products of $126 million and $95 million, respectively.In addition, as of December 3, 2009 and September 3, 2009, the Company had receivables from Intel of $51 million and

TECH Semiconductor Singapore Pt

TECH Semiconductor Singapore Pte. Ltd.
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
TECH Semiconductor Singapore Pte. Ltd.	TECH Semiconductor Singapore Pte. Ltd. Since 1998, the Company has participated in TECH Semiconductor Singapore Pte. Ltd. (TECH), a semiconductor memory manufacturing joint venture in Singapore among the Company, Canon Inc. and Hewlett-Packard Company (HP). The financial results of TECH are included in the Companys consolidated financial statements and all amounts pertaining to Canon Inc. and HP are reported as noncontrolling interests in subsidiaries.As of December 3, 2009, the Company holds an approximate 85% interest in TECH. The shareholders agreement for the TECH joint venture expires in April 2011.In September 2009, TECH received a notice from HP that it does not intend to extend the TECH joint venture beyond April 2011.The Company is working with HP and Canon to reach a resolution of the matter.The parties inability to reach a resolution of this matter prior to April 2011 could result in the dissolution of TECH. TECHs cash and marketable investment securities ($73 million as of December 3, 2009) are not anticipated to be available to pay dividends of the Company or finance its other operations.As of December 3, 2009, TECH had $497 million outstanding under a credit facility which is collateralized by substantially all of the assets of TECH (carrying value of approximately $1,502 million as of December 3, 2009) and contains covenants that, among other requirements, establish certain liquidity, debt service coverage and leverage ratios, and restrict TECHs ability to incur indebtedness, create liens and acquire or dispose of assets.In the first quarter of 2010, the debt covenants were modified and as of December 3, 2009, TECH was in compliance with the covenants.In connection with the modification, the Company has guaranteed approximately 85% of the outstanding amount borrowed under TECHs credit facility and the Companys guarantee is expected to increase to 100% of the outstanding amount borrowed under the facility in April 2010.(See Debt note.)

Segment Information

Segment Information
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Segment Information	Segment Information The primary products of the Companys Memory segment are DRAM and NAND Flash memory.In 2009, the Company had two reportable segments, Memory and Imaging.In the first quarter of 2010, Imaging no longer met the quantitative thresholds of a reportable segment and management does not expect that Imaging will meet the quantitative thresholds in future years.As a result, Imaging is no longer considered a reportable segment and is included in the Companys All Other nonreportable segments.Prior period amounts have been recast to reflect Imaging in All Other.Operating results of All Other primarily reflect activity of Imaging and also include activity of the Companys microdisplay and other operations.Segment information reported below is consistent with how it is reviewed and evaluated by the Companys chief operating decision makers and is based on the nature of the Companys operations and products offered to customers.The Company does not identify or report depreciation and amortization, capital expenditures or assets by segment. Quarter ended December 3, 2009 December 4, 2008 Net sales: Memory $ 1,623 $ 1,222 All Other 117 180 Total consolidated net sales $ 1,740 $ 1,402 Operating income (loss): Memory $ 213 $ (675 ) All Other (12 ) 3 Total consolidated operating income (loss) $ 201 $ (672 )

Certain Concentrations

Certain Concentrations
	3 Months Ended Dec. 03, 2009 USD / shares
Notes to the Financial Statements [Abstract]
Certain Concentrations	Certain Concentrations Sales to HP, Intel and Apple were 12%, 12% and 11%, respectively, of the Companys net sales in the first quarter of 2010, and sales to Intel were 25% in the first quarter of 2009.These sales were included in the Memory segment.

Document Information

Document Information
	3 Months Ended Dec. 03, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-12-03

Entity Information

Entity Information (USD $)
In Hundreds, except Share data	3 Months Ended Dec. 03, 2009
Entity Information [Line Items]
Entity Registrant Name	MICRON TECHNOLOGY INC
Entity Central Index Key	0000723125
Current Fiscal Year End Date	--09-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$14,000,000
Entity Common Stock, Shares Outstanding	850,661,583