Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Dec. 01, 2016 | Jan. 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MICRON TECHNOLOGY INC | |
Entity Central Index Key | 723,125 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 1, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,102,751,846 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 3,970 | $ 3,350 |
Cost of goods sold | 2,959 | 2,501 |
Gross margin | 1,011 | 849 |
Selling, general, and administrative | 159 | 179 |
Research and development | 470 | 421 |
Restructure and asset impairments | 29 | 15 |
Other operating (income) expense, net | (6) | 2 |
Operating income | 359 | 232 |
Interest income | 7 | 11 |
Interest expense | (139) | (96) |
Other non-operating income (expense), net | (14) | (4) |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | 213 | 143 |
Income tax (provision) benefit | (31) | 4 |
Equity in net income (loss) of equity method investees | (2) | 59 |
Net income | 180 | 206 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Micron | $ 180 | $ 206 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.17 | $ 0.20 |
Diluted (in dollars per share) | $ 0.16 | $ 0.19 |
Number of shares used in per share calculations | ||
Basic (in shares) | 1,040 | 1,035 |
Diluted (in shares) | 1,091 | 1,085 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 180 | $ 206 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | 37 | (90) |
Gain (loss) on derivatives, net | (7) | (4) |
Pension liability adjustments | (1) | (6) |
Gain (loss) on investments, net | (1) | (3) |
Other comprehensive income (loss) | 28 | (103) |
Total comprehensive income | 208 | 103 |
Comprehensive (income) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Micron | $ 208 | $ 103 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 | |
Assets | |||
Cash and equivalents | $ 4,139 | $ 4,140 | |
Short-term investments | 30 | 258 | |
Receivables | 2,453 | 2,068 | |
Inventories | 2,750 | 2,889 | |
Other current assets | 132 | 140 | |
Total current assets | 9,504 | 9,495 | |
Long-term marketable investments | [1] | 155 | 414 |
Property, plant, and equipment, net | 15,321 | 14,686 | |
Equity method investments | 1,401 | 1,364 | |
Intangible assets, net | 445 | 464 | |
Deferred tax assets | 599 | 657 | |
Other noncurrent assets | 411 | 460 | |
Total assets | 27,836 | 27,540 | |
Liabilities and equity | |||
Accounts payable and accrued expenses | 4,155 | 3,879 | |
Deferred income | 236 | 200 | |
Current debt | 1,155 | 756 | |
Total current liabilities | 5,546 | 4,835 | |
Long-term debt | 8,490 | 9,154 | |
Other noncurrent liabilities | 601 | 623 | |
Total liabilities | 14,637 | 14,612 | |
Commitments and contingencies | |||
Redeemable convertible notes | 31 | 0 | |
Micron shareholders' equity | |||
Common stock, $0.10 par value, 3,000 shares authorized, 1,098 shares issued and outstanding (1,094 as of September 1, 2016) | 110 | 109 | |
Additional capital | 7,777 | 7,736 | |
Retained earnings | 5,469 | 5,299 | |
Treasury stock, 54 shares held (54 as of September 1, 2016) | (1,029) | (1,029) | |
Accumulated other comprehensive (loss) | (7) | (35) | |
Total Micron shareholders' equity | 12,320 | 12,080 | |
Noncontrolling interests in subsidiaries | 848 | 848 | |
Total equity | 13,168 | 12,928 | |
Total liabilities and equity | $ 27,836 | $ 27,540 | |
[1] | The maturities of long-term marketable securities range from one to four years. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 01, 2016 | 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) | 1,098 | 1,094 |
Common Stock, outstanding (in shares) | 1,098 | 1,094 |
Treasury Stock, held (in shares) | 54 | 54 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Cash flows from operating activities | ||
Net income | $ 180 | $ 206 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense and amortization of intangible assets | 771 | 737 |
Amortization of debt discount and other costs | 32 | 33 |
Stock-based compensation | 46 | 46 |
Equity in net (income) loss of equity method investees | 2 | (59) |
Change in operating assets and liabilities | ||
Receivables | (401) | 297 |
Inventories | 139 | (95) |
Accounts payable and accrued expenses | 299 | 2 |
Deferred income taxes, net | 64 | (1) |
Other | 6 | (46) |
Net cash provided by operating activities | 1,138 | 1,120 |
Cash flows from investing activities | ||
Expenditures for property, plant, and equipment | (1,264) | (990) |
Payments to settle hedging activities | (173) | (46) |
Purchases of available-for-sale securities | (84) | (510) |
Proceeds from sales and maturities of available-for-sale securities | 567 | 1,044 |
Other | 64 | (158) |
Net cash provided by (used for) investing activities | (890) | (660) |
Cash flows from financing activities | ||
Repayments of debt | (188) | (197) |
Payments on equipment purchase contracts | (24) | 0 |
Cash paid to acquire treasury stock | (13) | (135) |
Proceeds from issuance of stock under equity plans | 29 | 15 |
Proceeds from issuance of debt | 16 | 174 |
Contributions from noncontrolling interests | 0 | 37 |
Other | (32) | (34) |
Net cash provided by (used for) financing activities | (212) | (140) |
Effect of changes in currency exchange rates on cash and equivalents | (37) | (2) |
Net increase (decrease) in cash and equivalents | (1) | 318 |
Cash and equivalents at beginning of period | 4,140 | 2,287 |
Cash and equivalents at end of period | $ 4,139 | $ 2,605 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Dec. 01, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Business and Basis of Presentation We are a global leader in advanced semiconductor systems. Our broad portfolio of high-performance memory technologies, including DRAM, NAND Flash, and NOR Flash, is the basis for solid-state drives, modules, multi-chip packages, and other system solutions. Our memory solutions enable the world's most innovative computing, consumer, enterprise storage, networking, 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
Variable Interest Entities | 3 Months Ended |
Dec. 01, 2016 | |
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 "Equity Method Investments – Inotera" note.) EQUVO : EQUVO HK Limited ("EQUVO") is a special purpose entity 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 is a VIE because its equity is not sufficient to permit it to finance its activities without additional support from the financing entities and because the third-party equity holder lacks characteristics of a controlling financial interest. By design, the arrangement with EQUVO is merely a financing vehicle and we do not bear any significant risks from variable interests with EQUVO. Therefore, we have determined that we do not have the power to direct the activities of EQUVO that most significantly impact its economic performance and we do not consolidate 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 Sta
Recently Adopted Accounting Standards | 3 Months Ended |
Dec. 01, 2016 | |
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 our 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, 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 our 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 our 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 Stan
Recently Issued Accounting Standards | 3 Months Ended |
Dec. 01, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards 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 our 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 our 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 our first quarter of 2021; however, we are permitted to adopt this ASU as early as our 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 our first quarter of 2020 with early adoption permitted and is required to be adopted using a modified retrospective approach. We are evaluating the timing and 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 our 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 first quarter of 2019; however, we are permitted to adopt this ASU as early as our 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 will be generally earlier than under the existing revenue recognition guidance. We are evaluating the timing, method, and effects of our adoption of this ASU on our financial statements. |
Acquisition of Inotera
Acquisition of Inotera | 3 Months Ended |
Dec. 01, 2016 | |
Inotera | |
Acquisition of Inotera | Acquisition of Inotera On December 6, 2016, subsequent to the end of our first quarter of 2017, we acquired the 67% interest in Inotera not owned by us for an aggregate of $4.1 billion in cash (the "Inotera Acquisition"), funded with proceeds from the 2021 Term Loan (defined below), the sale of shares of our common stock to Nanya, and cash on hand. Prior to 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. Inotera manufactures DRAM products at its 300mm wafer fabrication facility in Taoyuan City, Taiwan, and sold such products exclusively to us through supply agreements. 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 the cash flows of Inotera across our operations, and enhance our ability to adapt our product offerings to changes in market conditions. We are evaluating the fair values of the accounting consideration transferred, assets acquired, and liabilities assumed. Our accounting for the Inotera Acquisition will include the fair value of our previously-held noncontrolling equity interest in Inotera as of the acquisition date as consideration, which differs from the per share amount paid to acquire the controlling interest in Inotera. We will recognize a gain or loss to the extent of the difference between the fair value and the carrying value as of the acquisition date. We expect to complete the provisional purchase price allocation for the Inotera Acquisition in our second quarter of 2017. Acquisition Financing 2021 Term Loan : 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 rate equal to the three -month or six -month TAIBOR, at our option, plus a margin of 2.05% per annum (the "2021 Term Loan"). Principal under the 2021 Term Loan is payable in six equal semi-annual installments, commencing in June 2019, through December 2021. The 2021 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 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 Term Loan, mergers involving MSTW and/or Inotera, loans or guarantees to third parties by Inotera and/or MSTW, and MSTW's distribution of cash dividends (subject to satisfaction of certain financial conditions). The 2021 Term Loan also contains financial covenants as follows, which are tested semi-annually: • MSTW must maintain a consolidated ratio of total debt to adjusted EBITDA not higher than 5.5 x in 2017 and 2018, and not higher than 4.5 x in 2019 through 2021; • MSTW must maintain adjusted consolidated tangible net worth of not less than 4.0 billion New Taiwan dollars (equivalent to $125 million ) in 2017 and 2018, not less than 6.5 billion New Taiwan dollars (equivalent to $203 million ) in 2019 and 2020, and not less than 12.0 billion New Taiwan dollars (equivalent to $374 million ) in 2021; • on a consolidated basis, we must maintain a ratio of total debt to adjusted EBITDA not higher than 3.5 x in 2017, not higher than 3.0 x in 2018 and 2019, and not higher than 2.5 x in 2020 and 2021; and • on a consolidated basis, we 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. If one or more of the required financial ratios is not maintained at the time the ratios are tested, the interest rate will be increased by 0.25% until such time as the required financial ratios are maintained. In addition, if MSTW fails to maintain a required financial ratio for two consecutive semi-annual periods, such failure will constitute an event of default that could result in all obligations owed under the 2021 Term Loan being accelerated to be immediately due and payable. Our failure to maintain a required consolidated financial ratio will only result in an increase to the interest rate and will not constitute an event of default. The 2021 Term Loan also contains customary events of default and is guaranteed by Micron. Micron Shares : In connection with the Inotera Acquisition, subsequent to the end of our first quarter of 2017, we sold 58 million shares of our common stock to Nanya for $981 million (the "Micron Shares"), of which 54 million were issued from treasury stock. The sale of the Micron Shares was exempt from the registration requirements of the Securities Act of 1933, as amended, and the Micron Shares are subject to certain restrictions on transfers. Our accounting for the Inotera Acquisition will include the fair value of the Micron Shares as of the acquisition date as consideration. Technology Transfer and License Agreements with Nanya Beginning 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
Cash and Investments | 3 Months Ended |
Dec. 01, 2016 | |
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: As of December 1, 2016 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 $ 3,923 $ — $ — $ 3,923 $ 2,258 $ — $ — $ 2,258 Level 1 (2) Money market funds 82 — — 82 1,507 — — 1,507 Level 2 (3) Certificates of deposit 134 3 — 137 373 33 — 406 Corporate bonds — 14 71 85 — 142 235 377 Government securities — 13 63 76 2 62 82 146 Asset-backed securities — — 21 21 — 12 97 109 Commercial paper — — — — — 9 — 9 $ 4,139 $ 30 $ 155 $ 4,324 $ 4,140 $ 258 $ 414 $ 4,812 (1) The maturities of long-term marketable securities 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 December 1, 2016 . Proceeds from sales of available-for-sale securities for the first quarters of 2017 and 2016 were $512 million and $407 million , respectively. Gross realized gains and losses from sales of available-for-sale securities were not material for any period presented. As of December 1, 2016 , there were no available-for-sale securities that had been in a loss position for longer than 12 months. As of December 1, 2016 and September 1, 2016 , we also had certificates of deposit classified as restricted cash (included in other noncurrent assets) of $2 million and $59 million , respectively, valued using Level 2 fair value measurements. |
Receivables
Receivables | 3 Months Ended |
Dec. 01, 2016 | |
Receivables [Abstract] | |
Receivables | Receivables As of December 1, September 1, Trade receivables $ 2,162 $ 1,765 Income and other taxes 135 119 Other 156 184 $ 2,453 $ 2,068 As of December 1, 2016 and September 1, 2016 , other receivables included $58 million and $53 million , respectively, due from Intel for amounts related to product design and process development activities under cost-sharing agreements for NAND Flash and 3D XPoint TM memory. |
Inventories
Inventories | 3 Months Ended |
Dec. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 1, September 1, Finished goods $ 787 $ 899 Work in process 1,722 1,761 Raw materials and supplies 241 229 $ 2,750 $ 2,889 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Dec. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment As of September 1, Additions Retirements and Other December 1, Land $ 145 $ 3 $ (3 ) $ 145 Buildings 6,653 183 (8 ) 6,828 Equipment (1) 25,910 1,282 (96 ) 27,096 Construction in progress (2) 475 (90 ) 3 388 Software 422 6 — 428 33,605 1,384 (104 ) 34,885 Accumulated depreciation (18,919 ) (744 ) 99 (19,564 ) $ 14,686 $ 640 $ (5 ) $ 15,321 (1) Included costs related to equipment not placed into service of $1.11 billion and $1.47 billion as of December 1, 2016 and September 1, 2016 , respectively. (2) Included building-related construction and tool installation costs for assets not placed into service. Depreciation expense was $744 million and $706 million for the first quarters of 2017 and 2016 , respectively. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Dec. 01, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments As of December 1, 2016 September 1, 2016 Investment Balance Ownership Percentage Investment Balance Ownership Percentage Inotera $ 1,360 33 % $ 1,314 33 % Tera Probe 25 40 % 36 40 % Other 16 Various 14 Various $ 1,401 $ 1,364 Equity in net income (loss) of equity method investees, net of tax, included the following: Quarter ended December 1, December 3, Inotera $ 9 $ 52 Tera Probe (12 ) 3 Other 1 4 $ (2 ) $ 59 Inotera We partnered with Nanya in Inotera, a Taiwan DRAM memory company, through December 6, 2016, at which time we acquired the remaining 67% interest in Inotera. As a result, we will consolidate Inotera's operating results beginning December 6, 2016. (See "Acquisition of Inotera" note.) As of December 1, 2016 , the market value of our equity interest in Inotera was $2.00 billion based on the closing trading price of 29.80 New Taiwan dollars per share in an active market. As of December 1, 2016 and September 1, 2016 , there were losses of $9 million and $44 million , respectively, in accumulated other comprehensive (loss) for cumulative translation adjustments from our equity investment in Inotera. 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, 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 and $379 million of DRAM products from Inotera in the first quarters of 2017 and 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 fair value measurement). As of December 1, 2016 , our proportionate share of Tera Probe's underlying equity exceeded our investment balance by $52 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 $21 million in the first quarters of 2017 and 2016 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Dec. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As of December 1, 2016 September 1, 2016 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizing assets Product and process technology $ 757 $ (421 ) $ 757 $ (402 ) Other 1 — 1 — 758 (421 ) 758 (402 ) Non-amortizing assets In-process R&D 108 — 108 — Intangible assets $ 866 $ (421 ) $ 866 $ (402 ) Goodwill (1) $ 104 $ 104 (1) Included in other noncurrent assets. During the first quarters of 2017 and 2016 , we capitalized $8 million and $9 million , respectively, for product and process technology with weighted-average useful lives of nine years. Amortization expense was $27 million and $31 million for the first quarters of 2017 and 2016 , respectively. The expected amortization expense is $82 million for the remainder of 2017 , $94 million for 2018 , $46 million for 2019 , $30 million for 2020 , and $26 million for 2021 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Dec. 01, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses As of December 1, September 1, Accounts payable $ 1,304 $ 1,186 Property, plant, and equipment payables 1,583 1,649 Salaries, wages, and benefits 351 289 Related party payables 340 273 Customer advances 156 132 Income and other taxes 60 41 Other 361 309 $ 4,155 $ 3,879 As of December 1, 2016 and September 1, 2016 , related party payables included $329 million and $266 million , respectively, due to Inotera primarily for the purchase of DRAM products. As of December 1, 2016 and September 1, 2016 , related party payables also included $11 million and $7 million , respectively, due to Tera Probe for probe services. As of December 1, 2016 and September 1, 2016 , customer advances included $130 million and $108 million , respectively, and other noncurrent liabilities also included $85 million and $107 million , respectively, for amounts received from Intel in 2016 under a Trade Non-Volatile Memory supply agreement. |
Debt
Debt | 3 Months Ended |
Dec. 01, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 1, 2016 September 1, 2016 Instrument Stated Rate (1) Effective Rate (1) Current Long-Term Total Current Long-Term Total MMJ creditor installment payments N/A 6.52 % $ 156 $ 588 $ 744 $ 189 $ 680 $ 869 Capital lease obligations (2) N/A N/A 338 925 1,263 380 1,026 1,406 1.258% notes 1.258 % 1.97 % 87 132 219 87 131 218 2022 senior notes 5.875 % 6.14 % — 591 591 — 590 590 2022 senior secured term loan B 4.360 % 4.77 % 5 729 734 5 730 735 2023 senior notes 5.250 % 5.43 % — 990 990 — 990 990 2023 senior secured notes 7.500 % 7.69 % — 1,237 1,237 — 1,237 1,237 2024 senior notes 5.250 % 5.38 % — 546 546 — 546 546 2025 senior notes 5.500 % 5.56 % — 1,139 1,139 — 1,139 1,139 2026 senior notes 5.625 % 5.73 % — 446 446 — 446 446 2032C convertible senior notes (3) 2.375 % 5.95 % — 206 206 — 204 204 2032D convertible senior notes (3) 3.125 % 6.33 % — 155 155 — 154 154 2033E convertible senior notes (3) 1.625 % 4.50 % 170 — 170 — 168 168 2033F convertible senior notes (3) 2.125 % 4.93 % 273 — 273 — 271 271 2043G convertible senior notes 3.000 % 6.76 % — 661 661 — 657 657 Other notes payable 2.513 % 2.65 % 126 145 271 95 185 280 $ 1,155 $ 8,490 $ 9,645 $ 756 $ 9,154 $ 9,910 (1) As of December 1, 2016 . (2) Weighted-average imputed rate of 3.4% and 3.3% as of December 1, 2016 and September 1, 2016 , respectively. (3) 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 September 30, 2016, these notes were convertible by the holders during the calendar quarter ended December 31, 2016. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended December 31, 2016; therefore, these notes are convertible by the holders through March 31, 2017. The 2033 Notes were classified as current as of December 1, 2016 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. Capital Lease Obligations In the first quarter of 2016, we recorded capital lease obligations aggregating $51 million at a weighted-average effective interest rate of 6.5% and a weighted-average expected term of 12 years. Convertible Senior Notes As of December 1, 2016 , 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 $683 million as of December 1, 2016 . 2022 Senior Secured Term Loan B Repricing Amendment On October 27, 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% . Other Facilities On November 18, 2016, we entered into a five -year variable-rate facility agreement to obtain up to $800 million of financing, collateralized by certain production equipment, which may be utilized in multiple draws until June 10, 2017. Interest is payable quarterly at a rate equal to three -month LIBOR plus 2.4% per annum. Principal is payable in 16 equal quarterly installments beginning in March 2018. The facility agreement 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 facility 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 loan in an amount sufficient to reduce such ratio to 0.8 or less. The facility agreement 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. On December 2, 2016, subsequent to the end of our first quarter of 2017, we drew $450 million under this facility. |
Contingencies
Contingencies | 3 Months Ended |
Dec. 01, 2016 | |
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 December 1, 2016 , 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
Redeemable Convertible Notes | 3 Months Ended |
Dec. 01, 2016 | |
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 September 30, 2016; therefore, the 2033 Notes were convertible by the holders during the calendar quarter ended December 31, 2016. As a result, the 2033 Notes were classified as current debt and the aggregate difference between the principal amount and the carrying value of $31 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
Equity | 3 Months Ended |
Dec. 01, 2016 | |
Equity [Abstract] | |
Equity | Equity Micron Shareholders' Equity Treasury Stock : As of December 1, 2016 , we held 54 million shares of treasury stock. All 54 million shares of treasury stock were included as part of the sale of the Micron Shares to Nanya subsequent to the end of our first quarter of 2017. 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 December 1, 2016 , 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 was below strike prices for all capped calls, to $719 million , if the trading price of our stock was at or above the cap prices for all capped calls. Expiration of Capped Calls : A portion of our 2032C and 2032D Capped Calls expired in the first quarter of 2017. We elected share settlement and in the second quarter of 2017 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. Accumulated Other Comprehensive (Loss) : Changes in accumulated other comprehensive (loss) by component for the quarter ended December 1, 2016 were as follows: Cumulative Foreign Currency Translation Adjustments Gains (Losses) on Derivative Instruments, Net Gains (Losses) on Investments, Net Pension Liability Adjustments Total As of September 1, 2016 $ (49 ) $ 2 $ — $ 12 $ (35 ) Other comprehensive income (loss) 37 (9 ) (1 ) (1 ) 26 Tax effects — 2 — — 2 Other comprehensive income (loss) 37 (7 ) (1 ) (1 ) 28 As of December 1, 2016 $ (12 ) $ (5 ) $ (1 ) $ 11 $ (7 ) Noncontrolling Interests in Subsidiaries As of December 1, 2016 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 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 quarter 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 $56 million and $46 million for the first quarters of 2017 and 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 $123 million and $126 million for the first quarters of 2017 and 2016 , respectively. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets: As of December 1, September 1, Assets Cash and equivalents $ 77 $ 98 Receivables 83 89 Inventories 91 68 Other current assets 4 6 Total current assets 255 261 Property, plant, and equipment, net 1,748 1,792 Other noncurrent assets 47 50 Total assets $ 2,050 $ 2,103 Liabilities Accounts payable and accrued expenses $ 131 $ 175 Deferred income 6 7 Current debt 53 16 Total current liabilities 190 198 Long-term debt 41 66 Other noncurrent liabilities 92 94 Total liabilities $ 323 $ 358 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, our ability to access IMFT's cash and other assets through dividends, loans, or advances, including to finance our other operations, is subject to agreement by Intel. As a result, our total restricted net assets (net assets less intercompany balances and noncontrolling interests) as of December 1, 2016 were $3.13 billion for the MMJ Group and $895 million for IMFT, which included cash and equivalents of $684 million for the MMJ Group and $77 million for IMFT. As of December 1, 2016 , our retained earnings included undistributed earnings from our equity method investees of $290 million . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 01, 2016 | |
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: As of December 1, 2016 September 1, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ creditor installment payments $ 7,139 $ 6,917 $ 7,257 $ 7,050 Convertible notes 2,548 1,465 2,408 1,454 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
Derivative Instruments | 3 Months Ended |
Dec. 01, 2016 | |
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 35 days. In addition, to mitigate the risk of the yen strengthening against the U.S. dollar on MMJ creditor installment payments due in December 2017 and 2018, we entered into forward contracts to purchase 18 billion yen on December 1, 2017 and 28 billion yen on December 3, 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). In connection with the Inotera Acquisition, we borrowed 80 billion New Taiwan dollars. To hedge our currency exposure of this borrowing, in December 2016, subsequent to the end of our first quarter of 2017, we entered into a series of currency forward contracts to purchase an aggregate of 80 billion New Taiwan dollars under a rolling hedge strategy. The forward contracts expire at various dates through June 2017. The following summarizes our derivative instruments without hedge accounting designation, which consisted of forward contracts to purchase the noted currencies as a hedge of our net position in monetary assets and liabilities: Notional Amount (in U.S. Dollars) Fair Value Current Liabilities (1) Noncurrent Liabilities (2) As of December 1, 2016 Yen $ 1,396 $ (18 ) $ (4 ) Singapore dollar 204 (1 ) — Euro 175 — — Other 48 (1 ) — $ 1,823 $ (20 ) $ (4 ) As of September 1, 2016 Yen $ 1,668 $ (10 ) $ — Singapore dollar 206 — — Euro 93 — — Other 85 (1 ) — $ 2,052 $ (11 ) $ — (1) Included in accounts payable and accrued expenses – other. (2) Included in other noncurrent liabilities. 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. Net losses for foreign exchange contracts without hedge accounting designation were $178 million and $21 million for the first quarters of 2017 and 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 or excluded portion of the realized and unrealized gain or loss is included in other non-operating income (expense). Total notional amounts and gross fair values for derivative instruments with cash flow hedge accounting designation were as follows: Notional Amount (in U.S. Dollars) Fair Value Current Assets (1) Current Liabilities (2) As of December 1, 2016 Yen $ 62 $ — $ (6 ) Euro 10 — (1 ) $ 72 $ — $ (7 ) 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. For the first quarters of 2017 and 2016 , we recognized losses of $9 million and $4 million , respectively, in accumulated other comprehensive income (loss) from the effective portion of cash flow hedges. The ineffective and excluded portions of cash flow hedges recognized in other non-operating income (expense) were not material in the first quarters of 2017 and 2016 . For the first quarter of 2016 , we reclassified gains of $1 million from accumulated other comprehensive income (loss) to earnings. As of December 1, 2016 , $2 million of net gains from cash flow hedges included in accumulated other comprehensive income (loss) is expected to be reclassified into earnings in the next 12 months. |
Equity Plans
Equity Plans | 3 Months Ended |
Dec. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Plans | Equity Plans As of December 1, 2016 , 84 million shares were available for future awards under our equity plans. Stock Options Quarter ended December 1, December 3, Stock options granted 2 2 Weighted-average grant-date fair value per share $ 7.66 $ 7.99 Average expected life in years 5.7 5.6 Weighted-average expected volatility 46 % 46 % Weighted-average risk-free interest rate 1.4 % 1.5 % Expected dividend yield 0 % 0 % Restricted Stock and Restricted Stock Units ("Restricted Stock Awards") Quarter ended December 1, December 3, Restricted stock award shares granted 3 3 Weighted-average grant-date fair value per share $ 18.22 $ 18.52 Stock-based Compensation Expense Quarter ended December 1, December 3, Stock-based compensation expense by caption Cost of goods sold $ 19 $ 18 Selling, general, and administrative 15 17 Research and development 12 11 $ 46 $ 46 Stock-based compensation expense by type of award Stock options $ 17 $ 20 Restricted stock awards 29 26 $ 46 $ 46 As of December 1, 2016 , $369 million of total unrecognized compensation costs for unvested awards was expected to be recognized through the first quarter of 2021 , resulting in a weighted-average period of 1.2 years. Stock-based compensation expense in the above presentation does not reflect any significant income tax benefits, which is consistent with our treatment of income or loss from our U.S. operations. |
Restructure and Asset Impairmen
Restructure and Asset Impairments | 3 Months Ended |
Dec. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructure and Asset Impairments | Restructure and Asset Impairments Quarter ended December 1, December 3, 2016 Restructuring Plan $ 29 $ — Other — 15 $ 29 $ 15 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 the business, and other non-headcount related spending reductions. In connection with the plan, we incurred charges of $29 million in the first quarter of 2017 and $58 million in the fourth quarter of 2016 and do not expect to incur additional material charges. As of December 1, 2016 and September 1, 2016 , we had accrued liabilities of $17 million and $24 million , respectively, related to the 2016 Restructuring Plan. For the first quarter of 2017, the restructure and asset impairment charges related primarily to our CNBU and MBU operating segments. |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 3 Months Ended |
Dec. 01, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net Quarter ended December 1, 2016 December 3, 2015 Loss from changes in currency exchange rates $ (12 ) $ (3 ) Other (2 ) (1 ) $ (14 ) $ (4 ) Losses from changes in currency exchange rates for the first quarter of 2017 included net losses for foreign exchange contracts without hedge accounting designation of $178 million offset by revaluations of our monetary assets and liabilities. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax (provision) benefit included the following: Quarter ended December 1, 2016 December 3, 2015 Utilization of and other changes in net deferred tax assets of MMJ and MMT $ (13 ) $ (22 ) U.S. valuation allowance release resulting from business acquisition — 41 Other, primarily non-U.S. operations (18 ) (15 ) $ (31 ) $ 4 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 first quarters of 2017 and 2016 were substantially offset by changes in the valuation allowance. We operate in 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 first quarters of 2017 and 2016 by $40 million (benefitting our diluted earnings per share by $0.04 ) and $12 million ( $0.01 per diluted share), respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarter ended December 1, December 3, Net income available to Micron shareholders – Basic and Diluted $ 180 $ 206 Weighted-average common shares outstanding – Basic 1,040 1,035 Dilutive effect of equity plans and convertible notes 51 50 Weighted-average common shares outstanding – Diluted 1,091 1,085 Earnings per share Basic $ 0.17 $ 0.20 Diluted 0.16 0.19 Antidilutive potential common shares that could dilute basic earnings per share in the future were 64 million and 66 million for the first quarters of 2017 and 2016, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 01, 2016 | |
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. Items not allocated are identified in the table below. Comparative periods have been revised to reflect these changes. We do not identify or report internally our assets 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. Quarter ended December 1, December 3, Net sales CNBU $ 1,470 $ 1,139 MBU 1,032 834 SBU 860 884 EBU 578 479 All Other 30 14 $ 3,970 $ 3,350 Operating income CNBU $ 204 $ 40 MBU 89 148 SBU (45 ) (14 ) EBU 178 121 All Other 12 3 438 298 Unallocated Stock-based compensation (46 ) (46 ) Restructure and asset impairments (29 ) (15 ) Other (4 ) (5 ) (79 ) (66 ) Operating income $ 359 $ 232 |
Certain Concentrations
Certain Concentrations | 3 Months Ended |
Dec. 01, 2016 | |
Risks and Uncertainties [Abstract] | |
Certain Concentrations | Certain Concentrations Customer concentrations included net sales to Apple of 11% and Intel of 11% for the first quarter of 2017. |
Business and Basis of Present32
Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 01, 2016 | |
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 (Pol
Variable Interest Entities (Policies) | 3 Months Ended |
Dec. 01, 2016 | |
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. |
Cash and Investments (Tables)
Cash and Investments (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
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: As of December 1, 2016 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 $ 3,923 $ — $ — $ 3,923 $ 2,258 $ — $ — $ 2,258 Level 1 (2) Money market funds 82 — — 82 1,507 — — 1,507 Level 2 (3) Certificates of deposit 134 3 — 137 373 33 — 406 Corporate bonds — 14 71 85 — 142 235 377 Government securities — 13 63 76 2 62 82 146 Asset-backed securities — — 21 21 — 12 97 109 Commercial paper — — — — — 9 — 9 $ 4,139 $ 30 $ 155 $ 4,324 $ 4,140 $ 258 $ 414 $ 4,812 (1) The maturities of long-term marketable securities 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 December 1, 2016 . |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Receivables [Abstract] | |
Schedule of Receivables | As of December 1, September 1, Trade receivables $ 2,162 $ 1,765 Income and other taxes 135 119 Other 156 184 $ 2,453 $ 2,068 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 1, September 1, Finished goods $ 787 $ 899 Work in process 1,722 1,761 Raw materials and supplies 241 229 $ 2,750 $ 2,889 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | As of September 1, Additions Retirements and Other December 1, Land $ 145 $ 3 $ (3 ) $ 145 Buildings 6,653 183 (8 ) 6,828 Equipment (1) 25,910 1,282 (96 ) 27,096 Construction in progress (2) 475 (90 ) 3 388 Software 422 6 — 428 33,605 1,384 (104 ) 34,885 Accumulated depreciation (18,919 ) (744 ) 99 (19,564 ) $ 14,686 $ 640 $ (5 ) $ 15,321 (1) Included costs related to equipment not placed into service of $1.11 billion and $1.47 billion as of December 1, 2016 and September 1, 2016 , respectively. (2) Included building-related construction and tool installation costs for assets not placed into service. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | As of December 1, 2016 September 1, 2016 Investment Balance Ownership Percentage Investment Balance Ownership Percentage Inotera $ 1,360 33 % $ 1,314 33 % Tera Probe 25 40 % 36 40 % Other 16 Various 14 Various $ 1,401 $ 1,364 Equity in net income (loss) of equity method investees, net of tax, included the following: Quarter ended December 1, December 3, Inotera $ 9 $ 52 Tera Probe (12 ) 3 Other 1 4 $ (2 ) $ 59 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | As of December 1, 2016 September 1, 2016 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizing assets Product and process technology $ 757 $ (421 ) $ 757 $ (402 ) Other 1 — 1 — 758 (421 ) 758 (402 ) Non-amortizing assets In-process R&D 108 — 108 — Intangible assets $ 866 $ (421 ) $ 866 $ (402 ) Goodwill (1) $ 104 $ 104 (1) Included in other noncurrent assets. |
Accounts Payable and Accrued 40
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable And Accrued Expenses | As of December 1, September 1, Accounts payable $ 1,304 $ 1,186 Property, plant, and equipment payables 1,583 1,649 Salaries, wages, and benefits 351 289 Related party payables 340 273 Customer advances 156 132 Income and other taxes 60 41 Other 361 309 $ 4,155 $ 3,879 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 1, 2016 September 1, 2016 Instrument Stated Rate (1) Effective Rate (1) Current Long-Term Total Current Long-Term Total MMJ creditor installment payments N/A 6.52 % $ 156 $ 588 $ 744 $ 189 $ 680 $ 869 Capital lease obligations (2) N/A N/A 338 925 1,263 380 1,026 1,406 1.258% notes 1.258 % 1.97 % 87 132 219 87 131 218 2022 senior notes 5.875 % 6.14 % — 591 591 — 590 590 2022 senior secured term loan B 4.360 % 4.77 % 5 729 734 5 730 735 2023 senior notes 5.250 % 5.43 % — 990 990 — 990 990 2023 senior secured notes 7.500 % 7.69 % — 1,237 1,237 — 1,237 1,237 2024 senior notes 5.250 % 5.38 % — 546 546 — 546 546 2025 senior notes 5.500 % 5.56 % — 1,139 1,139 — 1,139 1,139 2026 senior notes 5.625 % 5.73 % — 446 446 — 446 446 2032C convertible senior notes (3) 2.375 % 5.95 % — 206 206 — 204 204 2032D convertible senior notes (3) 3.125 % 6.33 % — 155 155 — 154 154 2033E convertible senior notes (3) 1.625 % 4.50 % 170 — 170 — 168 168 2033F convertible senior notes (3) 2.125 % 4.93 % 273 — 273 — 271 271 2043G convertible senior notes 3.000 % 6.76 % — 661 661 — 657 657 Other notes payable 2.513 % 2.65 % 126 145 271 95 185 280 $ 1,155 $ 8,490 $ 9,645 $ 756 $ 9,154 $ 9,910 (1) As of December 1, 2016 . (2) Weighted-average imputed rate of 3.4% and 3.3% as of December 1, 2016 and September 1, 2016 , respectively. (3) 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 September 30, 2016, these notes were convertible by the holders during the calendar quarter ended December 31, 2016. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended December 31, 2016; therefore, these notes are convertible by the holders through March 31, 2017. The 2033 Notes were classified as current as of December 1, 2016 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. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Variable Interest Entity [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive (loss) by component for the quarter ended December 1, 2016 were as follows: Cumulative Foreign Currency Translation Adjustments Gains (Losses) on Derivative Instruments, Net Gains (Losses) on Investments, Net Pension Liability Adjustments Total As of September 1, 2016 $ (49 ) $ 2 $ — $ 12 $ (35 ) Other comprehensive income (loss) 37 (9 ) (1 ) (1 ) 26 Tax effects — 2 — — 2 Other comprehensive income (loss) 37 (7 ) (1 ) (1 ) 28 As of December 1, 2016 $ (12 ) $ (5 ) $ (1 ) $ 11 $ (7 ) |
Schedule Of Noncontrolling Interests In Subsidiaries | As of December 1, 2016 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 |
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: As of December 1, September 1, Assets Cash and equivalents $ 77 $ 98 Receivables 83 89 Inventories 91 68 Other current assets 4 6 Total current assets 255 261 Property, plant, and equipment, net 1,748 1,792 Other noncurrent assets 47 50 Total assets $ 2,050 $ 2,103 Liabilities Accounts payable and accrued expenses $ 131 $ 175 Deferred income 6 7 Current debt 53 16 Total current liabilities 190 198 Long-term debt 41 66 Other noncurrent liabilities 92 94 Total liabilities $ 323 $ 358 Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
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: As of December 1, 2016 September 1, 2016 Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ creditor installment payments $ 7,139 $ 6,917 $ 7,257 $ 7,050 Convertible notes 2,548 1,465 2,408 1,454 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Derivative Instrument Detail [Abstract] | |
Schedule of Derivative Instruments without Hedge Accounting Designation | Notional Amount (in U.S. Dollars) Fair Value Current Liabilities (1) Noncurrent Liabilities (2) As of December 1, 2016 Yen $ 1,396 $ (18 ) $ (4 ) Singapore dollar 204 (1 ) — Euro 175 — — Other 48 (1 ) — $ 1,823 $ (20 ) $ (4 ) As of September 1, 2016 Yen $ 1,668 $ (10 ) $ — Singapore dollar 206 — — Euro 93 — — Other 85 (1 ) — $ 2,052 $ (11 ) $ — (1) Included in accounts payable and accrued expenses – other. (2) Included in other noncurrent liabilities. |
Schedule of Derivative Instruments with Cash Flow Hedge Accounting Designation | Notional Amount (in U.S. Dollars) Fair Value Current Assets (1) Current Liabilities (2) As of December 1, 2016 Yen $ 62 $ — $ (6 ) Euro 10 — (1 ) $ 72 $ — $ (7 ) 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. |
Equity Plans (Tables)
Equity Plans (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options granted and assumptions used in Black-Scholes option valuation model | Quarter ended December 1, December 3, Stock options granted 2 2 Weighted-average grant-date fair value per share $ 7.66 $ 7.99 Average expected life in years 5.7 5.6 Weighted-average expected volatility 46 % 46 % Weighted-average risk-free interest rate 1.4 % 1.5 % Expected dividend yield 0 % 0 % |
Schedule restricted stock awards activity | Quarter ended December 1, December 3, Restricted stock award shares granted 3 3 Weighted-average grant-date fair value per share $ 18.22 $ 18.52 |
Stock-based compensation expense by caption | Quarter ended December 1, December 3, Stock-based compensation expense by caption Cost of goods sold $ 19 $ 18 Selling, general, and administrative 15 17 Research and development 12 11 $ 46 $ 46 Stock-based compensation expense by type of award Stock options $ 17 $ 20 Restricted stock awards 29 26 $ 46 $ 46 |
Restructure and Asset Impairm46
Restructure and Asset Impairments (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructure and Related Costs | Quarter ended December 1, December 3, 2016 Restructuring Plan $ 29 $ — Other — 15 $ 29 $ 15 |
Other Non-Operating Income (E47
Other Non-Operating Income (Expense), Net (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense), Net | Quarter ended December 1, 2016 December 3, 2015 Loss from changes in currency exchange rates $ (12 ) $ (3 ) Other (2 ) (1 ) $ (14 ) $ (4 ) |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Our income tax (provision) benefit included the following: Quarter ended December 1, 2016 December 3, 2015 Utilization of and other changes in net deferred tax assets of MMJ and MMT $ (13 ) $ (22 ) U.S. valuation allowance release resulting from business acquisition — 41 Other, primarily non-U.S. operations (18 ) (15 ) $ (31 ) $ 4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Quarter ended December 1, December 3, Net income available to Micron shareholders – Basic and Diluted $ 180 $ 206 Weighted-average common shares outstanding – Basic 1,040 1,035 Dilutive effect of equity plans and convertible notes 51 50 Weighted-average common shares outstanding – Diluted 1,091 1,085 Earnings per share Basic $ 0.17 $ 0.20 Diluted 0.16 0.19 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 01, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Results by Segment | Quarter ended December 1, December 3, Net sales CNBU $ 1,470 $ 1,139 MBU 1,032 834 SBU 860 884 EBU 578 479 All Other 30 14 $ 3,970 $ 3,350 Operating income CNBU $ 204 $ 40 MBU 89 148 SBU (45 ) (14 ) EBU 178 121 All Other 12 3 438 298 Unallocated Stock-based compensation (46 ) (46 ) Restructure and asset impairments (29 ) (15 ) Other (4 ) (5 ) (79 ) (66 ) Operating income $ 359 $ 232 |
Recently Adopted Accounting S51
Recently Adopted Accounting Standards Recently Adopted Accounting Standards (Details) - New Accounting Pronouncement, Early Adoption, Effect - Accounting Standards Update 2016-09 - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Sep. 02, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred Tax Assets, Increase from ASU adoption | $ 325 | |
DTA Valuation Allowance, Increase from ASU adoption | $ 325 |
Acquisition of Inotera (Details
Acquisition of Inotera (Details) shares in Millions, $ in Millions, TWD in Billions | Dec. 06, 2016USD ($)payment | Dec. 06, 2016TWD | Dec. 31, 2016USD ($)shares | Dec. 06, 2016TWDpayment | Dec. 01, 2016 | Sep. 01, 2016 |
Subsequent Event | Inotera | ||||||
Acquisition of Inotera [Abstract] | ||||||
Percentage of Inotera voting interests acquired | 67.00% | 67.00% | ||||
Aggregate consideration for Inotera shares not already owned | $ 4,100 | |||||
Subsequent Event | Inotera | Private Placement | ||||||
Equity [Abstract] | ||||||
Number of Micron Shares issued to Nanya as consideration for Inotera shares not already owned (in shares) | shares | 58 | |||||
Value of Micron Shares issued to Nanya as consideration for Inotera shares not already owned | $ 981 | |||||
Treasury shares included in sale of Micron Shares to Nanya | shares | 54 | |||||
Subsequent Event | Inotera | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
2021 Term Loan draw | $ 2,500 | TWD 80 | ||||
Debt instrument, original term | 5 years | 5 years | ||||
Debt instruments number of periodic payments | payment | 6 | 6 | ||||
Debt Instrument, Covenant Compliance, Penalty Interest Percent | 0.25% | 0.25% | ||||
Subsequent Event | Inotera | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | Inotera Stock | ||||||
Secured Debt [Abstract] | ||||||
Percentage of post-acquisition Inotera shares subject to collateralization | 82.00% | 82.00% | ||||
Subsequent Event | Inotera | TAIBOR | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Margin on variable rate financing | 2.05% | 2.05% | ||||
Subsequent Event | Inotera | Maximum | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument Variable Reference Rate Period 1 | 6 months | 6 months | ||||
Subsequent Event | Inotera | Maximum | Debt Covenant Period 2017_2018 | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 5.5 | 5.5 | ||||
Subsequent Event | Inotera | Maximum | Debt Covenant Period 2019_2021 | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 4.5 | 4.5 | ||||
Subsequent Event | Inotera | Maximum | Debt Covenant Period 2018_2019 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 3 | 3 | ||||
Subsequent Event | Inotera | Maximum | Debt Covenant Period 2020_2021 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 2.5 | 2.5 | ||||
Subsequent Event | Inotera | Maximum | Debt Covenant Period 2017 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Ratio Of Total Debt To EBITDA | 3.5 | 3.5 | ||||
Subsequent Event | Inotera | Minimum | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument Variable Reference Rate Period 1 | 3 months | 3 months | ||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2017_2018 | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | $ 125 | TWD 4 | ||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2019_2020 | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | 203 | 6.5 | ||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2018_2019 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | 12,500 | |||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2020_2021 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | 16,500 | |||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2017 | 2021 Secured Notes NTD Term Loan | Secured Debt | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | 9,000 | |||||
Subsequent Event | Inotera | Minimum | Debt Covenant Period 2021 | 2021 Secured Notes NTD Term Loan | Secured Debt | Micron Semiconductor Taiwan Co. Ltd. | ||||||
Secured Debt [Abstract] | ||||||
Debt Instrument, Covenant, Tangible net worth | $ 374 | TWD 12 | ||||
Inotera | ||||||
Acquisition of Inotera [Abstract] | ||||||
Equity Method Investment, Ownership Percentage (in hundredths) | 33.00% | 33.00% | ||||
Inotera | Nanya and certain of its affiliates | ||||||
Acquisition of Inotera [Abstract] | ||||||
Percentage interest held by a third party (in hundredths) | 32.00% |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) | 3 Months Ended | ||||
Dec. 01, 2016 | Dec. 03, 2015 | Sep. 01, 2016 | Sep. 03, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | $ 4,139,000,000 | $ 2,605,000,000 | $ 4,140,000,000 | $ 2,287,000,000 | |
Short-term investments | 30,000,000 | 258,000,000 | |||
Long-term marketable investments | [1] | 155,000,000 | 414,000,000 | ||
Total fair value | 4,324,000,000 | 4,812,000,000 | |||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | |||||
Proceeds from sales of available-for-sale securities | 512,000,000 | $ 407,000,000 | |||
Available-for-sale securities in an unrealized loss position for longer than twelve months | $ 0 | ||||
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 | $ 3,923,000,000 | 2,258,000,000 | |||
Short-term investments | 0 | 0 | |||
Long-term marketable investments | 0 | 0 | |||
Total fair value | 3,923,000,000 | 2,258,000,000 | |||
Money market funds | Level 1 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [2] | 82,000,000 | 1,507,000,000 | ||
Short-term investments | [2] | 0 | 0 | ||
Long-term marketable investments | [1],[2] | 0 | 0 | ||
Total fair value | [2] | 82,000,000 | 1,507,000,000 | ||
Certificates of deposit | Level 2 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [3] | 134,000,000 | 373,000,000 | ||
Short-term investments | [3] | 3,000,000 | 33,000,000 | ||
Long-term marketable investments | [1],[3] | 0 | 0 | ||
Total fair value | [3] | 137,000,000 | 406,000,000 | ||
Certificates of deposit | Level 2 | Other noncurrent assets | |||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | |||||
Restricted Cash and Cash Equivalents | 2,000,000 | 59,000,000 | |||
Corporate bonds | Level 2 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [3] | 0 | 0 | ||
Short-term investments | [3] | 14,000,000 | 142,000,000 | ||
Long-term marketable investments | [1],[3] | 71,000,000 | 235,000,000 | ||
Total fair value | [3] | 85,000,000 | 377,000,000 | ||
Government securities | Level 2 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [3] | 0 | 2,000,000 | ||
Short-term investments | [3] | 13,000,000 | 62,000,000 | ||
Long-term marketable investments | [1],[3] | 63,000,000 | 82,000,000 | ||
Total fair value | [3] | 76,000,000 | 146,000,000 | ||
Asset-backed securities | Level 2 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [3] | 0 | 0 | ||
Short-term investments | [3] | 0 | 12,000,000 | ||
Long-term marketable investments | [1],[3] | 21,000,000 | 97,000,000 | ||
Total fair value | [3] | 21,000,000 | 109,000,000 | ||
Commercial paper | Level 2 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cash and equivalents | [3] | 0 | 0 | ||
Short-term investments | [3] | 0 | 9,000,000 | ||
Long-term marketable investments | [1],[3] | 0 | 0 | ||
Total fair value | [3] | $ 0 | $ 9,000,000 | ||
[1] | The maturities of long-term marketable securities 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 December 1, 2016. |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 |
Receivables [Abstract] | ||
Trade receivables | $ 2,162 | $ 1,765 |
Income and other taxes | 135 | 119 |
Other | 156 | 184 |
Receivables | 2,453 | 2,068 |
Intel | Collaborative Arrangement Process Design and Process Development | ||
Receivables [Abstract] | ||
Other | $ 58 | $ 53 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Finished goods | $ 787 | $ 899 |
Work in process | 1,722 | 1,761 |
Raw materials and supplies | 241 | 229 |
Inventories | $ 2,750 | $ 2,889 |
Property, Plant, and Equipmen56
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 01, 2016 | Dec. 03, 2015 | 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 | 1,384 | |||
Property, plant and equipment, retirements and other | (104) | |||
Property, plant and equipment, gross ending balance | 34,885 | |||
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 | (744) | |||
Retirements and other changes to accumulated depreciation | 99 | |||
Accumulated depreciation ending balance | (19,564) | |||
Movement in Property, Plant and Equipment, Net [Roll Forward] | ||||
Property, plant, and equipment, net | 15,321 | $ 14,686 | ||
Property, plant and equipment, net affect of additions and depreciation expense | 640 | |||
Property, plant and equipment, net affect retirements and other adjustments | (5) | |||
Depreciation [Abstract] | ||||
Depreciation expense | 744 | $ 706 | ||
Land | ||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Property, plant and equipment, gross beginning balance | 145 | |||
Property, Plant and Equipment, Additions | 3 | |||
Property, plant and equipment, retirements and other | (3) | |||
Property, plant and equipment, gross ending balance | 145 | |||
Buildings | ||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Property, plant and equipment, gross beginning balance | 6,653 | |||
Property, Plant and Equipment, Additions | 183 | |||
Property, plant and equipment, retirements and other | (8) | |||
Property, plant and equipment, gross ending balance | 6,828 | |||
Equipment | ||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Property, plant and equipment, gross beginning balance | [1] | 25,910 | ||
Property, Plant and Equipment, Additions | 1,282 | |||
Property, plant and equipment, retirements and other | (96) | |||
Property, plant and equipment, gross ending balance | [1] | 27,096 | ||
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 | 1,110 | |||
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 | [2] | (90) | ||
Property, plant and equipment, retirements and other | [2] | 3 | ||
Property, plant and equipment, gross ending balance | [2] | 388 | ||
Software | ||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Property, plant and equipment, gross beginning balance | 422 | |||
Property, Plant and Equipment, Additions | 6 | |||
Property, plant and equipment, retirements and other | 0 | |||
Property, plant and equipment, gross ending balance | $ 428 | |||
[1] | Included costs related to equipment not placed into service of $1.11 billion and $1.47 billion as of December 1, 2016 and September 1, 2016, respectively. | |||
[2] | Included building-related construction and tool installation costs for assets not placed into service. |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions | 3 Months Ended | |||||
Dec. 01, 2016USD ($) | Dec. 03, 2015USD ($) | Dec. 06, 2016 | Dec. 01, 2016TWD / shares | Dec. 01, 2016USD ($) | Sep. 01, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Balance | $ 1,401 | $ 1,364 | ||||
Equity in net income (loss) of equity method investees, net of tax | $ (2) | $ 59 | ||||
Inotera | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Balance | $ 1,360 | $ 1,314 | ||||
Ownership Percentage (in hundredths) | 33.00% | 33.00% | ||||
Equity in net income (loss) of equity method investees, net of tax | 9 | 52 | ||||
Market value of equity interests | $ 2,000 | |||||
Quoted market price per share of investee stock | TWD / shares | TWD 29.80 | |||||
Amount in accumulated other comprehensive income (loss) for cumulative translation adjustments on its investment | (9) | $ (44) | ||||
Tera Probe | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment Balance | $ 25 | $ 36 | ||||
Ownership Percentage (in hundredths) | 40.00% | 40.00% | ||||
Equity in net income (loss) of equity method investees, net of tax | $ (12) | 3 | ||||
Difference between cost of Tera Probe investment and underlying equity | $ 52 | |||||
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 | $ 16 | $ 14 | ||||
Equity in net income (loss) of equity method investees, net of tax | $ 1 | $ 4 | ||||
Inotera | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of Inotera voting interests acquired | 67.00% |
Equity Method Investments - 2 (
Equity Method Investments - 2 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Inotera | Inventories | DRAM | ||
Related Party Transaction [Line Items] | ||
Purchases of DRAM products from Inotera | $ 504 | $ 379 |
Tera Probe | ||
Related Party Transaction [Line Items] | ||
Related party purchases from Tera Probe | $ 16 | $ 21 |
Intangible Assets and Goodwil59
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 01, 2016 | Dec. 03, 2015 | Sep. 01, 2016 | |
Amortizing assets [Line Items] | |||
Gross Amount | $ 758 | $ 758 | |
Accumulated Amortization | (421) | (402) | |
Amortization expense for intangible assets | 27 | $ 31 | |
Annual amortization expense for intangible assets [Abstract] | |||
2,017 | 82 | ||
2,018 | 94 | ||
2,019 | 46 | ||
2,020 | 30 | ||
2,021 | 26 | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Intangible Assets, Gross (Excluding Goodwill) | 866 | 866 | |
Other noncurrent assets | |||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Goodwill | 104 | 104 | |
In-process R&D | |||
Non-amortizing assets [Line Items] | |||
Gross Amount | 108 | 108 | |
Product and process technology | |||
Amortizing assets [Line Items] | |||
Gross Amount | 757 | 757 | |
Accumulated Amortization | (421) | (402) | |
Product and process technology intangible asset capitalized during period | $ 8 | $ 9 | |
Product and process technology intangible asset capitalized during period, weighted-average useful lives (in years) | 9 years | 9 years | |
Other | |||
Amortizing assets [Line Items] | |||
Gross Amount | $ 1 | 1 | |
Accumulated Amortization | $ 0 | $ 0 |
Accounts Payable and Accrued 60
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 |
Accounts payable | $ 1,304 | $ 1,186 |
Property, plant, and equipment payables | 1,583 | 1,649 |
Salaries, wages, and benefits | 351 | 289 |
Related party payables | 340 | 273 |
Customer advances | 156 | 132 |
Income and other taxes | 60 | 41 |
Other | 361 | 309 |
Total accounts payable and accrued expenses | 4,155 | 3,879 |
Non-Volatile Memory | Intel | Trade Sales | ||
Customer advances | 130 | 108 |
Non-Volatile Memory | Other noncurrent liabilities | Intel | Trade Sales | ||
Other Liabilities, Noncurrent [Abstract] | ||
Noncurrent customer advances | 85 | 107 |
Inotera | DRAM | ||
Related party payables | 329 | 266 |
Tera Probe | ||
Related party payables | $ 11 | $ 7 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) $ in Millions | Dec. 02, 2016USD ($) | Dec. 01, 2016USD ($)payment | Oct. 26, 2016 | Dec. 01, 2016USD ($)paymentd | Sep. 01, 2016USD ($) | |||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 1,155 | $ 1,155 | $ 756 | |||||
Long-term debt | 8,490 | 8,490 | 9,154 | |||||
Debt | 9,645 | 9,645 | 9,910 | |||||
Reorganization obligation | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | 156 | 156 | 189 | |||||
Long-term debt | 588 | 588 | 680 | |||||
Debt | $ 744 | $ 744 | 869 | |||||
Effective rate (in ten thousandths) | [1] | 6.52% | 6.52% | |||||
Capital lease obligations | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | [2] | $ 338 | $ 338 | 380 | ||||
Long-term debt | [2] | 925 | 925 | 1,026 | ||||
Debt | [2] | $ 1,263 | 1,263 | $ 1,406 | ||||
Capital Lease Obligations | ||||||||
Capital lease obligation incurred | $ 51 | |||||||
Capital lease obligations | Weighted Average | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Effective rate (in ten thousandths) | 3.40% | 3.40% | 3.30% | |||||
Capital Lease Obligations | ||||||||
Weighted average effective interest rate incurred in period (in thousandths) | 6.50% | |||||||
Remaining term (in years) | 12 years | |||||||
Secured Debt | 1.258% senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 87 | $ 87 | $ 87 | |||||
Long-term debt | 132 | 132 | 131 | |||||
Debt | $ 219 | $ 219 | 218 | |||||
Stated rate | [1] | 1.258% | 1.258% | |||||
Effective rate (in ten thousandths) | [1] | 1.97% | 1.97% | |||||
Secured Debt | 2022 senior secured term loan B | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 5 | $ 5 | 5 | |||||
Long-term debt | 729 | 729 | 730 | |||||
Debt | $ 734 | $ 734 | 735 | |||||
Stated rate | [1] | 4.36% | 4.36% | |||||
Effective rate (in ten thousandths) | [1] | 4.77% | 4.77% | |||||
Secured Debt | 2022 senior secured term loan B | Variable Interest Rate Base Rate Option | ||||||||
2022 Senior Secured Term Loan B Repricing Amendment | ||||||||
Margin on variable rate financing | 2.75% | 5.00% | ||||||
Other Facilities | ||||||||
Margin on variable rate financing (in thousandths) | 2.75% | 5.00% | ||||||
Secured Debt | 2022 senior secured term loan B | LIBOR | Variable Interest Rate LIBOR Rate Option | ||||||||
2022 Senior Secured Term Loan B Repricing Amendment | ||||||||
Margin on variable rate financing | 3.75% | 6.00% | ||||||
Other Facilities | ||||||||
Margin on variable rate financing (in thousandths) | 3.75% | 6.00% | ||||||
Secured Debt | 2023 senior secured notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 1,237 | 1,237 | 1,237 | |||||
Debt | $ 1,237 | $ 1,237 | 1,237 | |||||
Stated rate | [1] | 7.50% | 7.50% | |||||
Effective rate (in ten thousandths) | [1] | 7.69% | 7.69% | |||||
Secured Debt | Secured Debt 7 | ||||||||
Other Facilities | ||||||||
Debt instrument, original term | 5 years | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | $ 800 | ||||||
Debt instruments number of periodic payments | payment | 16 | 16 | ||||||
Secured Debt | Secured Debt 7 | Subsequent Event | ||||||||
Other Facilities | ||||||||
Draw on facility agreement | $ 450 | |||||||
Secured Debt | Secured Debt 7 | Maximum | ||||||||
Other Facilities | ||||||||
Debt Instrument, covenant, ratio of debt to fair value of equipment | 0.8 | 0.8 | ||||||
Secured Debt | Secured Debt 7 | LIBOR | ||||||||
2022 Senior Secured Term Loan B Repricing Amendment | ||||||||
Margin on variable rate financing | 2.40% | |||||||
Other Facilities | ||||||||
Debt Instrument Variable Reference Rate Period 1 | 3 months | |||||||
Margin on variable rate financing (in thousandths) | 2.40% | |||||||
Corporate bonds | 2022 senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 591 | 591 | 590 | |||||
Debt | $ 591 | $ 591 | 590 | |||||
Stated rate | [1] | 5.875% | 5.875% | |||||
Effective rate (in ten thousandths) | [1] | 6.14% | 6.14% | |||||
Corporate bonds | 2023 senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 990 | 990 | 990 | |||||
Debt | $ 990 | $ 990 | 990 | |||||
Stated rate | [1] | 5.25% | 5.25% | |||||
Effective rate (in ten thousandths) | [1] | 5.43% | 5.43% | |||||
Corporate bonds | 2024 senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 546 | 546 | 546 | |||||
Debt | $ 546 | $ 546 | 546 | |||||
Stated rate | [1] | 5.25% | 5.25% | |||||
Effective rate (in ten thousandths) | [1] | 5.38% | 5.38% | |||||
Corporate bonds | 2025 senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 1,139 | 1,139 | 1,139 | |||||
Debt | $ 1,139 | $ 1,139 | 1,139 | |||||
Stated rate | [1] | 5.50% | 5.50% | |||||
Effective rate (in ten thousandths) | [1] | 5.56% | 5.56% | |||||
Corporate bonds | 2026 senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 446 | 446 | 446 | |||||
Debt | $ 446 | $ 446 | 446 | |||||
Stated rate | [1] | 5.625% | 5.625% | |||||
Effective rate (in ten thousandths) | [1] | 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 | $ 683 | |||||||
Convertible Debt | 2032C convertible senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | [3] | 0 | [3] | 0 | |||
Long-term debt | 206 | [3] | 206 | [3] | 204 | |||
Debt | $ 206 | [3] | $ 206 | [3] | 204 | |||
Stated rate | [1] | 2.375% | 2.375% | |||||
Effective rate (in ten thousandths) | [1] | 5.95% | 5.95% | |||||
Convertible Debt | 2032D convertible senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | [3] | $ 0 | [3] | 0 | |||
Long-term debt | 155 | [3] | 155 | [3] | 154 | |||
Debt | $ 155 | [3] | $ 155 | [3] | 154 | |||
Stated rate | [1] | 3.125% | 3.125% | |||||
Effective rate (in ten thousandths) | [1] | 6.33% | 6.33% | |||||
Convertible Debt | 2033E convertible senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | [3] | $ 170 | $ 170 | 0 | ||||
Long-term debt | [3] | 0 | 0 | 168 | ||||
Debt | [3] | $ 170 | $ 170 | 168 | ||||
Stated rate | [1] | 1.625% | 1.625% | |||||
Effective rate (in ten thousandths) | [1] | 4.50% | 4.50% | |||||
Convertible Debt | 2033F convertible senior note | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | [3] | $ 273 | $ 273 | 0 | ||||
Long-term debt | [3] | 0 | 0 | 271 | ||||
Debt | [3] | $ 273 | $ 273 | 271 | ||||
Stated rate | [1] | 2.125% | 2.125% | |||||
Effective rate (in ten thousandths) | [1] | 4.93% | 4.93% | |||||
Convertible Debt | 2043G convertible senior notes | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 0 | $ 0 | 0 | |||||
Long-term debt | 661 | 661 | 657 | |||||
Debt | $ 661 | $ 661 | 657 | |||||
Stated rate | [1] | 3.00% | 3.00% | |||||
Effective rate (in ten thousandths) | [1] | 6.76% | 6.76% | |||||
Other notes payable | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Current debt | $ 126 | $ 126 | 95 | |||||
Long-term debt | 145 | 145 | 185 | |||||
Debt | $ 271 | $ 271 | $ 280 | |||||
Other notes payable | Weighted Average | ||||||||
Long-term Debt by Current and Noncurrent | ||||||||
Stated rate | [1] | 2.513% | 2.513% | |||||
Effective rate (in ten thousandths) | [1] | 2.65% | 2.65% | |||||
[1] | As of December 1, 2016. | |||||||
[2] | Weighted-average imputed rate of 3.4% and 3.3% as of December 1, 2016 and September 1, 2016, respectively. | |||||||
[3] | 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 September 30, 2016, these notes were convertible by the holders during the calendar quarter ended December 31, 2016. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended December 31, 2016; therefore, these notes are convertible by the holders through March 31, 2017. The 2033 Notes were classified as current as of December 1, 2016 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. |
Contingencies (Details)
Contingencies (Details) - Pending Litigation $ in Millions | 3 Months Ended |
Dec. 01, 2016USD ($)patent | |
Qimonda AG Inotera Share Purchase Proceedings | Inotera | |
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 (D
Redeemable Convertible Notes (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 |
Debt Instrument [Line Items] | ||
Redeemable convertible notes | $ 31 | $ 0 |
2033E and 2033F convertible senior notes | ||
Debt Instrument [Line Items] | ||
Redeemable convertible notes | $ 31 |
Equity - Treasury Stock (Detail
Equity - Treasury Stock (Details) - shares shares in Millions | 1 Months Ended | ||
Dec. 31, 2016 | Dec. 01, 2016 | Sep. 01, 2016 | |
Class of Stock [Line Items] | |||
Treasury Stock, held (in shares) | 54 | 54 | |
Private Placement | Subsequent Event | Inotera | |||
Class of Stock [Line Items] | |||
Treasury shares included in sale of Micron Shares to Nanya | 54 |
Equity - Outstanding Capped Cal
Equity - Outstanding Capped Calls (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Dec. 01, 2016 | Dec. 31, 2016 | Sep. 01, 2016 | |
Option Indexed to Issuer's Equity [Line Items] | |||
Treasury Stock, held (in shares) | 54 | 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 | $ 719,000,000 | ||
Call Option | Purchased options | 2032C and 2032D convertible senior notes | Subsequent Event | |||
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 - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | $ (35) | |
Other comprehensive income (loss) | 28 | $ (103) |
Accumulated other comprehensive income | (7) | |
Cumulative Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | (49) | |
Other comprehensive income (loss) | 37 | |
Tax effects | 0 | |
Other comprehensive income (loss) | 37 | |
Accumulated other comprehensive income | (12) | |
Gains (Losses) on Derivative Instruments, Net | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | 2 | |
Other comprehensive income (loss) | (9) | |
Tax effects | 2 | |
Other comprehensive income (loss) | (7) | |
Accumulated other comprehensive income | (5) | |
Gains (Losses) on Investments, Net | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | 0 | |
Other comprehensive income (loss) | (1) | |
Tax effects | 0 | |
Other comprehensive income (loss) | (1) | |
Accumulated other comprehensive income | (1) | |
Pension Liability Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | 12 | |
Other comprehensive income (loss) | (1) | |
Tax effects | 0 | |
Other comprehensive income (loss) | (1) | |
Accumulated other comprehensive income | 11 | |
Parent | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated other comprehensive income | (35) | |
Other comprehensive income (loss) | 26 | |
Tax effects | 2 | |
Other comprehensive income (loss) | 28 | |
Accumulated other comprehensive income | $ (7) |
Equity - NCI and Consolidated V
Equity - NCI and Consolidated VIE Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 01, 2016 | Dec. 03, 2015 | Sep. 01, 2016 | |
Variable Interest Entity [Line Items] | |||
Noncontrolling interests in subsidiaries | $ 848 | $ 848 | |
Noncontrolling Interest Items [Abstract] | |||
Intel contributions to IMFT | 0 | $ 37 | |
R and D expenses reduced by reimbursements from Intel | (470) | (421) | |
Net sales | 3,970 | 3,350 | |
Intel | Non-Volatile Memory | Non-Trade Sales | |||
Noncontrolling Interest Items [Abstract] | |||
Net sales | 123 | 126 | |
Intel | Collaborative Arrangement Process Design and Process Development | |||
Noncontrolling Interest Items [Abstract] | |||
R and D expenses reduced by reimbursements from Intel | 56 | 46 | |
Other Consolidated Entities | |||
Variable Interest Entity [Line Items] | |||
Noncontrolling interests in subsidiaries | 16 | 16 | |
Variable Interest Entity, Primary Beneficiary | IM Flash Technologies, LLC | |||
Variable Interest Entity [Line Items] | |||
Noncontrolling interests in subsidiaries | $ 832 | $ 832 | |
Noncontrolling interest percentage (in hundredths) | 49.00% | 49.00% | |
Ownership percentage after stock transactions during period (in hundredths) | 51.00% | ||
Noncontrolling Interest Items [Abstract] | |||
Micron contributions to IMFT | 38 | ||
Intel contributions to IMFT | $ 37 |
Equity - Consolidated VIE asset
Equity - Consolidated VIE assets and liabilities (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 | Dec. 03, 2015 | Sep. 03, 2015 | |
Assets | |||||
Cash and equivalents | $ 4,139 | $ 4,140 | $ 2,605 | $ 2,287 | |
Receivables | 2,453 | 2,068 | |||
Inventories | 2,750 | 2,889 | |||
Other current assets | 132 | 140 | |||
Total current assets | 9,504 | 9,495 | |||
Property, plant, and equipment, net | 15,321 | 14,686 | |||
Other noncurrent assets | 411 | 460 | |||
Total assets | 27,836 | 27,540 | |||
Liabilities | |||||
Accounts payable and accrued expenses | 4,155 | 3,879 | |||
Deferred income | 236 | 200 | |||
Current debt | 1,155 | 756 | |||
Total current liabilities | 5,546 | 4,835 | |||
Long-term debt | 8,490 | 9,154 | |||
Other noncurrent liabilities | 601 | 623 | |||
Total liabilities | 14,637 | 14,612 | |||
Variable Interest Entity, Primary Beneficiary | IM Flash Technologies, LLC | |||||
Assets | |||||
Cash and equivalents | [1] | 77 | 98 | ||
Receivables | [1] | 83 | 89 | ||
Inventories | [1] | 91 | 68 | ||
Other current assets | [1] | 4 | 6 | ||
Total current assets | [1] | 255 | 261 | ||
Property, plant, and equipment, net | [1] | 1,748 | 1,792 | ||
Other noncurrent assets | [1] | 47 | 50 | ||
Total assets | [1] | 2,050 | 2,103 | ||
Liabilities | |||||
Accounts payable and accrued expenses | [1] | 131 | 175 | ||
Deferred income | [1] | 6 | 7 | ||
Current debt | [1] | 53 | 16 | ||
Total current liabilities | [1] | 190 | 198 | ||
Long-term debt | [1] | 41 | 66 | ||
Other noncurrent liabilities | [1] | 92 | 94 | ||
Total liabilities | [1] | $ 323 | $ 358 | ||
[1] | Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Equity - Restrictions on Net As
Equity - Restrictions on Net Assets (Details) $ in Millions | Dec. 01, 2016USD ($) |
Retained Earnings Note Disclosure [Abstract] | |
Undistributed Earnings from Equity Method Investees | $ 290 |
MMJ Group | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 3,130 |
IM Flash Technologies, LLC | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 895 |
Cash and Cash Equivalents | MMJ Group | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | 684 |
Cash and Cash Equivalents | IM Flash Technologies, LLC | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Amount of Restricted Net Assets | $ 77 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair and Carrying Value (Details) - USD ($) $ in Millions | Dec. 01, 2016 | Sep. 01, 2016 |
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 9,645 | $ 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 | 7,139 | 7,257 |
Fair Value | Level 2 | Convertible Notes | ||
Fair value disclosure [Line Items] | ||
Fair value of Convertible notes | 2,548 | 2,408 |
Carrying Value | Notes and MMJ creditor installment payments | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | 6,917 | 7,050 |
Carrying Value | Convertible Notes | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 1,465 | $ 1,454 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) $ in Millions, ¥ in Billions, TWD in Billions | Dec. 06, 2016USD ($) | Dec. 06, 2016TWD | Dec. 01, 2016JPY (¥) | Dec. 31, 2016TWD | Dec. 01, 2016USD ($) | Sep. 01, 2016USD ($) | |
Not Designated as Hedging Instrument | Forward Contracts | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | $ 1,823 | $ 2,052 | |||||
Foreign Currency Cash Flow Hedges [Abstract] | |||||||
General maturity of non-designated currency forward contracts (in days) | 35 days | ||||||
Not Designated as Hedging Instrument | Forward Contracts | 2017 Reorganization Payment Hedges | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | ¥ | ¥ 18 | ||||||
Not Designated as Hedging Instrument | Forward Contracts | 2018 Reorganization Payment Hedges | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | ¥ | ¥ 28 | ||||||
Not Designated as Hedging Instrument | Forward Contracts | Yen | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 1,396 | 1,668 | |||||
Not Designated as Hedging Instrument | Forward Contracts | Singapore dollar | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 204 | 206 | |||||
Not Designated as Hedging Instrument | Forward Contracts | Euro | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 175 | 93 | |||||
Not Designated as Hedging Instrument | Forward Contracts | Other Currencies | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 48 | 85 | |||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Forward Contracts | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [1] | (20) | (11) | ||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Forward Contracts | Yen | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [1] | (18) | (10) | ||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Forward Contracts | Singapore dollar | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [1] | (1) | 0 | ||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Forward Contracts | Euro | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [1] | 0 | 0 | ||||
Not Designated as Hedging Instrument | Accounts payable and accrued expenses | Forward Contracts | Other Currencies | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [1] | (1) | (1) | ||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Forward Contracts | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | (4) | 0 | |||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Forward Contracts | Yen | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | (4) | 0 | |||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Forward Contracts | Singapore dollar | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | 0 | 0 | |||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Forward Contracts | Euro | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | 0 | 0 | |||||
Not Designated as Hedging Instrument | Other noncurrent liabilities | Forward Contracts | Other Currencies | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | 0 | 0 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Forward Contracts | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 72 | 172 | |||||
Foreign Currency Cash Flow Hedges [Abstract] | |||||||
General maturity of hedge contracts (in months) | 12 months | ||||||
Designated as Hedging Instrument | Cash Flow Hedging | Forward Contracts | Yen | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 62 | 107 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Forward Contracts | Euro | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | 10 | 65 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | Forward Contracts | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Assets | [2] | 0 | 2 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | Forward Contracts | Yen | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Assets | [2] | 0 | 2 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts receivable | Forward Contracts | Euro | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Assets | [2] | 0 | 0 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | Forward Contracts | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [3] | (7) | (2) | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | Forward Contracts | Yen | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [3] | (6) | (1) | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Accounts payable and accrued expenses | Forward Contracts | Euro | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||
Fair Value of Liabilities | [3] | $ (1) | $ (1) | ||||
Subsequent Event | Not Designated as Hedging Instrument | Forward Contracts | 2021 TWD Debt Hedges | |||||||
Notional Disclosures [Abstract] | |||||||
Notional Amount Outstanding | TWD | TWD 80 | ||||||
Secured Debt | Subsequent Event | Inotera | 2021 Secured Notes NTD Term Loan | |||||||
Notional Disclosures [Abstract] | |||||||
2021 Term Loan draw | $ 2,500 | TWD 80 | |||||
[1] | Included in accounts payable and accrued expenses – other. | ||||||
[2] | Included in receivables – other. | ||||||
[3] | Included in accounts payable and accrued expenses – other. |
Derivative Instruments - Hedgin
Derivative Instruments - Hedging Relationship (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net cash flow hedge gains expected to be reclassified into earnings during next 12 months | $ 2 | |
Not Designated as Hedging Instrument | Other non-operating income expense net | Foreign exchange contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net losses for derivative instruments without hedge accounting designation | (178) | $ (21) |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gains reclassified from AOCI into earnings, effective portion of cash flow hedges | 1 | |
Designated as Hedging Instrument | Cash Flow Hedging | Other comprehensive income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net losses recognized in other comprehensive income, effective portion of cash flow hedges | $ (9) | $ (4) |
Equity Plans - Share Based Comp
Equity Plans - Share Based Compensation (Details) - $ / shares shares in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for future awards (in shares) | 84 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Stock options granted (in shares) | 2 | 2 |
Weighted-average grant-date fair values per share (in dollars per share) | $ 7.66 | $ 7.99 |
Average expected life (in years) | 5 years 8 months | 5 years 7 months |
Weighted-average expected volatility (in hundredths) | 46.00% | 46.00% |
Weighted-average risk-free interest rate (in thousandths) | 1.40% | 1.50% |
Expected dividend yield | 0.00% | 0.00% |
Restricted stock awards | ||
Restricted Stock Awards activity | ||
Restricted stock awards granted (in shares) | 3 | 3 |
Weighted-average grant-date fair values per share (in dollars per share) | $ 18.22 | $ 18.52 |
Equity Plans - Stock-based comp
Equity Plans - Stock-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 46 | $ 46 |
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 | $ 369 | |
Weighted average period that unrecognized compensation costs is expected to be recognized (in years) | 1 year 2 months | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 17 | 20 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | 29 | 26 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | 19 | 18 |
Selling, general, and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | 15 | 17 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 12 | $ 11 |
Restructure and Asset Impairm75
Restructure and Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 01, 2016 | Sep. 01, 2016 | Dec. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructure and asset impairments | $ 29 | $ 15 | |
2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
2016 Restructuring Plan | 29 | $ 58 | 0 |
Accrued restructuring reserve for the 2016 Restructuring Plan | 17 | $ 24 | |
Other Restructuring Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructure and asset impairments | $ 0 | $ 15 |
Other Non-Operating Income (E76
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Loss from changes in currency exchange rates | $ (12) | $ (3) |
Other | (2) | (1) |
Other non-operating income (expense), net | (14) | (4) |
Other non-operating income expense net | Not Designated as Hedging Instrument | Foreign exchange contract | ||
Net losses for derivative instruments without hedge accounting designation | $ (178) | $ (21) |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
U.S. valuation allowance release resulting from business acquisition | $ 0 | $ 41 |
Other, primarily non-U.S. operations | (18) | (15) |
Income tax (provision) benefit | (31) | 4 |
Tax benefit due to arrangements allowing computation of tax provision at rates below local statutory rates | $ 40 | $ 12 |
Tax benefit per diluted share due to arrangements allowing computation of tax provision at rates below local statutory rates (in dollars per share) | $ 0.04 | $ 0.01 |
MMJ Group | ||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Utilization of and other changes in net deferred tax assets of MMJ and MMT | $ (13) | $ (22) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 01, 2016 | Dec. 03, 2015 | |
Earnings Per Share [Abstract] | ||
Net income available to Micron shareholders - Basic | $ 180 | $ 206 |
Net income available to Micron shareholders – Diluted | $ 180 | $ 206 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted-average common shares outstanding - Basic (in shares) | 1,040 | 1,035 |
Dilutive effect of equity plans and convertible notes (in shares) | 51 | 50 |
Weighted-average common shares outstanding - Diluted (in shares) | 1,091 | 1,085 |
Earnings Per Share, Basic [Abstract] | ||
Basic (in dollars per share) | $ 0.17 | $ 0.20 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted (in dollars per share) | $ 0.16 | $ 0.19 |
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 64 | 66 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | |
Dec. 01, 2016USD ($)segment | Dec. 03, 2015USD ($) | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Number of reportable segments | segment | 4 | |
Net Sales | ||
Net sales | $ 3,970 | $ 3,350 |
Operating Income | ||
Segment operating income | 359 | 232 |
Stock-based compensation | (46) | (46) |
Restructure and asset impairments | (29) | (15) |
Other | 6 | (2) |
Operating income | 359 | 232 |
Operating Segments | ||
Operating Income | ||
Segment operating income | 438 | 298 |
Operating income | 438 | 298 |
Unallocated | ||
Operating Income | ||
Segment operating income | (79) | (66) |
Stock-based compensation | (46) | (46) |
Restructure and asset impairments | (29) | (15) |
Other | (4) | (5) |
Operating income | (79) | (66) |
CNBU | ||
Net Sales | ||
Net sales | 1,470 | 1,139 |
CNBU | Operating Segments | ||
Operating Income | ||
Segment operating income | 204 | 40 |
Operating income | 204 | 40 |
MBU | ||
Net Sales | ||
Net sales | 1,032 | 834 |
MBU | Operating Segments | ||
Operating Income | ||
Segment operating income | 89 | 148 |
Operating income | 89 | 148 |
SBU | ||
Net Sales | ||
Net sales | 860 | 884 |
SBU | Operating Segments | ||
Operating Income | ||
Segment operating income | (45) | (14) |
Operating income | (45) | (14) |
EBU | ||
Net Sales | ||
Net sales | 578 | 479 |
EBU | Operating Segments | ||
Operating Income | ||
Segment operating income | 178 | 121 |
Operating income | 178 | 121 |
All Other | ||
Net Sales | ||
Net sales | 30 | 14 |
All Other | Operating Segments | ||
Operating Income | ||
Segment operating income | 12 | 3 |
Operating income | $ 12 | $ 3 |
Certain Concentrations (Details
Certain Concentrations (Details) - Net Sales - Customer Concentration Risk | 3 Months Ended |
Dec. 01, 2016 | |
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) | 11.00% |