Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Feb. 28, 2019 | Mar. 14, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MICRON TECHNOLOGY INC | |
Entity Central Index Key | 0000723125 | |
Current Fiscal Year End Date | --08-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,106,687,011 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 5,835 | $ 7,351 | $ 13,748 | $ 14,154 |
Cost of goods sold | 2,971 | 3,081 | 6,269 | 6,137 |
Gross margin | 2,864 | 4,270 | 7,479 | 8,017 |
Selling, general, and administrative | 209 | 196 | 418 | 387 |
Research and development | 601 | 523 | 1,212 | 971 |
Other operating (income) expense, net | 97 | (16) | 133 | (5) |
Operating income | 1,957 | 3,567 | 5,716 | 6,664 |
Interest income | 58 | 27 | 96 | 50 |
Interest expense | (27) | (88) | (60) | (212) |
Other non-operating income (expense), net | (84) | (53) | (75) | (257) |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | 1,904 | 3,453 | 5,677 | 6,245 |
Income tax provision | (280) | (143) | (757) | (257) |
Equity in net income of equity method investees | 1 | 1 | 1 | 1 |
Net income | 1,625 | 3,311 | 4,921 | 5,989 |
Net income attributable to noncontrolling interests | (6) | (2) | (9) | (2) |
Net income attributable to Micron | $ 1,619 | $ 3,309 | $ 4,912 | $ 5,987 |
Earnings per share | ||||
Basic (in dollars per share) | $ 1.45 | $ 2.86 | $ 4.37 | $ 5.23 |
Diluted (in dollars per share) | $ 1.42 | $ 2.67 | $ 4.24 | $ 4.86 |
Number of shares used in per share calculations | ||||
Basic (in shares) | 1,114 | 1,156 | 1,123 | 1,145 |
Diluted (in shares) | 1,141 | 1,238 | 1,157 | 1,232 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,625 | $ 3,311 | $ 4,921 | $ 5,989 |
Other comprehensive income (loss), net of tax | ||||
Gains (losses) on derivative instruments | 6 | 18 | (6) | 15 |
Unrealized gains (losses) on investments | 6 | (1) | 3 | (2) |
Foreign currency translation adjustments | (1) | 0 | (1) | 0 |
Pension liability adjustments | 0 | 2 | 0 | 1 |
Other comprehensive income (loss) | 11 | 19 | (4) | 14 |
Total comprehensive income | 1,636 | 3,330 | 4,917 | 6,003 |
Comprehensive income attributable to noncontrolling interests | (6) | (2) | (9) | (2) |
Comprehensive income attributable to Micron | $ 1,630 | $ 3,328 | $ 4,908 | $ 6,001 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 30, 2018 | |
Assets | |||
Cash and equivalents | $ 6,353 | $ 6,506 | |
Short-term investments | 1,180 | 296 | |
Receivables | 4,416 | 5,478 | |
Inventories | 4,390 | 3,595 | |
Other current assets | 211 | 164 | |
Total current assets | 16,550 | 16,039 | |
Long-term marketable investments | [1] | 1,614 | 473 |
Property, plant, and equipment | 26,204 | 23,672 | |
Intangible assets | 350 | 331 | |
Deferred tax assets | 762 | 1,022 | |
Goodwill | 1,228 | 1,228 | |
Other noncurrent assets | 779 | 611 | |
Total assets | 47,487 | 43,376 | |
Liabilities and equity | |||
Accounts payable and accrued expenses | 4,062 | 4,374 | |
Current debt | 2,634 | 859 | |
Other current liabilities | 665 | 521 | |
Total current liabilities | 7,361 | 5,754 | |
Long-term debt | 3,604 | 3,777 | |
Other noncurrent liabilities | 993 | 581 | |
Total liabilities | 11,958 | 10,112 | |
Commitments and contingencies | |||
Redeemable convertible notes | 2 | 3 | |
Redeemable noncontrolling interest | 97 | 97 | |
Micron shareholders' equity | |||
Common stock, $0.10 par value, 3,000 shares authorized, 1,178 shares issued and 1,106 outstanding (1,170 shares issued and 1,161 outstanding as of August 30, 2018) | 118 | 117 | |
Additional capital | 8,143 | 8,201 | |
Retained earnings | 29,364 | 24,395 | |
Treasury stock, 72 shares held (9 shares as of August 30, 2018) | (3,064) | (429) | |
Accumulated other comprehensive income | 6 | 10 | |
Total Micron shareholders' equity | 34,567 | 32,294 | |
Noncontrolling interests in subsidiaries | 863 | 870 | |
Total equity | 35,430 | 33,164 | |
Total liabilities and equity | $ 47,487 | $ 43,376 | |
[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 | Feb. 28, 2019 | Aug. 30, 2018 |
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) | 1,178 | 1,170 |
Common Stock, outstanding (in shares) | 1,106 | 1,161 |
Treasury Stock, held (in shares) | 72 | 9 |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Micron Shareholders' Equity | Noncontrolling Interests in Subsidiaries |
Balance (in shares) at Aug. 31, 2017 | 1,116 | |||||||
Balance at Aug. 31, 2017 | $ 19,470 | $ 112 | $ 8,287 | $ 10,260 | $ (67) | $ 29 | $ 18,621 | $ 849 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,678 | 2,678 | 2,678 | 0 | ||||
Other comprehensive income (loss), net | (5) | (5) | (5) | |||||
Contributions from noncontrolling interests | 18 | 18 | ||||||
Stock issued in public offering (in shares) | 34 | |||||||
Stock issued in public offering | 1,366 | $ 3 | 1,363 | 1,366 | ||||
Stock issued under stock plans (in shares) | 9 | |||||||
Stock issued under stock plans | 106 | $ 1 | 105 | 106 | ||||
Stock-based compensation expense | 51 | 51 | 51 | |||||
Repurchase and retirement of stock (in shares) | (1) | |||||||
Repurchase and retirement of stock | (90) | $ 0 | (90) | 0 | (90) | |||
Reclassification of redeemable convertible notes, net | 3 | 3 | 3 | |||||
Conversion and repurchase of convertible notes | (204) | (271) | (204) | |||||
Treasury stock reissued to settle conversion and repurchase of convertible notes | 67 | |||||||
Balance (in shares) at Nov. 30, 2017 | 1,158 | |||||||
Balance at Nov. 30, 2017 | 23,393 | $ 116 | 9,448 | 12,938 | 0 | 24 | 22,526 | 867 |
Balance (in shares) at Aug. 31, 2017 | 1,116 | |||||||
Balance at Aug. 31, 2017 | 19,470 | $ 112 | 8,287 | 10,260 | (67) | 29 | 18,621 | 849 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 5,989 | |||||||
Other comprehensive income (loss), net | 14 | |||||||
Balance (in shares) at Mar. 01, 2018 | 1,165 | |||||||
Balance at Mar. 01, 2018 | 26,566 | $ 116 | 9,604 | 16,247 | (313) | 43 | 25,697 | 869 |
Balance (in shares) at Nov. 30, 2017 | 1,158 | |||||||
Balance at Nov. 30, 2017 | 23,393 | $ 116 | 9,448 | 12,938 | 0 | 24 | 22,526 | 867 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,311 | 3,309 | 3,309 | 2 | ||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Stock issued under stock plans (in shares) | 8 | |||||||
Stock issued under stock plans | 82 | $ 0 | 82 | 82 | ||||
Stock-based compensation expense | 52 | 52 | 52 | |||||
Repurchase and retirement of stock (in shares) | (1) | |||||||
Repurchase and retirement of stock | (44) | $ 0 | (44) | 0 | (44) | |||
Settlement of capped calls | 0 | 313 | (313) | 0 | ||||
Reclassification of redeemable convertible notes, net | 5 | 5 | 5 | |||||
Conversion and repurchase of convertible notes | (252) | (252) | (252) | |||||
Balance (in shares) at Mar. 01, 2018 | 1,165 | |||||||
Balance at Mar. 01, 2018 | $ 26,566 | $ 116 | 9,604 | 16,247 | (313) | 43 | 25,697 | 869 |
Balance (in shares) at Aug. 30, 2018 | 1,170 | 1,170 | ||||||
Balance at Aug. 30, 2018 | $ 33,164 | $ 117 | 8,201 | 24,395 | (429) | 10 | 32,294 | 870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (excluding redeemable noncontrolling interest) | 3,293 | 3,293 | 3,293 | 0 | ||||
Other comprehensive income (loss), net | (15) | (15) | (15) | |||||
Stock issued under stock plans (in shares) | 3 | |||||||
Stock issued under stock plans | 15 | $ 0 | 15 | 15 | ||||
Stock-based compensation expense | 61 | 61 | 61 | |||||
Repurchase and retirement of stock (in shares) | (1) | |||||||
Repurchase and retirement of stock | $ 0 | (11) | ||||||
Accelerated share repurchase program | 108 | |||||||
Repurchase of stock | (1,933) | |||||||
Stock Repurchased (held and retired) | (1,836) | (1,836) | ||||||
Reclassification of redeemable convertible notes, net | 1 | 1 | 1 | |||||
Conversion and repurchase of convertible notes | (36) | (36) | (36) | |||||
Balance (in shares) at Nov. 29, 2018 | 1,172 | |||||||
Balance at Nov. 29, 2018 | $ 34,739 | $ 117 | 8,350 | 27,769 | (2,362) | (5) | 33,869 | 870 |
Balance (in shares) at Aug. 30, 2018 | 1,170 | 1,170 | ||||||
Balance at Aug. 30, 2018 | $ 33,164 | $ 117 | 8,201 | 24,395 | (429) | 10 | 32,294 | 870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,921 | |||||||
Other comprehensive income (loss), net | (4) | |||||||
Conversion and repurchase of convertible notes | $ (372) | |||||||
Balance (in shares) at Feb. 28, 2019 | 1,178 | 1,178 | ||||||
Balance at Feb. 28, 2019 | $ 35,430 | $ 118 | 8,143 | 29,364 | (3,064) | 6 | 34,567 | 863 |
Balance (in shares) at Nov. 29, 2018 | 1,172 | |||||||
Balance at Nov. 29, 2018 | 34,739 | $ 117 | 8,350 | 27,769 | (2,362) | (5) | 33,869 | 870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (excluding redeemable noncontrolling interest) | 1,624 | 1,619 | 1,619 | 5 | ||||
Net income | 1,625 | |||||||
Other comprehensive income (loss), net | 11 | 11 | 11 | |||||
Stock issued under stock plans (in shares) | 7 | |||||||
Stock issued under stock plans | 77 | $ 1 | 76 | 77 | ||||
Stock-based compensation expense | 57 | 57 | 57 | |||||
Repurchase and retirement of stock (in shares) | (1) | |||||||
Repurchase and retirement of stock | $ 0 | (5) | (24) | |||||
Repurchase of stock | (702) | |||||||
Stock Repurchased (held and retired) | (731) | (731) | ||||||
Acquisitions of noncontrolling interest | (12) | 0 | (12) | |||||
Reclassification of redeemable convertible notes, net | 1 | 1 | 1 | |||||
Conversion and repurchase of convertible notes | $ (336) | (336) | (336) | |||||
Balance (in shares) at Feb. 28, 2019 | 1,178 | 1,178 | ||||||
Balance at Feb. 28, 2019 | $ 35,430 | $ 118 | $ 8,143 | $ 29,364 | $ (3,064) | $ 6 | $ 34,567 | $ 863 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2019 | Mar. 01, 2018 | |
Cash flows from operating activities | ||
Net income | $ 4,921 | $ 5,989 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense and amortization of intangible assets | 2,648 | 2,241 |
Amortization of debt discount and other costs | 29 | 55 |
Stock-based compensation | 118 | 103 |
Loss on debt prepayments, repurchases, and conversions | 69 | 218 |
Change in operating assets and liabilities | ||
Receivables | 1,202 | (630) |
Inventories | (800) | (62) |
Deferred tax assets | 320 | (262) |
Accounts payable and accrued expenses | (326) | 178 |
Other | 64 | 154 |
Net cash provided by operating activities | 8,245 | 7,984 |
Cash flows from investing activities | ||
Expenditures for property, plant, and equipment | (5,349) | (4,217) |
Purchases of available-for-sale securities | (2,566) | (502) |
Proceeds from government incentives | 455 | 1 |
Proceeds from maturities of available-for-sale securities | 391 | 138 |
Proceeds from sales of available-for-sale securities | 160 | 562 |
Other | (10) | 175 |
Net cash provided by (used for) investing activities | (6,919) | (3,843) |
Cash flows from financing activities | ||
Payments to acquire treasury stock | (2,568) | (67) |
Repayments of debt | (705) | (3,379) |
Payments on equipment purchase contracts | (37) | (153) |
Proceeds from issuance of debt | 1,800 | 650 |
Proceeds from issuance of stock | 92 | 1,554 |
Other | (65) | (25) |
Net cash provided by (used for) financing activities | (1,483) | (1,420) |
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | (1) | 4 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (158) | 2,725 |
Cash, cash equivalents, and restricted cash at beginning of period | 6,587 | 5,216 |
Cash, cash equivalents, and restricted cash at end of period | $ 6,429 | $ 7,941 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 August 30, 2018, except for changes related to recently adopted accounting standards. See "Recently Adopted Accounting Standards" note. Prior year information is presented in accordance with the accounting guidance in effect during that period and has not been recast for recently adopted accounting standards. 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 2019 and 2018 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 August 30, 2018. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Feb. 28, 2019 | |
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 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 do not have the power to direct the activities of PTI Xi'an that most significantly impact its economic performance, primarily because we do not have governance rights. Therefore, we do not consolidate PTI Xi'an. In connection with our assembly services with PTI, as of February 28, 2019 and August 30, 2018 , we had net property, plant, and equipment of $56 million and $63 million , respectively, and capital lease obligations of $55 million and $63 million , respectively. 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. 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. On January 14, 2019, we exercised our option to acquire Intel's interest in IMFT. As a result, Intel can elect to set the closing date of the transaction to be any time between approximately six months to one year from the date we exercised our call option. (See "Equity – Noncontrolling Interests in Subsidiaries – IMFT" note.) |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 6 Months Ended |
Feb. 28, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16 – Intra-Entity Transfers Other Than Inventory ("ASU 2016-16"), 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. We adopted this ASU in the first quarter of 2019 under the modified retrospective method and, in connection therewith, made certain adjustments as noted in the table below. 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. We adopted this ASU in the first quarter of 2019 under the modified retrospective method, with prospective adoption for amendments related to equity securities without readily determinable fair values. The adoption of this ASU did not have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (as amended, "ASC 606"), which supersedes nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States. The core principal of ASC 606 is that an entity should recognize revenue when it transfers control of 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. ASC 606 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 adopted ASC 606 in the first quarter of 2019 under the modified retrospective method and, in connection therewith, made certain adjustments as noted in the table below. We applied ASC 606 to contracts with customers that had not yet been completed as of the adoption date. The following table summarizes the effects of adopting ASU 2016-16 and ASC 606. Ending Balance as of August 30, 2018 ASU 2016-16 ASC 606 Opening Balance as of August 31, 2018 Receivables $ 5,478 $ — $ 114 $ 5,592 Inventories 3,595 — (5 ) 3,590 Other current assets 164 (14 ) 30 180 Deferred tax assets 1,022 56 (92 ) 986 Other current liabilities 521 — (4 ) 517 Other noncurrent liabilities 581 — 1 582 Retained earnings 24,395 42 50 24,487 As a result of the adoption of ASC 606, the opening balances as of August 31, 2018 for receivables, other current assets, and other current liabilities increased due to the reclassification of allowances for rebates, pricing adjustments, and returns to conform to the new presentation requirements. In addition, the margin from previously deferred sales to distributors was reclassified from other current liabilities to retained earnings. The tax effects of the adoption of ASC 606 were recorded primarily as a reduction of net deferred tax assets, substantially as a result of recognizing income for accounting purposes earlier under ASC 606 than for tax purposes in various jurisdictions. The effects of ASC 606 to our consolidated statement of operations and balance sheet were as follows: Quarter ended February 28, 2019 Six months ended February 28, 2019 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 Revenue $ 5,835 $ (20 ) $ 5,815 $ 13,748 $ (115 ) $ 13,633 Cost of goods sold 2,971 (28 ) 2,943 6,269 (69 ) 6,200 Interest expense (27 ) 1 (26 ) (60 ) 3 (57 ) Income tax provision (280 ) (8 ) (288 ) (757 ) (5 ) (762 ) Net income attributable to Micron 1,619 1 1,620 4,912 (48 ) 4,864 As of February 28, 2019 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 Receivables $ 4,416 $ (154 ) $ 4,262 Other current assets 211 (39 ) 172 Deferred tax assets 762 87 849 Accounts payable and accrued expenses 4,062 — 4,062 Other current liabilities 665 (7 ) 658 Other noncurrent liabilities 993 (1 ) 992 Retained earnings 29,364 (98 ) 29,266 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 6 Months Ended |
Feb. 28, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In November 2018, the FASB issued ASU 2018-18 – Collaborative Arrangements , which clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU will be effective for us in the first quarter of 2021 with early adoption permitted. This ASU requires retrospective adoption to the date we adopted ASC 606, August 31, 2018, by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. 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 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. This ASU will be effective for us in the first quarter of 2021 with adoption permitted as early as the first quarter of 2020. This ASU requires modified retrospective adoption, 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 lease payments. This ASU, as amended, will be effective for us in the first quarter of 2020 with early adoption permitted and allows for either a modified retrospective adoption or a retrospective adoption by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The adoption of this ASU will result in an increase to our consolidated balance sheets for these right-of-use assets and corresponding liabilities. We are evaluating the timing and other effects of our adoption of this ASU on our financial statements. |
Cash and Investments
Cash and Investments | 6 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 August 30, 2018 Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 2,652 $ — $ — $ 2,652 $ 3,223 $ — $ — $ 3,223 Level 1 (2) Money market funds 3,114 — — 3,114 2,443 — — 2,443 Level 2 (3) Corporate bonds 21 692 923 1,636 3 172 272 447 Government securities 80 255 280 615 5 63 103 171 Asset-backed securities — 105 401 506 — 34 96 130 Certificates of deposit 382 39 10 431 806 11 2 819 Commercial paper 104 89 — 193 26 16 — 42 6,353 $ 1,180 $ 1,614 $ 9,147 6,506 $ 296 $ 473 $ 7,275 Restricted cash (4) 76 81 Cash, cash equivalents, and restricted cash $ 6,429 $ 6,587 (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 analyses to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of February 28, 2019 or August 30, 2018 . (4) Restricted cash is included in other noncurrent assets and primarily consisted of balances related to the MMJ Creditor Payments. The restrictions on the MMJ Creditor Payments lapse upon approval by the trustees and/or Tokyo District Court. Gross realized gains and losses from sales of available-for-sale securities were not material for any period presented. As of February 28, 2019 , there were no available-for-sale securities that had been in a loss position for longer than 12 months. |
Receivables
Receivables | 6 Months Ended |
Feb. 28, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables As of February 28, August 30, Trade receivables $ 3,997 $ 5,056 Income and other taxes 250 161 Other 169 261 $ 4,416 $ 5,478 |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of February 28, August 30, Finished goods $ 843 $ 815 Work in process 3,023 2,357 Raw materials and supplies 524 423 $ 4,390 $ 3,595 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment As of February 28, August 30, Land $ 346 $ 345 Buildings 9,547 8,680 Equipment (1) 41,377 38,249 Construction in progress (2) 1,715 1,162 Software 745 655 53,730 49,091 Accumulated depreciation (27,526 ) (25,419 ) $ 26,204 $ 23,672 (1) Included costs related to equipment not placed into service of $2.51 billion and $1.73 billion , as of February 28, 2019 and August 30, 2018 , respectively. (2) Included building-related construction, tool installation, and software costs for assets not yet placed into service. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Feb. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As of February 28, 2019 August 30, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizing assets Product and process technology $ 577 $ (227 ) $ 567 $ (344 ) Non-amortizing assets In-process R&D — — 108 — Total intangible assets $ 577 $ (227 ) $ 675 $ (344 ) Goodwill $ 1,228 $ 1,228 In the first six months of 2019 and 2018 , we capitalized $64 million and $15 million , respectively, for product and process technology with weighted-average useful lives of 8 years and 12 years, respectively, and placed in service $108 million of in-process R&D in the first quarter of 2019, which is being amortized on a straight-line basis over six years. Expected amortization expense is $36 million for the remainder of 2019 , $66 million for 2020 , $60 million for 2021 , $47 million for 2022 , and $43 million for 2023 . |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Feb. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses As of February 28, August 30, Accounts payable $ 1,523 $ 1,692 Property, plant, and equipment payables 1,416 1,238 Salaries, wages, and benefits 468 841 Income and other taxes 449 402 Other 206 201 $ 4,062 $ 4,374 |
Debt
Debt | 6 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of February 28, 2019 August 30, 2018 Net Carrying Amount Net Carrying Amount Instrument Stated Rate Effective Rate Current Long-Term Total Current Long-Term Total IMFT Member Debt (1) N/A N/A $ 1,009 $ — $ 1,009 $ — $ 1,009 $ 1,009 Capital lease obligations N/A 4.12 % 261 455 716 310 536 846 MMJ Creditor Payments N/A 9.76 % 181 — 181 309 183 492 2022 Term Loan B 4.25 % 4.66 % 5 718 723 5 720 725 2024 Notes 4.64 % 4.76 % — 597 597 — — — 2025 Notes 5.50 % 5.56 % — 516 516 — 515 515 2026 Notes 4.98 % 5.07 % — 497 497 — — — 2029 Notes 5.33 % 5.40 % — 696 696 — — — 2032D Notes 3.13 % 6.33 % — 125 125 — 132 132 2033F Notes 2.13 % 4.93 % 68 — 68 235 — 235 2043G Notes 3.00 % 6.76 % 1,110 — 1,110 — 682 682 $ 2,634 $ 3,604 $ 6,238 $ 859 $ 3,777 $ 4,636 (1) IMFT Member Debt was classified as current as of February 28, 2019 as a result of exercising our option to acquire Intel's interest in IMFT. Senior Unsecured Notes On February 6, 2019, we issued our 2024 Notes, 2026 Notes, and 2029 Notes in a public offering. Issuance costs for these notes were $11 million . We may redeem some or all of these notes at our option prior to their maturity at a redemption price equal to accrued interest plus the present value of the remaining scheduled payments and we may redeem some or all of these notes at par between one and three months prior to maturity. Each of the 2024 Notes, 2026 Notes, and 2029 Notes contain covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries (which are generally domestic subsidiaries in which we own at least 80% of the voting stock) to (1) create or incur certain liens, (2) enter into certain sale and lease-back transactions; and (3) consolidate with or merge with or into, or convey, transfer or lease all or substantially all of our assets, to another entity. These covenants are subject to a number of limitations and exceptions. Additionally, if a change in control triggering event occurs, as defined in the indenture governing such notes, we will be required to offer to purchase such notes at 101% of the outstanding aggregate principal amount plus accrued interest up to the purchase date. Convertible Senior Notes On February 8, 2019, we notified holders of our 2043G Notes that we would redeem all of the outstanding 2043G Notes on March 13, 2019. Holders could elect to convert these notes prior to March 12, 2019 at a conversion rate of 34.2936 shares of our common stock per $1,000 of principal amount. In connection with our notice, we made an irrevocable election to settle any conversions in cash. As a result, we reclassified $336 million from equity to a derivative debt liability. As of February 28, 2019 , current debt included an aggregate of $1.11 billion for the settlement obligation (including principal and amounts in excess of principal) of all of our 2043G Notes. Holders converted substantially all of the 2043G Notes and on March 13, 2019, we paid $1.43 billion to settle the conversions and recognized a loss of $316 million in the third quarter of 2019. Holders of our convertible notes may convert their notes during any calendar quarter if the closing price of our common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is more than 130% of the conversion price. As of February 28, 2019 , the trading price of our common stock was higher than the initial conversion prices of our 2032D Notes and our 2033F Notes and, as a result, the aggregate conversion value of $807 million exceeded the aggregate principal amount of $203 million by $604 million . Available Revolving Credit Facility On November 27, 2018, we increased the amount available to draw under our existing revolving credit facility expiring in July 2023 from $2.0 billion to $2.5 billion . As of February 28, 2019 , there were no outstanding amounts drawn under this facility. Debt Activity When we receive a notice of conversion for any of our convertible notes and elect to settle in cash any portion of the conversion obligation in excess of the principal amount, the cash settlement obligations become derivative debt liabilities subject to mark-to-market accounting treatment based on the volume-weighted-average price of our common stock over a period of 20 consecutive trading days. Accordingly, at the date of our election to settle a conversion in cash, we reclassify the fair value of the equity component of the converted notes from additional capital to derivative debt liability within current debt in our consolidated balance sheet. The following table presents the effects of conversions, settlements, and issuance of debt in the first six months of 2019: Six months ended February 28, 2019 Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Settled conversions 2032D Notes $ (10 ) $ (9 ) $ (35 ) $ (28 ) $ 2 2033F Notes (38 ) (169 ) (164 ) (8 ) 13 Conversions not settled 2043G Notes — 420 — (336 ) (84 ) Issuances 2024 Notes 600 597 597 — — 2026 Notes 500 497 497 — — 2029 Notes 700 695 695 — — $ 1,752 $ 2,031 $ 1,590 $ (372 ) $ (69 ) |
Contingencies
Contingencies | 6 Months Ended |
Feb. 28, 2019 | |
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 upon their intellectual property rights. On November 21, 2014, Elm 3DS Innovations, LLC ("Elm") filed a patent infringement action against Micron; Micron Semiconductor Products, Inc.; 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 13 U.S. patents and seeks damages, attorneys' fees, and costs. On December 15, 2014, Innovative Memory Solutions, Inc. ("IMS") 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 products infringe eight U.S. patents and seeks damages, attorneys' fees, and costs. On July 23, 2018, IMS served a patent infringement complaint on Micron Semiconductor (Deutschland) GmbH and Micron Europe Limited alleging that products including our SSDs infringe a European patent. The complaint seeks unspecified damages and an order forbidding Micron Semiconductor (Deutschland) GmbH and Micron Europe Limited from offering to sell, using, and importing the accused products. On August 31, 2018, Micron was served with a complaint filed by IMS in Shenzhen Intermediate People's Court in Guangdong Province, China. The complaint alleges that certain of our NAND flash products infringe a Chinese patent. The complaint seeks an order requiring Micron to stop manufacturing, using, selling, and offering for sale the accused products in China, and to pay damages of 1 million Chinese yuan plus expenses. On March 19, 2018, Micron Semiconductor (Xi’an) Co., Ltd. ("MXA") was served with a patent infringement complaint filed by Fujian Jinhua Integrated Circuit Co., Ltd. ("Jinhua") in the Fuzhou Intermediate People’s Court in Fujian Province, China (the "Fuzhou Court"). On April 3, 2018, Micron Semiconductor (Shanghai) Co. Ltd. ("MSS") was served with the same complaint. The complaint alleges that MXA and MSS infringe a Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China, to stop manufacturing, using, selling, and offering for sale the accused products in China, and to pay damages of 98 million Chinese yuan plus court fees incurred. On March 21, 2018, MXA was served with a patent infringement complaint filed by United Microelectronics Corporation ("UMC") in the Fuzhou Court. On April 3, 2018, MSS was served with the same complaint. The complaint alleges that MXA and MSS infringe a Chinese patent by manufacturing and selling certain Crucial DDR4 DRAM modules. The complaint seeks an order requiring MXA and MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China, to stop manufacturing, using, selling, and offering for sale the accused products in China, and to pay damages of 90 million Chinese yuan plus court fees incurred. On April 3, 2018, MSS was served with another patent infringement complaint filed by Jinhua and two additional complaints filed by UMC in the Fuzhou Court. The three additional complaints allege that MSS infringes three Chinese patents by manufacturing and selling certain Crucial MX300 SSDs and certain GDDR5 memory chips. The two complaints filed by UMC each seek an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China, to stop manufacturing, using, selling, and offering for sale the accused products in China, and to pay damages of 90 million Chinese yuan plus court fees incurred. The complaint filed by Jinhua seeks an order requiring MSS to destroy inventory of the accused products and equipment for manufacturing the accused products in China, to stop manufacturing, using, selling, and offering for sale the accused products in China, and to pay damages of 98 million Chinese yuan plus court fees incurred. On October 9, 2018, UMC withdrew its complaint that alleged MSS infringed a Chinese patent by manufacturing and selling certain GDDR5 memory chips. On July 5, 2018, MXA and MSS were notified that the Fuzhou Court granted a preliminary injunction against those entities that enjoins them from manufacturing, selling, or importing certain Crucial and Ballistic-branded DRAM modules and solid-state drives in China. The affected products make up slightly more than 1% of our annualized revenues. We are complying with the ruling and have requested the Fuzhou Court to reconsider or stay its decision. Among other things, the above lawsuits pertain to substantially all of our DRAM, NAND, and other memory and storage products we manufacture, which account for a significant portion of our revenue. Qimonda On January 20, 2011, Dr. Michael Jaffé, administrator for Qimonda's 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 (the "Inotera Shares"), representing approximately 18% of Inotera's outstanding shares as of February 28, 2019 , 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 the Inotera 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 Micron B.V. 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 Micron B.V. 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. Antitrust Matters On April 27, 2018, a complaint was filed against Micron and other DRAM suppliers in the U.S. District Court for the Northern District of California. Subsequently two substantially identical cases were filed in the same court. The lawsuits purport to be on behalf of a nationwide class of indirect purchasers of DRAM products. The complaints assert claims based on alleged price-fixing of DRAM products under federal and state law during the period from June 1, 2016 to February 1, 2018, and seek treble monetary damages, costs, interest, attorneys' fees, and other injunctive and equitable relief. On June 26, 2018, a complaint was filed against Micron and other DRAM suppliers in the U.S. District Court for the Northern District of California. Subsequently four substantially identical cases were filed in the same court. The lawsuits purport to be on behalf of a nationwide class of direct purchasers of DRAM products. The complaints assert claims based on alleged price-fixing of DRAM products under federal and state law during the period from June 1, 2016 to February 1, 2018, and seek treble monetary damages, costs, interest, attorneys' fees, and other injunctive and equitable relief. Additionally, six cases have been filed in the following Canadian courts: Superior Court of Quebec, the Federal Court of Canada, and the Supreme Court of British Columbia. The substantive allegations in these cases are similar to those asserted in the cases filed in the United States. On May 15, 2018, the Chinese State Administration for Market Regulation ("SAMR") notified Micron that it was investigating potential collusion and other anticompetitive conduct by DRAM suppliers in China. On May 31, 2018, SAMR made unannounced visits to our sales offices in Beijing, Shanghai, and Shenzhen to seek certain information as part of its investigation. We are cooperating with SAMR in its investigation. Securities Matters On January 23, 2019, a complaint was filed against Micron and two of our officers, Sanjay Mehrotra and David Zinsner, in the U.S. District Court for the Southern District of New York. The lawsuit purports to be brought on behalf of a class of purchasers of our stock during the period from June 22, 2018 through November 19, 2018. Subsequently two substantially similar cases were filed in the same court adding one of our former officers, Ernie Maddock, as a defendant and alleging a class action period from September 26, 2017 through November 19, 2018. The three complaints allege that defendants committed securities fraud through misrepresentations and omissions about purported anticompetitive behavior in the DRAM industry and seek compensatory and punitive damages, fees, interest, costs, and other appropriate relief. On March 5, 2019, a shareholder derivative complaint was filed in the U.S. District Court for the District of Delaware, allegedly on behalf of and for the benefit of Micron, against certain current and former officers and directors of Micron for alleged breaches of their fiduciary duties and other violations of law. The allegations are based on, among other things, purported false and misleading statements regarding anticompetitive behavior in the DRAM industry. The complaint seeks damages, fees, interest, costs, and other appropriate relief. Other On December 5, 2017, Micron filed a complaint against UMC and Jinhua in the U.S. District Court for the Northern District of California. The complaint alleges that UMC and Jinhua violated the Defend Trade Secrets Act, the civil provisions of the Racketeer Influenced and Corrupt Organizations Act, and California's Uniform Trade Secrets Act by misappropriating Micron's trade secrets and other misconduct. Micron's complaint seeks damages, restitution, disgorgement of profits, injunctive relief, and other appropriate relief. 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. We are unable to predict the outcome of the patent matters, the Qimonda matter, antitrust matters, securities matters, and other matters noted above 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, as well as the resolution of any other legal matter noted above, could have a material adverse effect on our business, results of operations, or financial condition. |
Equity
Equity | 6 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
Equity | Equity Micron Shareholders' Equity Common Stock Repurchases : Our Board of Directors has authorized the discretionary repurchase of up to $10 billion of our outstanding common stock beginning in our fiscal 2019. We may purchase shares on a discretionary basis through open-market purchases, block trades, privately-negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans, subject to market conditions and our ongoing determination of the best use of available cash. The repurchase authorization does not obligate us to acquire any common stock. In the second quarter and first six months of 2019, we repurchased 21 million shares of our common stock for $702 million and 63 million shares of our common stock for $2.51 billion , respectively, under an accelerated share repurchase agreement, Rule 10b5-1 plans, and through open market repurchases. The shares were recorded as treasury stock. Noncontrolling Interests in Subsidiaries As of February 28, 2019 August 30, 2018 Balance Percentage Balance Percentage IMFT $ 858 49 % $ 853 49 % Other 5 Various 17 Various $ 863 $ 870 IMFT : Since 2006, we have owned 51% of IMFT, a joint venture between us and Intel. 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. IMFT manufactures semiconductor products exclusively for its members under a long-term supply agreement at prices approximating cost. In the first quarter of 2018, IMFT discontinued production of NAND and subsequent to that time has manufactured 3D XPoint memory. Through our IMFT joint venture, we continue to jointly develop 3D XPoint technologies with Intel through the second generation of 3D XPoint technology, which is expected to be completed in the second half of 2019. To better optimize the 3D XPoint technology for our product roadmap and maximize the benefits for our customers and shareholders, in the fourth quarter of 2018, we announced that we will no longer jointly develop with Intel subsequent generations of 3D XPoint technology. IMFT will continue to manufacture memory based on 3D XPoint technology at the fabrication facility in Lehi, Utah for its members. IMFT sales to Intel were $172 million and $347 million for the second quarter and first six months of 2019, respectively, and were $115 million and $227 million for the second quarter and first six months of 2018, respectively. On January 14, 2019, we exercised our option to acquire Intel's interest in IMFT. As a result, Intel can elect to set the closing date of the transaction to be any time between approximately six months to one year from the date we exercised our call option. At the time of closing, we expect to pay Intel consideration approximating Intel's interest in the net book value of IMFT plus member debt. Following the closing date, we will continue to supply to Intel product from IMFT for a period of up to one year under a fixed-price arrangement for the duration of the supply agreement. The pricing will be determined at the time of the closing of our acquisition of Intel's interest based on the cost of products produced by IMFT over a period of time prior to closing, plus a margin. For the first six months of such one -year period, Intel can receive supply ranging from 50% to 100% , at Intel's choice, of the volume supplied to Intel by IMFT in the six -month period immediately prior to the closing date. For the second six months of such one -year period, Intel can receive supply ranging from 0% to 100% , at Intel's choice, of the volume supplied to Intel by IMFT in the first six -month period. IMFT's capital requirements are generally determined based on an annual plan approved by the members, and capital contributions to IMFT are requested as needed. Capital requests are made to the members in proportion to their then-current ownership interest. Members may elect to not contribute their proportional share, and in such event, the contributing member may elect to contribute any amount of the capital request, either in the form of an equity contribution or member debt financing. Under the supply agreement, the members have rights and obligations to the capacity of IMFT in proportion to their investment, including member debt financing. Any capital contribution or member debt financing results in a proportionate adjustment to the sharing of output on an eight -month lag. Members pay their proportionate share of fixed costs associated with IMFT's capacity. Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets: As of February 28, August 30, Assets Cash and equivalents $ 288 $ 91 Receivables 126 126 Inventories 111 114 Other current assets 5 8 Total current assets 530 339 Property, plant, and equipment 2,464 2,641 Other noncurrent assets 36 45 Total assets $ 3,030 $ 3,025 Liabilities Accounts payable and accrued expenses $ 154 $ 138 Current debt 1,020 20 Other current liabilities 37 9 Total current liabilities 1,211 167 Long-term debt 54 1,064 Other noncurrent liabilities 37 74 Total liabilities $ 1,302 $ 1,305 Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements All of our marketable debt and equity investments were classified as available-for-sale and carried at fair value as of the dates noted below. The estimated fair values of our convertible and other notes in the table below were determined based on Level 2 inputs, and together with the carrying value of our outstanding debt instruments (excluding the carrying value of equity and mezzanine equity components of our convertible notes) were as follows: As of February 28, 2019 August 30, 2018 Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ Creditor Payments $ 4,291 $ 4,219 $ 2,798 $ 2,741 Convertible notes 2,232 1,303 3,124 1,049 Other operating (income) expense, net included unrealized losses from assets held for sale of $46 million in the second quarter of 2019. The fair values for semiconductor equipment were based on quotations obtained from equipment dealers, which consider the remaining useful life and configuration of the equipment (Level 3). |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Feb. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Gross Notional Amount Fair Value of Current Assets (1) Current Liabilities (2) As of February 28, 2019 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 235 $ — $ (3 ) Derivative instruments without hedge accounting designation Non-designated currency hedges 2,205 6 (3 ) Convertible notes settlement obligation (3) — (420 ) 6 (423 ) $ 6 $ (426 ) As of August 30, 2018 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 538 $ — $ (13 ) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,919 14 (10 ) Convertible notes settlement obligation (3) — (167 ) 14 (177 ) $ 14 $ (190 ) (1) Included in receivables – other. (2) Included in accounts payable and accrued expenses – other for forward contracts and in current debt for convertible notes settlement obligations. (3) Notional amounts of convertible notes settlement obligations as of February 28, 2019 and August 30, 2018 were 35 million and 3 million shares of our common stock, respectively. Derivative Instruments with Hedge Accounting Designation We utilize currency forward contracts that generally mature within 12 months to hedge our exposure to changes in currency exchange rates. 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). We do not use derivative instruments for speculative purposes. Cash Flow Hedges : We utilize cash flow hedges for our exposure from changes in currency exchange rates for certain capital expenditures. For derivative instruments designated as cash flow hedges, the effective portion of the realized and unrealized gains or losses on derivatives is included as a component of accumulated other comprehensive income. Amounts in accumulated other comprehensive income are reclassified into earnings in the same line items and in the same periods in which the underlying transactions affect earnings. For the periods presented prior to the second quarter of 2018, the ineffective and excluded portion of the realized and unrealized gain or loss was included in other non-operating income (expense). As a result of adopting ASU 2017-12, beginning in the second quarter of 2018, the excluded portion of such amounts is included in the same line item in which the underlying transactions affect earnings and the ineffective portion of the realized and unrealized gains or losses on derivatives is included as a component of accumulated other comprehensive income. We recognized gains of $7 million and losses of $6 million for the second quarter and first six months of 2019 , respectively, and gains of $21 million and $17 million for the second quarter and first six months of 2018 , respectively, in accumulated other comprehensive income from the effective portion of cash flow hedges. Neither the amount excluded from hedge effectiveness nor the reclassifications from accumulated other comprehensive income to earnings were material in the second quarters or first six months of 2019 or 2018 . The amounts from cash flow hedges included in accumulated other comprehensive income that are expected to be reclassified into earnings in the next 12 months were also not material. Fair Value Hedges : During the second quarter of 2018, we utilized fair value hedges to hedge our exposure to changes in fair values from the changes in currency exchange rates for certain monetary assets and liabilities. Other non-operating income (expense) for the second quarter of 2018 included gains of $56 million from the change in fair value attributed to changes in the undiscounted spot rate which offset the losses on the remeasurement of the hedged assets and liabilities, and losses of $19 million from the amortization of amounts excluded from hedge effectiveness of fair value hedges. Amounts recorded to other comprehensive income (loss) for the second quarter of 2018 were not material. Derivative Instruments without Hedge Accounting Designation Currency Derivatives : We generally utilize a rolling hedge strategy with currency forward contracts that mature within three months to hedge our exposures of monetary assets and liabilities from changes in currency exchange rates. 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). Realized and unrealized gains and losses on derivative instruments without hedge accounting designation as well as the changes in the underlying monetary assets and liabilities from changes in currency exchange rates are included in other non-operating income (expense). For derivative instruments without hedge accounting designation, we recognized gains of $11 million in the second quarter of 2019, losses of $11 million in the first quarter of 2019 , and gains of $50 million and $52 million in the second quarter and first six months of 2018, respectively. Convertible Notes Settlement Obligations : For settlement obligations associated with our convertible notes subject to mark-to-market accounting treatment, the fair values of the underlying derivative settlement obligations were initially determined using the Black-Scholes option valuation model (Level 2), which requires inputs of stock price, expected stock-price volatility, estimated option life, risk-free interest rate, and dividend rate. The subsequent measurement amounts were based on the volume-weighted-average trading price of our common stock (Level 2). (See "Debt" note.) We recognized losses of $82 million and $66 million in the second quarter and first six months of 2019 , respectively, and losses of $20 million and $24 million for the second quarter and first six months of 2018, respectively, in other non-operating income (expense), net for the changes in fair value of the derivative settlement obligations. |
Equity Plans
Equity Plans | 6 Months Ended |
Feb. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Plans | Equity Plans As of February 28, 2019 , 113 million shares of our common stock were available for future awards under our equity plans. Stock Options Stock options granted and assumptions used in the Black-Scholes option valuation model were as follows: Quarter ended Six months ended February 28, March 1, February 28, March 1, Stock options granted — 1 — 2 Weighted-average grant-date fair value per share — $ 18.61 $ 19.50 $ 18.13 Average expected life in years — 5.5 5.4 5.5 Weighted-average expected volatility — 44 % 44 % 44 % Weighted-average risk-free interest rate — 2.2 % 2.9 % 2.2 % Expected dividend yield — 0.0 % 0.0 % 0.0 % Restricted Stock and Restricted Stock Units ("Restricted Stock Awards") Restricted Stock Awards activity is summarized as follows: Quarter ended Six months ended February 28, March 1, February 28, March 1, Restricted stock award shares granted — 2 6 4 Weighted-average grant-date fair value per share $ 37.01 $ 43.21 $ 39.83 $ 41.51 Employee Stock Purchase Plan Our first ESPP offering period ended in January 2019 and we issued 1 million shares to employees at a purchase price per share of $32.50 under the ESPP. Assumptions used in the Black-Scholes option valuation model for the offering period beginning February 2019 were as follows: Weighted-average grant-date fair value per share $ 10.92 Average expected life in years 0.5 Weighted-average expected volatility 47 % Weighted-average risk-free interest rate 2.5 % Expected dividend yield 0.0 % Stock-based Compensation Expense Quarter ended Six months ended February 28, March 1, February 28, March 1, Stock-based compensation expense by caption Cost of goods sold $ 23 $ 22 $ 49 $ 42 Selling, general, and administrative 18 16 37 34 Research and development 16 14 32 27 $ 57 $ 52 $ 118 $ 103 Stock-based compensation expense by type of award Restricted stock awards $ 42 $ 38 $ 83 $ 72 Stock options 7 14 19 31 Employee Stock Purchase Plan 8 — 16 — $ 57 $ 52 $ 118 $ 103 Income tax benefits related to share-based payment arrangements were $30 million and $53 million for the second quarter and first six months of 2019, respectively, and $58 million and $116 million for the second quarter and first six months of 2018, respectively. Income tax benefits related to share-based compensation for the first quarter of 2018 were offset by an increase in the U.S. valuation allowance. As of February 28, 2019 , $450 million of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the second quarter of 2023 , resulting in a weighted-average period of 1.4 years. |
Revenue and Contract Liabilitie
Revenue and Contract Liabilities | 6 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Liabilities | Revenue and Contract Liabilities Our revenues are primarily recognized at a point in time, when control of the promised goods is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Contracts with our customers are generally short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. We estimate a liability for returns using the expected value method based on historical rates of return. In addition, we generally offer price protection to our distributors, which is a form of variable consideration that decreases the transaction price. We estimate the amount of consideration we expect to be entitled to from sales to distributors, using the expected value method, based on historical price adjustments and current pricing trends. Differences between the estimated and actual amounts are recognized as adjustments to revenue. (See "Segment and Other Information" note for disclosure of disaggregated revenue.) Contract Liabilities As of February 28, Opening Balance as of August 31, 2018 Contract liabilities from customer advances $ 147 $ 235 Other contract liabilities 108 113 $ 255 $ 348 Our contract liabilities are for advance payments received from customers to secure product in future periods and for other arrangements where we have received amounts in advance of satisfying performance obligations and are reported in the accompanying consolidated balance sheets within other current liabilities and other noncurrent liabilities. Revenue and interest expense associated with contract liabilities for the time value of advance payments was not material in any period presented. As of February 28, 2019 , our future performance obligations beyond one year were not material. Changes in contract liabilities for the first six months of 2019 were as follows: Contract liabilities balance as of August 31, 2018 $ 348 Revenue recognized from beginning balance (163 ) Additions and other activity 70 Contract liabilities balance as of February 28, 2019 $ 255 Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from customers purchasing product under advance payment arrangements. Additions and other activity included new customer advances, payments received from license and other arrangements in advance of performance, and interest accrued for financing components on advance payments. Revenue recognized for the first six months of 2019 from the beginning balance included $148 million from shipments against customer advances and $15 million from meeting other performance obligations. Consideration Payable to Customers As of February 28, 2019 , other current liabilities included $383 million for estimates of consideration payable to customers, including estimates for pricing adjustments and returns. |
Research and Development
Research and Development | 6 Months Ended |
Feb. 28, 2019 | |
Research and Development [Abstract] | |
Research and Development | Research and Development We share the cost of certain product and process development activities with development partners. Our R&D expenses were reduced by $23 million and $53 million for the second quarter and first six months of 2019, respectively, and by $58 million and $114 million for the second quarter and first six months of 2018, respectively, pursuant to reimbursements under these arrangements. We have agreements to jointly develop NAND and 3D XPoint technologies with Intel. We continue to jointly develop NAND technologies with Intel through the third generation of 3D NAND, which is expected to be completed in the second half of 2019. In the second quarter of 2018, we and Intel agreed to independently develop subsequent generations of 3D NAND in order to better optimize the technology and products for our respective business needs. We continue to jointly develop 3D XPoint technologies with Intel through the second generation of 3D XPoint technology, which is expected to be completed in the second half of 2019. To better optimize 3D XPoint technology for our product roadmap and maximize the benefits for our customers and shareholders, in the fourth quarter of 2018, we announced that we will no longer jointly develop with Intel subsequent generations of 3D XPoint technology. |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 6 Months Ended |
Feb. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net Quarter ended Six months ended February 28, March 1, February 28, March 1, Restructure and asset impairments $ 51 $ 7 $ 84 $ 13 Other 46 (23 ) 49 (18 ) $ 97 $ (16 ) $ 133 $ (5 ) Restructure and asset impairments primarily relate to our continued emphasis to centralize certain key functions. As of February 28, 2019 and August 30, 2018 , other current liabilities included $54 million and $12 million , respectively, for such restructure activities. |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 6 Months Ended |
Feb. 28, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net Quarter ended Six months ended February 28, 2019 March 1, 2018 February 28, 2019 March 1, 2018 Loss on debt prepayments, repurchases, and conversions $ (83 ) $ (23 ) $ (69 ) $ (218 ) Loss from changes in currency exchange rates (3 ) (27 ) (8 ) (36 ) Other 2 (3 ) 2 (3 ) $ (84 ) $ (53 ) $ (75 ) $ (257 ) Loss on debt prepayments, repurchases, and conversions for 2019 was primarily due to the conversion of our 2043G Notes and for 2018 was due to the repurchase of our 2023 Secured Notes and 2023 Notes and conversions of our convertible notes. |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the United States enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which imposed a one-time transition tax in 2018 (the "Repatriation Tax") and, beginning in 2019, created a new minimum tax on certain foreign earnings (the "Foreign Minimum Tax"). SEC Staff Accounting Bulletin No. 118 ("SAB 118") allows the use of provisional amounts (reasonable estimates) if the analyses of the impacts of the Tax Act have not been completed when financial statements are issued. During the first quarter of 2019, we finalized the computations of the income tax effects of the Tax Act. As such, in accordance with SAB 118, our accounting for the effects of the Tax Act is complete. Our income tax provision consisted of the following: Quarter ended Six months ended February 28, March 1, February 28, March 1, Income tax (provision) benefit, excluding items below $ (216 ) $ 5 $ (594 ) $ (83 ) Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW (78 ) (17 ) (130 ) (43 ) Repatriation Tax, net of adjustments related to uncertain tax positions 14 (1,335 ) (33 ) (1,335 ) Release of the valuation allowance on the net deferred tax assets of our U.S. operations — 1,337 — 1,337 Remeasurement of deferred tax assets and liabilities reflecting the lower U.S. corporate tax rates — (133 ) — (133 ) $ (280 ) $ (143 ) $ (757 ) $ (257 ) As of February 28, 2019 , we had gross unrecognized income tax benefits of $438 million , substantially all of which would affect our effective tax rate in the future, if recognized. The amount accrued for interest and penalties related to uncertain tax positions was not material for any period presented. We operate in a number of tax jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements, which expire in whole or in part at various dates through 2034, that are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $244 million (benefiting our diluted earnings per share by $0.21 ) and $671 million ( $0.58 per diluted share) for the second quarter and first six months of 2019 , respectively, and by $436 million ( $0.35 per diluted share) and $827 million ( $0.67 per diluted share) for the second quarter and first six months of 2018 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarter ended Six months ended February 28, March 1, February 28, March 1, Net income attributable to Micron – Basic $ 1,619 $ 3,309 $ 4,912 $ 5,987 Assumed conversion of debt (2 ) — (2 ) — Net income attributable to Micron – Diluted $ 1,617 $ 3,309 $ 4,910 $ 5,987 Weighted-average common shares outstanding – Basic 1,114 1,156 1,123 1,145 Dilutive effect of equity plans and convertible notes 27 82 34 87 Weighted-average common shares outstanding – Diluted 1,141 1,238 1,157 1,232 Earnings per share Basic $ 1.45 $ 2.86 $ 4.37 $ 5.23 Diluted 1.42 2.67 4.24 4.86 Antidilutive potential common stock shares that could dilute basic earnings per share in the future were 11 million and 9 million for the second quarter and first six months of 2019, respectively, and 3 million for the second quarter and first six months of 2018. |
Segment and Other Information
Segment and Other Information | 6 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment and Other Information | Segment and Other 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 data center, client, graphics, and networking markets. Mobile Business Unit ("MBU") : Includes memory products sold into smartphone and other mobile-device markets. Storage Business Unit ("SBU") : Includes SSDs and other storage products, including component-level solutions, sold into data center, client, and consumer SSD markets, other discrete storage products sold in component and wafer forms to the removable storage markets, and sales of 3D XPoint memory. Embedded Business Unit ("EBU") : Includes memory and storage products sold into automotive, industrial, and consumer markets. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. We do not identify or report internally our assets (other than goodwill) or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments. Quarter ended Six months ended February 28, March 1, February 28, March 1, Revenue CNBU $ 2,382 $ 3,691 $ 5,986 $ 6,903 MBU 1,611 1,566 3,823 2,931 SBU 1,022 1,254 2,165 2,637 EBU 799 829 1,732 1,659 All Other 21 11 42 24 $ 5,835 $ 7,351 $ 13,748 $ 14,154 Operating income (loss) CNBU $ 1,160 $ 2,329 $ 3,371 $ 4,243 MBU 707 689 1,910 1,194 SBU (20 ) 251 60 651 EBU 262 363 649 705 All Other 1 (2 ) 7 (6 ) 2,110 3,630 5,997 6,787 Unallocated Stock-based compensation (57 ) (52 ) (118 ) (103 ) Start-up and preproduction costs (15 ) — (23 ) — Employee severance (17 ) — (37 ) — Restructure and asset impairments (51 ) (7 ) (81 ) (13 ) Other (13 ) (4 ) (22 ) (7 ) (153 ) (63 ) (281 ) (123 ) Operating income $ 1,957 $ 3,567 $ 5,716 $ 6,664 Revenue by product type was as follows: Quarter ended Six months ended February 28, March 1, February 28, March 1, DRAM $ 3,760 $ 5,213 $ 9,133 $ 9,775 NAND 1,776 1,813 3,955 3,711 Other (primarily 3D XPoint memory and NOR) 299 325 660 668 $ 5,835 $ 7,351 $ 13,748 $ 14,154 Customer Concentrations : Revenue from Huawei Technologies Co., Ltd. was 13% of total revenue for the first six months of 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Feb. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | 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 August 30, 2018, except for changes related to recently adopted accounting standards. See "Recently Adopted Accounting Standards" note. Prior year information is presented in accordance with the accounting guidance in effect during that period and has not been recast for recently adopted accounting standards. 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. |
Comparability | Prior year information is presented in accordance with the accounting guidance in effect during that period and has not been recast for recently adopted accounting standards. |
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 2019 and 2018 each contain 52 weeks. |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 6 Months Ended |
Feb. 28, 2019 | |
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. |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Financial Statement Impact from Adoption of New Accounting Standards | Quarter ended February 28, 2019 Six months ended February 28, 2019 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 Revenue $ 5,835 $ (20 ) $ 5,815 $ 13,748 $ (115 ) $ 13,633 Cost of goods sold 2,971 (28 ) 2,943 6,269 (69 ) 6,200 Interest expense (27 ) 1 (26 ) (60 ) 3 (57 ) Income tax provision (280 ) (8 ) (288 ) (757 ) (5 ) (762 ) Net income attributable to Micron 1,619 1 1,620 4,912 (48 ) 4,864 As of February 28, 2019 As Reported Adjustments Amounts Without the Effects of Adoption of ASC 606 Receivables $ 4,416 $ (154 ) $ 4,262 Other current assets 211 (39 ) 172 Deferred tax assets 762 87 849 Accounts payable and accrued expenses 4,062 — 4,062 Other current liabilities 665 (7 ) 658 Other noncurrent liabilities 993 (1 ) 992 Retained earnings 29,364 (98 ) 29,266 The following table summarizes the effects of adopting ASU 2016-16 and ASC 606. Ending Balance as of August 30, 2018 ASU 2016-16 ASC 606 Opening Balance as of August 31, 2018 Receivables $ 5,478 $ — $ 114 $ 5,592 Inventories 3,595 — (5 ) 3,590 Other current assets 164 (14 ) 30 180 Deferred tax assets 1,022 56 (92 ) 986 Other current liabilities 521 — (4 ) 517 Other noncurrent liabilities 581 — 1 582 Retained earnings 24,395 42 50 24,487 |
Cash and Investments (Tables)
Cash and Investments (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Investments [Abstract] | |
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 February 28, 2019 August 30, 2018 Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 2,652 $ — $ — $ 2,652 $ 3,223 $ — $ — $ 3,223 Level 1 (2) Money market funds 3,114 — — 3,114 2,443 — — 2,443 Level 2 (3) Corporate bonds 21 692 923 1,636 3 172 272 447 Government securities 80 255 280 615 5 63 103 171 Asset-backed securities — 105 401 506 — 34 96 130 Certificates of deposit 382 39 10 431 806 11 2 819 Commercial paper 104 89 — 193 26 16 — 42 6,353 $ 1,180 $ 1,614 $ 9,147 6,506 $ 296 $ 473 $ 7,275 Restricted cash (4) 76 81 Cash, cash equivalents, and restricted cash $ 6,429 $ 6,587 (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 analyses to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of February 28, 2019 or August 30, 2018 . (4) Restricted cash is included in other noncurrent assets and primarily consisted of balances related to the MMJ Creditor Payments. The restrictions on the MMJ Creditor Payments lapse upon approval by the trustees and/or Tokyo District Court. |
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 February 28, 2019 August 30, 2018 Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 2,652 $ — $ — $ 2,652 $ 3,223 $ — $ — $ 3,223 Level 1 (2) Money market funds 3,114 — — 3,114 2,443 — — 2,443 Level 2 (3) Corporate bonds 21 692 923 1,636 3 172 272 447 Government securities 80 255 280 615 5 63 103 171 Asset-backed securities — 105 401 506 — 34 96 130 Certificates of deposit 382 39 10 431 806 11 2 819 Commercial paper 104 89 — 193 26 16 — 42 6,353 $ 1,180 $ 1,614 $ 9,147 6,506 $ 296 $ 473 $ 7,275 Restricted cash (4) 76 81 Cash, cash equivalents, and restricted cash $ 6,429 $ 6,587 (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 analyses to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of February 28, 2019 or August 30, 2018 . (4) Restricted cash is included in other noncurrent assets and primarily consisted of balances related to the MMJ Creditor Payments. The restrictions on the MMJ Creditor Payments lapse upon approval by the trustees and/or Tokyo District Court. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables | As of February 28, August 30, Trade receivables $ 3,997 $ 5,056 Income and other taxes 250 161 Other 169 261 $ 4,416 $ 5,478 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of February 28, August 30, Finished goods $ 843 $ 815 Work in process 3,023 2,357 Raw materials and supplies 524 423 $ 4,390 $ 3,595 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | As of February 28, August 30, Land $ 346 $ 345 Buildings 9,547 8,680 Equipment (1) 41,377 38,249 Construction in progress (2) 1,715 1,162 Software 745 655 53,730 49,091 Accumulated depreciation (27,526 ) (25,419 ) $ 26,204 $ 23,672 (1) Included costs related to equipment not placed into service of $2.51 billion and $1.73 billion , as of February 28, 2019 and August 30, 2018 , respectively. (2) Included building-related construction, tool installation, and software costs for assets not yet placed into service. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | As of February 28, 2019 August 30, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortizing assets Product and process technology $ 577 $ (227 ) $ 567 $ (344 ) Non-amortizing assets In-process R&D — — 108 — Total intangible assets $ 577 $ (227 ) $ 675 $ (344 ) Goodwill $ 1,228 $ 1,228 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable And Accrued Expenses | As of February 28, August 30, Accounts payable $ 1,523 $ 1,692 Property, plant, and equipment payables 1,416 1,238 Salaries, wages, and benefits 468 841 Income and other taxes 449 402 Other 206 201 $ 4,062 $ 4,374 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of February 28, 2019 August 30, 2018 Net Carrying Amount Net Carrying Amount Instrument Stated Rate Effective Rate Current Long-Term Total Current Long-Term Total IMFT Member Debt (1) N/A N/A $ 1,009 $ — $ 1,009 $ — $ 1,009 $ 1,009 Capital lease obligations N/A 4.12 % 261 455 716 310 536 846 MMJ Creditor Payments N/A 9.76 % 181 — 181 309 183 492 2022 Term Loan B 4.25 % 4.66 % 5 718 723 5 720 725 2024 Notes 4.64 % 4.76 % — 597 597 — — — 2025 Notes 5.50 % 5.56 % — 516 516 — 515 515 2026 Notes 4.98 % 5.07 % — 497 497 — — — 2029 Notes 5.33 % 5.40 % — 696 696 — — — 2032D Notes 3.13 % 6.33 % — 125 125 — 132 132 2033F Notes 2.13 % 4.93 % 68 — 68 235 — 235 2043G Notes 3.00 % 6.76 % 1,110 — 1,110 — 682 682 $ 2,634 $ 3,604 $ 6,238 $ 859 $ 3,777 $ 4,636 (1) IMFT Member Debt was classified as current as of February 28, 2019 as a result of exercising our option to acquire Intel's interest in IMFT. |
Schedule of Debt Conversions, Settlements, and Issuances | The following table presents the effects of conversions, settlements, and issuance of debt in the first six months of 2019: Six months ended February 28, 2019 Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Settled conversions 2032D Notes $ (10 ) $ (9 ) $ (35 ) $ (28 ) $ 2 2033F Notes (38 ) (169 ) (164 ) (8 ) 13 Conversions not settled 2043G Notes — 420 — (336 ) (84 ) Issuances 2024 Notes 600 597 597 — — 2026 Notes 500 497 497 — — 2029 Notes 700 695 695 — — $ 1,752 $ 2,031 $ 1,590 $ (372 ) $ (69 ) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Variable Interest Entity [Line Items] | |
Schedule Of Noncontrolling Interests In Subsidiaries | As of February 28, 2019 August 30, 2018 Balance Percentage Balance Percentage IMFT $ 858 49 % $ 853 49 % Other 5 Various 17 Various $ 863 $ 870 |
IM Flash Technologies, LLC | |
Variable Interest Entity [Line Items] | |
Total IMFT assets and liabilities | The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets: As of February 28, August 30, Assets Cash and equivalents $ 288 $ 91 Receivables 126 126 Inventories 111 114 Other current assets 5 8 Total current assets 530 339 Property, plant, and equipment 2,464 2,641 Other noncurrent assets 36 45 Total assets $ 3,030 $ 3,025 Liabilities Accounts payable and accrued expenses $ 154 $ 138 Current debt 1,020 20 Other current liabilities 37 9 Total current liabilities 1,211 167 Long-term debt 54 1,064 Other noncurrent liabilities 37 74 Total liabilities $ 1,302 $ 1,305 Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated fair value and carrying value of debt instruments | As of February 28, 2019 August 30, 2018 Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ Creditor Payments $ 4,291 $ 4,219 $ 2,798 $ 2,741 Convertible notes 2,232 1,303 3,124 1,049 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Gross Notional Amount Fair Value of Current Assets (1) Current Liabilities (2) As of February 28, 2019 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 235 $ — $ (3 ) Derivative instruments without hedge accounting designation Non-designated currency hedges 2,205 6 (3 ) Convertible notes settlement obligation (3) — (420 ) 6 (423 ) $ 6 $ (426 ) As of August 30, 2018 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 538 $ — $ (13 ) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,919 14 (10 ) Convertible notes settlement obligation (3) — (167 ) 14 (177 ) $ 14 $ (190 ) (1) Included in receivables – other. (2) Included in accounts payable and accrued expenses – other for forward contracts and in current debt for convertible notes settlement obligations. (3) Notional amounts of convertible notes settlement obligations as of February 28, 2019 and August 30, 2018 were 35 million and 3 million shares of our common stock, respectively. |
Equity Plans (Tables)
Equity Plans (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Granted and Valuation Assumptions | Quarter ended Six months ended February 28, March 1, February 28, March 1, Stock options granted — 1 — 2 Weighted-average grant-date fair value per share — $ 18.61 $ 19.50 $ 18.13 Average expected life in years — 5.5 5.4 5.5 Weighted-average expected volatility — 44 % 44 % 44 % Weighted-average risk-free interest rate — 2.2 % 2.9 % 2.2 % Expected dividend yield — 0.0 % 0.0 % 0.0 % |
Schedule of Restricted Stock Awards Activity | Quarter ended Six months ended February 28, March 1, February 28, March 1, Restricted stock award shares granted — 2 6 4 Weighted-average grant-date fair value per share $ 37.01 $ 43.21 $ 39.83 $ 41.51 |
Employee Stock Purchase Plan Valuation Assumptions | Weighted-average grant-date fair value per share $ 10.92 Average expected life in years 0.5 Weighted-average expected volatility 47 % Weighted-average risk-free interest rate 2.5 % Expected dividend yield 0.0 % |
Stock-based Compensation Expense by Caption | Quarter ended Six months ended February 28, March 1, February 28, March 1, Stock-based compensation expense by caption Cost of goods sold $ 23 $ 22 $ 49 $ 42 Selling, general, and administrative 18 16 37 34 Research and development 16 14 32 27 $ 57 $ 52 $ 118 $ 103 Stock-based compensation expense by type of award Restricted stock awards $ 42 $ 38 $ 83 $ 72 Stock options 7 14 19 31 Employee Stock Purchase Plan 8 — 16 — $ 57 $ 52 $ 118 $ 103 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | Changes in contract liabilities for the first six months of 2019 were as follows: Contract liabilities balance as of August 31, 2018 $ 348 Revenue recognized from beginning balance (163 ) Additions and other activity 70 Contract liabilities balance as of February 28, 2019 $ 255 As of February 28, Opening Balance as of August 31, 2018 Contract liabilities from customer advances $ 147 $ 235 Other contract liabilities 108 113 $ 255 $ 348 |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Quarter ended Six months ended February 28, March 1, February 28, March 1, Restructure and asset impairments $ 51 $ 7 $ 84 $ 13 Other 46 (23 ) 49 (18 ) $ 97 $ (16 ) $ 133 $ (5 ) |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense), Net (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense), Net | Quarter ended Six months ended February 28, 2019 March 1, 2018 February 28, 2019 March 1, 2018 Loss on debt prepayments, repurchases, and conversions $ (83 ) $ (23 ) $ (69 ) $ (218 ) Loss from changes in currency exchange rates (3 ) (27 ) (8 ) (36 ) Other 2 (3 ) 2 (3 ) $ (84 ) $ (53 ) $ (75 ) $ (257 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Provision) Benefit | Our income tax provision consisted of the following: Quarter ended Six months ended February 28, March 1, February 28, March 1, Income tax (provision) benefit, excluding items below $ (216 ) $ 5 $ (594 ) $ (83 ) Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW (78 ) (17 ) (130 ) (43 ) Repatriation Tax, net of adjustments related to uncertain tax positions 14 (1,335 ) (33 ) (1,335 ) Release of the valuation allowance on the net deferred tax assets of our U.S. operations — 1,337 — 1,337 Remeasurement of deferred tax assets and liabilities reflecting the lower U.S. corporate tax rates — (133 ) — (133 ) $ (280 ) $ (143 ) $ (757 ) $ (257 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Quarter ended Six months ended February 28, March 1, February 28, March 1, Net income attributable to Micron – Basic $ 1,619 $ 3,309 $ 4,912 $ 5,987 Assumed conversion of debt (2 ) — (2 ) — Net income attributable to Micron – Diluted $ 1,617 $ 3,309 $ 4,910 $ 5,987 Weighted-average common shares outstanding – Basic 1,114 1,156 1,123 1,145 Dilutive effect of equity plans and convertible notes 27 82 34 87 Weighted-average common shares outstanding – Diluted 1,141 1,238 1,157 1,232 Earnings per share Basic $ 1.45 $ 2.86 $ 4.37 $ 5.23 Diluted 1.42 2.67 4.24 4.86 |
Segment and Other Information (
Segment and Other Information (Tables) | 6 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Results by Segment | Quarter ended Six months ended February 28, March 1, February 28, March 1, Revenue CNBU $ 2,382 $ 3,691 $ 5,986 $ 6,903 MBU 1,611 1,566 3,823 2,931 SBU 1,022 1,254 2,165 2,637 EBU 799 829 1,732 1,659 All Other 21 11 42 24 $ 5,835 $ 7,351 $ 13,748 $ 14,154 Operating income (loss) CNBU $ 1,160 $ 2,329 $ 3,371 $ 4,243 MBU 707 689 1,910 1,194 SBU (20 ) 251 60 651 EBU 262 363 649 705 All Other 1 (2 ) 7 (6 ) 2,110 3,630 5,997 6,787 Unallocated Stock-based compensation (57 ) (52 ) (118 ) (103 ) Start-up and preproduction costs (15 ) — (23 ) — Employee severance (17 ) — (37 ) — Restructure and asset impairments (51 ) (7 ) (81 ) (13 ) Other (13 ) (4 ) (22 ) (7 ) (153 ) (63 ) (281 ) (123 ) Operating income $ 1,957 $ 3,567 $ 5,716 $ 6,664 |
Revenue by Product Type | Revenue by product type was as follows: Quarter ended Six months ended February 28, March 1, February 28, March 1, DRAM $ 3,760 $ 5,213 $ 9,133 $ 9,775 NAND 1,776 1,813 3,955 3,711 Other (primarily 3D XPoint memory and NOR) 299 325 660 668 $ 5,835 $ 7,351 $ 13,748 $ 14,154 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2019 | Aug. 30, 2018 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Variable Interest Entity (PTI Xi'an), Nonconsolidated, Carrying Amount of Capital Leases | $ 55 | $ 63 |
Variable Interest Entity (PTI Xi'an), Nonconsolidated, Carrying Amount of PP&E | $ 56 | $ 63 |
IM Flash Technologies, LLC | Minimum | ||
Noncontrolling Interest [Line Items] | ||
Joint Venture Agreement, Terms, Period Between Election Date And Transaction Closing Date | 6 months | |
IM Flash Technologies, LLC | Maximum | ||
Noncontrolling Interest [Line Items] | ||
Joint Venture Agreement, Terms, Period Between Election Date And Transaction Closing Date | 1 year |
Recently Adopted Accounting S_3
Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | $ 4,416 | $ 5,592 | $ 5,478 |
Inventories | 4,390 | 3,590 | 3,595 |
Other current assets | 211 | 180 | 164 |
Deferred tax assets | 762 | 986 | 1,022 |
Other current liabilities | 665 | 517 | 521 |
Other noncurrent liabilities | 993 | 582 | 581 |
Retained earnings | $ 29,364 | 24,487 | $ 24,395 |
ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | 114 | ||
Inventories | (5) | ||
Other current assets | 30 | ||
Deferred tax assets | (92) | ||
Other current liabilities | (4) | ||
Other noncurrent liabilities | 1 | ||
Retained earnings | 50 | ||
ASU 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | 0 | ||
Inventories | 0 | ||
Other current assets | (14) | ||
Deferred tax assets | 56 | ||
Other current liabilities | 0 | ||
Other noncurrent liabilities | 0 | ||
Retained earnings | $ 42 |
Recently Adopted Accounting S_4
Recently Adopted Accounting Standards Revenue Initial Application Period Cumulative Effect (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | Aug. 31, 2018 | Aug. 30, 2018 | |
Income Statement [Abstract] | ||||||
Revenue | $ 5,835 | $ 7,351 | $ 13,748 | $ 14,154 | ||
Cost of goods sold | 2,971 | 3,081 | 6,269 | 6,137 | ||
Interest expense | (27) | (88) | (60) | (212) | ||
Income tax provision | (280) | (143) | (757) | (257) | ||
Net income attributable to Micron | 1,619 | $ 3,309 | 4,912 | $ 5,987 | ||
Balance Sheet [Abstract] | ||||||
Receivables | 4,416 | 4,416 | $ 5,592 | $ 5,478 | ||
Other current assets | 211 | 211 | 180 | 164 | ||
Deferred tax assets | 762 | 762 | 986 | 1,022 | ||
Accounts payable and accrued expenses | 4,062 | 4,062 | 4,374 | |||
Other current liabilities | 665 | 665 | 517 | 521 | ||
Other noncurrent liabilities | 993 | 993 | 582 | 581 | ||
Retained earnings | 29,364 | 29,364 | 24,487 | $ 24,395 | ||
ASC 606 | ||||||
Balance Sheet [Abstract] | ||||||
Receivables | 114 | |||||
Other current assets | 30 | |||||
Deferred tax assets | (92) | |||||
Other current liabilities | (4) | |||||
Other noncurrent liabilities | 1 | |||||
Retained earnings | $ 50 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASC 606 | ||||||
Income Statement [Abstract] | ||||||
Revenue | 20 | 115 | ||||
Cost of goods sold | 28 | 69 | ||||
Interest expense | (1) | (3) | ||||
Income tax provision | 8 | 5 | ||||
Net income attributable to Micron | (1) | 48 | ||||
Balance Sheet [Abstract] | ||||||
Receivables | 154 | 154 | ||||
Other current assets | 39 | 39 | ||||
Deferred tax assets | (87) | (87) | ||||
Accounts payable and accrued expenses | 0 | 0 | ||||
Other current liabilities | 7 | 7 | ||||
Other noncurrent liabilities | 1 | 1 | ||||
Retained earnings | 98 | 98 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | ASC 606 | ||||||
Income Statement [Abstract] | ||||||
Revenue | 5,815 | 13,633 | ||||
Cost of goods sold | 2,943 | 6,200 | ||||
Interest expense | (26) | (57) | ||||
Income tax provision | (288) | (762) | ||||
Net income attributable to Micron | 1,620 | 4,864 | ||||
Balance Sheet [Abstract] | ||||||
Receivables | 4,262 | 4,262 | ||||
Other current assets | 172 | 172 | ||||
Deferred tax assets | 849 | 849 | ||||
Accounts payable and accrued expenses | 4,062 | 4,062 | ||||
Other current liabilities | 658 | 658 | ||||
Other noncurrent liabilities | 992 | 992 | ||||
Retained earnings | $ 29,266 | $ 29,266 |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Feb. 28, 2019 | Aug. 30, 2018 | Mar. 01, 2018 | Aug. 31, 2017 | ||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 6,353 | $ 6,506 | |||
Short-term Investments | 1,180 | 296 | |||
Long-term Marketable Investments | [1] | 1,614 | 473 | ||
Total Fair Value | 9,147 | 7,275 | |||
Restricted cash | [2] | 76 | 81 | ||
Cash, cash equivalents, and restricted cash | 6,429 | 6,587 | $ 7,941 | $ 5,216 | |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Available-for-sale securities in an unrealized loss position for longer than twelve months | $ 0 | ||||
Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Long-term marketable investments, general maturities (in years) | 1 year | ||||
Maximum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Long-term marketable investments, general maturities (in years) | 4 years | ||||
Cash | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 2,652 | 3,223 | |||
Short-term Investments | 0 | 0 | |||
Long-term Marketable Investments | 0 | 0 | |||
Total Fair Value | 2,652 | 3,223 | |||
Money market funds | Level 1 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [3] | 3,114 | 2,443 | ||
Short-term Investments | [3] | 0 | 0 | ||
Long-term Marketable Investments | [1],[3] | 0 | 0 | ||
Total Fair Value | [3] | 3,114 | 2,443 | ||
Corporate Bonds | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 21 | 3 | ||
Short-term Investments | [4] | 692 | 172 | ||
Long-term Marketable Investments | [1],[4] | 923 | 272 | ||
Total Fair Value | [4] | 1,636 | 447 | ||
Government securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 80 | 5 | ||
Short-term Investments | [4] | 255 | 63 | ||
Long-term Marketable Investments | [1],[4] | 280 | 103 | ||
Total Fair Value | [4] | 615 | 171 | ||
Asset-backed securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 0 | 0 | ||
Short-term Investments | [4] | 105 | 34 | ||
Long-term Marketable Investments | [1],[4] | 401 | 96 | ||
Total Fair Value | [4] | 506 | 130 | ||
Certificates of deposit | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 382 | 806 | ||
Short-term Investments | [4] | 39 | 11 | ||
Long-term Marketable Investments | [1],[4] | 10 | 2 | ||
Total Fair Value | [4] | 431 | 819 | ||
Commercial paper | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 104 | 26 | ||
Short-term Investments | [4] | 89 | 16 | ||
Long-term Marketable Investments | [1],[4] | 0 | 0 | ||
Total Fair Value | [4] | $ 193 | $ 42 | ||
[1] | The maturities of long-term marketable securities range from one to four years. | ||||
[2] | Restricted cash is included in other noncurrent assets and primarily consisted of balances related to the MMJ Creditor Payments. The restrictions on the MMJ Creditor Payments lapse upon approval by the trustees and/or Tokyo District Court. | ||||
[3] | The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets. | ||||
[4] | 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 analyses to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of February 28, 2019 or August 30, 2018. |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 30, 2018 |
Receivables [Abstract] | |||
Trade receivables | $ 3,997 | $ 5,056 | |
Income and other taxes | 250 | 161 | |
Other | 169 | 261 | |
Receivables | $ 4,416 | $ 5,592 | $ 5,478 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 30, 2018 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||
Finished goods | $ 843 | $ 815 | |
Work in process | 3,023 | 2,357 | |
Raw materials and supplies | 524 | 423 | |
Inventories | $ 4,390 | $ 3,590 | $ 3,595 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 30, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | $ 53,730 | $ 49,091 | |
Accumulated depreciation | (27,526) | (25,419) | |
Property, plant, and equipment, net | 26,204 | 23,672 | |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | 346 | 345 | |
Buildings | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | 9,547 | 8,680 | |
Equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | [1] | 41,377 | 38,249 |
Equipment not placed into service | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | 2,510 | 1,730 | |
Construction in progress | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | [2] | 1,715 | 1,162 |
Software | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Gross property, plant, and equipment | $ 745 | $ 655 | |
[1] | Included costs related to equipment not placed into service of $2.51 billion and $1.73 billion, as of February 28, 2019 and August 30, 2018, respectively. | ||
[2] | Included building-related construction, tool installation, and software costs for assets not yet placed into service. |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 29, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | Aug. 30, 2018 | |
Amortizing assets [Line Items] | ||||
Accumulated Amortization, Product and process technology | $ (227) | $ (344) | ||
Annual amortization expense for intangible assets [Abstract] | ||||
Remainder of 2019 | 36 | |||
2020 | 66 | |||
2021 | 60 | |||
2022 | 47 | |||
2023 | 43 | |||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||||
Total intangible assets, (gross, excluding Goodwill) | 577 | 675 | ||
Goodwill | 1,228 | 1,228 | ||
In-process R&D | ||||
Non-amortizing assets [Line Items] | ||||
Gross Amount, In-process R&D | 0 | 108 | ||
Product and process technology | ||||
Amortizing assets [Line Items] | ||||
Gross Amount, Product and process technology | 577 | 567 | ||
Accumulated Amortization, Product and process technology | (227) | $ (344) | ||
Product and process technology intangible asset capitalized during period | $ 64 | $ 15 | ||
Product and process technology intangible asset capitalized during period, weighted-average useful lives (in years) | 8 years | 12 years | ||
In-process R&D | ||||
Amortizing assets [Line Items] | ||||
Increase in amortizing assets for in-process R&D placed into service | $ 108 | |||
Useful life assigned to in-process R&D assets | 6 years |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 30, 2018 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 1,523 | $ 1,692 |
Property, plant, and equipment payables | 1,416 | 1,238 |
Salaries, wages, and benefits | 468 | 841 |
Income and other taxes | 449 | 402 |
Other | 206 | 201 |
Total accounts payable and accrued expenses | $ 4,062 | $ 4,374 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) | Feb. 06, 2019USD ($) | Feb. 28, 2019USD ($)d | Aug. 30, 2018USD ($) | |
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Current debt | $ 2,634,000,000 | $ 859,000,000 | ||
Long-term debt | 3,604,000,000 | 3,777,000,000 | ||
Total | $ 6,238,000,000 | 4,636,000,000 | ||
Convertible Debt | ||||
Convertible Senior Notes | ||||
Conversion rights, minimum number of trading days (in days) | d | 20 | |||
Conversion rights, consecutive trading period (in days) | d | 30 | |||
Conversion rights, threshold percentage of applicable conversion price (in hundredths) | 130.00% | |||
Convertible Debt | IMFT Member Debt | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Current debt | $ 1,009,000,000 | [1] | 0 | |
Long-term debt | 0 | [1] | 1,009,000,000 | |
Total | $ 1,009,000,000 | [1] | 1,009,000,000 | |
Convertible Debt | 2032D Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 3.13% | |||
Effective Rate (in ten thousandths) | 6.33% | |||
Current debt | $ 0 | 0 | ||
Long-term debt | 125,000,000 | 132,000,000 | ||
Total | $ 125,000,000 | 132,000,000 | ||
Convertible Debt | 2033F Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 2.13% | |||
Effective Rate (in ten thousandths) | 4.93% | |||
Current debt | $ 68,000,000 | 235,000,000 | ||
Long-term debt | 0 | 0 | ||
Total | $ 68,000,000 | 235,000,000 | ||
Convertible Debt | 2043G Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 3.00% | |||
Effective Rate (in ten thousandths) | 6.76% | |||
Current debt | $ 1,110,000,000 | 0 | ||
Long-term debt | 0 | 682,000,000 | ||
Total | 1,110,000,000 | 682,000,000 | ||
Convertible Debt | 2032D and 2033F | ||||
Convertible Senior Notes | ||||
Conversion value of convertible notes | 807,000,000 | |||
Principal amount of convertible notes | 203,000,000 | |||
Conversion value in excess of principal | 604,000,000 | |||
Capital lease obligations | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Current debt | 261,000,000 | 310,000,000 | ||
Long-term debt | 455,000,000 | 536,000,000 | ||
Total | $ 716,000,000 | 846,000,000 | ||
Reorganization obligation | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Effective Rate (in ten thousandths) | 9.76% | |||
Current debt | $ 181,000,000 | 309,000,000 | ||
Long-term debt | 0 | 183,000,000 | ||
Total | $ 181,000,000 | 492,000,000 | ||
Secured Debt | 2022 Term Loan B | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 4.25% | |||
Effective Rate (in ten thousandths) | 4.66% | |||
Current debt | $ 5,000,000 | 5,000,000 | ||
Long-term debt | 718,000,000 | 720,000,000 | ||
Total | $ 723,000,000 | 725,000,000 | ||
Corporate Bonds | 2024 Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 4.64% | |||
Effective Rate (in ten thousandths) | 4.76% | |||
Current debt | $ 0 | 0 | ||
Long-term debt | 597,000,000 | 0 | ||
Total | $ 597,000,000 | 0 | ||
Corporate Bonds | 2025 Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 5.50% | |||
Effective Rate (in ten thousandths) | 5.56% | |||
Current debt | $ 0 | 0 | ||
Long-term debt | 516,000,000 | 515,000,000 | ||
Total | $ 516,000,000 | 515,000,000 | ||
Corporate Bonds | 2026 Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 4.98% | |||
Effective Rate (in ten thousandths) | 5.07% | |||
Current debt | $ 0 | 0 | ||
Long-term debt | 497,000,000 | 0 | ||
Total | $ 497,000,000 | 0 | ||
Corporate Bonds | 2029 Notes | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Stated Rate (in ten thousandths) | 5.33% | |||
Effective Rate (in ten thousandths) | 5.40% | |||
Current debt | $ 0 | 0 | ||
Long-term debt | 696,000,000 | 0 | ||
Total | 696,000,000 | 0 | ||
Corporate Bonds | 2024 Notes, 2026 Notes, and 2029 Notes | ||||
Senior Unsecured Notes | ||||
Debt issuance costs | $ 11,000,000 | |||
Restricted subsidiaries, ownership percentage by parent | 80.00% | |||
Redemption price percentage upon change in control | 101.00% | |||
Notes Payable, Other Payables | Revolving Credit Facility | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Total | 0 | |||
Available Revolving Credit Facility [Abstract] | ||||
Line of credit facility, Maximum borrowing capacity | $ 2,500,000,000 | $ 2,000,000,000 | ||
Weighted Average | Capital lease obligations | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Effective Rate (in ten thousandths) | 4.12% | |||
[1] | IMFT Member Debt was classified as current as of February 28, 2019 as a result of exercising our option to acquire Intel's interest in IMFT. |
Debt - Debt Activity (Details)
Debt - Debt Activity (Details) | Mar. 13, 2019USD ($) | Mar. 12, 2019USD ($) | May 30, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 29, 2018USD ($) | Mar. 01, 2018USD ($) | Nov. 30, 2017USD ($) | Feb. 28, 2019USD ($) | Mar. 01, 2018USD ($) | Aug. 30, 2018USD ($) |
Extinguishment of Debt [Line Items] | ||||||||||
Current debt | $ 2,634,000,000 | $ 2,634,000,000 | $ 859,000,000 | |||||||
Increase (Decrease) in Principal (conversions, settlements, and issuances) | 1,752,000,000 | |||||||||
Increase (Decrease) in Carrying Value | 2,031,000,000 | |||||||||
Increase (Decrease) in Cash (conversions, settlements, and issuance of debt) | 1,590,000,000 | |||||||||
Decrease in Equity | (336,000,000) | $ (36,000,000) | $ (252,000,000) | $ (204,000,000) | (372,000,000) | |||||
Gain (Loss) on debt prepayments, repurchases, and conversions | (83,000,000) | $ (23,000,000) | $ (69,000,000) | $ (218,000,000) | ||||||
Convertible Debt | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Derivative, Term of Contract | 20 days | |||||||||
Convertible Debt | 2032D Notes | Settled conversions | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Decrease in Principal | $ (10,000,000) | |||||||||
Increase (Decrease) in Carrying Value | (9,000,000) | |||||||||
Decrease in Cash | (35,000,000) | |||||||||
Decrease in Equity | (28,000,000) | |||||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | 2,000,000 | |||||||||
Convertible Debt | 2033F Notes | Settled conversions | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Decrease in Principal | (38,000,000) | |||||||||
Increase (Decrease) in Carrying Value | (169,000,000) | |||||||||
Decrease in Cash | (164,000,000) | |||||||||
Decrease in Equity | (8,000,000) | |||||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | 13,000,000 | |||||||||
Convertible Debt | 2043G Notes | Conversions not settled | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Current debt | 1,110,000,000 | 1,110,000,000 | ||||||||
Decrease in Principal | 0 | |||||||||
Increase (Decrease) in Carrying Value | 420,000,000 | |||||||||
Decrease in Cash | 0 | |||||||||
Decrease in Equity | (336,000,000) | |||||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | (84,000,000) | |||||||||
Subsequent Event | Convertible Debt | 2043G Notes | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Conversion rate (in shares per $1000 principal) | 34.2936 | |||||||||
Principal amount used In conversion rate | $ 1,000 | |||||||||
Decrease in Cash | $ (1,430,000,000) | |||||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | $ 316,000,000 | |||||||||
Corporate Bonds | 2024 Notes | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Current debt | 0 | 0 | 0 | |||||||
Increase (Decrease) in Principal (conversions, settlements, and issuances) | 600,000,000 | |||||||||
Increase (Decrease) in Carrying Value | 597,000,000 | |||||||||
Increase in Cash | 597,000,000 | |||||||||
Corporate Bonds | 2026 Notes | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Current debt | 0 | 0 | 0 | |||||||
Increase (Decrease) in Principal (conversions, settlements, and issuances) | 500,000,000 | |||||||||
Increase (Decrease) in Carrying Value | 497,000,000 | |||||||||
Increase in Cash | 497,000,000 | |||||||||
Corporate Bonds | 2029 Notes | ||||||||||
Extinguishment of Debt [Line Items] | ||||||||||
Current debt | $ 0 | 0 | $ 0 | |||||||
Increase (Decrease) in Principal (conversions, settlements, and issuances) | 700,000,000 | |||||||||
Increase (Decrease) in Carrying Value | 695,000,000 | |||||||||
Increase in Cash | $ 695,000,000 |
Contingencies (Details)
Contingencies (Details) - 6 months ended Feb. 28, 2019 ¥ in Millions, $ in Millions | CNY (¥)patentClaims | USD ($) |
Pending Litigation | Qimonda AG Inotera Share Purchase Proceedings | ||
Loss Contingencies [Line Items] | ||
Percentage of total Inotera shares subject to litigation (in hundredths) | 18.00% | |
Loss contingency, judgment under appeal | $ | $ 1 | |
Patent Matters | Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Percent of annualized revenue derived from impacted products | 1.00% | |
Patent Matters | Pending Litigation | Elm 3DS Innovations, LLC | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 13 | |
Patent Matters | Pending Litigation | Innovative Memory Solutions, Inc. Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 8 | |
Patent Matters | Pending Litigation | Innovative Memory Solutions, Inc. Complaint 2 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Patent Matters | Pending Litigation | Innovative Memory Solutions, Inc. Complaint 3 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 1 | |
Patent Matters | Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 98 | |
Patent Matters | Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. Complaint 2 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 98 | |
Patent Matters | Pending Litigation | United Microelectronics Corporation Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Patent Matters | Pending Litigation | United Microelectronics Corporation Complaint 2 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Patent Matters | Withdrawn [Member] | United Microelectronics Corporation Complaint 3 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | 1 | |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Antitrust Matters | Pending Litigation | Initial indirect DRAM Purchasers United States | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 1 | |
Antitrust Matters | Pending Litigation | Subsequent indirect DRAM Purchasers United States | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 2 | |
Antitrust Matters | Pending Litigation | Initial direct DRAM Purchasers United States | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 1 | |
Antitrust Matters | Pending Litigation | Subsequent direct DRAM Purchasers United States | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 4 | |
Antitrust Matters | Pending Litigation | DRAM Purchasers Canada | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 6 | |
Securities Matters | Pending Litigation | Shareholder Class Action New York Court | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 3 | |
Securities Matters | Pending Litigation | Shareholder Class Action Delaware Court | ||
Loss Contingencies [Line Items] | ||
Number of new claims | Claims | 1 |
Equity - Common Stock Repurchas
Equity - Common Stock Repurchase Authorization (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2019 | Mar. 01, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Payments to Acquire Treasury Stock | $ 2,568 | $ 67 | |
Repurchases Authorized May 2018 by the BOD | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common Stock Repurchase, Authorized Amount | $ 10,000 | $ 10,000 | |
Treasury Shares Repurchased (in shares) | 21 | 63 | |
Payments to Acquire Treasury Stock | $ 702 | $ 2,510 |
Equity - NCI and Consolidated V
Equity - NCI and Consolidated VIE Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | Aug. 30, 2018 | |
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest Balance | $ 863 | $ 863 | $ 870 | ||
IMFT sales to Intel at prices approximating cost | 5,835 | $ 7,351 | 13,748 | $ 14,154 | |
IM Flash Technologies, LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest Balance | $ 858 | $ 858 | $ 853 | ||
Noncontrolling Interest Percentage (in hundredths) | 49.00% | 49.00% | 49.00% | ||
Ownership interest in IMFT (in hundredths) | 51.00% | 51.00% | |||
Joint Venture Agreement, Terms [Abstract] | |||||
Joint Venture Agreement, Terms, Supply Lookback Period | 6 months | ||||
Joint Venture Agreement, Terms, Supply Allotment Subperiod Duration | 6 months | ||||
Joint Venture Agreement, Terms, Partner Contribution Output Sharing Lag | 8 months | ||||
Other Consolidated Entities | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest Balance | $ 5 | $ 5 | $ 17 | ||
Minimum | IM Flash Technologies, LLC | |||||
Joint Venture Agreement, Terms [Abstract] | |||||
Joint Venture Agreement, Terms, Period Between Election Date And Transaction Closing Date | 6 months | ||||
Joint Venture Agreement, Terms, Period One Partner Output Allotment, Percentage | 50.00% | ||||
Joint Venture Agreement, Terms, Period Two Partner Output Allotment, Percentage | 0.00% | ||||
Maximum | IM Flash Technologies, LLC | |||||
Joint Venture Agreement, Terms [Abstract] | |||||
Joint Venture Agreement, Terms, Period Between Election Date And Transaction Closing Date | 1 year | ||||
Joint Venture Agreement, Terms, Continued Supply Period to Partner | 1 year | ||||
Joint Venture Agreement, Terms, Period One Partner Output Allotment, Percentage | 100.00% | ||||
Joint Venture Agreement, Terms, Period Two Partner Output Allotment, Percentage | 100.00% | ||||
IM Flash Technologies, LLC | Intel | |||||
Noncontrolling Interest [Line Items] | |||||
IMFT sales to Intel at prices approximating cost | $ 172 | $ 115 | $ 347 | $ 227 |
Equity - Consolidated VIE asset
Equity - Consolidated VIE assets and liabilities (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Aug. 31, 2018 | Aug. 30, 2018 | |
Assets | ||||
Cash and equivalents | $ 6,353 | $ 6,506 | ||
Receivables | 4,416 | $ 5,592 | 5,478 | |
Inventories | 4,390 | 3,590 | 3,595 | |
Other current assets | 211 | 180 | 164 | |
Total current assets | 16,550 | 16,039 | ||
Property, plant, and equipment | 26,204 | 23,672 | ||
Other noncurrent assets | 779 | 611 | ||
Total assets | 47,487 | 43,376 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 4,062 | 4,374 | ||
Current debt | 2,634 | 859 | ||
Other current liabilities | 665 | 517 | 521 | |
Total current liabilities | 7,361 | 5,754 | ||
Long-term debt | 3,604 | 3,777 | ||
Other noncurrent liabilities | 993 | $ 582 | 581 | |
Total liabilities | 11,958 | 10,112 | ||
IM Flash Technologies, LLC | ||||
Assets | ||||
Cash and equivalents | [1] | 288 | 91 | |
Receivables | [1] | 126 | 126 | |
Inventories | [1] | 111 | 114 | |
Other current assets | [1] | 5 | 8 | |
Total current assets | [1] | 530 | 339 | |
Property, plant, and equipment | [1] | 2,464 | 2,641 | |
Other noncurrent assets | [1] | 36 | 45 | |
Total assets | [1] | 3,030 | 3,025 | |
Liabilities | ||||
Accounts payable and accrued expenses | [1] | 154 | 138 | |
Current debt | [1] | 1,020 | 20 | |
Other current liabilities | [1] | 37 | 9 | |
Total current liabilities | [1] | 1,211 | 167 | |
Long-term debt | [1] | 54 | 1,064 | |
Other noncurrent liabilities | [1] | 37 | 74 | |
Total liabilities | [1] | $ 1,302 | $ 1,305 | |
[1] | Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair and Carrying Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2019 | Aug. 30, 2018 | |
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 6,238 | $ 4,636 |
Unrealized loss on assets held for sale (level 3) | 46 | |
Fair Value | Level 2 | Notes and MMJ Creditor Payments | ||
Fair value disclosure [Line Items] | ||
Fair Value of Notes and MMJ Creditor Payments | 4,291 | 2,798 |
Fair Value | Level 2 | Convertible notes | ||
Fair value disclosure [Line Items] | ||
Fair Value of Convertible notes | 2,232 | 3,124 |
Carrying Value | Notes and MMJ Creditor Payments | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | 4,219 | 2,741 |
Carrying Value | Convertible notes | ||
Fair value disclosure [Line Items] | ||
Carrying Value of Debt | $ 1,303 | $ 1,049 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts and Fair Values (Details) shares in Millions, $ in Millions | 6 Months Ended | ||
Feb. 28, 2019USD ($)shares | Aug. 30, 2018USD ($)shares | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Current Assets | [1] | $ 6 | $ 14 |
Fair Value of Current Liabilities | [2] | $ (426) | (190) |
Designated hedging instruments | |||
Derivative, Fair Value, Net [Abstract] | |||
General maturity of currency forward contracts (in months) | 12 months | ||
Designated hedging instruments | Cash flow hedges | Currency forward | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Currency forwards | $ 235 | 538 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Current Assets | [1] | 0 | 0 |
Fair Value of Current Liabilities | [2] | (3) | (13) |
Not designated hedging instruments | |||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Current Assets | [1] | 6 | 14 |
Fair Value of Current Liabilities | [2] | $ (423) | (177) |
General maturity of currency forward contracts (in months) | 3 months | ||
Not designated hedging instruments | Currency forward | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Currency forwards | $ 2,205 | 1,919 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Current Assets | [1] | 6 | 14 |
Fair Value of Current Liabilities | [2] | $ (3) | $ (10) |
Not designated hedging instruments | Convertible notes settlement obligation | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Convertible notes settlement obligation (in shares) | shares | 35 | 3 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Current Assets | [1] | $ 0 | $ 0 |
Fair Value of Current Liabilities | [2],[3] | $ (420) | $ (167) |
[1] | Included in receivables – other. | ||
[2] | Included in accounts payable and accrued expenses – other for forward contracts and in current debt for convertible notes settlement obligations. | ||
[3] | Notional amounts of convertible notes settlement obligations as of February 28, 2019 and August 30, 2018 were 35 million and 3 million shares of our common stock, respectively. |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 | Nov. 29, 2018 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Designated hedging instruments | Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) recognized in other comprehensive income, effective portion | $ 7 | $ 21 | $ (6) | $ 17 | |
Designated hedging instruments | Fair value hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain on fair value hedged instruments | 56 | ||||
Losses from amortization of amounts excluded from hedge effectiveness | (19) | ||||
Currency forward | Not designated hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) for derivative instruments without hedge accounting designation | 11 | $ (11) | 50 | 52 | |
Convertible notes settlement obligation | Not designated hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) for derivative instruments without hedge accounting designation | $ (82) | $ (20) | $ (66) | $ (24) |
Equity Plans - Share Based Awar
Equity Plans - Share Based Awards (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 | Jan. 31, 2019 | Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future awards (in shares) | 113,000,000 | 113,000,000 | 113,000,000 | |||
Employee stock option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Fair Value Assumptions, Method Used | Black-Scholes | |||||
Stock options granted (in shares) | 0 | 1,000,000 | 0 | 2,000,000 | ||
Weighted-average grant-date fair values per share (in dollars per share) | $ 18.61 | $ 19.50 | $ 18.13 | |||
Average expected life (in years) | 5 years 6 months | 5 years 5 months | 5 years 6 months | |||
Weighted-average expected volatility (in hundredths) | 44.00% | 44.00% | 44.00% | |||
Weighted-average risk-free interest rate (in thousandths) | 2.20% | 2.90% | 2.20% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Restricted stock award | ||||||
Restricted Stock Awards and ESPP activity | ||||||
Number of restricted awards granted (in shares) | 0 | 2,000,000 | 6,000,000 | 4,000,000 | ||
Weighted-average grant-date fair value per share (in dollars per share) | $ 37.01 | $ 43.21 | $ 39.83 | $ 41.51 | ||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Fair Value Assumptions, Method Used | Black-Scholes | |||||
Average expected life (in years) | 6 months | |||||
Weighted-average expected volatility (in hundredths) | 47.00% | |||||
Weighted-average risk-free interest rate (in thousandths) | 2.50% | |||||
Expected dividend yield | 0.00% | |||||
Restricted Stock Awards and ESPP activity | ||||||
Weighted-average grant-date fair value per share (in dollars per share) | $ 10.92 | |||||
ESPP shares issued (in shares) | 1,000,000 | |||||
ESPP shares issued, price per share (in dollars per share) | $ 32.50 |
Equity Plans - Stock-based comp
Equity Plans - Stock-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 57 | $ 52 | $ 118 | $ 103 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Tax benefit from compensation expense | 30 | 58 | 53 | 116 |
Total unrecognized compensation costs related to unvested awards expected to be recognized | 450 | $ 450 | ||
Weighted average period that unrecognized compensation costs is expected to be recognized (in years) | 1 year 5 months | |||
Restricted stock award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 42 | 38 | $ 83 | 72 |
Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 7 | 14 | 19 | 31 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 8 | 0 | 16 | 0 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 23 | 22 | 49 | 42 |
Selling, general, and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 18 | 16 | 37 | 34 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 16 | $ 14 | $ 32 | $ 27 |
Revenue and Contract Liabilit_2
Revenue and Contract Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2019 | Aug. 31, 2018 | |
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities | $ 255 | $ 348 |
Revenue recognized from beginning balance | 163 | |
Additions and other activity | 70 | |
Contract with Customer, Refund Liability [Abstract] | ||
Estimated consideration payable to customers for pricing adjustments and returns | 383 | |
Contract liabilities from customer advances (product) | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities | 147 | 235 |
Revenue recognized from beginning balance | 148 | |
Other contract liabilities | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities | 108 | $ 113 |
Revenue recognized from beginning balance | $ 15 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Collaborative Arrangement Process Design and Process Development | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Reduction in R and D expenses for reimbursements from partners | $ 23 | $ 58 | $ 53 | $ 114 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | Aug. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructure and asset impairments | $ 51 | $ 7 | $ 84 | $ 13 | |
Other | 46 | (23) | 49 | (18) | |
Other operating (income) expense, net | 97 | $ (16) | 133 | $ (5) | |
Restructuring Reserve [Abstract] | |||||
Current restructuring liability | $ 54 | $ 54 | $ 12 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Loss on debt prepayments, repurchases, and conversions | $ (83) | $ (23) | $ (69) | $ (218) |
Loss from changes in currency exchange rates | (3) | (27) | (8) | (36) |
Other | 2 | (3) | 2 | (3) |
Other non-operating income (expense), net | $ (84) | $ (53) | $ (75) | $ (257) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Income tax (provision) benefit, excluding items below | $ (216) | $ 5 | $ (594) | $ (83) |
Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW | (78) | (17) | (130) | (43) |
Repatriation Tax, net of adjustments related to uncertain tax positions | 14 | (1,335) | (33) | (1,335) |
Release of the valuation allowance on the net deferred tax assets of our U.S. operations | 0 | 1,337 | 0 | 1,337 |
Remeasurement of deferred tax assets and liabilities reflecting the lower U.S. corporate tax rates | 0 | (133) | 0 | (133) |
Income Tax Expense (Benefit) | (280) | (143) | (757) | (257) |
Unrecognized Tax Benefits | ||||
Unrecognized income tax benefits | 438 | 438 | ||
Tax benefit from incentive arrangements | $ 244 | $ 436 | $ 671 | $ 827 |
Tax benefit per diluted share from incentive arrangements | $ 0.21 | $ 0.35 | $ 0.58 | $ 0.67 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income attributable to Micron - Basic | $ 1,619 | $ 3,309 | $ 4,912 | $ 5,987 |
Assumed conversion of debt | (2) | 0 | (2) | 0 |
Net income attributable to Micron – Diluted | $ 1,617 | $ 3,309 | $ 4,910 | $ 5,987 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted-average common shares outstanding - Basic (in shares) | 1,114 | 1,156 | 1,123 | 1,145 |
Dilutive effect of equity plans and convertible notes (in shares) | 27 | 82 | 34 | 87 |
Weighted-average common shares outstanding - Diluted (in shares) | 1,141 | 1,238 | 1,157 | 1,232 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Basic (in dollars per share) | $ 1.45 | $ 2.86 | $ 4.37 | $ 5.23 |
Diluted (in dollars per share) | $ 1.42 | $ 2.67 | $ 4.24 | $ 4.86 |
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 11 | 3 | 9 | 3 |
Segment and Other Information_2
Segment and Other Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019USD ($) | Mar. 01, 2018USD ($) | Feb. 28, 2019USD ($)segment | Mar. 01, 2018USD ($) | |
Reportable Segments | ||||
Number of reportable segments | segment | 4 | |||
Net sales | ||||
Revenue | $ 5,835 | $ 7,351 | $ 13,748 | $ 14,154 |
Operating income (loss) | ||||
Stock-based compensation | (57) | (52) | (118) | (103) |
Restructure and asset impairments | (51) | (7) | (84) | (13) |
Other | (97) | 16 | (133) | 5 |
Operating income (loss) | 1,957 | 3,567 | 5,716 | 6,664 |
CNBU | ||||
Net sales | ||||
Revenue | 2,382 | 3,691 | 5,986 | 6,903 |
MBU | ||||
Net sales | ||||
Revenue | 1,611 | 1,566 | 3,823 | 2,931 |
SBU | ||||
Net sales | ||||
Revenue | 1,022 | 1,254 | 2,165 | 2,637 |
EBU | ||||
Net sales | ||||
Revenue | 799 | 829 | 1,732 | 1,659 |
All Other | ||||
Net sales | ||||
Revenue | 21 | 11 | 42 | 24 |
Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 2,110 | 3,630 | 5,997 | 6,787 |
Operating Segments | CNBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 1,160 | 2,329 | 3,371 | 4,243 |
Operating Segments | MBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 707 | 689 | 1,910 | 1,194 |
Operating Segments | SBU | ||||
Operating income (loss) | ||||
Operating income (loss) | (20) | 251 | 60 | 651 |
Operating Segments | EBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 262 | 363 | 649 | 705 |
Operating Segments | All Other | ||||
Operating income (loss) | ||||
Operating income (loss) | 1 | (2) | 7 | (6) |
Unallocated | ||||
Operating income (loss) | ||||
Stock-based compensation | (57) | (52) | (118) | (103) |
Start-up and preproduction costs | (15) | 0 | (23) | 0 |
Employee severance | (17) | 0 | (37) | 0 |
Restructure and asset impairments | (51) | (7) | (81) | (13) |
Other | (13) | (4) | (22) | (7) |
Operating income (loss) | $ (153) | $ (63) | $ (281) | $ (123) |
Segment and Other Information -
Segment and Other Information - Revenue by Product Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2019 | Mar. 01, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 5,835 | $ 7,351 | $ 13,748 | $ 14,154 |
Customer Concentration Risk | Revenue | Huawei Technologies Co., Ltd. | ||||
Revenue from External Customer [Line Items] | ||||
Customer concentration, percentage | 13.00% | |||
DRAM | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 3,760 | 5,213 | $ 9,133 | 9,775 |
NAND | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,776 | 1,813 | 3,955 | 3,711 |
Other (primarily 3D XPoint memory and NOR) | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 299 | $ 325 | $ 660 | $ 668 |
Uncategorized Items - mu-201902
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 92,000,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 92,000,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 92,000,000 |