Document Entity Information
Document Entity Information - shares | 6 Months Ended | |
Feb. 27, 2020 | Mar. 19, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-10658 | |
Entity Registrant Name | Micron Technology, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-1618004 | |
Entity Address, Address Line One | 8000 S. Federal Way | |
Entity Address, City or Town | Boise | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83716 | |
City Area Code | 208 | |
Local Phone Number | 368-4000 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | MU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,112,186,006 | |
Entity Central Index Key | 0000723125 | |
Current Fiscal Year End Date | --09-03 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 4,797 | $ 5,835 | $ 9,941 | $ 13,748 |
Cost of goods sold | 3,442 | 2,971 | 7,220 | 6,269 |
Gross margin | 1,355 | 2,864 | 2,721 | 7,479 |
Selling, general, and administrative | 223 | 209 | 434 | 418 |
Research and development | 681 | 601 | 1,321 | 1,212 |
Other operating (income) expense, net | 11 | 97 | 8 | 133 |
Operating income | 440 | 1,957 | 958 | 5,716 |
Interest income | 34 | 58 | 78 | 96 |
Interest expense | (46) | (27) | (93) | (60) |
Other non-operating income (expense), net | (1) | (84) | 45 | (75) |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | 427 | 1,904 | 988 | 5,677 |
Income tax (provision) benefit | (21) | (280) | (76) | (757) |
Equity in net income (loss) of equity method investees | 1 | 1 | 3 | 1 |
Net income | 407 | 1,625 | 915 | 4,921 |
Net income attributable to noncontrolling interests | (2) | (6) | (19) | (9) |
Net income attributable to Micron | $ 405 | $ 1,619 | $ 896 | $ 4,912 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.37 | $ 1.45 | $ 0.81 | $ 4.37 |
Diluted (in dollars per share) | $ 0.36 | $ 1.42 | $ 0.79 | $ 4.24 |
Number of shares used in per share calculations | ||||
Basic (in shares) | 1,111 | 1,114 | 1,109 | 1,123 |
Diluted (in shares) | 1,133 | 1,141 | 1,131 | 1,157 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 407 | $ 1,625 | $ 915 | $ 4,921 |
Other comprehensive income (loss), net of tax | ||||
Gains (losses) on derivative instruments | (18) | 6 | (15) | (6) |
Gains (losses) on investments | 3 | 6 | (2) | 3 |
Foreign currency translation adjustments | 0 | (1) | 0 | (1) |
Pension liability adjustments | 0 | 0 | (1) | 0 |
Other comprehensive income (loss) | (15) | 11 | (18) | (4) |
Total comprehensive income | 392 | 1,636 | 897 | 4,917 |
Comprehensive income attributable to noncontrolling interests | (2) | (6) | (19) | (9) |
Comprehensive income attributable to Micron | $ 390 | $ 1,630 | $ 878 | $ 4,908 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 | |
Assets | |||
Cash and equivalents | $ 7,118 | $ 7,152 | |
Short-term investments | 363 | 803 | |
Receivables | 3,049 | 3,195 | |
Inventories | 5,208 | 5,118 | |
Other current assets | 238 | 235 | |
Total current assets | 15,976 | 16,503 | |
Long-term marketable investments | [1] | 586 | 1,164 |
Property, plant, and equipment | 29,647 | 28,240 | |
Intangible assets | 332 | 340 | |
Deferred tax assets | 764 | 837 | |
Goodwill | 1,228 | 1,228 | |
Operating lease right-of-use assets | 605 | 0 | |
Other noncurrent assets | 510 | 575 | |
Total assets | 49,648 | 48,887 | |
Liabilities and equity | |||
Accounts payable and accrued expenses | 5,077 | 4,626 | |
Current debt | 237 | 1,310 | |
Other current liabilities | 508 | 454 | |
Total current liabilities | 5,822 | 6,390 | |
Long-term debt | 5,188 | 4,541 | |
Noncurrent operating lease liabilities | 548 | 0 | |
Noncurrent unearned government incentives | 586 | 636 | |
Other noncurrent liabilities | 383 | 452 | |
Total liabilities | 12,527 | 12,019 | |
Commitments and contingencies | |||
Redeemable noncontrolling interest | 98 | 98 | |
Micron shareholders' equity | |||
Common stock, $0.10 par value, 3,000 shares authorized, 1,191 shares issued and 1,112 outstanding (1,182 shares issued and 1,106 outstanding as of August 29, 2019) | 119 | 118 | |
Additional capital | 8,725 | 8,214 | |
Retained earnings | 31,602 | 30,761 | |
Treasury stock, 79 shares held (76 shares as of August 29, 2019) | (3,414) | (3,221) | |
Accumulated other comprehensive income | (9) | 9 | |
Total Micron shareholders' equity | 37,023 | 35,881 | |
Noncontrolling interests in subsidiary | 0 | 889 | |
Total equity | 37,023 | 36,770 | |
Total liabilities and equity | $ 49,648 | $ 48,887 | |
[1] | The maturities of long-term marketable investments range from one year to four years. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
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) | 1,191 | 1,182 |
Common Stock, outstanding (in shares) | 1,112 | 1,106 |
Treasury Stock, held (in shares) | 79 | 76 |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Additional Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Micron Shareholders' Equity | Total Micron Shareholders' EquityCumulative Effect, Period Of Adoption, Adjustment | Noncontrolling Interests in Subsidiary |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | $ 33,164 | $ 92 | $ 117 | $ 8,201 | $ 24,395 | $ 92 | $ (429) | $ 10 | $ 32,294 | $ 92 | $ 870 |
Balance (in shares) at Aug. 30, 2018 | 1,170 | ||||||||||
Balance at Aug. 30, 2018 | 33,164 | 92 | $ 117 | 8,201 | 24,395 | 92 | (429) | 10 | 32,294 | 92 | 870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 34,739 | 92 | $ 117 | 8,350 | 27,769 | 92 | (2,362) | (5) | 33,869 | 92 | 870 |
Net income | 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) | |||||||||
Repurchase of stock, accelerated share repurchase program adj | 108 | ||||||||||
Repurchase of treasury stock | (1,933) | ||||||||||
Repurchase of treasury stock (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 | ||||||||||
Balance at Aug. 30, 2018 | 33,164 | 92 | $ 117 | 8,201 | 24,395 | 92 | (429) | 10 | 32,294 | 92 | 870 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 35,430 | $ 92 | $ 118 | 8,143 | 29,364 | $ 92 | (3,064) | 6 | 34,567 | $ 92 | 863 |
Other comprehensive income (loss), net | (4) | ||||||||||
Balance (in shares) at Feb. 28, 2019 | 1,178 | ||||||||||
Balance at Feb. 28, 2019 | 35,430 | $ 118 | 8,143 | 29,364 | (3,064) | 6 | 34,567 | 863 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 34,739 | $ 117 | 8,350 | 27,769 | (2,362) | (5) | 33,869 | 870 | |||
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] | |||||||||||
Cumulative effect of adoption new accounting standard | 35,430 | $ 118 | 8,143 | 29,364 | (3,064) | 6 | 34,567 | 863 | |||
Net income | 1,624 | 1,619 | 1,619 | 5 | |||||||
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 treasury stock | (702) | ||||||||||
Repurchase of treasury stock (held and retired) | (731) | (731) | |||||||||
Acquisitions of noncontrolling interests | (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 | ||||||||||
Balance at Feb. 28, 2019 | 35,430 | $ 118 | 8,143 | 29,364 | (3,064) | 6 | 34,567 | 863 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 35,430 | 118 | 8,143 | 29,364 | (3,064) | 6 | 34,567 | 863 | |||
Cumulative effect of adoption new accounting standard | $ 36,770 | $ 118 | 8,214 | 30,761 | (3,221) | 9 | 35,881 | 889 | |||
Balance (in shares) at Aug. 29, 2019 | 1,182 | 1,182 | |||||||||
Balance at Aug. 29, 2019 | $ 36,770 | $ 118 | 8,214 | 30,761 | (3,221) | 9 | 35,881 | 889 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 36,500 | $ 119 | 8,428 | 31,218 | (3,271) | 6 | 36,500 | 0 | |||
Net income | 506 | 491 | 491 | 15 | |||||||
Other comprehensive income (loss), net | (3) | (3) | (3) | ||||||||
Stock issued under stock plans (in shares) | 3 | ||||||||||
Stock issued under stock plans | 32 | $ 1 | 31 | 32 | |||||||
Stock-based compensation expense | 72 | 72 | 72 | ||||||||
Repurchase and retirement of stock (in shares) | 0 | ||||||||||
Repurchase and retirement of stock | $ 0 | (6) | (34) | ||||||||
Repurchase of treasury stock | (50) | ||||||||||
Repurchase of treasury stock (held and retired) | (90) | (90) | |||||||||
Acquisitions of noncontrolling interests | (781) | 123 | 123 | (904) | |||||||
Conversion and repurchase of convertible notes | (6) | (6) | (6) | ||||||||
Balance (in shares) at Nov. 28, 2019 | 1,185 | ||||||||||
Balance at Nov. 28, 2019 | $ 36,500 | $ 119 | 8,428 | 31,218 | (3,271) | 6 | 36,500 | 0 | |||
Balance (in shares) at Aug. 29, 2019 | 1,182 | 1,182 | |||||||||
Balance at Aug. 29, 2019 | $ 36,770 | $ 118 | 8,214 | 30,761 | (3,221) | 9 | 35,881 | 889 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 36,770 | $ 119 | 8,725 | 31,602 | (3,414) | (9) | 37,023 | 0 | |||
Other comprehensive income (loss), net | (18) | ||||||||||
Conversion and repurchase of convertible notes | $ (9) | ||||||||||
Balance (in shares) at Feb. 27, 2020 | 1,191 | 1,191 | |||||||||
Balance at Feb. 27, 2020 | $ 37,023 | $ 119 | 8,725 | 31,602 | (3,414) | (9) | 37,023 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 36,500 | $ 119 | 8,428 | 31,218 | (3,271) | 6 | 36,500 | 0 | |||
Balance (in shares) at Nov. 28, 2019 | 1,185 | ||||||||||
Balance at Nov. 28, 2019 | 36,500 | $ 119 | 8,428 | 31,218 | (3,271) | 6 | 36,500 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | 36,500 | $ 119 | 8,725 | 31,602 | (3,414) | (9) | 37,023 | 0 | |||
Net income | 405 | 405 | 405 | 0 | |||||||
Other comprehensive income (loss), net | (15) | (15) | (15) | ||||||||
Stock issued under stock plans (in shares) | 7 | ||||||||||
Stock issued under stock plans | 121 | $ 0 | 121 | 121 | |||||||
Stock-based compensation expense | 85 | 85 | 85 | ||||||||
Repurchase and retirement of stock (in shares) | (1) | ||||||||||
Repurchase and retirement of stock | $ 0 | (4) | (21) | ||||||||
Repurchase of treasury stock | (45) | ||||||||||
Repurchase of treasury stock (held and retired) | (70) | (70) | |||||||||
Settlement of capped calls | 0 | 98 | (98) | 0 | |||||||
Conversion and repurchase of convertible notes | $ (3) | (3) | (3) | ||||||||
Balance (in shares) at Feb. 27, 2020 | 1,191 | 1,191 | |||||||||
Balance at Feb. 27, 2020 | $ 37,023 | $ 119 | 8,725 | 31,602 | (3,414) | (9) | 37,023 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adoption new accounting standard | $ 37,023 | $ 119 | $ 8,725 | $ 31,602 | $ (3,414) | $ (9) | $ 37,023 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Feb. 27, 2020 | Feb. 28, 2019 | |
Cash flows from operating activities | ||
Net income | $ 915 | $ 4,921 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense and amortization of intangible assets | 2,661 | 2,648 |
Amortization of debt discount and other costs | 16 | 29 |
Stock-based compensation | 157 | 118 |
(Gain) loss on debt prepayments, repurchases, and conversions | (42) | 69 |
Change in operating assets and liabilities | ||
Receivables | 104 | 1,202 |
Inventories | (90) | (800) |
Accounts payable and accrued expenses | 257 | (326) |
Deferred income taxes, net | 38 | 320 |
Other | (4) | 64 |
Net cash provided by operating activities | 4,012 | 8,245 |
Cash flows from investing activities | ||
Expenditures for property, plant, and equipment | (3,999) | (5,349) |
Purchases of available-for-sale securities | (566) | (2,566) |
Proceeds from sales of available-for-sale securities | 1,059 | 160 |
Proceeds from maturities of available-for-sale securities | 523 | 391 |
Proceeds from government incentives | 105 | 455 |
Other | (21) | (10) |
Net cash provided by (used for) investing activities | (2,899) | (6,919) |
Cash flows from financing activities | ||
Repayments of debt | (1,676) | (705) |
Acquisition of noncontrolling interest in IMFT | (744) | 0 |
Payments to acquire treasury stock | (159) | (2,568) |
Payments on equipment purchase contracts | (29) | (37) |
Proceeds from issuance of debt | 1,250 | 1,800 |
Other | 151 | 27 |
Net cash provided by (used for) financing activities | (1,207) | (1,483) |
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | (14) | (1) |
Net decrease in cash, cash equivalents, and restricted cash | (108) | (158) |
Cash, cash equivalents, and restricted cash at beginning of period | 7,279 | 6,587 |
Cash, cash equivalents, and restricted cash at end of period | $ 7,171 | $ 6,429 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 27, 2020 | |
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 29, 2019, 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 year 2020 contains 53 weeks and the fourth quarter of 2020 will contain 14 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 29, 2019. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Feb. 27, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies For a discussion of our significant accounting policies, see “Part I – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended August 29, 2019. Except for the significant accounting policy associated with leases as discussed below, there have been no material changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended August 29, 2019. Leases In the first quarter of 2020, we elected new accounting policies in connection with the adoption of ASC 842 – Leases . We do not recognize a right-of-use asset or lease liability for leases with a term of 12 months or less. For real estate and gas plant leases entered into after adoption, we do not separate lease and non-lease components. Sublease income is presented within lease expense. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Feb. 27, 2020 | |
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 VIE 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 27, 2020 and August 29, 2019, we had net property, plant, and equipment of $44 million and $50 million, respectively, and finance lease obligations of $41 million and $47 million, respectively. Consolidated VIE IMFT : Through the date we acquired Intel’s noncontrolling interest in IMFT, IMFT was a VIE because all of its costs were passed to us and its other member, Intel, through product purchase agreements and because IMFT was dependent upon us or Intel for additional cash requirements. The primary activities of IMFT were driven by the constant introduction of product and process technology. Because we performed a significant majority of the technology development we had the power to direct its key activities. We consolidated IMFT due to this power and our obligation to absorb losses and the right to receive benefits from IMFT that could have been potentially significant to it. On October 31, 2019, we acquired Intel’s interest in IMFT at which time IMFT, now known as MTU, became a wholly-owned subsidiary. (See “Equity – Noncontrolling Interest in Subsidiary” note.) |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 6 Months Ended |
Feb. 27, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 – Leases (as amended, “ASC 842”), 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 lease liability, measured at the present value of lease payments. We adopted ASC 842 in the first quarter of 2020 under the modified retrospective method and elected to not recast prior periods. We elected the practical expedients available under the transition guidance, including but not limited to, not reassessing past lease accounting or using hindsight to evaluate lease term. In addition, we elected to not separate lease and non-lease components for real estate or gas plant leases. As a result of adopting ASC 842, we recognized $567 million for operating lease liabilities and right-of-use assets and reclassified an additional $66 million of other balances to right-of-use assets to conform to the new presentation requirements of ASC 842. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Feb. 27, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards 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, which was August 31, 2018, by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. We do not anticipate the adoption of this ASU will have a material impact 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 early |
Cash and Investments
Cash and Investments | 6 Months Ended |
Feb. 27, 2020 | |
Investments [Abstract] | |
Cash and Investments | Cash and Investments Substantially all of our marketable debt and equity investments were classified as available-for-sale as of the dates noted below. Cash and equivalents and the fair values of our available-for-sale investments, which approximated amortized costs, were as follows: February 27, 2020 August 29, 2019 As of Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 3,146 $ — $ — $ 3,146 $ 2,388 $ — $ — $ 2,388 Level 1 (2) Money market funds 1,894 — — 1,894 3,418 — — 3,418 Level 2 (3) Certificates of deposits 2,019 9 7 2,035 1,292 13 1 1,306 Corporate bonds — 239 270 509 — 550 689 1,239 Government securities 17 67 189 273 36 149 232 417 Asset-backed securities — 34 120 154 — 67 242 309 Commercial paper 42 14 — 56 18 24 — 42 7,118 $ 363 $ 586 $ 8,067 7,152 $ 803 $ 1,164 $ 9,119 Restricted cash (4) 53 127 Cash, cash equivalents, and restricted cash $ 7,171 $ 7,279 (1) The maturities of long-term marketable investments range from one year 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 27, 2020 or August 29, 2019. (4) Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned. The restrictions lapse upon achieving certain performance conditions. Restricted cash as of August 29, 2019 also included amounts related to the corporate reorganization proceedings of MMJ. Gross realized gains and losses from sales of available-for-sale securities were not significant for any period presented. As of February 27, 2020, 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. 27, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables As of February 27, August 29, Trade receivables $ 2,695 $ 2,778 Income and other taxes 186 242 Other 168 175 $ 3,049 $ 3,195 |
Inventories
Inventories | 6 Months Ended |
Feb. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of February 27, August 29, Finished goods $ 802 $ 757 Work in process 3,756 3,825 Raw materials and supplies 650 536 $ 5,208 $ 5,118 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Feb. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment As of February 27, August 29, Land $ 352 $ 352 Buildings 11,682 10,931 Equipment (1) 46,577 44,051 Construction in progress (2) 2,119 1,700 Software 811 790 61,541 57,824 Accumulated depreciation (31,894) (29,584) $ 29,647 $ 28,240 (1) Included costs related to equipment not placed into service of $1.38 billion as of February 27, 2020 and $2.33 billion as of August 29, 2019. (2) Included building-related construction, tool installation, and software costs for assets not placed into service. We periodically assess the estimated useful lives of our property, plant, and equipment. Based on our assessment of planned technology node transitions, capital spending, and re-use rates, we revised the estimated useful lives of the existing equipment in our NAND wafer fabrication facilities and our research and development (“R&D”) facilities from five years to seven years as of the beginning of the first quarter of 2020. As a result, we estimate the reduction in non-cash depreciation expense for these assets benefited operating income and net income by approximately $125 million and diluted earnings per share by approximately $0.11 for the second quarter of 2020, and benefited operating income and net income by approximately $200 million and diluted earnings per share by approximately $0.17 for the first six months of 2020. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Feb. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill February 27, 2020 August 29, 2019 As of Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Product and process technology $ 595 $ (263) $ 583 $ (243) Goodwill 1,228 N/A 1,228 N/A In the first six months of 2020 and 2019, we capitalized $30 million and $64 million, respectively, for product and process technology with weighted-average useful lives of 11 years and 8 years, respectively. Expected amortization expense is $39 million for the remainder of 2020, $65 million for 2021, $53 million for 2022, $47 million for 2023, and $41 million for 2024. |
Leases
Leases | 6 Months Ended |
Feb. 27, 2020 | |
Leases [Abstract] | |
Leases | Leases We have finance and operating leases through which we acquire or utilize equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our selling, general, and administrative (“SG&A”) functions. Our finance leases consist primarily of equipment used in our manufacturing operations and gas or other supply agreements that are deemed to be embedded leases in which we effectively control the underlying gas plants or other assets used to fulfill the supply agreements. Our operating leases consist primarily of offices, other facilities, and land used in SG&A, R&D, and certain of our manufacturing operations. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 30 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease of a right-of-use asset. Our assessment includes determining whether we or the supplier control the assets used to fulfill the supply or service agreement by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. In determining the lease term, we assess whether we are reasonably certain to exercise options to renew or terminate a lease, and when or whether we would exercise an option to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires exercising judgment to determine the discount rate, which we base on interest rates for similar borrowings issued by entities with credit ratings similar to ours at the time of issuance. Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant in any period presented. The components of lease expenses are presented below: Quarter ended Six months ended February 27, February 27, Finance lease cost Amortization of right-of-use asset $ 39 $ 79 Interest on lease liability 5 11 Operating lease cost 24 48 $ 68 $ 138 Other information related to our leases were as follows: Six months ended February 27, Cash flows used for operating activities Finance leases $ 12 Operating leases (1) (10) Cash flows used for financing activities Finance leases 129 Noncash acquisitions of right of use assets Operating leases 24 (1) Included $48 million of reimbursements received for tenant improvements. As of February 27, Weighted-average remaining lease term (in years) Finance leases 4.1 Operating leases 7.2 Weighted-average discount rate Finance leases 4.95 % Operating leases 2.67 % Maturities of lease liabilities existing as of February 27, 2020 were as follows: For the year ending Operating Leases Finance Leases Remainder of 2020 $ 33 $ 100 2021 68 109 2022 66 76 2023 62 50 2024 53 40 2025 and thereafter 442 213 Less imputed interest (126) (92) $ 598 $ 496 The table above excludes lease liabilities for those leases that have been signed but have not yet commenced. As of February 27, 2020, we had such lease liabilities relating to 1) operating lease payment obligations of $157 million for the initial 10-year lease term for a building, which may, at our election, be terminated after 3 years or extended for an additional 10 years, and 2) finance lease obligations of $907 million over a weighted-average period of 15 years for gas supply arrangements deemed to be embedded leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use. As of August 29, 2019, prior to adopting ASC 842, future minimum operating lease commitments with an initial term in excess of one year were $54 million for 2020, $64 million for 2021, $63 million for 2022, $59 million for 2023, and $53 million for 2024 and $459 million in 2025 and thereafter. |
Leases | Leases We have finance and operating leases through which we acquire or utilize equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our selling, general, and administrative (“SG&A”) functions. Our finance leases consist primarily of equipment used in our manufacturing operations and gas or other supply agreements that are deemed to be embedded leases in which we effectively control the underlying gas plants or other assets used to fulfill the supply agreements. Our operating leases consist primarily of offices, other facilities, and land used in SG&A, R&D, and certain of our manufacturing operations. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 30 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease of a right-of-use asset. Our assessment includes determining whether we or the supplier control the assets used to fulfill the supply or service agreement by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. In determining the lease term, we assess whether we are reasonably certain to exercise options to renew or terminate a lease, and when or whether we would exercise an option to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires exercising judgment to determine the discount rate, which we base on interest rates for similar borrowings issued by entities with credit ratings similar to ours at the time of issuance. Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant in any period presented. The components of lease expenses are presented below: Quarter ended Six months ended February 27, February 27, Finance lease cost Amortization of right-of-use asset $ 39 $ 79 Interest on lease liability 5 11 Operating lease cost 24 48 $ 68 $ 138 Other information related to our leases were as follows: Six months ended February 27, Cash flows used for operating activities Finance leases $ 12 Operating leases (1) (10) Cash flows used for financing activities Finance leases 129 Noncash acquisitions of right of use assets Operating leases 24 (1) Included $48 million of reimbursements received for tenant improvements. As of February 27, Weighted-average remaining lease term (in years) Finance leases 4.1 Operating leases 7.2 Weighted-average discount rate Finance leases 4.95 % Operating leases 2.67 % Maturities of lease liabilities existing as of February 27, 2020 were as follows: For the year ending Operating Leases Finance Leases Remainder of 2020 $ 33 $ 100 2021 68 109 2022 66 76 2023 62 50 2024 53 40 2025 and thereafter 442 213 Less imputed interest (126) (92) $ 598 $ 496 The table above excludes lease liabilities for those leases that have been signed but have not yet commenced. As of February 27, 2020, we had such lease liabilities relating to 1) operating lease payment obligations of $157 million for the initial 10-year lease term for a building, which may, at our election, be terminated after 3 years or extended for an additional 10 years, and 2) finance lease obligations of $907 million over a weighted-average period of 15 years for gas supply arrangements deemed to be embedded leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use. As of August 29, 2019, prior to adopting ASC 842, future minimum operating lease commitments with an initial term in excess of one year were $54 million for 2020, $64 million for 2021, $63 million for 2022, $59 million for 2023, and $53 million for 2024 and $459 million in 2025 and thereafter. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Feb. 27, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses As of February 27, August 29, Accounts payable $ 2,054 $ 1,677 Property, plant, and equipment 2,057 1,782 Salaries, wages, and benefits 566 695 Income and other taxes 209 309 Other 191 163 $ 5,077 $ 4,626 |
Debt
Debt | 6 Months Ended |
Feb. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt February 27, 2020 August 29, 2019 Net Carrying Amount Net Carrying Amount As of Stated Rate Effective Rate Current Long-Term Total Current Long-Term Total Finance lease obligations N/A 4.95 % $ 153 $ 343 $ 496 $ 223 $ 368 $ 591 2024 Notes 4.64 % 4.76 % — 597 597 — 597 597 2024 Term Loan A 2.90 % 2.95 % 62 1,186 1,248 — — — 2026 Notes 4.98 % 5.07 % — 497 497 — 497 497 2027 Notes 4.19 % 4.27 % — 895 895 — 895 895 2029 Notes 5.33 % 5.40 % — 696 696 — 696 696 2030 Notes 4.66 % 4.73 % — 845 845 — 845 845 2032D Notes (1) 3.13 % 6.33 % — 129 129 — 127 127 2033F Notes (1) 2.13 % 2.13 % 19 — 19 196 — 196 MMJ Creditor Payments N/A — % 3 — 3 198 — 198 IMFT Member Debt N/A N/A — — — 693 — 693 2025 Notes 5.50 % 5.56 % — — — — 516 516 $ 237 $ 5,188 $ 5,425 $ 1,310 $ 4,541 $ 5,851 (1) Since the closing price of our common stock exceeded 130% of the conversion price per share for at least 20 trading days in the 30 trading day period ended on December 31, 2019, these notes are convertible by the holders through the calendar quarter ended March 31, 2020. Additionally, the closing price of our common stock also exceeded the thresholds for the calendar quarter ended March 31, 2020; therefore, these notes are convertible by the holders at any time through June 30, 2020. IMFT Member Debt In connection with our purchase of Intel’s noncontrolling interest in IMFT on October 31, 2019, we extinguished the remaining IMFT Member Debt as a component of the cash consideration paid to Intel for their interest in IMFT and recognized a non-operating gain of $72 million for the difference between the $505 million of cash consideration allocated to the extinguishment of IMFT Member Debt and its $577 million carrying value. (See “Equity – Noncontrolling Interest in Subsidiary” note for the cash consideration allocated to the repurchase of noncontrolling interest.) Prior to our acquisition of Intel’s interests in IMFT, IMFT repaid Intel $116 million of IMFT Member Debt in the first quarter of fiscal 2020. Convertible Senior Notes As of February 27, 2020, the $50.58 trading price of our common stock was higher than the conversion prices of our convertible notes and, as a result, the aggregate conversion value of $752 million exceeded the aggregate principal amount of $150 million by $602 million. Credit Facility Our credit facility provides for our 2024 Term Loan A and a committed revolving credit facility. The 2024 Term Loan A and revolving credit facility generally bear interest at rates equal to LIBOR plus 1.25% to 2.00%, depending on our corporate credit rating and leverage ratio. Under the terms of the credit facility, we must maintain ratios, calculated as of the last day of each fiscal quarter, of total indebtedness to adjusted EBITDA and adjusted EBITDA to net interest expense. 2024 Term Loan A : On October 30, 2019, we drew the $1.25 billion available under our 2024 Term Loan A credit facility. Principal payments are due annually in an amount equal to 5.0% of the initial principal amount with the balance due at maturity in October 2024. The 2024 Term Loan A facility bears interest at a rate equal to LIBOR plus 1.25% based on our current corporate credit rating and leverage ratio. Revolving Credit Facility : Subsequent to the second quarter of 2020, on March 13, 2020, we drew the $2.50 billion available under our revolving credit facility. Borrowings under the revolving credit facility are scheduled to mature on July 3, 2023 and we may repay amounts borrowed any time without penalty. The revolving credit facility bears interest at a rate equal to LIBOR plus 1.25% based on our current corporate credit rating and leverage ratio. Debt Activity The table below presents the effects of issuances, prepayments, and conversions of debt in the first six months of 2020. When we receive a notice of conversion for any of our convertible notes and elect to settle in cash any amount 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. Six months ended February 27, 2020 Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Issuances 2024 Term Loan A $ 1,250 $ 1,248 $ 1,248 $ — $ — Prepayments 2025 Notes (519) (516) (534) — (18) IMFT Member Debt (693) (693) (621) — 72 Settled conversions 2033F Notes (46) (180) (198) (6) (12) Conversions not settled 2033F Notes — 3 — (3) — $ (8) $ (138) $ (105) $ (9) $ 42 |
Contingencies
Contingencies | 6 Months Ended |
Feb. 27, 2020 | |
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 August 12, 2014, MLC Intellectual Property, LLC filed a patent infringement action against Micron in the United States District Court for the Northern District of California. The complaint alleges that Micron infringes a single U.S. patent and seeks damages, attorneys’ fees, and costs. 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 August 31, 2018, Micron was served with a complaint filed by IMS in Shenzhen Intermediate People’s Court in Guangdong Province, China. On November 12, 2019, IMS filed an amended complaint in the same court. The amended 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 and costs of 21 million Chinese yuan. 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 for each complaint 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 revenue. 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., (“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 at that time, 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. On April 17, 2014, Micron and Micron B.V. filed a notice of appeal with the German Appeals Court challenging the District Court’s decision. After opening briefs, the Appeals Court held a hearing on the matter on July 9, 2015, and thereafter appointed two independent experts to perform an evaluation of Dr. Jaffé’s claims that the amount Micron paid for Qimonda was less than fair market value. On January 25, 2018, the court-appointed experts issued their report concluding that the amount paid by Micron was within an acceptable fair-value range. The Appeals Court held a subsequent hearing on April 30, 2019, and on May 28, 2019, the Appeals Court remanded the case to the experts for supplemental expert opinion. 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 purported to be on behalf of a nationwide class of indirect purchasers of DRAM products. On September 3, 2019, the District Court granted Micron’s motion to dismiss and allowed plaintiffs the opportunity to file a consolidated, amended complaint. On October 28, 2019, the plaintiffs filed a consolidated amended complaint that purports to be on behalf of a nationwide class of indirect purchasers of DRAM products. The amended complaint asserts claims based on alleged price-fixing of DRAM products under federal and state law during the period from June 1, 2016 to at least February 1, 2018, and seeks 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. On October 28, 2019, the plaintiffs filed a consolidated complaint. The consolidated complaint purports 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 through at least 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, the Ontario Superior Court of Justice, 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 separate cases were joined, and a consolidated amended complaint was filed on June 15, 2019. The consolidated amended complaint alleges that defendants committed securities fraud through misrepresentations and omissions about purported anticompetitive behavior in the DRAM industry and seeks compensatory and punitive damages, fees, interest, costs, and other appropriate relief. On October 2, 2019, the parties submitted a joint stipulation to dismiss the complaint. The Court approved the stipulation and dismissed the complaint on October 3, 2019. On March 5, 2019, a derivative complaint was filed by a shareholder in the U.S. District Court for the District of Delaware, based on similar allegations to the securities fraud cases, 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 complaint seeks damages, fees, interest, costs, and other appropriate relief. Similar shareholder derivative complaints were subsequently filed in the U.S. District Court for the District of Delaware and the U.S. District Court for the District of Idaho. On November 20, 2019, the plaintiff in the second action filed in the U.S. District Court for the District of Delaware voluntarily dismissed his complaint. On November 21, 2019, the plaintiff voluntarily dismissed his complaint that was filed in the U.S. District Court for the District of Idaho. 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. On June 13, 2019, current Micron employee Chris Manning filed a putative class action lawsuit on behalf of Micron employees subject to the Idaho Wage Claim Act who earned a performance-based bonus after the conclusion of fiscal year 2018 whose performance rating was calculated based upon a mandatory percentage distribution range of performance ratings. On behalf of himself and the putative class, Manning asserts claims for violation of the Idaho Wage Claim Act, breach of contract, breach of the covenant of good faith and fair dealing, and fraud. 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. 27, 2020 | |
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 through open-market purchases, block trades, privately-negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase authorization does not obligate us to acquire any common stock and is subject to market conditions and our ongoing determination of the best use of available cash. In the second quarter and first six months of 2020, we repurchased 0.8 million shares of our common stock for $44 million, and 1.9 million shares of our common stock for $94 million, respectively. In the second quarter and first six months of 2019, we repurchased 20.2 million shares of our common stock for $702 million, and 62.6 million shares of our common stock for $2.51 billion, respectively. Through February 27, 2020, we had repurchased an aggregate of $2.76 billion under the authorization. The shares were recorded as treasury stock. Capped calls : In the second quarter of 2020, we share-settled certain capped calls upon their expiration and received an aggregate of 1.7 million shares of our common stock, equal to a value of $98 million. Noncontrolling Interest in Subsidiary February 27, 2020 August 29, 2019 As of Balance Percentage Balance Percentage IMFT $ — — % $ 889 49 % On October 31, 2019, we purchased Intel’s noncontrolling interest in IMFT, now known as MTU, and IMFT Member Debt for $1.25 billion. In connection therewith, we recognized a $160 million adjustment to equity for the difference between the $744 million of cash consideration allocated to Intel’s noncontrolling interest and its $904 million carrying value. (See “Debt” note for the cash consideration allocated to, and extinguishment of, IMFT Member Debt.) Pursuant to the terms of the IMFT wafer supply agreement, Intel received supply from MTU from November 2019 through March 6, 2020, at a volume equal to approximately 50% of their volume from IMFT in the six |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The estimated fair values and carrying values of our outstanding debt instruments (excluding the carrying value of equity components of our convertible notes), were as follows: February 27, 2020 August 29, 2019 As of Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ Creditor Payments $ 5,190 $ 4,781 $ 5,194 $ 4,937 Convertible notes 776 148 852 323 The fair values of our convertible notes in the table above were determined based on Level 2 inputs, including the trading price of our convertible notes when available, our stock price, and interest rates based on similar debt issued by parties with credit ratings similar to ours. The fair values of our other debt instruments were estimated based on Level 2 inputs, including discounted cash flows, the trading price of our notes when available, and interest rates based on similar debt issued by parties with credit ratings similar to ours. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Feb. 27, 2020 | |
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 27, 2020 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 586 $ — $ (16) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,240 1 (3) Convertible notes settlement obligation (3) — (4) 1 (7) $ 1 $ (23) As of August 29, 2019 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 146 $ 1 $ — Derivative instruments without hedge accounting designation Non-designated currency hedges 1,871 1 (9) Convertible notes settlement obligation (3) — (179) 1 (188) $ 2 $ (188) (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 were not significant as of February 27, 2020 and were 4 million shares of our common stock as of August 29, 2019. Derivative Instruments with Hedge Accounting Designation We utilize currency forward contracts that generally mature within 13 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 and manufacturing costs. We recognized losses of $17 million and $14 million in the second quarter and first six months of 2020, respectively, and gains of $7 million and losses of $6 million in the second quarter and first six months of 2019, 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 significant in the second quarters or first six months of 2020 or 2019. 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 significant. 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 losses of $1 million and gains of $4 million in the second quarter and first six months of 2020, respectively, and gains of $11 million in the second quarter of 2019 and losses of $11 million in the first quarter of 2019. 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 $12 million in the first six months of 2020, and losses of $82 million and $66 million in the second quarter and first six months of 2019, respectively, in other non-operating income (expense), net for the changes in fair value of the derivative settlement obligations. The gains recognized in the second quarter of 2020 were not significant. |
Equity Plans
Equity Plans | 6 Months Ended |
Feb. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans As of February 27, 2020, 92 million shares of our common stock were available for future awards under our equity plans. Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”) Restricted Stock Award activity is summarized as follows: Quarter ended Six months ended February 27, February 28, February 27, February 28, Restricted stock award shares granted — — 8 6 Weighted-average grant-date fair value per share $ 54.71 $ 37.01 $ 46.38 $ 39.83 Employee Stock Purchase Plan (“ESPP”) For the six-month ESPP period ended January 2020 and January 2019, we issued 2 million and 1 million shares, respectively, at a per share price of $38.16 and $32.50, respectively. Assumptions used in the Black-Scholes option valuation model for ESPP grants for the periods below were as follows: Quarter ended February 27, February 28, Weighted-average grant-date fair value per share 14.43 10.92 Average expected life in years 0.5 0.5 Weighted-average expected volatility 43 % 47 % Weighted-average risk-free interest rate 1.5 % 2.5 % Expected dividend yield 0 % 0 % Stock-based Compensation Expense Quarter ended Six months ended February 27, February 28, February 27, February 28, Stock-based compensation expense by caption Cost of goods sold $ 37 $ 23 $ 68 $ 49 Selling, general, and administrative 26 18 48 37 Research and development 22 16 41 32 $ 85 $ 57 $ 157 $ 118 Stock-based compensation expense by type of award Restricted stock awards $ 70 $ 42 $ 127 $ 83 ESPP 11 8 19 16 Stock options 4 7 11 19 $ 85 $ 57 $ 157 $ 118 The income tax benefits related to share-based compensation were $53 million and $79 million for the second quarter and first six months of 2020, respectively, and $30 million and $53 million for the second quarter and first six months of 2019, respectively. As of February 27, 2020, $656 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 2024, resulting in a weighted-average period of 1.4 years. |
Revenue and Contract Liabilitie
Revenue and Contract Liabilities | 6 Months Ended |
Feb. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Liabilities | Revenue and Contract Liabilities Revenue by technology is presented in the table below. (See “Segment and Other Information” note for disclosure of disaggregated revenue by market segments.) Quarter ended Six months ended February 27, February 28, February 27, February 28, DRAM $ 3,083 $ 4,151 $ 6,552 $ 10,044 NAND 1,514 1,387 2,936 3,047 Other (primarily 3D XPoint memory and NOR) 200 297 453 657 $ 4,797 $ 5,835 $ 9,941 $ 13,748 Beginning in 2020, revenues for MCPs and SSDs, which contain both DRAM and NAND, are disaggregated into DRAM and NAND based on the relative values of each component. The three and six months ended February 28, 2019 in the table above have been conformed to current period presentation. Our contract liabilities from customer advances are for advance payments received from customers to secure product in future periods. Other contract liabilities consist of amounts received in advance of satisfying performance obligations. These balances are reported 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 significant in any period presented. As of February 27, 2020, our future performance obligations beyond one year were not significant. Contract liabilities were as follows: As of February 27, August 29, Contract liabilities from customer advances $ 39 $ 61 Other contract liabilities 36 69 $ 75 $ 130 Revenue recognized during the first six months of 2020 from the beginning balance as of August 29, 2019 included $70 million from meeting performance obligations of other contract liabilities and shipments against customer advances. Contract liabilities from customer advances also decreased $22 million due to the return of unutilized customer advances upon expiration of the contract. As of February 27, 2020, other current liabilities included $436 million for estimates of consideration payable to customers, including estimates for pricing adjustments and returns. |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 6 Months Ended |
Feb. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net Quarter ended Six months ended February 27, February 28, February 27, February 28, Restructure and asset impairments $ 10 $ 51 $ 6 $ 84 Other 1 46 2 49 $ 11 $ 97 $ 8 $ 133 |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 6 Months Ended |
Feb. 27, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net Quarter ended Six months ended February 27, February 28, February 27, February 28, Gain (loss) on debt prepayments, repurchases, and conversions $ — $ (83) $ 42 $ (69) Loss from changes in currency exchange rates (2) (3) (4) (8) Other 1 2 7 2 $ (1) $ (84) $ 45 $ (75) |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax (provision) benefit consisted of the following: Quarter ended Six months ended February 27, February 28, February 27, February 28, Income tax (provision) benefit, excluding items below $ 1 $ (216) $ (30) $ (594) Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW (22) (78) (46) (130) Repatriation tax, net of adjustments related to uncertain tax positions — 14 — (33) $ (21) $ (280) $ (76) $ (757) The decrease in our income tax provision in the second quarter and first six months of 2020 as compared to the corresponding periods of 2019 was due primarily to reductions in profit before tax and the foreign minimum tax. As of February 27, 2020, gross unrecognized tax benefits were $383 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 significant for any period presented. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Feb. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarter ended Six months ended February 27, February 28, February 27, February 28, Net income attributable to Micron – Basic $ 405 $ 1,619 $ 896 $ 4,912 Assumed conversion of debt — (2) (4) (2) Net income attributable to Micron – Diluted $ 405 $ 1,617 $ 892 $ 4,910 Weighted-average common shares outstanding – Basic 1,111 1,114 1,109 1,123 Dilutive effect of equity plans and convertible notes 22 27 22 34 Weighted-average common shares outstanding – Diluted 1,133 1,141 1,131 1,157 Earnings per share Basic $ 0.37 $ 1.45 $ 0.81 $ 4.37 Diluted 0.36 1.42 0.79 4.24 Antidilutive potential common stock shares that could dilute basic earnings per share in the future were 1 million and 4 million for the second quarter and first six months of 2020, respectively, and 11 million and 9 million for the second quarter and first six months of 2019, respectively. |
Segment and Other Information
Segment and Other Information | 6 Months Ended |
Feb. 27, 2020 | |
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 client, cloud server, enterprise, graphics, and networking markets and sales of certain 3D XPoint products. Mobile Business Unit (“MBU”) : Includes memory products sold into smartphone and other mobile-device markets. Storage Business Unit (“SBU”) : Includes SSDs and component-level solutions sold into enterprise and cloud, client, and consumer storage markets, other discrete storage products sold in component and wafer form to the removable storage market, and sales of certain 3D XPoint products. 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 27, February 28, February 27, February 28, Revenue CNBU $ 1,967 $ 2,382 $ 3,946 $ 5,986 MBU 1,258 1,611 2,715 3,823 SBU 870 1,022 1,838 2,165 EBU 696 799 1,430 1,732 All Other 6 21 12 42 $ 4,797 $ 5,835 $ 9,941 $ 13,748 Operating income (loss) CNBU $ 283 $ 1,160 $ 684 $ 3,371 MBU 183 707 478 1,910 SBU (2) (20) (219) 60 EBU 79 262 192 649 All Other (1) 1 1 7 542 2,110 1,136 5,997 Unallocated Stock-based compensation (85) (57) (157) (118) Restructure and asset impairments (10) (51) (6) (81) Employee severance — (17) (1) (37) Start-up and preproduction costs — (15) — (23) Other (7) (13) (14) (22) (102) (153) (178) (281) Operating income $ 440 $ 1,957 $ 958 $ 5,716 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Feb. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the accounts of Micron and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended August 29, 2019, except for changes related to recently adopted accounting standards. See “Recently Adopted Accounting Standards” note. |
Comparability of Prior Year Financial Data | 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 year 2020 contains 53 weeks and the fourth quarter of 2020 will contain 14 weeks. All period references are to our fiscal periods unless otherwise indicated. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 27, 2020 | |
Accounting Policies [Abstract] | |
Leases | Leases In the first quarter of 2020, we elected new accounting policies in connection with the adoption of ASC 842 – Leases . We do not recognize a right-of-use asset or lease liability for leases with a term of 12 months or less. For real estate and gas plant leases entered into after adoption, we do not separate lease and non-lease components. Sublease income is presented within lease expense. |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 6 Months Ended |
Feb. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | We have interests in entities that are VIEs. If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding, financing, and other applicable agreements and circumstances. Our assessments of whether we are the primary beneficiary of our VIEs require significant assumptions and judgments. |
Cash and Investments (Tables)
Cash and Investments (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
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: February 27, 2020 August 29, 2019 As of Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 3,146 $ — $ — $ 3,146 $ 2,388 $ — $ — $ 2,388 Level 1 (2) Money market funds 1,894 — — 1,894 3,418 — — 3,418 Level 2 (3) Certificates of deposits 2,019 9 7 2,035 1,292 13 1 1,306 Corporate bonds — 239 270 509 — 550 689 1,239 Government securities 17 67 189 273 36 149 232 417 Asset-backed securities — 34 120 154 — 67 242 309 Commercial paper 42 14 — 56 18 24 — 42 7,118 $ 363 $ 586 $ 8,067 7,152 $ 803 $ 1,164 $ 9,119 Restricted cash (4) 53 127 Cash, cash equivalents, and restricted cash $ 7,171 $ 7,279 (1) The maturities of long-term marketable investments range from one year 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 27, 2020 or August 29, 2019. (4) Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned. The restrictions lapse upon achieving certain performance conditions. Restricted cash as of August 29, 2019 also included amounts related to the corporate reorganization proceedings of MMJ. |
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: February 27, 2020 August 29, 2019 As of Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash and Equivalents Short-term Investments Long-term Marketable Investments (1) Total Fair Value Cash $ 3,146 $ — $ — $ 3,146 $ 2,388 $ — $ — $ 2,388 Level 1 (2) Money market funds 1,894 — — 1,894 3,418 — — 3,418 Level 2 (3) Certificates of deposits 2,019 9 7 2,035 1,292 13 1 1,306 Corporate bonds — 239 270 509 — 550 689 1,239 Government securities 17 67 189 273 36 149 232 417 Asset-backed securities — 34 120 154 — 67 242 309 Commercial paper 42 14 — 56 18 24 — 42 7,118 $ 363 $ 586 $ 8,067 7,152 $ 803 $ 1,164 $ 9,119 Restricted cash (4) 53 127 Cash, cash equivalents, and restricted cash $ 7,171 $ 7,279 (1) The maturities of long-term marketable investments range from one year 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 27, 2020 or August 29, 2019. (4) Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned. The restrictions lapse upon achieving certain performance conditions. Restricted cash as of August 29, 2019 also included amounts related to the corporate reorganization proceedings of MMJ. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | As of February 27, August 29, Trade receivables $ 2,695 $ 2,778 Income and other taxes 186 242 Other 168 175 $ 3,049 $ 3,195 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of February 27, August 29, Finished goods $ 802 $ 757 Work in process 3,756 3,825 Raw materials and supplies 650 536 $ 5,208 $ 5,118 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | As of February 27, August 29, Land $ 352 $ 352 Buildings 11,682 10,931 Equipment (1) 46,577 44,051 Construction in progress (2) 2,119 1,700 Software 811 790 61,541 57,824 Accumulated depreciation (31,894) (29,584) $ 29,647 $ 28,240 (1) Included costs related to equipment not placed into service of $1.38 billion as of February 27, 2020 and $2.33 billion as of August 29, 2019. (2) Included building-related construction, tool installation, and software costs for assets not placed into service. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | February 27, 2020 August 29, 2019 As of Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Product and process technology $ 595 $ (263) $ 583 $ (243) Goodwill 1,228 N/A 1,228 N/A |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant in any period presented. The components of lease expenses are presented below: Quarter ended Six months ended February 27, February 27, Finance lease cost Amortization of right-of-use asset $ 39 $ 79 Interest on lease liability 5 11 Operating lease cost 24 48 $ 68 $ 138 |
Schedule of Other Lease Information | Other information related to our leases were as follows: Six months ended February 27, Cash flows used for operating activities Finance leases $ 12 Operating leases (1) (10) Cash flows used for financing activities Finance leases 129 Noncash acquisitions of right of use assets Operating leases 24 (1) Included $48 million of reimbursements received for tenant improvements. As of February 27, Weighted-average remaining lease term (in years) Finance leases 4.1 Operating leases 7.2 Weighted-average discount rate Finance leases 4.95 % Operating leases 2.67 % |
Schedule of Operating Lease Maturities | Maturities of lease liabilities existing as of February 27, 2020 were as follows: For the year ending Operating Leases Finance Leases Remainder of 2020 $ 33 $ 100 2021 68 109 2022 66 76 2023 62 50 2024 53 40 2025 and thereafter 442 213 Less imputed interest (126) (92) $ 598 $ 496 |
Schedule of Finance Lease Maturities | Maturities of lease liabilities existing as of February 27, 2020 were as follows: For the year ending Operating Leases Finance Leases Remainder of 2020 $ 33 $ 100 2021 68 109 2022 66 76 2023 62 50 2024 53 40 2025 and thereafter 442 213 Less imputed interest (126) (92) $ 598 $ 496 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable And Accrued Expenses | As of February 27, August 29, Accounts payable $ 2,054 $ 1,677 Property, plant, and equipment 2,057 1,782 Salaries, wages, and benefits 566 695 Income and other taxes 209 309 Other 191 163 $ 5,077 $ 4,626 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | February 27, 2020 August 29, 2019 Net Carrying Amount Net Carrying Amount As of Stated Rate Effective Rate Current Long-Term Total Current Long-Term Total Finance lease obligations N/A 4.95 % $ 153 $ 343 $ 496 $ 223 $ 368 $ 591 2024 Notes 4.64 % 4.76 % — 597 597 — 597 597 2024 Term Loan A 2.90 % 2.95 % 62 1,186 1,248 — — — 2026 Notes 4.98 % 5.07 % — 497 497 — 497 497 2027 Notes 4.19 % 4.27 % — 895 895 — 895 895 2029 Notes 5.33 % 5.40 % — 696 696 — 696 696 2030 Notes 4.66 % 4.73 % — 845 845 — 845 845 2032D Notes (1) 3.13 % 6.33 % — 129 129 — 127 127 2033F Notes (1) 2.13 % 2.13 % 19 — 19 196 — 196 MMJ Creditor Payments N/A — % 3 — 3 198 — 198 IMFT Member Debt N/A N/A — — — 693 — 693 2025 Notes 5.50 % 5.56 % — — — — 516 516 $ 237 $ 5,188 $ 5,425 $ 1,310 $ 4,541 $ 5,851 (1) Since the closing price of our common stock exceeded 130% of the conversion price per share for at least 20 trading days in the 30 trading day period ended on December 31, 2019, these notes are convertible by the holders through the calendar quarter ended March 31, 2020. Additionally, the closing price of our common stock also exceeded the thresholds for the calendar quarter ended March 31, 2020; therefore, these notes are convertible by the holders at any time through June 30, 2020. |
Debt Issuances, Prepayments, and Conversions | Six months ended February 27, 2020 Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Issuances 2024 Term Loan A $ 1,250 $ 1,248 $ 1,248 $ — $ — Prepayments 2025 Notes (519) (516) (534) — (18) IMFT Member Debt (693) (693) (621) — 72 Settled conversions 2033F Notes (46) (180) (198) (6) (12) Conversions not settled 2033F Notes — 3 — (3) — $ (8) $ (138) $ (105) $ (9) $ 42 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Equity [Abstract] | |
Schedule Of Noncontrolling Interests In Subsidiary | February 27, 2020 August 29, 2019 As of Balance Percentage Balance Percentage IMFT $ — — % $ 889 49 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated fair value and carrying value of debt instruments | February 27, 2020 August 29, 2019 As of Fair Value Carrying Value Fair Value Carrying Value Notes and MMJ Creditor Payments $ 5,190 $ 4,781 $ 5,194 $ 4,937 Convertible notes 776 148 852 323 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
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 27, 2020 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 586 $ — $ (16) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,240 1 (3) Convertible notes settlement obligation (3) — (4) 1 (7) $ 1 $ (23) As of August 29, 2019 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 146 $ 1 $ — Derivative instruments without hedge accounting designation Non-designated currency hedges 1,871 1 (9) Convertible notes settlement obligation (3) — (179) 1 (188) $ 2 $ (188) (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 were not significant as of February 27, 2020 and were 4 million shares of our common stock as of August 29, 2019. |
Equity Plans (Tables)
Equity Plans (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards Activity | Quarter ended Six months ended February 27, February 28, February 27, February 28, Restricted stock award shares granted — — 8 6 Weighted-average grant-date fair value per share $ 54.71 $ 37.01 $ 46.38 $ 39.83 |
Schedule of Employee Stock Purchase Plan Valuation Assumptions | Quarter ended February 27, February 28, Weighted-average grant-date fair value per share 14.43 10.92 Average expected life in years 0.5 0.5 Weighted-average expected volatility 43 % 47 % Weighted-average risk-free interest rate 1.5 % 2.5 % Expected dividend yield 0 % 0 % |
Stock-based Compensation Expense by Caption | Quarter ended Six months ended February 27, February 28, February 27, February 28, Stock-based compensation expense by caption Cost of goods sold $ 37 $ 23 $ 68 $ 49 Selling, general, and administrative 26 18 48 37 Research and development 22 16 41 32 $ 85 $ 57 $ 157 $ 118 Stock-based compensation expense by type of award Restricted stock awards $ 70 $ 42 $ 127 $ 83 ESPP 11 8 19 16 Stock options 4 7 11 19 $ 85 $ 57 $ 157 $ 118 |
Revenue and Contract Liabilit_2
Revenue and Contract Liabilities (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Quarter ended Six months ended February 27, February 28, February 27, February 28, DRAM $ 3,083 $ 4,151 $ 6,552 $ 10,044 NAND 1,514 1,387 2,936 3,047 Other (primarily 3D XPoint memory and NOR) 200 297 453 657 $ 4,797 $ 5,835 $ 9,941 $ 13,748 Beginning in 2020, revenues for MCPs and SSDs, which contain both DRAM and NAND, are disaggregated into DRAM and NAND based on the relative values of each component. The three and six months ended February 28, 2019 in the table above have been conformed to current period presentation. |
Schedule of Product Sales | Quarter ended Six months ended February 27, February 28, February 27, February 28, DRAM $ 3,083 $ 4,151 $ 6,552 $ 10,044 NAND 1,514 1,387 2,936 3,047 Other (primarily 3D XPoint memory and NOR) 200 297 453 657 $ 4,797 $ 5,835 $ 9,941 $ 13,748 Beginning in 2020, revenues for MCPs and SSDs, which contain both DRAM and NAND, are disaggregated into DRAM and NAND based on the relative values of each component. The three and six months ended February 28, 2019 in the table above have been conformed to current period presentation. |
Contract Liabilities | As of February 27, August 29, Contract liabilities from customer advances $ 39 $ 61 Other contract liabilities 36 69 $ 75 $ 130 |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Quarter ended Six months ended February 27, February 28, February 27, February 28, Restructure and asset impairments $ 10 $ 51 $ 6 $ 84 Other 1 46 2 49 $ 11 $ 97 $ 8 $ 133 |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense), Net (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense), Net | Quarter ended Six months ended February 27, February 28, February 27, February 28, Gain (loss) on debt prepayments, repurchases, and conversions $ — $ (83) $ 42 $ (69) Loss from changes in currency exchange rates (2) (3) (4) (8) Other 1 2 7 2 $ (1) $ (84) $ 45 $ (75) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Provision) Benefit | Our income tax (provision) benefit consisted of the following: Quarter ended Six months ended February 27, February 28, February 27, February 28, Income tax (provision) benefit, excluding items below $ 1 $ (216) $ (30) $ (594) Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW (22) (78) (46) (130) Repatriation tax, net of adjustments related to uncertain tax positions — 14 — (33) $ (21) $ (280) $ (76) $ (757) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Quarter ended Six months ended February 27, February 28, February 27, February 28, Net income attributable to Micron – Basic $ 405 $ 1,619 $ 896 $ 4,912 Assumed conversion of debt — (2) (4) (2) Net income attributable to Micron – Diluted $ 405 $ 1,617 $ 892 $ 4,910 Weighted-average common shares outstanding – Basic 1,111 1,114 1,109 1,123 Dilutive effect of equity plans and convertible notes 22 27 22 34 Weighted-average common shares outstanding – Diluted 1,133 1,141 1,131 1,157 Earnings per share Basic $ 0.37 $ 1.45 $ 0.81 $ 4.37 Diluted 0.36 1.42 0.79 4.24 |
Segment and Other Information (
Segment and Other Information (Tables) | 6 Months Ended |
Feb. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Results by Segment | Quarter ended Six months ended February 27, February 28, February 27, February 28, Revenue CNBU $ 1,967 $ 2,382 $ 3,946 $ 5,986 MBU 1,258 1,611 2,715 3,823 SBU 870 1,022 1,838 2,165 EBU 696 799 1,430 1,732 All Other 6 21 12 42 $ 4,797 $ 5,835 $ 9,941 $ 13,748 Operating income (loss) CNBU $ 283 $ 1,160 $ 684 $ 3,371 MBU 183 707 478 1,910 SBU (2) (20) (219) 60 EBU 79 262 192 649 All Other (1) 1 1 7 542 2,110 1,136 5,997 Unallocated Stock-based compensation (85) (57) (157) (118) Restructure and asset impairments (10) (51) (6) (81) Employee severance — (17) (1) (37) Start-up and preproduction costs — (15) — (23) Other (7) (13) (14) (22) (102) (153) (178) (281) Operating income $ 440 $ 1,957 $ 958 $ 5,716 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
PTI Xi'an (Nonconsolidated VIE) Assets | $ 49,648 | $ 48,887 |
PTI Xi'an (Nonconsolidated VIE) Liabilities | 12,527 | 12,019 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
PTI Xi'an (Nonconsolidated VIE) Assets | 44 | 50 |
PTI Xi'an (Nonconsolidated VIE) Liabilities | $ 41 | $ 47 |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | Aug. 30, 2019 | Feb. 27, 2020 | Aug. 29, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease Liability | $ 598 | ||
Operating lease right-of-use assets | $ 605 | $ 0 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease Liability | $ 567 | ||
Operating lease right-of-use assets | 567 | ||
Prior period, existing balances reclassified to right-of-use assets | $ 66 |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Feb. 27, 2020 | Aug. 29, 2019 | Feb. 28, 2019 | Aug. 30, 2018 | ||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 7,118 | $ 7,152 | |||
Short-term Investments | 363 | 803 | |||
Long-term Marketable Investments | [1] | 586 | 1,164 | ||
Total Fair Value | 8,067 | 9,119 | |||
Restricted cash | [2] | 53 | 127 | ||
Cash, cash equivalents, and restricted cash | 7,171 | 7,279 | $ 6,429 | $ 6,587 | |
Value of available-for-sale debt securities in a continuous unrealized loss position 12 months or longer | $ 0 | ||||
Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
General maturities of long-term marketable securities (in years) | 1 year | ||||
Maximum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
General maturities of long-term marketable securities (in years) | 4 years | ||||
Cash | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 3,146 | 2,388 | |||
Short-term Investments | 0 | 0 | |||
Long-term Marketable Investments | 0 | 0 | |||
Total Fair Value | 3,146 | 2,388 | |||
Money market funds | Level 1 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [3] | 1,894 | 3,418 | ||
Short-term Investments | [3] | 0 | 0 | ||
Long-term Marketable Investments | [1],[3] | 0 | 0 | ||
Total Fair Value | [3] | 1,894 | 3,418 | ||
Certificates of deposits | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 2,019 | 1,292 | ||
Short-term Investments | [4] | 9 | 13 | ||
Long-term Marketable Investments | [1],[4] | 7 | 1 | ||
Total Fair Value | [4] | 2,035 | 1,306 | ||
Corporate bonds | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 0 | 0 | ||
Short-term Investments | [4] | 239 | 550 | ||
Long-term Marketable Investments | [1],[4] | 270 | 689 | ||
Total Fair Value | [4] | 509 | 1,239 | ||
Government securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 17 | 36 | ||
Short-term Investments | [4] | 67 | 149 | ||
Long-term Marketable Investments | [1],[4] | 189 | 232 | ||
Total Fair Value | [4] | 273 | 417 | ||
Asset-backed securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 0 | 0 | ||
Short-term Investments | [4] | 34 | 67 | ||
Long-term Marketable Investments | [1],[4] | 120 | 242 | ||
Total Fair Value | [4] | 154 | 309 | ||
Commercial paper | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 42 | 18 | ||
Short-term Investments | [4] | 14 | 24 | ||
Long-term Marketable Investments | [1],[4] | 0 | 0 | ||
Total Fair Value | [4] | $ 56 | $ 42 | ||
[1] | The maturities of long-term marketable investments range from one year to four years. | ||||
[2] | Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned. The restrictions lapse upon achieving certain performance conditions. Restricted cash as of August 29, 2019 also included amounts related to the corporate reorganization proceedings of MMJ. | ||||
[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 27, 2020 or August 29, 2019. |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
Receivables [Abstract] | ||
Trade receivables | $ 2,695 | $ 2,778 |
Income and other taxes | 186 | 242 |
Other | 168 | 175 |
Receivables | $ 3,049 | $ 3,195 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Finished goods | $ 802 | $ 757 |
Work in process | 3,756 | 3,825 |
Raw materials and supplies | 650 | 536 |
Inventories | $ 5,208 | $ 5,118 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | $ 61,541 | $ 57,824 | |
Accumulated depreciation | (31,894) | (29,584) | |
Property, plant, and equipment, net | 29,647 | 28,240 | |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | 352 | 352 | |
Buildings | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | 11,682 | 10,931 | |
Equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | [1] | 46,577 | 44,051 |
Equipment not placed into service | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | 1,380 | 2,330 | |
Construction in progress | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | [2] | 2,119 | 1,700 |
Software | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, plant, and equipment, gross | $ 811 | $ 790 | |
[1] | Included costs related to equipment not placed into service of $1.38 billion as of February 27, 2020 and $2.33 billion as of August 29, 2019. | ||
[2] | Included building-related construction, tool installation, and software costs for assets not placed into service. |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment Change in Useful Life (Details) - Service Life - NAND and R&D Equipment - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Feb. 27, 2020 | Feb. 27, 2020 | Aug. 29, 2019 | |
Change in Accounting Estimate [Line Items] | |||
Useful Life of Property, Plant, and Equipment | 7 years | 5 years | |
Benefit to Operating Results from change in PP&E Useful Life | $ 125 | $ 200 | |
Benefit to Diluted Earnings Per Share from change in PP&E Useful Life | $ 0.11 | $ 0.17 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Aug. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross Amount, Product and process technology | $ 595 | $ 583 | |
Accumulated Amortization, Product and process technology | (263) | (243) | |
Goodwill | 1,228 | $ 1,228 | |
Amortizing assets capitalized during the period | $ 30 | $ 64 | |
Useful lives of assets placed into service | 11 years | 8 years | |
Annual amortization expense for intangible assets [Abstract] | |||
Remainder of 2020 | $ 39 | ||
2021 | 65 | ||
2022 | 53 | ||
2023 | 47 | ||
2024 | $ 41 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 27, 2020 | Aug. 29, 2019 | ||
Components of Lease Expense | ||||
Amortization of right-of-use asset | $ 39 | $ 79 | ||
Interest on lease liability | 5 | 11 | ||
Operating lease cost | 24 | 48 | ||
Total lease cost | $ 68 | 138 | ||
Cash flows used for operating activities | ||||
Finance leases | 12 | |||
Operating lease | [1] | (10) | ||
Cash flows used for financing activities | ||||
Finance leases | 129 | |||
Operating leases, non-cash acquisitions of right of use assets | 24 | |||
Payments for (Proceeds from) Tenant Allowance | $ 48 | |||
Lessee, Finance Lease, Description [Abstract] | ||||
Finance leases, Weighted-average remaining lease term (in years) | 4 years 1 month 6 days | 4 years 1 month 6 days | ||
Finance leases, Weighted-average discount rate | 4.95% | 4.95% | ||
Lessee, Operating Lease, Description [Abstract] | ||||
Operating leases, Weighted-average remaining lease term (in years) | 7 years 2 months 12 days | 7 years 2 months 12 days | ||
Operating leases, Weighted-average discount rate | 2.67% | 2.67% | ||
Operating Lease Maturities | ||||
Remainder of 2020 | $ 33 | $ 33 | ||
2021 | 68 | 68 | ||
2022 | 66 | 66 | ||
2023 | 62 | 62 | ||
2024 | 53 | 53 | ||
2025 and thereafter | 442 | 442 | ||
Less imputed interest | (126) | (126) | ||
Operating Lease Liability | 598 | 598 | ||
Finance Lease Maturities | ||||
Remainder of 2020 | 100 | 100 | ||
2021 | 109 | 109 | ||
2022 | 76 | 76 | ||
2023 | 50 | 50 | ||
2024 | 40 | 40 | ||
2025 and thereafter | 213 | 213 | ||
Less imputed interest | (92) | (92) | ||
Finance Lease Liability | 496 | 496 | $ 591 | |
Operating Leases Not yet Commenced | ||||
Payment obligations | $ 157 | $ 157 | ||
Lease term | 10 years | 10 years | ||
Minimum lease period | 3 years | |||
Renewal term | 10 years | 10 years | ||
Finance Lease Not yet Commenced | ||||
Payment obligations | $ 907 | $ 907 | ||
Noncancelable Operating Lease Commitments | ||||
2020 | 54 | |||
2021 | 64 | |||
2022 | 63 | |||
2023 | 59 | |||
2024 | 53 | |||
2025 and thereafter | $ 459 | |||
Weighted Average | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 15 years | 15 years | ||
Finance Lease Not yet Commenced | ||||
Lease term | 15 years | 15 years | ||
Real Estate | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 1 year | 1 year | ||
Real Estate | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 10 years | 10 years | ||
Land | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 1 year | 1 year | ||
Land | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 30 years | 30 years | ||
[1] | Included $48 million of reimbursements received for tenant improvements. |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 2,054 | $ 1,677 |
Property, plant, and equipment | 2,057 | 1,782 |
Salaries, wages, and benefits | 566 | 695 |
Income and other taxes | 209 | 309 |
Other | 191 | 163 |
Total accounts payable and accrued expenses | $ 5,077 | $ 4,626 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) $ / shares in Units, $ in Millions | Mar. 13, 2020USD ($) | Oct. 30, 2019USD ($) | Feb. 27, 2020USD ($)d$ / shares | Feb. 28, 2019USD ($) | Aug. 29, 2019USD ($) | |
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Finance Lease Effective Rate (in ten thousandths) | 4.95% | |||||
Current Finance Lease Obligations | $ 153 | $ 223 | ||||
Long-Term Finance Lease Obligations | 343 | 368 | ||||
Total Finance Lease Obligations | 496 | 591 | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Debt, Current, Total | 237 | 1,310 | ||||
Long-term Debt and Lease Obligation, Total | 5,188 | 4,541 | ||||
Total Debt and Finance Lease Obligation | $ 5,425 | 5,851 | ||||
Convertible Senior Notes [Abstract] | ||||||
Share Price | $ / shares | $ 50.58 | |||||
Credit Facility [Abstract] | ||||||
Proceeds from issuance of debt | $ 1,250 | $ 1,800 | ||||
Corporate Bonds | 2024 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 4.64% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 4.76% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 597 | 597 | ||||
Long-term Debt, Total | $ 597 | 597 | ||||
Corporate Bonds | 2026 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 4.98% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 5.07% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 497 | 497 | ||||
Long-term Debt, Total | $ 497 | 497 | ||||
Corporate Bonds | 2027 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 4.19% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 4.27% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 895 | 895 | ||||
Long-term Debt, Total | $ 895 | 895 | ||||
Corporate Bonds | 2029 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 5.33% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 5.40% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 696 | 696 | ||||
Long-term Debt, Total | $ 696 | 696 | ||||
Corporate Bonds | 2030 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 4.66% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 4.73% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 845 | 845 | ||||
Long-term Debt, Total | $ 845 | 845 | ||||
Corporate Bonds | 2025 Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 5.50% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 5.56% | |||||
Current Portion of Long-term Debt | $ 0 | 0 | ||||
Noncurrent Long-Term Debt | 0 | 516 | ||||
Long-term Debt, Total | $ 0 | 516 | ||||
Other Notes Payable | 2024 Term Loan A | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 2.90% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 2.95% | |||||
Current Portion of Long-term Debt | $ 62 | 0 | ||||
Noncurrent Long-Term Debt | 1,186 | 0 | ||||
Long-term Debt, Total | $ 1,248 | 0 | ||||
Credit Facility [Abstract] | ||||||
Proceeds from issuance of debt | $ 1,250 | |||||
Percentage of original principal to be repaid annually | 5.00% | |||||
Margin on variable rate financing (in hundredths) | 1.25% | |||||
Other Notes Payable | 2024 Term Loan A | LIBOR | Minimum | ||||||
Credit Facility [Abstract] | ||||||
Margin on variable rate financing (in hundredths) | 1.25% | |||||
Other Notes Payable | 2024 Term Loan A | LIBOR | Maximum | ||||||
Credit Facility [Abstract] | ||||||
Margin on variable rate financing (in hundredths) | 2.00% | |||||
Other Notes Payable | Revolving credit facility | Subsequent Event | ||||||
Credit Facility [Abstract] | ||||||
Proceeds from issuance of debt | $ 2,500 | |||||
Margin on variable rate financing (in hundredths) | 1.25% | |||||
Other Notes Payable | Revolving credit facility | LIBOR | Minimum | ||||||
Credit Facility [Abstract] | ||||||
Margin on variable rate financing (in hundredths) | 1.25% | |||||
Other Notes Payable | Revolving credit facility | LIBOR | Maximum | ||||||
Credit Facility [Abstract] | ||||||
Margin on variable rate financing (in hundredths) | 2.00% | |||||
Convertible Debt | ||||||
Convertible Senior Notes [Abstract] | ||||||
Conversion rights, threshold percentage of applicable conversion price (in hundredths) | 130.00% | |||||
Conversion rights, minimum number of trading days (in days) | d | 20 | |||||
Conversion rights, consecutive trading period (in days) | d | 30 | |||||
Conversion value of convertible notes | $ 752 | |||||
Principal amount of convertible notes | 150 | |||||
Conversion value in excess of principal | $ 602 | |||||
Convertible Debt | 2032D Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 3.13% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 6.33% | |||||
Current Portion of Long-term Debt | $ 0 | [1] | 0 | |||
Noncurrent Long-Term Debt | 129 | [1] | 127 | |||
Long-term Debt, Total | $ 129 | 127 | ||||
Convertible Debt | 2033F Notes | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Stated Rate (in ten thousandths) | 2.13% | |||||
Long-Term Debt Effective Rate (in ten thousandths) | 2.13% | |||||
Current Portion of Long-term Debt | $ 19 | [1] | 196 | |||
Noncurrent Long-Term Debt | 0 | [1] | 0 | |||
Long-term Debt, Total | 19 | 196 | ||||
Convertible Debt | IMFT Member Debt | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Current Portion of Long-term Debt | 0 | 693 | ||||
Noncurrent Long-Term Debt | 0 | 0 | ||||
Long-term Debt, Total | $ 0 | 693 | ||||
Reorganization obligation | ||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||
Long-Term Debt Effective Rate (in ten thousandths) | 0.00% | |||||
Current Portion of Long-term Debt | $ 3 | 198 | ||||
Noncurrent Long-Term Debt | 0 | 0 | ||||
Long-term Debt, Total | $ 3 | $ 198 | ||||
[1] | Since the closing price of our common stock exceeded 130% of the conversion price per share for at least 20 trading days in the 30 trading day period ended on December 31, 2019, these notes are convertible by the holders through the calendar quarter ended March 31, 2020. Additionally, the closing price of our common stock also exceeded the thresholds for the calendar quarter ended March 31, 2020; therefore, these notes are convertible by the holders at any time through June 30, 2020. |
Debt - Debt Activity (Details)
Debt - Debt Activity (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Oct. 30, 2019 | Feb. 27, 2020 | Nov. 28, 2019 | Feb. 28, 2019 | Nov. 29, 2018 | Feb. 27, 2020 | Feb. 28, 2019 |
Extinguishment of Debt [Line Items] | ||||||||
Increase (Decrease) Principal | $ (8) | |||||||
Increase (Decrease) in Carrying Value | (138) | |||||||
Increase (Decrease) in Cash | (105) | |||||||
Decrease in Equity | $ (3) | $ (6) | $ (336) | $ (36) | (9) | |||
Gain (Loss) on debt prepayments, repurchases, and conversions | $ 0 | $ (83) | 42 | $ (69) | ||||
Corporate Bonds | 2025 Notes | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Decrease in Principal | (519) | |||||||
Increase (Decrease) in Carrying Value | (516) | |||||||
(Decrease) in Cash - Prepayments and Conversions | (534) | |||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | $ (18) | |||||||
Convertible Debt | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Derivative, Term of Contract (in consecutive trading days) | 20 days | |||||||
Convertible Debt | IMFT Member Debt | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Decrease in Principal | $ (577) | $ (116) | $ (693) | |||||
Increase (Decrease) in Carrying Value | (693) | |||||||
(Decrease) in Cash - Prepayments and Conversions | $ (505) | $ (116) | (621) | |||||
Gain (Loss) on debt prepayments, repurchases, and conversions | $ 72 | 72 | ||||||
Convertible Debt | 2033F Notes | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Decrease in Principal | (46) | |||||||
Increase (Decrease) in Carrying Value | (180) | |||||||
(Decrease) in Cash - Prepayments and Conversions | (198) | |||||||
Decrease in Equity | (6) | |||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | (12) | |||||||
Convertible Debt | 2033F Notes | Conversions not settled | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Decrease in Principal | 0 | |||||||
Increase (Decrease) in Carrying Value | 3 | |||||||
(Decrease) in Cash - Prepayments and Conversions | 0 | |||||||
Decrease in Equity | (3) | |||||||
Gain (Loss) on debt prepayments, repurchases, and conversions | 0 | |||||||
Other Notes Payable | 2024 Term Loan A | ||||||||
Extinguishment of Debt [Line Items] | ||||||||
Increase (Decrease) Principal | 1,250 | |||||||
Increase (Decrease) in Carrying Value | 1,248 | |||||||
Increase in Cash - Issuances | $ 1,248 |
Contingencies (Details)
Contingencies (Details) - 6 months ended Feb. 27, 2020 ¥ in Millions, $ in Millions | CNY (¥)lawsuitpatent | USD ($)lawsuitpatent |
Pending Litigation | Qimonda AG Inotera Share Purchase Proceedings | ||
Loss Contingencies [Line Items] | ||
Percentage of total Inotera shares subject to litigation (in hundredths) | 18.00% | 18.00% |
Loss contingency, judgment under appeal | $ | $ 1 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Pending Litigation | Micron vs United Microelectronics Corp and Fujian Jinhua Integrated Circuit Co | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 1 | 1 |
Pending Litigation | Employee Class Action vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | MLC Intellectual Property, LLC vs Micron | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Elm 3DS Innovations, LLC vs Micron | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 13 | 13 |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Innovative Memory Solutions, Inc. vs Micron-Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 8 | 8 |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Innovative Memory Solutions, Inc. vs Micron-Complaint 3 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 21 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. vs Micron-Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 98 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. vs Micron-Complaint 2 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 98 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | United Microelectronics Corporation vs Micron-Complaint 1 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | United Microelectronics Corporation vs Micron-Complaint 2 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Loss Contingency, Pending Claims, Number | 1 | 1 |
Patent Matters | Pending Litigation | Fuzhou Court Preliminary Injunction | ||
Loss Contingencies [Line Items] | ||
Percent of annualized revenue derived from impacted products | 1.00% | 1.00% |
Patent Matters | Withdrawn Litigation | United Microelectronics Corporation vs Micron-Complaint 3 | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 1 | 1 |
Damages sought on alleged patent infringement | ¥ | ¥ 90 | |
Loss Contingency, Claims Withdrawn, Number | 1 | 1 |
Antitrust Matters | Pending Litigation | Consolidated Amended Indirect Purchasers CA | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 1 | 1 |
Antitrust Matters | Pending Litigation | Consolidated Amended Direct Purchasers CA | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 1 | 1 |
Antitrust Matters | Pending Litigation | DRAM Purchasers Canada vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 6 | 6 |
Antitrust Matters | Joined Litigation | Initial indirect DRAM Purchasers United States vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 1 | 1 |
Antitrust Matters | Joined Litigation | Subsequent indirect DRAM Purchasers United States vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 2 | 2 |
Antitrust Matters | Joined Litigation | Initial direct DRAM Purchasers United States vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 1 | 1 |
Antitrust Matters | Joined Litigation | Subsequent direct DRAM Purchasers United States vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 4 | 4 |
Securities Matters | Joined Litigation | Original Shareholder Action New York vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 1 | 1 |
Securities Matters | Joined Litigation | Subsequent Shareholder Claims New York vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Joined, Number | 2 | 2 |
Securities Matters | Dismissed Litigation | Consolidated Shareholder Class Action New York Court vs Micron | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Dismissed, Number | 1 | 1 |
Securities Matters | Dismissed Litigation | Shareholder Class Action Delaware Court vs Micron. | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Claims Dismissed, Number | 1 | 1 |
Equity - Common Stock Repurchas
Equity - Common Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Payments for Repurchase of Common Stock | $ 159 | $ 2,568 | |||
Repurchases Authorized by the BOD | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common Stock Repurchase, Authorized Amount | $ 10,000 | $ 10,000 | $ 10,000 | ||
Treasury Shares Repurchased (in shares) | 0.8 | 20.2 | 1.9 | 62.6 | |
Payments for Repurchase of Common Stock | $ 44 | $ 702 | $ 94 | $ 2,510 | $ 2,760 |
Equity - Capped Calls (Details)
Equity - Capped Calls (Details) shares in Millions, $ in Millions | 3 Months Ended |
Feb. 27, 2020USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Settlement of capped calls | $ 0 |
Treasury Stock | |
Equity, Class of Treasury Stock [Line Items] | |
Settlement of capped calls | $ 98 |
Call Option | Long | Treasury Stock | |
Equity, Class of Treasury Stock [Line Items] | |
Treasury Shares Repurchased (in shares) | shares | 1.7 |
Settlement of capped calls | $ 98 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interest in Subsidiary (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Oct. 30, 2019 | Feb. 27, 2020 | Nov. 28, 2019 | Feb. 28, 2019 | Mar. 06, 2020 | Feb. 27, 2020 | Feb. 28, 2019 | Aug. 29, 2019 |
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Noncontrolling Interest Balance | $ 0 | $ 0 | $ 889 | ||||||
Payments to Purchase Noncontrolling Interests | 744 | $ 0 | |||||||
Decrease in Noncontrolling Interest from Purchase of Interests in IMFT | $ 781 | $ 12 | |||||||
Revenue | 4,797 | 5,835 | 9,941 | 13,748 | |||||
Noncontrolling Interests in Subsidiary | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Decrease in Noncontrolling Interest from Purchase of Interests in IMFT | $ 904 | 12 | |||||||
IM Flash Technologies, LLC | Intel | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Revenue | $ 158 | $ 172 | $ 347 | ||||||
IM Flash Technologies, LLC | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Noncontrolling Interest Balance | $ 0 | $ 0 | $ 889 | ||||||
Noncontrolling Interest Percentage (in hundredths) | 0.00% | 0.00% | 49.00% | ||||||
Payments to Noncontrolling Interests for Purchase of Minority Interest and Repayment of Debt | $ 1,250 | ||||||||
Payments to Purchase Noncontrolling Interests | 744 | ||||||||
Decrease in Noncontrolling Interest from Purchase of Interests in IMFT, Effect on APIC Before Tax | 160 | ||||||||
IM Flash Technologies, LLC | Subsequent Event | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Joint Venture Agreement Terms, Intel percentage of lookback supply from MTU (IMFT) | 50.00% | ||||||||
Joint Venture Agreement Terms, Supply Lookback Period | 6 months | ||||||||
IM Flash Technologies, LLC | Noncontrolling Interests in Subsidiary | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||||||
Decrease in Noncontrolling Interest from Purchase of Interests in IMFT | $ 904 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair and Carrying Value of Debt (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Aug. 29, 2019 |
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Carrying Value of Debt | $ 5,425 | $ 5,851 |
Fair Value | Notes and MMJ Creditor Payments | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Fair Value of Notes and MMJ Creditor Payments (level 2) | 5,190 | 5,194 |
Fair Value | Convertible Notes | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Fair Value of Convertible notes (level 2) | 776 | 852 |
Carrying Value | Notes and MMJ Creditor Payments | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Carrying Value of Debt | 4,781 | 4,937 |
Carrying Value | Convertible Notes | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Carrying Value of Debt | $ 148 | $ 323 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts and Fair Values (Details) shares in Millions, $ in Millions | 6 Months Ended | ||
Feb. 27, 2020USD ($) | Aug. 29, 2019USD ($)shares | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | $ 1 | $ 2 |
Fair Value of Liabilities | [2] | $ (23) | (188) |
Designated hedging instruments | |||
Derivative, Fair Value, Net [Abstract] | |||
General maturity of currency forward contracts (in months) | 13 months | ||
Designated hedging instruments | Cash flow hedges | Currency forward | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Currency forwards | $ 586 | 146 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 0 | 1 |
Fair Value of Liabilities | [2] | (16) | 0 |
Not designated hedging instruments | |||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 1 | 1 |
Fair Value of Liabilities | [2] | $ (7) | (188) |
General maturity of currency forward contracts (in months) | 3 months | ||
Not designated hedging instruments | Currency forward | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Currency forwards | $ 1,240 | 1,871 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 1 | 1 |
Fair Value of Liabilities | [2] | (3) | $ (9) |
Not designated hedging instruments | Convertible notes settlement obligation | |||
Notional Disclosures [Abstract] | |||
Gross Notional Amount, Convertible notes settlement obligation (in shares) | shares | 4 | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 0 | $ 0 |
Fair Value of Liabilities | [2],[3] | $ (4) | $ (179) |
[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 were not significant as of February 27, 2020 and were 4 million shares of our common stock as of August 29, 2019. |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 27, 2020 | Feb. 28, 2019 | Nov. 29, 2018 | Feb. 27, 2020 | Feb. 28, 2019 | |
Designated hedging instruments | Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) recognized in other comprehensive income, effective portion | $ (17) | $ 7 | $ (14) | $ (6) | |
Currency forward | Not designated hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) for derivative instruments without hedge accounting designation | $ (1) | 11 | $ (11) | 4 | |
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) | $ (12) | $ (66) |
Equity Plans - Share Based Awar
Equity Plans - Share Based Awards (Details) - $ / shares shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Feb. 27, 2020 | Jan. 31, 2020 | Feb. 28, 2019 | Jan. 31, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for future awards (in shares) | 92 | 92 | 92 | |||||
Restricted stock awards | ||||||||
Restricted Stock Awards activity | ||||||||
Restricted stock award shares granted (in shares) | 0 | 0 | 8 | 6 | ||||
Weighted-average grant-date fair value per share (in dollars per share) | $ 54.71 | $ 37.01 | $ 46.38 | $ 39.83 | ||||
Employee stock purchase plan (ESPP) | ||||||||
Restricted Stock Awards activity | ||||||||
Weighted-average grant-date fair value per share (in dollars per share) | $ 14.43 | $ 10.92 | ||||||
ESPP Shares Issued | 2 | 1 | ||||||
ESPP Shares Issued, Price Per Share | $ 38.16 | $ 32.50 | ||||||
Average expected life in years | 6 months | 6 months | ||||||
Weighted-average expected volatility | 43.00% | 47.00% | ||||||
Weighted-average risk free interest rate | 1.50% | 2.50% | ||||||
Expected dividend yield | 0.00% | 0.00% |
Equity Plans - Stock-based comp
Equity Plans - Stock-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 85 | $ 57 | $ 157 | $ 118 |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Tax benefit from share-based compensation expense | 53 | 30 | 79 | 53 |
Total unrecognized compensation costs related to non-vested awards expected to be recognized | 656 | $ 656 | ||
Weighted average period that unrecognized compensation costs are expected to be recognized (in years) | 1 year 4 months 24 days | |||
Restricted stock awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 70 | 42 | $ 127 | 83 |
Employee stock purchase plan (ESPP) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 11 | 8 | 19 | 16 |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 4 | 7 | 11 | 19 |
Cost of goods sold | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 37 | 23 | 68 | 49 |
Selling, general, and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 26 | 18 | 48 | 37 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 22 | $ 16 | $ 41 | $ 32 |
Revenue and Contract Liabilit_3
Revenue and Contract Liabilities-Product Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,797 | $ 5,835 | $ 9,941 | $ 13,748 |
DRAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,083 | 4,151 | 6,552 | 10,044 |
NAND | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,514 | 1,387 | 2,936 | 3,047 |
Other (primarily 3D XPoint memory and NOR) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 200 | $ 297 | $ 453 | $ 657 |
Revenue and Contract Liabilit_4
Revenue and Contract Liabilities-Contract Liabilities and Customer Payables (Details) - USD ($) $ in Millions | 6 Months Ended | |
Feb. 27, 2020 | Aug. 29, 2019 | |
Contract Liabilities | ||
Contract liabilities | $ 75 | $ 130 |
Revenue recognized from beginning balance | 70 | |
Unutilized customer advances returned to customer | 22 | |
Consideration Payable to Customers | ||
Estimated consideration payable to customers for pricing adjustments and returns | 436 | |
Contract liabilities from customer advances (product) | ||
Contract Liabilities | ||
Contract liabilities | 39 | 61 |
Other contract liabilities | ||
Contract Liabilities | ||
Contract liabilities | $ 36 | $ 69 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Other Income and Expenses [Abstract] | ||||
Restructure and asset impairments | $ 10 | $ 51 | $ 6 | $ 84 |
Other | 1 | 46 | 2 | 49 |
Other operating (income) expense, net | $ 11 | $ 97 | $ 8 | $ 133 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Gain (loss) on debt prepayments, repurchases, and conversions | $ 0 | $ (83) | $ 42 | $ (69) |
Loss from changes in currency exchange rates | (2) | (3) | (4) | (8) |
Other | 1 | 2 | 7 | 2 |
Other non-operating income (expense), net | $ (1) | $ (84) | $ 45 | $ (75) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (provision) benefit, excluding items below | $ 1 | $ (216) | $ (30) | $ (594) |
Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW | (22) | (78) | (46) | (130) |
Repatriation Tax, net of adjustments related to uncertain tax positions | 0 | 14 | 0 | (33) |
Income tax (provision) benefit | (21) | $ (280) | (76) | $ (757) |
Unrecognized Tax Benefits | $ 383 | $ 383 |
Income Taxes Income Taxes - Tax
Income Taxes Income Taxes - Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Feb. 28, 2019 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit from incentive arrangements | $ 244 | $ 671 |
Tax benefit per diluted share from incentive arrangements | $ 0.21 | $ 0.58 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020 | Feb. 28, 2019 | Feb. 27, 2020 | Feb. 28, 2019 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income attributable to Micron - Basic | $ 405 | $ 1,619 | $ 896 | $ 4,912 |
Assumed conversion of debt | 0 | (2) | (4) | (2) |
Net income attributable to Micron - Diluted | $ 405 | $ 1,617 | $ 892 | $ 4,910 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted-average common shares outstanding - Basic (in shares) | 1,111 | 1,114 | 1,109 | 1,123 |
Dilutive effect of equity plans and convertible notes (in shares) | 22 | 27 | 22 | 34 |
Weighted-average common shares outstanding - Diluted (in shares) | 1,133 | 1,141 | 1,131 | 1,157 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.37 | $ 1.45 | $ 0.81 | $ 4.37 |
Diluted (in dollars per share) | $ 0.36 | $ 1.42 | $ 0.79 | $ 4.24 |
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 1 | 11 | 4 | 9 |
Segment and Other Information_2
Segment and Other Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 27, 2020USD ($) | Feb. 28, 2019USD ($) | Feb. 27, 2020USD ($)segment | Feb. 28, 2019USD ($) | |
Reportable Segments | ||||
Number of reportable segments | segment | 4 | |||
Net sales | ||||
Revenue | $ 4,797 | $ 5,835 | $ 9,941 | $ 13,748 |
Operating income (loss) | ||||
Stock-based compensation | (85) | (57) | (157) | (118) |
Restructure and asset impairments | (10) | (51) | (6) | (84) |
Operating income (loss) | 440 | 1,957 | 958 | 5,716 |
CNBU | ||||
Net sales | ||||
Revenue | 1,967 | 2,382 | 3,946 | 5,986 |
MBU | ||||
Net sales | ||||
Revenue | 1,258 | 1,611 | 2,715 | 3,823 |
SBU | ||||
Net sales | ||||
Revenue | 870 | 1,022 | 1,838 | 2,165 |
EBU | ||||
Net sales | ||||
Revenue | 696 | 799 | 1,430 | 1,732 |
All Other | ||||
Net sales | ||||
Revenue | 6 | 21 | 12 | 42 |
Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 542 | 2,110 | 1,136 | 5,997 |
Operating Segments | CNBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 283 | 1,160 | 684 | 3,371 |
Operating Segments | MBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 183 | 707 | 478 | 1,910 |
Operating Segments | SBU | ||||
Operating income (loss) | ||||
Operating income (loss) | (2) | (20) | (219) | 60 |
Operating Segments | EBU | ||||
Operating income (loss) | ||||
Operating income (loss) | 79 | 262 | 192 | 649 |
Operating Segments | All Other | ||||
Operating income (loss) | ||||
Operating income (loss) | (1) | 1 | 1 | 7 |
Unallocated | ||||
Operating income (loss) | ||||
Stock-based compensation | (85) | (57) | (157) | (118) |
Restructure and asset impairments | (10) | (51) | (6) | (81) |
Employee severance | 0 | (17) | (1) | (37) |
Start-up and preproduction costs | 0 | (15) | 0 | (23) |
Other | (7) | (13) | (14) | (22) |
Operating income (loss) | $ (102) | $ (153) | $ (178) | $ (281) |