Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 02, 2021 | Oct. 01, 2021 | Mar. 04, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 2, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 79.9 | ||
Entity Common Stock, Shares Outstanding | 1,118,623,738 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the registrant’s Fiscal 2021 Annual Meeting of Shareholders to be held on January 13, 2022 are incorporated by reference into Part II and Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000723125 | ||
Current Fiscal Year End Date | --09-02 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 27,705 | $ 21,435 | $ 23,406 |
Cost of goods sold | 17,282 | 14,883 | 12,704 |
Gross margin | 10,423 | 6,552 | 10,702 |
Research and development | 2,663 | 2,600 | 2,441 |
Selling, general, and administrative | 894 | 881 | 836 |
Restructure and asset impairments | 488 | 60 | (29) |
Other operating (income) expense, net | 95 | 8 | 78 |
Operating income | 6,283 | 3,003 | 7,376 |
Interest income | 37 | 114 | 205 |
Interest expense | (183) | (194) | (128) |
Other non-operating income (expense), net | 81 | 60 | (405) |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | 6,218 | 2,983 | 7,048 |
Income tax (provision) benefit | (394) | (280) | (693) |
Equity in net income (loss) of equity method investees | 37 | 7 | 3 |
Net income | 5,861 | 2,710 | 6,358 |
Net income attributable to noncontrolling interests | 0 | (23) | (45) |
Net income attributable to Micron | $ 5,861 | $ 2,687 | $ 6,313 |
Earnings per share | |||
Basic (in dollars per share) | $ 5.23 | $ 2.42 | $ 5.67 |
Diluted (in dollars per share) | $ 5.14 | $ 2.37 | $ 5.51 |
Number of shares used in per share calculations | |||
Basic (in shares) | 1,120 | 1,110 | 1,114 |
Diluted (in shares) | 1,141 | 1,131 | 1,143 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,861 | $ 2,710 | $ 6,358 |
Other comprehensive income (loss), net of tax | |||
Gains (losses) on derivative instruments | (67) | 46 | (3) |
Gains (losses) on investments | (7) | 1 | 9 |
Pension liability adjustments | 3 | 15 | (6) |
Foreign currency translation adjustments | 2 | 0 | (1) |
Other comprehensive income (loss) | (69) | 62 | (1) |
Total comprehensive income | 5,792 | 2,772 | 6,357 |
Comprehensive income attributable to noncontrolling interests | 0 | (23) | (45) |
Comprehensive income attributable to Micron | $ 5,792 | $ 2,749 | $ 6,312 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 | |
Assets | |||
Cash and equivalents | $ 7,763 | $ 7,624 | |
Short-term investments | 870 | 518 | |
Receivables | 5,311 | 3,912 | |
Inventories | 4,487 | 5,373 | |
Assets Held For Sale Current | 974 | 0 | |
Other current assets | 502 | 538 | |
Total current assets | 19,907 | 17,965 | |
Long-term marketable investments | [1] | 1,765 | 1,048 |
Property, plant, and equipment | 33,213 | 31,031 | |
Operating lease right-of-use assets | 551 | 584 | |
Intangible assets | 349 | 334 | |
Deferred tax assets | 782 | 707 | |
Goodwill | 1,228 | 1,228 | |
Other noncurrent assets | 1,054 | 781 | |
Total assets | 58,849 | 53,678 | |
Liabilities and equity | |||
Accounts payable and accrued expenses | 5,325 | 5,817 | |
Current debt | 155 | 270 | |
Other current liabilities | 944 | 548 | |
Total current liabilities | 6,424 | 6,635 | |
Long-term debt | 6,621 | 6,373 | |
Operating Lease, Liability, Noncurrent | 504 | 533 | |
Noncurrent unearned government incentives | 808 | 643 | |
Other noncurrent liabilities | 559 | 498 | |
Total liabilities | 14,916 | 14,682 | |
Commitments and contingencies | |||
Micron shareholders' equity | |||
Common stock, $0.10 par value, 3,000 shares authorized, 1,216 shares issued and 1,119 outstanding (1,194 shares issued and 1,113 outstanding as of September 3, 2020) | 122 | 119 | |
Additional capital | 9,453 | 8,917 | |
Retained earnings | 39,051 | 33,384 | |
Treasury stock, 97 shares held (81 shares as of September 3, 2020) | (4,695) | (3,495) | |
Accumulated other comprehensive income (loss) | 2 | 71 | |
Total equity | 43,933 | 38,996 | |
Total liabilities and equity | $ 58,849 | $ 53,678 | |
[1] | The maturities of long-term marketable securities range from one four years. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
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) | 1,216 | 1,194 |
Common Stock, outstanding (in shares) | 1,119 | 1,113 |
Treasury Stock, held (in shares) | 97 | 81 |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect from adoption of new accounting standards | Common Stock | Additional Capital | Retained Earnings | Retained EarningsCumulative effect from adoption of new accounting standards | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Micron Shareholders’ Equity | Total Micron Shareholders’ EquityCumulative effect from adoption of new accounting standards | Noncontrolling Interests in Subsidiaries |
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] | |||||||||||
Net income (excluding redeemable noncontrolling interest) | 6,349 | 6,313 | 6,313 | 36 | |||||||
Net income | 6,358 | ||||||||||
Other comprehensive income (loss), net | (1) | (1) | (1) | ||||||||
Stock issued under stock plans (in shares) | 14 | ||||||||||
Stock issued under stock plans | 179 | $ 1 | 178 | 179 | |||||||
Stock-based compensation expense | 243 | 243 | 243 | ||||||||
Repurchase of stock (in shares) | (2) | ||||||||||
Repurchase of stock | (2,728) | $ 0 | 103 | (39) | (2,792) | (2,728) | |||||
Acquisitions of noncontrolling interest | (16) | 1 | 1 | (17) | |||||||
Reclassification of redeemable convertible notes, net | 3 | 3 | 3 | ||||||||
Cash settlement of convertible notes | (515) | (515) | (515) | ||||||||
Balance (in shares) at Aug. 29, 2019 | 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] | |||||||||||
Net income (excluding redeemable noncontrolling interest) | 2,702 | 2,687 | 2,687 | 15 | |||||||
Net income | 2,710 | ||||||||||
Other comprehensive income (loss), net | 62 | 62 | 62 | ||||||||
Stock issued under stock plans (in shares) | 14 | ||||||||||
Stock issued under stock plans | 225 | $ 1 | 224 | 225 | |||||||
Stock-based compensation expense | 328 | 328 | 328 | ||||||||
Repurchase of stock (in shares) | (2) | ||||||||||
Repurchase of stock | (251) | $ 0 | (11) | (64) | (176) | (251) | |||||
Settlement of capped calls | 0 | 98 | (98) | 0 | |||||||
Acquisitions of noncontrolling interest | (784) | 120 | 120 | (904) | |||||||
Cash settlement of convertible notes | $ (56) | (56) | (56) | ||||||||
Balance (in shares) at Sep. 03, 2020 | 1,194 | 1,194 | |||||||||
Balance at Sep. 03, 2020 | $ 38,996 | $ 119 | 8,917 | 33,384 | (3,495) | 71 | 38,996 | 0 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 03, 2020 | 38,996 | $ 119 | 8,917 | 33,384 | (3,495) | 71 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 5,861 | 5,861 | 5,861 | ||||||||
Other comprehensive income (loss), net | (69) | (69) | (69) | ||||||||
Stock issued under stock plans (in shares) | 13 | ||||||||||
Stock issued under stock plans | 225 | $ 2 | 223 | 225 | |||||||
Stock-based compensation expense | 378 | 378 | 378 | ||||||||
Repurchase of stock (in shares) | (2) | ||||||||||
Repurchase of stock | (1,294) | $ 0 | (12) | (82) | (1,200) | (1,294) | |||||
Stock issued for convertible notes (shares) | 11 | ||||||||||
Stock issued for convertible notes | 0 | $ 1 | (1) | 0 | |||||||
Cash settlement of convertible notes | (52) | (52) | (52) | ||||||||
Cash dividends declared ($0.10 per share) | $ (112) | (112) | (112) | ||||||||
Balance (in shares) at Sep. 02, 2021 | 1,216 | 1,216 | |||||||||
Balance at Sep. 02, 2021 | $ 43,933 | $ 122 | 9,453 | 39,051 | (4,695) | 2 | 43,933 | $ 0 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 02, 2021 | $ 43,933 | $ 122 | $ 9,453 | $ 39,051 | $ (4,695) | $ 2 | $ 43,933 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Cash flows from operating activities | |||
Net income | $ 5,861 | $ 2,710 | $ 6,358 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation expense and amortization of intangible assets | 6,214 | 5,650 | 5,424 |
Amortization of debt discount and other costs | 30 | 26 | 49 |
Restructure and asset impairments | 454 | 40 | (97) |
Stock-based compensation | 378 | 328 | 243 |
(Gains) losses on debt prepayments, repurchases, and conversions | 1 | (40) | 396 |
Change in operating assets and liabilities | |||
Receivables | (1,446) | (723) | 2,431 |
Inventories | 866 | (435) | (1,489) |
Accounts payable and accrued expenses | 210 | 725 | (174) |
Deferred income taxes, net | (50) | 79 | 150 |
Other | (50) | (54) | (102) |
Net cash provided by operating activities | 12,468 | 8,306 | 13,189 |
Cash flows from investing activities | |||
Expenditures for property, plant, and equipment | (10,030) | (8,223) | (9,780) |
Purchases of available-for-sale securities | (3,163) | (1,857) | (4,218) |
Proceeds from maturities of available-for-sale securities | 1,250 | 814 | 1,541 |
Proceeds from sales of available-for-sale securities | 856 | 1,458 | 1,504 |
Proceeds from government incentives | 495 | 262 | 748 |
Other | 3 | (43) | 120 |
Net cash provided by (used for) investing activities | (10,589) | (7,589) | (10,085) |
Cash flows from financing activities | |||
Repayments of debt | (1,520) | (4,366) | (3,340) |
Payments to acquire treasury stock | (1,294) | (251) | (2,729) |
Payments on equipment purchase contracts | (295) | (63) | (75) |
Acquisition of noncontrolling interest in IMFT | 0 | (744) | 0 |
Proceeds from issuance of debt | 1,188 | 5,000 | 3,550 |
Other | 140 | 107 | 156 |
Net cash provided by (used for) financing activities | (1,781) | (317) | (2,438) |
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | 41 | 11 | 26 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 139 | 411 | 692 |
Cash, cash equivalents, and restricted cash at beginning of period | 7,690 | 7,279 | 6,587 |
Cash, cash equivalents, and restricted cash at end of period | 7,829 | 7,690 | 7,279 |
Supplemental disclosures | |||
Income taxes paid, net | (361) | (167) | (524) |
Interest paid, net of amounts capitalized | (171) | (165) | (53) |
Noncash equipment acquisitions on contracts payable and finance leases | $ 684 | $ 278 | $ 119 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 02, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation Micron Technology, Inc., including its consolidated subsidiaries, is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all . With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. The accompanying consolidated financial statements include the accounts of Micron Technology, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America. Intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to current period presentation. See “Inventories” below for changes to our significant accounting policies, and the “Inventories” note for additional information. Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal 2021 contained 52 weeks, fiscal 2020 contained 53 weeks, and fiscal 2019 contained 52 weeks. Our fourth quarter of fiscal 2020 contained 14 weeks and all other fiscal quarters in the years presented contained 13 weeks. All period references are to our fiscal periods unless otherwise indicated. Derivative and Hedging Instruments We use derivative instruments to manage our exposure to changes in currency exchange rates from (1) our monetary assets and liabilities denominated in currencies other than the U.S. dollar and (2) forecasted cash flows for certain capital expenditures and manufacturing costs. We also use derivative instruments to manage our exposure to changes in commodity prices for manufacturing supplies and to minimize certain exposures to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. Derivative instruments are measured at their fair values and recognized as either assets or liabilities. The accounting for changes in the fair value of derivative instruments is based on the intended use of the derivative and the resulting designation. For derivative instruments that are not designated for hedge accounting, gains or losses from changes in fair values are recognized in other non-operating income (expense). For derivative instruments designated as cash flow hedges, gains or losses are included as a component of accumulated other comprehensive income and reclassified into earnings in the same line items and in the same periods in which the underlying transactions affect earnings. For derivative instruments designated as cash flow hedges, time value is excluded from the assessment of effectiveness and the gains and losses attributable to time value are recognized in earnings. For derivative instruments designated as fair value hedges, changes in the fair values of the derivative instruments and the offsetting changes in the fair values of the underlying hedged items are both recognized in earnings. We enter into master netting arrangements with our counterparties to mitigate credit risk in derivative hedge transactions. These master netting arrangements allow us and our counterparties to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled with each counterparty have been presented in our consolidated balance sheet on a net basis. Financial Instruments Cash equivalents include highly liquid short-term investments with original maturities to us of three months or less that are readily convertible to known amounts of cash. Other investments with remaining maturities of less than one year are included in short-term investments. Investments with remaining maturities greater than one year are included in long-term marketable investments. The carrying value of investment securities sold is determined using the specific identification method. Functional Currency The U.S. dollar is the functional currency for us and all of our consolidated subsidiaries. Goodwill We perform an annual impairment assessment for goodwill in our fourth quarter each year. Government Incentives We receive incentives from governmental entities related to expenses, assets, and other activities. Our government incentives may require that we meet or maintain specified spending levels and other operational metrics and may be subject to reimbursement if such conditions are not met or maintained. Government incentives are recorded in the financial statements in accordance with their purpose: as a reduction of expenses, a reduction of asset costs, or other income. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred. Incentives related to the acquisition or construction of fixed assets are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets. Other incentives are recognized as other operating income. Government incentives received prior to being earned are recognized in current or noncurrent deferred income, whereas government incentives earned prior to being received are recognized in current or noncurrent receivables. Cash received from government incentives related to operating expenses is included as an operating activity in the statement of cash flows, whereas cash received from incentives related to the acquisition of property, plant, and equipment is included as an investing activity. Inventories Effective as of the beginning of the second quarter of 2021, we changed the method of inventory costing from average cost to FIFO. The difference between average cost and FIFO was not material to any previously reported financial statements. Therefore, we have recognized the cumulative effect of the change as a reduction of inventories and a charge to cost of goods sold of $133 million as of the beginning of the second quarter of 2021. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a FIFO basis. Cost includes depreciation, labor, material, and overhead costs, including product and process technology costs. When net realizable value (which requires projecting future average selling prices, sales volumes, and costs to complete products in work in process inventories) is below cost, we record a charge to cost of goods sold to write down inventories to their estimated net realizable value in advance of when inventories are actually sold. We review the major characteristics of product type and markets in determining the unit of account for which we perform the lower of cost or net realizable value analysis and categorize all inventories (including DRAM, NAND, and other memory) as a single group. We remove amounts from inventory and charge such amounts to cost of goods sold on a FIFO basis. Leases We adopted ASC 842 in the first quarter of 2020 under the modified retrospective method and elected to not recast prior periods. We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluate whether the lease is an operating lease or a finance lease at the commencement date. We recognize right-of-use assets and lease liabilities for operating and finance leases with terms greater than 12 months. Right-of-use assets represent our right to use an asset for the lease term, while lease liabilities represent our obligation to make lease payments. We do not separate lease and non-lease components for real-estate and gas plant leases. Sublease income is presented within lease expense. Product and Process Technology Costs incurred to (1) acquire product and process technology, (2) patent technology, and (3) maintain patent technology, are capitalized and amortized on a straight-line basis over periods ranging up to 12.5 years. We capitalize a portion of costs incurred to patent technology based on historical data of patents issued as a percent of patents we file. Product and process technology costs are amortized over the shorter of (1) the estimated useful life of the technology, (2) the patent term, or (3) the term of the technology agreement. Fully-amortized assets are removed from product and process technology and accumulated amortization. Product Warranty We generally provide a limited warranty that our products are in compliance with applicable specifications existing at the time of delivery. Under our standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective items or return of, or a credit with respect to, amounts paid for such items. Under certain circumstances, we provide more extensive limited warranty coverage than that provided under our standard terms and conditions. Our warranty obligations are not material. Property, Plant, and Equipment Property, plant, and equipment is stated at cost and depreciated using the straight-line method over estimated useful lives of generally 10 to 30 years for buildings, 5 to 7 years for equipment, and 3 to 5 years for software. Assets held for sale are carried at the lower of estimated fair value or carrying value and are included in current assets. When property, plant, or equipment is retired or otherwise disposed, the net book value is removed and we recognize any gain or loss in results of operations. We capitalize interest on borrowings during the period of time we carry out the activities necessary to bring assets to the condition of their intended use and location. Capitalized interest becomes part of the cost of assets. Research and Development Costs related to the conceptual formulation and design of products and processes are charged to R&D expense as incurred. Development of a product is deemed complete when it is qualified through reviews and tests for performance and reliability. Subsequent to product qualification, product costs are included in cost of goods sold. Amounts from cost-sharing arrangements are reflected as a reduction of R&D expense. Revenue Recognition Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Contracts with our customers are generally short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. We estimate a liability for returns using the expected value method based on historical returns. In addition, we generally offer price protection to our distributors, which is a form of variable consideration that decreases the transaction price. We use the expected value method, based on historical price adjustments and current pricing trends, to estimate the amount of revenue recognized from sales to distributors. Differences between the estimated and actual amounts are recognized as adjustments to revenue. Stock-based Compensation Stock-based compensation is measured at the grant date, based on the fair value of the award, and recognized as expense under the straight-line attribution method over the requisite service period. We account for forfeitures as they occur. We issue new shares upon the exercise of stock options or conversion of share units. Treasury Stock Treasury stock is carried at cost. When we retire our treasury stock, any excess of the repurchase price paid over par value is allocated between additional capital and retained earnings. Use of Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. Estimates and judgments are based on historical experience, forecasted events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and judgments may differ under different assumptions or conditions. We evaluate our estimates and judgments on an ongoing basis. Actual results could differ from estimates. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 12 Months Ended |
Sep. 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In November 2018, the Financial Accounting Standards Board (“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. We adopted ASU 2018-18 in the first quarter of 2021 under the retrospective adoption method to the date we adopted ASC 606, which was August 31, 2018. The adoption of this ASU did not have a significant 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. We adopted ASU 2016-13 in the first quarter of 2021 under the modified retrospective adoption method. The adoption of this ASU did not have a significant impact on our financial statements. |
Lehi, Utah Fab and 3D XPoint
Lehi, Utah Fab and 3D XPoint | 12 Months Ended |
Sep. 02, 2021 | |
Lehi, Utah Facility | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Lehi, Utah Fab and 3D XPoint | Lehi, Utah Fab and 3D XPoint In the second quarter of 2021, we updated our portfolio strategy to further strengthen our focus on memory and storage innovations for the data center market. In connection therewith, we determined that there was insufficient market validation to justify the ongoing investments required to commercialize 3D XPoint at scale. Accordingly, we ceased development of 3D XPoint technology and engaged in discussions with potential buyers for the sale of our facility located in Lehi that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as held for sale and ceased depreciating the assets. On June 30, 2021, we announced a definitive agreement to sell our Lehi facility to TI for cash consideration of $900 million. The sale is anticipated to close in the first quarter of 2022. In the third quarter of 2021, we recognized a charge of $435 million included in restructure and asset impairments (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs, to be realized from the sale of these assets and liabilities. The impairment charge was based on Level 3 inputs including expected consideration and the composition of assets included in the sale, which were derived from the agreement with TI. In the second quarter of 2021, we also recognized a charge of $49 million to cost of goods sold to write down 3D XPoint inventory due to our decision to cease further development of this technology. As of September 2, 2021, the significant balances of assets held for sale in connection with our Lehi facility were as follows: As of September 2, Property, plant, and equipment $ 1,334 Other current assets 50 Impairment (435) Lehi assets held for sale $ 949 As of September 2, 2021, we also had a $50 million finance lease obligation included in the current portion of long-term debt and $11 million of other liabilities that we expect to transfer with the sale. The expected cash consideration, net of estimated selling expenses, approximates the carrying value of the net assets and liabilities expected to transfer in the sale, after giving effect to the impairment charge discussed above. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Sep. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have interests in entities that are variable interest entities (“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. Through October 31, 2019, 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 paid $1.25 billion to acquire Intel’s noncontrolling interest in IMFT and settle IMFT’s debt obligations to Intel, at which time IMFT (now known as MTU) became a wholly-owned subsidiary. 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. IMFT manufactured semiconductor products exclusively for its members under a long-term supply agreement at prices approximating cost. In 2018, IMFT discontinued production of NAND and subsequent to that time manufactured 3D XPoint memory. IMFT sales to Intel were $158 million through the date of our purchase of Intel’s noncontrolling interest in 2020, and $731 million in 2019. |
Cash and Investments
Cash and Investments | 12 Months Ended |
Sep. 02, 2021 | |
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: 2021 2020 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 $ 5,796 $ — $ — $ 5,796 $ 3,996 $ — $ — $ 3,996 Level 1 (2) Money market funds 38 — — 38 1,828 — — 1,828 Level 2 (3) Certificates of deposits 1,907 69 — 1,976 1,740 10 2 1,752 Corporate bonds 9 429 1,134 1,572 3 266 592 861 Asset-backed securities 8 95 509 612 1 31 211 243 Government securities 1 190 122 313 6 115 243 364 Commercial paper 4 87 — 91 50 96 — 146 7,763 $ 870 $ 1,765 $ 10,398 7,624 $ 518 $ 1,048 $ 9,190 Restricted cash (4) 66 66 Cash, cash equivalents, and restricted cash $ 7,829 $ 7,690 (1) The maturities of long-term marketable securities range from one four years. (2) The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets. (3) The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of September 2, 2021 or September 3, 2020. (4) Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned and for which restrictions lapse upon achieving certain performance conditions. Gross realized gains and losses from sales of available-for-sale securities were not significant for any period presented. In addition to the amounts included in the table above, we had $153 million and $92 million of non-marketable equity investments without a readily determinable fair value that were included in other noncurrent assets as of September 2, 2021 and September 3, 2020, respectively. We recognized gains in other non-operating income on these non-marketable investments of $70 million and $13 million for 2021 and 2020, respectively. These gains primarily resulted from adjustments of these investments to the value indicated by transactions in the same or similar investments. |
Receivables
Receivables | 12 Months Ended |
Sep. 02, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables As of 2021 2020 Trade receivables $ 4,920 $ 3,494 Income and other taxes 264 232 Other 127 186 $ 5,311 $ 3,912 |
Inventories
Inventories | 12 Months Ended |
Sep. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of 2021 2020 Finished goods $ 513 $ 1,001 Work in process 3,469 3,854 Raw materials and supplies 505 518 $ 4,487 $ 5,373 Effective as of the beginning of the second quarter of 2021, we changed our method of inventory costing from average cost to FIFO. This change in accounting principle is preferable because in an environment with continuously changing production costs FIFO more closely matches the actual cost of goods sold with the revenues from sales of those specific units, better represents the actual cost of inventories remaining on hand at any period-end, and improves comparability with our semiconductor industry peers. The change to FIFO was not material to any prior periods, nor was the cumulative effect of $133 million material to the second quarter of 2021. As such, prior periods were not retrospectively adjusted, and the cumulative effect was reported as an increase to cost of goods sold for the second quarter of 2021 of $133 million, with an offsetting reduction to beginning inventories. This charge resulted in a corresponding reduction to operating income, a $128 million reduction to net income, and an $0.11 reduction to diluted earnings per share for both the second quarter and the year ended 2021. Beginning in the second quarter of 2021, we changed the classification of spare parts for equipment to better align with the manner in which they are used in operations. As a result, we now present spare parts as other current assets and no longer as a component of raw materials inventories. This reclassification was applied on a retrospective basis. As a result, $254 million of spare parts were presented in other current assets as of September 2, 2021, and we reclassified $234 million of spare parts from inventories to other current assets in the accompanying balance sheet as of September 3, 2020. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Sep. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment As of 2021 2020 Land $ 280 $ 352 Buildings 14,776 13,981 Equipment (1) 51,902 48,525 Construction in progress (2) 1,517 1,600 Software 987 873 69,462 65,331 Accumulated depreciation (36,249) (34,300) $ 33,213 $ 31,031 (1) Includes costs related to equipment not placed into service of $1.99 billion as of September 2, 2021 and $1.63 billion as of September 3, 2020. (2) Includes building-related construction, tool installation, and software costs for assets not placed into service. Depreciation expense was $6.13 billion, $5.57 billion, and $5.34 billion for 2021, 2020, and 2019, respectively. Interest capitalized as part of the cost of property, plant, and equipment was $66 million, $77 million, and $103 million for 2021, 2020, and 2019, respectively. 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. This revision reduced our aggregate depreciation expense by approximately $675 million in 2020, of which approximately $165 million remained capitalized in inventory as of the end of 2020. After adjusting for the effect of the reduced amount of depreciation |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Sep. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill 2021 2020 As of Gross Accumulated Gross Accumulated Product and process technology $ 633 $ (284) $ 616 $ (282) Goodwill 1,228 1,228 In 2021, 2020, and 2019, we capitalized $106 million, $73 million, and $91 million, respectively, for product and process technology with weighted-average useful lives of 9 years, 10 years, and 8 years, respectively. Amortization expense was $82 million, $78 million, and $82 million for 2021, 2020, and 2019, respectively. Expected amortization expense is $72 million for 2022, $61 million for 2023, $55 million for 2024, $34 million for 2025, and $26 million for 2026. |
Leases
Leases | 12 Months Ended |
Sep. 02, 2021 | |
Leases [Abstract] | |
Leases | Leases We have finance and operating leases through which we obtain the right to use equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our SG&A functions. Our finance leases consist primarily of gas or other supply agreements that are deemed to contain 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. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those 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 judgment to determine the discount rate, which we base on interest rates for borrowings with similar terms and collateral issued by entities with credit ratings similar to ours. Operating lease costs include short-term and variable lease expenses. Short-term, variable leases, and sublease income are not material for the periods presented. The components of lease expense are presented below: For the year ended 2021 2020 Finance lease cost Amortization of right-of-use asset $ 69 $ 140 Interest on lease liability 20 22 Operating lease cost 108 102 $ 197 $ 264 Operating lease expense under the previous ASC 840 lease accounting guidance was $93 million for 2019. Supplemental cash flow information related to leases was as follows: For the year ended 2021 2020 Cash flows used for operating activities Finance leases $ 21 $ 24 Operating leases (1) 106 39 Cash flows used for financing activities from financing leases 85 248 Noncash acquisitions of right-of-use assets Finance leases 395 107 Operating leases 27 11 (1) Includes $48 million of reimbursements received for tenant improvements for 2020. Supplemental balance sheet information related to leases was as follows: As of 2021 2020 Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale) $ 766 $ 426 Current operating lease liabilities (included in accounts payable and accrued expenses) 55 54 Weighted-average remaining lease term (in years) Finance leases 5 5 Operating leases 7 7 Weighted-average discount rate Finance leases 3.14 % 4.51 % Operating leases 2.63 % 2.67 % Maturities of lease liabilities existing as of September 2, 2021 were as follows: For the year ending Finance Leases Operating Leases 2022 $ 127 $ 68 2023 115 69 2024 89 61 2025 74 50 2026 74 47 2027 and thereafter 454 372 Less imputed interest (130) (108) $ 803 $ 559 The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of September 2, 2021, we had such lease liabilities relating to (1) operating lease payment obligations of $147 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 $553 million over a weighted-average period of 15 years for gas supply arrangements deemed to contain embedded leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use. |
Leases | Leases We have finance and operating leases through which we obtain the right to use equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our SG&A functions. Our finance leases consist primarily of gas or other supply agreements that are deemed to contain 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. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those 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 judgment to determine the discount rate, which we base on interest rates for borrowings with similar terms and collateral issued by entities with credit ratings similar to ours. Operating lease costs include short-term and variable lease expenses. Short-term, variable leases, and sublease income are not material for the periods presented. The components of lease expense are presented below: For the year ended 2021 2020 Finance lease cost Amortization of right-of-use asset $ 69 $ 140 Interest on lease liability 20 22 Operating lease cost 108 102 $ 197 $ 264 Operating lease expense under the previous ASC 840 lease accounting guidance was $93 million for 2019. Supplemental cash flow information related to leases was as follows: For the year ended 2021 2020 Cash flows used for operating activities Finance leases $ 21 $ 24 Operating leases (1) 106 39 Cash flows used for financing activities from financing leases 85 248 Noncash acquisitions of right-of-use assets Finance leases 395 107 Operating leases 27 11 (1) Includes $48 million of reimbursements received for tenant improvements for 2020. Supplemental balance sheet information related to leases was as follows: As of 2021 2020 Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale) $ 766 $ 426 Current operating lease liabilities (included in accounts payable and accrued expenses) 55 54 Weighted-average remaining lease term (in years) Finance leases 5 5 Operating leases 7 7 Weighted-average discount rate Finance leases 3.14 % 4.51 % Operating leases 2.63 % 2.67 % Maturities of lease liabilities existing as of September 2, 2021 were as follows: For the year ending Finance Leases Operating Leases 2022 $ 127 $ 68 2023 115 69 2024 89 61 2025 74 50 2026 74 47 2027 and thereafter 454 372 Less imputed interest (130) (108) $ 803 $ 559 The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of September 2, 2021, we had such lease liabilities relating to (1) operating lease payment obligations of $147 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 $553 million over a weighted-average period of 15 years for gas supply arrangements deemed to contain embedded leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Sep. 02, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses As of 2021 2020 Accounts payable $ 1,744 $ 2,191 Property, plant, and equipment 1,887 2,374 Salaries, wages, and benefits 984 849 Income and other taxes 364 237 Other 346 166 $ 5,325 $ 5,817 |
Debt
Debt | 12 Months Ended |
Sep. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2021 2020 Net Carrying Amount Net Carrying Amount As of Stated Rate Effective Rate Principal Current Long-Term Total Principal Current Long-Term Total Finance lease obligations N/A 3.14 % $ 803 $ 154 $ 649 $ 803 $ 486 $ 76 $ 410 $ 486 2023 Notes 2.497 % 2.64 % 1,250 — 1,247 1,247 1,250 — 1,245 1,245 2024 Notes 4.640 % 4.76 % 600 — 598 598 600 — 598 598 2024 Term Loan A 0.975 % 1.01 % 1,188 — 1,186 1,186 — — — — 2026 Notes 4.975 % 5.07 % 500 — 498 498 500 — 498 498 2027 Notes (1) 4.185 % 4.27 % 900 — 901 901 900 — 895 895 2029 Notes 5.327 % 5.40 % 700 — 696 696 700 — 696 696 2030 Notes 4.663 % 4.73 % 850 — 846 846 850 — 845 845 2032D Notes N/A N/A — — — — 134 131 — 131 Extinguished 2024 Term Loan A N/A N/A — — — — 1,250 62 1,186 1,248 Other N/A N/A 1 1 — 1 1 1 — 1 $ 6,792 $ 155 $ 6,621 $ 6,776 $ 6,671 $ 270 $ 6,373 $ 6,643 (1) In 2021, we entered into fixed-to-floating interest rate swaps on the 2027 Notes with an aggregate $900 million notional amount equal to the principal amount of the 2027 Notes. The resulting variable interest paid is at a rate equal to SOFR plus approximately 3.33%. The fixed-to-floating interest rate swaps are accounted for as fair value hedges, as a result, the carrying value of our 2027 Notes reflects adjustments in fair value. As of September 2, 2021, all of our debt, other than our finance leases, are unsecured obligations that rank equally in right of payment with all of our other existing and future unsecured indebtedness and are effectively subordinated to all of our other existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness. As of September 2, 2021, Micron had $5.97 billion of unsecured debt (net of unamortized discount and debt issuance costs) that was structurally subordinated to all liabilities of its subsidiaries, including trade payables. The terms of our indebtedness generally contain cross payment default and cross acceleration provisions. Micron’s guarantees of its subsidiary debt obligations are unsecured obligations ranking equally in right of payment with all of Micron’s other existing and future unsecured indebtedness. Senior Unsecured Notes Our 2023 Notes, 2024 Notes, 2026 Notes, 2027 Notes, 2029 Notes, and 2030 Notes (the “Senior Unsecured Notes”) each contain covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries (which are generally domestic subsidiaries in which we own at least 80% of the voting stock and which own principal property, as defined in the indenture governing such notes) to (1) create or incur certain liens; (2) enter into certain sale and lease-back transactions; and (3) consolidate with or merge with or into, or convey, transfer, or lease all or substantially all of our properties and assets, to another entity. These covenants are subject to a number of limitations and exceptions. Additionally, if a change of control triggering event occurs, as defined in the indentures governing our senior unsecured notes, we will be required to offer to purchase such notes at 101% of the outstanding aggregate principal amount plus accrued interest up to the purchase date. Revolving Credit Facility On May 14, 2021, we terminated our existing undrawn credit facility and entered into a new five Under the terms of the Revolving Credit Facility, we must maintain a leverage ratio, calculated as of the last day of each fiscal quarter, of total indebtedness to adjusted EBITDA not to exceed 3.25 to 1.00. The Revolving Credit Facility contains other covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries to (1) create or incur certain liens and enter into sale and lease-back transactions, (2) create, assume, incur, or guarantee certain additional secured indebtedness and unsecured indebtedness of our restricted subsidiaries, and (3) consolidate with or merge with or into, or convey, transfer, lease, or otherwise dispose of all or substantially all of our assets, to another entity. These covenants are subject to a number of limitations, exceptions, and qualifications. 2024 Term Loans On May 14, 2021, we drew $1.19 billion under an unsecured 2024 Term Loan A and used the proceeds to repay the $1.19 billion Extinguished 2024 Term Loan A. The 2024 Term Loan A bears interest at a rate equal to LIBOR plus 0.625% to 1.375% based on our current corporate credit ratings. The principal amount is due October 2024 and may be prepaid without penalty. The 2024 Term Loan A contains the same leverage ratio and substantially the same other covenants as the Revolving Credit Facility. Debt Activity The table below presents the effects of issuances, prepayments, and settlements of debt conversions in 2021. Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Issuance of 2024 Term Loan A $ 1,188 $ 1,186 $ 1,186 $ — $ — Prepayment of Extinguished 2024 Term Loan A (1,188) (1,186) (1,188) — (2) Settlement of Conversions of 2032D Notes (1) (134) (134) (185) (52) 1 $ (134) $ (134) $ (187) $ (52) $ (1) (1) In 2021, substantially all holders of our 2032D Notes converted their notes. We settled these conversions and all remaining 2032D Notes with $185 million in cash and 11.1 million shares of our stock. In 2020, we recognized aggregate non-operating gains of $40 million in connection with debt prepayments and conversions of $3.77 billion of principal amount of notes (carrying value of $3.90 billion) for an aggregate of $3.92 billion in cash. In 2019, we recognized aggregate non-operating losses of $396 million in connection with debt prepayments, repurchases, and conversions of $1.80 billion of principal amount of notes (carrying value of $1.60 billion) for an aggregate of $2.38 billion in cash. Maturities of Notes Payable As of September 2, 2021, maturities of notes payable were as follows: 2022 $ 1 2023 1,250 2024 600 2025 1,188 2026 500 2027 and thereafter 2,450 Unamortized discounts (21) $ 5,968 |
Commitments
Commitments | 12 Months Ended |
Sep. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments As of September 2, 2021, we had commitments of approximately $6.5 billion for purchase obligations, of which approximately $5.0 billion will be due within one year. Purchase obligations include payments for the acquisition of property, plant, and equipment, and other goods or services of either a fixed or minimum quantity and exclude any lease payments for leases that have been executed but have not yet commenced. |
Contingencies
Contingencies | 12 Months Ended |
Sep. 02, 2021 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies We are currently a party to legal actions other than those described below arising from the normal course of business, none of which are 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 U.S. 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 July 14, 2021, the action was dismissed with prejudice pursuant to a stipulation of dismissal filed by the parties. On December 15, 2014, Innovative Memory Solutions, Inc. filed a patent infringement action against Micron in the U.S. District Court for the District of Delaware. The complaint alleges that a variety of our NAND products infringe eight U.S. patents and seeks damages, attorneys’ fees, and costs. Subsequently, six patents were invalidated or withdrawn, leaving two asserted patents in the District Court. 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 an additional complaint filed by UMC in the Fuzhou Court. The additional complaints allege that MSS infringes two Chinese patents by manufacturing and selling certain Crucial MX300 SSDs. The complaint filed by UMC 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 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 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 Ballistix-branded DRAM modules and solid-state drives in China. The affected products made up slightly more than 1% of our annualized revenue in 2018. We are complying with the ruling and have requested the Fuzhou Court to reconsider or stay its decision. On May 4, 2020, Flash-Control, LLC filed a patent infringement action against Micron in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by unspecified DDR4 SDRAM, NVRDIMM, NVDIMM, 3D XPoint, and/or SSD products that incorporate memory controllers and flash memory. The complaint seeks damages, attorneys’ fees, and costs. On July 21, 2020, in a separate matter, the District Court ruled that two of the four asserted patents are invalid, and on July 14, 2021, the U.S. Court of Appeals for the Federal Circuit affirmed the ruling of invalidity. On April 28, 2021, Netlist, Inc. filed two patent infringement actions against Micron, Micron Semiconductor Products, Inc. and Micron Technology Texas, LLC in the U.S. District Court for the Western District of Texas. The first complaint alleges that a single U.S. patent is infringed by certain of our non-volatile dual in-line memory modules. The second complaint alleges that three U.S. patents are infringed by certain of our load-reduced dual in-line memory modules. Each complaint seeks injunctive relief, damages, attorneys’ fees, and costs. On May 10, 2021, Vervain, LLC filed a patent infringement action against Micron, Micron Semiconductor Products, Inc., and Micron Technology Texas, LLC in the U.S. District Court for the Western District of Texas. The complaint alleges that four U.S. patents are infringed by certain SSD products. The complaint seeks injunctive relief, damages, attorneys’ fees, and costs. 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 substantially all 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 had no immediate, enforceable effect and Micron, accordingly, has been 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 an independent expert 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 expert issued a 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 expert for supplemental expert opinion. On March 31, 2020, the expert presented a revised opinion to the Appeals Court which reaffirmed the earlier view that the amount paid by Micron was still within an acceptable range of fair value. On March 4, 2021, the Appeals Court issued an order setting forth a new legal view that whether the 2008 sale of Inotera Shares is voidable depends on the question whether, in October 2008, Qimonda had a restructuring plan in place, and whether Micron was aware of and reasonably relied on that restructuring plan sufficient to form a belief that Qimonda was not imminently illiquid. 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 the plaintiffs the opportunity to file a consolidated, amended complaint. On October 28, 2019, the plaintiffs filed a consolidated, amended complaint that purported to be on behalf of a nationwide class of indirect purchasers of DRAM products. The amended complaint asserted 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 sought treble monetary damages, costs, interest, attorneys’ fees, and other injunctive and equitable relief. On December 21, 2020, the District Court dismissed the plaintiffs’ claims and entered judgment against them. On January 19, 2021, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit. On May 3, 2021, several plaintiffs filed a substantially identical complaint in the U.S. District Court for the Northern District of California purportedly on behalf of a nationwide class of indirect purchasers of DRAM products. On July 19, 2021, the District Court dismissed the May 3, 2021 complaint pursuant to an agreement between the plaintiffs and Micron providing that the plaintiffs may refile the complaint if the District Court’s December 21, 2020 dismissal order is not affirmed on appeal. 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, amended complaint. The consolidated complaint purported to be on behalf of a nationwide class of direct purchasers of DRAM products. The consolidated complaint asserted 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 sought treble monetary damages, costs, interest, attorneys’ fees, and other injunctive and equitable relief. On December 21, 2020, the District Court granted Micron’s motion to dismiss and granted the plaintiffs permission to file a further amended complaint. On January 11, 2021, the plaintiffs filed a further amended complaint asserting substantially the same claims and seeking the same relief. On September 3, 2021, the District Court granted Micron’s motion to dismiss the further amended complaint with prejudice. 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 March 5, 2019, a derivative complaint was filed by a shareholder against certain current and former officers and directors of Micron, allegedly on behalf of and for the benefit of Micron, in the U.S. District Court for the District of Delaware alleging securities fraud, breaches of fiduciary duties, and other violations of law involving misrepresentations about purported anticompetitive behavior in the DRAM industry. The complaint seeks damages, fees, interest, costs, and other appropriate relief. On February 9, 2021, a derivative complaint was filed by a shareholder against Sanjay Mehrotra and other current and former directors of Micron, allegedly on behalf of and for the benefit of Micron, in the U.S. District Court for the District of Delaware alleging violations of securities laws, breaches of fiduciary duties, and other violations of law involving allegedly false and misleading statements about Micron’s commitment to diversity and progress in diversifying its workforce, executive leadership, and Board of Directors. The complaint seeks damages, fees, interest, costs, and an order requiring Micron to take various actions to allegedly improve its corporate governance and internal procedures. 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 2018 whose performance rating was calculated based upon a mandatory percentage distribution range of performance ratings. On July 12, 2019, Manning and three other Company employees filed an amended complaint as putative class action representatives. On behalf of themselves and the putative class, Manning and the three other plaintiffs assert claims for violation of the Idaho Wage Claim Act, breach of contract, breach of the covenant of good faith and fair dealing, and fraud. On June 24, 2020, the court entered judgment in favor of Micron based on the statute of limitations, and the plaintiffs filed a notice of appeal on July 23, 2020. On July 31, 2020, Micron and Intel entered into a binding arbitration agreement under which the parties agreed to present to an arbitral panel various financial disputes related to the IMFT joint venture between Micron and Intel, which ended October 31, 2019, and to other agreements relating to the joint development, production, and sale of non-volatile memory products. Each party alleges that the other owes damages relating to allegations of breach of one or more agreements. On July 13, 2015, Allied Telesis, Inc. and Allied Telesis International (Asia) Pte Ltd. filed a complaint against Micron in the Superior Court of California in Santa Clara alleging breach of implied and express warranties and fraudulent inducement to contract arising from plaintiffs’ purchase of certain allegedly defective DDR1 products between 2008 and 2010. Through subsequent amendments to the complaint, the plaintiffs substituted Allied Telesis K.K. as plaintiff, withdrew the warranty claims, and added claims of fraudulent concealment, negligent misrepresentation, negligence, and strict products liability. The plaintiff’s amended complaint seeks an unspecified award of damages, including punitive damages and lost profits. On September 3, 2020, the Superior Court granted summary judgment dismissing the claims for negligence and strict products liability and denied summary judgment as to the claims for negligent misrepresentation, fraudulent concealment, and fraudulent inducement to contract. A trial is scheduled to begin on January 10, 2022. In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify another 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, Qimonda matter, antitrust matters, securities matters, binding arbitration with Intel, or any other matters noted above, and cannot make a reasonable estimate of the potential loss or range of possible losses. 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. We are currently a party to legal actions other than those described in this note arising from the normal course of business, none of which are expected to have a material adverse effect on our business, results of operations, or financial condition. |
Equity
Equity | 12 Months Ended |
Sep. 02, 2021 | |
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 has no expiration date, 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. We repurchased 15.6 million shares of our common stock for $1.20 billion in 2021 and 3.6 million shares for $176 million in 2020. Through September 2, 2021, we had repurchased an aggregate of $4.04 billion under the authorization. Amounts repurchased are included in treasury stock. Dividends : On August 2, 2021, we announced that our Board of Directors had declared a quarterly dividend of $0.10 per share, payable in cash on October 18, 2021, to shareholders of record as of the close of business on October 1, 2021. Accumulated Other Comprehensive Income : Changes in accumulated other comprehensive income by component for the year ended September 2, 2021 were as follows: Gains (Losses) on Derivative Instruments Pension Liability Adjustments Unrealized Gains (Losses) on Investments Cumulative Foreign Currency Translation Adjustment Total As of September 3, 2020 $ 45 $ 19 $ 8 $ (1) $ 71 Other comprehensive income before reclassifications (52) 8 (6) 2 (48) Amount reclassified out of accumulated other comprehensive income (41) (1) (3) — (45) Tax effects 26 (4) 2 — 24 Other comprehensive income (loss) (67) 3 (7) 2 (69) As of September 2, 2021 $ (22) $ 22 $ 1 $ 1 $ 2 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 02, 2021 | |
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: 2021 2020 As of Fair Carrying Fair Carrying Notes $ 6,584 $ 5,973 $ 6,710 $ 6,026 Convertible notes — — 634 131 The fair values of our convertible notes 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 the trading price of our notes when available, discounted cash flows, and interest rates based on similar debt issued by parties with credit ratings similar to ours. Assets classified as held for sale are carried at the lower of estimated fair value or carrying value. Significant judgments and assumptions are required to estimate their fair values. Actual selling prices could vary significantly from our estimated fair value and we could recognize additional losses in the event that the sales prices of assets classified as held for sale are lower than their carrying values. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Notional or Contractual Amount Fair Value of Assets (1) Liabilities (2) As of September 2, 2021 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 3,601 $ 10 $ (66) Cash flow commodity hedges 45 2 — Fair value interest rate hedges 900 5 — Derivative instruments without hedge accounting designation Non-designated currency hedges 996 3 (2) $ 20 $ (68) As of September 3, 2020 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 1,845 $ 41 $ (2) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,587 4 (1) $ 45 $ (3) (1) Included in receivables – other and other noncurrent assets. (2) Included in accounts payable and accrued expenses – other and other noncurrent liabilities. Derivative Instruments with Hedge Accounting Designation Cash Flow Hedges : We utilize forward and swap contracts that generally mature within two years designated as cash flow hedges for our exposure to changes in currency exchange rates or commodity prices for certain capital expenditures and manufacturing costs. Forward and swap contracts are measured at fair value based on market- based observable inputs including market spot and forward rates, interest rates, and credit-risk spreads (Level 2). We do not use derivative instruments for speculative purposes. We recognized losses of $52 million and gains of $51 million for 2021 and 2020, respectively, in accumulated other comprehensive income from cash flow hedges. The amounts recognized in 2019 were not significant. We recognized losses of $14 million in 2021 in cost of goods sold related to the amounts excluded from hedge effectiveness testing. The amounts recognized in 2020 and 2019 were not significant. We reclassified $41 million of gains in 2021 from accumulated other comprehensive income to earnings, primarily to cost of goods sold. The reclassifications were not significant in 2020 or 2019. As of September 2, 2021, we expect to reclassify $12 million of pre-tax losses related to cash flow hedges from accumulated other comprehensive income into earnings in the next 12 months. Substantially all of the cash flow hedging relates to foreign currency contracts for all periods presented, and the commodity hedges had an immaterial impact. Fair Value Hedges : We utilize fixed-to-floating interest rate swaps designated as fair value hedges to minimize certain exposures to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. Interest rate swaps are measured at fair value based on market-based observable inputs including interest rates and credit-risk spreads (Level 2). The changes in the fair values of derivatives designated as fair value hedges and the offsetting changes in the underlying fair values of the hedged items are both recognized in earnings. When a derivative is no longer designated as a fair value hedge for any reason, including termination and maturity, the remaining unamortized difference between the carrying value of the hedged item at that time and the face value of the hedged item is amortized to earnings over the remaining life of the hedged item, or immediately if the hedged item has matured or been extinguished. The effects of fair value hedges on our consolidated statements of operations, recognized in interest expense, were not significant for the periods presented. 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), net. For derivative instruments without hedge accounting designation, we recognized gains of $21 million and losses of $32 million for 2020 and 2019, respectively. The amounts recognized in 2021 were not significant. 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.”) We recognized losses $14 million and $58 million for 2020 and 2019, respectively, in other non-operating income (expense), net for the changes in fair value of the derivative settlement obligations. The amounts recognized in 2021 were not significant. Derivative Counterparty Credit Risk and Master Netting Arrangements Our derivative instruments expose us to credit risk to the extent counterparties may be unable to meet the terms of the contracts. Our maximum exposure to loss due to credit risk if counterparties fail completely to perform according to the terms of the contracts would generally equal the fair value of assets for these contracts as listed in the tables above. We seek to mitigate such risk by limiting our counterparties to major financial institutions and by spreading risk across multiple financial institutions. As of September 2, 2021 and September 3, 2020, amounts netted under our master netting arrangements were not significant. |
Equity Plans
Equity Plans | 12 Months Ended |
Sep. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans As of September 2, 2021, 104 million shares of our common stock were available for future awards under our equity plans, including 23 million shares approved for issuance under our employee stock purchase plan (“ESPP”). Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”) As of September 2, 2021, there were 20 million shares of Restricted Stock Awards outstanding, 17 million of which contained only service conditions. For service-based Restricted Stock Awards, restrictions generally lapse in one-fourth or one-third increments during each year of employment after the grant date. Restrictions generally lapse on Restricted Stock with performance or market conditions as conditions are met over a 3-year period. At the end of the performance period, the number of actual shares to be awarded will vary between 0% and 200% of target amounts, depending upon the achievement level. Restricted Stock Awards activity for 2021 is summarized as follows: Number of Shares Weighted-Average Grant Date Fair Value Per Share Outstanding as of September 3, 2020 17 $ 42.13 Granted 11 53.58 Restrictions lapsed (6) 38.99 Canceled (2) 41.54 Outstanding as of September 2, 2021 20 49.39 For the year ended 2021 2020 2019 Restricted stock award shares granted 11 8 9 Weighted-average grant-date fair value per share $ 53.58 $ 46.44 $ 41.11 Aggregate vesting-date fair value of shares vested $ 385 $ 294 $ 248 Employee Stock Purchase Plan (“ESPP”) Our ESPP was offered to substantially all employees beginning in August 2018 and permitted eligible employees to purchase shares of our common stock through payroll deductions of up to 10% of their eligible compensation, subject to certain limitations prior to August 2021. Beginning in August 2021, employees are permitted to deduct up to 15% of their eligible compensation to purchase shares under the ESPP. The purchase price of the shares under the ESPP equals 85% of the lower of the fair market value of our common stock on either the first or last day of each six For the year ended 2021 2020 2019 Weighted-average grant-date fair value per share $ 20.71 $ 14.24 $ 11.60 Average expected life in years 0.5 0.5 0.5 Weighted-average expected volatility 41 % 45 % 45 % Weighted-average risk-free interest rate 0.1 % 0.8 % 2.2 % Expected dividend yield 0.3 % 0.0 % 0.0 % Under the ESPP, employees purchased 3 million shares of common stock for $140 million in 2021 and 3 million shares for $118 million in 2020. Stock Options As of September 2, 2021, stock options of 4 million shares were outstanding, which are generally exercisable in increments of either one-fourth or one-third per year beginning one year from the date of grant. Stock options expire 8 years from the date of grant. We did not grant any stock options in 2021 or 2020 and options granted in 2019 were not material. Stock options of 3 million shares were exercised in 2021. The total intrinsic value for options exercised was $143 million, $130 million, and $108 million in 2021, 2020, and 2019, respectively. Stock-based Compensation Expense For the year ended 2021 2020 2019 Stock-based compensation expense by caption Cost of goods sold $ 186 $ 139 $ 102 Research and development 110 86 68 Selling, general, and administrative 99 103 73 $ 395 $ 328 $ 243 Stock-based compensation expense by type of award Restricted stock awards $ 333 $ 272 $ 178 ESPP 52 39 32 Stock options 10 17 33 $ 395 $ 328 $ 243 Income tax benefits related to the tax deductions for share-based awards are recognized only upon the settlement of the related share-based awards. Income tax benefits for share-based awards were $83 million, $72 million, and $66 million for 2021, 2020, and 2019, respectively. Stock-based compensation expense of $30 million and $42 million was capitalized and remained in inventory as of September 2, 2021 and September 3, 2020, respectively. As of September 2, 2021, $691 million of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the fourth quarter of 2025, resulting in a weighted-average period of 1.2 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 02, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have employee retirement plans at our U.S. and international sites. Details of significant plans are as follows: Employee Savings Plan for U.S. Employees We have a 401(k) retirement plan under which U.S. employees may contribute up to 75% of their eligible pay, subject to Internal Revenue Service annual contribution limits, to various savings alternatives, none of which include direct investment in our stock. We match in cash eligible contributions from employees up to 5% of the employee’s annual eligible earnings. Contribution expense for the 401(k) plan was $77 million, $66 million, and $67 million in 2021, 2020, and 2019, respectively. Retirement Plans We have pension plans available to employees at various foreign sites. As of September 2, 2021, the projected benefit obligations of our plans were $222 million and plan assets were $256 million. As of September 3, 2020, the projected benefit obligations of our plans were $202 million and plan assets were $222 million. Pension expense was not material for 2021, 2020, or 2019. |
Revenue and Customer Contract L
Revenue and Customer Contract Liabilities | 12 Months Ended |
Sep. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Customer Contract Liabilities | Revenue and Customer Contract Liabilities Revenue by Technology Revenue by technology is presented in the table below: For the year ended 2021 2020 2019 DRAM $ 20,039 $ 14,510 $ 16,841 NAND 7,007 6,131 5,355 Other (primarily 3D XPoint memory and NOR) 659 794 1,210 $ 27,705 $ 21,435 $ 23,406 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 amounts for 2019 in the table above have been conformed to the current period presentation. See “Segment and Other Information” for disclosure of disaggregated revenue by market segment. Customer Contract Liabilities 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 recognized during 2021 from the ending balance of 2020 included $64 million from meeting performance obligations of other contract liabilities and shipments against customer advances. The following table presents contract liabilities: As of 2021 2020 Contract liabilities from customer advances $ 74 $ 40 Other contract liabilities — 25 $ 74 $ 65 Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Substantially all contracts with our customers are short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. From time to time, we have contracts with initial terms that include performance obligations that extend beyond one year. As of September 2, 2021, our future performance obligations were $117 million , substantially all of which are expected to be recognized as revenue within one year. As of September 2, 2021 and September 3, 2020, other current liabilities included $846 million and $466 million for estimates of consideration payable to customers, respectively, including estimates for pricing adjustments and returns. |
Restructure and Asset Impairmen
Restructure and Asset Impairments | 12 Months Ended |
Sep. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructure and Asset Impairments | Restructure and Asset Impairments For the year ended 2021 2020 2019 Restructure and asset impairments $ 488 $ 60 $ (29) |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 12 Months Ended |
Sep. 02, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net For the year ended 2021 2020 2019 Patent license charges $ 128 $ — $ — (Gain) loss on disposition of property, plant, and equipment (24) (3) 43 Other (9) 11 35 $ 95 $ 8 $ 78 |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 12 Months Ended |
Sep. 02, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense), Net | Other Non-Operating Income (Expense), Net For the year ended 2021 2020 2019 Gain (loss) on investments $ 82 $ 22 $ (4) Gain (loss) on debt prepayments, repurchases, and conversions (1) 40 (396) Other — (2) (5) $ 81 $ 60 $ (405) |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax (provision) benefit consisted of the following: For the year ended 2021 2020 2019 Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees U.S. $ (211) $ 308 $ (67) Foreign 6,429 2,675 7,115 $ 6,218 $ 2,983 $ 7,048 Income tax (provision) benefit Current U.S. federal $ (42) $ (20) $ (36) State (1) (2) (2) Foreign (370) (148) (319) (413) (170) (357) Deferred U.S. federal (9) 39 (146) State 28 23 91 Foreign — (172) (281) 19 (110) (336) Income tax (provision) benefit $ (394) $ (280) $ (693) The table below reconciles our tax (provision) benefit based on the U.S. federal statutory rate to our effective rate: For the year ended 2021 2020 2019 U.S. federal income tax (provision) benefit at statutory rate $ (1,306) 21.0 % $ (626) 21.0 % $ (1,480) 21.0 % Change in unrecognized tax benefits (238) 3.8 % (33) 1.1 % (59) 0.8 % U.S. tax on foreign operations (226) 3.6 % (14) 0.5 % (327) 4.6 % Foreign tax rate differential 951 (15.3) % 253 (8.5) % 993 (14.1) % Debt premium deductions 130 (2.1) % — — % — — % Research and development tax credits 123 (2.0) % 62 (2.1) % 92 (1.3) % Change in valuation allowance 54 (0.9) % (20) 0.7 % (40) 0.6 % State taxes, net of federal benefit 59 (0.9) % 23 (0.8) % 102 (1.4) % Foreign derived intangible income deduction 18 (0.3) % 67 (2.2) % — — % Other 41 (0.6) % 8 (0.3) % 26 (0.4) % Income tax (provision) benefit $ (394) 6.3 % $ (280) 9.4 % $ (693) 9.8 % We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $758 million (benefiting our diluted earnings per share by $0.66) for 2021, by $215 million ($0.19 per diluted share) for 2020, and by $756 million ($0.66 per diluted share) for 2019. As of September 2, 2021, certain non-U.S. subsidiaries had cumulative undistributed earnings of $3.53 billion that were deemed to be indefinitely reinvested. A provision has not been recognized to the extent that distributions from such subsidiaries are subject to additional foreign withholding or state income tax. Determination of the amount of unrecognized deferred tax liabilities related to investments in these foreign subsidiaries is not practicable. Pursuant to SEC Staff Accounting Bulletin No. 118, measurement period adjustments in 2019 related to the Tax Cuts and Jobs Act included $47 million of benefit for the repatriation tax, net of adjustments related to uncertain tax positions. We recognize the foreign minimum tax in the period the tax is incurred. Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes as well as carryforwards. Deferred tax assets and liabilities consist of the following: As of 2021 2020 Deferred tax assets Net operating loss and tax credit carryforwards $ 783 $ 912 Accrued salaries, wages, and benefits 206 176 Operating lease liabilities 109 114 Property, plant, and equipment 37 — Other 115 91 Gross deferred tax assets 1,250 1,293 Less valuation allowance (233) (294) Deferred tax assets, net of valuation allowance 1,017 999 Deferred tax liabilities Right-of-use assets (90) (95) Product and process technology (12) (57) Property, plant, and equipment — (50) Other (143) (99) Deferred tax liabilities (245) (301) Net deferred tax assets $ 772 $ 698 Reported as Deferred tax assets $ 782 $ 707 Deferred tax liabilities (included in other noncurrent liabilities) (10) (9) Net deferred tax assets $ 772 $ 698 We assess positive and negative evidence for each jurisdiction to determine whether it is more likely than not that existing deferred tax assets will be realized. As of September 2, 2021, and September 3, 2020, we had a valuation allowance of $233 million and $294 million, respectively, against our net deferred tax assets, primarily related to carryforwards in Malaysia and Japan. Changes in 2021 in the valuation allowance were due to loss expirations during the year, offset by adjustments based on management’s assessment of tax credits, allowances and net operating losses that are more likely than not to be realized. As of September 2, 2021, our net operating loss carryforward amounts and expiration periods, as reported to tax authorities, were as follows: Year of Expiration State Japan Malaysia Singapore Other Total 2022 - 2026 $ 49 $ 617 $ — $ — $ 1 $ 667 2027 - 2031 537 — — — — 537 2032 - 2036 355 — — — — 355 2037 - 2041 61 — — — — 61 Indefinite 1 — 606 477 7 1,091 $ 1,003 $ 617 $ 606 $ 477 $ 8 $ 2,711 As of September 2, 2021, our federal and state tax credit carryforward amounts and expiration periods, as reported to tax authorities, were as follows: Year of Tax Credit Expiration U.S. Federal State Total 2022 - 2026 $ — $ 45 $ 45 2027 - 2031 — 84 84 2032 - 2036 32 132 164 2037 - 2041 364 5 369 Indefinite — 104 104 $ 396 $ 370 $ 766 Below is a reconciliation of the beginning and ending amount of our unrecognized tax benefits: For the year ended 2021 2020 2019 Beginning unrecognized tax benefits $ 411 $ 383 $ 261 Increases related to tax positions from prior years 2 14 124 Increases related to tax positions taken in current year 260 27 44 Decreases related to tax positions from prior years (13) (13) (46) Ending unrecognized tax benefits $ 660 $ 411 $ 383 As of September 2, 2021, gross unrecognized tax benefits were $660 million, substantially all of which would affect our effective tax rate in the future, if recognized. Increases to unrecognized tax benefits were primarily due to tax return positions taken during 2021. Amounts accrued for interest and penalties related to uncertain tax positions were not significant for any period presented. The resolution of tax audits or expiration of statute of limitations could also reduce our unrecognized tax benefits. Although the timing of final resolution is uncertain, the estimated potential reduction in our unrecognized tax benefits in the next 12 months would not be significant. We and our subsidiaries file income tax returns with the U.S. federal government, various U.S. states, and various foreign jurisdictions throughout the world. We regularly engage in discussions and negotiations with tax authorities regarding tax matters, including transfer pricing, and we continue to defend any and all such claims presented. Our U.S. federal and state tax returns remain open to examination for 2017 through 2021. We are currently under audit by the Internal Revenue Service for our 2018 and 2019 tax years. In addition, tax returns that remain open to examination in Singapore, Taiwan and Japan range from the years 2015 to 2021. We believe that adequate amounts of taxes and related interest and penalties have been provided, and any adjustments as a result of examinations are not expected to materially adversely affect our business, results of operations, or financial condition. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 02, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the year ended 2021 2020 2019 Net income attributable to Micron – Basic $ 5,861 $ 2,687 $ 6,313 Assumed conversion of debt — (4) (12) Net income attributable to Micron – Diluted $ 5,861 $ 2,683 $ 6,301 Weighted-average common shares outstanding – Basic 1,120 1,110 1,114 Dilutive effect of equity plans and convertible notes 21 21 29 Weighted-average common shares outstanding – Diluted 1,141 1,131 1,143 Earnings per share Basic $ 5.23 $ 2.42 $ 5.67 Diluted 5.14 2.37 5.51 Antidilutive potential common shares excluded from the computation of diluted earnings per share, that could dilute basic earnings per share in the future, were as follows at the end of the periods shown: For the year ended 2021 2020 2019 Equity plans 2 5 8 |
Segment and Other Information
Segment and Other Information | 12 Months Ended |
Sep. 02, 2021 | |
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. Mobile Business Unit (“MBU”) : Includes memory and storage 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, and other discrete storage products sold in component and wafer form. 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. As of September 2, 2021 and September 3, 2020, CNBU, MBU, SBU, and EBU had goodwill of $832 million, $198 million, $101 million, and $97 million, respectively. For the year ended 2021 2020 2019 Revenue CNBU $ 12,280 $ 9,184 $ 9,968 MBU 7,203 5,702 6,403 SBU 3,973 3,765 3,826 EBU 4,209 2,759 3,137 All Other 40 25 72 $ 27,705 $ 21,435 $ 23,406 Operating income (loss) CNBU $ 4,295 $ 2,010 $ 4,645 MBU 2,173 1,074 2,606 SBU 173 36 (386) EBU 1,006 301 923 All Other 20 (2) 13 7,667 3,419 7,801 Unallocated Stock-based compensation (395) (328) (243) Inventory accounting policy change to FIFO (133) — — Change in inventory cost absorption (160) — — 3D XPoint inventory write-down (49) — — Restructure and asset impairments (488) (60) 32 Patent license charges (128) — — Employee severance — — (116) Other (31) (28) (98) (1,384) (416) (425) Operating income $ 6,283 $ 3,003 $ 7,376 Depreciation and amortization expense included in operating income was as follows: For the year ended 2021 2020 2019 CNBU $ 2,497 $ 2,318 $ 1,833 MBU 1,101 1,436 1,235 SBU 1,028 1,115 1,555 EBU 1,553 741 748 All Other 8 12 27 Unallocated 27 28 26 $ 6,214 $ 5,650 $ 5,424 |
Certain Concentrations
Certain Concentrations | 12 Months Ended |
Sep. 02, 2021 | |
Risks and Uncertainties [Abstract] | |
Certain Concentrations | Certain Concentrations Revenue by market segment as an approximate percent of total revenue is presented in the table below: For the year ended 2021 2020 2019 Mobile 25 % 25 % 25 % Client and graphics 20 % 20 % 20 % Enterprise and cloud server 20 % 20 % 20 % SSDs and other storage 15 % 20 % 15 % Automotive, industrial, and consumer 15 % 15 % 15 % Revenue from WPG Holdings Limited was 13% of total revenue in 2021. Revenue from Kingston Technology Company, Inc. was 11% of total revenue for 2020 and 2019. Revenue from Huawei Technologies Co. Ltd. was 12% of total revenue for 2019. Our sales to WPG were included in our MBU, CNBU, EBU, and SBU segments; our sales to Kingston were included in our CNBU, MBU, and SBU segments; and our sales to Huawei were included in our MBU, CNBU, SBU, and EBU segments. We generally have multiple sources of supply for our raw materials and production equipment; however, only a limited number of suppliers are capable of delivering certain raw materials and production equipment that meet our standards and, in some cases, materials or production equipment are provided by a single supplier. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, money market accounts, certificates of deposit, fixed-rate debt securities, trade receivables, share repurchase, and derivative contracts. We invest through high-credit-quality financial institutions and, by policy, generally limit the concentration of credit exposure by restricting investments with any single obligor and monitoring credit risk of bank counterparties on an ongoing basis. A concentration of credit risk may exist with respect to receivables of certain customers. We perform ongoing credit evaluations of customers worldwide and generally do not require collateral from our customers. Historically, we have not experienced material losses on receivables. A concentration of risk may also exist with respect to our foreign currency hedges as the number of counterparties to our hedges is limited and the notional amounts are relatively large. We seek to mitigate such risk by limiting our counterparties to major financial institutions and through entering into master netting arrangements. |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 02, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue based on the geographic location of our customers’ headquarters was as follows: For the year ended 2021 2020 2019 United States $ 12,155 $ 10,381 $ 12,451 Taiwan 6,606 3,657 2,703 Mainland China (excluding Hong Kong) 2,456 2,337 3,595 Hong Kong 2,582 1,792 1,614 Japan 1,652 1,387 958 Other Asia Pacific 1,420 1,157 1,032 Other 834 724 1,053 $ 27,705 $ 21,435 $ 23,406 Long-lived assets by geographic area consisted of property, plant, and equipment and right-of-use assets and were as follows: As of 2021 2020 Taiwan $ 11,457 $ 10,516 Singapore 9,411 8,161 Japan 7,222 6,478 United States (1) 5,205 5,434 Malaysia 757 385 China 436 478 Other 175 163 $ 34,663 $ 31,615 (1) Included $899 million (net of impairment) as of September 2, 2021 of property, plant, and equipment for our Lehi facility that was classified as held for sale and presented in other current assets. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 02, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Charged Currency Balance at Deferred Tax Asset Valuation Allowance Year ended September 2, 2021 $ 294 $ (54) $ (7) $ 233 Year ended September 3, 2020 277 20 (3) 294 Year ended August 29, 2019 228 40 9 277 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 02, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include the accounts of Micron Technology, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America. |
Intercompany Eliminations | Intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Certain reclassifications have been made to prior period amounts to conform to current period presentation. See “Inventories” below for changes to our significant accounting policies, and the “Inventories” note for additional information. |
Fiscal Period | Our fiscal year is the 52 or 53-week period ending on the Thursday closest to August 31. Fiscal 2021 contained 52 weeks, fiscal 2020 contained 53 weeks, and fiscal 2019 contained 52 weeks. Our fourth quarter of fiscal 2020 contained 14 weeks and all other fiscal quarters in the years presented contained 13 weeks. All period references are to our fiscal periods unless otherwise indicated. |
Derivative and Hedging Instruments | Derivative and Hedging Instruments We use derivative instruments to manage our exposure to changes in currency exchange rates from (1) our monetary assets and liabilities denominated in currencies other than the U.S. dollar and (2) forecasted cash flows for certain capital expenditures and manufacturing costs. We also use derivative instruments to manage our exposure to changes in commodity prices for manufacturing supplies and to minimize certain exposures to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. Derivative instruments are measured at their fair values and recognized as either assets or liabilities. The accounting for changes in the fair value of derivative instruments is based on the intended use of the derivative and the resulting designation. For derivative instruments that are not designated for hedge accounting, gains or losses from changes in fair values are recognized in other non-operating income (expense). For derivative instruments designated as cash flow hedges, gains or losses are included as a component of accumulated other comprehensive income and reclassified into earnings in the same line items and in the same periods in which the underlying transactions affect earnings. For derivative instruments designated as cash flow hedges, time value is excluded from the assessment of effectiveness and the gains and losses attributable to time value are recognized in earnings. For derivative instruments designated as fair value hedges, changes in the fair values of the derivative instruments and the offsetting changes in the fair values of the underlying hedged items are both recognized in earnings. We enter into master netting arrangements with our counterparties to mitigate credit risk in derivative hedge transactions. These master netting arrangements allow us and our counterparties to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled with each counterparty have been presented in our consolidated balance sheet on a net basis. |
Financial Instruments, Cash Equivalents | Financial InstrumentsCash equivalents include highly liquid short-term investments with original maturities to us of three months or less that are readily convertible to known amounts of cash. |
Financial Instruments, Investments | Financial Instruments Cash equivalents include highly liquid short-term investments with original maturities to us of three months or less that are readily convertible to known amounts of cash. Other investments with remaining maturities of less than one year are included in short-term investments. Investments with remaining maturities greater than one year are included in long-term marketable investments. The carrying value of investment securities sold is determined using the specific identification method. |
Functional Currency | Functional Currency The U.S. dollar is the functional currency for us and all of our consolidated subsidiaries. |
Goodwill | Goodwill We perform an annual impairment assessment for goodwill in our fourth quarter each year. |
Government Incentives | Government Incentives We receive incentives from governmental entities related to expenses, assets, and other activities. Our government incentives may require that we meet or maintain specified spending levels and other operational metrics and may be subject to reimbursement if such conditions are not met or maintained. Government incentives are recorded in the financial statements in accordance with their purpose: as a reduction of expenses, a reduction of asset costs, or other income. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred. Incentives related to the acquisition or construction of fixed assets are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets. Other incentives are recognized as other operating income. Government incentives received prior to being earned are recognized in current or noncurrent deferred income, whereas government incentives earned prior to being received are recognized in current or noncurrent receivables. Cash received from government incentives related to operating expenses is included as an operating activity in the statement of cash flows, whereas cash received from incentives related to the acquisition of property, plant, and equipment is included as an investing activity. |
Inventories | Inventories Effective as of the beginning of the second quarter of 2021, we changed the method of inventory costing from average cost to FIFO. The difference between average cost and FIFO was not material to any previously reported financial statements. Therefore, we have recognized the cumulative effect of the change as a reduction of inventories and a charge to cost of goods sold of $133 million as of the beginning of the second quarter of 2021. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a FIFO basis. Cost includes depreciation, labor, material, and overhead costs, including product and process technology costs. When net realizable value (which requires projecting future average selling prices, sales volumes, and costs to complete products in work in process inventories) is below cost, we record a charge to cost of goods sold to write down inventories to their estimated net realizable value in advance of when inventories are actually sold. We review the major characteristics of product type and markets in determining the unit of account for which we perform the lower of cost or net realizable value analysis and categorize all inventories (including DRAM, NAND, and other memory) as a single group. We remove amounts from inventory and charge such amounts to cost of goods sold on a FIFO basis. |
Leases | Leases We adopted ASC 842 in the first quarter of 2020 under the modified retrospective method and elected to not recast prior periods. We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluate whether the lease is an operating lease or a finance lease at the commencement date. We recognize right-of-use assets and lease liabilities for operating and finance leases with terms greater than 12 months. Right-of-use assets represent our right to use an asset for the lease term, while lease liabilities represent our obligation to make lease payments. We do not separate lease and non-lease components for real-estate and gas plant leases. Sublease income is presented within lease expense. |
Product and Process Technology | Product and Process Technology Costs incurred to (1) acquire product and process technology, (2) patent technology, and (3) maintain patent technology, are capitalized and amortized on a straight-line basis over periods ranging up to 12.5 years. We capitalize a portion of costs incurred to patent technology based on historical data of patents issued as a percent of patents we file. Product and process technology costs are amortized over the shorter of (1) the estimated useful life of the technology, (2) the patent term, or (3) the term of the technology agreement. Fully-amortized assets are removed from product and process technology and accumulated amortization. |
Product Warranty | Product Warranty We generally provide a limited warranty that our products are in compliance with applicable specifications existing at the time of delivery. Under our standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective items or return of, or a credit with respect to, amounts paid for such items. Under certain circumstances, we provide more extensive limited warranty coverage than that provided under our standard terms and conditions. Our warranty obligations are not material. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment is stated at cost and depreciated using the straight-line method over estimated useful lives of generally 10 to 30 years for buildings, 5 to 7 years for equipment, and 3 to 5 years for software. Assets held for sale are carried at the lower of estimated fair value or carrying value and are included in current assets. When property, plant, or equipment is retired or otherwise disposed, the net book value is removed and we recognize any gain or loss in results of operations. We capitalize interest on borrowings during the period of time we carry out the activities necessary to bring assets to the condition of their intended use and location. Capitalized interest becomes part of the cost of assets. |
Interest Capitalization, Policy | We capitalize interest on borrowings during the period of time we carry out the activities necessary to bring assets to the condition of their intended use and location. Capitalized interest becomes part of the cost of assets. |
Research and Development | Research and Development Costs related to the conceptual formulation and design of products and processes are charged to R&D expense as incurred. Development of a product is deemed complete when it is qualified through reviews and tests for performance and reliability. Subsequent to product qualification, product costs are included in cost of goods sold. Amounts from cost-sharing arrangements are reflected as a reduction of R&D expense. |
Revenue Recognition | Revenue Recognition Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Contracts with our customers are generally short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. We estimate a liability for returns using the expected value method based on historical returns. In addition, we generally offer price protection to our distributors, which is a form of variable consideration that decreases the transaction price. We use the expected value method, based on historical price adjustments and current pricing trends, to estimate the amount of revenue recognized from sales to distributors. Differences between the estimated and actual amounts are recognized as adjustments to revenue. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation is measured at the grant date, based on the fair value of the award, and recognized as expense under the straight-line attribution method over the requisite service period. We account for forfeitures as they occur. We issue new shares upon the exercise of stock options or conversion of share units. |
Treasury Stock | Treasury Stock Treasury stock is carried at cost. When we retire our treasury stock, any excess of the repurchase price paid over par value is allocated between additional capital and retained earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. Estimates and judgments are based on historical experience, forecasted events, and various other assumptions that we believe to be reasonable under the circumstances. Estimates and judgments may differ under different assumptions or conditions. We evaluate our estimates and judgments on an ongoing basis. Actual results could differ from estimates. |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 12 Months Ended |
Sep. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | We have interests in entities that are variable interest entities (“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. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 12 Months Ended |
Sep. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Policy | 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. |
Lehi, Utah Fab and 3D XPoint (T
Lehi, Utah Fab and 3D XPoint (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Lehi, Utah Facility | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Lehi, UT (Disposal Group) Assets Held for Sale | As of September 2, Property, plant, and equipment $ 1,334 Other current assets 50 Impairment (435) Lehi assets held for sale $ 949 |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
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: 2021 2020 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 $ 5,796 $ — $ — $ 5,796 $ 3,996 $ — $ — $ 3,996 Level 1 (2) Money market funds 38 — — 38 1,828 — — 1,828 Level 2 (3) Certificates of deposits 1,907 69 — 1,976 1,740 10 2 1,752 Corporate bonds 9 429 1,134 1,572 3 266 592 861 Asset-backed securities 8 95 509 612 1 31 211 243 Government securities 1 190 122 313 6 115 243 364 Commercial paper 4 87 — 91 50 96 — 146 7,763 $ 870 $ 1,765 $ 10,398 7,624 $ 518 $ 1,048 $ 9,190 Restricted cash (4) 66 66 Cash, cash equivalents, and restricted cash $ 7,829 $ 7,690 (1) The maturities of long-term marketable securities range from one four years. (2) The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets. (3) The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of September 2, 2021 or September 3, 2020. |
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: 2021 2020 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 $ 5,796 $ — $ — $ 5,796 $ 3,996 $ — $ — $ 3,996 Level 1 (2) Money market funds 38 — — 38 1,828 — — 1,828 Level 2 (3) Certificates of deposits 1,907 69 — 1,976 1,740 10 2 1,752 Corporate bonds 9 429 1,134 1,572 3 266 592 861 Asset-backed securities 8 95 509 612 1 31 211 243 Government securities 1 190 122 313 6 115 243 364 Commercial paper 4 87 — 91 50 96 — 146 7,763 $ 870 $ 1,765 $ 10,398 7,624 $ 518 $ 1,048 $ 9,190 Restricted cash (4) 66 66 Cash, cash equivalents, and restricted cash $ 7,829 $ 7,690 (1) The maturities of long-term marketable securities range from one four years. (2) The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets. (3) The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of September 2, 2021 or September 3, 2020. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Receivables [Abstract] | |
Schedule of Receivables | As of 2021 2020 Trade receivables $ 4,920 $ 3,494 Income and other taxes 264 232 Other 127 186 $ 5,311 $ 3,912 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of 2021 2020 Finished goods $ 513 $ 1,001 Work in process 3,469 3,854 Raw materials and supplies 505 518 $ 4,487 $ 5,373 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | As of 2021 2020 Land $ 280 $ 352 Buildings 14,776 13,981 Equipment (1) 51,902 48,525 Construction in progress (2) 1,517 1,600 Software 987 873 69,462 65,331 Accumulated depreciation (36,249) (34,300) $ 33,213 $ 31,031 (1) Includes costs related to equipment not placed into service of $1.99 billion as of September 2, 2021 and $1.63 billion as of September 3, 2020. (2) Includes building-related construction, tool installation, and software costs for assets not placed into service. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | 2021 2020 As of Gross Accumulated Gross Accumulated Product and process technology $ 633 $ (284) $ 616 $ (282) Goodwill 1,228 1,228 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | For the year ended 2021 2020 Finance lease cost Amortization of right-of-use asset $ 69 $ 140 Interest on lease liability 20 22 Operating lease cost 108 102 $ 197 $ 264 |
Schedule of Other Lease Information | Supplemental cash flow information related to leases was as follows: For the year ended 2021 2020 Cash flows used for operating activities Finance leases $ 21 $ 24 Operating leases (1) 106 39 Cash flows used for financing activities from financing leases 85 248 Noncash acquisitions of right-of-use assets Finance leases 395 107 Operating leases 27 11 (1) Includes $48 million of reimbursements received for tenant improvements for 2020. Supplemental balance sheet information related to leases was as follows: As of 2021 2020 Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale) $ 766 $ 426 Current operating lease liabilities (included in accounts payable and accrued expenses) 55 54 Weighted-average remaining lease term (in years) Finance leases 5 5 Operating leases 7 7 Weighted-average discount rate Finance leases 3.14 % 4.51 % Operating leases 2.63 % 2.67 % |
Schedule of Operating Lease Maturities | For the year ending Finance Leases Operating Leases 2022 $ 127 $ 68 2023 115 69 2024 89 61 2025 74 50 2026 74 47 2027 and thereafter 454 372 Less imputed interest (130) (108) $ 803 $ 559 |
Schedule of Finance Lease Maturities | For the year ending Finance Leases Operating Leases 2022 $ 127 $ 68 2023 115 69 2024 89 61 2025 74 50 2026 74 47 2027 and thereafter 454 372 Less imputed interest (130) (108) $ 803 $ 559 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable And Accrued Expenses | As of 2021 2020 Accounts payable $ 1,744 $ 2,191 Property, plant, and equipment 1,887 2,374 Salaries, wages, and benefits 984 849 Income and other taxes 364 237 Other 346 166 $ 5,325 $ 5,817 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | 2021 2020 Net Carrying Amount Net Carrying Amount As of Stated Rate Effective Rate Principal Current Long-Term Total Principal Current Long-Term Total Finance lease obligations N/A 3.14 % $ 803 $ 154 $ 649 $ 803 $ 486 $ 76 $ 410 $ 486 2023 Notes 2.497 % 2.64 % 1,250 — 1,247 1,247 1,250 — 1,245 1,245 2024 Notes 4.640 % 4.76 % 600 — 598 598 600 — 598 598 2024 Term Loan A 0.975 % 1.01 % 1,188 — 1,186 1,186 — — — — 2026 Notes 4.975 % 5.07 % 500 — 498 498 500 — 498 498 2027 Notes (1) 4.185 % 4.27 % 900 — 901 901 900 — 895 895 2029 Notes 5.327 % 5.40 % 700 — 696 696 700 — 696 696 2030 Notes 4.663 % 4.73 % 850 — 846 846 850 — 845 845 2032D Notes N/A N/A — — — — 134 131 — 131 Extinguished 2024 Term Loan A N/A N/A — — — — 1,250 62 1,186 1,248 Other N/A N/A 1 1 — 1 1 1 — 1 $ 6,792 $ 155 $ 6,621 $ 6,776 $ 6,671 $ 270 $ 6,373 $ 6,643 |
Schedule of Debt Activity | Increase (Decrease) in Principal Increase (Decrease) in Carrying Value Increase (Decrease) in Cash Decrease in Equity Gain (Loss) Issuance of 2024 Term Loan A $ 1,188 $ 1,186 $ 1,186 $ — $ — Prepayment of Extinguished 2024 Term Loan A (1,188) (1,186) (1,188) — (2) Settlement of Conversions of 2032D Notes (1) (134) (134) (185) (52) 1 $ (134) $ (134) $ (187) $ (52) $ (1) |
Schedule of Maturities of Notes Payable | As of September 2, 2021, maturities of notes payable were as follows: 2022 $ 1 2023 1,250 2024 600 2025 1,188 2026 500 2027 and thereafter 2,450 Unamortized discounts (21) $ 5,968 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Gains (Losses) on Derivative Instruments Pension Liability Adjustments Unrealized Gains (Losses) on Investments Cumulative Foreign Currency Translation Adjustment Total As of September 3, 2020 $ 45 $ 19 $ 8 $ (1) $ 71 Other comprehensive income before reclassifications (52) 8 (6) 2 (48) Amount reclassified out of accumulated other comprehensive income (41) (1) (3) — (45) Tax effects 26 (4) 2 — 24 Other comprehensive income (loss) (67) 3 (7) 2 (69) As of September 2, 2021 $ (22) $ 22 $ 1 $ 1 $ 2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value and Carrying Value of Debt Instruments | 2021 2020 As of Fair Carrying Fair Carrying Notes $ 6,584 $ 5,973 $ 6,710 $ 6,026 Convertible notes — — 634 131 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Notional or Contractual Amount Fair Value of Assets (1) Liabilities (2) As of September 2, 2021 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 3,601 $ 10 $ (66) Cash flow commodity hedges 45 2 — Fair value interest rate hedges 900 5 — Derivative instruments without hedge accounting designation Non-designated currency hedges 996 3 (2) $ 20 $ (68) As of September 3, 2020 Derivative instruments with hedge accounting designation Cash flow currency hedges $ 1,845 $ 41 $ (2) Derivative instruments without hedge accounting designation Non-designated currency hedges 1,587 4 (1) $ 45 $ (3) (1) Included in receivables – other and other noncurrent assets. (2) Included in accounts payable and accrued expenses – other and other noncurrent liabilities. |
Equity Plans (Tables)
Equity Plans (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards Activity | Number of Shares Weighted-Average Grant Date Fair Value Per Share Outstanding as of September 3, 2020 17 $ 42.13 Granted 11 53.58 Restrictions lapsed (6) 38.99 Canceled (2) 41.54 Outstanding as of September 2, 2021 20 49.39 For the year ended 2021 2020 2019 Restricted stock award shares granted 11 8 9 Weighted-average grant-date fair value per share $ 53.58 $ 46.44 $ 41.11 Aggregate vesting-date fair value of shares vested $ 385 $ 294 $ 248 |
Employee Stock Purchase Plan Valuation Assumptions | For the year ended 2021 2020 2019 Weighted-average grant-date fair value per share $ 20.71 $ 14.24 $ 11.60 Average expected life in years 0.5 0.5 0.5 Weighted-average expected volatility 41 % 45 % 45 % Weighted-average risk-free interest rate 0.1 % 0.8 % 2.2 % Expected dividend yield 0.3 % 0.0 % 0.0 % |
Stock-based Compensation Expense | For the year ended 2021 2020 2019 Stock-based compensation expense by caption Cost of goods sold $ 186 $ 139 $ 102 Research and development 110 86 68 Selling, general, and administrative 99 103 73 $ 395 $ 328 $ 243 Stock-based compensation expense by type of award Restricted stock awards $ 333 $ 272 $ 178 ESPP 52 39 32 Stock options 10 17 33 $ 395 $ 328 $ 243 |
Revenue and Customer Contract_2
Revenue and Customer Contract Liabilities (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the year ended 2021 2020 2019 DRAM $ 20,039 $ 14,510 $ 16,841 NAND 7,007 6,131 5,355 Other (primarily 3D XPoint memory and NOR) 659 794 1,210 $ 27,705 $ 21,435 $ 23,406 |
Contract Liabilities | As of 2021 2020 Contract liabilities from customer advances $ 74 $ 40 Other contract liabilities — 25 $ 74 $ 65 |
Restructure and Asset Impairm_2
Restructure and Asset Impairments (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructure and Asset Impairments | For the year ended 2021 2020 2019 Restructure and asset impairments $ 488 $ 60 $ (29) |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | For the year ended 2021 2020 2019 Patent license charges $ 128 $ — $ — (Gain) loss on disposition of property, plant, and equipment (24) (3) 43 Other (9) 11 35 $ 95 $ 8 $ 78 |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense), Net (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense), Net | For the year ended 2021 2020 2019 Gain (loss) on investments $ 82 $ 22 $ (4) Gain (loss) on debt prepayments, repurchases, and conversions (1) 40 (396) Other — (2) (5) $ 81 $ 60 $ (405) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (loss) Before Tax and Other Items | Our income tax (provision) benefit consisted of the following: For the year ended 2021 2020 2019 Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees U.S. $ (211) $ 308 $ (67) Foreign 6,429 2,675 7,115 $ 6,218 $ 2,983 $ 7,048 Income tax (provision) benefit Current U.S. federal $ (42) $ (20) $ (36) State (1) (2) (2) Foreign (370) (148) (319) (413) (170) (357) Deferred U.S. federal (9) 39 (146) State 28 23 91 Foreign — (172) (281) 19 (110) (336) Income tax (provision) benefit $ (394) $ (280) $ (693) |
Schedule of Components of Income Tax (Provision) Benefit | Our income tax (provision) benefit consisted of the following: For the year ended 2021 2020 2019 Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees U.S. $ (211) $ 308 $ (67) Foreign 6,429 2,675 7,115 $ 6,218 $ 2,983 $ 7,048 Income tax (provision) benefit Current U.S. federal $ (42) $ (20) $ (36) State (1) (2) (2) Foreign (370) (148) (319) (413) (170) (357) Deferred U.S. federal (9) 39 (146) State 28 23 91 Foreign — (172) (281) 19 (110) (336) Income tax (provision) benefit $ (394) $ (280) $ (693) |
Schedule of Effective Income Tax Reconciliation | The table below reconciles our tax (provision) benefit based on the U.S. federal statutory rate to our effective rate: For the year ended 2021 2020 2019 U.S. federal income tax (provision) benefit at statutory rate $ (1,306) 21.0 % $ (626) 21.0 % $ (1,480) 21.0 % Change in unrecognized tax benefits (238) 3.8 % (33) 1.1 % (59) 0.8 % U.S. tax on foreign operations (226) 3.6 % (14) 0.5 % (327) 4.6 % Foreign tax rate differential 951 (15.3) % 253 (8.5) % 993 (14.1) % Debt premium deductions 130 (2.1) % — — % — — % Research and development tax credits 123 (2.0) % 62 (2.1) % 92 (1.3) % Change in valuation allowance 54 (0.9) % (20) 0.7 % (40) 0.6 % State taxes, net of federal benefit 59 (0.9) % 23 (0.8) % 102 (1.4) % Foreign derived intangible income deduction 18 (0.3) % 67 (2.2) % — — % Other 41 (0.6) % 8 (0.3) % 26 (0.4) % Income tax (provision) benefit $ (394) 6.3 % $ (280) 9.4 % $ (693) 9.8 % |
Schedule of Deferred Tax Assets and Liabilities | As of 2021 2020 Deferred tax assets Net operating loss and tax credit carryforwards $ 783 $ 912 Accrued salaries, wages, and benefits 206 176 Operating lease liabilities 109 114 Property, plant, and equipment 37 — Other 115 91 Gross deferred tax assets 1,250 1,293 Less valuation allowance (233) (294) Deferred tax assets, net of valuation allowance 1,017 999 Deferred tax liabilities Right-of-use assets (90) (95) Product and process technology (12) (57) Property, plant, and equipment — (50) Other (143) (99) Deferred tax liabilities (245) (301) Net deferred tax assets $ 772 $ 698 Reported as Deferred tax assets $ 782 $ 707 Deferred tax liabilities (included in other noncurrent liabilities) (10) (9) Net deferred tax assets $ 772 $ 698 |
Schedule of Net Operating Loss Carryforwards | As of September 2, 2021, our net operating loss carryforward amounts and expiration periods, as reported to tax authorities, were as follows: Year of Expiration State Japan Malaysia Singapore Other Total 2022 - 2026 $ 49 $ 617 $ — $ — $ 1 $ 667 2027 - 2031 537 — — — — 537 2032 - 2036 355 — — — — 355 2037 - 2041 61 — — — — 61 Indefinite 1 — 606 477 7 1,091 $ 1,003 $ 617 $ 606 $ 477 $ 8 $ 2,711 |
Schedule of Tax Credit Carryforwards | As of September 2, 2021, our federal and state tax credit carryforward amounts and expiration periods, as reported to tax authorities, were as follows: Year of Tax Credit Expiration U.S. Federal State Total 2022 - 2026 $ — $ 45 $ 45 2027 - 2031 — 84 84 2032 - 2036 32 132 164 2037 - 2041 364 5 369 Indefinite — 104 104 $ 396 $ 370 $ 766 |
Schedule of Unrecognized Tax Benefits Rollforward | Below is a reconciliation of the beginning and ending amount of our unrecognized tax benefits: For the year ended 2021 2020 2019 Beginning unrecognized tax benefits $ 411 $ 383 $ 261 Increases related to tax positions from prior years 2 14 124 Increases related to tax positions taken in current year 260 27 44 Decreases related to tax positions from prior years (13) (13) (46) Ending unrecognized tax benefits $ 660 $ 411 $ 383 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | For the year ended 2021 2020 2019 Net income attributable to Micron – Basic $ 5,861 $ 2,687 $ 6,313 Assumed conversion of debt — (4) (12) Net income attributable to Micron – Diluted $ 5,861 $ 2,683 $ 6,301 Weighted-average common shares outstanding – Basic 1,120 1,110 1,114 Dilutive effect of equity plans and convertible notes 21 21 29 Weighted-average common shares outstanding – Diluted 1,141 1,131 1,143 Earnings per share Basic $ 5.23 $ 2.42 $ 5.67 Diluted 5.14 2.37 5.51 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Antidilutive potential common shares excluded from the computation of diluted earnings per share, that could dilute basic earnings per share in the future, were as follows at the end of the periods shown: For the year ended 2021 2020 2019 Equity plans 2 5 8 |
Segment and Other Information (
Segment and Other Information (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Results by Segment | For the year ended 2021 2020 2019 Revenue CNBU $ 12,280 $ 9,184 $ 9,968 MBU 7,203 5,702 6,403 SBU 3,973 3,765 3,826 EBU 4,209 2,759 3,137 All Other 40 25 72 $ 27,705 $ 21,435 $ 23,406 Operating income (loss) CNBU $ 4,295 $ 2,010 $ 4,645 MBU 2,173 1,074 2,606 SBU 173 36 (386) EBU 1,006 301 923 All Other 20 (2) 13 7,667 3,419 7,801 Unallocated Stock-based compensation (395) (328) (243) Inventory accounting policy change to FIFO (133) — — Change in inventory cost absorption (160) — — 3D XPoint inventory write-down (49) — — Restructure and asset impairments (488) (60) 32 Patent license charges (128) — — Employee severance — — (116) Other (31) (28) (98) (1,384) (416) (425) Operating income $ 6,283 $ 3,003 $ 7,376 Depreciation and amortization expense included in operating income was as follows: For the year ended 2021 2020 2019 CNBU $ 2,497 $ 2,318 $ 1,833 MBU 1,101 1,436 1,235 SBU 1,028 1,115 1,555 EBU 1,553 741 748 All Other 8 12 27 Unallocated 27 28 26 $ 6,214 $ 5,650 $ 5,424 |
Certain Concentrations (Tables)
Certain Concentrations (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of Market Concentration Risk | For the year ended 2021 2020 2019 Mobile 25 % 25 % 25 % Client and graphics 20 % 20 % 20 % Enterprise and cloud server 20 % 20 % 20 % SSDs and other storage 15 % 20 % 15 % Automotive, industrial, and consumer 15 % 15 % 15 % |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
Segment Reporting [Abstract] | |
Geographic Revenue from Contracts with Customers based on Location of Customer Headquarters | Revenue based on the geographic location of our customers’ headquarters was as follows: For the year ended 2021 2020 2019 United States $ 12,155 $ 10,381 $ 12,451 Taiwan 6,606 3,657 2,703 Mainland China (excluding Hong Kong) 2,456 2,337 3,595 Hong Kong 2,582 1,792 1,614 Japan 1,652 1,387 958 Other Asia Pacific 1,420 1,157 1,032 Other 834 724 1,053 $ 27,705 $ 21,435 $ 23,406 |
Long-lived Assets by Geographic Area | Long-lived assets by geographic area consisted of property, plant, and equipment and right-of-use assets and were as follows: As of 2021 2020 Taiwan $ 11,457 $ 10,516 Singapore 9,411 8,161 Japan 7,222 6,478 United States (1) 5,205 5,434 Malaysia 757 385 China 436 478 Other 175 163 $ 34,663 $ 31,615 (1) Included $899 million (net of impairment) as of September 2, 2021 of property, plant, and equipment for our Lehi facility that was classified as held for sale and presented in other current assets. |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 02, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Deferred Tax Asset Valuation Allowance | Balance at Charged Currency Balance at Deferred Tax Asset Valuation Allowance Year ended September 2, 2021 $ 294 $ (54) $ (7) $ 233 Year ended September 3, 2020 277 20 (3) 294 Year ended August 29, 2019 228 40 9 277 |
Significant Accounting Polici_3
Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 04, 2021 | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Inventories | $ 4,487 | $ 5,373 | ||
Cost of goods sold | $ 17,282 | $ 14,883 | $ 12,704 | |
Change in Accounting Principle, Inventory Method | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Inventories | $ (133) | |||
Cost of goods sold | $ 133 |
Significant Accounting Polici_4
Significant Accounting Policies - Product and Process Technology (Details) | 12 Months Ended |
Sep. 02, 2021 | |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Maximum life of product and process technology intangible assets (in years) | 12 years 6 months |
Significant Accounting Polici_5
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Sep. 02, 2021 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 30 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 5 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 7 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful life (in years) | 5 years |
Lehi, Utah Fab and 3D XPoint (D
Lehi, Utah Fab and 3D XPoint (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 03, 2021 | Mar. 04, 2021 | Sep. 02, 2021 | Jun. 30, 2021 | |
3D XPoint | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
3D XPoint inventory write-down | $ 49 | |||
Lehi, Utah Facility | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration for Lehi, UT facility | $ 900 | |||
Lehi held for sale write-down | $ 435 | $ 435 | ||
Tax benefit from write-down of Lehi assets | 104 | |||
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||||
Property, plant, and equipment | 1,334 | |||
Other current assets | 50 | |||
Impairment | $ (435) | (435) | ||
Lehi assets held for sale | 949 | |||
Lehi Finance Lease Liabilities | 50 | |||
Other Lehi liabilities | $ 11 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Oct. 30, 2019 | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 |
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||
Acquisition of noncontrolling interest in IMFT | $ 0 | $ 744 | $ 0 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interest | 784 | 16 | |||
Revenue | $ 27,705 | 21,435 | 23,406 | ||
Noncontrolling Interests in Subsidiaries | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interest | $ 904 | 17 | |||
Intel | IM Flash Technologies, LLC | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||
Revenue | $ 158 | $ 731 | |||
IM Flash Technologies, LLC | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||
Payments to Noncontrolling Interests, Purchase of Minority Interest and Repayment of Debt | $ 1,250 | ||||
Decrease in Noncontrolling Interest from Purchase of Interests in IMFT, Effect on APIC Before Tax | 160 | ||||
Acquisition of noncontrolling interest in IMFT | 744 | ||||
IM Flash Technologies, LLC | Noncontrolling Interests in Subsidiaries | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract] | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interest | $ 904 |
Cash and Investments (Details)
Cash and Investments (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | Aug. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 7,763 | $ 7,624 | |||
Short-term Investments | 870 | 518 | |||
Long-term Marketable Investments | [1] | 1,765 | 1,048 | ||
Total Fair Value | 10,398 | 9,190 | |||
Restricted cash | [2] | 66 | 66 | ||
Cash, cash equivalents, and restricted cash | $ 7,829 | 7,690 | $ 7,279 | $ 6,587 | |
Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt Securities, Available-for-sale, Term, Noncurrent | 1 year | ||||
Maximum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt Securities, Available-for-sale, Term, Noncurrent | 4 years | ||||
Cash | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | $ 5,796 | 3,996 | |||
Short-term Investments | 0 | 0 | |||
Long-term Marketable Investments | 0 | 0 | |||
Total Fair Value | 5,796 | 3,996 | |||
Money market funds | Level 1 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [3] | 38 | 1,828 | ||
Short-term Investments | [3] | 0 | 0 | ||
Long-term Marketable Investments | [1],[3] | 0 | 0 | ||
Total Fair Value | [3] | 38 | 1,828 | ||
Certificates of deposits | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 1,907 | 1,740 | ||
Short-term Investments | [4] | 69 | 10 | ||
Long-term Marketable Investments | [1],[4] | 0 | 2 | ||
Total Fair Value | [4] | 1,976 | 1,752 | ||
Corporate bonds | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 9 | 3 | ||
Short-term Investments | [4] | 429 | 266 | ||
Long-term Marketable Investments | [1],[4] | 1,134 | 592 | ||
Total Fair Value | [4] | 1,572 | 861 | ||
Asset-backed securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 8 | 1 | ||
Short-term Investments | [4] | 95 | 31 | ||
Long-term Marketable Investments | [1],[4] | 509 | 211 | ||
Total Fair Value | [4] | 612 | 243 | ||
Government securities | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 1 | 6 | ||
Short-term Investments | [4] | 190 | 115 | ||
Long-term Marketable Investments | [1],[4] | 122 | 243 | ||
Total Fair Value | [4] | 313 | 364 | ||
Commercial paper | Level 2 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cash and Equivalents | [4] | 4 | 50 | ||
Short-term Investments | [4] | 87 | 96 | ||
Long-term Marketable Investments | [1],[4] | 0 | 0 | ||
Total Fair Value | [4] | $ 91 | $ 146 | ||
[1] | The maturities of long-term marketable securities range from one four years. | ||||
[2] | Restricted cash is included in other noncurrent assets and primarily relates to certain government incentives received prior to being earned and for which restrictions lapse upon achieving certain performance conditions. | ||||
[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 analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of September 2, 2021 or September 3, 2020. |
Cash and Investments - Non Mark
Cash and Investments - Non Marketable Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 02, 2021 | Sep. 03, 2020 | |
Equity Securities, FV-NI and without Readily Determinable Fair Value [Abstract] | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 153 | $ 92 |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | $ 70 | $ 13 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Receivables [Abstract] | ||
Trade receivables | $ 4,920 | $ 3,494 |
Income and other taxes | 264 | 232 |
Other | 127 | 186 |
Receivables | $ 5,311 | $ 3,912 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Finished goods | $ 513 | $ 1,001 |
Work in process | 3,469 | 3,854 |
Raw materials and supplies | 505 | 518 |
Inventories | $ 4,487 | $ 5,373 |
Inventories - Change in Princip
Inventories - Change in Principle (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 04, 2021 | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Inventories | $ 4,487 | $ 5,373 | ||
Cost of goods sold | 17,282 | 14,883 | $ 12,704 | |
Net income | $ 5,861 | $ 2,687 | $ 6,313 | |
Diluted (in dollars per share) | $ 5.14 | $ 2.37 | $ 5.51 | |
Other current assets | $ 502 | $ 538 | ||
Raw materials and supplies | 505 | 518 | ||
Spare Parts | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other current assets | 254 | 234 | ||
Change in Accounting Principle, Inventory Method | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Inventories | $ (133) | |||
Cost of goods sold | 133 | |||
Net income | $ (128) | $ (128) | ||
Diluted (in dollars per share) | $ (0.11) | $ (0.11) | ||
Revision of Prior Period, Change in Accounting Principle, Adjustment | Change in Accounting Principle, Spare Parts Presentation | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Raw materials and supplies | $ (234) |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | ||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | $ 69,462 | $ 65,331 | ||
Accumulated depreciation | (36,249) | (34,300) | ||
Property, plant, and equipment, net | 33,213 | 31,031 | ||
Depreciation [Abstract] | ||||
Depreciation expense | 6,130 | 5,570 | $ 5,340 | |
Capitalized Interest Costs [Abstract] | ||||
Interest capitalized as part of the cost of property, plant, and equipment | 66 | 77 | $ 103 | |
Land | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | 280 | 352 | ||
Buildings | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | 14,776 | 13,981 | ||
Equipment | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | [1] | 51,902 | 48,525 | |
Equipment not placed into service | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | 1,990 | 1,630 | ||
Construction in progress | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | [2] | 1,517 | 1,600 | |
Software | ||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||||
Property, plant, and equipment, gross | $ 987 | $ 873 | ||
[1] | Includes costs related to equipment not placed into service of $1.99 billion as of September 2, 2021 and $1.63 billion as of September 3, 2020. | |||
[2] | Includes building-related construction, tool installation, and software costs for assets not placed into service. |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Useful Life Change (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Change in Accounting Estimate [Line Items] | |||
Depreciation expense | $ 6,130 | $ 5,570 | $ 5,340 |
Diluted (in dollars per share) | $ 5.14 | $ 2.37 | $ 5.51 |
Operating income | $ 6,283 | $ 3,003 | $ 7,376 |
Net income | $ 5,861 | $ 2,687 | $ 6,313 |
Service Life | NAND and R&D Equipment | |||
Change in Accounting Estimate [Line Items] | |||
Property, plant, and equipment useful life (in years) | 7 years | 5 years | |
Depreciation expense | $ (675) | ||
Expense capitalized and remained in inventory | $ 165 | ||
Diluted (in dollars per share) | $ 0.45 | ||
Operating income | $ 510 | ||
Net income | $ 510 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross Amount, Product and process technology | $ 633 | $ 616 | |
Accumulated Amortization, Product and process technology | (284) | (282) | |
Goodwill | 1,228 | 1,228 | |
Amortizing assets [Line Items] | |||
Increase in product and process technology | 106 | 73 | $ 91 |
Amortization [Abstract] | |||
Amortization of Intangible Assets | 82 | $ 78 | $ 82 |
Annual amortization expense for intangible assets [Abstract] | |||
2022 | 72 | ||
2023 | 61 | ||
2024 | 55 | ||
2025 | 34 | ||
2026 | $ 26 | ||
Weighted Average | |||
Amortizing assets [Line Items] | |||
Useful lives of assets placed into service | 9 years | 10 years | 8 years |
Leases - Cost and Cash Flows (D
Leases - Cost and Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | ||
Components of Lease Expense | ||||
Amortization of right-of-use asset | $ 69 | $ 140 | ||
Interest on lease liability | 20 | 22 | ||
Operating lease cost | 108 | 102 | ||
Total lease cost | 197 | 264 | ||
Operating lease expense under ASC840 | $ 93 | |||
Cash flows used for operating activities | ||||
Finance leases | 21 | 24 | ||
Operating leases | 106 | 39 | [1] | |
Cash flows used for financing activities | ||||
Cash flows used for financing activities from financing leases | 85 | 248 | ||
Finance leases, noncash acquisitions of right-of-use assets | 395 | 107 | ||
Operating leases, noncash acquisitions of right-of-use assets | 27 | 11 | ||
Proceeds from tenant allowance | 48 | |||
Lessee, Finance Lease, Description [Abstract] | ||||
Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale) | $ 766 | $ 426 | ||
Finance leases, Weighted-average remaining lease term (in years) | 5 years | 5 years | ||
Finance leases, Weighted-average discount rate | 3.14% | 4.51% | ||
Lessee, Operating Lease, Description [Abstract] | ||||
Current operating lease liability (included in accounts payable and accrued expenses) | $ 55 | $ 54 | ||
Operating Lease Liability, Balance Sheet Location | Accounts payable and accrued expenses | Accounts payable and accrued expenses | ||
Operating leases, Weighted-average remaining lease term (in years) | 7 years | 7 years | ||
Operating leases, Weighted-average discount rate | 2.63% | 2.67% | ||
Real Estate | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 1 year | |||
Real Estate | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 10 years | |||
Land | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 1 year | |||
Land | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 30 years | |||
[1] | Includes $48 million of reimbursements received for tenant improvements for 2020. |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Finance Lease Maturities | ||
2022 | $ 127 | |
2023 | 115 | |
2024 | 89 | |
2025 | 74 | |
2026 | 74 | |
2027 and thereafter | 454 | |
Less imputed interest | (130) | |
Finance Lease Liability | 803 | $ 486 |
Operating Lease Maturities | ||
2022 | 68 | |
2023 | 69 | |
2024 | 61 | |
2025 | 50 | |
2026 | 47 | |
2027 and thereafter | 372 | |
Less imputed interest | (108) | |
Operating Lease Liability | $ 559 |
Leases - Not Yet Commenced (Det
Leases - Not Yet Commenced (Details) $ in Millions | 12 Months Ended |
Sep. 02, 2021USD ($) | |
Operating Leases Not yet Commenced | |
Payment obligations | $ 147 |
Lease term | 10 years |
Minimum lease period | 3 years |
Renewal term | 10 years |
Finance Lease Not yet Commenced | |
Payment obligations | $ 553 |
Weighted Average | |
Finance Lease Not yet Commenced | |
Lease term | 15 years |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 1,744 | $ 2,191 |
Property, plant, and equipment | 1,887 | 2,374 |
Salaries, wages, and benefits | 984 | 849 |
Income and other taxes | 364 | 237 |
Other | 346 | 166 |
Total accounts payable and accrued expenses | $ 5,325 | $ 5,817 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) | May 14, 2021USD ($) | Sep. 02, 2021USD ($) | Sep. 03, 2020USD ($) | Aug. 29, 2019USD ($) | |
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Finance Lease Effective Rate (in ten thousandths) | 3.14% | 4.51% | |||
Current Finance Lease Obligations | $ 154,000,000 | $ 76,000,000 | |||
Long-Term Finance Lease Obligations | 649,000,000 | 410,000,000 | |||
Total Finance Lease Obligations | 803,000,000 | 486,000,000 | |||
Total Long-term Debt | 5,968,000,000 | ||||
Long-term Debt and Lease Obligation [Abstract] | |||||
Principal (including finance lease obligation) | 6,792,000,000 | 6,671,000,000 | |||
Current debt (including finance lease obligation) | 155,000,000 | 270,000,000 | |||
Long-term debt (including finance lease obligation) | 6,621,000,000 | 6,373,000,000 | |||
Total Net Carrying Amount of Debt (including finance lease obligation) | $ 6,776,000,000 | $ 6,643,000,000 | |||
Current finance lease liability, statement of financial position | Current debt (including finance lease obligation) | Current debt (including finance lease obligation) | |||
Noncurrent finance lease liability, statement of financial position | Long-term debt (including finance lease obligation) | Long-term debt (including finance lease obligation) | |||
2024 Term Loans [Abstract] | |||||
Proceeds from issuance of debt | $ 1,188,000,000 | $ 5,000,000,000 | $ 3,550,000,000 | ||
Repayments of Debt | 3,920,000,000 | $ 2,380,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
2022 | 1,000,000 | ||||
2023 | 1,250,000,000 | ||||
2024 | 600,000,000 | ||||
2025 | 1,188,000,000 | ||||
2026 | 500,000,000 | ||||
2027 and thereafter | 2,450,000,000 | ||||
Unamortized discounts | (21,000,000) | ||||
Long-term Debt | 5,968,000,000 | ||||
Interest rate swap | Fair value hedges | Designated hedging instruments | |||||
Long-term Debt and Lease Obligation [Abstract] | |||||
Notional or Contractual Amount | 900,000,000 | ||||
Micron Technology, Inc. | |||||
Long-term Debt and Lease Obligation [Abstract] | |||||
Subordinated Debt | $ 5,970,000,000 | ||||
SOFR | Interest rate swap | |||||
Long-term Debt and Lease Obligation [Abstract] | |||||
Spread on 2027 Variable Interest Rate | 3.33% | ||||
Extinguished 2024 Term Loan A | Term Loan | |||||
2024 Term Loans [Abstract] | |||||
Repayments of Debt | $ 1,190,000,000 | $ 1,188,000,000 | |||
Corporate Bonds | |||||
Senior Unsecured Notes [Abstract] | |||||
Restricted Subsidiaries, Ownership Percentage by Parent (in hundredths) | 80.00% | ||||
Debt Instrument, Redemption Price Percentage, Change in Control Event | 101.00% | ||||
Corporate Bonds | 2023 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 2.497% | ||||
Effective Rate (in ten thousandths) | 2.64% | ||||
Principal | $ 1,250,000,000 | 1,250,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 1,247,000,000 | 1,245,000,000 | |||
Total Long-term Debt | 1,247,000,000 | 1,245,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 1,247,000,000 | 1,245,000,000 | |||
Corporate Bonds | 2024 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 4.64% | ||||
Effective Rate (in ten thousandths) | 4.76% | ||||
Principal | $ 600,000,000 | 600,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 598,000,000 | 598,000,000 | |||
Total Long-term Debt | 598,000,000 | 598,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 598,000,000 | 598,000,000 | |||
Corporate Bonds | 2026 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 4.975% | ||||
Effective Rate (in ten thousandths) | 5.07% | ||||
Principal | $ 500,000,000 | 500,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 498,000,000 | 498,000,000 | |||
Total Long-term Debt | 498,000,000 | 498,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 498,000,000 | 498,000,000 | |||
Corporate Bonds | 2027 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | [1] | 4.185% | |||
Effective Rate (in ten thousandths) | 4.27% | ||||
Principal | $ 900,000,000 | 900,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 901,000,000 | 895,000,000 | |||
Total Long-term Debt | 901,000,000 | 895,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 901,000,000 | 895,000,000 | |||
Corporate Bonds | 2029 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 5.327% | ||||
Effective Rate (in ten thousandths) | 5.40% | ||||
Principal | $ 700,000,000 | 700,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 696,000,000 | 696,000,000 | |||
Total Long-term Debt | 696,000,000 | 696,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 696,000,000 | 696,000,000 | |||
Corporate Bonds | 2030 Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 4.663% | ||||
Effective Rate (in ten thousandths) | 4.73% | ||||
Principal | $ 850,000,000 | 850,000,000 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 846,000,000 | 845,000,000 | |||
Total Long-term Debt | 846,000,000 | 845,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 846,000,000 | 845,000,000 | |||
Term Loan | 2024 Term Loan A | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Stated Rate (exact percentage) | 0.975% | ||||
Effective Rate (in ten thousandths) | 1.01% | ||||
Principal | $ 1,188,000,000 | 0 | |||
Current Portion of Long-term Debt | 0 | 0 | |||
Noncurrent Long-Term Debt | 1,186,000,000 | 0 | |||
Total Long-term Debt | 1,186,000,000 | 0 | |||
2024 Term Loans [Abstract] | |||||
Proceeds from issuance of debt | $ 1,190,000,000 | ||||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | 1,186,000,000 | 0 | |||
Term Loan | 2024 Term Loan A | LIBOR | Minimum | |||||
Revolving Credit Facility [Abstract] | |||||
Margin on variable rate financing | 0.625% | ||||
Term Loan | 2024 Term Loan A | LIBOR | Maximum | |||||
Revolving Credit Facility [Abstract] | |||||
Margin on variable rate financing | 1.375% | ||||
Term Loan | Extinguished 2024 Term Loan A | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Principal | 0 | 1,250,000,000 | |||
Current Portion of Long-term Debt | 0 | 62,000,000 | |||
Noncurrent Long-Term Debt | 0 | 1,186,000,000 | |||
Total Long-term Debt | 0 | 1,248,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | 0 | 1,248,000,000 | |||
Convertible Debt | 2032D Notes | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Principal | 0 | 134,000,000 | |||
Current Portion of Long-term Debt | 0 | 131,000,000 | |||
Noncurrent Long-Term Debt | 0 | 0 | |||
Total Long-term Debt | 0 | 131,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | 0 | 131,000,000 | |||
Other Notes Payable | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Principal | 1,000,000 | 1,000,000 | |||
Current Portion of Long-term Debt | 1,000,000 | 1,000,000 | |||
Noncurrent Long-Term Debt | 0 | 0 | |||
Total Long-term Debt | 1,000,000 | 1,000,000 | |||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | 1,000,000 | $ 1,000,000 | |||
Revolving Credit Facility | 2026 Revolving Credit Facility | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Total Long-term Debt | 0 | ||||
Revolving Credit Facility [Abstract] | |||||
Debt term (in years) | 5 years | ||||
Maximum Borrowing Capacity | $ 2,500,000,000 | ||||
Available borrowing capacity | 2,500,000,000 | ||||
Maturities of Notes Payable [Abstract] | |||||
Long-term Debt | $ 0 | ||||
Revolving Credit Facility | 2026 Revolving Credit Facility | Maximum | |||||
Revolving Credit Facility [Abstract] | |||||
Debt Covenant, Ratio Of Total Debt To Adjusted EBITDA | 3.25 | ||||
Revolving Credit Facility | 2026 Revolving Credit Facility | LIBOR | Minimum | |||||
Revolving Credit Facility [Abstract] | |||||
Margin on variable rate financing | 1.00% | ||||
Revolving Credit Facility | 2026 Revolving Credit Facility | LIBOR | Maximum | |||||
Revolving Credit Facility [Abstract] | |||||
Margin on variable rate financing | 1.75% | ||||
[1] | In 2021, we entered into fixed-to-floating interest rate swaps on the 2027 Notes with an aggregate $900 million notional amount equal to the principal amount of the 2027 Notes. The resulting variable interest paid is at a rate equal to SOFR plus approximately 3.33%. The fixed-to-floating interest rate swaps are accounted for as fair value hedges, as a result, the carrying value of our 2027 Notes reflects adjustments in fair value. |
Debt - Debt Activity (Details)
Debt - Debt Activity (Details) - USD ($) shares in Millions, $ in Millions | May 14, 2021 | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Extinguishment of Debt [Line Items] | |||||
Increase (Decrease) Principal | $ (134) | ||||
Decrease in Principal | $ (3,770) | $ (1,800) | |||
Increase (Decrease) in Carrying Value | (134) | (3,900) | (1,600) | ||
(Decrease) in Cash - Prepayments and Conversions | (3,920) | (2,380) | |||
Increase (Decrease) in Cash | (187) | ||||
Decrease in Equity | (52) | (56) | (515) | ||
Gain (loss) on debt prepayments, repurchases, and conversions | (1) | $ 40 | $ (396) | ||
Term Loan | Extinguished 2024 Term Loan A | |||||
Extinguishment of Debt [Line Items] | |||||
Decrease in Principal | (1,188) | ||||
Increase (Decrease) in Carrying Value | (1,186) | ||||
(Decrease) in Cash - Prepayments and Conversions | $ (1,190) | (1,188) | |||
Gain (loss) on debt prepayments, repurchases, and conversions | (2) | ||||
Convertible Debt | 2032D Notes | |||||
Extinguishment of Debt [Line Items] | |||||
Decrease in Principal | [1] | (134) | |||
Increase (Decrease) in Carrying Value | [1] | (134) | |||
(Decrease) in Cash - Prepayments and Conversions | [1] | (185) | |||
Decrease in Equity | [1] | (52) | |||
Gain (loss) on debt prepayments, repurchases, and conversions | [1] | $ 1 | |||
Stock issued for convertible notes (shares) | 11.1 | ||||
Term Loan | 2024 Term Loan A | |||||
Extinguishment of Debt [Line Items] | |||||
Increase (Decrease) Principal | $ 1,188 | ||||
Increase (Decrease) in Carrying Value | 1,186 | ||||
Increase in Cash - Issuances | $ 1,186 | ||||
[1] | In 2021, substantially all holders of our 2032D Notes converted their notes. We settled these conversions and all remaining 2032D Notes with $185 million in cash and 11.1 million shares of our stock. |
Commitments (Details)
Commitments (Details) $ in Billions | Sep. 02, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments for purchase obligations | $ 6.5 |
Commitments for purchase obligations, portion due within one year | $ 5 |
Contingencies (Details)
Contingencies (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021CNY (¥)patentcomplaintagreement | Sep. 02, 2021USD ($)patentcomplaintagreement | Aug. 30, 2018 | |
Innovative Memory Solutions, Inc. vs Micron-Complaint 1 | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 8 | 8 | |
Loss Contingency, Patents Found Not Infringed, Number | patent | 6 | 6 | |
Flash-Control, LLC vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 4 | 4 | |
Loss Contingency, Patents Found Not Infringed, Number | patent | 2 | 2 | |
Pending Litigation | Securities Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 2 | 2 | |
Pending Litigation | MLC Intellectual Property, LLC vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 1 | 1 | |
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Innovative Memory Solutions, Inc. vs Micron-Complaint 1 | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 2 | 2 | |
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. vs Micron-Complaint 1 | Patent Matters | |||
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 | |
Pending Litigation | Fujian Jinhua Integrated Circuit Co., Ltd. vs Micron-Complaint 2 | Patent Matters | |||
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 | |
Pending Litigation | United Microelectronics Corporation vs Micron-Complaint 1 | Patent Matters | |||
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 | |
Pending Litigation | United Microelectronics Corporation vs Micron-Complaint 2 | Patent Matters | |||
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 | |
Pending Litigation | Fuzhou Court Preliminary Injunction | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Percent of annualized revenue derived from impacted products | 1.00% | ||
Pending Litigation | Flash-Control, LLC vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Netlist Inc. vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 1 | 1 | |
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Netlist Inc vs Micron - Complaint 2 | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 3 | 3 | |
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Vervain LLC vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 4 | 4 | |
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | Claims on Behalf of Indirect Purchasers | Antitrust Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Pending Litigation | DRAM Purchasers Canada vs Micron | Antitrust Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 6 | 6 | |
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 | Micron Intel JV Arbitration Matter | Minimum | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Agreements Allegedly Breached, Number | agreement | 1 | 1 | |
Pending Litigation | Allied Telesis K.K. vs Micron | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 1 | 1 | |
Dismissed Litigation | Elm 3DS Innovations, LLC vs Micron | Patent Matters | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | patent | 13 | 13 | |
Loss Contingency, Claims Dismissed, Number | 1 | 1 | |
Dismissed Litigation | Subsequent indirect DRAM Purchasers United States vs Micron | Antitrust Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Claims Dismissed, Number | 2 | 2 | |
Dismissed Litigation | Subsequent direct DRAM Purchasers United States vs Micron | Antitrust Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Claims Dismissed, Number | 4 | 4 | |
Dismissed Litigation | Claims on Behalf of Direct Purchasers | Antitrust Matters | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Claims Dismissed, Number | 1 | 1 | |
Under Appeal | 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 | ||
Under Appeal | Employee Class Action vs Micron | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Pending Claims, Number | 1 | 1 |
Equity - Common Stock Repurchas
Equity - Common Stock Repurchases and Dividend (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 02, 2021 | Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | Sep. 02, 2021 |
Equity, Class of Treasury Stock [Line Items] | |||||
Payments for Repurchase of Common Stock | $ 1,294 | $ 251 | $ 2,729 | ||
Cash dividends declared (per share) | $ 0.10 | ||||
Dividends Payable, Date to be Paid | Oct. 18, 2021 | ||||
Dividends Payable, Date of Record | Oct. 1, 2021 | ||||
Repurchases Authorized by the BOD | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common Stock Repurchase, Authorized Amount | $ 10,000 | $ 10,000 | |||
Treasury Shares Repurchased (in shares) | 15.6 | 3.6 | |||
Payments for Repurchase of Common Stock | $ 1,200 | $ 176 | $ 4,040 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated other comprehensive income (loss) | $ 71 | ||
Other comprehensive income before reclassifications | (48) | ||
Amount reclassified out of accumulated other comprehensive income | (45) | ||
Tax effects | 24 | ||
Other comprehensive income (loss) | (69) | $ 62 | $ (1) |
Accumulated other comprehensive income (loss) | 2 | 71 | |
Gains (Losses) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated other comprehensive income (loss) | 45 | ||
Other comprehensive income before reclassifications | (52) | ||
Amount reclassified out of accumulated other comprehensive income | (41) | ||
Tax effects | 26 | ||
Other comprehensive income (loss) | (67) | ||
Accumulated other comprehensive income (loss) | (22) | 45 | |
Pension Liability Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated other comprehensive income (loss) | 19 | ||
Other comprehensive income before reclassifications | 8 | ||
Amount reclassified out of accumulated other comprehensive income | (1) | ||
Tax effects | (4) | ||
Other comprehensive income (loss) | 3 | ||
Accumulated other comprehensive income (loss) | 22 | 19 | |
Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated other comprehensive income (loss) | 8 | ||
Other comprehensive income before reclassifications | (6) | ||
Amount reclassified out of accumulated other comprehensive income | (3) | ||
Tax effects | 2 | ||
Other comprehensive income (loss) | (7) | ||
Accumulated other comprehensive income (loss) | 1 | 8 | |
Cumulative Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated other comprehensive income (loss) | (1) | ||
Other comprehensive income before reclassifications | 2 | ||
Amount reclassified out of accumulated other comprehensive income | 0 | ||
Tax effects | 0 | ||
Other comprehensive income (loss) | 2 | ||
Accumulated other comprehensive income (loss) | $ 1 | $ (1) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair and Carrying Value of Debt (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Fair Value | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Notes (level 2) | $ 6,584 | $ 6,710 |
Convertible notes (level 2) | 0 | 634 |
Carrying Value | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Notes (level 2) | 5,973 | 6,026 |
Convertible notes (level 2) | $ 0 | $ 131 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts and Fair Values (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | $ 20 | $ 45 |
Fair Value of Liabilities | [2] | $ (68) | (3) |
Designated hedging instruments | Cash flow hedges | |||
Derivative, Fair Value, Net [Abstract] | |||
General maturity of cash flow hedges (in years) | 2 years | ||
Designated hedging instruments | Cash flow hedges | Currency hedges | |||
Notional Disclosures [Abstract] | |||
Notional or Contractual Amount | $ 3,601 | 1,845 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 10 | 41 |
Fair Value of Liabilities | [2] | (66) | (2) |
Designated hedging instruments | Cash flow hedges | Commodity hedges | |||
Notional Disclosures [Abstract] | |||
Notional or Contractual Amount | 45 | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 2 | |
Fair Value of Liabilities | [2] | 0 | |
Designated hedging instruments | Fair value hedges | Interest rate swap | |||
Notional Disclosures [Abstract] | |||
Notional or Contractual Amount | 900 | ||
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 5 | |
Fair Value of Liabilities | [2] | 0 | |
Not designated hedging instruments | Currency hedges | |||
Notional Disclosures [Abstract] | |||
Notional or Contractual Amount | 996 | 1,587 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value of Assets | [1] | 3 | 4 |
Fair Value of Liabilities | [2] | $ (2) | $ (1) |
General maturity of currency forward contracts (in months) | 3 months | ||
[1] | Included in receivables – other and other noncurrent assets. | ||
[2] | Included in accounts payable and accrued expenses – other and other noncurrent liabilities. |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Designated hedging instruments | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recognized in other comprehensive income from cash flow hedges | $ (52) | $ 51 | |
Losses recognized in COGS related to amounts excluded from cash flow hedge effectiveness | (14) | ||
Cash flow hedge gains reclassified from AOCI to earnings | 41 | ||
Cash flow hedge gains expected to be reclassified into earnings within twelve months | $ (12) | ||
Currency hedges | Not designated hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) for derivative instruments without hedge accounting designation | 21 | $ (32) | |
Convertible notes settlement obligation | Not designated hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) for derivative instruments without hedge accounting designation | $ (14) | $ (58) |
Equity Plans - Share Based Info
Equity Plans - Share Based Information and Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future awards (in shares) | 104 | ||
Restricted stock awards | |||
Restricted Stock Awards Shares [Roll Forward) | |||
Number of Shares - Outstanding (in shares) | 17 | ||
Number of Shares - Granted (in shares) | 11 | 8 | 9 |
Number of Shares - Restrictions lapsed (in shares) | (6) | ||
Number of Shares - Canceled (in shares) | (2) | ||
Number of Shares - Outstanding (in shares) | 20 | 17 | |
Restricted Stock Award Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted Average Grant Date Fair Value Per Share - Outstanding (in dollars per share) | $ 42.13 | ||
Weighted Average Grant Date Fair Value Per Share - Granted (in dollars per share) | 53.58 | $ 46.44 | $ 41.11 |
Weighted Average Grant Date Fair Value Per Share - Restrictions lapsed (in dollars per share) | 38.99 | ||
Weighted Average Grant Date Fair Value Per Share - Canceled (in dollars per share) | 41.54 | ||
Weighted Average Grant Date Fair Value Per Share - Outstanding (in dollars per share) | $ 49.39 | $ 42.13 | |
Aggregate vesting-date fair value of shares vested | $ 385 | $ 294 | $ 248 |
Performance and Market-based Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Restricted award vesting period | 3 years | ||
Performance and Market-based Restricted Stock Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Restricted award achievement potential, percentage | 0.00% | ||
Performance and Market-based Restricted Stock Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Restricted award achievement potential, percentage | 200.00% | ||
Service-based Restricted Stock Awards | |||
Restricted Stock Awards Shares [Roll Forward) | |||
Number of Shares - Outstanding (in shares) | 17 | ||
Service-based Restricted Stock Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Annual vesting rights, percentage | 25.00% | ||
Service-based Restricted Stock Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Annual vesting rights, percentage | 33.00% | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future awards (in shares) | 23 | ||
Restricted Stock Award Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted Average Grant Date Fair Value Per Share - Granted (in dollars per share) | $ 20.71 | $ 14.24 | $ 11.60 |
Equity Plans - ESPP and Stock O
Equity Plans - ESPP and Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | Jul. 31, 2021 | |
Employee Stock Purchase Plan | ||||
ESPP Program Details [Abstract] | ||||
ESPP maximum payroll deduction percentage (in hundredths) | 15.00% | 10.00% | ||
ESPP percentage purchase price of common stock (in hundredths) | 85.00% | |||
Period from grant date until stock options expire or ESPP program period (in years or months) | 6 months | |||
ESPP shares purchased (in shares) | 3 | 3 | ||
ESPP value of shares purchased | $ 140 | $ 118 | ||
ESPP Fair Value Assumptions and Methodology [Abstract] | ||||
Fair Value Assumptions, Method Used | Black-Scholes | |||
Weighted-average grant-date fair values per share (in dollars per share) | $ 20.71 | $ 14.24 | $ 11.60 | |
Average expected life (in years) | 6 months | 6 months | 6 months | |
Weighted-average expected volatility (in hundredths) | 41.00% | 45.00% | 45.00% | |
Weighted-average risk-free interest rate (in thousandths) | 0.10% | 0.80% | 2.20% | |
Expected dividend yield | 0.30% | 0.00% | 0.00% | |
Employee Stock Option | ||||
ESPP Program Details [Abstract] | ||||
Period from grant date until stock options expire or ESPP program period (in years or months) | 8 years | |||
Stock Option Disclosures [Abstract] | ||||
Number of options outstanding (in shares) | 4 | |||
Number of shares exercised (in shares) | 3 | |||
Total intrinsic value for option exercised | $ 143 | $ 130 | $ 108 | |
Employee Stock Option | Minimum | ||||
Stock Option Disclosures [Abstract] | ||||
Annual vesting rights, percentage | 33.00% | |||
Employee Stock Option | Maximum | ||||
Stock Option Disclosures [Abstract] | ||||
Annual vesting rights, percentage | 25.00% |
Equity Plans - Stock-based comp
Equity Plans - Stock-based compensation expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 395 | $ 328 | $ 243 |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Tax benefit from compensation expense | 83 | 72 | 66 |
Total unrecognized compensation costs related to non-vested awards expected to be recognized | $ 691 | ||
Weighted average period that unrecognized compensation costs is expected to be recognized (in years) | 1 year 2 months 12 days | ||
Restricted stock awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 333 | 272 | 178 |
Employee Stock Purchase Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 52 | 39 | 32 |
Employee Stock Option | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 10 | 17 | 33 |
Equity plans | |||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Expense capitalized and remained in inventory | 30 | 42 | |
Cost of Goods Sold | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 186 | 139 | 102 |
Selling, general, and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 99 | 103 | 73 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 110 | $ 86 | $ 68 |
Employee Benefit Plans - (Detai
Employee Benefit Plans - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Retirement Benefits [Abstract] | |||
Maximum annual contributions per employee (in hundredths) | 75.00% | ||
Employer matching contribution, percent of employees' eligible earnings (in hundredths) | 5.00% | ||
Defined contribution plan contribution expense | $ 77 | $ 66 | $ 67 |
Retirement Plans | |||
Projected pension benefit obligation | 222 | 202 | |
Pension plan assets | $ 256 | $ 222 |
Revenue and Customer Contract_3
Revenue and Customer Contract Liabilities-Product Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 27,705 | $ 21,435 | $ 23,406 |
DRAM | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 20,039 | 14,510 | 16,841 |
NAND | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,007 | 6,131 | 5,355 |
Other (primarily 3D XPoint memory and NOR) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 659 | $ 794 | $ 1,210 |
Revenue and Customer Contract_4
Revenue and Customer Contract Liabilities-Contract Liabilities and Customer Payables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 02, 2021 | Sep. 03, 2020 | |
Contract Liabilities | ||
Revenue recognized from beginning balance | $ 64 | |
Contract liabilities | 74 | $ 65 |
Consideration Payable to Customers | ||
Estimated consideration payable to customers for pricing adjustments and returns | 846 | 466 |
Contract liabilities from customer advances (product) | ||
Contract Liabilities | ||
Contract liabilities | 74 | 40 |
Other contract liabilities | ||
Contract Liabilities | ||
Contract liabilities | $ 0 | $ 25 |
Revenue and Customer Contract_5
Revenue and Customer Contract Liabilities-Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-03 $ in Millions | Sep. 02, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of Remaining Performance Obligation | $ 117 |
Remaining Performance Obligation, Period of Expected Timing of Satisfaction | 1 year |
Restructure and Asset Impairm_3
Restructure and Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Restructure and asset impairments | $ 488 | $ 60 | $ (29) |
Gain on sale of Singapore fab | $ 128 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Other Income and Expenses [Abstract] | |||
License Agreement (Income) Expense | $ 128 | $ 0 | $ 0 |
(Gain) loss on disposition of property, plant, and equipment | (24) | (3) | 43 |
Other | (9) | 11 | 35 |
Other operating (income) expense, net | $ 95 | $ 8 | $ 78 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Gain (loss) on investments | $ 82 | $ 22 | $ (4) |
Gain (loss) on debt prepayments, repurchases, and conversions | (1) | 40 | (396) |
Other | 0 | (2) | (5) |
Other non-operating income (expense), net | $ 81 | $ 60 | $ (405) |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before Taxes and Other Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | |||
U.S. | $ (211) | $ 308 | $ (67) |
Foreign | 6,429 | 2,675 | 7,115 |
Income (loss) before income taxes, net income (loss) attributable to noncontrolling interests, and equity in net income (loss) of equity method investees | 6,218 | 2,983 | 7,048 |
Current | |||
U.S. federal | (42) | (20) | (36) |
State | (1) | (2) | (2) |
Foreign | (370) | (148) | (319) |
Total income tax (provision) benefit - current | (413) | (170) | (357) |
Deferred | |||
U.S. federal | (9) | 39 | (146) |
State | 28 | 23 | 91 |
Foreign | 0 | (172) | (281) |
Total income tax (provision) benefit - deferred | 19 | (110) | (336) |
Income tax (provision) benefit | $ (394) | $ (280) | $ (693) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal income tax (provision) benefit at statutory rate | $ (1,306) | $ (626) | $ (1,480) |
Change in unrecognized tax benefits | (238) | (33) | (59) |
U.S. tax on foreign operations | (226) | (14) | (327) |
Foreign tax rate differential | 951 | 253 | 993 |
Debt premium deductions | 130 | 0 | 0 |
Research and development tax credits | 123 | 62 | 92 |
Change in valuation allowance | 54 | (20) | (40) |
State taxes, net of federal benefit | 59 | 23 | 102 |
Foreign derived intangible income deduction | 18 | 67 | 0 |
Other | 41 | 8 | 26 |
Income tax (provision) benefit | $ (394) | $ (280) | $ (693) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory rate (percent) | 21.00% | 21.00% | 21.00% |
Unrecognized tax benefits (percent) | 3.80% | 1.10% | 0.80% |
U.S. tax on foreign operations (percent) | 3.60% | 0.50% | 4.60% |
Foreign tax rate differential (percent) | (15.30%) | (8.50%) | (14.10%) |
Debt premium deductions (percent) | (2.10%) | 0.00% | 0.00% |
Research and development tax credits (percent) | (2.00%) | (2.10%) | (1.30%) |
Change in valuation allowance (percent) | (0.90%) | 0.70% | 0.60% |
State taxes, net of federal benefit (percent) | (0.90%) | (0.80%) | (1.40%) |
Foreign derived intangible income (percent) | (0.30%) | (2.20%) | 0.00% |
Other (percent) | (0.60%) | (0.30%) | (0.40%) |
Effective tax rate (percent) | 6.30% | 9.40% | 9.80% |
Income Taxes - Tax Holiday and
Income Taxes - Tax Holiday and Other (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit from incentive arrangements | $ 758 | $ 215 | $ 756 |
Tax benefit per diluted share from incentive arrangements | $ 0.66 | $ 0.19 | $ 0.66 |
Undistributed earnings of foreign subsidiaries deemed indefinitely reinvested | $ 3,530 | ||
Measurement period benefit, net of uncertain tax positions | $ 47 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 02, 2021 | Sep. 03, 2020 |
Deferred Tax Assets | ||
Net operating loss and tax credit carryforwards | $ 783 | $ 912 |
Accrued salaries, wages, and benefits | 206 | 176 |
Operating lease liabilities | 109 | 114 |
Property, plant, and equipment | 37 | 0 |
Other | 115 | 91 |
Gross deferred tax assets | 1,250 | 1,293 |
Less valuation allowance | (233) | (294) |
Deferred tax assets, net of valuation allowance | 1,017 | 999 |
Deferred Tax Liabilities | ||
Right-of-use assets | (90) | (95) |
Product and process technology | (12) | (57) |
Property, plant, and equipment | 0 | (50) |
Other | (143) | (99) |
Deferred tax liabilities | (245) | (301) |
Net deferred tax assets | 772 | 698 |
Reported as | ||
Deferred tax assets | 782 | 707 |
Deferred tax liabilities (included in other noncurrent liabilities) | $ (10) | $ (9) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Sep. 02, 2021USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 2,711 |
2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 667 |
2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 537 |
2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 355 |
2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 61 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,091 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,003 |
State | 2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 49 |
State | 2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 537 |
State | 2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 355 |
State | 2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 61 |
State | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1 |
Foreign | Japan | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 617 |
Foreign | Japan | 2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 617 |
Foreign | Japan | 2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Japan | 2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Japan | 2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Japan | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Malaysia | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 606 |
Foreign | Malaysia | 2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Malaysia | 2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Malaysia | 2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Malaysia | 2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Malaysia | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 606 |
Foreign | Singapore | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 477 |
Foreign | Singapore | 2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Singapore | 2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Singapore | 2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Singapore | 2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Singapore | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 477 |
Foreign | Other | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8 |
Foreign | Other | 2022 - 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1 |
Foreign | Other | 2027 - 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Other | 2032 - 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Other | 2037 - 2041 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign | Other | Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 7 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards (Details) $ in Millions | Sep. 02, 2021USD ($) |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 766 |
2022 - 2026 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 45 |
2027 - 2031 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 84 |
2032 - 2036 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 164 |
2037 - 2041 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 369 |
Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 104 |
U.S. Federal | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 396 |
U.S. Federal | 2022 - 2026 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
U.S. Federal | 2027 - 2031 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
U.S. Federal | 2032 - 2036 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 32 |
U.S. Federal | 2037 - 2041 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 364 |
U.S. Federal | Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 0 |
State | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 370 |
State | 2022 - 2026 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 45 |
State | 2027 - 2031 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 84 |
State | 2032 - 2036 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 132 |
State | 2037 - 2041 | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 5 |
State | Indefinite | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 104 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning unrecognized tax benefits | $ 411 | $ 383 | $ 261 |
Increases related to tax positions from prior years | 2 | 14 | 124 |
Increases related to tax positions taken in current year | 260 | 27 | 44 |
Decreases related to tax positions from prior years | (13) | (13) | (46) |
Ending unrecognized tax benefits | $ 660 | $ 411 | $ 383 |
Internal Revenue Service (IRS) | |||
Income Tax Contingency [Line Items] | |||
Income Tax Examination, Year under Examination | 2018 2019 | ||
U.S. Federal | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2017 | ||
U.S. Federal | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2021 | ||
State | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2017 | ||
State | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2021 | ||
Foreign | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2015 | ||
Foreign | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2021 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net income attributable to Micron - Basic | $ 5,861 | $ 2,687 | $ 6,313 |
Assumed conversion of debt | 0 | (4) | (12) |
Net income attributable to Micron - Diluted | $ 5,861 | $ 2,683 | $ 6,301 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted-average common shares outstanding - Basic (in shares) | 1,120 | 1,110 | 1,114 |
Dilutive effect of equity plans and convertible notes (in shares) | 21 | 21 | 29 |
Weighted-average common shares outstanding - Diluted (in shares) | 1,141 | 1,131 | 1,143 |
Earnings per share | |||
Basic (in dollars per share) | $ 5.23 | $ 2.42 | $ 5.67 |
Diluted (in dollars per share) | $ 5.14 | $ 2.37 | $ 5.51 |
Antidilutive potential common shares that could dilute basic earnings per share in the future (in shares) | 2 | 5 | 8 |
Segment and Other Information_2
Segment and Other Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 04, 2021USD ($) | Sep. 02, 2021USD ($)segment | Sep. 03, 2020USD ($) | Aug. 29, 2019USD ($) | |
Reportable Segments | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information, Additional Information [Abstract] | ||||
Goodwill | $ 1,228 | $ 1,228 | ||
Net sales | ||||
Revenue | 27,705 | 21,435 | $ 23,406 | |
Operating income (loss) | ||||
Stock-based compensation | (395) | (328) | (243) | |
Inventory accounting policy change to FIFO | (17,282) | (14,883) | (12,704) | |
Restructure and asset impairments | (488) | (60) | 29 | |
Patent license charges | (128) | 0 | 0 | |
Operating income (loss) | 6,283 | 3,003 | 7,376 | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 6,214 | 5,650 | 5,424 | |
3D XPoint | ||||
Operating income (loss) | ||||
3D XPoint inventory write-down | $ (49) | |||
Change in Accounting Principle, Inventory Method | ||||
Operating income (loss) | ||||
Inventory accounting policy change to FIFO | $ (133) | |||
Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 7,667 | 3,419 | 7,801 | |
Unallocated | ||||
Operating income (loss) | ||||
Stock-based compensation | (395) | (328) | (243) | |
Change in inventory cost absorption | (160) | 0 | 0 | |
Restructure and asset impairments | (488) | (60) | 32 | |
Patent license charges | (128) | 0 | 0 | |
Employee severance | 0 | 0 | (116) | |
Other | (31) | (28) | (98) | |
Operating income (loss) | (1,384) | (416) | (425) | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 27 | 28 | 26 | |
Unallocated | 3D XPoint | ||||
Operating income (loss) | ||||
3D XPoint inventory write-down | (49) | 0 | 0 | |
Unallocated | Change in Accounting Principle, Inventory Method | ||||
Operating income (loss) | ||||
Inventory accounting policy change to FIFO | (133) | 0 | 0 | |
CNBU | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||
Goodwill | 832 | 832 | ||
Net sales | ||||
Revenue | 12,280 | 9,184 | 9,968 | |
CNBU | Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 4,295 | 2,010 | 4,645 | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 2,497 | 2,318 | 1,833 | |
MBU | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||
Goodwill | 198 | 198 | ||
Net sales | ||||
Revenue | 7,203 | 5,702 | 6,403 | |
MBU | Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 2,173 | 1,074 | 2,606 | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 1,101 | 1,436 | 1,235 | |
SBU | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||
Goodwill | 101 | 101 | ||
Net sales | ||||
Revenue | 3,973 | 3,765 | 3,826 | |
SBU | Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 173 | 36 | (386) | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 1,028 | 1,115 | 1,555 | |
EBU | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||
Goodwill | 97 | 97 | ||
Net sales | ||||
Revenue | 4,209 | 2,759 | 3,137 | |
EBU | Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 1,006 | 301 | 923 | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | 1,553 | 741 | 748 | |
All Other | ||||
Net sales | ||||
Revenue | 40 | 25 | 72 | |
All Other | Operating Segments | ||||
Operating income (loss) | ||||
Operating income (loss) | 20 | (2) | 13 | |
Depreciation and amortization | ||||
Depreciation and amortization expense by segment | $ 8 | $ 12 | $ 27 |
Certain Concentrations (Details
Certain Concentrations (Details) - Revenue from Contract with Customer | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
Product Concentration Risk | Mobile | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.00% | 25.00% | 25.00% |
Product Concentration Risk | Client and graphics | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 20.00% | 20.00% |
Product Concentration Risk | Enterprise and cloud server | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 20.00% | 20.00% |
Product Concentration Risk | SSDs and other storage | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 20.00% | 15.00% |
Product Concentration Risk | Automotive, industrial, and consumer | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 15.00% | 15.00% |
Customer Concentration Risk | WPG Holdings Limited | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | ||
Customer Concentration Risk | Kingston | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 11.00% | |
Customer Concentration Risk | Huawei | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.00% |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | $ 27,705 | $ 21,435 | $ 23,406 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 34,663 | 31,615 | ||
United States | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 12,155 | 10,381 | 12,451 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 5,205 | [1] | 5,434 | |
United States | Lehi, Utah Facility | ||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 899 | |||
Taiwan | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 6,606 | 3,657 | 2,703 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 11,457 | 10,516 | ||
China | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 2,456 | 2,337 | 3,595 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 436 | 478 | ||
Hong Kong | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 2,582 | 1,792 | 1,614 | |
Japan | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 1,652 | 1,387 | 958 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 7,222 | 6,478 | ||
Other Asia Pacific | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 1,420 | 1,157 | 1,032 | |
Singapore | ||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 9,411 | 8,161 | ||
Malaysia | ||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | 757 | 385 | ||
Other | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Revenue | 834 | 724 | $ 1,053 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||||
Long-lived assets | $ 175 | $ 163 | ||
[1] | Included $899 million (net of impairment) as of September 2, 2021 of property, plant, and equipment for our Lehi facility that was classified as held for sale and presented in other current assets. |
Schedule II Valuation and Qua_3
Schedule II Valuation and Qualifying Accounts (Details) - Deferred Tax Assets Valuation Allowance - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 02, 2021 | Sep. 03, 2020 | Aug. 29, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 294 | $ 277 | $ 228 |
Charged to Income Tax Provision | 20 | 40 | |
(Credited) to Income Tax Provision | (54) | ||
Currency Translation and (Credits) to Other Accounts | (7) | (3) | |
Currency Translation and Charges to Other Accounts | 9 | ||
Balance at End of Year | $ 233 | $ 294 | $ 277 |