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Debt | 9 Months Ended
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Jun. 01, 2017
Debt Disclosure [Abstract] |
Debt | Debt
As of |  | June 1, 2017 |  | September 1, 2016
|  | Stated Rate |  | Effective Rate |  | Current |  | Long-Term |  | Total |  | Current |  | Long-Term |  | Total
MMJ creditor installment payments |  | N/A |  |  | 6.52 | % |  | $ | 154 |  |  | $ | 465 |  |  | $ | 619 |  |  | $ | 189 |  |  | $ | 680 |  |  | $ | 869 |
Capital lease obligations |  | N/A |  |  | 3.64 | % |  | 355 |  |  | 917 |  |  | 1,272 |  |  | 380 |  |  | 1,026 |  |  | 1,406 |
2021 MSAC senior secured term loan | 3.467 | % |  | 3.76 | % |  | 38 |  |  | 583 |  |  | 621 |  |  | — |  |  | — |  |  | — |
2021 MSTW senior secured term loan | 2.852 | % |  | 3.02 | % |  | — |  |  | 2,643 |  |  | 2,643 |  |  | — |  |  | — |  |  | — |
2022 senior notes |  | 5.875 | % |  | 6.14 | % |  | — |  |  | 591 |  |  | 591 |  |  | — |  |  | 590 |  |  | 590 |
2022 senior secured term loan B |  | 3.550 | % |  | 3.97 | % |  | 5 |  |  | 726 |  |  | 731 |  |  | 5 |  |  | 730 |  |  | 735 |
2023 senior notes |  | 5.250 | % |  | 5.43 | % |  | — |  |  | 991 |  |  | 991 |  |  | — |  |  | 990 |  |  | 990 |
2023 senior secured notes |  | 7.500 | % |  | 7.69 | % |  | — |  |  | 1,238 |  |  | 1,238 |  |  | — |  |  | 1,237 |  |  | 1,237 |
2024 senior notes |  | 5.250 | % |  | 5.38 | % |  | — |  |  | 546 |  |  | 546 |  |  | — |  |  | 546 |  |  | 546 |
2025 senior notes |  | 5.500 | % |  | 5.56 | % |  | — |  |  | 515 |  |  | 515 |  |  | — |  |  | 1,139 |  |  | 1,139 |
2026 senior notes |  | 5.625 | % |  | 5.73 | % |  | — |  |  | 128 |  |  | 128 |  |  | — |  |  | 446 |  |  | 446 |
2032C convertible senior notes(1) |  | 2.375 | % |  | 5.95 | % |  | — |  |  | 209 |  |  | 209 |  |  | — |  |  | 204 |  |  | 204 |
2032D convertible senior notes(1) |  | 3.125 | % |  | 6.33 | % |  | — |  |  | 157 |  |  | 157 |  |  | — |  |  | 154 |  |  | 154 |
2033E convertible senior notes(1) |  | 1.625 | % |  | 4.50 | % |  | 169 |  |  | — |  |  | 169 |  |  | — |  |  | 168 |  |  | 168 |
2033F convertible senior notes(1) |  | 2.125 | % |  | 4.93 | % |  | 276 |  |  | — |  |  | 276 |  |  | — |  |  | 271 |  |  | 271 |
2043G convertible senior notes |  | 3.000 | % |  | 6.76 | % |  | — |  |  | 668 |  |  | 668 |  |  | — |  |  | 657 |  |  | 657 |
Other notes payable |  | 2.038 | % |  | 2.57 | % |  | 164 |  |  | 108 |  |  | 272 |  |  | 182 |  |  | 316 |  |  | 498 |
|  |  |  |  |  | $ | 1,161 |  |  | $ | 10,485 |  |  | $ | 11,646 |  |  | $ | 756 |  |  | $ | 9,154 |  |  | $ | 9,910 |
(1) | Since the closing price of our common stock exceeded 130% of the conversion price per share for at least 20 trading days in the 30 trading day period ended on March 31, 2017, these notes are convertible by the holders through the calendar quarter ending June 30, 2017. The closing price of our common stock also exceeded the thresholds for the calendar quarter ended June 30, 2017; therefore, these notes are convertible by the holders through September 30, 2017. The 2033 Notes were classified as current as of June 1, 2017 because the terms of these notes require us to pay cash for the principal amount of any converted notes and holders of these notes had the right to convert their notes as of that date. In addition, the holders of the 2033E Notes can require us to repurchase for cash all or a portion of the 2033E Notes on February 15, 2018.
Debt Restructure On April 11, 2017, we repurchased $631 million of principal amount of our 2025 Notes (carrying value of $625 million) and $321 million of principal amount of our 2026 Notes (carrying value of $318 million) for an aggregate of $1.00 billion in cash. In connection with the transactions, we recognized a non-operating loss of $60 million in the third quarter of 2017. Capital Lease Obligations In the third quarter of 2017, we recorded capital lease obligations aggregating $84 million at a weighted-average effective interest rate of 6.5% and a weighted-average expected term of 5 years. In the first nine months of 2017, we recorded capital lease obligations aggregating $217 million. 2021 MSAC Senior Secured Term Loan In November 2016, we entered into a five-year variable-rate facility agreement to obtain up to $800 million of financing, collateralized by certain production equipment. On March 6, 2017 and December 2, 2016, we drew $175 million and $450 million, respectively, under the 2021 MSAC Term Loan. On June 5, 2017, subsequent to the end of our third quarter of 2017, we drew the remaining $175 million under this facility. Interest is payable quarterly at a per annum rate equal to three-month LIBOR plus 2.4%. Principal is payable in 16 equal quarterly installments beginning in March 2018. The 2021 MSAC Term Loan contains covenants which are customary for financings of this type, including negative covenants that limit or restrict our ability to create liens or dispose of the equipment securing the facility agreement. The 2021 MSAC Term Loan also contains a covenant that the ratio of the outstanding loan to the fair value of the equipment collateralizing the loan not exceed 0.8. If such ratio is exceeded, we are required to grant a security interest in additional equipment and/or prepay the 2021 MSAC Term Loan in an amount sufficient to reduce such ratio to 0.8 or less. The 2021 MSAC Term Loan also contains customary events of default which could result in the acceleration of all amounts to be immediately due and payable. The 2021 MSAC Term Loan is guaranteed by Micron. 2021 MSTW Senior Secured Term Loan In connection with the Inotera Acquisition, on December 6, 2016, we drew 80 billion New Taiwan dollars under a collateralized, five-year term loan that bears interest at a variable per annum rate equal to the three-month or six-month TAIBOR, at our option, plus a margin of 2.05%. Principal under the 2021 MSTW Term Loan is payable in six equal semi-annual installments, commencing in June 2019, through December 2021. The 2021 MSTW Term Loan is collateralized by certain assets, including a real estate mortgage on MTTW's main production facility and site, a chattel mortgage over certain equipment of MTTW, all of the stock of our MSTW subsidiary, and the 82% of stock of MTTW owned by MSTW. The 2021 MSTW Term Loan is guaranteed by Micron. The 2021 MSTW Term Loan contains affirmative and negative covenants, including covenants that limit or restrict our ability to create liens in or dispose of collateral securing obligations under the 2021 MSTW Term Loan, mergers involving MSTW and/or MTTW, loans or guarantees to third parties by MTTW and/or MSTW, and MSTW's and/or MTTW's distribution of cash dividends. The 2021 MSTW Term Loan also contains financial covenants, which are tested semi-annually, as follows:
• | MSTW must maintain a consolidated ratio of total liabilities to adjusted EBITDA not higher than 5.5x in 2017 and 2018, and not higher than 4.5x in 2019 through 2021;
• | MSTW must maintain adjusted consolidated tangible net worth of not less than 4.0 billion New Taiwan dollars in 2017 and 2018, not less than 6.5 billion New Taiwan dollars in 2019 and 2020, and not less than 12.0 billion New Taiwan dollars in 2021;
• | on a consolidated basis, Micron must maintain a ratio of total liabilities to adjusted EBITDA not higher than 3.5x in 2017, not higher than 3.0x in 2018 and 2019, and not higher than 2.5x in 2020 and 2021; and
• | on a consolidated basis, Micron must maintain adjusted tangible net worth not less than $9.0 billion in 2017, not less than $12.5 billion in 2018 and 2019, and not less than $16.5 billion in 2020 and 2021.
If MSTW fails to maintain a required financial covenant, the interest rate will be increased by 0.25% until such time as the required financial ratios are maintained. If MSTW's failure continues for two consecutive semi-annual periods, such failure will constitute an event of default that could result in all obligations owed under the 2021 MSTW Term Loan being accelerated to be immediately due and payable. Micron's failure to maintain a required financial covenant will only result in a 0.25% increase to the interest rate but will not constitute an event of default. The 2021 MSTW Term Loan also contains customary events of default. Convertible Senior Notes As of June 1, 2017, the trading price of our common stock was higher than the initial conversion prices of our convertible notes. As a result, the conversion values for these notes exceeded the principal amounts by $1.77 billion as of June 1, 2017. 2022 Senior Secured Term Loan B Repricing Amendment On April 26, 2017, we amended our 2022 Term Loan B, substantially all of which was treated as a debt modification, to reduce the margins added to the base rate from 2.75% to 1.5% and to the adjusted LIBOR rate from 3.75% to 2.5%. In October 2016, we amended our 2022 Term Loan B, substantially all of which was treated as a debt modification, to reduce the margins added to the base rate from 5.00% to 2.75% and to the adjusted LIBOR rate from 6.00% to 3.75%.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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