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Debt | 3 Months Ended
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Nov. 30, 2017
Debt Disclosure [Abstract] |
Debt | Debt
As of |  | November 30, 2017 |  | August 31, 2017
Instrument |  | Stated Rate |  | Effective Rate |  | Current |  | Long-Term |  | Total |  | Current |  | Long-Term |  | Total
MMJ Creditor Payments |  | N/A |  |  | 6.52 | % |  | $ | 157 |  |  | $ | 474 |  |  | $ | 631 |  |  | $ | 157 |  |  | $ | 474 |  |  | $ | 631 |
Capital lease obligations |  | N/A |  |  | 3.74 | % |  | 354 |  |  | 759 |  |  | 1,113 |  |  | 357 |  |  | 833 |  |  | 1,190 |
2021 MSAC Term Loan |  | 3.72 | % |  | 3.95 | % |  | 149 |  |  | 648 |  |  | 797 |  |  | 99 |  |  | 697 |  |  | 796 |
2021 MSTW Term Loan |  | 2.85 | % |  | 3.01 | % |  | — |  |  | 2,655 |  |  | 2,655 |  |  | — |  |  | 2,640 |  |  | 2,640 |
2022 Term Loan B |  | 3.39 | % |  | 3.80 | % |  | 5 |  |  | 724 |  |  | 729 |  |  | 5 |  |  | 725 |  |  | 730 |
2023 Notes |  | 5.25 | % |  | 5.43 | % |  | — |  |  | — |  |  | — |  |  | — |  |  | 991 |  |  | 991 |
2023 Secured Notes |  | 7.50 | % |  | 7.69 | % |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,238 |  |  | 1,238 |
2024 Notes |  | 5.25 | % |  | 5.38 | % |  | — |  |  | 546 |  |  | 546 |  |  | — |  |  | 546 |  |  | 546 |
2025 Notes |  | 5.50 | % |  | 5.56 | % |  | — |  |  | 515 |  |  | 515 |  |  | — |  |  | 515 |  |  | 515 |
2026 Notes |  | 5.63 | % |  | 5.73 | % |  | — |  |  | 129 |  |  | 129 |  |  | — |  |  | 128 |  |  | 128 |
2032C Notes(1) |  | 2.38 | % |  | 5.95 | % |  | 234 |  |  | 164 |  |  | 398 |  |  | — |  |  | 211 |  |  | 211 |
2032D Notes(1) |  | 3.13 | % |  | 6.33 | % |  | — |  |  | 160 |  |  | 160 |  |  | — |  |  | 159 |  |  | 159 |
2033E Notes(1) |  | 1.63 | % |  | 4.50 | % |  | 77 |  |  | — |  |  | 77 |  |  | 202 |  |  | — |  |  | 202 |
2033F Notes(1) |  | 2.13 | % |  | 4.93 | % |  | 280 |  |  | — |  |  | 280 |  |  | 278 |  |  | — |  |  | 278 |
2043G Notes |  | 3.00 | % |  | 6.76 | % |  | — |  |  | 675 |  |  | 675 |  |  | — |  |  | 671 |  |  | 671 |
IMFT Member Debt |  | 0.00 | % |  | 0.00 | % |  | — |  |  | 150 |  |  | 150 |  |  | — |  |  | — |  |  | — |
Other notes |  | 2.00 | % |  | 2.56 | % |  | 145 |  |  | 45 |  |  | 190 |  |  | 164 |  |  | 44 |  |  | 208 |
|  |  |  |  |  | $ | 1,401 |  |  | $ | 7,644 |  |  | $ | 9,045 |  |  | $ | 1,262 |  |  | $ | 9,872 |  |  | $ | 11,134 |
(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 September 30, 2017, these notes are convertible by the holders through the calendar quarter ended December 31, 2017. The 2033 Notes were classified as current 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 the dates presented. A portion of the 2032C Notes were classified as current because holders had converted the notes and they were not settled as of November 30, 2017.
Debt Repurchases and Conversions During the first quarter of 2018, we repurchased or converted an aggregate of $2.36 billion principal amount of our debt. If we receive a notice of conversion for any of our convertible notes, and we elect to settle in cash any amount of the conversion obligation in excess of the principal amount, the cash settlement obligations become derivative debt liabilities subject to mark-to-market accounting treatment based on the volume-weighted-average price of our common stock over a period of 20 consecutive trading days. Accordingly, at the date of our election to settle a conversion in cash, we reclassify the fair value of the equity component of the converted notes from additional capital to derivative debt liability within current debt in our consolidated balance sheet. The following table presents the effects of repurchases and conversions of our debt in the first quarter of 2018:
Quarter ended November 30, 2017 |  | Decrease in Principal |  | Increase (Decrease) in Carrying Value |  | Decrease in Cash |  | Decrease in Equity |  | Gain (Loss)
Repurchases |  |  |  |  |  |  |  |  |  |
2023 Secured Notes(1) |  | $ | (1,250 | ) |  | $ | (1,238 | ) |  | $ | (1,373 | ) |  | $ | — |  |  | $ | (135 | )
2023 Notes(2) |  | (1,000 | ) |  | (991 | ) |  | (1,046 | ) |  | — |  |  | (55 | )
Conversions |  |  |  |  |  |  |  |  |  |
2033E Notes(3) |  | (105 | ) |  | (125 | ) |  | (216 | ) |  | (81 | ) |  | (10 | )
2032C Notes(4) |  | — |  |  | 186 |  |  | — |  |  | (191 | ) |  | 5 |
|  | $ | (2,355 | ) |  | $ | (2,168 | ) |  | $ | (2,635 | ) |  | $ | (272 | ) |  | $ | (195 | )
(1) | Redeemed $438 million of principal amount on November 13, 2017, which represented 35% of the original principal amount issued and was settled with proceeds from our common stock issuance in October 2017. Also redeemed the remaining $812 million of principal amount on November 16, 2017.
(2) | Redeemed on November 16, 2017.
(3) | In August 2017, holders converted an aggregate principal amount of $58 million, which were settled in the first quarter of 2018 for $92 million in cash and 3 million shares of our treasury stock. During the quarter ended November 30, 2017, holders converted an aggregate principal amount of $50 million. For converted notes with an aggregate principal amount of $20 million, we settled the principal amount of the conversion in the first quarter of 2018 with cash of $20 million and the remainder of the conversion amount was settled with 1 million shares of our treasury stock. For the remaining aggregate principal amount of $30 million of conversions in the first quarter of 2018, we elected to settle the conversion obligation in excess of the principal amount in cash. We paid $104 million in the first quarter of 2018 to settle obligations for $27 million of the aggregate principal amount and obligations for the remaining $3 million in principal will settle in the second quarter of 2018.
(4) | Holders converted an aggregate principal amount of $51 million and we elected to settle the conversion obligation in excess of the principal amount in cash. As a result, the carrying amount as of November 30, 2017 increased for the fair values of the derivative debt liability. The conversion of these notes will settle in the second quarter of 2018.
IMFT Member Debt In November 2017, Intel provided debt financing (the "IMFT Member Debt") of $150 million to IMFT pursuant to the terms of the IMFT joint venture agreement. Pursuant to the IMFT joint venture agreement, the IMFT Member Debt bears no interest, matures upon the completion of the auction and the sale of assets of IMFT prior to the dissolution, liquidation, or other wind-up of IMFT, and is convertible, at the election of Intel, in whole or in part, into a capital contribution to IMFT. Upon conversion, the IMFT Member Debt would be added to IMFT's capital balance as a contribution from Intel. Additionally, to the extent IMFT distributes cash to its members under the terms of the IMFT joint venture agreement, Intel may, at its option, designate any portion of the distribution to be a repayment of the IMFT Member Debt, without penalty or premium. In the event Intel exercises its right to put its interest in IMFT to us, or if we exercise our right to call from Intel its interest in IMFT, Intel will transfer to Micron any IMFT Member Debt outstanding at the time of the closing of the put or call transaction. 2022 Senior Secured Term Loan B Repricing Amendment On October 26, 2017, we amended our 2022 Term Loan B, substantially all of which was treated as a debt modification, to reduce the interest rate margins. As of November 30, 2017, the 2022 Term Loan B bears interest at LIBOR plus 2.00%. Convertible Senior Notes As of November 30, 2017, the trading price of our common stock was higher than the initial conversion prices of our convertibles notes. As a result, the conversion values for these notes exceeded the principal amounts by $2.87 billion as of November 30, 2017.

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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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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