Crucial 2013 Annual Report Download - page 123

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122
Capital Lease Obligations
We have various capital lease obligations due in periodic installments with a weighted-average remaining term of 2.9 years
and weighted-average effective interest rates of 4.7% as of August 29, 2013 and 4.8% as of August 30, 2012. In 2013, we
received $126 million in proceeds from equipment sale-leaseback transactions and as a result recorded capital lease obligations
aggregating $126 million at a weighted-average effective interest rate of 4.3%, payable in periodic installments through July,
2017. In 2012, we received $439 million in proceeds from equipment sale-leaseback transactions and as a result recorded
capital lease obligations aggregating $439 million at a weighted-average effective interest rate of 4.1%, payable in periodic
installments through August, 2016.
As of August 29, 2013 and August 30, 2012, production equipment with a carrying value of $458 million and $491 million,
respectively, was collateral for Micron's capital leases.
Convertible Senior Notes and Intel Senior Note
For further information, see "Item 8. Financial Statements and Supplementary Data – Debt" to Micron's consolidated
financial statements.
Maturities of Notes Payable and Future Minimum Lease Payments
As of August 29, 2013, maturities of notes payable and future minimum lease payments under capital lease obligations
were as follows:
As of August 29, 2013 Notes
Payable Capital Lease
Obligations
2014 $ 510 $ 181
2015 — 180
2016 — 200
2017 175 30
2018 645 3
2019 and thereafter 1,645 8
Discounts and interest, respectively (444)(49)
$ 2,531 $ 553
Commitments
Micron has various financial guarantees which are issued in the normal course of business on behalf of its subsidiaries.
These contracts include debt guarantees and guarantees on certain banking facilities. Micron enters into these arrangements to
facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. Micron has
entered into agreements covering purchases or sales, as applicable, by Micron or any of its subsidiaries, and occasionally
Micron may be required to perform under such agreements on behalf of its subsidiaries.
As of August 29, 2013, the maximum potential amount of future payments Micron could have been required to make under
its debt guarantees was approximately $705 million. Substantially all of this amount relates to guarantees for debt of wholly-
owned entities whereby Micron would be obligated to perform under the guarantee if a subsidiary were to default on the terms
of their debt arrangements. In the event of performance under the guarantee, Micron would be permitted to seek
reimbursement from the subsidiary company(s) through liquidation of the assets collateralized by the various debt instruments.
At the time these contracts were entered into, the collateralized assets approximated the value of the outstanding guarantees.
The majority of these guarantees expire at various times between December, 2014 and January, 2018. Micron also guarantees
credit facilities that provide for up to $408 million of additional financing. As of August 29, 2013, no amounts had been drawn
under these credit facilities.