Crucial 2014 Annual Report Download - page 113

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111
(5) As a result of these notes being convertible at the option of the holder through September 30, 2014, and because the
terms of these notes would require Micron to pay cash for the principal amount of any converted notes, amounts are
classified as current.
Micron's senior notes are unsecured obligations ranking equally in right of payment with all of Micron's other existing and
future unsecured indebtedness, and are effectively subordinated to all of Micron's other existing and future secured
indebtedness, to the extent of the value of the assets securing such indebtedness. The convertible notes, 2022 Notes and 2025
Notes of Micron are structurally subordinated to $1.57 billion of other notes payable of its subsidiaries and capital lease
obligations. MTI guarantees certain debt obligations of its subsidiaries. MTI does not guarantee the MMJ creditor installment
payments. As of August 28, 2014, Micron had guaranteed $610 million of debt obligations of its subsidiaries. Micron's
guarantees of its subsidiary debt obligations are unsecured obligations ranking equally in right of payment with all of its other
existing and future unsecured indebtedness.
Capital Lease Obligations
Micron has various capital lease obligations due in periodic installments with a weighted-average remaining term of 2
years. In 2013, Micron received $126 million in proceeds from equipment sale-leaseback transactions and, as a result, recorded
capital lease obligations aggregating $126 million with a weighted-average effective interest rate of 4.3%, payable in periodic
installments through July 2017.
As of August 28, 2014 and August 29, 2013, Micron had production equipment with carrying values of $305 million and
$458 million, respectively, under capital leases.
Convertible Senior Notes and Other Senior Notes
For further information, see "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements – Debt" to Micron's consolidated financial statements.
Maturities of Notes Payable and Future Minimum Lease Payments
As of August 28, 2014, maturities of notes payable and future minimum lease payments under capital lease obligations
were as follows:
Notes
Payable Capital Lease
Obligations
2015 $ 389 $ 188
2016 — 200
2017 — 30
2018 300 3
2019 362 3
2020 and thereafter 3,320 6
Discounts and interest, respectively (468)(25)
$ 3,903 $ 405
Commitments
Micron has provided various financial guarantees 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 certain activities of its subsidiaries, and occasionally Micron may be required to perform
under such agreements on behalf of its subsidiaries.