Crucial 2015 Annual Report Download - page 62

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60
2015 2014
As of
Expected
Remaining
Term
(Years)(1) Outstanding
Principal
Unamortized
Discount and
Debt Issuance
Costs
Net
Carrying
Amount Outstanding
Principal
Unamortized
Discount and
Debt Issuance
Costs
Net
Carrying
Amount
MMJ creditor
installment payments 4 $ 1,012 $ (150) $ 862 $ 1,369 $ (238) $ 1,131
Capital lease obligations 4 792 — 792 911 — 911
1.258% notes 3 323 (19) 304 416 (25) 391
2022 Notes 6 600 (11) 589 600 (13) 587
2023 Notes 8 1,000 (12) 988 — — —
2024 Notes 8 550 (5) 545 — — —
2025 Notes 9 1,150 (12) 1,138 1,150 (13) 1,137
2026 Notes 10 450 (4) 446 — — —
2031B Notes(2) N/A — — — 114 (28) 361
2032C Notes 4 224 (27) 197 362 (53) 309
2032D Notes 6 177 (27) 150 344 (60) 284
2033E Notes 2 233 (16) 217 300 (28) 272
2033F Notes 4 297 (33) 264 300 (40) 260
2043G Notes(3) 13 1,025 (381) 644 1,025 (394) 631
Other notes payable 4 205 — 205 243 (6) 237
$ 8,038 $ (697) $ 7,341 $ 7,134 $ (898) $ 6,511
(1) Expected remaining term for amortization of the remaining unamortized discount and debt issuance costs as of
September 3, 2015. The expected remaining term of the 2031B Notes was not applicable because the notes were not
outstanding as of September 3, 2015. Expected remaining term for capital lease obligations is the weighted-average
remaining term.
(2) As holders had elected to convert these notes and we elected to settle the conversions in cash, the net carrying amount
for 2014 included the debt component and equity component, which were reclassified to a debt liability as a result of
our obligation to settle the conversions of the 2031B Notes in cash, resulting in an aggregate liability of $389 million.
The outstanding principal reflects the original principal of the 2031B Notes.
(3) The 2043G Notes have an original principal amount of $820 million that accretes up to $917 million through the
expected term on November 15, 2028 and $1.03 billion at maturity in 2043. The discount is based on the principal at
maturity. See "2043G Notes" below.
Our convertible and senior notes 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. Our parent company, Micron, has $5.18
billion of debt (net of unamortized discount and debt issuance costs), including all of our convertible notes and the 2022 Notes,
2023 Notes, 2024 Notes, 2025 Notes, and 2026 Notes, that is structurally subordinated to all liabilities of its subsidiaries,
including trade payables. Micron guarantees certain debt obligations of its subsidiaries. Micron does not guarantee the MMJ
creditor installment payments. 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.