Debt



As of	March 1, 2018										August 31, 2017
Instrument	Stated Rate		Effective Rate		Current		Long-Term		Total		Current		Long-Term		Total
MMJ Creditor Payments	N/A		6.52	%	$	238	$	261	$	499	$	157	$	474	$	631
Capital lease obligations	N/A		3.75	%	371		679		1,050		357		833		1,190
2021 MSAC Term Loan	3.89	%	4.13	%	199		578		777		99		697		796
2021 MSTW Term Loan	2.85	%	3.01	%	—		2,716		2,716		—		2,640		2,640
2022 Term Loan B	3.65	%	4.06	%	5		723		728		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	%	—		165		165		—		211		211
2032D Notes⁽¹⁾	3.13	%	6.33	%	—		161		161		—		159		159
2033E Notes⁽¹⁾⁽²⁾	1.63	%	1.63	%	197		—		197		202		—		202
2033F Notes⁽¹⁾⁽²⁾	2.13	%	4.93	%	378		—		378		278		—		278
2043G Notes⁽¹⁾	3.00	%	6.76	%	—		679		679		—		671		671
IMFT Member Debt	0.00	%	0.00	%	—		650		650		—		—		—
Other notes	2.09	%	2.65	%	126		—		126		164		44		208
					$	1,514	$	7,802	$	9,316	$	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 December 31, 2017, these notes are convertible by the holders through the calendar quarter ended March 31, 2018. 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.

⁽²⁾

Amounts as of March 1, 2018 include $178 million and $129 million for the settlement obligation (principal and amounts in excess of principal) of 2033E Notes and 2033F Notes, respectively, that had been converted but not settled. Amounts as of August 31, 2017 include $88 million for the settlement obligation (principal and amounts in excess of principal) of 2033E Notes that had been converted but not settled.

Debt Repurchases and Conversions

During the first six months of 2018, we repurchased or settled as a result of conversion an aggregate of $2.42 billion principal amount of our debt. When we receive a notice of conversion for any of our convertible notes and 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 six months of 2018:



Six months ended March 1, 2018	Decrease in Principal			Increase (Decrease) in Carrying Value			Decrease in Cash			Decrease in Equity			Gain (Loss)
Repurchases
2023 Notes	$	(1,000	)	$	(991	)	$	(1,046	)	$	—		$	(55	)
2023 Secured Notes	(1,250		)	(1,238		)	(1,373		)	—			(135		)
Settled Conversions
2032C Notes	(52		)	(49		)	(240		)	(195		)	4
2033E Notes⁽¹⁾	(113		)	(143		)	(249		)	(97		)	(9		)
2033F Notes	(5		)	(5		)	(22		)	(17		)	—
Conversions not settled
2033E Notes⁽²⁾	—			137			—			(124		)	(13		)
2033F Notes⁽²⁾	—			101			—			(91		)	(10		)
	$	(2,420	)	$	(2,188	)	$	(2,930	)	$	(524	)	$	(218	)


⁽¹⁾	Settlement included 4 million shares of our treasury stock in addition to cash.


⁽²⁾	As of March 1, 2018, $41 million in principal amount of the 2033E Notes and $30 million in principal amount of the 2033F Notes had converted but not settled. These notes will settle in cash in the third quarter of 2018.

IMFT Member Debt

In November 2017 and December 2017, Intel provided debt financing ("IMFT Member Debt") of $150 million and $500 million, respectively, to IMFT pursuant to the terms of the IMFT joint venture agreement. 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. 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. 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. (See "Equity – Noncontrolling Interest in Subsidiaries – IMFT" note.)

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 March 1, 2018, the 2022 Term Loan B bears interest at LIBOR plus 2.00%.

Convertible Senior Notes

As of March 1, 2018, 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 $3.18 billion as of March 1, 2018.