Equity

Changes in the components of equity were as follows:



	Quarter Ended December 4, 2014									Quarter Ended November 28, 2013
	Attributable to Micron			Noncontrolling Interests			Total Equity			Attributable to Micron			Noncontrolling Interests			Total Equity
Beginning balance	$	10,771		$	802		$	11,573		$	9,142		$	864		$	10,006

Net income (loss)	1,003			(1		)	1,002			358			23			381
Other comprehensive income (loss)	(21		)	—			(21		)	5			—			5
Comprehensive income (loss)	982			(1		)	981			363			23			386

Contribution from noncontrolling interests	—			20			20			—			49			49
Distributions to noncontrolling interests	—			(6		)	(6		)	—			(9		)	(9		)
Capital and other transactions attributable to Micron	(75		)	—			(75		)	(286		)	—			(286		)
Ending balance	$	11,678		$	815		$	12,493		$	9,219		$	927		$	10,146

Micron Shareholders' Equity

Issued and Outstanding Capped Calls

We have capped calls with strike prices that range from $9.50 to $10.93 which are intended to reduce the effect of potential dilution from our convertible notes. These capped calls provide for the receipt of cash or shares, at our election, from counterparties if the trading price of our stock is above the specified initial strike prices at the capped call expiration dates. Amounts received would be based on the trading price of our stock and would range from $0 (if the trading price of our stock is below the initial strike prices for all of the capped calls) to $864 million (if the trading price of our stock is at or above the cap prices for all of the capped calls).

Restrictions on Net Assets

As a result of the reorganization proceedings of the MMJ Companies being initiated on March 23, 2012, and for so long as such proceedings are continuing, the MMJ Group is subject to certain restrictions on dividends, loans and advances. In addition, our ability to access IMFT's cash and other assets through dividends, loans or advances, including to finance our other operations, is subject to agreement by Intel. As a result, our total restricted net assets (net assets less intercompany balances and noncontrolling interests) as of December 4, 2014 were $3.17 billion for the MMJ Group, which included cash and equivalents of $1.53 billion, and $789 million for IMFT.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component for the quarter ended December 4, 2014, were as follows:



	Cumulative Foreign Currency Translation Adjustments			Gains (Losses) on Derivative Instruments, Net			Gains (Losses) on Investments, Net		Pension Liability Adjustments			Total
Balance as of August 28, 2014	$	42		$	12		$	1	$	1		$	56
Other comprehensive income before reclassifications	(24		)	(15		)	—		31			(8		)
Amount reclassified out of accumulated other comprehensive income	—			(2		)	—		(1		)	(3		)
Tax effects	—			1			—		(11		)	(10		)
Other comprehensive income (loss)	(24		)	(16		)	—		19			(21		)
Balance as of December 4, 2014	$	18		$	(4	)	$	1	$	20		$	35

Noncontrolling Interests in Subsidiaries



	December 4, 2014				August 28, 2014
	Noncontrolling Interest Balance		Noncontrolling Interest Percentage		Noncontrolling Interest Balance		Noncontrolling Interest Percentage
IMFT⁽¹⁾	$	707	49	%	$	693	49	%
MP Mask⁽¹⁾	93		50	%	93		50	%
Other	15		Various		16		Various
	$	815			$	802


⁽¹⁾	Entity is a variable interest entity.

IMFT

Since its inception in 2006, we have owned 51% of IMFT, a venture between us and Intel to manufacture NAND Flash memory products and certain emerging memory technologies for the exclusive use of the members. IMFT is governed by a Board of Managers, for which the number of managers appointed by each member varies based on the members' respective ownership interests. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights. Commencing in January 2015, Intel can put to us, and commencing in January 2018, we can call from Intel, Intel's interest in IMFT for an amount equal to the noncontrolling interest balance for Intel. If Intel elects to sell to us, we can elect to set the closing date of the transaction to be any time within two years following such election by Intel and can elect to receive financing of the purchase price from Intel for one to two years from the closing date.

IMFT manufactures NAND Flash memory products using designs and technology we develop with Intel. We generally share with Intel the costs of product design, other NAND Flash R&D costs and R&D costs of certain emerging memory technologies. Our R&D expenses were reduced by reimbursements from Intel of $54 million and $29 million for the first quarters of 2015 and 2014, respectively.

We sell a portion of our products to Intel through IMFT at long-term negotiated prices approximating cost. Sales of NAND Flash products to Intel under this arrangement were $108 million and $101 million for the first quarters of 2015 and 2014, respectively. Receivables from Intel as of December 4, 2014 and August 28, 2014, were $66 million and $66 million, respectively for these sales.

The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:



	December 4, 2014		August 28, 2014
Assets
Cash and equivalents	$	79	$	84
Receivables	77		73
Inventories	50		48
Other current assets	5		5
Total current assets	211		210
Property, plant and equipment, net	1,538		1,545
Other noncurrent assets	49		47
Total assets	$	1,798	$	1,802

Liabilities
Accounts payable and accrued expenses	$	101	$	106
Deferred income	8		8
Current portion of long-term debt	21		21
Total current liabilities	130		135
Long-term debt	65		71
Other noncurrent liabilities	107		110
Total liabilities	$	302	$	316

Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets.

The following table presents IMFT's distributions to and contributions from its shareholders:



Quarter ended	December 4, 2014		November 28, 2013
IMFT distributions to Micron	$	6	$	—
IMFT distributions to Intel	6		—
Micron contributions to IMFT	21		51
Intel contributions to IMFT	20		49

MP Mask

In 2006, we formed a joint venture with Photronics to produce photomasks for leading-edge and advanced next generation semiconductors. The MP Mask joint venture agreement allows either party to terminate the joint venture in either May 2016, provided notice is given prior to May 2015, or in each successive five-year period following May 2016, provided such notice is given at least twelve months prior to the end of the successive five-year period. Since its inception, we have owned approximately 50% and Photronics has owned approximately 50% of MP Mask. We purchase a substantial majority of the photomasks produced by MP Mask pursuant to a supply arrangement.

The following table presents the assets and liabilities of MP Mask included in our consolidated balance sheets:



	December 4, 2014		August 28, 2014
Current assets	$	23	$	24
Noncurrent assets (primarily property, plant and equipment)	202		203
Current liabilities	36		28
Noncurrent liabilities	6		14

Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

Creditors of MP Mask have recourse only to MP Mask's assets and do not have recourse to any other of our assets.