Debt



As of	November 30, 2017										August 31, 2017
Instrument	Stated Rate		Effective Rate		Current		Long-Term		Total		Current		Long-Term		Total
MMJ Creditor Payments	N/A		6.52	%	$	157	$	474	$	631	$	157	$	474	$	631
Capital lease obligations	N/A		3.74	%	354		759		1,113		357		833		1,190
2021 MSAC Term Loan	3.72	%	3.95	%	149		648		797		99		697		796
2021 MSTW Term Loan	2.85	%	3.01	%	—		2,655		2,655		—		2,640		2,640
2022 Term Loan B	3.39	%	3.80	%	5		724		729		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	%	234		164		398		—		211		211
2032D Notes⁽¹⁾	3.13	%	6.33	%	—		160		160		—		159		159
2033E Notes⁽¹⁾	1.63	%	4.50	%	77		—		77		202		—		202
2033F Notes⁽¹⁾	2.13	%	4.93	%	280		—		280		278		—		278
2043G Notes	3.00	%	6.76	%	—		675		675		—		671		671
IMFT Member Debt	0.00	%	0.00	%	—		150		150		—		—		—
Other notes	2.00	%	2.56	%	145		45		190		164		44		208
					$	1,401	$	7,644	$	9,045	$	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 September 30, 2017, these notes are convertible by the holders through the calendar quarter ended December 31, 2017. 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. A portion of the 2032C Notes were classified as current because holders had converted the notes and they were not settled as of November 30, 2017.

Debt Repurchases and Conversions

During the first quarter of 2018, we repurchased or converted an aggregate of $2.36 billion principal amount of our debt.

If we receive a notice of conversion for any of our convertible notes, and we 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 quarter of 2018:



Quarter ended November 30, 2017	Decrease in Principal			Increase (Decrease) in Carrying Value			Decrease in Cash			Decrease in Equity			Gain (Loss)
Repurchases
2023 Secured Notes⁽¹⁾	$	(1,250	)	$	(1,238	)	$	(1,373	)	$	—		$	(135	)
2023 Notes⁽²⁾	(1,000		)	(991		)	(1,046		)	—			(55		)
Conversions
2033E Notes⁽³⁾	(105		)	(125		)	(216		)	(81		)	(10		)
2032C Notes⁽⁴⁾	—			186			—			(191		)	5
	$	(2,355	)	$	(2,168	)	$	(2,635	)	$	(272	)	$	(195	)


⁽¹⁾	Redeemed $438 million of principal amount on November 13, 2017, which represented 35% of the original principal amount issued and was settled with proceeds from our common stock issuance in October 2017. Also redeemed the remaining $812 million of principal amount on November 16, 2017.


⁽²⁾	Redeemed on November 16, 2017.

⁽³⁾

In August 2017, holders converted an aggregate principal amount of $58 million, which were settled in the first quarter of 2018 for $92 million in cash and 3 million shares of our treasury stock. During the quarter ended November 30, 2017, holders converted an aggregate principal amount of $50 million. For converted notes with an aggregate principal amount of $20 million, we settled the principal amount of the conversion in the first quarter of 2018 with cash of $20 million and the remainder of the conversion amount was settled with 1 million shares of our treasury stock. For the remaining aggregate principal amount of $30 million of conversions in the first quarter of 2018, we elected to settle the conversion obligation in excess of the principal amount in cash. We paid $104 million in the first quarter of 2018 to settle obligations for $27 million of the aggregate principal amount and obligations for the remaining $3 million in principal will settle in the second quarter of 2018.


⁽⁴⁾	Holders converted an aggregate principal amount of $51 million and we elected to settle the conversion obligation in excess of the principal amount in cash. As a result, the carrying amount as of November 30, 2017 increased for the fair values of the derivative debt liability. The conversion of these notes will settle in the second quarter of 2018.

IMFT Member Debt

In November 2017, Intel provided debt financing (the "IMFT Member Debt") of $150 million to IMFT pursuant to the terms of the IMFT joint venture agreement. Pursuant to the IMFT joint venture agreement, the 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. Upon conversion, the IMFT Member Debt would be added to IMFT's capital balance as a contribution from Intel. 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, without penalty or premium. 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.

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 November 30, 2017, the 2022 Term Loan B bears interest at LIBOR plus 2.00%.

Convertible Senior Notes

As of November 30, 2017, 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 $2.87 billion as of November 30, 2017.