MICRON TECHNOLOGY INCMU

MICRON TECHNOLOGY INC Leases Disclosure

10-KFiled Oct 3, 20253 min read
Leases
We have finance and operating leases through which we obtain the right to use facilities, land, and equipment that support our business operations. Our finance leases consist primarily of (1) equipment leases and (2) gas and other supply agreements that are deemed to contain embedded leases. Our operating leases consist primarily of offices, laboratories, other facilities, and land. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 99 years for land. In determining the lease term, we assess whether we are reasonably certain to exercise any options to renew or terminate a lease or to purchase the right-of-use asset.
Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease. Our assessment includes determining whether we or the supplier control the assets used to fulfill the agreements by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those assets.

The components of lease cost are presented below:
For the year ended202520242023
Finance lease cost
Amortization of right-of-use asset$335 $176 $105 
Interest on lease liability127 70 24 
Operating lease cost(1)
153 140 137 
$615 $386 $266 
(1)Includes short-term and variable lease costs.

Supplemental cash flow information related to leases was as follows:
For the year ended202520242023
Cash flows used for operating activities
Finance leases
$120 $61 $24 
Operating leases
149 132 139 
Cash flows used for financing activities – Finance leases323 155 109 
Non-cash acquisitions of right-of-use assets
Finance leases1,298 905 508 
Operating leases
166 54 57 

Supplemental balance sheet information related to leases was as follows:
As ofAugust 28,
2025		August 29,
2024
Finance lease right-of-use assets (included in property, plant, and equipment)
$3,004 $2,038 
Current operating lease liabilities (included in accounts payable and accrued expenses)74 71 
Weighted-average remaining lease term (in years)
Finance leases
78
Operating leases
1210
Weighted-average discount rate
Finance leases
5.19 %4.91 %
Operating leases
4.26 %3.42 %
As of August 28, 2025, maturities of lease liabilities by fiscal year were as follows:
Finance LeasesOperating Leases
2026$675 $92 
2027660 97 
2028640 89 
2029548 83 
2030336 85 
2031 and thereafter647 628 
Less imputed interest
(462)(299)
$3,044 $775 

The table above excludes obligations for leases that have been executed but have not yet commenced. As of August 28, 2025, excluded obligations consisted of $1.16 billion of finance lease obligations over a weighted-average period of 15 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

Historical Timeline

Fiscal YearFiled
2025Oct 3, 2025Showing above
2024Oct 4, 2024
2023Oct 6, 2023
2022Oct 7, 2022
2021Oct 8, 2021
2020Oct 19, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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