Consolidated Variable Interest Entities
 9 Months Ended
May 30, 2013
Disclosure Text Block [Abstract]  
Variable Interest Entities Disclosure [Text Block]
Consolidated Variable Interest Entities

IM Flash

IMFT: Since its inception in 2006 through May 30, 2013, we have owned 51% of IMFT, a venture between us and Intel to manufacture NAND Flash memory products and, since the third quarter of 2012, certain emerging memory technologies, for the exclusive use of the members. IMFT is governed by a Board of Managers and the number of managers appointed by each member to the board varies based on the members' respective ownership interests, which is based on cumulative contributions to IMFT. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights, commencing in 2015, pursuant to which Intel may elect to sell to us, or we may elect to purchase from Intel, Intel's interest in IMFT. If Intel elects to sell to us, we would set the closing date of the transaction within two years following such election and could 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 cost of product design, other NAND Flash R&D costs and, since the third quarter of 2012, the R&D cost of certain emerging memory technologies. Our R&D expenses were reduced by reimbursements from Intel of $33 million and $99 million for the third quarter and first nine months of 2013, respectively, and $18 million and $60 million for the third quarter and first nine months of 2012, respectively.

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

As of
 
May 30,
2013
 
August 30, 2012
Assets
 
 
 
 
Cash and equivalents
 
$
62

 
$
157

Receivables
 
58

 
78

Inventories
 
61

 
67

Other current assets
 
3

 
5

Total current assets
 
184

 
307

Property, plant and equipment, net
 
1,401

 
1,342

Other noncurrent assets
 
45

 
36

Total assets
 
$
1,630

 
$
1,685

 
 
 
 
 
Liabilities
 
 

 
 

Accounts payable and accrued expenses
 
$
82

 
$
104

Deferred income
 
9

 
10

Equipment purchase contracts
 
76

 
58

Current portion of long-term debt
 
6

 
6

Total current liabilities
 
173

 
178

Long-term debt
 
14

 
18

Other noncurrent liabilities
 
120

 
129

Total liabilities
 
$
307

 
$
325


Our ability to access IMFT's cash and investments to finance our other operations is subject to agreement by Intel. Creditors of IMFT have recourse only to its assets and do not have recourse to any other of our assets.

IMFS: We partnered with Intel in 2007 to form IM Flash Singapore, LLP ("IMFS") to manufacture NAND Flash memory products for the exclusive use of the members. For the third quarter of 2012, we acquired Intel's remaining interest in IMFS and terminated IMFS' supply agreement with us and Intel.

Supply Agreements: IMFT sells products to the joint venture members generally in proportion to their ownership interests at long-term negotiated prices approximating cost. Prior to the third quarter of 2012, IMFS also sold product to us and Intel generally in proportion to our ownership interests at long-term negotiated prices approximating cost. Due to changes in the ownership interest of IMFS, our share of its output grew from 57% at the beginning of the first quarter of 2012 to 78% in the second quarter of 2012. As a result of our acquisition of Intel's remaining interest in IMFS, the termination of IMFT's lease to a portion of our Virginia facility and other IM Flash restructuring agreements with Intel, Intel has not had rights to the output from either IMFS or our Virginia facility since the third quarter of 2012. Subsequent to the third quarter of 2012, we also sell NAND Flash products to Intel under other negotiated arrangements.

Aggregate NAND Flash sales to Intel were $258 million and $566 million for the third quarter and first nine months of 2013, respectively, and were $300 million and $816 million for the third quarter and first nine months of 2012, respectively. Receivables from Intel as of May 30, 2013 and August 30, 2012 were $171 million and $103 million, respectively, for sales of NAND Flash products.

IM Flash distributions and contributions: The following table presents IM Flash's distributions to and contributions from its shareholders ("IM Flash" includes both IMFT and IMFS prior to April 6, 2012 and includes only IMFT from April 6, 2013 through May 30, 2013):

 
 
Quarter Ended
 
Nine Months Ended
 
 
May 30,
2013
 
May 31,
2012
 
May 30,
2013
 
May 31,
2012
IM Flash distributions to Micron
 
$
34

 
$
249

 
$
34

 
$
402

IM Flash distributions to Intel
 
33

 
240

 
33

 
387

Micron contributions to IM Flash
 
2

 
—

 
12

 
103

Intel contributions to IM Flash
 
1

 
—

 
11

 
131


MP Mask

In 2006, we formed a joint venture with Photronics to produce photomasks for leading-edge and advanced next generation semiconductors.  At inception through May 30, 2013, we owned 50.01% and Photronics owned 49.99% of MP Mask.  For the third quarter and first nine months of 2012, we contributed $13 million and $21 million, respectively, and Photronics contributed $13 million and $20 million, respectively, to MP Mask. In connection with the formation of the joint venture in 2006, we received $72 million in exchange for entering into a license agreement with Photronics, which is being recognized over the term of the 10-year agreement.  Deferred income and other noncurrent liabilities included an aggregate of $21 million and $26 million as of May 30, 2013 and August 30, 2012, respectively, related to this agreement. We purchase a substantial majority of the reticles 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, excluding intercompany balances:

As of
 
May 30,
2013
 
August 30, 2012
Current assets
 
$
29

 
$
19

Noncurrent assets (primarily property, plant and equipment)
 
188

 
170

Current liabilities
 
33

 
12



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