Crucial 2012 Annual Report Download - page 61

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As a result of the ongoing challenging global environment in the solar industry and unfavorable worldwide supply and
demand conditions, on May 25, 2012, the Board of Directors of Transform approved a liquidation plan. As a result of the
liquidation plan, we recognized a charge of $69 million in the third quarter of 2012. As of August 30, 2012, Transform's
operations were substantially discontinued.
Other
Other equity method investments includes our 35% equity interest in Aptina. In 2009, we sold a 65% interest in Aptina,
previously a wholly-owned subsidiary. A portion of the 65% interest we sold is in the form of convertible preferred shares that
have a liquidation preference over Aptina's common shares. We recognize our share of Aptina's earnings or losses based on our
common stock ownership percentage, which was 64% as of August 30, 2012. During the second quarter of 2012, the amount
of cumulative loss we recognized from our investment in Aptina reduced our investment balance to zero and we ceased
recognizing our proportionate share of Aptina's losses. We will resume recognizing our proportionate share of Aptina's
earnings only when our proportionate share of its earnings exceeds the amount of cumulative net losses not recognized.
We manufacture components for CMOS image sensors for Aptina under a wafer supply agreement. For 2012, 2011 and
2010, we recognized net sales of $372 million, $349 million and $372 million, respectively, from products sold to Aptina, and
cost of goods sold of $395 million, $358 million and $385 million, respectively.
Other equity method investments also included our 50% investment in MeiYa Technology Corporation ("MeiYa"). In
connection with our acquisition of an equity interest in Inotera, we entered into agreements with Nanya pursuant to which both
parties ceased future funding of, and resource commitments to, MeiYa. Additionally, MeiYa sold substantially all of its assets
to Inotera. In the second quarter of 2011, we and Nanya each received a distribution from MeiYa of $48 million as a return of
capital, representing substantially all of MeiYa's assets. In May 2012, we received $1 million as a return of our remaining
MeiYa investment.
Intangible Assets
As of 2012 2011
Gross
Amount Accumulated Amortization Gross Amount Accumulated Amortization
Product and process technology $ 575 $ (234) $ 571 $ (203)
Customer relationships 127 (98) 127 (82)
Other 1 — 1 —
$ 703 $ (332) $ 699 $ (285)
During 2012 and 2011, we capitalized $47 million and $170 million, respectively, for product and process technology with
weighted-average useful lives of 10 years and 7 years, respectively. Amortization expense was $88 million, $79 million and
$96 million for 2012, 2011 and 2010, respectively. Annual amortization expense is estimated to be $83 million for 2013, $76
million for 2014, $58 million for 2015, $50 million for 2016 and $40 million for 2017.
Accounts Payable and Accrued Expenses
As of 2012 2011
Accounts payable $ 818 $ 1,187
Salaries, wages and benefits 290 304
Customer advances 141 7
Related party payables 130 141
Income and other taxes 25 30
Other 237 161
$ 1,641 $ 1,830