Crucial 2012 Annual Report Download - page 80

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Stock-based compensation expense of $5 million and $5 million was capitalized and remained in inventory as of
August 30, 2012 and September 1, 2011, respectively. As of August 30, 2012, $138 million of total unrecognized
compensation costs, net of estimated forfeitures, related to non-vested awards was expected to be recognized through the fourth
quarter of 2016, resulting in a weighted-average period of 1.2 years. Stock-based compensation expense in the above
presentation does not reflect any significant income tax benefits, which is consistent with our treatment of income or loss from
our U.S. operations. (See "Income Taxes" note.)
Employee Benefit Plans
We have employee retirement plans at our U.S. and international sites. Details of the more significant plans are discussed
as follows:
Employee Savings Plan for U.S. Employees
We have 401(k) retirement plans ("RAM Plans") under which U.S. employees may contribute up to 75% of their eligible
pay (subject to IRS annual contribution limits) to various savings alternatives, none of which include direct investment in our
common stock. In 2011 we reinstated our match under the RAM Plans after being suspended in 2009. We match in cash
eligible contributions from employees up to 5% of the employee's annual eligible earnings. Contribution expense for the RAM
Plans was $41 million and $26 million in 2012 and 2011, respectively.
Retirement Plans
We have pension plans in various countries worldwide. The pension plans are only available to local employees and are
generally government mandated. We have determined that these pension plans are not material for separate disclosure.
Other Operating (Income) Expense, Net
For the year ended 2012 2011 2010
Loss from termination of lease to IMFT $ 17 $ — $ —
Restructure 7 (21)(10)
(Gain) loss from changes in currency exchange rates 6 6 23
(Gain) loss on disposition of property, plant and equipment 5 (17)(1)
Samsung patent cross-license agreement — (275) —
Gain from disposition of Japan Fab — (54) —
Other 13 (19)(39)
$ 48 $ (380) $ (27)
In the first quarter of 2011, we entered into a 10-year patent cross-license agreement with Samsung Electronics Co. Ltd.
("Samsung"). Other operating income for 2011 included gains of $275 million for cash received from Samsung under the
agreement. The license is a life-of-patents license for existing patents and applications, and a 10-year term license for all other
patents.
Other operating income in 2011 included $8 million for receipts from the U.S. government in connection with anti-
dumping tariffs. Other operating income in 2010 included $24 million of grant income related to our operations in China and
$12 million of receipts from the U.S. government in connection with anti-dumping tariffs.