Crucial 2013 Annual Report Download - page 71

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70
Intangible Assets
As of 2013 2012
Gross
Amount Accumulated
Amortization Gross
Amount Accumulated
Amortization
Product and process technology $ 642 $ (269) $ 575 $ (234)
Customer relationships 127 (114) 127 (98)
Other — — 1 —
$ 769 $ (383) $ 703 $ (332)
During 2013 and 2012, we capitalized $100 million and $47 million, respectively, for product and process technology with
weighted-average useful lives of 7 years and 10 years, respectively. Amortization expense was $83 million, $88 million and
$79 million for 2013, 2012 and 2011, respectively. Annual amortization expense is estimated to be $90 million for 2014, $73
million for 2015, $65 million for 2016, $54 million for 2017 and $44 million for 2018.
Accounts Payable and Accrued Expenses
As of 2013 2012
Accounts payable $ 1,048 $ 818
Related party payables 374 130
Salaries, wages and benefits 267 290
Customer advances 140 141
Income and other taxes 47 25
Other 239 237
$ 2,115 $ 1,641
As of August 29, 2013 and August 30, 2012, related party payables included $345 million and $130 million, respectively,
due to Inotera primarily for the purchase of DRAM products under the Inotera Supply Agreement. As of August 29, 2013,
related party payables also included $29 million due to Tera Probe for probe services performed. (See "Equity Method
Investments" note.)
As of August 29, 2013 and August 30, 2012, customer advances included $134 million and $139 million, respectively, for
amounts received from Intel to be applied to Intel's future purchases under a NAND Flash supply agreement. In addition, as of
August 30, 2012, other noncurrent liabilities included $120 million, respectively, from this agreement. (See "Consolidated
Variable Interest Entities – IM Flash" note.)
As of August 30, 2012, other accounts payable and accrued expenses included $51 million of liabilities associated with
currency hedges executed in connection with the Sponsor Agreement and Rexchip Share Purchase Agreement. As of
August 29, 2013 and August 30, 2012, other accounts payable and accrued expenses included $8 million and $14 million,
respectively, due to Intel for NAND Flash product design and process development and licensing fees pursuant to cost-sharing
agreements. (See "Derivative Financial Instruments" and "Consolidated Variable Interest Entities – IM Flash" notes.)