Crucial 2013 Annual Report Download - page 95

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In order to optimize operations, improve efficiency and increase our focus on our core memory operations, we have
entered into various restructure activities. For 2013, restructure and asset impairment charges of $12 million, $11 million,
$11 million and $6 million were recorded by our ESG, WSG, NSG and DSG operating segments. For 2012, restructure and
asset impairment charges of $6 million and $3 million were recorded by our WSG and ESG operating segments and a gain of
$1 million was recorded by our NSG operating segment. For 2011, restructure and asset impairment charges of $23 million,
$21 million, $21 million and $4 million were recorded by our DSG, NSG, WSG and ESG operating segments. Our other
segments that do not meet the quantitative thresholds of a reportable segment are reported under All Other and recorded the
remaining restructure and asset impairment charges. (See "Segments" note.) As of August 29, 2013, we had accrued
$12 million for unpaid other restructure activities related to our workforce optimization activity. As of August 29, 2013, we do
not anticipate incurring any significant additional costs for these restructure activities.
Micron Technology Italia, S.r.l. ("MIT")
On May 3, 2013, we sold MIT, a wholly-owned subsidiary, including its 200mm wafer fabrication facility assets in
Avezzano, Italy, to LFoundry. In exchange for the shares of MIT, we received consideration from LFoundry valued at
$35 million, substantially all of which was under a 7-year, non-interest bearing term note. Under the terms of the agreements,
we assigned to LFoundry our supply agreement with Aptina for CMOS image sensors manufactured at the Avezzano facility.
The assets and liabilities of MIT, and related imager inventories, were classified as held for sale in 2013 and we recorded
an impairment loss of $62 million to write down the assets and liabilities to their estimated fair values. The fair values were
determined primarily based on the estimated fair value of proceeds from the sale to LFoundry (Level 3 fair value
measurement). The carrying values of the MIT assets and liabilities sold, after the effects of the write down, were as follows:
Other current assets $ 75
Other noncurrent assets 37
Accounts payable and accrued expenses (43)
Other noncurrent liabilities (34)
$ 35
Light-emitting Diode ("LED")
In 2013, we discontinued the development activities of our LED operations. In connection therewith, we recognized a
charge of $33 million primarily to write down certain production assets used in the development of LED technology to the
expected proceeds from their sale. Fair value for these assets was based on quotations obtained from equipment dealers, which
consider the remaining useful life and configuration of the equipment (Level 3 fair value measurement).
STMicroelectronics S.r.l. ("ST") Consortium Agreement
In 2013, we restructured a consortium agreement with ST whereby certain assets and approximately 500 employees from
our Agrate, Italy fabrication facility were transferred to ST. The consortium agreement supports the R&D activities of us and
ST and the manufacturing of semi-finished and advanced commercial semiconductor devices. In connection therewith, we
recognized a restructure charge of $26 million for 2013, primarily from transfers of equipment.
Lease to Transform
In May 2012, the Board of Directors of Transform approved a liquidation plan. In connection therewith, Transform
terminated a lease to a portion of our manufacturing facilities in Boise, Idaho and we recognized a gain of $25 million in 2013.