Crucial 2011 Annual Report Download - page 76

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. Prior to the suspension of our match in 2009, we matched in cash eligible contributions from employees up to
4% of the employee’s annual eligible earnings or $2,000 , whichever was greater. Contribution expense for the RAM Plans was $26 million and
$16 million in 2011 and 2009 , 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
Other operating (income) expense consisted of the following:
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.
In the second quarter of 2009, our imaging operations (the primary component of All Other segment) experienced a severe decline in sales,
margins and profitability due to a significant decline in demand as a result of the downturn in global economic conditions. The drop in market
demand resulted in significant declines in average selling prices and unit sales. Due to these market and economic conditions, our imaging
operations experienced a significant decline in market value. Accordingly, in the second quarter of 2009, we performed an assessment of our
imaging operations goodwill for impairment. Based on this assessment, we wrote off all of the $58 million of goodwill associated with our
imaging operations as of March 5, 2009.
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2011 2010 2009
Samsung patent cross-license agreement
$
(275
)
$
—
$
—
Gain from disposition of Japan Fab
(54
)
— —
Restructure
(21
)
(10
)
70
(Gain) loss on disposition of property, plant and equipment
(17
)
(1
)
54
(Gain) loss from changes in currency exchange rates
6
23
30
Goodwill impairment — —
58
Other
(19
)
(39
)
23
$
(380
)
$
(27
)
$
235