Crucial 2011 Annual Report Download - page 81

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the similarity of their function, operations and the way our management reviews the results of their operations. The partners' ownership
percentages are based on contributions to the partnership. As of September 1, 2011, we owned 51% and Intel owned 49% of IMFT and we owned
86% and Intel owned 14% of IMFS. In September 2011, subsequent to the end of our 2011, we contributed $103 million and Intel contributed
$131 million to IMFS, decreasing our ownership interest in IMFS to 82% .
Although our ownership interest in IMFS changes at the time we make contributions, our share of the operating costs and supply from IMFS
adjusts in proportion to changes in our ownership share either 12 months or 8 months (depending on the status of IMFS' production ramp) from
the date of the applicable ownership change. Accordingly, we anticipate that our share of IMFS costs and supply will increase from 57% as of
September 1, 2011 to our current ownership interest in IMFS over 2012. Changes in IMFS ownership interests do not affect our NAND Flash
R&D cost-sharing agreement with Intel.
The following table presents IM Flash's distributions to and contributions from its shareholders:
IM Flash sells products to the joint venture partners generally in proportion to their ownership interests at long-term negotiated prices
approximating cost. IM Flash sales to Intel were $ 884 million , $ 764 million and $ 886 million for 2011, 2010 and 2009, respectively. As of
September 1, 2011 and September 2, 2010 , IM Flash had receivables of $ 165 million and $ 128 million , respectively, from sales of product to
Intel.
Total IM Flash assets and liabilities included in our consolidated balance sheets were as follows:
Amounts exclude intercompany balances that are eliminated in our consolidated balance sheets.
Our ability to access IM Flash's cash and marketable investment securities to finance our other operations is subject to agreement by the joint
venture partners. The creditors of each IM Flash entity have recourse only to the assets of each of the respective IM Flash entities and do not have
recourse to any other of our assets.
78
For the year ended
2011
2010
2009
IM Flash distributions to Micron
$
234
$
278
$
723
IM Flash distributions to Intel
225
267
695
Micron contributions to IM Flash
1,580
128
25
Intel contributions to IM Flash
—
38
24
As of
September 1,
2011
September 2,
2010
Assets
Cash and equivalents
$
327
$
246
Receivables
252
154
Inventories
227
160
Other current assets
11
8
Total current assets
817
568
Property, plant and equipment, net
4,121
2,894
Other noncurrent assets
66
57
Total assets
$
5,004
$
3,519
Liabilities
Accounts payable and accrued expenses
$
458
$
140
Deferred income
125
127
Equipment purchase contracts
37
8
Current portion of long-term debt
8
7
Total current liabilities
628
282
Long-term debt
58
62
Other noncurrent liabilities
4
4
Total liabilities
$
690
$
348