Crucial 2011 Annual Report Download - page 82

IM Flash manufactures NAND Flash memory products using designs and technology we develop with Intel. We generally share product
design and other NAND Flash research and development ("R&D") costs equally with Intel. As a result, R&D expenses were reduced by
reimbursements from Intel of $ 95 million , $ 104 million and $ 107 million for 2011 , 2010 and 2009 , respectively.
MP Mask Technology Center, LLC ("MP Mask")
In 2006, we formed a joint venture with Photronics to produce photomasks for leading-edge and advanced next generation
semiconductors. At inception and through September 1, 2011 , we owned 50.01% and Photronics owned 49.99% of MP Mask. In connection
with the formation of the joint venture, we received $ 72 million in 2006 in exchange for entering into a license agreement with Photronics, which
is being recognized over the term of the 10-year agreement. As of September 1, 2011 , deferred income and other noncurrent liabilities included
an aggregate of $ 34 million related to this agreement. In 2011, Photronics contributed $ 8 million and we contributed $ 9 million to MP Mask.
MP mask made distributions to both us and Photronics of $ 10 million each in 2009. We purchase a substantial majority of the reticles produced
by MP Mask pursuant to a supply arrangement.
Total MP Mask assets and liabilities included in our consolidated balance sheets were as follows:
Amounts exclude intercompany balances that are eliminated in our consolidated balance sheets.
The creditors of MP Mask have recourse only to the assets of MP Mask and do not have recourse to any other of our assets.
In May 2009, we leased to Photronics a facility to produce photomasks under an operating lease. The lease provided for quarterly lease
payments aggregating $41 million through October 2014 . During 2011 and 2010, we received $8 million and $7 million , respectively, in lease
payments from Photronics. As of September 1, 2011 and September 2, 2010 , the carrying value of this facility was $44 million and $47 million ,
respectively.
TECH Semiconductor Singapore Pte. Ltd.
Since 1998, we had participated in TECH Semiconductor Singapore Pte. Ltd. ("TECH"), a semiconductor memory manufacturing joint
venture in Singapore with Canon Inc. ("Canon") and Hewlett-Packard Singapore (Private) Limited ("HP"). In December 2010 and January 2011,
we acquired HP's and Canon's interests, respectively, in two separate transactions for an aggregate of $159 million . In connection therewith,
noncontrolling interests in subsidiaries decreased by $226 million and additional capital increased by $67 million . As a result of these
transactions, our ownership interest in TECH increased during 2011 from 87% to 100% .
In 2010, we purchased shares of TECH for $80 million , which increased our ownership from 85% to 87%
and increased additional capital by
$10 million . The effects of changes in our ownership interest in TECH on total Micron shareholders' equity were as follows:
79
As of
September 1,
2011
September 2,
2010
Current assets
$
24
$
35
Noncurrent assets (primarily property, plant and equipment)
143
85
Current liabilities
31
6
For the year ended 2011 2010
Net income attributable to Micron
$
167
$
1,850
Transfers from noncontrolling interest that increased additional capital:
Acquisition of noncontrolling interests in TECH
67
10
Change from net income attributable to Micron and transfers from noncontrolling interests
$
234
$
1,860