Crucial 2014 Annual Report Download - page 61

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59
Depreciation expense was $1,993 million, $1,721 million and $2,053 million for 2014, 2013 and 2012, respectively. Other
noncurrent assets included land held for development of $57 million as of August 28, 2014 and $54 million as of August 29,
2013.
As of August 28, 2014, production equipment and buildings with carrying values of $476 million and land with a carrying
value of $43 million were pledged as collateral under various notes payable. (See "Debt – Other Notes Payable" note.)
Equity Method Investments
As of 2014 2013
Investment
Balance Ownership
Percentage Investment
Balance Ownership
Percentage
Inotera(1) $ 914 33% $ 344 35%
Tera Probe 48 40% 40 40%
Other 9 Various 12 Various
$ 971 $ 396
(1) Entity is a variable interest entity.
As of August 28, 2014, substantially all of our maximum exposure to loss from our VIEs that were not consolidated was
the $914 million carrying value of our investment in Inotera. We may also incur losses in connection with our rights and
obligations to purchase substantially all of Inotera's wafer production capacity under a supply agreement with Inotera.
We recognize our share of earnings or losses from our equity method investees generally on a two-month lag. Equity in
net income (loss) of equity method investees, net of tax, included the following:
For the year ended 2014 2013 2012
Inotera $ 465 $ (79) $ (189)
Tera Probe 11 — —
Other (2)(4)(105)
$ 474 $ (83) $ (294)
The summarized financial information in the tables below reflects aggregate amounts for all of our equity method
investees. Financial information is presented for equity method investments as of the respective dates and for the periods
through which we recorded our proportionate share of each investee's results of operations. Summarized results of operations
are presented only for the periods subsequent to the acquisition or through the disposition of our ownership interests.
As of 2014 2013
Current assets $ 2,233 $ 1,018
Noncurrent assets 2,502 2,634
Current liabilities 1,417 1,912
Noncurrent liabilities 254 435
For the years ended 2014 2013 2012
Net sales $ 3,382 $ 1,788 $ 1,798
Gross margin 1,576 1 (451)
Operating income (loss) 1,371 (203)(751)
Net income (loss) 1,339 (188)(793)