Crucial 2015 Annual Report Download - page 75

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73
IMFT: Since inception in 2006, we have owned 51% of IMFT, a joint venture between us and Intel to manufacture
NAND Flash and 3D XPoint memory products for the exclusive use of the members. IMFT is governed by a Board of
Managers, for which the number of managers appointed by each member varies based on the members' respective ownership
interests. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights. Commencing in
January 2015, Intel can put to us, and commencing in January 2018, we can call from Intel, Intel's interest in IMFT, in either
case, for an amount equal to the noncontrolling interest balance attributable to Intel at that time. If Intel elects to sell to us, we
can elect to set the closing date of the transaction to be any time within two years following such election by Intel and can elect
to receive financing of the purchase price from Intel for one to two years from the closing date.
IMFT manufactures memory products using designs and technology we develop with Intel. We generally share with Intel
the costs of product design and process development activities for NAND Flash memory and 3D XPoint memory. Our R&D
expenses were reduced by reimbursements from Intel of $224 million, $137 million, and $127 million for 2015, 2014, and
2013, respectively.
We sell a portion of our products to Intel through our IMFT joint venture at long-term negotiated prices approximating
cost. Sales of products to Intel under this arrangement were $420 million, $423 million, and $387 million for 2015, 2014, and
2013, respectively. Receivables from Intel as of September 3, 2015 and August 28, 2014, were $67 million and $66 million,
respectively, for these sales.
The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:
As of 2015 2014
Assets
Cash and equivalents $ 134 $ 84
Receivables 79 73
Inventories 65 48
Other current assets 7 5
Total current assets 285 210
Property, plant and equipment, net 1,768 1,545
Other noncurrent assets 49 47
Total assets $ 2,102 $ 1,802
Liabilities
Accounts payable and accrued expenses $ 182 $ 106
Deferred income 9 8
Current debt 22 21
Total current liabilities 213 135
Long-term debt 49 71
Other noncurrent liabilities 100 110
Total liabilities $ 362 $ 316
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.
Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets.
The following table presents IMFT's distributions to and contributions from its shareholders:
For the year ended 2015 2014 2013
IMFT distributions to Micron $ 6 $ 10 $ 38
IMFT distributions to Intel 6 10 37
Micron contributions to IMFT 148 106 12
Intel contributions to IMFT 142 102 11