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Other Operating (Income) Expense, Net
12 Months Ended
Sep. 01, 2011
Notes to Financial Statements [Abstract] 
Other Operating (Income) Expense, Net
Other Operating (Income) Expense, Net

Other operating (income) expense consisted of the following:

 
 
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



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.

In response to a severe downturn in the semiconductor memory industry and global economic conditions, we initiated a restructure plan in 2009. In the first quarter of 2009, IM Flash, our joint venture and Intel, terminated an agreement to obtain NAND Flash memory supply from our Boise facility. In connection therewith, Intel paid us $208 million in 2009. In addition, we phased out all remaining 200mm DRAM wafer manufacturing operations in Boise, Idaho in the second half of 2009. As a result of these restructure plans, we reduced employment in 2009 by approximately 4,600 employees, or approximately 20%. As of September 2, 2010, all amounts related to the restructure plan initiated in 2009 had been paid.