Income Taxes Income taxes (Tables)

12 Months Ended

Sep. 01, 2011

Income (loss) before taxes, net (income) loss attributable to noncontrolling interests and equity in net income (loss) of equity method investees and income tax (provision) benefit consisted of the following:



	2011			2010			2009
Income (loss) before taxes, net (income) loss attributable to noncontrolling interests and equity in net income (loss) of equity method investees:
Foreign	$	294		$	537		$	(427	)
U.S.	257			1,383			(1,425		)
	$	551		$	1,920		$	(1,852	)
Income tax (provision) benefit:
Current:
Foreign	$	(89	)	$	(24	)	$	(12	)
State	(1		)	(4		)	—
U.S. federal	—			66			12
	(90		)	38			—
Deferred:
Foreign	(113		)	(14		)	(1		)
U.S. federal	—			(5		)	—
	(113		)	(19		)	(1		)
Income tax (provision) benefit	$	(203	)	$	19		$	(1	)

Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit

Income tax (provision) benefit computed using the U.S. federal statutory rate reconciled to income tax (provision) benefit was as follows:



	2011			2010			2009
U.S. federal income tax (provision) benefit at statutory rate	$	(193	)	$	(672	)	$	648
Foreign operations	(119		)	135			(135		)
Debt repurchase premium	(20		)	—			—
State taxes, net of federal benefit	(5		)	(22		)	39
Change in valuation allowance	103			424			(572		)
Tax credits	17			3			18
Gain on acquisition of Numonyx	—			153			—
Other	14			(2		)	1
Income tax (provision) benefit	$	(203	)	$	19		$	(1	)

Deferred tax assets and liabilities

Deferred tax assets and liabilities consist of the following as of the end of the periods shown below:



	2011			2010
Deferred tax assets:
Net operating loss and credit carryforwards	$	1,581		$	1,336
Inventories	159			354
Accrued salaries, wages and benefits	99			124
Deferred income	55			92
Basis differences in investments in joint ventures	21			71
Property, plant and equipment	—			36
Other	50			55
Gross deferred tax assets	1,965			2,068
Less valuation allowance	(1,446		)	(1,627		)
Deferred tax assets, net of valuation allowance	519			441

Deferred tax liabilities:
Debt discount	(138		)	(92		)
Unremitted earnings on certain subsidiaries	(117		)	(97		)
Property, plant and equipment	(107		)	—
Product and process technology	(50		)	(45		)
Intangible assets	(24		)	(33		)
Other	(13		)	(6		)
Deferred tax liabilities	(449		)	(273		)

Net deferred tax assets	$	70		$	168

Reported as:
Current deferred tax assets (included in other current assets)	$	26		$	39
Noncurrent deferred tax assets (included in other noncurrent assets)	60			145
Noncurrent deferred tax liabilities (included in other noncurrent liabilities)	(16		)	(16		)
Net deferred tax assets	$	70		$	168

Reconciliation of beginning and ending amount of unrecognized tax benefits

Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits:



	2011			2010			2009
Beginning unrecognized tax benefits	$	88		$	1		$	1
Increases related to tax positions taken during current year	28			11			—
Foreign currency translation increases (decreases) to tax positions	6			—			—
Increases related to tax positions from prior years	4			14			—
Decreases related to tax positions from prior years	(3		)	—			—
Settlements with tax authorities	(2		)	(1		)	—
Unrecognized tax benefits acquired in current year	—			63			—
Expiration of foreign statutes of limitations	—			—			(1		)
Other	—			—			1
Ending unrecognized tax benefits	$	121		$	88		$	1