Accounts Payable and Accrued Expenses

3 Months Ended

Nov. 29, 2012

Accounts Payable and Accrued Liabilities Disclosure

Accounts Payable and Accrued Expenses



As of	November 29, 2012		August 30, 2012
Accounts payable	$	825	$	818
Salaries, wages and benefits	245		290
Related party payables	138		130
Customer advances	132		141
Income and other taxes	31		25
Other	213		237
	$	1,584	$	1,641

As of November 29, 2012 and August 30, 2012, related party payables included $138 million and $130 million, respectively, due to Inotera primarily for the purchase of DRAM products under the Inotera Supply Agreement.

As of November 29, 2012 and August 30, 2012, customer advances included $130 million and $139 million, respectively, for amounts received from Intel to be applied to Intel's future purchases under a NAND Flash supply agreement. In addition, as of November 29, 2012 and August 30, 2012, other noncurrent liabilities included $94 million and $120 million, respectively. from this agreement. (See "Consolidated Variable Interest Entities – IM Flash" note.)

As of November 29, 2012 and August 30, 2012, other accounts payable and accrued expenses included $52 million and $51 million, respectively, of amounts payable for purchased currency options in connection with the Sponsor Agreement and Rexchip Share Purchase Agreement. Other accounts payable and accrued expenses as of November 29, 2012 and August 30, 2012 also included $10 million and $3 million, respectively, from our foreign currency hedges. As of November 29, 2012 and August 30, 2012, other accounts payable and accrued expenses included $16 million and $14 million, respectively, due to Intel for NAND Flash product design and process development and licensing fees pursuant to cost-sharing agreements. (See "Derivative Financial Instruments" and "Consolidated Variable Interest Entities – IM Flash" note.)