Accounts Payable and Accrued Expenses

6 Months Ended

Feb. 28, 2013

Accounts Payable and Accrued Liabilities Disclosure

Accounts Payable and Accrued Expenses



As of	February 28, 2013		August 30, 2012
Accounts payable	$	674	$	818
Salaries, wages and benefits	209		290
Customer advances	136		141
Related party payables	106		130
Income and other taxes	33		25
Other	340		237
	$	1,498	$	1,641

As of February 28, 2013 and August 30, 2012, related party payables included $106 million and $130 million, respectively, due to Inotera primarily for the purchase of DRAM products under the Inotera Supply Agreement.

As of February 28, 2013 and August 30, 2012, customer advances included $133 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 February 28, 2013 and August 30, 2012, other noncurrent liabilities included $62 million and $120 million, respectively, from this agreement. (See "Consolidated Variable Interest Entities – IM Flash" note.)

As of February 28, 2013 and August 30, 2012, other accounts payable and accrued expenses included $172 million and $51 million, respectively, of liabilities associated with currency hedges executed in connection with the Sponsor Agreement and Rexchip Share Purchase Agreement. As of February 28, 2013 and August 30, 2012, other accounts payable and accrued expenses included $18 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" notes.)