Restucture and Asset Impairments

9 Months Ended

May 30, 2013

Disclosure Text Block [Abstract]

Restructuring and Asset Impairments

Restructure and Asset Impairments

	Quarter Ended				Nine Months Ended
	May 30, 2013		May 31, 2012		May 30, 2013			May 31, 2012
Loss on restructure of ST consortium agreement	$	26	$	—	$	26		$	—
Loss on impairment of LED assets	25		—		29			—
Loss on impairment of MIT assets	—		—		62			—
Gain on termination of lease to Transform	—		—		(25		)	—
Other	4		5		2			11
	$	55	$	5	$	94		$	11

In order to optimize operations, improve efficiency and increase our focus on our core memory operations, we have entered into various restructure activities. With respect to the loss on restructure of the ST consortium agreement discussed below, our NSG operating segment recorded a charge of $11 million for the third quarter of 2013 with the remaining amount allocated approximately equally among our other reportable segments. Our other restructure activities were recorded as a charge to segments that do not meet the quantitative thresholds of a reportable segment and are reported under All Other. (See "Segments" note.) As of May 30, 2013, there were no significant remaining amounts accrued but unpaid for these restructure activities and we do not anticipate incurring any significant additional costs for these restructure activities.

STMicroelectronics S.r.l. ("ST") Consortium Agreement

For the third quarter of 2013, we restructured a consortium agreement with ST whereby certain assets and approximately 500 employees from our Agrate, Italy fabrication facility were transferred to ST. The consortium agreement supports the R&D activities of us and ST and the manufacturing of semi-finished and advanced commercial semiconductor devices. In connection therewith, we recognized a restructure charge of $26 million for the third quarter of 2013, primarily from transfers of equipment.

Light-emitting Diode ("LED")

For the third quarter of 2013, we discontinued the development activities of our LED operations. In connection therewith, we recognized a charge of $25 million primarily to write down certain production assets used in the development of LED technology to the expected proceeds from their sale. Fair value for these assets was based on quotations obtained from equipment dealers, which consider the remaining useful life and configuration of the equipment (Level 3 fair value measurement).

Micron Technology Italia, S.r.l. ("MIT")

On May 3, 2013, we sold MIT, a wholly-owned subsidiary, including its 200mm wafer fabrication facility assets in Avezzano, Italy, to LFoundry. In exchange for the shares of MIT, we received consideration from LFoundry valued at $35 million, substantially all of which was under a long-term note. Under the terms of the agreements, we assigned to LFoundry our supply agreement with Aptina for CMOS image sensors manufactured at the Avezzano facility.

The assets and liabilities of MIT, and related imager inventories, were classified as held for sale in the second quarter of 2013 and were written down to their estimated fair values. The fair values were determined primarily based on the expected proceeds from the sale to LFoundry (Level 3 fair value measurement). As a result, in the second quarter of 2013, we recorded an impairment loss of $62 million to write down the assets and liabilities to their estimated fair values. The carrying values of the MIT assets and liabilities sold, after the effects of the write down, were as follows:

Other current assets	$	75
Other noncurrent assets	37
Accounts payable and accrued expenses	(43		)
Other noncurrent liabilities	(34		)
	$	35

Lease to Transform

In May 2012, the Board of Directors of Transform approved a liquidation plan. In connection therewith, Transform terminated a lease to a portion of our manufacturing facilities in Boise, Idaho and we recognized a gain of $25 million in the first quarter of 2013.