Consolidated Variable Interest Entities

IMFT

Since its inception in 2006 through November 28, 2013, we have owned 51% of IMFT, a venture between us and Intel to manufacture NAND Flash memory products and certain emerging memory technologies, for the exclusive use of the members. IMFT is governed by a Board of Managers and the number of managers appointed by each member to the board varies based on the members' respective ownership interests, which is based on cumulative contributions to IMFT. The IMFT joint venture agreement extends through 2024 and includes certain buy-sell rights, commencing in 2015, pursuant to which Intel may elect to sell to us, or we may elect to purchase from Intel, Intel's interest in IMFT. If Intel elects to sell to us, we would set the closing date of the transaction within two years following such election and could elect to receive financing of the purchase price from Intel for one to two years from the closing date.

IMFT manufactures NAND Flash memory products using designs and technology we develop with Intel. We generally share with Intel the cost of product design, other NAND Flash R&D costs and R&D cost of certain emerging memory technologies. Our R&D expenses were reduced by reimbursements from Intel of $29 million and $32 million for the first quarters of 2014 and 2013, respectively.

We sell a portion of our products to Intel through our IMFT joint venture at long-term negotiated prices approximating cost. Sales of NAND Flash products to Intel under this arrangement were $101 million and $99 million for the first quarters of 2014 and 2013, respectively. Receivables from Intel for IMFT sales of NAND Flash products as of November 28, 2013 and August 29, 2013, were $59 million and $68 million, respectively.

The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets, excluding intercompany balances:



As of	November 28, 2013		August 29, 2013
Assets
Cash and equivalents	$	105	$	62
Receivables	67		76
Inventories	48		49
Other current assets	4		4
Total current assets	224		191
Property, plant and equipment, net	1,364		1,382
Other noncurrent assets	47		46
Total assets	$	1,635	$	1,619

Liabilities
Accounts payable and accrued expenses	$	87	$	88
Deferred income	9		9
Equipment purchase contracts	4		78
Current portion of long-term debt	6		6
Total current liabilities	106		181
Long-term debt	11		13
Other noncurrent liabilities	114		118
Total liabilities	$	231	$	312

Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

Our ability to access IMFT's cash and other assets through cash dividends, loans or advances, including to finance our other operations, is subject to agreement by Intel. Creditors of IMFT have recourse only to its assets and do not have recourse to any other of our assets.

The following table presents IMFT's distributions to and contributions from its shareholders:



Quarter Ended	November 28, 2013		November 29, 2012
IMFT distributions to Micron	$	—	$	—
IMFT distributions to Intel	—		—
Micron contributions to IMFT	51		—
Intel contributions to IMFT	49		—

MP Mask

In 2006, we formed a joint venture with Photronics to produce photomasks for leading-edge and advanced next generation semiconductors. At inception and through November 28, 2013, we owned 50.01% and Photronics owned 49.99% of MP Mask. In connection with the formation of the joint venture, we received $72 million in 2006 in exchange for entering into a license agreement with Photronics, which is being recognized over the term of the 10-year agreement. Deferred income and other noncurrent liabilities included an aggregate of $18 million and $19 million as of November 28, 2013 and August 29, 2013, respectively, related to this agreement. We purchase a substantial majority of the reticles produced by MP Mask pursuant to a supply arrangement.

Total MP Mask assets and liabilities included in our consolidated balance sheets were as follows:



As of	November 28, 2013		August 29, 2013
Current assets	$	32	$	26
Noncurrent assets (primarily property, plant and equipment)	176		182
Current liabilities	24		25

Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

Creditors of MP Mask have recourse only to the assets of MP Mask and do not have recourse to any other of our assets.