CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Feb. Nov. 29, Aug. 30,
28,
2008 2007 2007
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Cash and short-term investments $ 1,853 $ 2,031 $ 2,616
Receivables 894 1,067 994
Inventories (1) 1,449 1,443 1,532
Total current assets 4,304 4,652 5,234
Property, plant and equipment, net 8,634 8,576 8,279
Goodwill (2) 58 515 515
Total assets 13,785 14,498 14,818
Accounts payable and accrued expenses 1,299 1,317 1,385
Current portion of long-term debt 244 281 423
Total current liabilities 1,720 1,852 2,026
Long-term debt (7) 2,162 1,936 1,987
Noncontrolling interests in subsidiaries 2,808 2,760 2,607
Total shareholders' equity 6,738 7,501 7,752
Six Months Ended
Feb. 28, Mar. 1,
2008 2007
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Net cash provided by operating activities $ 558 $ 716
Net cash used for investing activities (925) (1,195)
Net cash provided by (used for) financing
activities (117) 614
Depreciation and amortization 1,015 800
Expenditures for property, plant and
equipment (1,306) (2,180)
Cash received from noncontrolling interests 192 647
Payments on equipment purchase contracts (274) (287)
Noncash equipment acquisitions on contracts
payable and capital leases 297 667
(1) The results for the second and first quarters of fiscal 2008 include charges of $15 million and $62 million, respectively, to write down the carrying value of work in process and finished goods inventories of memory products to their estimated fair market values.
(2) In the second quarter of fiscal 2008, in accordance with FASB Statement No. 142, "Goodwill and Other Intangible Assets," the company performed a test to determine whether or not its goodwill was impaired. Based on the results of the test, the company wrote off all of the $463 million of goodwill associated with its Memory segment as of February 28, 2008. Final determination of the fair value of goodwill is expected to be completed in the third quarter of fiscal 2008 and any adjustments to reach the final amount will be included in that period.
(3) Other operating (income) expense for the second quarter of fiscal 2008 includes gains of $47 million on disposals of semiconductor equipment. Other operating (income) expense for the first quarter of fiscal 2008 includes $38 million in receipts from the U.S. government in connection with anti-dumping tariffs, losses of $27 million from changes in currency exchange rates and gains of $10 million on disposals of semiconductor equipment. Other operating expense for the first six months of fiscal 2007 includes a gain of $30 million from the sale of certain intellectual property to Toshiba Corporation and $10 million from gains on disposals of semiconductor equipment.
(4) In the fourth quarter of fiscal 2007, the company announced it was pursuing a number of initiatives to drive greater cost efficiencies and revenue growth across its operations. During the second and first quarters of fiscal 2008 and the fourth quarter of fiscal 2007, the company recorded restructure charges of $8 million, $13 million and $19 million, respectively, consisting primarily of employee severance and related costs resulting from a reduction in the company's workforce. The first quarter charge also included a write-down of the carrying value of certain facilities to their estimated fair values. At the end of the second quarter of fiscal 2008, liabilities for unpaid portions of the restructure charge were $6 million.
