Divestitures |
3 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2024 | |||||||||||||
| Business Combinations [Abstract] | |||||||||||||
| Divestitures |
NAND Memory Business
The NAND memory business included our NAND memory technology and manufacturing business (the NAND OpCo Business), which we deconsolidated upon closing the first phase of our sale agreement with SK hynix Inc (SK hynix) on December 29, 2021. We have a receivable within other current assets for the remaining proceeds of $2.0 billion, which remains outstanding as of March 30, 2024 and will be received upon the second closing of the transaction, expected to be in March 2025.
The wafer manufacturing and sale agreement includes incentives and penalties that are contingent on the cost of operation and output of the NAND OpCo Business. These incentives and penalties present a maximum exposure of up to $500 million annually, and $1.5 billion in the aggregate. We are currently in negotiations with SK hynix to update the operating plan of the NAND OpCo Business, which may impact the metrics associated with the incentives and penalties and our expectations of the performance of the NAND OpCo Business against those metrics.
We were reimbursed for costs that we incurred on behalf of the NAND OpCo Business for corporate function services, which include human resources, information technology, finance, supply chain, and other compliance requirements. We recorded a receivable related to these reimbursable costs due from the NAND OpCo Business, a deconsolidated entity, of $150 million within other current assets as of March 30, 2024 ($145 million recorded as of December 30, 2023).
|
||||||||||||